/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/070622.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, June 22, 2007, Vol. 11, No. 146 Headlines 360 GLOBAL: Court Okays $5 Million Laurus Master DIP Financing 360 GLOBAL: U.S. Trustee Appoints Five-Member Creditors' Committee 7459 SOUTH YATES: Case Summary & Largest Unsecured Creditor ADVANCED COMMS: March 31 Balance Sheet-Upside Down by $1.5 Million AGERE SYSTEMS: Moody's Withdraws B1 Corporate Family Rating AIRTRAN HOLDINGS: Midwest Board Nominees Get 65% Approval BEAR STEARNS: Fitch Affirms Low-B Ratings on Six Classes BLACKBOARD INC: Completes Sale of $165MM Convertible Senior Notes CALPINE CORP: Files Chapter 11 Plan of Reorganization CATALYST PAPER: S&P Rates Proposed $200 Million Notes at B+ CDRSVM ACQUISITION: Moody's Rates Proposed $1.15 Bil. Notes at B3 CENVEO CORP: S&P Retains Recovery Ratings Despite Loan Add-On CHASE MORTGAGE: Fitch Holds Low-B ratings on Three Classes CITIGROUP COMMERCIAL: Moody's Rates Class VSM-2 Certs. at Ba1 CMS ENERGY: Fitch Assigns Rates $400 Million Senior Notes at BB- COMMUNICATION INTELLIGENCE: Establishes $1 Million Credit Facility CRE PROJECT: S&P Puts Preliminary B Rating on $175 Mil. Facility DAIMLERCHRYSLER: Chrysler Group & GETRAG Makes $530MM Investment DAIMLERCHRYSLER: Chrysler Group Eyes Sales and Dealer Expansion DOLLAR GENERAL: Gets 99% Consents & Tenders for Sr. Notes Offering EDWARD WALLS: Case Summary & Eight Largest Unsecured Creditors ELGIN NATIONAL: Acquisition Cues S&P to Withdraw Rating ENERGAS RESOURCES: Posts $211,898 Net Loss in Qtr. Ended April 30 ESTERLINE TECH: Commences Consent Solicitation for 7.75% Notes EYI INDUSTRIES: March 31 Balance Sheet Upside-Down by $4.6 Million FEDERAL-MOGUL: Court Extends Confirmation Hearing to July 9 and 10 FORUM HEALTH: Moody's Places B1 Bond Rating under Watch G-STAR 2003-3: Fitch Affirms BB Rating on $24MM Preferred Shares GLEN DEVELOPMENT: Files Chapter 11 Plan of Reorganization GOLDENTREE LOAN: S&P Withdraws Low-B Ratings on Four Note Classes GREENPARK GROUP: Court Approves Gary Miura as Tax Accountant GREENPARK GROUP: Wants Exclusive Plan Filing Period Extended HALLWOOD GROUP: Board Chairman Proposes Sale of Assets ICONIX BRAND: Completes $287.5MM Convertible Senior Notes Offering INTELSAT LTD: Fitch Puts Issuer Default Rating on Watch Negative INTELSAT LTD: Moody's Puts Ratings Under Review and May Downgrade ISLE BLACK: Moody's Affirms B1 Corporate Family Rating ISLE OF CAPRI: Increased Debt Cues Moody's to Lower Group Ratings KARA HOMES: Can Sell New Jersey Project for $150,000 in Cash KARA HOMES: Plan Confirmation Hearing Deferred to July 6 LAZY DAYS: S&P Lowers Corporate Credit Rating to B from B+ LE-NATURE'S INC: Panels File Joint 2nd Amended Liquidation Plan LEE'S TRUCKING: IRS Plan Objection Hearing Scheduled on June 27 LEWISTON HALL: Case Summary & Two Largest Unsecured Creditors LIONEL LLC: Seeks October 16 Exclusivity Period Extension MAYCO PLASTICS: Confirmation of Liquidation Plan Denied MEG ENERGY: Moody's Confirms Ba3 Rating on $750MM Sr. Term Loan MGM MIRAGE: Joint Venture Project Cues Fitch to Remove Neg. Watch MITEL NETWORKS: High Debt Leverage Prompts S&P's B Credit Rating ML-CFC COMMERCIAL: Moody's Assigns Low-B Rating on 6 Cert. Classes MOST HOME: Posts $848,628 Net Loss in Quarter Ended April 30 NABI BIOPHARMACEUTICALS: Mulling Sale of Company NEW YORK MORTGAGE: Fitch Holds B Rating on Class B-5 Certificates NORTH AMERICAN: Court Extends Plan Solicitation Period to Sept. 30 NORWOOD PROMOTIONAL: Moody's Puts Corporate Family Rating at B2 ONONDAGA COUNTY: S&P Cuts Rating on Series 1993A & 1993B Bonds ORECK CORP: Weak Liquidity Position Cues S&P to Junk Credit Rating OVERSEAS SHIPHOLDING: Two Underwriters to Exercise Stock Option PAUL THORNTON: Case Summary & Three Largest Unsecured Creditors PORT BARRE: S&P Holds B+ Rating on $185 Million Credit Facilities REMY INT'L: Planned Chapter 11 Filing Cues S&P's Various Actions REYNOLDS AMERICAN: Fitch Upgrades Ratings with Stable Outlook REYNOLDS AMERICAN: Moody's Rates $1.55 Billion Senior Notes at Ba1 RICHARD COOPER: Case Summary & 15 Largest Unsecured Creditors RONCO CORP: Wants Court Approval on Laurus Master DIP Financing ROSELINE BAPTISTE: Case Summary & Five Largest Unsecured Creditors SELBYVILLE BAY: Access to First Mariner's Cash Collateral Okayed SENSATA TECH: $276 Million Airpax Deal Cues S&P's Negative Outlook SHAW GROUP: Plans New Fabrication Facility in Mexico SPECTRUM BRANDS: Class Action Lawsuit Dismissed SPGS SPC: Fitch Puts Low-B Ratings on Six Certificate Classes STARTECH ENVIRONMENTAL: Posts $1MM Net Loss in Qtr. Ended April 30 SWEETMAN RENTAL: Can Use National Music's Cash Collateral SWEETMAN RENTAL: Court Extends Plan-Filing Period to July 31 T REIT INC: Intends to Wind Up Operations and Liquidate Assets TOWER AUTO: Cancels Auction Owe to Non Receipt of Competing Bids TOYS 'R' US: Fitch Affirms B- Issuer Default Rating TRILOGY INT'L: Term Loan Increase Cues Moody's to Hold B2 Ratings TWEETER HOME: Organizational Meeting Scheduled Today TWEETER HOME: Gets Interim Court OK to Use GECC Cash Collateral TWEETER HOME: $60 Million GECC DIP Financing Gets Interim Okay UNITED AIRLINES: Increase in Destinations Cue Hiring of Pilots US FOODSERVICE: Moody's Puts Corporate Family Rating at B3 US FOODSERVICE: S&P Junks Rating on $1 Billion Senior Toggle Notes VISTEON CORP: Construction Starts at New Missouri Assembly Plant VISTEON CORP: To Close Bedford Plant; 685 Jobs Slashed WATER PIK: S&P Affirms Ratings on $112 Million Secured Financing * KPMG LLP Considered Bankruptcy Filing in 2005, Lawyer Says * Palisades Capital Names John L. Spencer as Managing Director * BOOK REVIEW: American Commercial Banking: A History ********* 360 GLOBAL: Court Okays $5 Million Laurus Master DIP Financing -------------------------------------------------------------- The United States Bankruptcy Court of Nevada gave 360 Global Wine Company and its debtor-affiliate, 360 Viansa LLC, authority to borrow and obtain $5 million postpetition financing with Laurus Master Fund LLC. The Debtors tells the Court that they need financing to: i. fund the Carneros Warehousing settlement; ii. pay Grape Growers' liens; iii. fund the reorganization effort; and iv. make certain capital improvements necessary to their operations. As security for repayment of the Debtors' obligations, the Debtors granted Laurus a security interest in and lien on all of the Debtors' property and assets. Headquartered in Los Angeles, California, 360 Global Wine Company and 360 Viansi LLC -- http://www.360wines.com/-- are small, diversified marketers of wine and alcoholic beverages. The company filed for Chapter 11 protection on March 7, 2007 (Bankr. Nev. Case No. 07-50205). Brett A. Axelrod, Esq., at Beckley Singleton, Chartered, represents the Debtors in their restructuring efforts. David A. Honig, Esq., at Winston & Strawn LLP, represent the Official Committee of Unsecured Creditors. When the Debtors sought protection from their creditors, they listed estimated assets at $43,000,000 and debts at $39,000,000. 360 GLOBAL: U.S. Trustee Appoints Five-Member Creditors' Committee ------------------------------------------------------------------ Sara L. Kistler, the acting U.S. Trustee for Region 17, appointed five members to serve on an Official Committee of Unsecured Creditors in 360 Global Wine Company's Chapter 11 case: 1. Steven Sass United Parcel Service c/o RMS 307 International Circle, Suite 270 Hunt Valley, MO 21030 Telephone: (410) 773-4040 Fax: (410) 773-4057 2. S. Michael Rudolph Longview Fund LP c/o Redwood Grove Capital 600 Montgomery Street, 44th Floor San Francisco, California 94111 Telephone: (415) 981-5300 Fax: (415) 981-5301 3. Jamie Settinneri, Jr. Settinneri Family Trust P.O. Box 180100 Coronado, California 92175 Telephone: (619) 686-8900 Fax: (619) 686-8925 4. Brian Bronson, Vice president - operations Packaging Plus Inc. 17690 Shideler Parkway Lathrop, California 95330 Telephone: (209) 858-9200 Fax: (209) 858-9311 5. Stephen W. Grapp 1803 North Stafford Street Arlington, Virginia 22207 Telephone: (703) 801-1087 Fax: (703) 528-1058 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtor's expense. They may investigate the Debtor's business and financial affairs. Importantly, official committees serve as fiduciaries to the general population of creditors they represent. Those committees will also attempt to negotiate the terms of a consensual Chapter 11 plan -- almost always subject to the terms of strict confidentiality agreements with the Debtors and other core parties-in-interest. If negotiations break down, the Committee may ask the Bankruptcy Court to replace management with an independent trustee. If the Committee concludes reorganization of the Debtor is impossible, the Committee will urge the Bankruptcy Court to convert the Chapter 11 cases to a liquidation proceeding. About 360 Global 360 Global Wine Company (PNK: TSIX) and its debtor-affiliate, 360 Viansa LLC, -- http://www.360wines.com/-- are small, diversified marketers of wine and alcoholic beverages located in in Los Angeles, California. The Debtors filed for Chapter 11 protection on March 7, 2007 (Bankr. D. NV Case Nos. 07-50205 and 07-50206). Brett A. Axelrod, Esq., at Beckley Singleton, Chartered, represents the Debtors in their restructuring efforts. When the Debtors filed for bankruptcy, 360 Global listed $43,000,000 estimated assets and $39,000,000 estimated liabilities while 360 Viansa listed $1 million to $100 million estimated assets and liabilities. 7459 SOUTH YATES: Case Summary & Largest Unsecured Creditor ----------------------------------------------------------- Debtor: 7459 South Yates, L.L.C. 405 North Wabash, Suite 3504 Chicago, IL 60611 Bankruptcy Case No.: 07-10986 Chapter 11 Petition Date: June 20, 2007 Court: Northern District of Illinois (Chicago) Judge: Pamela S. Hollis Debtor's Counsel: Paul M. Bach, Esq. 1955 Shermer Road, Suite 150 Northbrook, IL 60062 Tel: (847) 564-0808 Fax: (847) 564-0985 Total Assets: $1,300,000 Total Debts: $904,526 Debtor's Largest Unsecured Creditor: Entity Nature of Claim Claim Amount ------ --------------- ------------ Cook County Collector 2006 real estate $7,000 118 North Clark Street taxes Chicago, IL 60602 ADVANCED COMMS: March 31 Balance Sheet-Upside Down by $1.5 Million ------------------------------------------------------------------ Advanced Communications Technologies Inc. reported a net loss of $344,019 on net sales of $2,617,443 for the third quarter ended March 31, 2007, compared with a net loss of $284,621 on net sales of $2,552,055 for the same period ended March 31, 2006. Cyber-Test, the company's core operating business unit, experienced a $91,000, or 3.6%, increase in net sales for the three months ended March 31, 2007, compared to the three months ended March 31, 2006. Encompass, which ceased operations in California effective June 30, 2006, recorded no sales in the three months ended March 31, 2007, compared to $26,000 in the same period in 2006. Gross profit decreased to $815,000 for the three months ended March 31, 2007, as compared to $896,000 for the three months ended March 31, 2006, with gross margins declining to 31.1% from 35.1% for the comparable periods. The overall decrease in gross profit and gross margin is primarily attributable to a change in product mix as a greater percentage of repair work in the current period was performed on equipment that yields lower margins and also, to a lesser extent, the inclusion of high margin sales by Encompass in the earlier period. Total operating expenses for the three months ended March 31, 2007, and 2006 were $1,090,000 and $1,159,000, respectively, representing a decrease of $69,000, or 6.0%. The overall decrease was primarily attributable to a decrease in professional and consulting expenses of $175,000, offset by an increase of $109,000 in selling, general and administrative expenses for the three months ended March 31, 200, as compared to the three months ended March 31, 2006. Other expense amounted to $50,000 for the three months ended March 31, 2007, compared to $0 for the three months ended March 31, 2006, and represents a reserve for possible additional payments in connection with the Pacific Magtron International Corp. bankruptcy proceeding and litigation settlement. Interest expense for the three months ended March 31, 2007 was $19,000 compared to $21,000 for the three months ended March 31, 2006. At March 31, 2007, the company's consolidated balance sheet showed $5,692,475 in total assets and $7,258,407 in total liabilities, resulting in a $1,565,932 total stockholders' deficit. The company's consolidated balance sheet at March 31, 2007, also showed strained liquidity with $1,662,189 in total current assets available to pay $3,872,207 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?2116 Going Concern Doubt Berenson LLP in New York raised substantial doubt about Advanced Communications Technologies, Inc.'s ability to continue as a going concern after auditing the company's financial statements for the fiscal year ended June 30, 2006. The auditing firm pointed to the company's net loss and working capital deficiency. About Advanced Communications Based in New York, Advanced Communications Technologies Inc. (OTC BB: ADVC.OB) -- http://www.advancedcomtech.net/-- is a public holding company specializing in the consumer electronic aftermarket service and supply chain, known as reverse logistics. Its wholly-owned subsidiary and principal operating unit, Encompass Group Affiliates Inc. acquires and operates businesses that provide office and consumer electronics repair services. Encompass owns Cyber-Test Inc., an office and consumer electronic equipment repair company based in Florida and the company's principal operating business. Encompass ceased the operations of PMIC in California effective June 30, 2006. The company currently operates in one business segment, the repair and refurbishment component of the reverse logistics industry. AGERE SYSTEMS: Moody's Withdraws B1 Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service has withdrawn the B1 corporate family rating of Agere Systems Inc. as well as the B1 rating of its $362 million subordinated convertible debt, for business purposes. Ratings Withdrawn: -- Corporate Family Rating at B1 PDR: Ba3 -- $362 million subordinated convertible debt at B1, LGD4, 68% Agere Systems designs semiconductors and software solutions for storage, mobility, and networking markets. AIRTRAN HOLDINGS: Midwest Board Nominees Get 65% Approval --------------------------------------------------------- AirTran Holdings, Inc., the parent of AirTran Airways, has received the preliminary vote report from IVS Associates, the independent inspectors for the Midwest Air Group, Inc.'s Annual Meeting held on June 14, 2007. Based on IVS's preliminary report, which is subject to review by both AirTran and Midwest, the Midwest shareholders elected AirTran's three nominees to replace three of Midwest's incumbent directors on the Midwest Board. According to IVS, approximately 65% of shares voted were in favor of AirTran's slate of directors. "On this basis, and looking forward to the final certification of results on June 26, 2007, we are more than pleased to accept Midwest's invitation to have our team meet with the newly constituted board on July 16, 2007," Joe Leonard, chairman and CEO of AirTran Airways, said. "We plan to review, in detail, the benefits of a merger of our two companies, and then move expeditiously to effect a definitive merger agreement." AirTran Airways, Inc. (NYSE: AAI) -- http://www.airtran.com/-- operates over 600 daily flights to 50 destinations. The airline's hub is at Hartsfield-Jackson Atlanta International Airport, where it is the second largest carrier. AirTran Airways recently added the fuel-efficient Boeing 737-700 aircraft to create America's youngest all-Boeing fleet. The airline is also the first carrier to install XM Satellite Radio on a commercial aircraft and the only airline with Business Class and XM Satellite Radio on every flight. * * * As reported in the Troubled Company Reporter on Dec. 15, 2006, Standard & Poor's Ratings Services affirmed its ratings on AirTran Holdings Inc. and its primary operating subsidiary, AirTran Airways Inc., including the 'B-' corporate credit rating on AirTran Holdings. As reported in the Troubled Company Reporter on Nov. 23, 2006, Moody's Investors Service confirmed its B3 Corporate Family Rating for AirTran Holdings Inc. and its Caa1 rating on the company's 7% Guaranteed Convertible Notes Due July 1, 2023, in connection with its implementation of its Probability-of-Default and Loss- Given-Default rating methodology for the Transportation sector. Moody's also assigned an LGD6 rating to those loans, suggesting noteholders will experience a 91% loss in the event of a default. BEAR STEARNS: Fitch Affirms Low-B Ratings on Six Classes -------------------------------------------------------- Fitch Ratings affirms Bear Stearns Commercial Mortgage Securities Trust 2005-TOP18 as: -- $48.3 million class A-1 at 'AAA'; -- $121.9 million class A-2 at 'AAA'; -- $41.6 million class A-3 at 'AAA'; -- $105.7 million class A-AB at 'AAA'; -- $517.2 million class A-4 at 'AAA'; -- $75 million class A-4FL at 'AAA'; -- Interest-only class X at 'AAA'; -- $74.3 million class A-J at 'AAA'; -- $29.3 million class B at 'AA'; -- $8.4 million class C at 'AA-'; -- $12.6 million class D at 'A'; -- $11.2 million class E at 'A-'; -- $9.8 million class F at 'BBB+'; -- $9.8 million class G at 'BBB'; -- $8.4 million class H at 'BBB-'; -- $4.2 million class J at 'BB+'; -- $4.2 million class K at 'BB'; -- $4.2 million class L at 'BB-'; -- $1.4 million class M at 'B+'; -- $1.4 million class N at 'B'; -- $2.8 million class O at 'B-'. Fitch does not rate the $8.4 million class P. The rating affirmations reflect stable transaction performance and minimal paydown since issuance. As of the June 2007 distribution date, the pool's aggregate certificate balance has decreased 1.9% to $1.1 billion from $1.12 billion at issuance. There have been no delinquent or specially serviced loans since issuance. At issuance, Fitch credit assessed the following nine loans (23.9%): 111-115 Fifth Avenue, Boulevard at the Capital Center, Chateau on the Lake, Capitol Arms Apartments, Watertown Mall, 340 East 93rd Street Coop, Dal-Rich Village, Holiday Inn Express Midtown and 3200 Liberty Avenue. These loans maintain their investment grade credit assessments based on stable performance. Fitch will review the year-end 2006 financials for these loans once they become available. 111-115 Fifth Avenue is secured by a 542,602 square-foot office and retail complex located in the Flatiron district of Manhattan, NY. As of year-end 2006, occupancy increased to 100% from 93% at issuance. Boulevard at the Capital Center is secured by a 484,664-sf retail property in Landover, Maryland. Occupancy remained at 100% as of 3Q 2006. Chateau on the Lake is secured by a 301-unit full-service hotel in Branson, Misuorri. As of 3Q 2006, occupancy increased to 60% from 58% at issuance. Capitol Arms Apartments is secured by a 278-unit multifamily property in the midtown-west section of Manhattan, New York. As of 3Q 2006, occupancy increased to 100% from 99% at issuance. Watertown Mall is secured by a 231,201-sf retail property in Watertown, Massachusetts. Occupancy was 90% as of 3Q 2006, compared to 97% at issuance. 340 East 93rd Street Coop is secured by a 358-unit multifamily property in Manhattan, New York. Occupancy remained strong at 96% as of YE2005, compared to 95% at issuance. Dal-Rich Village is secured by a 162,913-sf community shopping center anchored by Whole Foods in Richardson, Texas. Occupancy was 67%, compared to 70% at issuance. Holiday Inn Express Midtown is secured by a 168-unit limited- service hotel in Philadelphia, Pennsylvania. As of 3Q 2006, occupancy increased to 84% from 77% at issuance. 3200 Liberty Avenue is secured by a 212,621-sf industrial property in North Bergen, New Jersey. Occupancy remained at 100% as of 3Q 2006. BLACKBOARD INC: Completes Sale of $165MM Convertible Senior Notes ----------------------------------------------------------------- Blackboard Inc. has closed its sale of $165 million aggregate principal amount of 3.25% Convertible Senior Notes due 2027, pursuant to an automatically effective registration statement filed with the Securities and Exchange Commission on June 13, 2007. The aggregate principal amount of notes sold reflects the full exercise by the underwriters of their option to purchase $15 million aggregate principal amount of notes to cover over- allotments. The notes are convertible into cash or a combination of cash and Blackboard common stock at an initial base conversion rate of 15.4202 shares of Blackboard common stock per $1,000 principal amount of notes. The base conversion rate represents an initial base conversion price of approximately $64.85, which is a 62% premium to the closing price of Blackboard's common stock on June 14, 2007. In addition, if at the time of conversion the applicable price of Blackboard's common stock exceeds the base conversion price, the conversion rate will be increased by up to an additional 9.5605 shares of Blackboard common stock per $1,000 principal amount of notes, as determined pursuant to a specified formula. In general, upon conversion of a note, the holder of such note will receive cash equal to the principal amount of the note and Blackboard common stock for the note's conversion value in excess of such principal amount. The notes bear interest at a rate of 3.25% per annum from the date of issuance, payable semi-annually on January 1 and July 1, commencing on Jan. 1, 2008. The notes will mature on July 1, 2027, and may not be redeemed by Blackboard prior to July 1, 2011, after which they may be redeemed at 100% of the principal amount plus accrued interest. Holders of the notes may require Blackboard to repurchase some or all of the notes on July 1, 2011, July 1, 2017, and July 1, 2022, or in the event of certain fundamental change transactions, at 100% of the principal amount plus accrued interest. The sole book-running manager of the offering is Credit Suisse Securities (USA) LLC and Citi is serving as the sole co-manager. A copy of the prospectus and prospectus supplement meeting the requirements of Section 10 of the Securities Act of 1933 may be obtained from: Credit Suisse Securities Prospectus Department One Madison Avenue, Level 1B New York, NY 10010 About Blackboard Inc. Headquartered in Washington, D.C., Blackboard Inc. (Nasdaq: BBBB) provides enterprise software applications and related services to the education industry. Founded in 1997, Blackboard enables educational innovations everywhere by connecting people and technology. With two product suites, the Blackboard Academic Suite(TM) and the Blackboard Commerce Suite(TM), Blackboard is used by millions of people at academic institutions around the globe, including colleges, universities, K-12 schools and other education providers, as well as textbook publishers and student- focused merchants that serve education providers and their students. Blackboard has offices in North America, Europe and Asia. * * * Moody's Investors Services assigned 'Ba3' on Blackboard Inc.'s long term corporate family rating and bank loan debt rating on Nov. 11, 2007. The outlook is stable. Standard and Poor's rated the company's long term foreign and local issuer credit rating at 'B+' on Nov. 15, 2006. CALPINE CORP: Files Chapter 11 Plan of Reorganization ----------------------------------------------------- Calpine Corporation and certain of its subsidiaries have filed a Joint Plan of Reorganization and Disclosure Statement with the U.S. Bankruptcy Court for the Southern District of New York. The Plan of Reorganization seeks to provide an equitable return to all stakeholders while providing for the long-term viability of the company. With this filing, Calpine looks to have the Plan confirmed during the 4th Quarter 2007. "The filing of our Plan of Reorganization is a significant milestone on our road to recovery and takes us one giant step closer to successfully reorganizing Calpine for the benefit of our stakeholders, employees, and customers," said Robert P. May, Calpine's Chief Executive Officer. "While we still have much to do in order to complete this process, this proposed Plan of Reorganization provides a clear path for Calpine to emerge as a stronger, more financially stable company with an improved competitive position in the energy industry." Mr. May concluded, "I want to thank my 2,300 co-workers and the Company's retained professionals for their unwavering support and hard work during this process. Their perseverance and commitment to Calpine has played a significant role in getting us to this point." "This has been the largest and most complex reorganization conducted under the new bankruptcy laws," said Gregory L. Doody, Executive Vice President, General Counsel and Secretary. "We are very proud of what we have accomplished thus far and the value we have created, working together with our committees and the Court, for the benefit of all stakeholders. We look forward to continuing discussions with our key constituencies to reach a comprehensive agreement and will seek to exit court protection as expeditiously as possible." The Disclosure Statement filed today contains a historical profile of the company, a description of proposed distributions to creditors, and an analysis of the Plan's feasibility, as well as many of the technical matters required for the exit process, such as descriptions of who will be eligible to vote on the Plan and the voting process itself. The Plan is a "waterfall" plan that allocates value to the Company's creditors and shareholders in accordance with the priorities of the Bankruptcy Code. Pursuant to the Plan, allowed administrative claims and priority tax claims will be paid in full in cash or cash equivalents, as will the allowed first and second lien debt claims. Other allowed secured claims will be reinstated, paid in full in cash or cash equivalents, or have the collateral securing such claims returned to the secured creditor. Allowed unsecured claims will receive a pro rata distribution of reorganized Calpine common stock until paid in full. Allowed unsecured convenience class claims -- all claims $50,000 or less -- will be paid in full in cash or cash equivalents. Finally, any remaining value after such allowed creditors' claims have been paid in full will be distributed pro rata to existing holders of allowed interests (primarily holders of existing Calpine common stock) and holders of subordinated equity securities claims in the form of reorganized Calpine common stock. Assuming Calpine exits from bankruptcy on Dec. 31, 2007 and subject to the assumptions set forth in the Disclosure Statement, Calpine estimates that reorganized Calpine will have a midpoint reorganization value of $21.7 billion (reorganization value is equal to total enterprise value plus estimated distributable cash). Calpine estimates that its total enterprise value will be between $19.2 billion to $21.3 billion, with a midpoint of $20.3 billion, and estimates that distributable cash will be approximately $1.4 billion at emergence. Calpine noted that allowed claims will range from $20.1 billion to $22.3 billion after completion of Calpine's claims objection, reconciliation, and resolution process. Under this range of potential allowed claims, general unsecured creditors will receive from 91% to 100% of their allowed claims. In order to clarify further its recovery estimates, Calpine recently initiated litigation challenging so-called "makewhole," premium, or "no- call" claims asserted by Calpine's second lien debt holders and unsecured creditors, and it continues to move aggressively to resolve other disputed claims asserted against it in the bankruptcy case. Under the Plan, Calpine estimates, when adjusted for litigation risk and the assumptions and limitations set forth in the Disclosure Statement, that allowed claims of unsecured creditors will be paid in full and that existing holders of allowed interests -- primarily holders of existing Calpine common stock -- and holders of allowed subordinated equity securities claims will receive value of approximately $1.80 per existing share of Calpine common stock. Because disputed claims and the total enterprise value of Calpine upon its emergence have not yet been finally adjudicated, no assurances can be given that actual recoveries to creditors and interest holders will not be materially higher or lower. Calpine also announced it has received a commitment for an amended and upsized exit facility from Goldman Sachs, Credit Suisse, Deutsche Bank, and Morgan Stanley. Simultaneous with the filing of its Plan, Calpine filed a motion to enter into a commitment letter, pay associated commitment and other fees, and to amend and upsize the existing debtor in possession financing facility. If approved, the upsized exit facility would provide for up to $8 billion in secured financing, some $3 billion more than the existing exit facility, on terms that Calpine views as favorable. The commitment to fund the exit facility expires on Jan. 31, 2008. Next Steps in Reorganization Process The Plan and Disclosure Statement have not been approved by the Court and are subject to further negotiations with stakeholders. As a result, the Plan and Disclosure Statement may be materially modified before approval. Calpine intends to request and the Court will conduct a hearing to consider the legal adequacy of the Disclosure Statement. This hearing date has not yet been set by the Bankruptcy Court. If the Court determines that the Disclosure Statement provides sufficient information for claim holders and other interested parties to vote on the Plan, then the Disclosure Statement and Plan will be sent to claim holders for voting purposes. Following the voting process, Calpine will ask the Bankruptcy Court to hold a hearing to consider approval or "confirmation" of the Plan. If the Court confirms the Plan, Calpine would emerge from Chapter 11 shortly thereafter. Calpine currently anticipates this process will take several months. As of the date of this press release, neither Calpine's Official Committee of Unsecured Creditors nor Official Equity Security Holders Committee has endorsed the Plan although Calpine has engaged in discussions with, and included numerous modifications proposed by, the Committees in the Plan and Disclosure Statement. Calpine intends to engage in further discussions with both Committees and other stakeholders in an effort to obtain their support for the Plan in its current form or as it may be amended. About Calpine Corporation Based in San Jose, California, Calpine Corporation (OTC Pink Sheets: CPNLQ) -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Its customized products and services include wholesale and retail electricity, gas turbine components and services, energy management and a wide range of power plant engineering, construction and maintenance and operational services. The company filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200). Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G. Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their restructuring efforts. Michael S. Stamer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. As of Dec. 19, 2005, the Debtors listed $26,628,755,663 in total assets and $22,535,577,121 in total liabilities. CATALYST PAPER: S&P Rates Proposed $200 Million Notes at B+ ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' debt rating to Catalyst Paper Corp.'s proposed $200 million unsecured notes due 2017, being offered pursuant to Rule 144a. Proceeds from the notes will be used for general corporate purposes, including various investments and acquisitions as the company focuses on cost reduction, productivity enhancement, and industry consolidation. The corporate credit rating on Catalyst is 'B+'. The rating outlook is negative. After giving effect to the proposed notes, the company will have about CDN$1.3 billion of pro forma March 31, 2007, fully adjusted debt. The ratings reflect Catalyst's high debt leverage and exposure to the declining North American newsprint market and the cyclical specialty papers and pulp business. These risks are partially offset by its strong market position in newsprint and specialty groundwood papers along the west coast of North America and its improving productivity. Ratings List Catalyst Paper Corp. Corporate credit rating B+/Negative/-- Bank loan rating BB (Recovery rtg: 1) Senior unsecured B+ Ratings Assigned $200 million unsecured notes B+ CDRSVM ACQUISITION: Moody's Rates Proposed $1.15 Bil. Notes at B3 ----------------------------------------------------------------- Moody's Investors Service assigned a B3 rating to the $1.15 billion of proposed senior toggle notes of CDRSVM Acquisition Co., Inc., the acquisition vehicle for the pending leveraged buyout of The ServiceMaster Company. CDRSVM is expected to merge with and into ServiceMaster in connection with the closing of the leveraged buyout. The rating outlook for CDRSVM is stable. On March 19, 2007, Moody's placed the Baa3 senior unsecured debt ratings of ServiceMaster on review for possible downgrade following the announcement that the company had entered into a definitive agreement to be acquired by an investment group led by Clayton, Dubilier & Rice, Inc. for a total enterprise value of approximately $5.2 billion, including the assumption of existing debt and related fees and expenses. The transaction has been approved by the Board of Directors of ServiceMaster and is anticipated to close in July 2007, subject to the receipt of regulatory and shareholder approvals. The buyout is expected to be financed with the proceeds from a $2.65 billion senior secured term loan, $1.15 billion in senior unsecured toggle notes and an equity contribution of approximately $1.43 billion. The $2.65 billion term loan includes a $240 million delayed draw tranche that may be used within 45 days of the closing to redeem existing senior unsecured notes in an aggregate principal amount of $228 million maturing in 2007 and 2009. Existing notes with an aggregate principal amount of $357 million maturing in 2018, 2027 and 2038 are expected to remain in the post-acquisition capital structure. On June 7, 2007, Moody's assigned a B2 Corporate Family Rating and a B1 rating to the $3.35 billion proposed senior secured credit facility of CDRSVM. The $3.35 billion credit facility consists of a $2.65 billion senior secured term loan, a $500 million senior secured revolver, and a $200 million senior secured synthetic letter of credit facility. Moody's will take action to downgrade ServiceMaster's existing senior unsecured notes once substantially all material conditions to the merger are satisfied. Any such notes remaining in the capital structure will likely be downgraded to Caa1 and the ratings on any notes redeemed at closing will be withdrawn. The B2 Corporate Family Rating is constrained by weak credit metrics pro forma for the buyout and significant competition from local, regional and national competitors. The ratings are supported by leading market positions and brands in large end- markets, favorable geographic and service line diversification and stable financial performance. In addition, strategic initiatives to reduce costs and improve retention rates should drive performance improvements in the intermediate term. Moody's took rating actions with respect to CDRSVM Acquisition Co., Inc.: -- Assigned $1.15 billion 8 year senior unsecured toggle notes, B3 (LGD 5, 74%) -- Affirmed $2.65 billion 7 year senior secured term loan B, B1 (LGD 3, 33%) -- Affirmed $500 million 6 year senior secured revolving credit facility, B1 (LGD 3, 33%) -- Affirmed $200 million 7 year senior secured synthetic letter of credit facility, B1 (LGD 3, 33%) -- Affirmed Corporate Family Rating, B2 -- Affirmed Probability of Default Rating, B2 The stable outlook anticipates moderate organic revenue growth and EBITDA improvement over the next 12-18 months. Cash flow, leverage and interest coverage are expected to remain weak for the rating category during this period. The following ratings of The ServiceMaster Company remain on review for downgrade: -- $49 million senior unsecured notes due 2007, Baa3 -- $179 million senior unsecured notes due 2009, Baa3 -- $79.5 million senior unsecured notes due 2018, Baa3 -- $195 million senior unsecured notes due 2027, Baa3 -- $83 million senior unsecured notes due 2038, Baa3 -- $300 million medium term note program, Baa3 -- Senior unsecured shelf registration, (P)Baa3 Based in Memphis, ServiceMaster is a leading provider of outsourcing services to residential and commercial customers, primarily in the United States. Its services include lawn care, landscape maintenance, termite and pest control, home warranty, disaster response and reconstruction, cleaning and disaster restoration, house cleaning, furniture repair, and home inspection. For the fiscal year ended December 31, 2006, the company generated revenue of approximately $3.4 billion. CENVEO CORP: S&P Retains Recovery Ratings Despite Loan Add-On ------------------------------------------------------------- Standard & Poor's Ratings Services said that its issue level and recovery ratings on Cenveo Corp.'s secured financing remain unchanged following the borrower's announcement of a planned $100 million add-on to its term loan C. Pro forma for the add-on, the secured financing will consist of a $200 million revolver and a $720 million term loan. The issue rating on the financing is 'BB-' with a recovery rating of '2', indicating the expectation for substantial (70%-90%) recovery in the event of a payment default. The company has within its existing credit facilities a provision to increase its term borrowings by up to $400 million, from which the planned $100 million incremental term loan C will be funded. Proceeds will be used to help finance the recently announced acquisition of Madison/Graham ColorGraphics Inc., which is expected to close in July. S&P have not factored into its recovery analysis any of the remaining up to $300 million in incremental term loan capacity, as it is uncommitted. However, should Cenveo request and receive additional term loans, Standard & Poor's will review its loan and recovery ratings to determine whether any changes are warranted. The corporate credit rating on Stamford, Connecticut-based Cenveo Inc. is 'B+' and the rating outlook is positive. The 'B+' rating reflects the company's high leverage pro forma for recent acquisitions, the likelihood of more debt-financed acquisitions in the intermediate term, and the company's participation in highly competitive and fragmented markets. These factors are somewhat offset by operating improvements in 2006 and the expectation of continued growth in profitability and cash flow generation. Ratings List Cenveo Inc. Corporate Credit Rating B+/Positive/-- Secured Debt BB- (Recovery Rating: 2) CHASE MORTGAGE: Fitch Holds Low-B ratings on Three Classes ---------------------------------------------------------- Fitch Ratings has taken these rating actions on three Chase Mortgage Finance Trust transactions: Series 2003-S2 -- Class A affirmed at 'AAA'; -- Class B-1 upgraded to 'AA' from 'A+'; -- Class B-4 upgraded to 'BB' from 'B+'. Series 2003-S3 -- Class A affirmed at 'AAA'; -- Class B-1 affirmed at 'AA+'; -- Class B-2 affirmed at 'A+'; -- Class B-4 affirmed at 'BB+'. Series 2006-S1 -- Class A affirmed at 'AAA'; -- Class M affirmed at 'AA'; -- Class B-1 affirmed at 'A'; -- Class B-2 affirmed at 'BBB'; -- Class B-3 affirmed at 'BB'; -- Class B-4 affirmed at 'B'. The affirmations, affecting approximately $586 million of the outstanding certificates, reflect a stable relationship between credit enhancement and expected loss. The upgrades, affecting approximately $703,000 of the outstanding certificates, reflect an improvement in the relationship between CE and expected loss. In addition, all of the above transactions have experienced growth in CE and have suffered no losses to date. The collateral for the above transaction consists of 15-year and 30-year fixed-rate mortgage loans extended to prime borrowers and secured by first liens on one to four-family residential properties. The loans were originated or acquired by Chase Manhattan Mortgage Corporation and are serviced by Chase Home Finance, LLC, which is rated 'RPS1' by Fitch. CITIGROUP COMMERCIAL: Moody's Rates Class VSM-2 Certs. at Ba1 ------------------------------------------------------------- Moody's Investors Service has assigned definitive ratings to securities issued by Citigroup Commercial Mortgage Trust 2007-FL3. The provisional ratings issued on May 14, 2007 have been replaced with these ratings: -- Class A-1, $493,830,000, rated Aaa -- Class A-2, $164,608,000, rated Aaa -- Class X-1, $796,900,000*, rated Aaa -- Class X-2, $796,900,000*, rated Aaa -- Class B, $24,903,000, rated Aa1 -- Class C, $19,923,000, rated Aa2 -- Class D, $12,949,000, rated Aa3 -- Class E, $11,954,000, rated A1 -- Class F, $12,950,000, rated A2 -- Class G, $11,953,000, rated A3 -- Class H, $11,954,000, rated Baa1 -- Class J, $11,953,000, rated Baa2 -- Class K, $19,923,000, rated Baa3 -- Class THH-1, $3,800,000, rated Baa3 -- Class INM, $2,900,000, rated Baa3 -- Class HOA-1, $3,800,000, rated Baa3 -- Class MLA-1, $3,600,000, rated Baa3 -- Class HTT-1, $1,900,000, rated Baa3 -- Class VSM-1, $3,000,000, rated Baa3 -- Class WES, $2,300,000, rated Baa3 -- Class HFS-1, $2,200,000, rated Baa3 * Approximate notional amount Moody's has assigned definitive ratings to this additional class of certificates: -- Class VSM-2, $1,000,000, rated Ba1 CMS ENERGY: Fitch Assigns Rates $400 Million Senior Notes at BB- ---------------------------------------------------------------- Fitch has assigned a rating of 'BB-' to these new issues from CMS Energy Corp.: -- $250 million 6.55% senior notes, due July 17, 2017; -- $150 million floating-rate senior notes, due Jan. 15, 2013. Proceeds from the sale will be used to retire outstanding debt and for general corporate purposes. The Rating Outlook is Positive. CMS' ratings reflect the company's reduced business risk profile as it continues to exit several international businesses and focus on the utility operations at its primary subsidiary, Consumers Energy Co. (Consumers; rated with an Issuer Default Rating of 'BB', Outlook Positive, by Fitch), as well as its still below investment grade leverage metrics. Fitch notes that CMS has raised proceeds of more than $4 billion in asset divestitures, including the recently announced GasAtacama in Chile and its interest in the Jamaica Private Power Co. LLC. The proceeds from the asset sales will enable the company to reduce parent level debt by approximately $2.5 billion and further improve the utility's common equity ratio to about 50%. Going forward, CMS' business mix will change from 70%/30% regulated/unregulated to approximately 90%/10% regulated/unregulated. Management has indicated that it does not intend to significantly expand the unregulated operations going forward. Any unregulated activities will be focused on domestic assets only. The Positive Outlook for CMS takes into consideration Fitch's expectation that once the announced asset sales are closed, and a major portion of the proceeds used to pay down parent company debt, CMS' credit metrics will improve significantly starting in 2008. Fitch expects the funds flow coverage ratio to improve to around 3.7 times (x) by December 2008 from its current level of 2.9x for the 12-month period ended March 31, 2007. If the additional non-regulated asset sales that are contemplated come to fruition, that would also be viewed positively. Furthermore, the Positive Outlook reflects Fitch's expectation that the company will continue to benefit from the stable cash distributions from Consumers and maintain its current business strategy of focusing growth on regulated utility operations. CMS is a utility holding company whose primary subsidiary is Consumers, a regulated electric and gas utility serving more than 3.5 million customers in western Michigan. CMS also has operations in natural gas pipelines and independent power productions. COMMUNICATION INTELLIGENCE: Establishes $1 Million Credit Facility ------------------------------------------------------------------ Communication Intelligence Corporation has established a credit facility allowing the company, through Dec. 31 2007, to borrow up to $1 million. The new facility is the third credit facility with the same shareholder that provided the credit facilities. As with the prior ones, this facility was established pursuant to a note and warrant purchase agreement. Upon each draw, the company will issue one or more notes, payable within eighteen months after issuance, bearing interest at the rate of fifteen percent per annum payable quarterly in cash. Also, the company will be required to issue warrants to purchase shares of its common stock, the number to be determined by use of a formula known as the Cox-Rubenstein Model, which takes into account the volatility of the underlying stock, the risk free interest rate, dividend yield and exercise price. The exercise price of the warrants will be determined by the volume weighted average price of the common stock for the thirty business days preceding the date of the applicable draw. The warrants will include piggyback registration rights for the underlying shares to participate in certain future registrations of the company's common stock. The terms of the agreement required the company to draw $400,000 of the funds upon signing. Pursuant to that draw and applying the formula, the company has issued warrants to purchase 3,167,898 shares of its common stock at an exercise price of $0.25. No commitment fee is required to keep the funds available. About Communication Intelligence Based in Redwood Shores, California, Communication Intelligence Corporation (OTC Bulletin Board: CICI) -- http://www.cic.com/-- supplies electronic signature solutions for business process automation in the Financial Industry and a leader in biometric signature verification. The company's products enable companies to achieve paperless workflow in their eBusiness processes by enabling them with "The Power to Sign Online(R)" with multiple signature technologies across virtually all applications. Industry leaders such as AIG, Charles Schwab, Prudential, Nationwide (UK) and Wells Fargo chose the company's products to meet their needs. The company sells directly to enterprises and through system integrators, channel partners and OEMs. Going Concern Doubt As reported in the Troubled Company Reporter on April 2, 2007, GHP Horwath PC raised substantial doubt about Communication Intelligence Corporation's ability to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2006. The auditing firm reported that except for 2004, the company has incurred significant losses since its inception and, at Dec. 31, 2006, the company's accumulated deficit was about $88,000. GHP Horwath also added that the company has primarily funded these losses through the sale of debt and equity securities. CRE PROJECT: S&P Puts Preliminary B Rating on $175 Mil. Facility ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary 'B' debt rating and '2' recovery rating to CRE Project Co. LLC's $175 million first lien senior secured credit facility due 2014. The '2' recovery rating indicates the expectation of substantial (70%-90%) recovery of principal in the event of a default. The outlook is stable. "The 'B' preliminary rating for CRE Project's credit facility reflects refinancing risk, the project's owner-build model for construction, and the fact that its offtake agreement with BP does not fully transfer commodity risk to the offtaker," said Standard & Poor's credit analyst Daniel Welt. The rating also reflects uncertainties in the U.S. ethanol industry, which has experienced rapid growth and risks an overbuild of capacity. Somewhat mitigating these factors is the offtake agreement with BP, which offsets the risk of high corn prices through an ethanol price that is indexed to corn and natural gas. Construction has begun and hard costs are expected to be virtually 100% locked-in prior to close. The stable outlook on CRE Project is driven by the contracted margin from the offtake agreement with BP. DAIMLERCHRYSLER: Chrysler Group & GETRAG Makes $530MM Investment ---------------------------------------------------------------- Richard Chow-Wah, Vice President - Powertrain Manufacturing, Chrysler Group, joined Indiana Governor Mitch Daniels to officially name Tipton County, Indiana, as the site of a new dual- clutch transmission manufacturing plant with partner company, GETRAG Corporate Group. The $530 million investment is another step in Chrysler Group's "Powertrain Offensive" -- $3 billion in investments to produce more fuel-efficient engines, transmissions and axles for Chrysler Group. "We appreciate the support that has been offered by state and local officials to help bring this investment to Indiana," Mr. Chow-Wah said. "Together with our new partner, GETRAG, our combined $530 million investment in Tipton will create a state-of- the art facility to manufacture fuel-efficient, dual-clutch transmissions and reaffirm our long-term commitment to producing vehicles that meet and exceed consumers' demands for more economical-to-operate vehicles." "This is an important day for the future of the UAW and Chrysler, and in particular for the continued competitiveness of our team here in the State of Indiana," General Holiefield, UAW Vice President, who directs the union's DaimlerChrysler Department, said. "This investment is a significant step toward realizing our vision to see this company and our union grow this business and transform Chrysler into a stronger company that will be competitive for the long run." Located on a 145-acre site at the intersection of State Road 28 and U.S. 31 in Tipton County, GETRAG will have the operational leadership of the plant which will employ approximately 1,050 full-time Chrysler Group UAW-represented workers and 120 management employees from both companies. The plant will produce 700,000 dual-clutch transmissions annually. Additionally, the plant will have a direct effect on 230 employees at Kokomo Casting and Kokomo Transmission who will be dedicated to producing parts for the GETRAG plant. Construction of the 804,000 square-foot facility is scheduled to begin June 27, 2007, with production beginning in 2009. "Indiana's comeback rolls on," Mr. Daniels said. "The investment is a tribute to the skill of Hoosier workers and the pro-growth climate we are building in our state." "Dual-clutch transmissions provide much better shift quality, driving comfort, and superior fuel efficiency compared to more conventional technologies such as torque converter automatics and/or CVTs," Ulrich Kohler, Vice President Manufacturing -- GETRAG Transmissions Corporation, said. "DCTs replace the energy- sapping torque converters of conventional automatic transmissions with two wet or lubricated clutches -- one that engages first, third and fifth gear and the other that engages second, fourth and sixth. As a result, the transmission can deliver a five to 10 percent improvement in fuel economy." About GETRAG Based in Untergruppenbach, Germany, GETRAG Corporate Group is an independent automotive transmission manufacturer with 12,400 employees at 23 locations worldwide. The Group develops technical solutions for the automotive industry, featuring a wide product range of transmission systems and powertrain components for passenger cars, SUVs, motorbikes and light commercial vehicles. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. DAIMLERCHRYSLER: Chrysler Group Eyes Sales and Dealer Expansion --------------------------------------------------------------- As Chrysler Group continues to increase sales and expand operations in markets outside North America, the company has identified a need for additional sales outlets in key established and growth markets. This week, approximately 70 international investors and dealers are visiting the company's headquarters in Auburn Hills for a sneak peek at the potential for Chrysler, Jeep and Dodge brand franchises in their respective markets. "While we will continue to aggressively defend our position in NAFTA, it is important that we expand in other markets so that we are not as dependent on the ups and downs of a single region," Tom LaSorda, President and CEO - Chrysler Group, said. "With a more global focus we will be better able to take advantage of emerging opportunities." Dealer Investment Forum The Chrysler Group has invited the potential partners from 19 countries all over the world, including Russia, Japan and the Middle East. During three days with senior Chrysler Group executives, the investors will learn more about the different avenues the company is pursuing to become a more global operation as it implements the Recovery and Transformation Plan, a roadmap for returning to financial health. They will also gain insight into the Chrysler Group's growth plans outside North America and experience first-hand the unique products and powertrains that would be available through their franchise if they choose to invest. This week's forum follows a conference held in China where 140 dealers attended. "Due to the expansion of our global portfolio, we see an opportunity not only to strengthen the relationship with our current dealers, but also to look for new business partners that can help us to take our international business to the next level," Michael Manley, Executive Vice President - International Sales, Marketing and Business Development, said. Outside North America, Chrysler Group has roughly 1,400 sales outlets. In established markets, like Western Europe, the company plans to add roughly 100 new sales outlets over the next two years. Additional growth in the dealer network will increase the company's presence in growing markets, such as Russia and China, where the existing dealer network is doing well, but the goals of additional sales growth will require adding more locations. The addition of these new outlets will increase customer satisfaction, as well as contribute to increased sales. Chrysler Group remains committed to ensuring a positive customer experience with the product itself, and with the dealership for both sales and service experiences. Having the necessary number of dealerships exposes more customers to the Chrysler, Jeep and Dodge brands and also means that customers are able to visit a facility in or near their community after purchasing the vehicle for any necessary maintenance. Performance Outside North America In 2006, Chrysler Group expanded the availability of the Dodge brand in key markets all over the world with the launch of the Dodge Caliber, the brand's first volume vehicle outside North America. The next two Dodge vehicles, making their way into global markets this summer, are the Dodge Nitro and Avenger. Demand for the Dodge brand has been strong so far this year as Dodge Caliber sales soared to 13,265 units year-to-date, making it the top-selling Chrysler Group vehicle outside North America. By 2009, Dodge could account for roughly 30% of the company's international sales. "Many dealers outside North America have been very successful with the sales of all three Chrysler Group brands in their local markets," Thomas Hausch, Vice President of International Sales, said. "In Western Europe alone, we increased our return on sales by more than 20%, from 1.7 in 2005 to 2.1 in 2006. This is a clear indication that the new vehicles we are introducing are well-received by our customers and that we deliver to our dealers one of the best return on sales within the industry." Sales growth for Chrysler Group as a whole outside North America has reached an unprecedented two full years of monthly sales gains, and year-to-date growth of 16 percent (91,412 units) over the same period of time in 2006. Much of this growth is attributed to the increase in the number of models that are being introduced in markets all over the world with options that meet the needs of global customers. Chrysler Group management has indicated that the plan is to double last year's sales outside North America and reach approximately 400,000 units in the next five years. To support this growth plan, between 2003 and 2007, The Chrysler Group will approximately double the number of products available outside North America from nine to 20 vehicles. Within the number of models available, the company will triple the number of vehicles in right-hand-drive, from six to 18; and, quadruple the number of vehicles with an option for a diesel powertrain, from four to 16. Chrysler Group sells and services vehicles in more than 125 countries around the world. Sales outside North America currently account for approximately 8% of the company's total global sales. Vehicles available outside of North America come from all three Chrysler Group brands, with limited availability on some trucks and SUV models. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA:DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. DOLLAR GENERAL: Gets 99% Consents & Tenders for Sr. Notes Offering ------------------------------------------------------------------ Dollar General Corporation has received consents and tenders for approximately 99% of the aggregate principal amount of the outstanding 8-5/8% Senior Notes due 2010 of Dollar General as of 5 p.m., New York City time, on June 15, 2007, through Buck Acquisition Corp., an indirectly controlled company by investment funds affiliated with Kohlberg Kravis Roberts & Co. L.P. The Old Notes were tendered pursuant to an Offer to Purchase and Consent Solicitation Statement dated June 4, 2007, which sets forth the terms and conditions of the cash tender offer to purchase any and all of the $200 million outstanding principal amount of the Old Notes. The Tender Offer will expire at midnight, New York City time, on Friday, June 29, 2007. These consents and tenders may not be validly withdrawn unless Buck reduces the amount of the purchase price, the consent payment or the principal amount of the Old Notes subject to the Tender Offer or is otherwise required by law to permit withdrawal. The Tender Offer is being conducted in connection with the anticipated merger of Buck with and into Dollar General. The Tender Offer is conditioned upon, there being validly tendered and not validly withdrawn at least a majority in aggregate principal amount of the outstanding Old Notes, the receipt of the requisite consents to adopt the proposed amendments, the satisfaction by Buck of all conditions precedent to the Merger and the receipt by Buck of the proceeds from certain financing transactions to be entered into in connection with the Merger. Based upon the receipt of tenders and consents as of the Consent Payment Deadline, the minimum tender condition and requisite consent condition would have been satisfied. As a result of the receipt of the requisite consents as of the Consent Payment Deadline, Dollar General, the subsidiary guarantors named therein and U.S. Bank National Association, as successor Trustee under the Indenture pursuant to which the Old Notes were issued, will execute a supplemental indenture to the Indenture in order to effect the proposed amendments to the Old Notes and the Indenture, as provided in the Offer to Purchase. However, the proposed amendments will not become operative if the Tender Offer is terminated or withdrawn or the Old Notes are never accepted for payment. Subsequent to the proposed Merger, the company and its directors were named in litigation that is pending in the Circuit Court for Davidson County alleging claims for breach of fiduciary duty arising out of the proposed sale of the company to KKR. In connection with that litigation, the company also disclosed that, last week, the Court denied the plaintiffs' motion for a temporary injunction to delay the company's shareholder meeting, scheduled for June 21, 2007. The company continues to believe that the litigation is without merit and intends to vigorously defend the litigation. About Dollar General Corporation Based in Goodlettsville, Tennessee, Dollar General Corporation (NYSE: DG) -- http://www.dollargeneral.com/ -- operates 8,260 extreme value general merchandise stores in 35 states. * * * As reported in the Troubled Company Reporter on June 14, 2007, Moody's Investors Service affirmed Dollar General Corporation's corporate family rating at B3 following the company's disclosure of revisions to its proposed capital structure, notably, KKR increasing its equity investment to $2.775 billion with a corresponding reduction in proposed debt to $4.7 billion. The rating outlook remains stable. EDWARD WALLS: Case Summary & Eight Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Edward Von Albade Walls 4443 Shady Rock Court Apopka, FL 32712 Bankruptcy Case No.: 07-02527 Chapter 11 Petition Date: June 18, 2007 Court: Middle District of Florida (Orlando) Debtor's Counsel: Michael A. Paasch, Esq. Mateer & Harbert, P.A. P.O. Box 2854 Orlando, FL 32802 Tel: (407) 425-9044 Fax: (407) 423-2016 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's 8 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Longwood Industrial business debt $190,000 Properties 375 Commerce Way Suite 101 Longwood, FL 32750 American Express credit card $55,912 P.O. Box 360002 Fort Lauderdale, FL 33336-0002 G.M.A.C. business debt $50,000 P.O. Box 4622 Waterloo, IA 50704 Bank First business bank loan $30,000 Chase Bank U.S.A., judgment $29,321 N.A. Aurora Loan Services, business debt $15,000 L.L.C. Sears Credit Cards credit card $12,754 Household Bank credit card $2,725 ELGIN NATIONAL: Acquisition Cues S&P to Withdraw Rating ------------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings on Elgin National Industries Inc. following the company's acquisition by third parties and the completed tender offer of its senior unsecured notes. ENERGAS RESOURCES: Posts $211,898 Net Loss in Qtr. Ended April 30 ----------------------------------------------------------------- Energas Resources reported a net loss of $211,898 on total revenue of $138,664 for the first quarter ended April 30, 2007, compared with a net loss of $281,532 on total revenue of $241,882 for the same period ended April 30, 2006. Oil and gas sales decreased to $135,355 for the quarter ended April 30, 2007, from $237,493 for the same period last year primarily due to the decrease in gas production partially offset by higher gas prices. Operating loss was $140,802 for the quarter ended April 30, 2007, compared with an operating loss of $273,391 for the same period in 2006. Lease operating expenses decreased $40,234 to $43,364 due to lower production and reductions in service work and repairs. Pipeline and gathering expense decreased $24,775 to $43,513 due to the decrease in production. General and administrative expense decreased to $122,998 from $243,203 in the 2007 quarter due to the reductions in number of employees and professional fees. Depreciation, depletion and amortization decreased to $69,591 from $120,184 in the prior period quarter mainly due to the decrease in production. Interest expense increased to $71,096 from $8,141 in the 2006 quarter due to amortization of loan discount and increased debt balances. At April 30, 2007, the company's consolidated balance sheet showed $5,802,424 in total assets, $1,364,647 in total liabilities, and $4,437,777 in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended April 30, 2007, are available for free at http://researcharchives.com/t/s?2113 Going Concern Doubt Murrell, Hall, McIntosh & Co. PLLP, in Oklahoma City, Oklahoma, expressed substantial doubt about Energas Resources Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Jan. 31, 2007. The auditing firm pointed to the company's recurring losses from operations. The company is in the process of acquiring and developing petroleum and natural gas properties with adequate production and reserves to operate profitably. The company is also in the process of selling certain assets to provide cash resources that are necessary to continue the operations of the company. About Energas Resources Based in Oklahoma City, Oklahoma, Energas Resources, Inc. (OTCBB: EGSR) -- http://www.energasresources.com/-- is primarily engaged in the operation, development, production, exploration and acquisition of petroleum and natural gas properties in the United States through its wholly-owned subsidiaries, A.T. Gas Gathering Systems Inc. and TGC Inc. In addition, the company owns and operates natural gas gathering systems, located in Oklahoma and Kentucky, which serve wells operated by the company for delivery to a mainline transmission system. ESTERLINE TECH: Commences Consent Solicitation for 7.75% Notes -------------------------------------------------------------- Esterline Technologies Corporation commenced a consent solicitation with respect to an amendment to the indenture governing its outstanding 7.75% Senior Subordinated Notes due 2013 issued on June 11, 2003. The consent solicitation will expire at 5:00 p.m., New York City time, on June 27, 2007, unless extended. On the terms and subject to the conditions of the Consent Solicitation, if Esterline receives the requisite consents and the supplemental indenture that contains the amendment is executed, Esterline will pay, after the Consent Date and the satisfaction of the other conditions contained in the Consent Solicitation, to each Holder who has validly delivered a valid consent on or prior to the Consent Date, $3.75 for each $1,000 in principal amount of 7.75% Senior Subordinated Notes due 2013. A holder of approximately 38% in aggregate principal amount of the Notes has indicated that it intends to deliver its consent to the proposed amendment. Esterline is seeking consents to amend the indenture relating to the 7.75% Senior Subordinated Notes due 2013 in order to reallocate some of its existing senior secured bank debt to some of its foreign subsidiaries, which are not permitted to incur debt without guaranteeing the Notes, in order to better match currency funding needs to revenue sources. This amendment would not increase the total amount of indebtedness that Esterline is permitted to incur under the indenture, and would conform the relevant paragraph of the covenant applicable to the 7.75% Senior Subordinated Notes due 2013 to the corresponding paragraph in the covenant applicable to Esterline's 6-5/8% Senior Notes due 2017 issued on March 1, 2007. The complete terms and conditions of the Consent Solicitation are set forth in the Consent Solicitation Statement that is being sent to holders of the 7.75% Senior Subordinated Notes due 2013. Copies of the Consent Solicitation Statement and related Consent Letter may be obtained from Global Bondholder Services Corporation, at (212) 430-3774 and (866) 389-1500 (toll-free). Merrill Lynch & Co. is the Solicitation Agent for the Consent Solicitation. Questions regarding the Consent Solicitation may be directed to Merrill Lynch & Co. at (888) 654-8637 (toll-free) and (212) 449-4914. About Esterline Technologies Corp. Based in Bellevue, Washington, Esterline Technologies Corp. (NYSE: ESL) -- http://www.esterline.com/-- is a specialized manufacturing company principally serving aerospace and defense customers. The company designs, manufactures and markets highly engineered products and systems for application within the industries it serves. The company operates in three segments: Avionics and Controls, Sensors and Systems, and Advanced Materials. The company acquired Wallop Defense Systems Limited and FR Countermeasures on March 24, 2006, and December 23, 2005, respectively, from Cobham plc. Wallop and FR Countermeasures are manufacturers of military pyrotechnic countermeasure devices. On Dec. 16, 2005, Esterline acquired Darchem Holdings Limited, a manufacturer of thermally engineered components for critical aerospace applications. * * * As reported in the Troubled Company Reporter on Feb. 20, 2007, Moody's Investors Service has confirmed Esterline's Corporate Family Rating of Ba2, and has assigned a Ba3 rating to the company's proposed senior unsecured notes due 2017. At the same time, Standard & Poor's Ratings Services assigned its 'BB-' rating to Esterline's proposed $150 million senior unsecured notes due 2017. EYI INDUSTRIES: March 31 Balance Sheet Upside-Down by $4.6 Million ------------------------------------------------------------------ EYI Industries Inc. reported a net loss of $1,602,198 on net revenue of $1,181,166 for the first quarter ended March 31, 2007, compared with a net loss of $875,922 on net revenue of $1,108,759 for the same period ended March 31, 2006. Results for the quarter ended March 31, 2007, includes total financing fees of $237,012 incurred by the company pursuant to its debentures with Cornell Capital, TAIB Bank, and Certain Wealth. Results for the quarter ended March 31, 2007, also included a gain on derivatives in the amount of $136,181, associated with the revaluation of the embedded derivatives to the convertible debentures (in the aggregate principal amount of $4,500,000), and a gain on derivatives of $26,554 associated with the marked-to- market adjustment for the warrants issued to Cornell Capital in consideration of the convertible debenture, to purchase up to an aggregate 124,062,678 shares of the company's common stock at $0.02 and $0.40 per share. The increase in revenues can be primarily attributed to the increase in new independent business associates who paid the annual membership fees and increased product sales of Ultimate ME2. At March 31, 2007, the company's consolidated balance sheet showed $1,521,550 in total assets and $6,200,257 in total liabilities, resulting in a $4,678,707 total stockholders' deficit. The company's consolidated balance sheet also showed strained liquidity with $1,391,035 in total current assets available to pay $5,824,913 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?2117 Going Concern Doubt Williams & Webster P.S., in Spokane, Washington, expressed substantial doubt about EYI Industries 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 significant losses from operations, insufficient revenues to support operational cash flows and working capital deficit. About EYI Industries EYI Industries Inc. (OTCBB: EYII) -- http://www.eyicom.com/-- is engaged in the business of selling, marketing, and distributing a product line consisting of approximately 26 products in four categories: dietary supplements, personal care products, water filtration systems and a fuel additive product. Products are marketed through a network marketing program in which independent business associates purchase products for resale to retail customers, as well as for their own personal use. FEDERAL-MOGUL: Court Extends Confirmation Hearing to July 9 and 10 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware extended, until July 9 and 10, 2007, the hearing for the confirmation of Federal-Mogul Corp. and its debtor-affiliates' plan of reorganization, Cooper Industries, Ltd. disclosed. In 1998, Cooper sold its Automotive Products business, including its Abex Friction Products business, to Federal-Mogul. As part of the transaction, Cooper was indemnified for liabilities related to the divested business, pursuant to a Purchase and Sale Agreement. On Oct. 1, 2001, Federal-Mogul and several of its affiliates filed a Chapter 11 bankruptcy petition and indicated that Federal-Mogul may not honor its indemnity obligations to Cooper, including its obligations for claims related to the Abex Friction Products business. The Federal-Mogul bankruptcy plan incorporates the settlement reached by Cooper, Federal-Mogul and other parties to the bankruptcy proceeding to resolve Cooper's liabilities for the Abex Friction Products business, including the Abex asbestos-related claims. About Cooper Industries Cooper Industries, Ltd. -- http://www.cooperindustries.com/-- is a global manufacturer with 2006 revenues of $5.2 billion, approximately 85 percent of which are from electrical products. Incorporated in Bermuda with administrative headquarters in Houston, Cooper employs approximately 31,000 people and operates eight divisions: Cooper B-Line, Cooper Bussmann, Cooper Crouse- Hinds, Cooper Lighting, Cooper Menvier, Cooper Power Systems, Cooper Wiring Devices and Cooper Tools Group. Cooper Connection provides a common marketing and selling platform for Cooper's sales to electrical distributors. About Federal-Mogul Based in Southfield, Michigan, Federal-Mogul Corporation -- http://www.federal-mogul.com/-- is an automotive parts company with worldwide revenue of some $6 billion. Federal-Mogul also has operations in Mexico and the Asia Pacific Region, which includes, Malaysia, Australia, China, India, Japan, Korea, and Thailand. The Company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $10.15 billion in assets and $8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan. They submitted a Disclosure Statement explaining that plan on April 21, 2003. They submitted several amendments and on June 6, 2004, the Bankruptcy Court approved the Third Amended Disclosure Statement for their Third Amended Plan. On July 28, 2004, the District Court approved the Disclosure Statement. The estimation hearing began on June 14, 2005. They then submitted a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006, and the Bankruptcy Court approved that Disclosure Statement on Feb. 6, 2007. FORUM HEALTH: Moody's Places B1 Bond Rating under Watch ------------------------------------------------------- Moody's Investors Service has placed the B1 bond rating for Forum Health on Watchlist for potential downgrade, affecting $175 million of debt. The primary reason for the Watchlist action relates to uncertainty associated with Forum's ability to reach an agreement with the Ohio Nurses Association, the union that represents nurses at Western Reserve. The current contract expires July 19, 2007. Moody's believes these prolonged negotiations and the absence of an agreement to date suggest that a labor stoppage is a possibility, the occurrence of which would affect the financial position of Forum severely. The system has reached agreements with and received concessions from the primary union at Trumbull Memorial Hospital (although the contract covering nurses will be up for renegotiation in October 2007) as well as with SEIU, which represents service workers system-wide. Through four months ended April 2007, Forum continues to show progress on improving operations that began in the middle of 2006. Savings from the new union contracts will help provide further improvement in 2007. Unfavorably, the system has experienced further volume declines and other challenges that support our significant concern about the system's long-term viability. Additionally, the opening of Humility of Mary's new hospital in August 2007 may have significant negative consequences on Forum operations. Unrestricted cash grew in the last four months to $120 million (92 days of cash on hand) and has generally remained stable throughout the years of 2006 and 2007. Forum recently received the necessary approvals for an extension on its forbearance agreements with Fifth Third letter, JPMorgan, and MBIA until August 15, 2007. Forum has engaged a consultant to assist with the sale of the system's assets, either in pieces or in its entirety. The system is progressing through due diligence with various parties and expects to approve final bids in mid-July. Given the complexity of this process and other factors, the terms and the outcome of the process are uncertain at this time. Moody's expect to conclude our review within 90 days. The outcome of the union negotiations will be a key factor in our final rating assessment. Rated Debt: -- Series 1997A ($77 million outstanding), rated Aaa based upon MBIA insurance, B1 underlying rating -- Series 1997B ($43 million), rated Aaa/VMIG1 based on MBIA insurance and standby bond purchase agreement from JPMorgan (expiration January 15, 2008), B1 underlying rating -- Series 2002A ($40 million), rated B1 -- Series 2002B ($16 million), rated Aa1/VMIG1 based on letter of credit from Fifth Third (expiration January 15, 2008) G-STAR 2003-3: Fitch Affirms BB Rating on $24MM Preferred Shares ---------------------------------------------------------------- Fitch has upgraded two classes of notes issued by G-Star 2003-3 Ltd. and co-issuer G-Star 2003-3 (Delaware) Corp. and affirmed the other four classes of notes as: -- $301,872,323 class A-1 affirmed at 'AAA'; -- $48,000,000 class A-2 affirmed at 'AAA'; -- $18,000,000 class A-3 affirmed at 'AA+'; -- $5,000,000 class B-1 upgraded to 'AA-' from 'A+'; -- $15,000,000 class B-2 upgraded to 'BBB+' from 'BBB'; -- $24,000,000 preferred shares affirmed at 'BB'. G-Star 2003-3 is a managed collateralized debt obligation that closed March 13, 2003 and exited its revolving period in March 2007. G-Star 2003-3 is managed by Capmark Investments LP. As of the May 2007 trustee report, G-Star 2003-3 is supported by a pool of residential mortgage-backed securities (RMBS; 43.6%), commercial mortgage-backed securities (CMBS; 27.5%), senior unsecured real estate investment trust (REIT; 10.1%) securities, consumer and commercial asset-backed securities (ABS; 8%) and CDOs (4.5%). The upgrades are driven primarily by the stable credit quality of the portfolio, the seasoning of the collateral and deleveraging of the capital structure. According to the most recent trustee report dated May 15, 2007 all overcollateralization and interest coverage ratios have remained stable and continue to pass their covenants. Since closing, the Fitch weighted average rating factor has improved to 2.05 ('A/A-') from 3.13 ('BBB+/BBB'). There are no defaulted assets in the portfolio. Although G-Star 2003-3 has a large exposure to CMBS, most of the assets were issued prior to 2005. Due to defeasance and amortization, Fitch believes that the vintage of the underlying CMBS collateral is a positive factor in this transaction. While G-Star 2003-3 has a large exposure to subprime RMBS (approximately 38.4%), the portfolio has limited exposure to the 2006 vintage (approximately 2.3%). The current portfolio exposure to 2003 and 2004 vintages is 14.2% and 9.8%, respectively. Over 70% of the RMBS exposure is to bonds in the mezzanine part of the RMBS capital structure. However, G-Star 2003-3 has no exposure to subprime RMBS assets rated 'BBB-' and below. Fitch continues to closely monitor this transaction. 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. The rating on the class A-1, A-2 and A-3 notes address the timely payment of interest and ultimate payment of principal. The rating on classes B-1 and B-2 address the ultimate payment of interest and ultimate payment of principal. The rating of the preferred shares addresses the ultimate payment of the principal. Fitch will continue to monitor and review this transaction for future rating adjustments. GLEN DEVELOPMENT: Files Chapter 11 Plan of Reorganization --------------------------------------------------------- Glen Development Group LLC filed with the U.S. Bankruptcy Court for the Western District of Washington a Chapter 11 Plan of Reorganization and a revised Disclosure Statement explaining that Plan. Under the Plan, the Class 1 Secured Claim of King County for real property taxes will be paid in full on the effective date of the Plan. All defaults on Marlow on Ravenna-SEA LLC will be waived and cured. Marlow will receive full payment of all principal and interest owed it at the non-default rate as if no default had occurred. Attorney's fees incurred by Marlow in enforcing its secured claim will be paid from refinancing of the Debtor's real property after payment of all normal and usual refinancing costs. The allowed class 3 claim of TRA Industries, Inc. will be paid $24,500 from the refinancing proceeds on the effective date of the Plan. Allowed general unsecured claims and unsecured insider claims will accrue interest from the effective date of the Plan at the Federal Judgment Rate and will be paid up to the full amount of their claim as soon as practicable from the Debtor's sale proceeds. The equity security interests of the Debtor's members will be entitled to any sale proceeds remaining after payment in full of persons holding claim in Classes 1 to 5. About Glen Development Based in Seattle, Washington, Glen Development Group LLC filed for Chapter 11 protection on November 22, 2006 (Bankr. W.D. Wash. Case No. 06-14178). Michael M. Feinberg, Esq. of Karr Tuttle Campbell PS represents the Debtor in its restructuring efforts. No Official Committee of Unsecured Creditors has been appointed in this case. In its schedules, the Debtor listed total assets of $1,500,000 and total debts of $1,389,723. GOLDENTREE LOAN: S&P Withdraws Low-B Ratings on Four Note Classes ----------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings on the class A-1a, A-1b, A-2, B, C, D-1, D-2, D-3, and D-4 notes issued by GoldenTree Loan Opportunities I Ltd., an arbitrage high-yield CLO transaction. The rating withdrawals follow the redemption of the notes at the direction of the holders of over 66 2/3% of the subordinated interests, pursuant to section 9.3 of the indenture. The redemption took place on the June 20, 2007, payment date. Ratings Withdrawn GoldenTree Loan Opportunities I Ltd. Rating Balance ------ ------- Class To From Previous Current ----- -- ---- -------- ------- A-1a NR AAA $365,000,000 $0.000 A-1b NR AAA $0.000 $0.000 A-2 NR AA- $51,000,000 $0.000 B NR A- $64,000,000 $0.000 C NR BBB $42,000,000 $0.000 D-1 NR BB- $8,000,000 $0.000 D-2 NR BB- $7,000,000 $0.000 D-3 NR BB- $9,000,000 $0.000 D-4 NR BB- $10,000,000 $0.000 NR - Not rated. GREENPARK GROUP: Court Approves Gary Miura as Tax Accountant ------------------------------------------------------------ The United States Bankruptcy Court for the Central District of California gave Greenpark Group LLC and its debtor-affiliates permission to employ Gary C. Miura, CPA, as their tax accountant. As reported in the Troubled Company Reporter on March 23, 2007, Mr. Miura is expected to: a. prepare the Debtors' 2006 federal and applicable state limited liability company tax returns; and b. perform additional accounting functions and services as the Debtors and their general insolvency counsel deem necessary and appropriate in connection with the administration of their Chapter 11 cases. The Debtors told the Court that Mr. Miura will bill $175 per hour for this engagement. To the best of the Debtors' knowledge Mr. Miura does not hold any interest adverse to the Debtors' estate and is "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Mr. Miura can be reached at: Gary C. Miura, CPA 13428 Maxella Avenue, No. 202 Marina del Rey, California 92375 Headquartered in Seal Beach, California, GreenPark Group LLC, is a real estate developer and building contractor. The Company and its affiliate, California/Nevada Developments LLC, filed for chapter 11 protection on June 23, 2006 (Bankr. C.D. Calif. Case Nos. 06-10988 & 06-10989). Alan J. Friedman, Esq., at Irell & Manella, LLP, represents the Debtors. No Official Committee of Unsecured Creditors has been appointed in the Debtors' bankruptcy proceedings. When the Debtors filed for protection from their creditors, they estimated assets and debts between $10 million and $50 million. GREENPARK GROUP: Wants Exclusive Plan Filing Period Extended ------------------------------------------------------------ GreenPark Group LLC and its debtor-affiliates ask the United States Bankruptcy Court for the Central District of California to extend the exclusive periods of GreenPark Runkle LLC and McCadden Development to: a. file a Chapter 11 plan of reorganization from May 25, 2007, to July 10, 2007; and b. solicit acceptance of that plan from July 25, 2007, to September 7, 2007. GreenPark Group LLC and California/Nevada Developments LLC also ask the Court to extend the exclusive period to solicit acceptances of that plan from June 18, 2007, to Sept. 7, 2007. GreenPark Runkle, McCadden and California/Nevada are GreenPark Group's debtor-affiliates. The Debtors tell the Court that they need more time to determine the extent of all claims and interest filed against their estate before finalizing their joint Chapter 11 plan. The Debtors remind the Court that the last of the their bar dates will expire on June 26, 2007, and the Debtors will be in a better position to analyze all claims filed against them. About GreenPark Group Headquartered in Seal Beach, California, GreenPark Group LLC, is a real estate developer and building contractor. The Company and its affiliate, California/Nevada Developments LLC, filed for chapter 11 protection on June 23, 2006 (Bankr. C.D. Calif. Case Nos. 06-10988 & 06-10989). Alan J. Friedman, Esq., at Irell & Manella, LLP, represents the Debtors. No Official Committee of Unsecured Creditors has been appointed in the Debtors' bankruptcy proceedings. When the Debtors filed for protection from their creditors, they estimated assets and debts between $10 million and $50 million. HALLWOOD GROUP: Board Chairman Proposes Sale of Assets ------------------------------------------------------ Anthony J. Gumbiner, the chairman of the board and beneficial owner of 66% of the stock of The Hallwood Group Inc., proposed to the company's board of directors to consider a liquidation of the company, which will include a sale of all of Hallwood Group's interests in its Brookwood Companies Inc. subsidiary and a disposition of all of Hallwood Group's interests in Hallwood Energy L.P. As part of the liquidation proposal, Mr. Gumbiner proposed that Brookwood be sold for cash and the net sale proceeds distributed to all Hallwood Group shareholders pro rata. He also proposed that his pro rata portion of Hallwood Group's interests in Hallwood Energy be distributed to him and that he enter into negotiations to purchase Hallwood Group's remaining interests in Hallwood Energy for cash, which would be distributed to the other shareholders of Hallwood Group. Finally, Mr. Gumbiner proposed that if he were to purchase Hallwood Group's remaining interests in Hallwood Energy, other "accredited" and otherwise qualified Hallwood Group shareholders be given the opportunity to receive in lieu of cash a pro rata portion of the Hallwood Energy interests. Hallwood Group's board has established a special committee of directors to review the proposal. The special committee has been authorized by Hallwood Group's board to review any alternative proposals that may be received by Hallwood Group or the special committee. No decisions were made by the special committee with respect to whether to recommend approval of the proposal to Hallwood Group's board of directors. There can be no assurance that any agreement on terms satisfactory to the special committee will result from the special committee's evaluation of the proposal by Mr. Gumbiner or any other proposals, or that any extraordinary transaction will be completed. Headquartered in Dallas, Texas, The Hallwood Group Incorporated (Amex: HWG) -- http://www.hallwood.com/-- is a holding company that operates in the textile products and energy business segments. The company's former real estate and hotel business segments are reported as discontinued operations. The company's textile products subsidiary, Brookwood Companies Incorporated, is an integrated textile company focused on woven nylon products. Effective Dec. 31, 2005, the company's private energy affiliates were consolidated into one entity, Hallwood Energy L.P. The company disposed of its minority investment in two energy affiliates, Hallwood Energy Corporation in December 2004 and Hallwood Energy III L.P. in July 2005. ICONIX BRAND: Completes $287.5MM Convertible Senior Notes Offering ------------------------------------------------------------------ Iconix Brand Group Inc. has closed its offering of $287.5 million aggregate principal amount of 1.875% Convertible Senior Subordinated Notes due 2012, in an offering pursuant to Rule 144A under the Securities Act of 1933, as amended. The company had priced its $250 million aggregate principal amount of the Notes, subsequent to which, in connection with the closing, the initial purchasers exercised in full their option to acquire an additional $37.5 million of the Notes to cover over-allotments. The net proceeds to Iconix from the offering were approximately $280 million, after deducting the initial purchasers' discounts and estimated offering expenses. Iconix used approximately $38.8 million of the net proceeds to fund the net cost of convertible note hedge and warrant transactions that it entered into with affiliates of the initial purchasers. These transactions are intended to offset Iconix' exposure to potential dilution upon conversion of the Notes by increasing the effective conversion price to Iconix from $27.56 to $42.40 and the effective conversion premium from 30% to 100%, based on the last reported sale price of Iconix stock of $21.20 per share on the NASDAQ Global Select Market on June 14, 2007. Iconix plans to use the remaining net proceeds from the note offering to invest in or acquire new brands through mergers, stock or asset purchases and/or other strategic relationships, although it has no present commitments or agreements with respect to any such investment or acquisition, and for general corporate purposes. About Iconix Brand Headquartered in New York City, Iconix Brand Group Inc. -- http://www.iconixbrand.com/-- owns fashion brands to retail distribution from the luxury market. The company licenses its brands to retailers and manufacturers worldwide. * * * The Troubled Company Reporter reported on June 20, 2007, that Standard & Poor's Ratings Services revised its ratings outlook on apparel brand manager and licensor Iconix Brand Group Inc. to negative. At the same time, Standard & Poor's assigned its 'B-' debt rating to Iconix's proposed $250 million convertible senior subordinated notes due 2012. The notes are being offered pursuant to Rule 144A with registration rights under the Securities Act of 1933. As reported in the Troubled Company Reporter on June 18, 2007, Moody's Investors Service affirmed Iconix Brand Group Inc.'s corporate family rating at B1 and assigned a B3 rating to the company's proposed $250 million convertible senior subordinated note offering. INTELSAT LTD: Fitch Puts Issuer Default Rating on Watch Negative ---------------------------------------------------------------- Fitch Ratings has placed these Intelsat Ltd. ratings on Rating Watch Negative: -- Issuer Default Rating 'B'; -- Senior unsecured notes 'CCC/RR6'. Fitch also has placed the ratings of Intelsat's subsidiaries on Rating Watch Negative. Approximately $11.4 billion of debt is affected by the action. The action follows Intelsat's announcement that private equity firm BC Partners has agreed to acquire a 76% stake in Intelsat for approximately $4.6 billion in cash. The current private equity owners of Intelsat will retain ownership of the remaining 24% stake. It is expected that Intelsat's debt will increase by approximately $3.85 billion, which will increase debt-to-EBITDA leverage to over 10 times based on the last twelve months EBITDA as of first-quarter 2007 (1Q-07). The transaction is expected to close in six to nine months pending regulatory approvals. The higher leverage and weaker free cash flow will likely result in Intelsat's IDR being downgraded to 'CCC' from its existing IDR of 'B'. Intelsat has indicated that new debt will be assumed by a new entity junior to the existing Intelsat, Ltd. As a result of the position of the new debt in the capital structure and the expected retirement of approximately $860 million of debt at Intelsat, Ltd. Fitch expects that the Recovery Ratings at Intelsat Corporation, Intelsat Subsidiary Holding Company, Ltd. and the guaranteed debt at the existing Intelsat Bermuda could be unchanged. However, the expected reduction of Intelsat's IDR will result in lower issue ratings for all the Intelsat entities, but the exact issue and recovery ratings will depend on further evaluation of the capital structure, financial projections and recovery analysis. Fitch expects that Intelsat will not have difficulty receiving regulatory approvals and would likely resolve its rating watch status prior to closing. Fitch has placed these ratings of Intelsat subsidiaries on Rating Watch Negative: Intelsat (Bermuda), Ltd. -- Issuer Default Rating 'B'; -- Senior unsecured guaranteed notes 'BB-/RR2'; -- Guaranteed Term Loan 'BB-/RR2'; -- Senior unsecured non-guaranteed notes 'CCC+/RR6'. Intelsat Intermediate Holding Company, Ltd. (Int Holdco) -- Issuer Default Rating 'B'; -- Senior unsecured discount notes 'B-/'RR5'. Intelsat Subsidiary Holding Company, Ltd. (Sub Holdco) -- Issuer Default Rating 'B'; -- Senior secured credit facilities 'BB/RR1'; -- Senior unsecured notes 'BB-/RR2'. Intelsat Corporation (f/k/a PanAmSat Corporation) -- Issuer Default Rating (IDR) 'B'; -- Senior secured credit facilities 'BB/RR1'; -- Senior secured notes 'BB/RR1'; -- Senior unsecured notes 'B/RR4'. INTELSAT LTD: Moody's Puts Ratings Under Review and May Downgrade ----------------------------------------------------------------- Moody's Investors Service placed the long term debt ratings of the Intelsat Ltd. group of companies on review for possible downgrade. The rating action was prompted by news that TD/EBITDA will increase substantially from 7.6x to 10.3x (based on last three quarters annualized, i.e. since last August's acquisition of PanAmSat Holding Corporation, and incorporating Moody's adjustments to the company's reported figures). In turn, this results from the company's June 19, 2007 announcement that funds advised by BC Partners are to acquire 76% of the equity of Intelsat's parent company, Intelsat Holdings, Ltd. The current shareholders, Apax Partners, Apollo Management, Madison Dearborn Partners, Permira and management, will retain the 24% balance. It was reported that Intelsat's debt will increase by approximately $3.85 billion, an increase of some 33%, and there is no change to expectations of cash generation. The review will focus on Intelsat's business and prospects, debt and capital structure, and liquidity arrangements. Moody's Credit Opinion dated 8 September 2006 provides a thorough review of these matters prior to incorporating this latest development. Moody's anticipates concluding the ratings review in advance of closing, which the company has indicated is expected within six-to-nine months. On Review for Possible Downgrade: Issuer: Intelsat (Bermuda), Ltd. -- Senior Unsecured Bank Credit Facility, Placed on Review for Possible Downgrade, currently B2 -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Caa1 Issuer: Intelsat Corporation -- Senior Secured Bank Credit Facility, Placed on Review for Possible Downgrade, currently Ba2 -- Senior Secured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Ba2 -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently B2 Issuer: Intelsat Holding Corporation -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Caa1 Issuer: Intelsat Intermediate Holding Company, Ltd. -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently B3 Issuer: Intelsat Subsidiary Holding Co. Ltd. -- Senior Secured Bank Credit Facility, Placed on Review for Possible Downgrade, currently Ba2 -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently B2 Issuer: Intelsat, Ltd. -- Probability of Default Rating, Placed on Review for Possible Downgrade, currently B2 -- Corporate Family Rating, Placed on Review for Possible Downgrade, currently B2 -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Caa1 Outlook Actions: Issuer: Intelsat, Ltd. -- Outlook, changed to rating under review from stable The company has noted that current plans call for its 5.25% $400 million notes due November 2008 in the name of Intelsat, Ltd. to be defeased or retired. In addition, some $860 million of debt in the name of Intelsat (Bermuda), Ltd. has been highlighted as being repaid, although specific instruments have not been identified. The ratings review will also address the matter of certain debts being repaid. Headquartered in Bermuda, Intelsat is the largest fixed satellite service operator in the world and is privately held by a group of financial investors: BC Partners (prospectively), Apax Partners, Apollo Management, Madison Dearborn Partners, Permira and management. ISLE BLACK: Moody's Affirms B1 Corporate Family Rating ------------------------------------------------------ Moody's Investors Service affirmed Isle of Capri Black Hawk, LLC's B1 corporate family rating, B2 probability of default rating, and B1 (LGD-3, 34%) senior secured bank loan rating. The rating outlook remains stable. The affirmation of ICBH's ratings follow the downgrade of Isle of Capri, Inc.'s restricted group ratings that occurred earlier in a separate rating action. Isle of Capri, Inc. (B1/stable) owns 57% of ICBH. ICBH's ratings consider that despite increased competition and sometimes unfavorable weather conditions in the Black Hawk, CO market, the company is expected to generate positive cash flow after interest, tax distributions, management fees and maintenance and development capital expenditures in fiscal 2007 and 2008, and debt/EBITDA after management fees is expected to remain below 6.0 times over the next two years. Debt/EBITDA after management fees for the 12-month period ended Jan. 28, 2007 was about 5.6x. The affirmation also considers ICBH's stand-alone financing and non- recourse nature status and does not assume any implied support from its parent, Isle of Capri Casinos, Inc. The stable rating outlook acknowledges that the Black Hawk gaming market has a good historical growth rate and is characterized by favorable demographics. Moody's also considers Colorado a moderate regulatory risk jurisdiction with respect to gaming legislation. The stable outlook anticipates that the examination and restatement of Isle of Capri, Inc.'s consolidated financial results, primarily related to lease accounting and rent expense, will not have a material impact on ICBH's or Isle of Capri, Inc.'s reported earnings and cash flow. Material findings related to the examination and restatement of financial statements above what is already expected could have a negative impact on ratings. Material EBITDA declines over the next several quarters could also have a negative impact on ratings. Although ICBH has achieved revenue growth, EBITDA has declined in the past two quarters due to a combination of severe weather and increased supply in the market. The company was able to negotiate a modification to its total leverage covenant earlier this year that slightly increased the maximum consolidated total leverage ratio through the remainder of fiscal 2007. Ratings upside is limited at this time given ICBH's relatively small size and lack of geographic diversification. The ratings are also limited by the high degree of competition in Black Hawk which will likely keep credit metrics consistent with a 'B' category corporate family rating. Moody's most recent action on ICBH occurred on Sep. 26, 2006 when Probability of Default ratings and Loss Given Default assessments were assigned to the ICBH as part of the general roll-out of the LGD product. Isle of Capri Black Hawk, LLC is a 57%-owned unrestricted subsidiary of Isle of Capri Inc. Isle of Capri, Inc. (Nasdaq:ISLE) owns and operates gaming facilities throughout the US, UK and Bahamas. Isle of Capri Black Hawk's net revenue for the 12-month period ended Jan. 28, 2007 was slightly above $200 million. ISLE OF CAPRI: Increased Debt Cues Moody's to Lower Group Ratings ------------------------------------------------------------------ Moody's Investors Service lowered Isle of Capri, Inc.'s restricted group ratings based on the expectation that the company will not be able to reduce its leverage to a level considered more appropriate for a Ba3 corporate family rating. The downgrade considers that as a result of increased debt associated with several expansion projects and competitive pressures, particularly in Iowa and Kansas City, Restricted Group debt/EBITDA will likely remain above 6.0 times (x) through 2009. The Restricted Group's corporate family and probability of default ratings were lowered to B1 from Ba3. The rating on the company's existing $700 million secured bank loan facility was lowered to Ba2 (LGD-2, 20%) from Ba1 (LGD-2, 18%) while its senior subordinated note ratings were lowered to B3 (LGD-5, 78%) from B1 (LGD-5, 76%). This action affects Restricted Group ratings only and does not affect Isle of Capri Black Hawk, LLC's ratings (B1/stable). Isle Black Hawk is a 57%-owned unrestricted subsidiary of Isle of Capri Inc. Isle Black Hawk along with Isle's 67% interest in Blue Chip PLC are held through unrestricted subsidiaries, and as a result, the debt at those subsidiaries is non-recourse to the Restricted Group. The assignment of a stable rating outlook acknowledges the Restricted Group's geographic and property diversification, and expectation that both the Pompano Park racino (opened April 2007) and the Waterloo Casino in Iowa (expected to open by June 30, 2007) will have a long-term positive impact on the Restricted Group's cash flow and asset profile. The stable outlook also assumes that the examination and restatement of financial results currently underway will not have a material impact on reported earnings and cash flow. The examination and restatement is related primarily to lease accounting and rent expense. Material findings related to the examination and restatement of financial statements above what is already expected could have a negative impact on ratings. A slower than expected ramp up of the Waterloo casino and Pompano Park could also have a negative impact on ratings. Ratings improvement would require that the Restricted Group achieve and maintain debt/EBITDA at or below 5.0x and that profitability and coverage measures also map within the 'Ba' indicated rating category as defined in Moody's Global Gaming Methodology. Separately, Moody's assigned a rating of Ba3 (LGD-3, 34%) to all tranches of the Restricted Group's new $1.35 billion senior secured bank credit facility including a $500 million revolver, $700 million term loan, and $150 million delay draw term loan. Proceeds from the new credit facility will be used to refinance the company's existing $700 million credit facility and $200 million 9% senior subordinated notes due 2012, and provide additional liquidity for anticipated expansion projects and pay prepayment premiums and transaction related fees. The rating assigned to the new senior secured credit facility reflects the application of Moody's loss given default methodology to the pro forma capital structure. The Restricted Group's $500 million 7% senior subordinated notes will remain in the capital structure and its rating is not expected to change once the new bank facility closes. The Ba2 rating on the Restricted Group's existing $700 million bank facility will be withdrawn once the new $1.35 billion bank facility becomes in effect. Moody's most recent action on the Restricted Group occurred on Sep. 28, 2006 when Probability of Default ratings and LGD assessments were assigned to the company as part of the general roll-out of the LGD product. Prior to that (Feb 14, 2006), Moody's confirmed the Restricted Group ratings and assigned a negative ratings outlook. Isle of Capri, Inc. (Nasdaq:ISLE) owns and operates gaming facilities throughout the US, UK and Bahamas, in addition to a 57% interest in two Colorado properties (Isle Black Hawk and Colorado Central Station Black Hawk which the company also owns and operates. Reported net revenues for the latest 12-month period ended Jan. 28, 2007, Isle of Capri's consolidated net revenues were about $1.1 billion. KARA HOMES: Can Sell New Jersey Project for $150,000 in Cash ------------------------------------------------------------ Kara Homes Inc. obtained authority from the U.S. Bankruptcy Court for the District of New Jersey to sell its project in Galloway Township, New Jersey for $150,000 cash plus the assumption of $3.4 million in first mortgage debt, Bill Rochelle of Bloomberg News reports. Bloomberg says the property, which has 15 single family lots and four partially completed homes, will be sold to New Jersey home builder, Alliance Homes LLC. Earlier, the Court authorized Kara Homes, Kara at Hawkins Ridge LLC and their debtor-affiliates to borrow, on a final basis, up to $7,999,217 from Plainfield Specialty Holdings II Inc. The Debtors said that the proceeds of the credit facility will be use to fund: a. the completion of the construction of certain of Hawkins Ridge's properties; and b. fees and expenses related to the Plainfield facility and other expenses, including a facility fee of $57,000 and a repayment fee of 1% of all advances to be repaid under the Plainfield facility. The Plainfield facility, totaling $7,999,217, bears an interest rate of 12% per annum. In exchange for the financing under the Plainfield facility, Kara Homes told the Court that Hawkins Ridge will grant Plainfield a blanket priming lien, superior to all other liens, claims and security interests of any other creditors on all of Hawkins Ridge's present and future assets. Headquartered in East Brunswick, New Jersey, Kara Homes Inc. aka Kara Homes Development LLC, builds single-family homes, condominiums, town homes, and active-adult communities. The company filed for chapter 11 protection on Oct. 5, 2006 (Bankr. D. N.J. Case No. 06-19626). On Oct. 9, 2006, nine affiliates filed separate chapter 11 petitions in the same Bankruptcy Court. On Oct. 10, 2006, 12 more affiliates filed chapter 11 petitions. On June 8, 2007, 20 more affiliates filed separate chapter 11 petitions. David L. Bruck, Esq., at Greenbaum, Rowe, Smith, et al., represents the Debtors. Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman & Leonard represents the Official Committee of Unsecured Creditors. Traxi LLC serves as the Debtors' crisis manager. The Debtors engaged Perry M. Mandarino as chief restructuring officer, and Anthony Pacchia as chief financial officer. When Kara Homes filed for protection from its creditors, it listed total assets of $350,179,841 and total debts of $296,840,591. KARA HOMES: Plan Confirmation Hearing Deferred to July 6 -------------------------------------------------------- The U.S. Bankruptcy Court for the District of New Jersey will convene a hearing on July 6, 2007, to consider confirmation of Kara Homes Inc. and its debtor-affiliates' Chapter 11 Plan of Reorganization, Bill Rochelle of Bloomberg News reports. The confirmation hearing was previously set for June 19. The Court approved the Debtors' Disclosure Statement describing their Plan on April 16, 2007. The Court determined that the Disclosure Statement contained adequate information -- the right kind of the right amount for creditors to make informed decisions when asked to vote for the Plan. Overview of the Plan The Plan contemplates continuation of the Debtors' business including the sale and construction of certain developments. Generally, the Plan contemplates that a holding company consists of Plainfield Specialty Holding II Inc. and other investors will acquire 100% of: a. new common shares in Kara Homes Inc.; and b. membership interest in the affiliates coupled with the name Kara Homes Inc. in exchange for: i. the infusion of $8 million in cash, and ii. two lending facilities aggregating up to $90 million. Plainfield, a DIP Loan holder, purchased the mortgage lien of National City Bank the Hawkins Ridge development. The Debtors say that $60 million lending facility will be used to fund the cash-outs of certain construction mortgage holders. The Debtors also say that $30 million lending facility will be used to fund construction of certain developments. The Debtors further say that $8 million in new cash will be used to pay for administration expenses, priority and tax payments, cure payments, real estate taxes on certain projects and working capital. The Plan further provides that the net proceeds from the sale of certain assets together with the net proceeds from the construction of certain developments will be distributed by the Debtors to the holders as described under the Plan. Treatment of Claims Under the Plan, Municipal Tax and Municipal Utility Authorities' Claims will be paid in full by the reorganized Debtors from the new equity. Holders of the claim will remain as liens on their collateral. The Debtors have the option to reinstate the Claims of Prepetition Institutional Mortgage holders at a percentage of par or sell the holder's collateral. In addition, the Debtors say that holders the claim can elect to: i. accept cash-outs where offered; or ii. pursue their remedies with respect to their collateral. Each holder of Subordinated Mortgage Claims will be paid, if allowed, in accordance with the terms of new loan documents to be issued to the holders. All old loan documents will be cancelled as of the Plan effective date. Claims of Construction Lienholders will be reinstated to the extent of the value of the underlying collateral without interest and will remain as liens on their collateral in the same priority and extent as existed prepetition. Holders of Contract Purchasers for Deposits Claim will be assumed by the Debtors. The contract purchasers will consummate the transaction and close the purchase of the home. Claims of Plainfield Specialty Holding II Inc. will be reinstated and extended with interest to accrue at the agreed rate as set forth in the DIP Loan Documents for a period of 36 months. Monthly payments of interest accrued will commence 6 months from the Plan effective date. Claims of Unsecured Creditors will receive: i. $500,000 on the Plan effective date; ii. a share in the development note issued up to $5,000 per home on the closing and sale from net available cash; and iii. a share in the proceeds generated in the creditors trust. Bond Companies and Sureties will be paid, without interest, over a period of years starting 120 days from the Plan effective date until Sept. 1, 2011. Each holder of Equity Interest will be expunged, extinguished and all outstanding stock and membership interest will be cancelled. A full-text copy of the Chapter 11 Plan of Reorganization is available for a fee at: http://www.researcharchives.com/bin/download?id=070427231558 Headquartered in East Brunswick, New Jersey, Kara Homes Inc. aka Kara Homes Development LLC, builds single-family homes, condominiums, town homes, and active-adult communities. The company filed for chapter 11 protection on Oct. 5, 2006 (Bankr. D. N.J. Case No. 06-19626). On Oct. 9, 2006, nine affiliates filed separate chapter 11 petitions in the same Bankruptcy Court. On Oct. 10, 2006, 12 more affiliates filed chapter 11 petitions. On June 8, 2007, 20 more affiliates filed separate chapter 11 petitions. David L. Bruck, Esq., at Greenbaum, Rowe, Smith, et al., represents the Debtors. Michael D. Sirota, Esq., at Cole, Schotz, Meisel, Forman & Leonard represents the Official Committee of Unsecured Creditors. Traxi LLC serves as the Debtors' crisis manager. The Debtors engaged Perry M. Mandarino as chief restructuring officer, and Anthony Pacchia as chief financial officer. When Kara Homes filed for protection from its creditors, it listed total assets of $350,179,841 and total debts of $296,840,591. LAZY DAYS: S&P Lowers Corporate Credit Rating to B from B+ ---------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Seffner, Florida-based recreational vehicle retailer Lazy Days' R.V. Center Inc. to 'B' from 'B+'. The outlook is negative. The downgrade reflects erosion in the company's credit measures to levels inconsistent with the previous rating. This weakening-- despite flat debt levels--was driven by several factors, including lower margins, which have led to reduced earnings and cash flow measures. First quarter EBITDA was down 18% year over year. Results for the rest of the year could also be pressured absent improvements in RV sales broadly, used Class A sales in particular, and/or increased financing penetration or cost reductions. Still, in the longer term, we expect favorable demographic trends, in particular the aging of baby boomers, to support growth of the RV market. LE-NATURE'S INC: Panels File Joint 2nd Amended Liquidation Plan --------------------------------------------------------------- The Official Committee of Unsecured Creditors, the Ad Hoc Committee of Secured Lenders, and the Ad Hoc Committee of Senior Subordinated Noteholders, filed with the U.S. Bankruptcy Court for the Western District of Pennsylvania their Joint Amended Chapter 11 Plan of Liquidation for Le-Nature's Inc. and its debtor- affiliates. Overview of the Plan The Plan Proponents tell the Court that the Plan's primary objectives are to: -- liquidate the assets of the estates and prosecute causes of action; -- maximize the value of the ultimate recovery to all creditors on a fair and equitable basis, compared to the value they would receive if the assets of the Debtor was liquidated under chapter 7 of the Bankruptcy Code; and -- settle, compromise or otherwise dispose of certain disputes and claims. Treatment of Claims Under the Plan, Administrative, Priority Non-Tax and Fee Claims will be paid in full, in cash. Holders of Priority Tax Claims will receive, either: a. cash on the effective date of the Plan; or b. deferred cash payments in equal annual installments through the fifth anniversary of the Debtors' bankruptcy filing, plus interest at 6% per annum. Lenders Secured Claims will receive, in full satisfaction, settlement, release, and discharge of and in exchange for their claims: a. tier one trust beneficial interest; b. additional tier one trust beneficial interest, as a result of the disallowance of any disputed claim; and c. all proceeds distributed under the terms of the Plan and the liquidation trust agreement. Other Secured Claims holders will receive, in full satisfaction of their claims, at the option of the Liquidation Trust: (a) payment in cash from proceeds from the sale or disposition of the collateral securing their claims, to the extent of the value of any holder's lien on the property; (b) surrender of the collateral securing their claims; or (c) other distributions as that will satisfy the requirements stated in Section 1129 of the Bankruptcy Code. Subordinated Litigation Claims are entitled to: (a) a pro-rata share of the tier three trust beneficial interests; (b) additional pro-rate share of the tier three trust beneficial interests, as a result of the disallowance of any disputed claim in this class; and (c) all proceeds distributed pursuant to the terms of the Plan and the Liquidation Trust Agreement. Interest Holders will receive: (a) Tier Four Trust Beneficial Interests; (b) additional pro-rate share of the Tier Four Trust Beneficial Interests, as a result of the disallowance of any Disputed Interest in this Class; and (c) all proceeds distributed pursuant to the terms of the Plan and the Liquidation Trust Agreement. Unsecured Claims The Plan Proponents disclose that Unsecured Claims are divided into three sub-classes: * Lenders Unsecured Claims; * General Unsecured Claims; and * Unsecured Subordinated Notes Claims. Under the Plan, Holders of Lenders Unsecured Claim will receive: (a) Tier Two Trust Beneficial Interests; (b) an additional pro-rata share of the Tier Two Trust Beneficial Interests, as a result of disallowance of any Disputed Claim under this class; (c) and additional pro-rata share of the Tier Two Trust Beneficial Interests, as a result of Turnover Enforcement of Unsecured Subordinated Notes Claims distributions; and (d) all proceeds distributed pursuant to the terms of the Plan and the Liquidation Trust Agreement. (e) a percentage of the proceeds of the TSI/Holdings Property to other holder of Unsecured Claims, subject to: i. used of the proceeds to fund the Initial Trust Funding and the Liquidation Trust Reserve; and ii. reallocation of the proceeds to holder of Unsecured Claims. Creditors holding General Unsecured Claims will receive: (a) Tier Two Trust Beneficial Interests; (b) an additional pro-rata share of the Tier Two Trust Beneficial Interests, as a result of disallowance of any Disputed Claim under this class; (c) all proceeds distributed pursuant to the terms of the Plan and the Liquidation Trust Agreement. (e) a percentage of the proceeds of the TSI/Holdings Property to other holder of Unsecured Claims, subject to: i. used of the proceeds to fund the Initial Trust Funding and the Liquidation Trust Reserve; and ii. reallocation of the proceeds to holder of Unsecured Claims. Holders of Unsecured Subordinated Notes Claims will receive: (a) Tier Two Trust Beneficial Interests; (b) an additional pro-rata share of the Tier Two Trust Beneficial Interests, as a result of disallowance of any Disputed Claim under this class; (c) all proceeds distributed pursuant to the terms of the Plan and the Liquidation Trust Agreement, provided, however, that the distributions will be deemed reallocated and distributed on account of Lenders Unsecured Claims, as a settlement of potential claims by Lenders for enforcement of contractual subordination provisions in Senior Subordinated Notes Indenture, in accordance with the "Turnover Enforcement." (d) a percentage of the proceeds of the TSI/Holdings Property to other holder of Unsecured Claims, subject to: i. used of the proceeds to fund the Initial Trust Funding and the Liquidation Trust Reserve; and ii. reallocation of the proceeds to holder of Unsecured Claims. About Le-Nature's Inc. Headquartered in Latrobe, Pennsylvania, Le-Nature's Inc. -- http://www.le-natures.com/-- makes bottled waters, teas, juices and nutritional drinks. Its brands include Kettle Brewed Ice Teas, Dazzler fruit juice drinks and lemonade, and AquaAde vitamin-enriched water. Four unsecured creditors of Le-Nature's filed an involuntary chapter 7 petition against the company on Nov. 1, 2006 (Bankr. W.D. Pa. Case No. 06-25454). On Nov. 6, 2006, two of Le-Nature's subsidiaries, Le-Nature's Holdings Inc., and Tea Systems International Inc., filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code. Judge McCullough converted Le Nature's Inc.'s case to a chapter 11 proceeding. The Debtors' cases are jointly administered. The Debtors' schedules filed with the Court showed $40 million in total assets and $450 million in total liabilities. Douglas Anthony Campbell, Esq., Ronald B. Roteman, Esq., and Stanley Edward Levine, Esq., at Campbell & Levine, LLC, represents the Debtors in their restructuring efforts. The Court appointed R. Todd Neilson as Chapter 11 Trustee. Dean Z. Ziehl, Esq., Richard M. Pachulski, Esq., Stan Goldich, Esq., Ilan D. Scharf, Esq., and Debra Grassgreen, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub LLP, represent the Chapter 11 Trustee. David K. Rudov, Esq., at Rudov & Stein, and S. Jason Teele, Esq., and Thomas A. Pitta, Esq. at Lowenstein Sandler PC, represent the Official Committee of Unsecured Creditors. Edward S. Weisfelner, Esq., Robert J. Stark, Esq., and Andrew Dash, Esq., at Brown Rudnick Berlack Israels LLP, and James G. McLean, Esq., at Manion McDonough & Lucas represent the Ad Hoc Committee of Secured Lenders. Thomas Moers Mayer, Esq., and Matthew J. Williams, Esq. at Kramer Levin Naftalis & Frankel LLP, represent the Ad Hoc Committee of Senior Subordinated Noteholders. LEE'S TRUCKING: IRS Plan Objection Hearing Scheduled on June 27 --------------------------------------------------------------- The Honorable James G. Mixon of the U.S. Bankruptcy Court for the Western District of Arkansas will convene a hearing at 9:30 a.m. on June 27, 2007, at the U.S. Post Office and Courthouse, 101 S. Jackson Avenue in El Dorado, Arkansas, to consider the objection of the U.S. Internal Revenue Service to the confirmation of the Amended Chapter 11 Plan of Reorganization of Lee's Trucking Inc. The IRS, represented by Robert C. Balfe, U.S. Attorney for the Western District of Arkansas, tells the Court that it filed a proof of claim after the Debtor's May 13, 2005 petition date, setting a secured claim of $1,828,592, an unsecured priority claim of $549,887, and an unsecured general claim of $94,917. Since no objection was made to the IRS proof of claim, it was deemed allowed. Yet, the IRS explains, the plan appears to violate the anti- injunction act of the Internal Revenue Code because it states that no penalties assessed post-petition will be paid. This provision is an injunction against certain post-petition actions. The IRS also contends that the plan makes no provision for the tax claims to retain their status as tax obligations after the confirmation of the plan. In addition the Debtor's proposed plan fails to provide that if the reorganized debtor defaults on the payments of a tax debt due to the IRS under the plan, then the entire tax debts still owed to the agency will become due and payable immediately and the IRS may collect these unpaid tax liabilities through the administrative collection provisions of the Internal Revenue Code. Headquartered in El Dorado, Arkansas, Lee's Trucking, Inc. -- http://www.leestrucking.com/-- transports bulk chemicals, non- hazardous materials, hazardous materials, and hazardous waste. The Company filed for chapter 11 protection on May 13, 2005 (Bankr. W.D. Ark. Case No. 05-73565). Robert L. Depper, Jr., Esq., at Depper Law Firm represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed estimated assets and debts of more than $100 million. LEWISTON HALL: Case Summary & Two Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Lewiston Hall Properties, L.L.C. P.O. Box 13083 Huntsville, AL 35802 Bankruptcy Case No.: 07-81544 Chapter 11 Petition Date: June 20, 2007 Court: Northern District of Alabama Debtor's Counsel: Kevin D. Heard, Esq. Heard & Associates, L.L.C. 307 Clinton Avenue West Suite 310 Huntsville, AL 35801 Tel: (256) 535-0817 Fax: (256) 535-0818 Total Assets: $3,504,001 Total Debts: $3,266,506 Debtor's Two Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Elizabeth M. Hall equity/ $945,445 P.O. Box 13083 construction/ Huntsville, AL 35802 operating costs Randy H. Lewis equity $33,000 P.O. Box 13083 Huntsville, AL 35802 LIONEL LLC: Seeks October 16 Exclusivity Period Extension --------------------------------------------------------- Lionel LLC and its debtor-affiliate, Liontech Company, ask the U.S. Bankruptcy Court for the Southern District of New York to extend their exclusivity period until Oct. 16, 2007, Bill Rochelle of Bloomberg News reports. According to Bloomberg, the Court is set to consider the Debtors' request at a hearing on Wednesday next week, June 27, 2007. Overview of the Plan Last month, the Debtors filed with the Court a Disclosure Statement explaining their Chapter 11 Plan of Reorganization. Under the Plan, claims that will be paid in full with cash, plus post-bankruptcy filing interest on the distribution date, include: * Debtor-in-Possession facility claims; * administrative claims; * professional fee claims; * priority tax claims; * secured claims; and * general unsecured claims. The Debtors state in their Plan that holders of intercompany claims will be reinstated on the effective date. Holders of Existing Lionel Membership Interest will be also be retained, but, subject to potential dilution resulting from the exercise of the management options, if issued, and issuance of new Lionel membership interest to the new equity investor. All existing Liontech Common Stock Interest will be retained by the reorganized Lionel. About Lionel LLC Based in Chesterfield, Michigan, Lionel LLC -- http://www.lionel.com/-- markets model train products, including steam and die engines, rolling stock, operating and non-operating accessories, track, transformers and electronic control devices. The Company filed for chapter 11 protection on Nov. 15, 2004 (Bankr. S.D.N.Y. Case No. 04-17324). Abbey Walsh, Esq., at O'Melveny & Myers LLP; and Adam Craig Harris, Esq., and Adam L. Hirsch, Esq., at Schulte Roth & Zabel LLP represent the Debtor in its restructuring efforts. David M. LeMay, Esq., and Francisco Vazquez, Esq., at Chadbourne & Parke, LLP, represented the Official Committee of Unsecured Creditors. When the Company filed for protection from its creditors, it estimated assets between $10 million and $50 million and estimated debts more than $50 million. MAYCO PLASTICS: Confirmation of Liquidation Plan Denied ------------------------------------------------------- The Honorable Phillip J. Shefferly of the U.S. Bankruptcy Court for District of Eastern District of Michigan has denied confirmation of Mayco Plastics, Inc. and its debtor-affiliates' plan of liquidation and disclosure statement. In addition, the Court set Aug. 10, 2007 as the new deadline for filing a combined plan of reorganization and disclosure statement. Judge Shefferly further ordered the Debtors to appear at 11:00 a.m., Aug. 17, 2007, at 211 West Fort Street, Suite 1975, Detroit, Michigan, and show cause why their bankruptcy cases should not be converted or dismissed, in the event the Debtors fail to file a combined plan and disclosure statement. The Debtor's Plan of Liquidation proposes to pay Class I Priority Claims in full, and in cash. Holders of allowed secured and unsecured claims will receive a pro rata distribution of unsecured carveouts, proceeds from avoidance actions and prepetition collateral. About Mayco Plastics Based in Sterling Heights, Michigan, Mayco Plastics Inc. -- http://www.mayco-mi.com/-- is an automotive supplier of injection molded plastics. Stonebridge Industries Inc., the majority shareholder and parent of Mayco Plastics, is an investment firm that acquires companies and helps them grow their business in order to increase shareholder value. Mayco and Stonebridge filed for chapter 11 protection on Sept. 12, 2006 (Bankr. E.D. Mich. Case Nos. 06-52727 & 06-52743). Stephen M. Gross, Esq., and Jeffrey S. Grasl, Esq., at McDonald Hopkins Co. LPA represent the Debtors. AlixPartners LLC serves as the Debtors' financial advisor. Shannon L. Deeby, Esq., at Clark Hill PLC is counsel to the Official Committee of Unsecured Creditors while Grant Thornton LLP serves as its Financial Advisor. When the Debtors filed for protection from their creditors, they estimated assets and debts between $50 million and $100 million. MEG ENERGY: Moody's Confirms Ba3 Rating on $750MM Sr. Term Loan --------------------------------------------------------------- Moody's Investors Service confirmed MEG Energy Corp.'s Ba3 Corporate Family rating and confirmed a Ba3 rating on its existing $750 million delayed draw senior first secured term loan. The rating outlook is stable, concluding a review for downgrade. Moody's initiated the review when MEG signaled late last year that it would be making proportionately sizable acquisitions of undeveloped oil sands lease acreage before reaching key performance milestones and first cash flow from its steam assisted gravity drainage oil sands development in Alberta, Canada. With heavy capital spending and no material cash flow until early 2009, it is essential for MEG to fund acquisitions almost exclusively with equity. Over the last five months, MEG issued CDN$950 million in common equity. MEG is a privately-held Canadian oil sands development firm. It is late in Phases I and II and early in Phases III and IV development of an at least CDN$2.4 billion SAGD oil sands facility in the Christina Lake region of the Athabasca oil sands of Alberta, Canada. The Phase I pilot is designed to generate 3,000 barrels per day of bitumen by early 2008 while Phase II is designed to reach another 22,000 barrels per day by late 2009. With its most recent lease acquisition, MEG owns holds 100% working interests in 589 square miles of oil sands leases which third party engineer GLJ Petroleum Consultants estimate contain potentially 3.5 billion barrels of recoverable bitumen resources. The ratings confirmation reflects that MEG has completed its second substantial acquisition while establishing a pattern of nearly full equity funding of such acquisitions. This has added materially to the asset coverage of the rated loan. To date, MEG has completed 330 evaluation core holes on its 80 square miles of Christina Lake acreage, and has completed the drilling of 6 steam injection and bitumen production well pairs. The confirmation also reflects that Phase I and Phase II construction remains largely on time and that its current estimate of remaining costs are fully backed by cash-on-hand and committed debt funding. Currently, MEG has zero net debt, though debt will rise as development continues MEG currently estimates an additional CDN$570 million of remaining Phases I and II project costs, which appears adequately funded by cash-on-hand (approximately CDN$469 as of March 31, 2007) and C$350 million undrawn under its delayed draw term loan. MEG is preliminarily funding additional Christina Lake expansions, and is evaluating further expansions beyond those being currently funded, that could increase production to over 200,000 barrels per day over the next ten years. Given our view of current cost estimates and our expectations for sector project cost inflation, the associated project costs would be multiples of Phase I and II costs. However, MEG's cost estimates will be updated in fall 2007. Current cost estimates remain sufficiently close to those at the time of our initial March 2006 rating to support the current ratings. Furthermore, while MEG holds major resources and strong asset coverage, the ratings also reflect the uncertainties and challenges of a start-up SAGD project in the face of escalating sector project costs, inherent uncertain degree of production response to SAGD steaming, volatile oil and natural gas prices overall, sector operating cost pressures, and steep price discounting of diluted bitumen. Because MEG's project is a pure upstream operation that will sell low value diluted bitumen rather than upgraded synthetic crude oil, it has thereby also avoided the massive cost overruns, delays, and erosion of project economics incurred by all competitors that are building bitumen upgraders. Nevertheless, with project cost escalation risk extant across the oil sands sector, the outcome of MEG's project cost update later this year is important to the current ratings. It is also important to the ratings that MEG continue to fully fund acquisitions and cost overruns with ample common equity. Thus far, MEG's principal project disappointment has so far not impacted its ratings. MEG commenced the Phase I pilot steam injection in late March 2007. However, an early-May failure in the steam and emulsion lines, connecting its steam generators and processing facilities to its steam injection and bitumen production wells, halted steaming until later this year. While the Phase I pilot would not have generated material cash flow, it would have provided early insight into the productivity of MEG's properties and expected ranges for the important steam/oil ratio. MEG reports that its Phase II schedule and costs have not been impacted by the Phase I pilot disappointment. In January 2007, MEG completed its first large private equity offering since the initial ratings, by issuing C$800 million of new private common equity in January 2007, increasing the offering from an initially planned CDN$550 million. Proceeds primarily repaid its unrated $400 million senior subordinated unsecured term loan (CDN$477 million) raised to bridge finance its CDN$420 million acquisition of Athabasca oil sands leases in September 2006, with the remainder used to fund Christina Lake outlays and other capital investments. On June 4, 2007, for CDN$301.7 million ($284.2 million), MEG reached an agreement to acquire Paramount Resources Ltd.'s oil sands leases (12 sections, 7,680 acres) adjacent to MEG's Surmont leases plus shut-in natural gas rights (128.4 net sections) in the Surmont area of northeastern Alberta. MEG raised proportionately substantial equity funding for the acquisition, including CDN$151.7 million in MEG common shares issued to the seller, a CDN$75 million subordinated secured note due June 2008 issued to the seller, and CDN$75 million in cash. The incremental capital required for the leases is expected to be a low CDN$10 million over the next two years since the acquired lands have already been delineated with core holes and seismic. McDaniel & Associates Consultants Ltd. estimates that the leases may yield 400 million barrels of gross recoverable bitumen and 29.3 billion gross cubic feet of proved and probable gas reserves. As of 1Q07, MEG had cash reserves of CDN$469 million, with an additional CDN$79 million in a debt service reserve account. In addition, the company has a $50 million 3-year revolving credit facility, which is used to fund letters of credit, and an undrawn US$350 million portion of its delay-draw $700 million Term Loan B available to fund Phase I and II costs and initial costs of other expansion phases. With the inclusion of MEG's on-hand cash balance, expected Phase I production cash flow, and its term loan and revolver availability, MEG should have adequate liquidity coverage for Phase II costs and initial costs of other expansions. MEG will need to revisit the debt and/or equity markets, if Phase II costs escalate significantly more than currently expected, to fund future expansion phases at Christina Lake and Surmont, and to fund exploration of its large undeveloped oil sand lease base. MEG's Christina Lake Phase I construction was completed in March 2007 when it was turned over to operating personnel. Steam injection had commenced in February 2007. However, MEG reported in early May that steaming was suspended due to a failure in the facility's steam delivery line and adjacent emulsion line. The incident is under investigation and estimates for resumed steaming are currently undetermined. Financial impact is expected to be modest with insurance actions underway -- no impact to Phase II expansion is anticipated. Ratings upside resides on sound performance, historically strong realized prices, and funding plan for additional expansion if MEG proceeds with subsequent development at Christina Lake, which can potentially provide an additional average daily production of 185,000 barrels per day beyond Phases I and II production over the next ten years. However, the outlook and ratings are subject to: * continued progress in the commissioning and start-up of its Christina Lake Phase I development leading to commercially viable bitumen production, * Phase II construction commencement and reasonably meeting budget for total production, cost projections, production and decline curve per well, and reinvestment needed to sustain production, * disciplined management of operational and capital spending prior to commercial production and first real cash flow, * expected realized prices continuing to remain historically high to support unit costs and leverage, and * mounting environmental pressure due to growing oil sands emission concerns. MEG Energy Corp. is headquartered in Calgary, Alberta, Canada. MGM MIRAGE: Joint Venture Project Cues Fitch to Remove Neg. Watch ----------------------------------------------------------------- Fitch has removed MGM MIRAGE's ratings from Rating Watch Negative following the company's announcement of a joint venture project with Kerzner International and Kirk Kerkorian's subsequent announcement that he is no longer pursuing negotiations to buy MGM's Bellagio and CityCenter properties. Fitch has affirmed MGM's existing ratings with a negative rating outlook, as Kerkorian also announced that he still plans to continue to monitor his investment and review and evaluate opportunities to enhance MGM's shareholder value. These ratings are affected: -- Issuer Default Rating 'BB'; -- Senior credit facility 'BB'; -- Senior notes 'BB'; -- Senior subordinated notes 'B+'; Tracinda Corporation, which is Mr. Kerkorian's investment vehicle, owns 56% of MGM MIRAGE's shares outstanding. Fitch initially placed MGM's credit ratings on Rating Watch Negative on May 22, 2007 following Tracinda's SEC filing that noted it planned to explore purchasing MGM's Bellagio and CityCenter and also consider strategic alternatives that could have included financial restructuring transactions involving all or a substantial portion of the remainder of MGM. Following the announcement, MGM's Board of Directors has terminated its Transactions Committee formed to consider Tracinda's proposals. While the near-term probability of a restructuring is now less likely since Tracinda is no longer considering purchasing the Bellagio and CityCenter, Fitch believes longer-term risk remains with respect to restructuring/shareholder friendly actions, which is the basis for the negative outlook. Fitch believes that any financial restructuring driven by Tracinda would likely adversely affect MGM's credit profile and its leverage is already somewhat high for the rating category. MGM's joint venture agreement with Kerzner International includes a multi-billion dollar property to be developed on 40 acres of land at the north end of the LV Strip at the corner of LV Boulevard and Sahara Avenue. MGM owns 78 acres of land on that corner, 34 acres of which it recently acquired for $575 million, or $17 million per acre. MGM will contribute land to the 50/50 JV valued at $20 million an acre, or $800 million. Kerzner and a financial partner will contribute cash equity and the project also be third-party debt financed. Fitch views positively that MGM has been entering into agreements and partnerships that seek to create value by using its underutilized real estate assets, brand portfolio, and development and management capability. Through JVs, the company has been mitigating the stress on its balance sheet, by providing primarily land and intangible assets with limited capital commitments. Still, Fitch will closely monitor the potential for capital contribution increases as the projects are developed. MGM ended Q1 with $13.24 billion in debt and generated $617 million of wholly-owned EBITDA in Q1 for $2.43 billion generated in the LTM ended March 31, 2007 for leverage of roughly 5.5x. That is likely to increase following the land purchase in Q2. MITEL NETWORKS: High Debt Leverage Prompts S&P's B Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' long-term corporate credit rating to Ottawa-based Mitel Networks Corp. The outlook is stable. At the same time, Standard & Poor's assigned its bank loan and recovery ratings to the company's proposed secured financing, comprising $275 million of first-lien debt (a $30 million revolving credit facility due 2012, and a $245 million term loan B due 2014) and a US$185 million second-lien term loan due 2015. The borrower of the term loans is wholly owned subsidiary, Mitel U.S. Holdings, Inc. The co-borrowers of the revolving credit facility are the parent, Mitel Networks Corp., and indirectly owned subsidiary, Mitel Networks Inc. The term loans and operating revolver are cross-guaranteed by all direct and indirect material subsidiaries of the company. The issued rating on the first-lien debt is 'BB-', with a recovery rating of '1', indicating an expectation of a very high (90%-100%) recovery of principal in the event of a payment default. The issue rating on the second-lien facility is 'CCC+', with a recovery rating of '6', indicating an expectation of a negligible (0%-10%) recovery of principal in the event of default. Proceeds from the bank facilities will be used to partially fund the purchase of Tempe, Arizona-based Inter-Tel Inc. Mitel and Inter-Tel are involved in designing, manufacturing, and selling communication equipment and related services geared to enterprise customers, with a particular focus on telephony products for small-to-medium business customers. "The rating assignment on Mitel reflects its very high pro forma debt leverage and correspondingly weak credit measures," said Standard & Poor's credit analyst Madhav Hari. "It also reflects Mitel's narrow focus on the small-to-medium business segment, strong competition from large industry players, weak historical operating performance at both companies, and integration risks associated with the purchase of a large company," Mr. Hari added. These factors are somewhat tempered by Mitel's enhanced market presence; potential for improved margins, given the synergies and scale benefits; a better product roadmap; enhanced distribution; and healthy cash flow generation. The outlook is stable. The Inter-Tel acquisition improves the company's business prospects given an improved market position, profitability, and operating cash flows. Still, competition from large vendors and limited financial flexibility, together with integration and execution risks, will lead to only moderate improvements to credit metrics in the near term. Should the company improve its market position meaningfully, and realize higher synergies, we could revise the outlook to positive. Conversely, if the company's market position weakens or profitability is challenged, S&P could revise the outlook and ratings downward. ML-CFC COMMERCIAL: Moody's Assigns Low-B Rating on 6 Cert. Classes ------------------------------------------------------------------ Moody's Investors Service has assigned definitive ratings to securities issued by ML-CFC Commercial Mortgage Trust 2007-7. The provisional ratings issued on May 31, 2007 have been replaced with these definitive ratings: -- Class A-1, $53,236,000, rated Aaa -- Class A-2, $110,798,000, rated Aaa -- Class A-SB, $102,775,000, rated Aaa -- Class A-4, $787,943,000, rated Aaa -- Class A-1A, $605,863,000, rated Aaa -- Class AM, $233,551,000, rated Aaa -- Class AJ, $174,358,000, rated Aaa -- Class B, $55,710,000, rated Aa2 -- Class C, $27,855,000, rated Aa3 -- Class D, $45,264,000, rated A2 -- Class A-2FL, $30,000,000, rated Aaa -- Class A-3FL, $204,236,000, rated Aaa -- Class A-4FL, $55,000,000, rated Aaa -- Class AM-FL, $45,000,000, rated Aaa -- Class AJ-FL, $45,000,000, rated Aaa -- Class E, $27,856,000, rated A3 -- Class F, $34,818,000, rated Baa1 -- Class G, $27,855,000, rated Baa2 -- Class H, $24,373,000, rated Baa3 -- Class J, $10,446,000, rated Ba1 -- Class K, $10,446,000, rated Ba2 -- Class L, $10,445,000, rated Ba3 -- Class M, $6,964,000, rated B1 -- Class N, $6,964,000, rated B2 -- Class P, $6,964,000, rated B3 -- Class X, $2,785,502,676*, rated Aaa * Approximate notional amount Moody's has withdrawn the provisional ratings of this class of certificates: -- Class A-3, $204,236,000, WR MOST HOME: Posts $848,628 Net Loss in Quarter Ended April 30 ------------------------------------------------------------ Most Home Corp. reported a net loss of $848,628 on net revenues of $374,962 for the third quarter ended April 30, 2007, compared with a net loss of $754,827 on net revenues of $403,444 for the same period ended April 30, 2006. The decrease in revenues is mainly attributable to the decrease in membership & ClientBuilder revenues and referral revenues, partly offset by increases in wireless and mobility, and other revenues. At April 30, 2007, the company's consolidated balance sheet showed $1,430,430 in total assets and $2,302,128 in total liabilities, resulting in a $871,698 total stockholders' deficit. The company's consolidated balance sheet at April 30, 2007, also showed strained liquidity with $386,575 in total current assets available to pay $2,290,710 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?2114 Going Concern Doubt Manning Elliott LLP expressed substantial doubt about Most Home's ability to continue as a going concern after auditing the company's financial statements for the year ended July 31, 2006. The auditing firm pointed to the company's working capital deficiency, recurring losses from operations, and the need for additional equity/debt financing to sustain its operations. * * * Headquartered in Maple Ridge, British Columbia, Canada, Most Home Corp. (OTC BB: MHMEE.OB) -- http://www.mosthome.com/-- provides lead acquisition, response and management services to real estate brokers and agents across North America, along with website and wireless realty products. NABI BIOPHARMACEUTICALS: Mulling Sale of Company ------------------------------------------------ Nabi Biopharmaceuticals provided updates regarding its ongoing operations, its strategic alternatives process and the Nabi-HB regulatory efforts: -- In connection with the formation of the Nabi Biologics and Corporate Shared Services groups the company eliminated 32 jobs -- approximately 5% of its workforce -- from which it expects to realize nearly $3 million on an annualized basis. -- The strategic alternatives process is continuing with the support of Banc of America Securities and Nabi is pursuing discussions for the sale of the whole or a significant part of the company. -- Nabi has retained the regulatory consulting firm Cato Research Ltd. and together is working with the U.S. Food and Drug Administration to most expeditiously respond to the FDA's requests and complete its data submission for Nabi- HB(R) Intravenous [Hepatitis B Immune Globulin (Human) Intravenous] for the prevention of re-infection with hepatitis B disease in HBV-positive liver transplant patients. Nabi and Cato Research have already had several discussions with the FDA to define the additional data the FDA is seeking from previously-completed clinical trials. Nabi is currently compiling the additional requested information. Creation of SBU Nabi Biopharmaceuticals has created the Nabi Biologics strategic business unit and expanded the role of Dr. Raafat Fahim, Senior Vice President, Research, Technical and Production Operations, to include the new position of Chief Operating Officer and General Manager of the Biologics SBU. Nabi Biologics is responsible for advancing the company's protein and immunological products and development pipeline, including Nabi- HB(R) [Hepatitis B Immune Globulin (Human)], Nabi- HB(R)Intravenous [Hepatitis B Immune Globulin (Human) Intravenous], HEBIG(TM) [Hepatitis B Immune Globulin (Human) Intravenous], Civacir(R) [Hepatitis C Immune Globulin (Human)], ATG- Fresenius S [Anti-T-Lymphocyte Immune Globulin (Rabbit)], IVIG [Intravenous Immunoglobulin] and Nabi(R) Anti-D [Rho (D) Immune Globulin Intravenous (Human)]. The company also has expanded the role of Jordan Siegel to Senior Vice President, Finance and Administration, Chief Financial Officer and Treasurer. In addition to his current role, Mr. Siegel will be responsible for the Corporate Shared Services group, which will streamline and improve all Human Resources, Information Technology and Business Development activities at Nabi and support the company's transition into two independent business units -- Nabi Biologics and Nabi Pharmaceuticals. "Since I became Interim Chief Executive Officer and President of Nabi in February of this year, we have focused and energized the approach of our strategic alternatives process and have leveraged the expertise and success of Cato Research to work more effectively with the FDA to secure expanded regulatory approvals for Nabi-HB," Dr. Leslie Hudson, Interim President and Chief Executive Officer of Nabi Biopharmaceuticals, said. "We are achieving the strategic corporate goals that will help us realize the value of our pipeline -- the creation of Nabi Biologics and, soon, Nabi Pharmaceuticals." About Nabi Biopharmaceuticals Headquartered in Boca Raton, Florida, Nabi Biopharmaceuticals - http://www.nabi.com/-- leverages its experience and knowledge in powering the immune system to develop and market products that fight serious medical conditions. * * * Standard & Poor's Ratings Services assigned 'B-' long term foreign and local issuer credit ratings to Nabi Biopharmaceuticals on April 2006. The outlook is negative. NEW YORK MORTGAGE: Fitch Holds B Rating on Class B-5 Certificates ----------------------------------------------------------------- Fitch Ratings has affirmed these New York Mortgage Trust mortgage- backed pass-through certificates: Series 2006-1 -- Class A at 'AAA'; -- Class B-1 at 'AA'; -- Class B-2 at 'A'; -- Class B-3 at 'BBB'; -- Class B-4 at 'BB'; -- Class B-5 at 'B'. The affirmations affect approximately $226 million of the outstanding certificates and reflect a stable relationship between credit enhancement and expected loss. The above transaction has suffered no collateral loss since its initial rating. The collateral of the above transactions consists of conventional, fully amortizing, 30-year, adjustable-rate mortgage loans extended to prime borrowers and secured by first liens on residential properties. The mortgage loans were originated by either The New York Mortgage Company, LLC, a subsidiary of New York Mortgage Trust, Inc. or by ABN AMRO Mortgage Group, Inc. The transaction is master serviced by Wells Fargo Bank. N.A. (rated 'RMS1' by Fitch). The transaction is seasoned 14 months and has a pool factor (i.e., current mortgage loans outstanding as a percentage of the initial pool) of 82%. NORTH AMERICAN: Court Extends Plan Solicitation Period to Sept. 30 ------------------------------------------------------------------ North American Refractories Company and its debtor-affiliates obtained permission from the Honorable Judith K. Fitzgerald of the U.S. Bankruptcy Court for the Western District of Pennsylvania to extend, until Sept. 30, 2007, the solicitation period wherein the Debtors can solicit acceptances of their Third Amended Plan of Reorganization. The Court took the confirmation of the Amended Plan under advisement after the conclusion of the confirmation hearing on March 16, 2007. However, the Debtors still request an extension of the Solicitation Period as a precautionary measure in order to protect the Debtors' reorganization. The Debtors say that such precautions are reasonable and prudent given the interrelationship between the bankruptcy case of Global Industrial Technologies Inc. and the NARCO Case, the multiple adjournments of the Confirmation Hearing, the Dec. 15, 2006 Amendment and supplemental solicitation in the GIT Case, and the time the Debtors are required to obtain a final order of the Court confirming the Amended Plan. About NARCO Based in Pittsburgh, Pennsylvania, North American Refractories Company was engaged in the manufacture and non- retail sale of refractory bricks and related products. The company and its affiliates sought chapter 11 protection on January 4, 2002 (Bankr. W.D. Pa. Case No. 02-20198) after suffering a slump in the domestic economy and encountering an overwhelming number of claims from individuals asserting injuries or illnesses caused by exposure to products containing asbestos containing it manufactured. James J. Restivo, Jr., Esq., David Ziegler, Esq., and Brian T. Himmel, Esq., at Reed Smith LLP represents the Debtor. No Official Committee of Unsecured Creditors has been appointed in this case. When the Debtor filed for protection from its creditors, it listed $27,559,000,000 in assets and $18,634,000,000 in debts. Plan Update On Jan. 27, 2006, the Debtors filed their Combined Disclosure Statement accompanying the Amended Plan. On Jan. 30, 2006, the Court entered an order approving the Combined Disclosure Statement. The confirmation hearing on the Amended Plan commenced on June 5, 2006, was continued to October 26-27, 2006, continued again to Nov. 17, 2006, and continued again to March 16, 2007. At the conclusion of the Confirmation Hearing on March 16, 2007, the Court took the confirmation of the Amended Plan under advisement. Consequently, the Debtors may require additional time in order to finalize their reorganization. Classes that are impaired have voted to accept the Amended Plan by more than 50% in number and 2/3 in amount. With respect to the NARCO Asbestos Trust, the Amended Plan has been accepted by 95.88% of the voters holding 93.15% of the claims. NORWOOD PROMOTIONAL: Moody's Puts Corporate Family Rating at B2 ---------------------------------------------------------------- Moody's Investors Service assigned a B2 rating to Norwood Promotional Products, Inc.'s new senior secured first lien bank facility, as well as a B3 rating to a new second lien term loan. Moody's also assigned a B2 corporate family rating to the company. The rating outlook is stable. The ratings assigned are based on preliminary terms as outlined by the company, and are subject to receipt and final review of executed documents. These represent first time ratings to the restructured Norwood, leading supplier and imprinter of promotional products in the United States. Proceeds from the above rated debt instruments, as well as borrowings under a new asset- based revolver and a portion of cash, will be used to refinance existing indebtedness, pay $42 million to Norwood Promotional Products Holdings, Inc.'s existing lenders that will then convert to preferred equity, and pay related fees, expenses and prepayment penalties. Ratings assigned are: Norwood Promotional Products, Inc.: -- Corporate family rating at B2 -- Probability of default rating at B2 -- $135 million first-lien Term Loan due 2014 at B2 (LGD 4, 54%) -- $75 million second-lien Term Loan due 2015 at B3 (LGD 4, 69%) Norwood's B2 corporate family rating is primarily driven by its high pro forma leverage, thin interest coverage, and modest cash flows relative to debt. The ratings also consider the company's limited track record of sustainable growth and debt reduction, as revenues have declined over the last several years due to a series of strategic and operational missteps. The company's limited scale relative to other global packaged goods companies also constrains the rating. Norwood operates in the highly competitive and fragmented promotional products industry, which is sensitive to changes in economic conditions and corporate profits. Also, its largest business line is related to calendars and planners, which tends to be highly seasonal, which could lead to risk of inventory obsolescence. Notwithstanding these risks, the rating is supported by the company's leading position in the promotional products industry, its highly diversified customer base, and its strong stable of industry-recognized brand names. The company has distinguished itself as a single-source provider of a diverse set of products within the industry, and has the ability to process a large number of small custom orders. The rating considers that the company has undertaken a series of restructuring initiatives designed to stabilize revenue declines and improve profitability, including the hiring of a new management in 2006. Although these actions are still in the early stages, the company's profitability has shown improvement over the last twelve months and revenue has shown some signs of stabilization. The rating assumes that the company's performance will continue to improve over the near-to- intermediate-term. The stable outlook reflects Moody's expectation that Norwood will begin to grow revenue, and continue to steadily improve its profitability and cash flow generation. This should lead to debt reduction and improved financial leverage over the near-to- intermediate-term. Headquartered in Indianapolis, Indiana, Norwood Promotional Products, Inc. is a leading supplier and imprinter of promotional products in the United States. Promotional products are functional or decorative items imprinted with the name, logo or message of an advertiser. ONONDAGA COUNTY: S&P Cuts Rating on Series 1993A & 1993B Bonds -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on Onondaga County Industrial Development Agency, New York's series 1993A and 1993B bonds, issued for Community General Hospital of Greater Syracuse, to 'BB' from 'BB+', reflecting weaker-than- expected financial performance in fiscals 2006 and 2005 and a decline in unrestricted cash that while anticipated by management, significantly weakens the liquidity position of the organization. The outlook is negative. "We expect that Community General Hospital will continue to improve its financial performance, increase utilization, and make efforts to improve its liquidity, net of payments to fund its pension obligations and self insurance," said Standard & Poor's credit analyst Jennifer Soule. "If CGH is able to achieve these outcomes, a return to a stable outlook is possible within the next one to two years." The lower rating specifically reflects CGH's unexpected decline in operating and excess results in fiscals 2006 and 2005, although the first three months of fiscal 2007 through March 31, 2007, reflect improvement; realization of management's plan to spend- down its unrestricted cash to fund its pension obligation- $9.4 million by the end of fiscal 2007 and an additional $1.7 million in early fiscal 2008; the decrease in cash will result in very light levels of liquidity for the organization; and significant capital spending expected over the next two to three years, as is indicated by CGH's extremely high age of plant of 15.9 years. The 'BB' rating is supported by CGH's recent recruitment of new orthopedic surgeons and the opening of a new physician-owned cancer center on its campus, both of which contribute to the organization's stronger volumes and financial performance through the interim period. An additional credit factor to note, although it is too early to assess the full financial effect to CGH at this time, is CGH's requirement to combine its 50-bed nursing home with Onondaga County's 526-bed nursing home, Van Duyn Home and Hospital, as part of the state's effort to consolidate providers state-wide. The lowered rating affects about $8 million in rated debt. ORECK CORP: Weak Liquidity Position Cues S&P to Junk Credit Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its corporate credit ratings on New Orleans, Louisiana-based Oreck Corp. to 'CCC+' from 'B-'. At the same time Standard & Poor's lowered its ratings on Oreck's existing senior secured bank facility to 'CCC+' from 'B-', on the company's proposed senior secured first-lien credit facilities to 'B-' from B, and on its second-lien facility to 'CCC-' from 'CCC'. The existing senior secured facility's recovery rating of '4' was affirmed, indicating the expectation of average (30%-50%) recovery if a payment default were to occur. The proposed first- and second-lien facilities' recovery ratings of '2' and '6', respectively, were affirmed, indicating the expectation of substantial (70%-90%) recovery to first-lien lenders and negligible (0%-10%) recovery to second-lien lenders if a payment default were to occur. The outlook is negative. About $180 million of total debt was outstanding at April 30, 2007. "The downgrade reflects our concerns about Oreck's very weak liquidity position without access to a revolving credit facility," said Standard & Poor's credit analyst Christopher Johnson. Significant operating challenges also remain, including management's ongoing efforts to relocate and resume normal manufacturing operations, and its ability to fill key senior management positions. "If the company is unable to close on its proposed senior secured credit facilities in the near term, we will withdraw the ratings on these proposed credit facilities, and our ratings on the company's existing facilities would remain in place," said Mr. Johnson. Oreck is a niche and largely domestic manufacturer and distributor of premium household and commercial vacuum cleaners, air purifiers, and other household products. OVERSEAS SHIPHOLDING: Two Underwriters to Exercise Stock Option --------------------------------------------------------------- Overseas Shipholding Group Inc., together with Double Hull Tankers Inc., disclosed that Merrill Lynch & Co. and UBS Investment Bank have exercised their option to purchase 750,000 shares of common stock of Double Hull. The company granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of common stock to cover overallotments in connection with its previously announced offering of 5,000,000 shares of common stock of Double Hull. Overseas Shipholding expects to recognize an additional gain from the sale of the 750,000 shares of about $2 million in the second quarter of 2007. After completion of the sale, Overseas Shipholding's beneficial ownership of Double Hulls's common stock will be reduced from about 12.5%, or 3,751,500 shares, to about 10%, or 3,001,500 shares. This sale was made pursuant to Double Hull's existing shelf registration statement. Double Hull will not receive any proceeds from this sale of its common stock. A registration statement relating to these securities has been filed with the Securities and Exchange Commission and has become effective. This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. A copy of the written prospectus relating to this offering can be obtained from: Merrill Lynch & Co. Prospectus Department 4 World Financial Center New York, New York 10080 or UBS Investment Bank Prospectus Department 299 Park Avenue, New York, NY 10171 Alternatively, you may obtain a copy of the prospectus by calling (212) 449-1000 or (212) 821-3884. About Double Hull Double Hull Tankers, Inc. (NYSE: DHT) -- http://www.dhtankers.com/ -- commenced operations as an independent tanker company on Oct. 18, 2005. It acquired its current fleet of seven double hull crude oil tankers from Overseas Shipholding and currently charters these vessels to subsidiaries of Overseas Shipholding. About Overseas Shipholding Overseas Shipholding Group Inc. (NYSE: OSG) - http://www.osg.com/ -- is a tanker company that offers global energy transportation services for crude oil and petroleum products in the U.S. and International Flag markets. The company is a customer-focused marine transportation company, with offices in Athens, Houston, London, Manila, Montreal, Newcastle, New York City, Philadelphia, Singapore and Tampa. * * * To date, Overseas Shipholding Group Inc. still carries Moody's Investors Service Ba1 long-term corporate family rating and senior unsecured debt ratings issued on Feb. 8, 2005. The ratings outlook remains stable. Also, the company still carries Standard & Poor's BB+ long-term foreign and local issuer credit ratings issued on Feb. 11, 2005. PAUL THORNTON: Case Summary & Three Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Paul G. Thornton 8425 Rock Bridge Road Lithonia, GA 30058 Bankruptcy Case No.: 07-69483 Chapter 11 Petition Date: June 18, 2007 Court: Northern District of Georgia (Atlanta) Judge: C. Ray Mullins Debtor's Counsel: William T. Payne, Esq. 118 East Trinity Place Decatur, GA 30030 Tel: (404) 479-4400 Estimated Assets: $1 Million to $100 Million Estimated Debts: Less than $50,000 Debtor's Three Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Alley-Cassitty Brick $34,405 1115 Southern Road Morrow, GA 30260 Wells Fargo Foundation $7,000 2501 Scaport Drive Suite 300 Chester, PA 19013-1510 Ace Flooring & Granite $5,454 974 Buford Drive Lawrenceville, GA 30044 PORT BARRE: S&P Holds B+ Rating on $185 Million Credit Facilities ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B+' debt rating and '3' recovery rating on Port Barre Investments LLC's $185 million credit facilities and revised the outlook to negative from stable. "The negative outlook revision follows significant cost overruns at the project, which is under construction," said Standard & Poor's credit analyst Charles J. LaPorta, CFA. The project has revised its hard construction costs upward by about 31% or $39.5 million. The higher costs are primary related to well drilling and leaching and construction of the compressor station and leaching facilities. Other costs have increased by 11% or about $9 million. Increased costs were partially offset by a 20% ($9.5 million) reduction in pad gas costs, a result of project redesign that significantly reduced the amount of pad gas that will be required to operate the facility. Construction of the project is progressing and should be completed on schedule, by the fourth quarter of 2008. REMY INT'L: Planned Chapter 11 Filing Cues S&P's Various Actions ---------------------------------------------------------------- Standard & Poor's Ratings Services took several ratings actions on Remy International Inc. following the company's announcement that it has reached an agreement with the majority of its unsecured debt holders to undertake a capital restructuring through a prepackaged plan of reorganization. The Anderson, Indiana-based electrical components manufacturer is in the process of obtaining debtor-in-possession financing and a $330 million senior secured exit credit facility, which would be effective upon execution of the reorganization plan. Standard & Poor's lowered its rating on Remy's $145 million senior unsecured notes to 'D' from 'CC' because Remy elected to not make the June 15, 2007, interest payment. It is expected that these creditors will have their claim exchanged for $100 million of new third-lien payment-in-kind notes and about $50 million in cash under the reorganization plan. At the same time, S&P lowered the rating on Remy's $165 million senior subordinated notes to 'D' from 'CC' because these notes are expected to be converted into 100% of common equity of the reorganized company. S&P affirmed the 'CC' rating on Remy's $125 million floating secured second-priority notes, as these will be paid in full under the reorganization plan. In addition, S&P affirmed the 'CC' rating and '1' recovery rating on Remy's $200 million first- priority bank loan as these will be paid in full under the plan. In addition, if the reorganization plan is successfully executed, S&P could revise its recovery rating to '1' from '4' on Remy's $125 million floating secured second-priority notes, because under the plan Remy would repay this claim in full. Standard & Poor's will withdraw all of its ratings upon approval of the restructuring plan. Remy expects that the plan will incorporate payment to all trade creditors, suppliers, customers, and employees in amounts owed to them in the ordinary course of business. All of the company's existing equity interests will be cancelled in restructuring. As a critical part of the restructuring, Remy indicates that it is making substantial progress in renegotiating certain material commercial agreements to improve margins. The company's attempts to stabilize and expand earnings in the past several years through restructuring, the acquisition of Unit Parts Co., global procurement initiatives, leadership changes, and operational enhancements failed to allow the company to avoid a financial restructuring. REYNOLDS AMERICAN: Fitch Upgrades Ratings with Stable Outlook ------------------------------------------------------------- Fitch Ratings has assigned a 'BBB-' rating to Reynolds American Inc.'s guaranteed secured notes issuance. -- $1.550 billion of new senior secured notes 'BBB-'. Fitch has also upgraded the ratings of RAI and subsidiaries as: Reynolds American Inc. -- Issuer Default Rating to 'BBB-' from 'BB' -- Guaranteed secured bank credit facility to 'BBB' from 'BBB-' -- Guaranteed secured notes to 'BBB-' from 'BB+'. R.J. Reynolds Tobacco Holdings, Inc. -- Issuer Default Rating to 'BBB-' from 'BB' -- Guaranteed unsecured notes to 'BB+' from 'BB' -- Senior unsecured notes to 'BB+' from 'BB-'. The rating outlook for RAI and RJR's is Stable. On June 18, 2007, RAI issued $1.550 billion of new senior secured notes in three tranches; -- $400 million floating-rate notes due 2011; -- $700 million 6 3/4% notes due 2017; -- $450 million 7 1/4% notes due 2037. The net proceeds from the notes offering will be used to repay RAI's $1.538 billion senior secured term loan. The newly issued notes are guaranteed jointly, severally, unconditionally and irrevocably by certain direct and indirect domestic subsidiaries of RAI, including RAI's material domestic subsidiaries, which guarantee the existing secured notes. RAI's subsidiaries that guarantee the notes are Conwood Company, LLC, Conwood Holdings, Inc., Conwood Sales Co., LLC, FHS Inc., GMB, Inc., Lane, Limited, RJR Acquisition Corp., RJR Packaging, LLC, R.J. Reynolds Global Products, Inc., R.J. Reynolds Tobacco Co., R.J. Reynolds Tobacco Company, R.J. Reynolds Tobacco Holdings, Inc., Rosswil LLC, Santa Fe Natural Tobacco Company, Inc., and Scott Tobacco LLC. These guarantors have pledged substantially all of their assets to secure the notes and RAI guaranteed secured credit facility. The rating upgrade and Stable Outlook reflect a decline in litigation risk specifically that RAI would not have to pay a material financial judgment in the near term. Additionally, RAI successfully completed the Conwood integration and still benefits from productivity initiatives. The ratings are also supported by the continued high profitability and strong cash flow generation of the U.S. tobacco industry. These positive elements are balanced by the high level of competitiveness in the industry, low single-digit cigarette volume decline and ongoing, albeit currently manageable, litigation risk. Fitch anticipates that the industry will be subject to negative pressures, including but not limited to smoking bans and rising excise taxes, which diminish pricing flexibility, among other things and contribute to overall consumption declines. Fitch will continue to analyze the effect of these factors and may review RAI's ratings if they negatively affect operating earnings and cash flows. The ratings continue to rely heavily upon maintenance of significant liquidity to manage the remaining tobacco-related litigation risk and obligations. In addition Fitch expects RAI to maintain financial strategies, with regard to leverage targets, acquisitions and share repurchases that are consistent with its ratings. For the latest twelve months ended March 31, 2007, RAI's interest coverage ratio, operating earnings before interest taxes depreciation and amortization-to-interest expense was 7.1 times, its funds from operations interest coverage was 3.4x. RAI's leverage ratio total debt-to-EBITDA was 2.1x for the same period. RAI currently has excess liquidity, provided by cash and short- term investments of $1.9 billion. However, Fitch remains concerned that RAI's 75% dividend payout constrains financial flexibility. REYNOLDS AMERICAN: Moody's Rates $1.55 Billion Senior Notes at Ba1 ------------------------------------------------------------------ Moody's Investors Service affirmed Reynolds American Inc.'s Ba1 corporate family rating and its' speculative grade liquidity rating of SGL-2. At the same time, Moody's assigned a Ba1 rating to the $1,550 million senior secured notes that RAI will be issuing for the purpose of refinancing its $1,538 million senior secured term loan. Moody's also upgraded certain other long-term ratings of RAI including ratings for its $550 million senior secured revolving credit facility and $2,731 million in senior secured global notes Baa1 and Ba1, respectively. These rating actions reflect the change in the company's capital structure which results in a change in the relative proportion of fully secured bank debt as compared with senior secured notes that only benefit from a pledge of the company's property, plant and equipment and stock pledge in the company's subsidiary, R.J. Reynolds Tobacco Company. In accordance with Moody's Loss Given Default Methodology, a Baa1 rating for the senior secured revolving credit facility and a Ba1 rating for the senior secured notes is appropriate. In addition, while the Ba2 senior unsecured ratings for R.J. Reynolds Tobacco Holdings, Inc. were affirmed, the LGD point estimate on RJRTH's $69 million guaranteed unsecured notes was revised to LGD 4, 60% from LGD5, 74%. Final ratings are subject to review of final documentation and ratings on the existing term loan facility will be withdrawn upon completion of the proposed refinancing. The rating outlook is positive. "RAI's Ba1 corporate family rating is supported by the company's strong brand portfolio, product innovation, improving profitability and pricing flexibility, offset in part by the continued, albeit diminished, litigation risk that its RJRT subsidiary continues to face," says Moody's Vice President Janice Hofferber. While RAI's market position and credit metrics are solidly investment grade, its overall ratings are restrained by the declining cigarette per capita consumption trends in the U.S., as well as the threat of additional anti-smoking laws, regulations and excise taxes. In addition, while acquisitions and mergers have provided some critical product diversification in the growing smokeless tobacco category, as well as improved market share positions in the mature cigarette market, RAI's primary source of operating income continues to be generated by its U.S. cigarette subsidiary. Moody's also notes that the corporate family rating reflects the prospects for improved profitability as a result of the company's brand portfolio realignment and merger integration efforts. However, the full benefits of these initiatives are not likely to be fully materialized for several years and are not without potential execution risk. RAI's ratings also reflect Moody's expectation that the company's financial policies, including dividends, share repurchase and acquisition policies, will remain appropriate and not materially impact the company's strong credit metrics. Finally, while litigation risk is greatly diminished as a ratings factor, RAI's ratings will continue to be shaded by up to two notches for its Ba or lower scores on a number of litigation related factors, including the number of lawsuits that RJRT continues to face and the high percentage of consolidated operating cash flow derived from this subsidiary. RAI's positive outlook reflects Moody's expectation that the company will maintain its strong profitability and ample free cash flow by successfully implementing its strategy of focusing on several key investment brands, driving further cost reduction, and successfully integrating and growing its Conwood and Lane smokeless tobacco businesses. The positive outlook also anticipates continued improvement in the current litigation environment. This rating of Reynolds American Inc. was assigned: -- $1,550 million senior secured global notes due 2011-2037 at Ba1 (LGD4, 52%) These ratings of Reynolds American inc. were upgraded: -- $550 million senior secured revolving credit facility to Baa1 (LGD1, 5%) from Baa2 (LGD2, 13%); -- $2,731 million senior secured global notes due 2009-2018 to Ba1 (LGD4, 52%) from Ba2 (LGD4, 66%); These ratings of Reynolds American Inc. were affirmed: -- Corporate Family Rating of Ba1; -- Probability of Default rating of Ba1. -- Speculative Grade Liquidity Rating of SGL-2. This ratings of R.J. Reynolds Tobacco Holdings, Inc. was upgraded: -- $69 million guaranteed unsecured notes due 2007-2015 to Ba1 (LGD4, 60%) from Ba2 (LGD5, 74%). This rating of R.J. Reynolds Tobacco Holdings, Inc. was affirmed: -- $89 million unsecured notes due 2007-2013 of Ba2 (LGD6, 96%). Outlook is positive. Reynolds American Inc. (NYSE: RAI) is the ultimate parent company of wholly owned subsidiaries, R.J. Reynolds Tobacco Company (manufactured cigarettes), Santa Fe Natural Tobacco Company (additive free tobacco cigarettes), Lane Limited (roll your own tobacco brands) and Conwood Holdings, Inc. (smokeless tobacco products). Sales for the last twelve months ending March 31, 2007 were $8.7 billion (net of excise taxes). RICHARD COOPER: Case Summary & 15 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Richard Gordon Cooper aka Richard Gordon Cooper, Jr Blesilda Celeridad Cooper fka Maria Blesilda Cleridad Zoellers 725 Center Street Costa Mesa, CA 92627 Bankruptcy Case No.: 07-11795 Chapter 11 Petition Date: June 18, 2007 Court: Central District Of California (Santa Ana) Debtor's Counsel: Ralph Ascher, Esq. 11022 Acacia Parkway, Suite D Garden Grove, CA 92840 Tel: (714) 638-4300 Fax: (714) 638-4311 Total Assets: $1,890,881 Total Debts: $1,692,881 Debtor's 15 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Orange County Tax county property $20,915 Collector tax 12 Civic Center Plaza Santa Ana, CA 92701-4593 Irmina Yatco personal loan $6,000 297 Boni Serrano Avenue Green Hills, Garden Square, Suite 1300 Quezon City, Philippines Paulino Celeridad personal loan $6,000 2254 Cinco de Jumo 1300 Pasay City, Philippines Internal Revenue Service federal income $2,504 taxes Will Hill personal loan $2,500 Rochelle Zoellers personal loan $2,500 Ronald Zoellers personal loan $1,983 S.&L. Roofing home repairs $1,500 J.J. MacIntyre Co., Inc. medical bills $708 Designed Receivable So. medical bills $395 Financial Debt Recovery medical bills $315 C.B.A. Collection Bureau telephone service $307 Metro Rep. Comm. Svc., medical bills $298 Inc. Revcare, Inc. miscellaneous $142 purchases Citibank unknown $1 RONCO CORP: Wants Court Approval on Laurus Master DIP Financing --------------------------------------------------------------- Ronco Corporation and Ronco Marketing Corporation ask authority from the U.S. Bankruptcy Court for the Central District of California to enter into a debtor-in-possession financing agreement with their secured lender, Laurus Master Fund, Ltd. The Debtors explain to the Court that the DIP financing agreement will enable them to: (1) obtain new inventory in time for their holiday selling season; (2) continue to implement operational improvements; (3) operate their business as a going concern, pending a sale of substantially all of their assets; and (4) fund the fees, costs, expenses, and disbursements of professionals retained in these cases. Pursuant to the agreement, the Debtors will obtain financing from Laurus on a revolving credit basis. The Debtors projected cash needs are contained in projections which cover an eight-week period. The Debtors' financial and operating staff has examined the Debtors' operations to determine how much cash they will need to operate their business for the first eight weeks of these cases, including attempting to account for the effect that this filing will likely have on their business. Under the prepetition revolving line of credit and under this post-petition financing, availability is based on 90% of wholesale accounts, 60% of eligible direct response accounts, and 65% of eligible inventory. As set in the Projections, Laurus agrees to make a significant over advance facility available to the Debtors, which reaches its high point in week four at a $932,379. While the Projections show a total reduction in Laurus' overall revolver indebtedness -- from the Petition Date balance of about $4.563 million to an ending balance of about $2.990 million -- through the projection period, the Projections also show that the over-advance portion of the facility through week eight is about $669,000. The Debtors still are in an over-advanced position through the ending week of the Projections which is a result of the aggregate decline in eligible collateral during the period of the projections. Laurus is also advancing more than $500,000 in "new money" under the DIP Facility. The Debtors immediately require a postpetition revolving line of credit facility, under which they can borrow against their eligible asset base in order to operate their business and acquire inventory for the all-important fourth quarter holiday season pending a consummation of a 363 sale. About Ronco Corp. Based in Simi Valley, California, Ronco Corporation and Ronco Marketing Corporation -- http://www.ronco.com/-- manufacture, source, market, and distribute proprietary branded consumer products for use in kitchen and home. The company and its affiliate filed for Chapter 11 protection on June 14, 2007 (Bankr. C.D. Calif. Case No. 07-15000). Stacia A. Neeley, Esq. and Lee R. Bogdanoff, Esq., at Klee, Tuchin, Bogdanoff and Stern, LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, Ronco Corp. listed $13,879,000 in total assets and $32,736,000 in total liabilities, while Ronco Marketing listed estimated assets and debts of $1 million to $100 million. ROSELINE BAPTISTE: Case Summary & Five Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Roseline Marie Dauphin-Baptiste 440 Prospect Square Pasadena, CA 91103 Bankruptcy Case No.: 07-15056 Chapter 11 Petition Date: June 18, 2007 Court: Central District Of California (Los Angeles) Debtor's Counsel: Aram Ordubegian, Esq. Weinstein, Weiss & Ordubegian, L.L.P. 1925 Century Park East, Suite 1150 Los Angeles, CA 90067 Tel: (310) 203-9393 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's Five Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Andrews, Goldstein & Wong judgment lien $25,750 1825 Bell Street Building B, Suite 120 Sacramento, CA 95825 M.B.N.A. America $21,000 P.O. Box 15137 Wilmington, DE 19886-5137 Don M. Sakaida, Esq. judgement lien $17,583 1117 East Broadway Glendale, CA 91205 Macy's $2,247 Bloomingdale's $1,319 SELBYVILLE BAY: Access to First Mariner's Cash Collateral Okayed ---------------------------------------------------------------- Selbyville Bay Development LLC obtained permission from the U.S. Bankruptcy Court for the District of Delaware to access the cash collateral securing repayment of its obligation to First Mariner Bank. The Bank's cash collateral relates to a promissory note signed by the Debtor through a financing arrangement with the Bank on March 22, 2004, in the total principal amount of $5,530,200. The Debtor will use the funds to complete construction on its 13 unsold real property units in Sussex County, Delaware. As adequate protection, the Debtor grants the Bank a valid, properly perfected security interest in those real properties. Headquartered in Washington, DC, Selbyville Bay Development LLC filed a chapter 11 petition on May 14, 2007 (Bankr. D. Del. Case No. 07-10664). Joseph H. Huston, Jr., Esq. at Stevens & Lee, P.C. represents the Debtor in its restructuring efforts. When the Debtor sought protection from its creditors, it listed assets and debts between $1 million to $100 million. SENSATA TECH: $276 Million Airpax Deal Cues S&P's Negative Outlook ------------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on Sensata Technologies B.V. to negative from stable. The outlook revision follows the company's announcement that it will acquire Airpax Holdings Inc. for $276 million plus fees and expenses using a combination of cash and debt. All of S&P's ratings on Sensata, including its 'B+' corporate credit rating, have been affirmed. "The acquisition delays the financial deleveraging that Standard & Poor's expects for the ratings," said Standard & Poor's analyst Clarence Smith. The ratings on Attleboro, Massachusetts-based Sensata continue to reflect its highly leveraged financial profile, which more than offsets its satisfactory business profile. SHAW GROUP: Plans New Fabrication Facility in Mexico ---------------------------------------------------- The Shaw Group Inc. plans to construct a new state-of-the-art industrial pipe and structural steel fabrication facility in Matamoras, Mexico, further executing its capacity expansion program for its fabrication and manufacturing business. The facility will include over 370,000 square feet of enclosed shop space and state-of-the-art piping technologies designed to interface with Shaw's proprietary production management systems. Shaw will fabricate custom piping systems and structural steel at the new facility, which is expected to be Shaw's largest. The planned facility is expected to be in operation by early 2008. Shaw also plans to add additional work shifts at certain existing facilities as part of its capacity expansion program. "The availability of skilled labor, solid transportation infrastructure, and proximity to our suppliers and clients' projects makes the Matamoras facility a strong strategic addition to our existing portfolio of fabrication facilities," J.M. Bernhard, Jr., chairman, president and chief executive officer of Shaw, said. "With this facility in operation, combined with other expansion strategies we are engaged in, Shaw will increase its pipe fabrication and manufacturing volume capacity by approximately 50% from 2005." This phase of Shaw's fabrication expansion program is expected to significantly increase capacity to address the current and expected increase in demand for piping and structural steel fabrication from the fossil power, nuclear power, refining and petrochemical markets, as well as Canadian oil sands projects. "Shaw will continue to execute its expansion strategy and we look forward to strengthening our position as the world leader in pipe fabrication and manufacturing," Mr. Bernhard, added. Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR) -- http://www.shawgrp.com/-- provides services to the environmental, infrastructure and homeland security markets, including consulting, engineering, construction, remediation and facilities management services to governmental and commercial customers. It is also a vertically integrated provider of engineering, procurement, pipe fabrication, construction and maintenance services to the power and process industries. The company segregates its business activities into four operating segments: Environmental & Infrastructure; Energy & Chemicals; Maintenance, and Fabrication, Manufacturing & Distribution. In January 2005, the company sold substantially all of the assets of its Shaw Power Technologies, Inc. and Shaw Power Technologies International, Ltd. units to Siemens Power Transmission and Distribution Inc., a unit of Siemens AG. The company has operations in Chile, China, Malaysia, the United Kingdom and, Venezuela, among others. * * * Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on The Shaw Group Inc. and removed it from CreditWatch, where it was placed with negative implications in October 2006. S&P said the outlook is stable. In addition, 'BB' senior secured debt rating was affirmed after the $100 million increase to the company's revolving credit facility. SPECTRUM BRANDS: Class Action Lawsuit Dismissed ----------------------------------------------- Spectrum Brands, Inc. disclosed the dismissal of a putative class action lawsuit filed against the company last year in the U.S. District Court for the Northern District of Georgia. The lawsuit generally alleged that the company and the individually named defendants made materially false and misleading public statements concerning the company's operational and financial condition, thereby causing plaintiffs to purchase Spectrum Brands securities at artificially inflated prices. On Oct. 27, 2006, the Court granted defendants' motion to dismiss, and ordered plaintiffs to file an amended complaint, if any, within 30 days. Plaintiffs requested, among other things, additional time to file an amended complaint and on May 18, 2007, the Court entered an opinion and order denying that request. Plaintiffs did not file an appeal and, accordingly, this case is now closed. Headquartered in Atlanta, Georgia, Spectrum Brands (NYSE: SPC) -- http://www.spectrumbrands.com/-- is a consumer products company and a supplier of batteries and portable lighting, lawn and garden care products, specialty pet supplies, shaving and grooming and personal care products, and household insecticides. Spectrum Brands' products are sold by the world's top 25 retailers and are available in more than one million stores in 120 countries around the world. The company has manufacturing and distribution facilities in China, Australia and New Zealand, and sales offices in Melbourne, Shanghai, and Singapore. * * * As reported in the Troubled Company Reporter on April 30, 2007, Fitch Ratings affirmed the ratings of Spectrum Brands, Inc., including its CCC issuer default rating, its CCC- rating of the company's $700 million 7-3/8% senior subordinated note due 2015 and its CCC- rating of the company's $350 million 11.25% Variable Rate Toggle Interest pay-in-kind Senior Subordinated Note due 2013. The Outlook remains Negative. SPGS SPC: Fitch Puts Low-B Ratings on Six Certificate Classes ------------------------------------------------------------- Fitch has assigned these ratings to SPGS SPC variable-floating rate notes, acting for the account of MSC 2007-SRR4 Segregated Portfolio: -- $13,800,000 class B due 2052 'AA-'; -- $18,400,000 class C due 2052 'A+'; -- $24,150,000 class D due 2052 'A'; -- $14,950,000 class E due 2052 'A-'; -- $18,400,000 class F due 2052 'BBB+'; -- $11,500,000 class G due 2052 'BBB'; -- $16,100,000 class H due 2052 'BBB-'; -- $9,200,000 class J due 2052 'BB+'; -- $9,200,000 class K due 2052 'BB'; -- $4,600,000 class L due 2052 'BB-'; -- $4,600,000 class M due 2052 'B+'; -- $4,600,000 class N due 2052 'B'; -- $4,600,000 class O due 2052 'B-'. STARTECH ENVIRONMENTAL: Posts $1MM Net Loss in Qtr. Ended April 30 ------------------------------------------------------------------ Startech Environmental reported Corp. reported a net loss of $1,026,985 on revenue of $191,976 for the second quarter ended April 30, 2007, compared with a net loss of $4,620,815 on revenue of $111,464 for the same period ended April 30, 2006. Other expense for the three months ended April 30, 2007, was $44,935 compared to $3,550,197, for the same period in 2006, a decrease of $3,505,262. This decrease is mainly attributable to the Cornell transaction where amortization of deferred debt discount decreased $894,278 and the impact of the change in value of warrants and conversion options decreased $2,406,597. For the three months ended April 30 2007, revenue was generated from the amortization of portions from the sale of the distributorship agreements. Additionally revenues were derived from the completed installation in Mihama project in Japan. For the three months ended April 30, 2006, the company recognized approximately $66,000 as revenue from the amortization of the distributorship agreements. The balance of revenues were derived from the overhaul project in Mihama during the three months ended April 30, 2006. At April 30, 2007, the company's consolidated balance sheet showed $6,609,135 in total assets, $1,995,196 in total liabilities, and $4,613,939 in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended April 30, 2007, are available for free at http://researcharchives.com/t/s?2118 Going Concern Doubt Marcum & Kliegman LLP, in New York City, expressed substantial doubt about Startech Environmental Corp.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Oct. 31, 2006, and 2005. The auditing firm cited that the company has no significant recurring revenues and has incurred significant losses since inception. About Startech Environmental Headquartered in Wilton, Connecticut, StarTech Environmental Corporation (OTC BB: STHK.OB) -- http://startech.net/ --is an environment and energy industry company engaged in the production and sale of proprietary plasma processing equipment known as the Plasma Converter System(TM). The Plasma Converter System safely and economically destroys wastes, no matter how hazardous or lethal, and turns most into useful and valuable products. SWEETMAN RENTAL: Can Use National Music's Cash Collateral --------------------------------------------------------- The Honorable Charles M. Caldwell of the U.S. Bankruptcy Court for the Southern District of Ohio gave authority to Sweetman Rental, LLC to use cash collateral through selling certain contracts to National Music Funding Corporation. National Music asserts an interest in certain cash held or to be received by the Debtor. National Music does not have an ownership interest in the underlying musical instruments giving rise to the cash held or to be received by the Debtor. National Music is engaged in the business of the purchase and administration of accounts receivable. Prior to the Debtor's filing for bankruptcy, at various times, the Debtor entered into transactions with National Music pursuant to which Debtor sold its rights to receive rental payments under band instrument lease agreements and similar contracts to NMFC. In connection with such transactions, NMFC purportedly received a security interest or lien in certain of Debtor's assets, including Debtor's accounts receivable, general intangibles and proceeds thereof. In 2004, the Debtor and NMFC entered into a certain "Bulk Purchase Agreement, Rent-To-Own Contracts", and a "Rent-To-Own General Dealer Agreement". The NMFC Agreements provided for the sale of certain of the Debtor's receivables from its customers under various rent-to own contracts, installment sale contracts, invoices, indebtedness and obligations. The Court has given the Debtor authority to enter into similar transactions with NMFC, but on a post bankruptcy filing basis. In the early part of 2007, the Court entered an interim, and subsequently, a final order authorizing limited use of cash collateral and granting adequate protection. The Debtor believes that selling certain of its rent-to-own contracts, installment sale contracts, invoices, indebtedness, and obligations to National Music constitutes the use of cash collateral pursuant to Section 363 of the U.S. Bankruptcy Code. The Debtor wants to sell the contracts on an "as-needed" basis to generate liquidity for its operations. The Debtor says the liquidity generated from the sale of the contracts is crucial for it to maintain its business operations, and will serve to protect its ability to reorganize. About Sweetman Rental Based in Lancaster, Ohio, Sweetman Rental, LLC dba Sweetman Music -- http://www.sweetmanmusic.com/-- sells musical instruments in Central and Southeastern Ohio, and offers repair services on musical instruments. The company filed for Chapter 11 protection on Jan. 9, 2007 (Bankr. S.D.OH. Case No. 07-50116). Matthew Fisher, Esq. of the Allen, Kuehnle, Stovall & Neuman LLP represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it estimated assets between $100,000 and $1 million and estimated debts between $1 million and $100 million. SWEETMAN RENTAL: Court Extends Plan-Filing Period to July 31 ------------------------------------------------------------ The Honorable Charles M. Caldwell of the U.S. Bankruptcy Court for the Southern District of Ohio extended Sweetman Rental LLC's exclusive period to file a plan of reorganization and disclosure statement until July 31, 2007. The Debtor's exclusive period deadline to file a plan expired on May 31, 2007. The Debtor told the Court that its ability to successfully reorganize is directly tied to its sales and profitability derived from its 2007/2008 school year rental season. The Debtor needs both orders, and the ability to fill these orders with instruments. Much of the work to obtain rental agreements is well underway, and the Debtor has actively engaged in its "recruitment season". The Debtor is currently in the process of wrapping up its recruitment season, and will engage in analyzing the data pertaining to the anticipated number of rentals, and will be assessing its ability to fill these rental contracts with instruments. The Debtor will have the information necessary to perform this critical analysis in the coming weeks. Consequently, an extension would allow the Debtor to more fully disclose to creditors all information pertaining to feasibility of a plan of reorganization, the available cash flow for distribution to creditors under the plan of reorganization, and to make more complete and accurate disclosures in the disclosure statement. Based in Lancaster, Ohio, Sweetman Rental, LLC dba Sweetman Music -- http://www.sweetmanmusic.com/-- sells musical instruments in Central and Southeastern Ohio, and offers repair services on musical instruments. The company filed for Chapter 11 protection on Jan. 9, 2007 (Bankr. S.D.OH. Case No. 07-50116). Matthew Fisher, Esq. of the Allen, Kuehnle, Stovall & Neuman LLP represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it estimated assets between $100,000 and $1 million and estimated debts between $1 million and $100 million. T REIT INC: Intends to Wind Up Operations and Liquidate Assets -------------------------------------------------------------- T REIT Inc. intends to enter into a liquidating trust agreement on July 16, 2007, for the purpose of winding up the company's affairs and liquidating its assets. It is currently anticipated that, on July 20, 2007, the company will transfer its remaining assets to the Trustee of the T REIT Liquidating Trust. The Liquidating Trust will also assume the company's then remaining liabilities. As of July 16, 2007, the company's stock transfer books will be closed. The formation of the Liquidating Trust is in accordance with the company's Plan of Liquidation, which was approved by the company's shareholders. The transfer of the company's assets and liabilities to the Liquidating Trust should preserve the company's ability to have deducted amounts distributed pursuant to the Plan of Liquidation as dividends and thereby not be subject to federal income tax on such amounts. In addition, the company expects that the transfer of assets to the trust will enable the company to reduce the costs associated with public reporting obligations and related audit expenses that may not be applicable to the Liquidating Trust. Under the terms of the proposed Trust Agreement and the Plan of Liquidation, upon the transfer of the company's assets and liabilities to the Liquidating Trust, each shareholder of the company on the Record Date automatically will become the holder of one unit of beneficial interest in the Liquidating Trust for each share of the company's common stock then held of record by such shareholder. After the conversion of shares to units of beneficial interest, all outstanding shares of the company's common stock will be deemed cancelled, and the rights of beneficiaries in their beneficial interests will not be represented by any form of certificate or other instrument. Shareholders will not be required to take any action to receive beneficial interests. The Trustee will maintain a record of the name and address of each beneficiary and such beneficiary's aggregate units of beneficial interest in the Liquidating Trust. Subject to certain exceptions related to transfer by will, intestate succession or operation of law, beneficial interests in the Liquidating Trust will not be transferable, nor will a beneficiary have authority or power to sell or in any other manner dispose of any such beneficial interests. On the date of the conversion, the economic value of each unit of beneficial interest will be equivalent to the economic value of a share of the company's common stock. In addition, Triple Net Properties, LLC, the holder of a special limited partner interest in the company's operating partnership, will agree to a complete redemption of its special limited partner interest in exchange for $1. As such, Triple Net Properties, LLC will relinquish its current entitlement, pursuant to the terms of the operating partnership agreement, to 15% of certain distributions made. After the redemption, the company will own 100% of the outstanding partnership interests in the operating partnership. The operating partnership will be dissolved in connection with the dissolution of the company, and all of its assets and liabilities will be distributed to the company immediately before the transfer to the Liquidating Trust. It is currently contemplated that the initial trustee of the Liquidating Trust will be W. Brand Inlow, an independent director of the company and the chairman of the company's board of directors. Successor trustees may be appointed to administer the Liquidating Trust in accordance with the terms of the Liquidating Trust Agreement. It is expected that from time to time the Liquidating Trust will make distributions of its assets to beneficiaries, but only to the extent that such assets will not be needed to provide for the liabilities assumed by the Liquidating Trust. No assurances can be given as to the amount or timing of any distributions by the Liquidating Trust. For federal income tax purposes, on the date the assets and liabilities of the company are transferred to the Liquidating Trust, each shareholder of the company as of the Record Date will be treated as having received a pro rata share of the assets of the company to be transferred to the Liquidating Trust, less such shareholder's pro rata share of the liabilities of the company assumed by the Liquidating Trust. Accordingly, on that date each shareholder should recognize gain or loss in an amount equal to the difference between: (x) the fair market value of such shareholder's pro rata share of the net equity of the company transferred to the Liquidating Trust; and (y) such shareholder's adjusted tax basis in the shares of the company's common stock held by such shareholder on the Record Date. The Liquidating Trust is intended to qualify as a "liquidating trust" for federal income tax purposes. As such, the Liquidating Trust should not itself be subject to federal income tax. Instead, each beneficiary shall take into account in computing its taxable income, its pro rata share of each item of income, gain, loss and deduction of the Liquidating Trust, regardless of the amount or timing of distributions made by the Liquidating Trust to beneficiaries. Liquidating Trust Distributions to beneficiaries should not be taxable to such beneficiaries. The Trustee will furnish to beneficiaries of the Liquidating Trust a statement of their pro rata share of the assets transferred by the company to the Liquidating Trust, less their pro rata share of the company's liabilities assumed by the Liquidating Trust so that they may calculate their gain or loss on the transfer. On a yearly basis, the Trustee also will furnish to beneficiaries a statement of their pro rata share of the items of income, gain, loss, deduction and credit of the Liquidating Trust to be included on their tax returns. The state and local tax consequences of the transfer of assets to the Liquidating Trust may be different from the federal income tax consequences of such transfer. In addition, any items of income, gain, loss, deduction or credit of the Liquidating Trust, and any distribution made by the Liquidating Trust, may be treated differently for state and local tax purposes than for federal income tax purposes. Headquartered in Santa Ana, California, T REIT Inc. is in the business of capitalizing on commercial real estate. The real estate investment trust owns or has interests in a scant handful of properties in Illinois and Texas. It manages the properties through its majority-owned general operating partner. The company is externally managed by Triple Net Properties. T REIT began making overtures to go public in 1999, but by late 2004 company management decided that a plan of liquidation would be the best course of action. The plan was approved by shareholders in 2005, and T REIT has been actively disposing of its properties ever since. TOWER AUTO: Cancels Auction Owe to Non Receipt of Competing Bids ---------------------------------------------------------------- Tower Automotive Inc.'s marketing process approved by the U.S. Bankruptcy Court for the Southern District of New York has concluded, yet the Debtor did not receive any competing bids to purchase the company. As a result, the auction scheduled for June 25, 2007, in conjunction with the Debtor's Chapter 11 Plan of Reorganization, has been cancelled. The Debtor will push through with its request with the Bankruptcy Court to approve the sale agreement with TA Acquisition Company, LLC, an affiliate of Cerberus Capital Management, L.P. The Court is scheduled to hear the Debtor's request to confirm its Chapter 11 Plan and approve the sale on July 11, 2007. If successful, the Debtor expects to close the transaction by July 31, 2007. About Tower Automotive Based in Grand Rapids, Michigan, Tower Automotive Inc. (OTC BB: TWRAQ) -- http://www.towerautomotive.com/-- is a global designer and producer of vehicle structural components and assemblies used by every major automotive original equipment manufacturer, including BMW, DaimlerChrysler, Fiat, Ford, GM, Honda, Hyundai/Kia, Nissan, Toyota, Volkswagen and Volvo. Products include body structures and assemblies, lower vehicle frames and structures, chassis modules and systems, and suspension components. The company has operations in Korea, Spain and Brazil. The company and 25 of its debtor-affiliates filed voluntary chapter 11 petitions on Feb. 2, 2005 (Bankr. S.D.N.Y. Case No. 05-10576 through 05-10601). James H.M. Sprayregen, Esq., Ryan B. Bennett, Esq., Anup Sathy, Esq., Jason D. Horwitz, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent the Debtors in their restructuring efforts. Ira S. Dizengoff, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed $787,948,000 in total assets and $1,306,949,000 in total debts. On May 1, 2007, the Debtors filed their Chapter 11 Plan of reorganization and Disclosure Statement explaining that plan. On June 4, 2007, the Debtors submitted an Amended Plan and Disclosure Statement. The Court approved the adequacy if the Amended Disclosure Statement on June 5, 2007. The hearing to consider confirmation of the Debtors' Amended Plan is set for July 11, 2007. TOYS 'R' US: Fitch Affirms B- Issuer Default Rating --------------------------------------------------- New York: Fitch has affirmed its ratings of Toys 'R' Us, Inc. as: Toys 'R' Us, Inc. -- Issuer Default Rating 'B-'; -- Senior unsecured notes 'CCC-/RR6'. Toys 'R' Us, Delaware -- Issuer Default Rating 'B-'; -- Secured revolver 'B/RR3'; -- Secured term loan 'CCC+/RR5'; -- Secured asset sale facility 'CCC+/RR5'; -- Senior unsecured debentures 'CCC/RR6'. TRU 2005 RE Holding Co. -- Issuer Default Rating (IDR) 'B-'; -- Structured credit facility 'B/RR3'. Toys 'R' Us (UK) Ltd. -- Issuer Default Rating (IDR) 'B-'; -- Multicurrency Sec. revolver 'B/RR3'. In addition, Fitch has assigned a rating of 'CCC/RR6' to the $180 million unsecured term loan at TOY-Delaware. Approximately $6.0 billion of debt is affected by these actions. The Rating Outlook has been revised to Stable from Negative. The affirmations and change in TOY's outlook reflect management's turnaround efforts which have led to improving performance at TOY's core U.S. toy segment as well as the steady performance in the international toy and Babies 'R' Us segments. The ratings also reflect TOY's highly leveraged balance sheet and the intense competition in the toy business. TOY's U.S. toy segment reported positive comparable store sales in 2006 after 5 years of negative comparable store sales as a result of store remodeling initiatives such as Toys 'R' Us and Babies 'R' Us side by side stores, exclusive product offerings and improved customer service. In addition, the company's international toy and Babies 'R' Us segments continued to achieve low to mid single digit comparable store sales. This combined with management's turnaround efforts, such as better inventory management, have resulted in operating EBIT margin expansion of 150 basis points to 4.4% in the last twelve months ending May 5, 2007 from 2.9% in 2005 and free cash flow generation of $364 million. As a result, TOY's leverage has strengthened with LTM adjusted debt/EBITDAR decreasing to 6.8 times from 8.1x in 2005, but it remains high. In addition, LTM EBITDAR coverage of interest and rent weakened slightly to 1.4x from 1.5x in 2005 because rent increased due to the consolidation of TOY-Japan results. Fitch anticipates gradual operating performance improvement this year as the company rolls out more Toys 'R' Us and Babies 'R' Us side by side stores which produce higher sales as compared to single concept new stores, as well as store resets that are expected to improve the overall shopping experience in the fall of 2007. Additionally, management's efforts to control costs should allow the company to sustain its operating margins despite strong competition from other toy retailers, discounters, and catalog and internet businesses. The ratings of the various classes of debt listed above reflect their respective recovery prospects. Fitch's recovery analysis assumed an enterprise value of $3.6 billion in a distressed scenario. Applying this value across the capital structure results in good recovery prospects (51%-70%) for the asset-based revolvers which are secured by inventory, receivables and certain Canadian real estate in North America and all assets in Europe. The secured term loan and asset sale facility are secured by intellectual property and second liens on accounts receivable and inventory of TOY-Delaware and the guarantors, and have below average recovery prospects (11%-30%). The senior unsecured debentures at TOY-Delaware have poor recovery prospects (less than 10%). The senior unsecured notes at the holding company level are structurally subordinated, and are rated 'CCC-/RR6', also reflecting poor recovery prospects (less than 10%) in a distressed case. TRILOGY INT'L: Term Loan Increase Cues Moody's to Hold B2 Ratings ----------------------------------------------------------------- Moody's Investors Service affirmed Trilogy International Partners LLC's B2 corporate family and B2 senior secured rating on its announcement that it would upsize its planned term loan to $250 million from $200 million, using the incremental proceeds for general corporate purposes. Moody's does not believe the resulting modest increase in leverage materially alters the company's credit profile, however notes that Trilogy's initial adjusted leverage of roughly 3x remains close to our previously defined downgrade criteria. Accordingly, Moody's believe Trilogy's rating would unlikely hold should additional debt proceeds be raised, or should leverage fail to reduce comfortably below 3x by mid 2008. The ratings reflect a B2 probability of default and a loss-given-default assessment of LGD 4, 51% on the senior secured term loan. The outlook remains stable. Ratings Affirmed: -- Corporate Family Rating B2 -- Probability of Default Rating B2 -- Senior Secured Term Loan B2, LGD 4, 51% The B2 corporate family rating reflects Moody's view that Trilogy's political/ regulatory risks are considerable given essentially all of its revenues are derived from wireless operations in emerging economies (Haiti, Bolivia, and the Dominican Republic), with the majority of its cash flows generated from Haiti, a region with a history of significant instability. The rating also considers that a reasonable portion of the company's cash flows are generated in U.S. dollars, which partially mitigates foreign exchange risks arising from having to service U.S denominated debt obligations with local cash flows, which can't be effectively hedged. The rating also considers Trilogy's favorable growth prospects within each of these three countries given the relatively low levels of wireless penetration currently, its favorable competitive position demonstrated by a current blended market share of roughly 20% and a modest diversification of country risk. Finally, the B2 rating incorporates Moody's opinion that the company's initial adjusted total leverage of roughly 3x may reduce to under 2.5x by the end of 2008 but that free cash flow through the next couple of years is unlikely to be robust as capital expenditures remain elevated. Based in Bellevue, WA, Trilogy International Partners LLC provides wireless communication services to 1.8 million subscribers in Haiti, Dominican Republic and Bolivia. TWEETER HOME: Organizational Meeting Scheduled Today ---------------------------------------------------- The U.S. Trustee for Region 3, Kelly Beaudin Stapleton, has scheduled an organizational meeting in Tweeter Home Entertainment Group Inc.'s Chapter 11 case, today, June 22, 2007, at 11:00 a.m., at the Hagley Room, The DoubleTree Hotel, 700 King Street, in Wilmington, Delaware. The sole purpose of the meeting will be to form a committee or committees of unsecured creditors in the Debtors' case. The meeting is not the meeting of creditors pursuant to Section 341 of the Bankruptcy Code. A representative of the Debtors, however, may attend the Organizational Meeting, and provide background information regarding the bankruptcy cases. Based in Canton, Mass., Tweeter Home Entertainment Group Inc. -- http://www.tweeter.com/-- retails mid-to high-end audio and video consumer electronics products. Tweeter and seven of its affiliates filed for chapter 11 Protection on June 11, 2007 (Bankr. D. Del. Case No: 07-10787 through 07-10796). Gregg M. Galardi, Esq. and Mark L. Desgrosseilliers, Esq. at Skadden, Arps, Slate, Meagher & Flom, L.L.P. represent the Debtors in their restructuring efforts. As of Dec. 21, 2006, Tweeter had total assets of $258,573,353 and total debts of $190,417,285. The Debtors' exclusive period to file a plan expires on Oct. 9, 2007. Tweeter Bankruptcy News, Issue No. 3, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). TWEETER HOME: Gets Interim Court OK to Use GECC Cash Collateral --------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware gave Tweeter Home Entertainment Group Inc. and its debtor-affiliates authority to use, on an interim basis, their prepetition lenders' cash collateral. The Court directed the Debtors to update the budget not less than on a monthly basis. The Debtors' authorization to use the Cash Collateral will terminate upon notice being provided by General Electric Capital Corporation, as administrative agent to the prepetition lenders, that an event of default has occurred and is continuing. The prepetition lenders are granted replacement liens as adequate protection for their interest in the Cash Collateral on account of the granting of liens to the DIP Lenders, the Debtors' use of Cash Collateral and other diminution in value of the Collateral. Any statutory committee appointed in the case has 60 days following appointment of the committee to commence a contested matter or adversary proceeding challenging the validity, extent, perfection or priority of the mortgage, security interests and liens of the Prepetition Agent and the Prepetition Lenders, or the validity, allowability, priority, status or size of the Debtors' prepetition debt. If no official committee of unsecured creditors is appointed, any party-in-interest may present a challenge within 75 days following the Court's entry of a final order granting the Debtors' request. The Court will convene a hearing June 26, 2007, at 4:00 p.m. to consider final approval of the Debtors' request. Objections are due on the same day. Debtors' Motion In their request, published in the Troubled Company Reporter on June 13, 2007, the Debtors told the Court that prior to their bankruptcy filing, the Debtors borrowed money under a $75,000,000 senior secured revolving credit facility with GECC. The GECC facility included up to $20,000,000 in letters of credit and a $5,000,000 swing-line loan provision. The initial drawdown under the GECC facility was $38,100,000. As of March 31, 2007, roughly $11,900,000 was available for future borrowings. The credit line is secured by a first priority lien on substantially all of the Debtors' assets. The GECC facility expires March 21, 2012. Since the end of March 2007, the Debtors have faced declining revenues and have incurred increased short-term costs associated with their restructuring efforts. As a result, the Debtors' borrowing base has decreased and GECC has imposed -- as it is permitted to do -- additional reserves. Prior to and during that same period, many of the Debtors' suppliers tightened or eliminated entirely the Debtors' credit terms, requiring the Debtors to pay "cash in advance." As a result, the Debtors had little or no availability under the prepetition credit agreement and experienced a severe liquidity crisis. To address the problem, the Debtors amended the credit facility GECC on May 30, 2007. The amendment slightly increased the Debtors' liquidity and allowed them some time to pursue various restructuring alternatives. Notwithstanding the amendment, the Debtors continued to face a severe lack of liquidity and were not able to purchase sufficient inventory on credit to restore additional availability under the prepetition GECC credit agreement, Gregory W. Hunt, Tweeter's senior vice president and chief financial officer, said. Although the Debtors have received prior to the Petition Date expressions of interest regarding various restructuring alternatives, it became apparent that those interests would not be fully developed until after the Debtors had run out of availability under the prepetition GECC loan, Mr. Hunt added. The Debtors need immediate use of GECC's collateral, including any cash collateral, to continue operating their businesses and complete a sale of substantially all of their assets or other some other restructuring alternative, Mr. Hunt told the Court. Specifically, the Debtors require the use of Cash Collateral to pay operating expenses, including payroll, and to pay vendors to ensure a continued supply of goods. GECC has consented to the Debtors' use of Cash Collateral, Mr. Hunt said. As adequate protection to GECC with respect to the diminution in the value of GECC's interest in the Collateral, the Debtors proposed to give GECC: 1) replacement liens on all of the Debtors' assets; 2) a superpriority claim status that is pari passu to the superpriority claim status applicable to the $60,000,000 postpetition credit facility to be provided by GECC; 3) adequate protection payments in the amount of interest, fees and other amounts due under the prepetition credit agreement. The Debtors' authority to use the Cash Collateral will cease on the earliest to occur of: -- January 11, 2008; -- the effective date of a plan of reorganization for any of the Debtors; -- the date of consummation of a sale of substantially all of the Debtors' assets; and -- an event of default. About Tweeter Home Based in Canton, Mass., Tweeter Home Entertainment Group Inc. -- http://www.tweeter.com/-- retails mid-to high-end audio and video consumer electronics products. Tweeter and seven of its affiliates filed for chapter 11 Protection on June 11, 2007 (Bankr. D. Del. Case No: 07-10787 through 07-10796). Gregg M. Galardi, Esq. and Mark L. Desgrosseilliers, Esq. at Skadden, Arps, Slate, Meagher & Flom, L.L.P. represent the Debtors in their restructuring efforts. As of Dec. 21, 2006, Tweeter had total assets of $258,573,353 and total debts of $190,417,285. The Debtors' exclusive period to file a plan expires on Oct. 9, 2007. Tweeter Bankruptcy News, Issue No. 3, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). TWEETER HOME: $60 Million GECC DIP Financing Gets Interim Okay -------------------------------------------------------------- Tweeter Home Entertainment Group Inc. and its debtor-affiliates obtained authority, on an interim basis, from the U.S. Bankruptcy Court for the District of Delaware to borrow up to $33,000,000 in debtor-in-possession financing from General Electric Capital Corporation, as administrative agent for the DIP lenders. The Debtors will use the loan proceeds solely for working capital and general corporate purposes, and to pay the costs of administration of the cases as well as prepetition expenses, as contemplated in a budget. As security for the Debtors' DIP Obligations, the DIP Lenders will have a valid, first priority, continuing, valid, binding, enforceable, non-avoidable, and automatically perfected postpetition security interests in and liens on all of the Debtors' assets. The DIP Liens will be senior and superior in priority to all other secured and unsecured creditors of the Debtors' estates, subject to: -- the carve-out for allowed expenses pursuant to 28 U.S.C. Section 1930(a)(6) and (b), and allowed reasonable fees and expenses of bankruptcy professionals retained in the Debtors' cases; -- prior permitted liens; and -- postpetition liens that have been approved by the Court in favor of prepetition consignors of inventory. The DIP loan will mature on the earliest of: -- January 11, 2008; -- the effective date of a plan of reorganization for the Borrowers; and -- the date a sale of all or substantially all of the Borrowers' assets is consummated. The Court will convene a hearing June 26, 2007, at 4:00 p.m. to consider final approval of the Debtors' request. Objections are due on the same day. As reported in the Troubled Company Reporter on June 13, 2007, the Debtors sought Court authority to borrow up to $60,000,000 from GECC pursuant to a debtor-in-possesion credit agreement. GECC committed to arrange a senior revolving credit facility of up to $60,000,000, including a $20,000,000 sublimit for letters of credit and a $5,000,000 sublimit for swingline loans. A full-text copy of the GECC DIP Credit Agreement is available at no charge at http://researcharchives.com/t/s?20d7 GECC is represented in the Debtors' cases by Robert A. J. Barry, Esq., at Bingham McCutchen LLP, in Boston, Massachusetts; Patrick J. Trostle, Esq., at Bingham McCutchen LLP, in Hartford, Connecticut; and Mark D. Collins, Esq., at Richards, Layton & Finger, in Wilmington, Delaware. Clarifications to Interim DIP Order At the Debtors' behest, the Court clarifies that any liens granted pursuant to the terms of the Interim DIP Order do not prime the possessory lien that Bank of America N.A. has over an account containing $250,000. The Court says the possessory lien BofA has on the security account is a Permitted Prior Lien that is superior to any liens that have been or will be granted to the DIP Agent for the benefit of the DIP Lenders. Tweeter Home and BofA are parties to a May 2006 Corporate Travel Card Agreement. BofA issued corporate travel credit cards to the Debtors' employees, allowing employees to incur business-related charges on the company's behalf. The security account at BofA was intended to secure the Debtors' obligations for charges incurred through the Travel Cards. BofA has asserted that the Debtors owed roughly $225,000 for charges on the Travel Cards as of the Petition Date. The Court also authorized the Debtors to pay BofA all amounts due under the BofA Agreement as and when obligations are due. The Debtors expressed concern that employee morale, already adversely affected by the bankruptcy filing, will further erode if the Debtors are unable to provide a mechanism for the prompt payment of expenses incurred by employees on the Debtors' behalf. About Tweeter Home Based in Canton, Mass., Tweeter Home Entertainment Group Inc. -- http://www.tweeter.com/-- retails mid-to high-end audio and video consumer electronics products. Tweeter and seven of its affiliates filed for chapter 11 Protection on June 11, 2007 (Bankr. D. Del. Case No: 07-10787 through 07-10796). Gregg M. Galardi, Esq. and Mark L. Desgrosseilliers, Esq. at Skadden, Arps, Slate, Meagher & Flom, L.L.P. represent the Debtors in their restructuring efforts. As of Dec. 21, 2006, Tweeter had total assets of $258,573,353 and total debts of $190,417,285. The Debtors' exclusive period to file a plan expires on Oct. 9, 2007. Tweeter Bankruptcy News, Issue No. 3, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). UNITED AIRLINES: Increase in Destinations Cue Hiring of Pilots -------------------------------------------------------------- United Airlines Inc. plans to begin hiring pilots later this year, the first time it has done so since 2001, to accommodate United's schedule, including an increase in the number of international destinations it serves. United plans to begin accepting applications for new flight officer positions later this summer. After participating in United's industry-leading training program, new pilots are expected to begin flying for the airline as early as December. United expects to hire and train up to 100 pilots by the end of the year depending on changes to the mandatory pilot retirement age currently being considered by Congress. The new pilots will be in addition to the pilots that United will recall this year as it completes the recall of those who have been on furlough. "This is good news for our pilots, our employees, our customers and our investors," Sean Donohue, Senior Vice President of Flight Operations and Onboard Service, said. "This enables us to ensure the highest level of service for our customers, while maintaining an efficient, flexible schedule." "We look forward to welcoming our new colleagues to United, where they will join a group of the world's most experienced, most accomplished and best trained aviators," Captain Hank Krakowski, Vice President of Flight Operations, noted. "Our new hiring process, which we have reviewed with our pilot union, and which will include interviews by United line pilots, has been developed to identify a strong, diverse group of applicants who will go through extensive training and technical preparation at the company's state-of-the-art Flight Training Center in Denver." United has developed a new online hiring process which includes an online application screening followed by in-person interviews. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. At Dec. 31, 2006, the company's balance sheet showed total assets of $25,369,000,000 and total liabilities of $23,221,000,000. * * * As reported in the Troubled Company Reporter on May 3, 2007, Fitch Ratings has affirmed the Issuer Default Ratings of UAL Corp. and its principal operating subsidiary United Airlines Inc. at B-. US FOODSERVICE: Moody's Puts Corporate Family Rating at B3 ---------------------------------------------------------- Moody's Investors Service assigned a B2 rating to US Foodservice's $1,300 million Asset Based Revolving Credit Facility, a B2 rating to the $1,565 million Senior Secured Term Loan B, a Caa2 rating to the $1,000 million Senior Unsecured Notes, and a Caa2 rating to the $550 million Senior Subordinated Notes. Moody's also assigned a corporate family rating of B3 and a Probability of Default rating of B3. The proceeds from the debt offerings, together with an equity contribution of $2.250 million (31%) from Clayton, Dubilier & Rice, Inc. and Kohlberg Kravis Roberts, will be used to acquire US Foodservice from Ahold for approximately $7.2 billion as well as providing for general corporate purposes and covering fees and expenses related to this transaction. These ratings are assigned: -- Corporate Family Rating At B3 -- $1,300 million 6 year Asset Based Revolving Credit Facility at B2, LGD3 (36.29%) -- $1,565 million 7 year Senior Secured Term Loan B at B2, LGD3 (41.01%) -- $1,000 million 8 year Senior Unsecured Notes at Caa2, LGD5 (79.26%) -- $550 million 10 year Senior Subordinated Notes at Caa2, LGD6 (93.67%) -- Probability of Default Rating at B3 The B3 corporate family rating reflects the company's weak credit metrics at the closing of this transaction. It also recognizes the relatively weaker position of US Foodservice as compared to its major competitor. The B3 rating does also reflect the company's major market position, the stability of the food distribution industry, its scale of operations, and the recent operational improvements that are evidenced by its recent upward trend in margins. The rating also reflects the heavy reliance on the achievement of margin improvements necessary to improve coverage and the length of time that it may take to achieve them. The stable outlook reflects the adequate liquidity that is provided by at least $600 million availability provided by the asset based revolving credit facility and a proposed senior secured revolving credit facility. US Foodservice, headquartered in Rosemont, Illinois, is the United States' second largest distributor of food and related products to over 250,000 customers, including restaurants, healthcare facilities, hotels, schools and governmental facilities. US FOODSERVICE: S&P Junks Rating on $1 Billion Senior Toggle Notes ------------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'B-' corporate credit rating to Columbia, Maryland-based U.S. Foodservice. In addition, Standard & Poor's assigned its 'CCC' rating to USF's proposed $1 billion senior unsecured toggle notes due 2015 and proposed $550 million of subordinated debt due 2017. The outlook is positive. "The ratings on USF reflect its highly leveraged financial profile, thin operating margins, and participation in the highly competitive U.S. foodservice distribution industry, which more than outweigh favorable industry growth trends," said Standard & Poor's credit analyst Jean Stout. Net proceeds from the company's senior unsecured and subordinated debt offerings, together with proceeds from its proposed $1.565 billion term loan, approximately $560 million of borrowings under its asset-based revolving credit facility, $600 million under its accounts receivable securitization program, $735 million under its collateralized mortgage-backed facility, and about $2.25 billion of equity, will be used to finance the acquisition of USF by Clayton, Dubilier & Rice Inc. and Kohlberg Kravis Roberts, for a transaction value of about $7.3 billion. The $1.3 billion asset-based revolving credit facility, $100 million revolving credit facility, $1.565 billion term loan, and a $500 million synthetic letter of credit facility, as well as the $700 million accounts receivable securitization program and $735 million collateralized mortgage-backed facility, are not rated. Pro forma for the transaction, USF will have approximately $5.1 billion of debt outstanding, including structured financings. USF, through its operating subsidiary U.S. FoodService Inc, is the second largest foodservice distributor in the U.S. VISTEON CORP: Construction Starts at New Missouri Assembly Plant ---------------------------------------------------------------- Visteon Corporation has begun building a manufacturing and assembly facility in Eureka, Missouri, to support new business in North America with automakers including Chrysler Group. The plant is expected to begin production in the summer of 2008 and employ about 200 people by early 2009. Visteon officially launched the project on June 20, 2007, in a ceremony at the plant site in Eureka Commercial Park, located along I-44 about 20 miles southwest of St. Louis. The event was attended by representatives of Visteon, the City of Eureka, the St. Louis County Economic Council and the St. Louis Regional Chamber and Growth Association. The Visteon plant initially will supply door panels, consoles and cockpits to Chrysler Group's St. Louis North Assembly Plant. Visteon President and Chief Operating Officer Donald J. Stebbins said the new plant supports Visteon's three-year plan to restructure, improve base operations and grow the business. "Our significant business growth requires us to add strategic manufacturing capacity, and we're pleased to be creating new jobs in Missouri," Mr. Stebbins said. "This project demonstrates the confidence our customers are placing in Visteon to meet their quality, delivery and cost requirements for vehicle systems." The new Missouri facility will use innovative manufacturing processes designed to deliver interior products for in-sequence, just-in-time installation in vehicles. Visteon's products and production processes are designed to reduce tooling costs, cycle time and scrap, while promoting recyclability. Julie Fream, vice president of Visteon's North America customer groups, commended the efforts of state, regional and local officials in helping Visteon select the site. Visteon received property tax abatements, payroll tax incentives and training grants for the new facility. "We are very appreciative of the assistance and support received from the Missouri Department of Economic Development, the St. Louis County Economic Council and the St. Louis Regional Chamber and Growth Association," Ms. Fream said. "Business growth is a key component of Visteon's improvement plan," she added. "Through the commitment of our employees and the cooperation of state and local governments, this will be a cost-competitive manufacturing operation that will effectively serve our customers, while creating opportunities for our employees and the local community." Eureka Mayor Kevin M. Coffey welcomed Visteon's decision to build in the community. "We are pleased to have a global company of Visteon's caliber choose our community for its new manufacturing plant, and we look forward to the new jobs and economic stimulus that this new facility will generate," Mr. Coffey said. "I am extremely pleased to welcome Visteon Corporation to St. Louis County," St. Louis County Executive Charlie A. Dooley said. "This commitment to our community is exciting and welcome news." Headquartered in Van Buren Township, Mich., Visteon Corp. (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic, and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The company has more than 170 facilities in 24 countries and employs around 50,000 people. At March 31, 2007, the company's balance sheet showed a stockholders' deficit of $106 million, compared to a deficit of $188 million at Dec. 31, 2006. * * * As reported in the Troubled Company Reporter on April 10, 2007, Fitch Ratings has taken these actions regarding the ratings of Visteon Corp.: Issuer Default Rating affirmed 'CCC'; Senior Secured Bank Facility affirmed 'B/RR1'; and Senior unsecured downgraded to 'CC/RR6' from 'CCC-/RR5'. VISTEON CORP: To Close Bedford Plant; 685 Jobs Slashed ------------------------------------------------------ Visteon Corp. plans to close its plant in Bedford, Indiana on April 2008, slashing 685 jobs in the process, according to various reports. Reports say that the move is part of the company's three-year restructuring plan that will cease making auto parts and assembling fuel-delivery modules, but instead concentrate on producing auto interiors, climate controls and electronics. The plant is among the 30 plants Visteon plans to shutter, fix or sell through 2009, Visteon spokesman Jim Fisher relates. Severance payment discussions between Visteon and union representatives are anticipated to be soon, various sources reports. In September 2007, Visteon will seal up its auto-parts plant in Connersville, Indiana, consequently, displacing 890 employees. As reported in the Troubled Company Reporter on Nov. 6, 2006, Visteon expected that the restructuring will generate up to $75 million of annual savings when completed. The company continues to evaluate alternatives and solutions for the remaining facilities, including divestitures, that yield acceptable returns to the company. Based in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic, and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. The company has more than 170 facilities in 24 countries and employs around 50,000 people. At March 31, 2007, the company's balance sheet showed a stockholders' deficit of $106 million, compared to a deficit of $188 million at Dec. 31, 2006. * * * As reported in the Troubled Company Reporter on April 10, 2007, Fitch Ratings has taken these actions regarding the ratings of Visteon Corp.: Issuer Default Rating affirmed 'CCC'; Senior Secured Bank Facility affirmed 'B/RR1'; and Senior unsecured downgraded to 'CC/RR6' from 'CCC-/RR5'. WATER PIK: S&P Affirms Ratings on $112 Million Secured Financing ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its loan and recovery ratings on Water Pik Inc.'s $112 million secured financing. The first-lien facilities comprise a $15 million revolver and a $62 million term loan B. This first-lien debt is rated 'B' with a recovery rating of '2', indicating the expectation of substantial (70%-90%) recovery in the event of a payment default. Water Pik's $35 million second-lien term loan is rated 'CCC' with a recovery rating of '6', indicating the expectation of negligible (0%-10%) recovery in the event of a payment default. Ratings List Water Pik Inc. Corporate Credit Rating B-/Negative/-- Senior Secured First-Lien Facility B (Recovery Rating: 2) Second-Lien Facility CCC (Recovery Rating: 6) * KPMG LLP Considered Bankruptcy Filing in 2005, Lawyer Says ------------------------------------------------------------ KPMG LLP sought advice from bankruptcy lawyers as it pleaded with federal officials in 2005 not to indict it for selling fraudulent tax shelters, Bloomberg said on its Web site Tuesday citing newly released internal documents. According to Bloomberg, the plan did not push through because KPMG settled with the government in August 2005, agreeing to pay a record $456 million fine, give up part of its tax practice and accept a three-year period of outside supervision. Prior to the settlement, KPMG had a meeting on June 13, 2005, with, among others, James Comey, the Deputy U.S. Attorney General assigned to KPMG's case. In that meeting, KPMG's attorney, Robert S. Bennett, Esq. at Skadden, Arps, Slate, Meagher & Flom LLP, said that KPMG acknowledged that a number of partners, including high-level ones, "did engage in a conspiracy to evade taxes." In his statement, Mr. Bennett asked the United States Department of Justice to exercise its prosecutorial discretion in a manner that would allow the firm to survive. Having "its partners and its reputation for integrity" as its only assets, the firm could not survive the filing of criminal charges, Mr. Bennett emphasized. Mr. Bennett went on to say that one of the consequences of filing criminal charges against KPMG is the disruption of national economy, arguing that the global investment community depends upon financial statements that are carefully audited and filed on time. Furthermore, Mr. Bennett confirmed that KPMG had "consulted bankruptcy counsel." He also noted that KPMG faced claims for "billions by the plaintiffs' bar" for its role in the shelters. KPMG LLP -- http://www.kpmg.com/-- is a global network of professional firms providing audit, tax, and advisory services. The company operates in 148 countries and have more than 113,000 professionals working in member firms around the world. * Palisades Capital Names John L. Spencer as Managing Director -------------------------------------------------------------- John L. Spencer, Esq. has joined Palisades Capital Advisors, LLC as a Managing Director. In this role, Mr. Spencer will be primarily responsible for the firm's restructuring advisory and pension liability risk management services, working with plan sponsors, investment banking and restructuring firms, creditor groups, hedge funds and private equity firms. Mr. Spencer served as Director of the Pension Benefit Guaranty Corporation's Department of Insurance Supervision and Compliance and head of the corporate finance and negotiations group from 2004-2007, where he was responsible for all aspects of the PBGC's corporate finance and restructuring operations, including bankruptcy and claims trading. "I am delighted to welcome John to Palisades," said Bradley D. Belt, Chairman of Palisades. "He has been at the epicenter of many of the largest and most complex bankruptcies and corporate restructurings over the past several years. We look forward to leveraging John's deep knowledge and wealth of experience in pension administration, strategic planning, corporate finance, restructuring and bankruptcy to benefit the firm's clients." Mr. Spencer said, "Today's pension sponsors face mounting liabilities, ever-increasing competition from companies with lower labor costs, and challenging risk management needs. I am excited to have this opportunity, and I look forward to working with Palisades to bring innovative solutions and valuable experience as we assist clients in navigating the changing regulatory and financial landscape for pensions and other legacy liabilities." John L. Spencer has over 15 years of experience in pension administration, strategic planning, corporate finance, restructuring and bankruptcy. At the PBGC, Mr. Spencer was responsible for negotiating several large and complex settlements including United Airlines, Tower Automotive, Delta Airlines, Delphi Corporation and Kaiser Aluminum, as well as the sales by GM of GMAC and DaimlerChrysler of Chrysler. He worked directly with senior corporate executives, investment bankers, counsel and creditors in structuring and negotiating these settlements. During Mr. Spencer's tenure, the Corporation substantially upgraded its capability to monitor its insurance risks, minimize its loss exposure to corporate pension defaults, and dramatically enhance its recoveries on unsecured bankruptcy claims. Mr. Spencer received his B.A. in Economics from the University of Maryland. About Palisades Capital Based in New York City, Palisades Capital Advisors, LLC -- http://www.palisadescapadv.com/-- is a privately held advisory and investment firm. The firm provides pension risk management and restructuring advisory services to corporate and public sponsors, beneficiaries, and financial intermediaries. The firm also develops, structures and invests in innovative products and solutions that address market needs arising from structural changes in pension and insurance markets. * BOOK REVIEW: American Commercial Banking: A History ----------------------------------------------------- Author: Benjamin J. Klebaner Publisher: Beard Books Paperback: 296 pages List Price: $34.95 Order your personal copy at http://www.amazon.com/exec/obidos/ASIN/1587981424/internetbankrupt This book American Commercial Banking: A History is written by Benjamin J. Klebaner. This informative and fascinating book traces the history of commercial banking from its inception to 1988. The authoritative historical perspective provides a greater understanding of more recent times and of the many policy issues that have arisen through the years. In addition to being a remarkable piece of scholarship, it is a very readable book. It should be on the "must read" list of all students of finance and history, as well as others who are curious as to the role banks have played in our society. ********* 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 ***