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/raid1/www/Hosts/bankrupt/TCR_Public/070625.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, June 25, 2007, Vol. 11, No. 148 Headlines 1031 TAX GROUP: In Talks w/ Lender to Obtain Distribution Funds ADELPHIA COMMS: Claims Objection Deadline Extended to September 13 ADELPHIA COMMS: Wants Affiliates' Chapter 11 Cases Closed AMERICAN AIRLINES: Lloyd Hill Voted as New Pilots' Union President AMERICAN TECH: Posts $1.3 Mil. Net Loss in Quarter Ended April 30 ARMOR HOLDINGS: CFIUS Gives Nod on BAE Systems Merger BCE INC: In Talks with TELUS on Possible Business Merger BORDA PRODUCTS: Case Summary & 20 Largest Unsecured Creditors CARDTRONICS INC: Moody's Lowers Corporate Family Rating to B3 CATALYST PAPER: Moody's Rates New $200 Million Senior Notes at B2 CDC MORTGAGE: Poor Performance Cues S&P to Lower Ratings CHURCH & DWIGHT: Strong Performance Prompts S&P's Positive Outlook CLEARANT INC: Posts $967,000 Net Loss in Quarter Ended March 31 COATES INT'L: March 31 Balance Sheet Upside-Down by $3.1 Million COLE-TECH INC: Case Summary & 19 Largest Unsecured Creditors COLLINS & AIKMAN: Workers Balk at Lack of Response on Shutdown COLLINS & AIKMAN: Wants Court Nod on Sale of Three U.S. Facilities DAIMLERCHRYSLER: Truck Group Inks Supply Pact with Fiat Powertrain DAYTON SUPERIOR: Plans to Refinance Two Existing Senior Notes EQUIFIRST MORTGAGE: Fitch Holds Low-B Ratings on Six Issues EQUITY INNS: Whitehall Street Deal Cues Moody's to Review Ratings FREMONT HOME: S&P Lowers Ratings on Nine Certificate Classes GENCORP INC: Inks Amended & Restated $280 Million Credit Facility GREENPARK GROUP: Court Okays Kohut as Special Litigation Counsel GSAMP TRUST: S&P Puts Default Ratings on Two Certificate Classes HARLAN SPRAGUE: S&P Rates Proposed $360 Mil. Sr. Facilities at BB HEXCEL CORP: Inks Deal with JPS Industries for Carolina Assets HYDROCHEM INDUSTRIAL: Moody's Affirms B2 Corporate Family Rating IPSCO INC: Commences Cash Tender Offer for 8-3/4% Senior Notes JOHN SNYDER: Case Summary & Four Largest Unsecured Creditors LAND O'LAKES: Moody's Ups Corporate Family Rating from Ba3 to Ba2 LEHMAN BROTHERS: Moody's Rates Class K Certificates at Ba2 MASSEY ENERGY: Completed Review Prompts S&P's Stable Outlook MGM MIRAGE: Tracinda Cancels Plan to Buy Bellagio & CityCenter MGM MIRAGE: Inks Pact with Kerzner to Develop Las Vegas Resort MGM MIRAGE: Moody's Affirms Corporate Family Rating at Ba2 MGM MIRAGE: S&P Affirms Ratings and Removes Negative CreditWatch NEW CENTURY: Selects Ernst & Young as Tax Advisor NEWPAGE CORP: S&P Affirms Ratings and Says Outlook is Stable NORWOOD PROMOTIONAL: High Leverage Prompts S&P's B- Credit Rating NOVELIS INC: S&P Rates $860 Million Secured Term Loan at BB NUANCE COMMS: $225 Mil. Loan Increase Cues S&P to Affirm Ratings OAK HILL: S&P Affirms BB- Ratings on Class D-1 and D-2 Notes PAETEC HOLDING: Moody's Junks Rating on Proposed $300MM Sr. Notes PARMALAT: Judge Drain Grants Permanent Injunction vs. Creditors PATIENT PORTAL: Posts Net Loss of $106,360 in Qtr. Ended March 31 PIER 1: Posts $56.3 Million Net Loss in Quarter Ended June 2 PT HOLDINGS: Files Plan of Reorganization & Disclosure Statement RADIOSHACK CORP: Fitch Downgrades Issuer Default Rating to BB REXAIR LLC: Weak Operating Trends Cue S&P's Negative Outlook RITCHIE (IRELAND): Files for Bankruptcy Protection in New York RITCHIE (IRELAND): Case Summary & 10 Largest Unsecured Creditors SELBYVILLE BAY: Court Approves DLA Piper as Bankruptcy Counsel SELBYVILLE BAY: Court Approves Stevens & Lee as Co-Counsel SIERRA PACIFIC: Two Affiliates Price Separate Tender Offers SOLOMON DWEK: Case Summary & 130 Largest Unsecured Creditors STANDARD DRILLING: Posts $1.7 Mil. Net Loss in Qtr. Ended March 31 STEWART ENT: Moody's Affirms Corporate Family Rating at Ba3 STEWART ENTERPRISES: S&P Rates Proposed $250 Million Notes at BB- TELEPHONE & DATA: S&P Affirms BB+ Rating and Removes Watch TLC VISION: S&P Lowers Bank Loan Rating to B+ from BB- TRIUMPH HEALTHCARE: S&P Affirms B Corporate Credit Rating TWEETER HOME: Seeks Court Approval for July 10 Auction TWEETER HOME: Wants to Continue Selling Consigned Inventory TWEETER HOME: Selects Skadden Arps as Bankruptcy Counsel VALENTEC SYSTEMS: March 31 Balance Sheet Upside-Down by $4.3 Mil. VALLEY HEALTH: Operating Losses Prompt S&P to Lower Rating to B- VASOMEDICAL INC: Inks Business Alliance with Living Data WHOLE FOODS: To Sell 35 Stores Upon Closing of Wild Oats Merger WINN'S HAULING: Case Summary & 20 Largest Unsecured Creditors YUKOS OIL: PwC Withdraws Audit Opinions for 1994-2004 Financials * Bingham McCutchen to Combine with New Tokyo International * Recovery Group and CRP to Merge as CRG Partners * PwC Withdraws Audit Opinions for Yukos' 1994-2004 Financials * BOND PRICING: For the week of June 18 - June 22, 2007 ********* 1031 TAX GROUP: In Talks w/ Lender to Obtain Distribution Funds --------------------------------------------------------------- Edward H. Okun, the former chief executive officer of The 1031 Tax Group LLC, and the Official Committee of Unsecured Creditors are negotiating with an identified lender to fund a distribution to pay creditors, Bill Rochelle of Bloomberg News reports. The report says the amount of the contemplated loan was not disclosed and whether creditors would be paid in full is yet to be confirmed. Last week, Bloomberg reported that the Debtor received an offer from Stillwater Capital Partners to purchase all of the properties of the Debtor's affiliates for a price allowing payment in full to creditors owed $151 million. Full purchase offer for the assets was not disclosed, the source said. 1031 Tax Group and 16 of its affiliates filed for Chapter 11 protection citing liquidity issues including the actions taken by several financial institutions in blocking access to the company's funds. The Debtors estimated on a balance sheet basis that their assets exceed their obligations to customers and others. Prior to the filing, the owner of Mr. Okun, personally signed a guaranty for repayment of notes owed to the Debtors by entities controlled by him. Mr. Okun has agreed in principal to collateralize his personal guarantee with a collateral package in order to facilitate repayment of creditors' claims. The Debtors anticipate that the proposed collateral package will be agreed to and documented within a short period of time. Headquartered in Richmond, Virginia, The 1031 Tax Group LLC -- http://www.ixg1031.com/-- is a privately held consolidated group of qualified intermediaries created to service real property exchanges under Section 1031 of the Internal Revenue Code. The company and 15 of its affiliates filed for Chapter 11 protection on May 14, 2007 (Bankr. S.D.N.Y. Case No. 07-11447 through 07-11462). Norman N. Kinel, Esq., at Dreier, LLP, represents the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of over $100 million. ADELPHIA COMMS: Claims Objection Deadline Extended to September 13 ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of New York to extended, until Sept. 13, 2007, the time by which the Quest Turnaround Advisors, LLC may object to the Reorganized Adelphia Communications Corporation and its debtor-affiliates' prepetition and administrative claims. As of April 30, 2007, approximately 19,900 proofs of claim asserting approximately $3,980,000,000,000 in claims had been filed against the Reorganized Debtors, Shelley C. Chapman, Esq., at Willkie Farr & Gallagher LLP, in New York, informed the Court. The Reorganized Debtors have filed 17 omnibus objections that address $3,960,000,000,000 of filed claims, Ms. Chapman related. As a result, approximately $2,900,000,000,000 of filed claims against the Debtors and the JV Debtors have been resolved. The Reorganized Debtors believe that fewer than 285 claims totaling approximately $276,000,000 have not yet been expunged, withdrawn, adjourned or allowed by the Court. Notwithstanding the brisk pace of the claims process to date, additional work on claims resolution remains to be done, Ms. Chapman averred. An extension, she explained, will permit the Plan Administrator and the Reorganized Debtors to evaluate the remaining claims to ensure that all non-meritorious claims have been included in the Claims Objections, or can be included as necessary in forthcoming claims objections. Specifically, an extension will enable the Plan Administrator and the Reorganized Debtors to: (1) evaluate the recently-filed Administrative Claims and file objections to those claims as necessary; (2) review, reconcile, and file additional claims objections, as necessary, to all remaining proofs of claim asserted against the Reorganized Debtors; and (3) ensure that there has been no oversight or omission in the claims review process and that all non-meritorious claims filed against the Reorganized Debtors have been or will be included on a Claims Objection prior to the Claims Objection Deadline. The extension is not sought for purposes of delay and will not prejudice any claimants or other parties in interest, Ms. Chapman assured the Court. Bank of Montreal, in its capacity as the Olympus Administrative Agent, had objected to the Reorganized ACOM Debtors' request to the extent that it enables the Debtors to assert any objections to the Olympus Bank Claims outside of: (1) the Bank Lender Avoidance Complaint as defined under the First Modified Fifth Amended Joint Plan of Reorganization for Adelphia Communications Corporation and certain of its affiliated Debtors; (2) the terms of the Fifth Amended Plan; or (3) the withdrawal of the reference with respect to the Complaint. The Bank pointed out that the Debtors' request is drafted broadly. Neither the Fifth Amended Plan nor the Motion contains a definition of a "Claims Objection". Moreover, the Bank said it is unclear if that term includes the Complaint. About Adelphia Comms Based in Coudersport, Pennsylvania, Adelphia Communications Corporation (OTC: ADELQ) -- http://www.adelphia.com/-- is a cable television company. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, Internet access and other advanced services over its broadband networks. The company and its more than 200 affiliates filed for Chapter 11 protection in the Southern District of New York on June 25, 2002. Those cases are jointly administered under case number 02-41729. Willkie Farr & Gallagher represents the Debtors in their restructuring efforts. PricewaterhouseCoopers serves as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP represent the Official Committee of Unsecured Creditors. Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates, collectively known as Rigas Manged Entities, are entities that were previously held or controlled by members of the Rigas family. In March 2006, the rights and titles to these entities were transferred to certain subsidiaries of Adelphia Cablevision LLC. The RME Debtors filed for chapter 11 protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642). Their cases are jointly administered under Adelphia Communications and its debtor-affiliates' chapter 11 cases. (Adelphia Bankruptcy News, Issue No. 170 & 171; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). The Court confirmed the Debtors' First Modified Fifth Amended Joint Chapter 11 Plan of Reorganization on Feb. 13, 2007. ADELPHIA COMMS: Wants Affiliates' Chapter 11 Cases Closed --------------------------------------------------------- The Reorganized Adelphia Communications Corporation and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York to close the Chapter 11 cases of more than a hundred affiliates pursuant to Sections 350 and 105(a) of the Bankruptcy Code and Rule 3022 of the Federal Rules of Bankruptcy Procedure. The Cases to be Closed, Shelley C. Chapman, Esq., at Willkie Farr & Gallagher LLP, in New York, relates, are primarily comprised of each of the ACOM Debtors' cases that have been merged with and into Adelphia Consolidation, LLC, a wholly owned non-debtor subsidiary of Adelphia Communications Corporation. It is no longer necessary, she avers, to keep the Cases open pending the resolution of all matters in the ACOM Debtors' jointly administered cases. The closing of the Cases will enable the Plan Administrator under the ACOM Debtors' First Modified Fifth Amended Joint Plan of Reorganization to more efficiently administer the provisions and requirements of the Plan, Ms. Chapman states. It will also enable the ACOM Debtors to stop incurring quarterly U.S. Trustee fees for the Cases to be Closed, she adds. Ms. Chapman assures the Court that the ACOM Debtors' request will not prejudice a claimant's rights to receive distributions under the Plan to the extent that that claimant's claim is ultimately allowed, nor will it alter or modify the terms of the Plan. Lead Debtor Adelphia Communication's Chapter 11 case will remain open until the Plan is fully administered and a final decree is entered closing the Case, Ms. Chapman clarifies. The Debtors further ask the Court to, upon proper notice to and subject to objections filed by parties-in-interest: (a) close the cases of other Debtors in accordance with the Plan Administrator's determination; and (b) reopen, at any time prior to the closing of the Lead Case, any of the cases that have been closed. A list of the Cases to be closed is available for free at: http://researcharchives.com/t/s?211e About Adelphia Comms Based in Coudersport, Pennsylvania, Adelphia Communications Corporation (OTC: ADELQ) -- http://www.adelphia.com/-- is a cable television company. Adelphia serves customers in 30 states and Puerto Rico, and offers analog and digital video services, Internet access and other advanced services over its broadband networks. The company and its more than 200 affiliates filed for Chapter 11 protection in the Southern District of New York on June 25, 2002. Those cases are jointly administered under case number 02-41729. Willkie Farr & Gallagher represents the Debtors in their restructuring efforts. PricewaterhouseCoopers serves as the Debtors' financial advisor. Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin, Bogdanoff & Stern LLP represent the Official Committee of Unsecured Creditors. Adelphia Cablevision Associates of Radnor, L.P., and 20 of its affiliates, collectively known as Rigas Manged Entities, are entities that were previously held or controlled by members of the Rigas family. In March 2006, the rights and titles to these entities were transferred to certain subsidiaries of Adelphia Cablevision LLC. The RME Debtors filed for chapter 11 protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622 through 06-10642). Their cases are jointly administered under Adelphia Communications and its debtor-affiliates' chapter 11 cases. (Adelphia Bankruptcy News, Issue No. 170 & 171; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). The Court confirmed the Debtors' First Modified Fifth Amended Joint Chapter 11 Plan of Reorganization on Feb. 13, 2007. AMERICAN AIRLINES: Lloyd Hill Voted as New Pilots' Union President ------------------------------------------------------------------ Pilots of American Airlines Inc. voted out Allied Pilots Association incumbent president Ralph Hunter in a recent election, according to various reports. The pilots were disappointed over the union's proposed 30.5% wage increase for next year. Miami-based pilot and challenger Lloyd Hill, who received 2,393 more votes than his opponent, said that the 30.5% increase "is not nearly enough." Sources say that starting July 1, Mr. Hill and two other top officials, Tom Westbrook and Bill Haug, will seek for a higher pay increase for next year. According to various reports, Mr. Hunter and other union leaders were charged to be too friendly with the management, urging the employees to help the company boost productivity with little pay. Yet, when the airline recovered, it gave stock bonuses for top executives and other key employees in April 2006, approaching $100 million in value, and in April 2007, worth more than $160 million. Dallas-based pilot Tom Westbrook defeated Vice President Sam Bertling by an even larger margin, and San Francisco-based pilot Bill Haug defeated incumbent Secretary-Treasurer Jim Eaton, the papers recount. About American Airlines Inc. Based in Fort Worth, Texas, American Airlines Inc., a wholly owned subsidiary of AMR Corp., operates the largest scheduled passenger airline in the world with service throughout North America, the Caribbean, Latin America, Europe and Asia. * * * As reported in the Troubled Company Reporter on May 25, 2007, Standard & Poor's Ratings Services assigned its 'CCC+' rating to American Airlines Inc.'s (B/Positive/--) $125 million Dallas/Fort Worth International Airport special facility revenue refunding bonds, series 2007, due 2030. The bonds are guaranteed by American's parent, AMR Corp. (B/Positive/B-2), and are secured by payments made by American to the airport authority. Proceeds are being used to refund the outstanding revenue bonds, series 1992 (rated 'CCC+'), whose rating is withdrawn. AMERICAN TECH: Posts $1.3 Mil. Net Loss in Quarter Ended April 30 ----------------------------------------------------------------- American Technologies Group Inc. reported a net loss of $1,311,366 on net sales of $8,792,899 for the third quarter ended April 30, 2007, compared with a net loss of $1,045,447 on net sales of $6,430,604 for the same period ended April 30, 2006. Revenues for the quarter ended April 30, 2007, resulted from operations of North Texas Steel and Whitco Poles. A primary reason for the increase in revenue was the inclusion of Whitco's revenue in the 2007 quarter as well as improved market conditions. Whitco was not acquired until April 25, 2006. The cost of sales for the quarter ended April 30, 2007, increased to approximately $7,833,000 from approximately $5,611,000 in 2006. The increase in net loss was primarily due to the $392,000 increase in selling, general and administrative expenses. This increase was primarily from increased expenses associated with the acquisition and operation of Whitco and professional fees associated with the company's 2006 audit and SEC filings. At April 30, 2007, the company's consolidated balance sheet showed $19,748,387 in total assets, $19,653,074 in total liabilities, and $95,313 in total stockholders' equity. The company's consolidated balance sheet also showed strained liquidity with $13,802,113 in total current assets available to pay $14,422,726 in total current liabilities. 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?2119 Going Concern Doubt Russell Bedford Stefanou Mirchandani LLP, in New York, expressed substantial doubt about American Technologies Group Inc.'s ability to continue as a going concern after auditing the company's financial statements for the fiscal year ended July 31, 2006. The auditor pointed to the company's recurring losses and difficulty in generating sufficient cash flow to meet its obligations and sustain its operations. About American Technologies American Technologies Group Inc. (NASDAQ: ATEG) -- had been a shell company with no significant operations before moving into the steel products industry in 2005. The company had been seeking markets for its catalyst technology in the automotive aftermarket and water purification industries and its vacuum distiller technology for consumer applications. American Technologies Group expanded in September 2005 by buying North Texas Steel, a fabricator of structural steel components for commercial, institutional, and civil construction projects. In 2006 the company bought Whitco Company, a maker of steel and aluminum light poles. Company chairman Gary Fromm controls a 45% stake in American Technologies Group. ARMOR HOLDINGS: CFIUS Gives Nod on BAE Systems Merger ----------------------------------------------------- The United States Department of the Treasury, on June 21, 2007, notified Armor Holdings, Inc., that the Committee on Foreign Investment in the United States completed its review of the proposed merger of Jaguar Acquisition Sub, Inc., and a wholly owned subsidiary of BAE Systems, Inc., with and into Armor pursuant to an Agreement and Plan of Merger among Armor, BAE Systems and Merger Sub, dated as of May 7, 2007. CFIUS determined that there were no issues of national security to warrant an investigation under the Exon-Florio Amendment that provides authority to the U.S. President to suspend or prohibit any foreign acquisition, merger or takeover of a U.S. corporation that is determined to threaten the national security of the United States. Therefore, CFIUS concluded action under the Exon-Florio Amendment with respect to the merger. Completion of this CFIUS review was one of the conditions to the consummation of the merger contained in the Merger Agreement. The merger continues to be subject to, among other conditions, the approval of the stockholders of Armor and compliance with The Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. On June 18, 2007, with Armor's consent, BAE Systems voluntarily withdrew its HSR filing and refiled in order to extend the initial HSR review period. Armor expects the merger to close during the third quarter of 2007. Headquartered in Jacksonville, Florida, Armor Holdings, Inc. (NYSE: AH)-- http://www.armorholdings.com/-- manufactures and distributes security products and vehicle armor systems for the law enforcement, military, homeland security, and commercial markets. * * * Armor Holdings, Inc.'s 8-1/4% Senior Subordinated Notes due 2013 carry Moody's Investors Service's B1 rating and Standard & Poor's B+ rating. BCE INC: In Talks with TELUS on Possible Business Merger -------------------------------------------------------- The Strategic Oversight Committee of the Board of Directors of BCE Inc. disclosed that TELUS Corporation has entered into discussions to explore the possibility of a business combination with BCE. TELUS confirmed it has entered into a mutual non-disclosure and standstill agreement and is pursuing non-exclusive discussions with BCE about a possible business combination as part of the strategic review process announced by BCE on April 17, 2007. "TELUS believes the combination of the two businesses would represent a compelling strategic and financial opportunity for all BCE and TELUS stakeholders," Darren Entwistle, President and CEO of TELUS, said. "It would be an all Canadian solution for both immediate and long-term value creation, whilst ensuring a vibrant player continues in this increasingly competitive industry. TELUS has a unique opportunity to create a truly national Canadian enterprise with the requisite balance sheet strength as well as scale and scope to continue TELUS' development as a global leader in the deployment of state of the art technology and innovative new services for customers." A combined TELUS/BCE could: * Create a combined organization poised for improved growth and returns through the realization of significant operating synergies to the ongoing benefit of TELUS and BCE investors; * Retain investment grade credit ratings thereby retaining financial strength to invest in long-term growth with the associated public benefits related to innovation and productivity; * Preserve and enhance a public Canadian investment vehicle for ordinary Canadians and institutional investors; * Ensure access to leading edge technology, services and devices for the benefit of Canadian consumers and the competitiveness of businesses; * Allow current BCE shareholders to participate in ongoing value creation on a largely tax deferred rollover basis which would be attractive to the many BCE shareholders with a low tax cost basis; * Preserve an income tax base for Canadian governments that would otherwise be eliminated by highly levered private equity structures with non-taxable equity holders and U.S. sourced debt; * Be the most likely strategic alternative to preserve long- term Canadian control if foreign ownership restrictions are removed; * Establish a truly national telecommunications company, similar to other G8, European and Commonwealth countries (e.g. British Telecom, France Telecom, Deutsche Telekom, NTT, Telecom Italia) in an industry critical to national Sovereignty; * Foster the continued evolution of security, health, and educational infrastructure of Canada. BCE had reported its intention to review all strategic alternatives with a view to further enhance shareholder value. The review is currently expected to be completed in the third quarter of 2007. Given the accelerated process that BCE has adopted, among other things, there is no assurance that TELUS and BCE will continue discussions or enter into any agreement to proceed with any transaction. About TELUS TELUS Corp. (TSX: T, T.A; NYSE: TU) is a telecommunications company in Canada, which provides a range of communications products and services including data, Internet protocol, voice, entertainment and video. About BCE Inc. Headquartered in Montreal, Canada, Bell Canada International Inc. (TSX, NYSE: BCE) (NEX:BI.H) -- http://www.bci.ca/-- provides a suite of communication services to residential and business customers in Canada. Under the Bell brand, the company's services include local, long distance and wireless phone services, high- speed and wireless Internet access, IP-broadband services, information and communications technology services and direct-to- home satellite and VDSL television services. Other BCE businesses include Canada's premier media company, Bell Globemedia, and Telesat Canada, a pioneer and world leader in satellite operations and systems management. The company is operating under a Plan of Arrangement approved by the Ontario Superior Court of Justice, pursuant to which BCI intends to monetize its assets in an orderly fashion and resolve outstanding claims against it in an expeditious manner with the ultimate objective of distributing the net proceeds to its shareholders and dissolving the company. BORDA PRODUCTS: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Borda Products, Inc. 80 Bruckner Boulevard Bronx, NY 10454 Bankruptcy Case No.: 07-11908 Type of business: The Debtor distributes medical and surgical supplies, food service equipment and housekeeping supplies. See http://www.bordaproducts.com/ Chapter 11 Petition Date: June 20, 2007 Court: Southern District of New York (Manhattan) Judge: Robert D. Drain Debtor's Counsel: Marilyn Simon, Esq. 110 East 59th Street, 23rd Floor New York, NY 10022 Tel: (212) 759-7909 Fax: (212) 759-7690 Debtor's financial condition as of June 20, 2007: Estimated Assets: $7,937,907 Estimated Debts: $7,996,203 Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Dart Container Corp. $266,383 432 Hogsback Road, Cust 265 Mason, MI 48854-9599 Sabee Products, Inc. $244,019 18743 West Reeve Street Appleton, WI 54914 Georgia-Pacific Corp. $147,867 133 Peachtree Street, N.E. Attention: Chris Gilmartin Atlanta, GA 30348 Medegen Medical Pdts. $141,122 Dinex International, Inc. $123,855 Ruskin Moscou Faltischek, $82,827 P.C. Solo Cup Operating Corp. $78,015 Mendon Truck Leasing & $59,323 Rental Schneider National, Inc. $51,596 S.C.A. Tissue North $51,590 America, L.L.C. Max Packaging Co. $50,093 Dynarex Corp. $47,931 Lagasse, Inc. $46,023 Paperpak $45,286 Gen Pak Corp. $42,241 W.N.A. Cornet East $35,636 Dispoz-O Products $29,035 Chicopee, Inc. $25,283 Beta Plastics Corp. $23,788 Hygrade/L.D.F. Industries, Inc. $22,088 CARDTRONICS INC: Moody's Lowers Corporate Family Rating to B3 ------------------------------------------------------------- Moody's Investors Service downgraded corporate family rating of Cardtronics, Inc. to B3 from B2. The rating outlook is stable. This rating downgrade incorporates the $135 million debt-funded acquisition of the assets of financial services business of 7- Eleven. The downgrade to B3 rating reflects Cardtronics' high debt leverage, low interest coverage, negative free cash flow due to very high capital expenditures, moderate customer concentration, very modest asset coverage due to a low proportion of fixed assets and a high level of intangible assets and goodwill, company's relatively high acquisition appetite and slightly higher merchant attrition rate in the merchant-owned accounts. However, the rating also reflects Cardtronics leading position in the growing ATM industry, stability provided by recurring revenues from long term service contracts, favorable credit profile of large national, retail and convenience store clients, and strong service delivery performance as measured by system availability in excess of 98%, which supports high client retention in the company-owned accounts. The increased diversity of Cardtronics' revenue base due to its operations in UK and Mexico is a further supporting factor for the ratings. These ratings are affected: -- Corporate family rating to B3 from B2 -- Probability of default rating to B3 from B2 -- $200 million subordinated debt rating to Caa1, LGD4, 67% from B3, LGD5, 72% The rating outlook is stable. There could be upward pressure on the ratings should the company experience sustained organic revenue growth, contained capital spending, such that debt leverage as measured by debt to EBITDA less capital expenditures falls below 8.0 times and EBITDA less capital expenditures interest coverage is greater than 1.0x. Conversely, a significant increase in debt financed acquisition spending, weakening cash flow relative to debt service coverage and increasing capital spending needs could result in negative ratings pressure. Headquartered in Houston, Texas, Cardtronics, Inc is a leading ATM operator. CATALYST PAPER: Moody's Rates New $200 Million Senior Notes at B2 ----------------------------------------------------------------- Moody's Investors Service assigned a B2 rating to Catalyst Paper Corporation's new $200 million senior unsecured notes. At the same time, the B1 corporate family rating, the B2 ratings on the existing senior unsecured notes, and the Ba1 rating on the bank credit facility were affirmed. The outlook was changed to negative. The new notes are senior unsecured obligations of Catalyst, and will rank pari passu with the company's existing US$400 million (8.625% due 2011) and US$250 million (7.375% due 2014) notes and will be issued under similar terms and conditions. The company intends to use the proceeds for general corporate purposes including financing for future acquisitions. Due to increasing consolidation in the paper industry, Catalyst intends to position itself with liquidity should any strategic assets become available. Absent any acquisition, the company may apply the proceeds to partially call the $400 million (8.625% due 2011) notes. The new debt issue increases Catalyst's adjusted debt by approximately 20%. The increased debt level, in combination with rising fiber costs, weakening paper prices and the appreciation of the Canadian dollar, causes concern that the company's credit metrics will be challenged in 2007. Consequently, the company's B1 corporate family rating is weakly positioned in the context of current expectations and the rating outlook was changed to negative. Moody's will continue to monitor the company's performance and will adjust the ratings accordingly should financial results begin to deteriorate from expected levels. Rating Issued: -- $200 million Senior Unsecured Notes due 2017: B2 (LGD4, 64%) Ratings Affirmed: Catalyst Paper Corporation: -- Corporate family rating: B1 -- Probability-of-default: B1 -- Senior Unsecured Notes: B2 (LGD 4, 64%) Catalyst Paper Finance Limited: -- Backed Senior Secured Bank Credit Facility (Dom Curr): Ba1 (LGD1, 10%) Outlook changed: to Negative from Stable Headquartered in Vancouver, British Columbia, Catalyst is the fourth largest North American-based newsprint and uncoated groundwood specialty paper manufacturer as measured by production capacity. Catalyst is the largest producer of mechanical coated and uncoated specialty papers and newsprint, and the only producer of lightweight coated paper, on the west coast of North America. The company also produces market pulp and kraft paper and operates the largest paper recycling operation in Western Canada. CDC MORTGAGE: Poor Performance Cues S&P to Lower Ratings -------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on the class B-3 and B-4 mortgage pass-through certificates from CDC Mortgage Capital Trust 2004-HE2 and placed them on CreditWatch with negative implications. Concurrently, S&P affirmed its ratings on the remaining five classes from the same transaction. The lowered ratings and CreditWatch placements reflect the deteriorating performance of the collateral pool. Credit support for this transaction is derived from a combination of subordination, excess interest, and overcollateralization. After this deal stepped down in October 2006, the O/C target was reduced to 0.50% of the original pool balance; moreover, realized losses have consistently outpaced excess spread and have further eroded O/C to the extent that credit support for these classes is no longer sufficient to support the prior ratings. As of the May 2007 remittance period, O/C for the pool backing series 2004-HE2 had been reduced to $2.36 million, or 0.36% of the original pool balance. Cumulative realized losses reached $5.49 million, or 0.83% of the original pool balance. Total and severe (90-plus-days, foreclosures, and REOs) delinquencies constitute 29.69% and 20.08% of the current pool balance, respectively. Standard & Poor's will continue to closely monitor the performance of both classes. If the delinquent loans cure to a point at which monthly excess interest begins to outpace monthly net losses, thereby allowing O/C to build and provide sufficient credit enhancement, S&P will affirm the ratings and remove them from CreditWatch. Conversely, if delinquencies cause substantial realized losses in the coming months and continue to erode credit enhancement, S&P will take further negative rating action on these classes. The affirmations are based on credit support percentages that are sufficient to maintain the current ratings. The collateral backing this transaction consists of pools of fixed- and adjustable-rate mortgage loans secured by first liens on one- to four-family residential properties. Ratings Lowered and Placed on Creditwatch Negative CDC Mortgage Capital Trust 2004-HE2 Rating ------ Class To From ----- -- ---- B-3 BB-/Watch Neg BBB- B-4 B+/Watch Neg BB+ Ratings Affirmed CDC Mortgage Capital Trust 2004-HE2 Class Rating ----- ------ M-1 AA M-2 A M-3 A- B-1 BBB+ B-2 BBB CHURCH & DWIGHT: Strong Performance Prompts S&P's Positive Outlook ------------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on Princeton, New Jersey-based Church & Dwight Co. Inc. to positive from stable. "The revised outlook is based on the company's continued strong operating performance and improved financial profile," said Standard & Poor's credit analyst Patrick Jeffrey. Church & Dwight has reduced debt leverage to below 3x from the mid-3x area following its acquisition of Orange Glo International in August 2006. "While the company may make future debt-financed acquisitions to support its growth strategy, we expect debt leverage will be managed on average in the low-3x area," said Mr. Jeffrey. The ratings could be raised over the near term if the company continues to demonstrate operating stability and a financial policy consistent with a higher rating. At the same time, Standard & Poor's affirmed all of its existing ratings on the company, including the 'BB' corporate credit rating. This rating reflects the company's participation in the highly competitive personal care segment of the consumer products industry, its lack of geographic diversity, and its somewhat aggressive acquisition strategy. This is mitigated to an extent by its established consumer brands, stable operating performance, good free cash flow generation, and moderately leveraged balance sheet. CLEARANT INC: Posts $967,000 Net Loss in Quarter Ended March 31 --------------------------------------------------------------- Clearant Inc. reported a net loss of $967,000 on total revenues of $435,000 for the first quarter ended March 31, 2007, compared with a net loss of $2,513,000 on total revenues of $190,000 for the same period ended March 31, 2006. Revenues from direct distribution of Clearant Process sterile implants were $179,000 and $0 during the quarters ended March 31, 2007 and 2006, respectively. Revenues from licensing activities decreased 49% to $40,000 in the quarter ended March 31, 2007, from $79,000 in the quarter ended March 31, 2006. Revenues from fee for service activities increased 67% to $50,000 for the quarter ended March 31, 2007, from $30,000 in the quarter ended March 31, 2006. Revenues from contract research, milestones and grants increased to $166,000 in the quarter ended March 31, 2007, from $61,000 in the same quarter last year. The increase is primarily related to a one-time non- recurring license agreement termination fee in that quarter. At March 31, 2007, the company's consolidated financial statements showed $2,721,000 in total assets and $2,867,000 in total liabilities, resulting in a $146,000 total stockholders' deficit. The company's consolidated balance sheet at March 31, 2007, also showed strained liquidity with $1,357,000 in total current assets available to pay $2,863,000 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?211c Going Concern Doubt Singer Lewak Greenbaum & Goldstein LLP, in Los Angeles, expressed substantial doubt about Clearant Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2006. The auditing firm pointed to the company's recurring losses from operations and negative cash flow from operations. About Clearant Inc. Clearant Inc. (OTC BB: CLRIE.OB) -- http://www.clearant.com/-- is a biotechnology company which has developed the patent-protected Clearant Process, which substantially reduces all types of bacteria and viruses in biological products while maintaining the functionality of the underlying tissue implant or protein. COATES INT'L: March 31 Balance Sheet Upside-Down by $3.1 Million ---------------------------------------------------------------- Coates International Ltd. reported a net loss of $616,388 for the first quarter ended March 31, 2007, compared with a net loss of $489,610 for the same period in 2006. No revenues were generated during the three month periods ended March 31, 2007, and 2006. Total operating expenses for the three month periods ended March 31, 2007, and 2006, were approximately $520,000 and $392,000, respectively, an increase of 32.7%. Research and development costs were approximately $81,000 for the three month periods ended March 31, 2007, compared to nil in 2006. This increase in research and development costs reflects the company's emphasis on R&D activities to complete development, make engineering refinements and perform testing of the technology for the third prototype production engine for Well-to-Wire. At March 31, 2007, the company's consolidated financial statements showed $2,436,014 in total assets and $5,613,115 in total liabilities, resulting in a $3,177,101 total stockholders' deficit. The company's consolidated financial statements for the quarter ended March 31, 2007, also showed strained liquidity with $669,145 in total current assets available to pay $1,261,508 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?211a Going Concern Doubt Weiser LLP, in New York, expressed substantial doubt about Coates International Ltd.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the quarter ended March 31, 2007. The auditing firm pointed to the company's recurring losses from operations, working capital deficit, and stockholders' deficiency. About Coates International Headquartered in Wall Township, New Jersey, Coates International Ltd. (OTC BB: COTE.OB) -- http://www.coatesengine.com/ -- has substantially completed the development of the Coates spherical rotary valve engine. The company is now engaged in adapting its technology to manufacturing industrial engines to power electric generators with output of up to 300kw, depending on the primary fuel. Thereafter, the company intends to manufacture engines for multiple other applications and uses. COLE-TECH INC: Case Summary & 19 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Cole-Tech, Inc. P.O. Box 35 Weimar, TX 78962 Bankruptcy Case No.: 07-34129 Chapter 11 Petition Date: June 21, 2007 Court: Southern District of Texas (Houston) Judge: Marvin Isgur Debtor's Counsel: Reese W. Baker, Esq. 5151 Katy Freeway, Suite 200 Houston, TX 77007 Tel: (713) 869-9200 Fax: (713) 869-9100 Estimated Assets: Unstated Estimated Debts: Unstated Debtor's 19 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ U.S. Rubber open accounts $115,000 c/o William Buck, Attorney 4902 Yarwell Houston, TX 77095 Compass Bank purchase money; $85,440 701 South 32nd Street value of Birmingham, AL 35233 security: $80,000 Internal Revenue Service taxes $83,000 P.O. Box 21126 Philadelphia, PA 19114 Wells Fargo open account $60,110 Ford Credit purchase money; $26,961 value of security: $23,000 Bank of West deficiency $25,000 Asset Recovery Dept. balance Chase Cardmember open account $22,993 Services Ford Credit deficiency $19,502 balance San Antonio Credit Union deficiency $8,440 balance Home Depot open account $3,444 Texas Comptroller of taxes $2,032 Public Accounts Signature Media Solutions open account $1,738 Shell Fleet credit card $1,024 A.L.M.E.X. open account $736 Idearc Media open account $685 Nationwide Plastics open account $655 Infocom, U.S.A. open account $380 Chase credit card $183 Mack Bolt & Steel open account $113 COLLINS & AIKMAN: Workers Balk at Lack of Response on Shutdown -------------------------------------------------------------- Approximately 575 employees at two of the Collins & Aikman Corp.'s Canadian plants -- Mississauga and Port Huron -- stopped work on June 18, 2007, because of concerns over their jobs as the company prepares to close the plants, Bloomberg News reports. The two Ontario plants produce injection-molded car interior parts for United States automakers. The United Steelworkers members are upset about Collins' "lack of response" on the planned shutdown of the plants. An interim settlement has been reached by members of the United Steel Workers and Collins after an almost-24 hour work stoppage and occupation. According to Bloomberg News, the settlement "secures full severance pay with an $11,500,000 escrow fund, provides for an immediate return to work with no loss in pay for time lost during the dispute, a guarantee of no reprisals from the company, and calls for immediate bargaining between the union and the company for a full closure agreement." About Collins & Aikman Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed $3,196,700,000 in total assets and $2,856,600,000 in total debts. On Aug. 30, 2006, the Debtors filed their Chapter 11 Plan and Disclosure Statement. On Dec. 22, 2006, they filed an Amended Joint Chapter 11 Plan. The Court approved the adequacy of the Amended Disclosure Statement. The Court has adjourned the hearing to consider confirmation of the Amended Joint Plan to July 12, 2007. (Collins & Aikman Bankruptcy News, Issue No. 65; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) COLLINS & AIKMAN: Wants Court Nod on Sale of Three U.S. Facilities ------------------------------------------------------------------ Collins & Aikman Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Eastern District of Michigan to approve an asset purchase agreement for the sale of assets at their Evart, Michigan; Belvidere, Illinois; and St. Louis, Missouri facilities free and clear of liens, claims, encumbrances and other interests; the assumption and assignment of certain executory contracts and unexpired leases in connection with the Sale; and waive the stays of the sale. In consultation with JPMorgan Chase Bank, N.A., as agent for their senior, secured prepetition lenders, the Debtors determined that the sale of the business at the Facilities as a going concern would maximize value for their estates and creditors. After an extensive marketing process and examining the bids received from potential buyers, the Debtors and their advisors, in consultation with JPMorgan, determined that the offer from Ventra Evart, LLC; Ventra Belvidere, LLC; Ventra St. Louis, LLC; and Ventra Assembly Company was the highest and best offer received by the Debtors. On June 11, 2007, the parties executed the Asset Purchase Agreement. The salient terms of the APA, with Ventra as purchaser, and Collins & Aikman Corporation and JPS Automotive, Inc., as sellers, include: * the purchase price will consist of $7,540,870 for acquired assets other than the Textron Assets, plus $2,900,000 for the Textron Assets; * the Acquired Assets include the sellers' right, title and interest in and to substantially all of the assets exclusively used in the Business, whether tangible or intangible, whether real, personal or mixed, and whether or not carried on the books of the sellers; * excluded assets include all of the assets and properties that are being retained by the sellers and are not being sold or transferred to the purchaser, including cash, certain claims and causes of action, certain corporate documents, intercompany receivables, and certain tooling used by the sellers in connection with the manufacture of certain component parts; * assumed liabilities include sellers' liabilities and obligations under assumed contracts and leases arising after closing; liabilities and obligations with respect to the Business or the Acquired Assets arising after the closing; 50% of the transfer taxes, if any, applicable to the transfer of the Acquired Assets to the purchaser; and certain environmental liabilities that arise as a result of the purchaser's operation of the Acquired Assets after the closing; * excluded liabilities consist of all the sellers' liabilities that are not assumed liabilities, including certain tax liabilities, certain employee liabilities, and liabilities of sellers arising prior to the closing; and * the sellers will assume and assign to the purchaser, effective as of the closing date, certain executory contracts and unexpired leases at the Belvidere Facility -- Lease for Toshiba E-280 Copier System with GE Capital and Lease for premises located at Lot 4 Townhall Industrial Park, Belvidere, Illinois, with Townhall 4, LLC. To assist in the assumption, assignment and sale of the assumed agreements, the Debtors also request that the Court enter an order providing that anti-assignment provisions in the Assumed Agreements will not restrict, limit or prohibit the assumption, assignment and sale of the Assumed Agreements and are deemed and found to be unenforceable anti-assignment provisions within the meaning of Section 365(f) of the Bankruptcy Code. To maximize the value of the assets and preserve the viability of the Business, the Asset Purchase Agreement provides for a closing date no later than June 30, 2007. A copy of the Asset Purchase Agreement is available for free at: http://ResearchArchives.com/t/s?211f Objections (1) UAW The International Union, United Automobile, Aerospace and Agricultural Implement Workers of America, and its local unions 282, 1268 and 227, is the collective bargaining representative of the Debtors' bargaining unit employees at their Evart, Belvidere, and St. Louis Facilities. The UAW is party to a series of collective bargaining agreements with the Debtors. As part of the contemplated asset sale involving the Evart Facility, the UAW engaged in challenging and difficult discussions with the purchaser concerning the terms and conditions of a new collective bargaining agreement for hourly employees. They eventually reached an agreement, and the resulting labor agreement was ratified by UAW Local 2270 membership in Evart. The UAW supports the Evart asset sale. The UAW and purchaser have not agreed to terms and conditions of a labor agreement governing the UAW-represented hourly employees at the Debtors' Belvidere Facility. The purchaser has indicated it would not assume the terms and conditions of the existing Belvidere CBA, and the terms of the APA state as much, Niraj R. Ganatra, Esq., associate general counsel of the UAW, in Detroit, Michigan, tells the Court. The Debtors and the UAW have agreed, in the current Belvidere and St. Louis CBAs, which extend, by their own terms, until at least December 1, 2009, and July 24, 2009, that the Debtors may not sell the assets of their businesses to any party unless the buyer agrees to assume the terms and conditions of the CBA and the obligations that arise, including the Debtors' collectively bargained wage, benefit and other specified obligations to their employees. The UAW objected to the sale of the Belvidere Facility without requiring the purchaser to assume the current Belvidere CBA. The Debtors remain bound by the terms of their CBAs with the UAW. Under Section 8(d) of the National Labor Relations Act, an employer may modify a collective bargaining agreement only in specific situations. The mid-term modifications must be mutually agreed-upon, Mr. Ganatra said. "At no time since the CBAs were executed have the parties met or engaged in any mid-term modification(s) to the [Belvidere or St. Louis] CBAs. The CBAs, and all relevant provisions, remain intact," Mr. Ganatra noted. The UAW also has not consented to the sale of St. Louis assets. It reserves all its rights in relation to the sales motion order, any other orders, and all other continuing developments, possible changes in bids, submission of further documentation, and the submission of other objections. The UAW asked the Court to grant the Debtors' sale motion only upon the condition that the purchaser will be required to assume the Belvidere and St. Louis CBAs. (2) Townhall Townhall 4, LLC, related that the purchaser has not given Townhall adequate assurance that it would be able to perform its duties under the lease dated Aug. 9, 2004, for property at Lot 4 Townhall Industrial Park, Belvidere, Illinois, between Townhall and the Debtors, if the Lease were assumed and assigned to the purchaser. The $15,972 cure amount listed for the Lease is also incorrect, Robert J. Diehl, Jr., Esq., at Bodman LLP, in Detroit, Michigan, tells the Court. Townhall agrees that the $15,972 the Debtors listed as the cure amount is due and owing for 2005 real property taxes under the Lease. Townhall notified the Debtors that an additional $26,649 is also currently due and owing under the Lease for 2006 real property taxes. The Debtors informed Townhall that the $26,649 would be paid, however, Townhall has not yet received the payment. The Debtors have filed a preference complaint, Adversary Proceeding No. 07-05453, against Townhall alleging $135,088 in preferential transfers, on account of rent payments due under the Lease. Mr. Diehl states that if the Debtors assume and assign the Lease, they must dismiss the Townhall Complaint with prejudice in connection with the assumption of the Lease because all of the alleged preferential transfers from the Debtors to Townhall were on account of rent payments due under the Lease. (3) Hourly Employees Certain hourly employees in the Debtors' Evart Plant, including Susan M. Ward and Henriette D. Davis, are in disagreement with the Court's findings about the money distribution regarding the sale of assets, among others. The hourly employees alleged that they were lied to and cheated out of five years of their pension. Moreover, Ms. Ward said, retirees that have worked 30 years are going to lose their health coverage and any supplemental pension amount that they have been promised throughout their working years, in their union contracts. The hourly employees asserted that even if Collins & Aikman Corporation will no longer be a company through the Debtors' Chapter 11 cases, they have liabilities to all employees. They stated that concessions were made for the pending sale of the Evart Plant, and sacrifices will be made by all employees. The employees will be paying a price for the Debtors' negligence. That price not only affects, among others, future working conditions, salaries, vacations and health insurance, but the employees' security for their future and retirement years, which they trustingly put in the Debtors' hands, the hourly employees contend. The hourly employees asked the Court to consider reimbursing all or any financial or medical coverage funds due to them. About Collins & Aikman Headquartered in Troy, Michigan, Collins & Aikman Corporation -- http://www.collinsaikman.com/-- is a global leader in cockpit modules and automotive floor and acoustic systems and is a leading supplier of instrument panels, automotive fabric, plastic-based trim, and convertible top systems. The Company has a workforce of approximately 23,000 and a network of more than 100 technical centers, sales offices and manufacturing sites in 17 countries throughout the world. The Company and its debtor-affiliates filed for chapter 11 protection on May 17, 2005 (Bankr. E.D. Mich. Case No. 05-55927). Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represents C&A in its restructuring. Lazard Freres & Co., LLC, provides the Debtor with investment banking services. Michael S. Stammer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors Committee. When the Debtors filed for protection from their creditors, they listed $3,196,700,000 in total assets and $2,856,600,000 in total debts. On Aug. 30, 2006, the Debtors filed their Chapter 11 Plan and Disclosure Statement. On Dec. 22, 2006, they filed an Amended Joint Chapter 11 Plan. The Court approved the adequacy of the Amended Disclosure Statement. The Court has adjourned the hearing to consider confirmation of the Amended Joint Plan to July 12, 2007. (Collins & Aikman Bankruptcy News, Issue No. 65; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) DAIMLERCHRYSLER: Truck Group Inks Supply Pact with Fiat Powertrain ------------------------------------------------------------------ The DaimlerChrysler Truck Group and Fiat Powertrain Technologies have concluded a strategic cooperation agreement in the field of powertrains. The first step of this agreement concerns the long-term supply of light-duty diesel engines to the Mitsubishi Fuso Bus & Truck Corporation, to be used in the Canter light commercial vehicle which will be marketed in major markets, including and FPT will supply around 80,000 F1C engines per year to Mitsubishi Fuso starting in 2009. The supply volumes will increase over the following years. The engine is a Common Rail Diesel engine, with displacement, rated 177 Hp at 3,500 rpm and a torque of 400 Nm at 1,400 rpm. Thanks to the optimized design of all engine components and to the advanced technology of its injection and turbocharging systems, the F1C engine guarantees excellent performance and fuel consumption. The F1C engine is currently manufactured only in, but production in an additional site will shortly be started as part of the globalization of FPTs footprint. The current Canter generation was introduced in 2002 and is one of the most successful light-duty trucks in -- sold over 132,000 times in over 106 countries world-wide. Its great success and Mitsubishi Fuso's core competence for such vehicles makes MFTBC the world-wide Competence Centre for light-duty trucks within the DaimlerChrysler Truck Group. Within the framework of this strategic supply-agreement the two companies are also investigating further potential business opportunities in other markets, including. "This agreement is a key step in our strategy aimed at developing strategic partnerships in all sectors of the Group" Sergio Marchionne, CEO of Fiat Group, said. "Our ability to partner with DaimlerChrysler is confirmation that the decision to carve out our powertrain activities as a separate sector two years ago was the right one, and that we have products and technical skills to satisfy the needs of a demanding market." "Today's and future emission regulations demand a high level of investment and technological specialization," Dieter Zetsche, Chairman of the Board of Management of DaimlerChrysler AG and responsible for the Mercedes Car Group, said. "This agreement provides a value added for both companies, Fiat Group and DaimlerChrysler." "The agreement is a milestone for the DaimlerChrysler Truck Group in many ways," Andreas Renschler, Member of the DaimlerChrysler Board of Management and responsible for the Truck Group, added. "With this alliance we have reached the best decision for our Fuso customers as we will offer them the most modern, technologically advanced and ecologically friendly light-duty engine for their businesses. And the engine will deliver high performance combined with highly competitive fuel efficiency." "This agreement witnesses the level of our technology and supports the strategic role of FPT in expanding its business outside the captive market" Alfredo Altavilla, CEO of Fiat Powertrain Technologies, said. "We trust this supply agreement can be the first step in a long-lasting and mutually satisfactory cooperation in further selected projects." Formed in March 2005, Fiat Powertrain Technologies is the Engines and Transmissions sector of the Fiat Group. With its annual output of around 2.8 million engines and 2.1 million transmissions, with 16 plants and 10 R&D centres, FPT is one of the key players in its sector on a worldwide basis. The DaimlerChrysler Truck Group is a division of DaimlerChrysler AG and the world's largest commercial vehicle manufacturer. With its five truck brands Mercedes-Benz, Freightliner, Sterling, Western Star and Fuso it operates over 50 locations in Western Europe, Asia, the NAFTA region and Latin America. Last year the Truck Group sold 537,000 trucks world-wide. Mitsubishi Fuso Truck & Bus Corporation is based in Kawasaki, Japan, and sold a total of 186,600 units including light-, medium- and heavy-duty trucks and buses in 2006. DaimlerChrysler AG owns 85% of MFTBC. The remaining 15% of shares are held by various Mitsubishi Group companies. MFTBC is an integral part of the DaimlerChrysler Truck Group. 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. DAYTON SUPERIOR: Plans to Refinance Two Existing Senior Notes ------------------------------------------------------------- Dayton Superior Corporation said it intends to refinance its existing senior notes and senior subordinated notes. The company anticipates completing the refinancing within the next several weeks, subject to market conditions. The proceeds from a new syndicated senior secured credit facility, along with borrowings under the company's existing revolving credit facility, will be used to fully refinance both the company's existing outstanding 10.75% senior second secured notes due 2008 and the 13% senior subordinated notes due 2009. Concurrent with the new senior credit facility, the company will amend and restate its existing revolving credit facility. About Dayton Superior Dayton Superior Corporation -- http://www.daytonsuperior.com/-- (NASDAQ: DSUP) provides specialized products consumed in non- residential, concrete construction, and is the largest concrete forming and shoring rental company serving the domestic, non- residential construction market. The company's products can be found on construction sites nationwide and are used in non- residential construction projects, including: infrastructure projects, such as highways, bridges, airports, power plants and water management projects; institutional projects, such as schools, stadiums, hospitals and government buildings; and commercial projects, such as retail stores, offices and recreational, distribution and manufacturing facilities. As of March 31, 2007, the company's balance sheet showed total assets of $312.5 million and total liabilities of $418 million, resulting in a total stockholders' deficit of $105.5 million. EQUIFIRST MORTGAGE: Fitch Holds Low-B Ratings on Six Issues ----------------------------------------------------------- Fitch Ratings has taken the following rating action on the Equifirst Mortgage Loan trusts issues below: Series 2003-1 -- Class I-F1 affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class M-3 affirmed at 'BBB'. Series 2003-2 -- Classes I-A1, II-A2, and III-A3 affirmed at 'AAA'; -- Class M-1 affirmed at 'AA'; -- Class M-2 affirmed at 'A'; -- Class M-3 affirmed at 'A-'; -- Class M-4 affirmed at 'BBB+'; -- Class M-5 affirmed at 'BBB'; -- Class M-6 affirmed at 'BBB-'; -- Class B-1 affirmed at 'BB+'. Series 2004-1 -- Classes I-A1, II-A2, and II-A3 affirmed at 'AAA'; -- Class M-1 upgraded to 'AA+' from 'AA'; -- Class M-2 upgraded to 'AA-' from 'A+'; -- Class M-3 upgraded to 'A+' from 'A'; -- Class M-4 affirmed at 'A-'; -- Class M-5 affirmed at 'BBB+'; -- Class M-6 affirmed at 'BBB'; -- Class M-7 downgraded to 'BB' from 'BBB-'; -- Class B-1 downgraded to 'B' from 'BB+'. Series 2004-3 -- Classes A-2 and A-3 affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA'; -- Class M-3 affirmed at 'AA-'; -- Class M-4 affirmed at 'A+'; -- Class M-5 affirmed at 'A'; -- Class M-6 affirmed at 'A-'; -- Class M-7 affirmed at 'BBB+'; -- Class M-8 affirmed at 'BBB'; -- Class M-9 affirmed at 'BBB'; -- Class M-10 affirmed at 'BBB-'; -- Class B-1 affirmed at 'BB+'; -- Class B-2 affirmed at 'BB'. Series 2005-1 -- Classes A-3 and A-4 affirmed at 'AAA'; -- Class M-1 affirmed at 'AA+'; -- Class M-2 affirmed at 'AA'; -- Class M-3 affirmed at 'AA-'; -- Class M-4 affirmed at 'A+'; -- Class M-5 affirmed at 'A'; -- Class M-6 affirmed at 'A-'; -- Class M-7 affirmed at 'BBB+'; -- Class M-8 affirmed at 'BBB'; -- Class M-9 affirmed at 'BBB-'; -- Class B-1 affirmed at 'BB+'; -- Class B-2 affirmed at 'BB'; -- Class B-3 affirmed at 'BB-'. The mortgage pools consist of first lien, fixed-rate and adjustable-rate residential mortgage loans. Equifirst Corporation, a wholly-owned subsidiary of Regions Bank Corporation (rated 'A+' by Fitch), originated or acquired the mortgage loans for the above trusts. The affirmations affect approximately $762.5 million in outstanding certificates and reflect adequate relationships of credit enhancement to future loss expectations. The upgrades reflect an improvement in the relationship of CE to future loss expectations and affect approximately $43.7 million in outstanding certificates. The downgrades reflect the deterioration in the relationship of CE to future loss expectations and affect $5.7 million in outstanding certificates. In the months subsequent to the step-down date of March 2007, the overcollateralization has been below the target amount. In the past two months the OC percentage has decreased by approximately 72 basis points, adding pressure to the most subordinate bond. Fitch does expect the delinquency trigger to be breached in the future which will allow the mezzanine bonds to maintain CE despite future losses to the trust. The servicers for the above trusts are as follows: Ocwen Federal Bank FSB (rated 'RPS2' by Fitch) for series 2003-2 and 2004-3, Select Portfolio Servicing, Inc. (rated 'RPS2-' by Fitch) for series 2003-1, HomEq Servicing Corporation (rated 'RPS1' by Fitch) for series 2004-1, and Saxon Mortgage Services, Inc. (rated 'RPS2') for series 2005-1. EQUITY INNS: Whitehall Street Deal Cues Moody's to Review Ratings ----------------------------------------------------------------- Moody's placed Equity Inns L.P.'s Ba3 long-term issuer rating and Equity Inns' B2 preferred stock rating under review for possible downgrade. This rating action was taken in response to Equity Inns' announcement that it agreed to be acquired by an affiliate of Whitehall Street Global Real Estate Limited Partnership 2007 for about $1.26 billion in cash and the assumption of $800 million in debt and $140 million of preferred stock (Series B and C). The purchase price of $23 per share reflects an approximately 28% premium over Equity Inn's 90-day average closing share price. The transaction terms include no financing contingency to closing, which is expected to occur in the fourth quarter of 2007. The ratings review reflects Whitehall's stated intent to convert the rated Series B preferred stock into preferred shares of the acquiring entity with identical terms and the likelihood of increased overall leverage and particularly secured leverage subsequent to the transaction, as has been typically observed by Moody's in public-to-private deals. In its review Moody's will focus on Equity Inns' pro forma capital structure -- in specific, overall leverage and the use of secured debt, as well as strategic profile and management structure. The following ratings were placed under review for possible downgrade: Equity Inns, Inc. -- Preferred stock series B at B2 Equity Inns Partnership, L.P. -- Issuer rating at Ba3 Equity Inns, Inc. [NYSE: ENN], based in Memphis, Tennessee, USA, is a self-advised real estate investment trust (REIT) and the largest US REIT focused on the upscale extended stay, all-suite and mid-scale limited-service segments of the hotel industry. Equity Inns became publicly traded in 1994 and is now the oldest public hotel REIT in the USA with 132 hotels in 35 states. At March 31, 2007, Equity Inns' total assets were $1.2 billion. FREMONT HOME: S&P Lowers Ratings on Nine Certificate Classes ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its ratings on nine classes of certificates from four Fremont Home Loan Trust transactions. The ratings on four of these classes remain on CreditWatch with negative implications, two were placed on CreditWatch with negative implications, and two were removed from CreditWatch with negative implications. At the same time, S&P placed its ratings on four other classes, including one from an additional series, on CreditWatch with negative implications. The seasoning of these deals ranges from eight to 44 months, and all of the pools consist of subprime collateral, with the exception of series 2006-B, loan group 2, which consists of second-lien mortgage loans. The negative rating actions affecting the subprime pools reflect adverse collateral performance in recent months. Recent performance trends, including the delinquency pipelines and the relationships between monthly net losses and monthly excess interest, are not favorable and indicate that current and projected credit support percentages are not sufficient at the previous rating levels. As of the May 2007 distribution, overcollateralization levels were below their respective targets for all five pools, while O/C deficiencies have worsened compared with six months ago. Total delinquencies for the affected subprime pools range from 12.58% (series 2003-A) to 31.93% (series 2005-1) of the current principal balances, while cumulative losses range from 0.67% (series 2004-3) to 0.92% (series 2004-A) of the original principal balances. The negative rating actions affecting the certificates from series 2006-B, loan group 2, which are backed by stressed second-lien collateral, reflect the severe deterioration of available credit support due to extreme early losses during recent months. While this pool is only eight months seasoned, it has incurred $26.09 million (9.06% of the original principal balance) in cumulative realized losses to date. The four-month average net loss is approximately $6.48 million, which has consistently outpaced monthly excess interest. O/C for this pool was not fully funded at issuance and was completely depleted during the April 2007 distribution. Since this remittance period, losses have caused the two most subordinate classes, originally rated 'BB+' and 'BBB- ', to default. Credit support for these transactions has deteriorated recently, and S&P expect to take negative rating actions in the future if losses continue and further erode credit support. If losses decline to a point at which they no longer exhaust available credit enhancement, and the level of credit enhancement is not further eroded, S&P will affirm the ratings on these classes and remove them from CreditWatch. S&P removed the ratings on classes SL-M7 and SL-M8 from series 2006-B from CreditWatch because they were lowered to 'CCC'. According to Standard & Poor's surveillance practices, ratings lower than 'B-' on classes of certificates or notes from RMBS transactions are not eligible to be on CreditWatch negative. Ratings Lowered and Placed on Creditwatch Negative Fremont Home Loan Trust Rating ------ Series Class To From ------ ----- -- ---- 2006-B SL-M4 BB/Watch Neg A+ 2006-B SL-M5 B/Watch Neg A Ratings Lowered and Remaining on Creditwatch Negative Fremont Home Loan Trust Rating ------ Series Class To From ------ ----- -- ---- 2004-A B-3 BB/Watch Neg BBB-/Watch Neg 2004-3 M10 BBB-/Watch Neg BBB+/Watch Neg 2005-1 B-3 B/Watch Neg BB/Watch Neg 2006-B SL-M6 B-/Watch Neg BBB/Watch Neg Ratings Lowered and Removed from Creditwatch Negative Fremont Home Loan Trust Rating ------ Series Class To From ------ ----- -- ---- 2006-B SL-M7 CCC B+/Watch Neg 2006-B SL-M8 CCC B/Watch Neg Rating Lowered Fremont Home Loan Trust Rating ------ Series Class To From ------ ----- -- ---- 2006-B SL-9 D CCC Ratings Placed on Creditwatch Negative Fremont Home Loan Trust Rating ------ Series Class To From ------ ----- -- ---- 2003-A M-5 BBB/Watch Neg BBB 2006-B M-11 BB+/Watch Neg BB+ 2006-B SL-M2 AA/Watch Neg AA 2006-B SL-M3 AA-/Watch Neg AA- GENCORP INC: Inks Amended & Restated $280 Million Credit Facility ----------------------------------------------------------------- GenCorp Inc. entered into an amended and restated $280 million senior secured credit facility with a syndicate of lenders. The facility was arranged by Wachovia Capital Markets LLC and JP Morgan Securities Inc. as Joint Lead Arrangers and Joint Book Runners. JPMorgan Chase Bank acts as the Syndication Agent. Wachovia Bank, National Association acts as Administrative Agent for the new facility. The credit facility provides for an $80 million revolving credit facility maturing on June 21, 2012, and a $200 million credit- linked facility maturing on April 30, 2013. The credit-linked facility consists of a $75 million term loan and a $125 million letter of credit subfacility. The interest rate on the revolving credit facility is LIBOR plus 225 basis points per annum, subject to adjustment downwards if leverage is reduced. Letters of credit under the credit-linked facility will be charged a fee of 225 basis points per annum, a fronting fee of 10 basis points per annum in addition to charges customarily applicable to such facilities. The unused revolver commitment fee is 50 basis points per annum, subject to adjustment downwards if leverage is reduced. The facility is secured by a substantial portion of the company's real property holdings and substantially all of its other assets, including the stock and assets of its material domestic subsidiaries that are guarantors of the facility. The company is subject to certain limitations including the ability to: * incur additional debt, * sell assets, * release collateral, * retain proceeds from asset sales and issuances of debt or equity, * make certain investments and acquisitions, * grant additional liens, and * make restricted payments. The company is also subject to maximum total leverage and minimum interest coverage covenants throughout the term of the facility. "The company is pleased with the closing of this new credit facility which extends maturities and provides the company with more flexibility to manage its operations and real estate assets," Yasmin Seyal, senior vice president and chief financial officer, said. About GenCorp Inc. Headquartered in Rancho Cordova, California, GenCorp Inc. (NYSE: GY) -- http://www.GenCorp.com/-- is a technology-based manufacturer of aerospace and defense products and systems with a real estate business segment that includes activities related to the re-zoning, entitlement, sale, and leasing of the company's excess real estate assets. * * * As reported in the Troubled Company Reporter on June 7, 2007, Standard & Poor's Ratings Services affirmed its ratings, including the 'B+' corporate credit rating, on GenCorp Inc. At the same time, Standard & Poor's assigned its 'BB-' bank loan rating and '1' recovery rating to the propulsion provider's proposed $280 million bank financing, indicating high expectations of a full recovery of principal following payment default. The outlook is stable. As reported in the Troubled Company Reporter on the May 31, 2007, Moody's Investors Service assigned a Ba2 rating GenCorp Inc.'s proposed senior secured credit facility, which consists of an $80 million revolving facility due 2012, a $75 million term loan due 2013, and a $125 million synthetic letter of credit facility due 2013. At the same time, Moody's affirmed all ratings of GenCorp Inc., corporate family rating of B2, and has lowered the ratings outlook to negative. GREENPARK GROUP: Court Okays Kohut as Special Litigation Counsel ---------------------------------------------------------------- The Honorable Erithe A. Smith of the United States Bankruptcy Court for the Central District of California gave GreenPark Group LLC and its debtor-affiliates permission to employ Kohut & Kohut LLP as their special litigation counsel. The firm is expected to: a. represent the Debtors as special litigation counsel with respect to the removed actions; and b. perform other and further services as typically may be rendered by the special litigation counsel as new matters arise. The Debtors reminds the Court that its general insolvency counsel, Irell & Manella LLP, is involved in the removed actions, however, none of the services rendered by Kohut & Kohut will be duplicative to Irell & Manella's services. Ronald J. Kohut, Esq., a partner of the firm, charges $450 per hour for this engagement. Luara L. Kohut, Esq., and Megan Wagner, Esq., will also be rendering their services and both bill at $350 per hour. Mr. Kohut assures the Court that he does not hold any interest adverse to the Debtors' estate and is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Court. Mr. Kohut can be reached at: Ronald J. Kohut, Esq. Kohut & Kohut LLP 600 Anton Boulevard, Suite 1075 Costa Mesa, California Tel: (707) 573-3100 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. GSAMP TRUST: S&P Puts Default Ratings on Two Certificate Classes ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on 12 classes of certificates from GSAMP Trust's series 2006-S3, 2006- S4, and 2006-S5. The lowered ratings include the downgrades of class M-6 from series 2006-S3 and class M-6 from series 2006-S5 to 'D' from 'CCC'. S&P also lowered the ratings on class M-2 from series 2006-S3, classes B-1 and B-2 from series 2006-S4, and classes M-1 and M-2 from series 2006-S5 and placed them on CreditWatch with negative implications. Concurrently, S&P lowered the ratings on class M-3 from series 2006-S3 and classes M-3 and M-4 from series 2006-S5 and left them on CreditWatch negative. Additionally S&P lowered the ratings on class M-4 from series 2006-S3 and class M-5 from series 2006-5 to 'CCC' and removed from CreditWatch negative. S&P also placed the ratings on class M-1 from series 2006-S3 and class M-7 from series 2006-S4 on CreditWatch with negative implications. Finally, S&P affirmed the ratings on the remaining outstanding classes from these three transactions. The drastic rating adjustments reflect the continuing heavy losses and high delinquencies of the mortgage pools backing these three series in recent months. These three transactions are backed by closed-end, second-lien mortgage loans, which are generally charged off after they are delinquent for 180 days. As of the May 2007 remittance period, the pool backing series 2006-S3 incurred a cumulative loss of $65.23 million, or 13.20% of the original pool balance. The loss completely depleted overcollateralization and the class B-1, B-2, and M-7 certificates have been completely written down. S&P lowered its rating on class M-6 to 'D' because of $3.46 million in principal write- downs. Total delinquencies and severe delinquencies constitute 17.14% and 8.23% of the series' current pool balance, respectively. The pool backing series 2006-S4 incurred a record loss of $16.47 million during the May 2007 remittance period. To date, this series has experienced cumulative losses totaling $19.24 million, or 2.95% of the original pool balance. Given the losses to date, O/C has been reduced to $15.43 million, or 2.36% of the original pool balance, below its target of 5.65% of the original pool balance. Total delinquencies and severe delinquencies constitute 7.80% and 3.75% of the current pool balance, respectively. For the same period, the pool backing series 2006-S5 had experienced cumulative losses totaling $35.41 million, or 10.70% of the original pool balance. Losses have completely depleted O/C and the class B-1, B-2, and M-7 certificates have been completely written down. S&P lowered its rating on class M-6 to 'D' because of $1.82 million in principal write-downs. Total delinquencies and severe delinquencies constitute 16.04% and 7.17% of the current pool balance, respectively. Standard & Poor's will continue to closely monitor the performance of the classes with ratings on CreditWatch. If the delinquent loans cure to a point at which monthly excess interest begins to outpace monthly net losses, thereby allowing O/C to build and provide sufficient credit enhancement, S&P will affirm the ratings and remove them from CreditWatch. Conversely, if delinquencies cause substantial realized losses in the coming months and continue to erode credit enhancement, S&P will take further negative rating actions on these classes. S&P removed its ratings on two classes from CreditWatch because they were lowered to 'CCC'. According to Standard & Poor's surveillance practices, ratings lower than 'B-' on classes of certificates or notes from RMBS transactions are not eligible to be on CreditWatch negative. The affirmations are based on credit support percentages that are sufficient to maintain the current ratings. Credit support for these transactions is provided by a combination of subordination, excess spread, and O/C. The underlying collateral consists of second-lien mortgage loans. Ratings Lowered and Placed on Creditwatch Negative GSAMP Trust Rating ------ Series Class To From ------ ----- -- ---- 2006-S3 M-2 A-/Watch Neg AA- 2006-S4 B-1 B+/Watch Neg BB+ 2006-S4 B-2 B/Watch Neg BB+ 2006-S5 M-1 A/Watch Neg AA 2006-S5 M-2 A-/Watch Neg AA- Ratings Lowered and Remaining on Creditwatch Negative GSAMP Trust Rating ------ Series Class To From ------ ----- -- ---- 2006-S3 M-3 B/Watch Neg BB/Watch Neg 2006-S5 M-3 BBB/Watch Neg A/Watch Neg 2006-S5 M-4 B/Watch Neg BBB-/Watch Neg Ratings Lowered and Removed from Creditwatch Negative GSAMP Trust Rating ------ Series Class To From ------ ----- -- ---- 2006-S3 M-4 CCC B/Watch Neg 2006-S5 M-5 CCC B/Watch Neg Ratings Lowered GSAMP Trust Rating ------ Series Class To From ------ ----- -- ---- 2006-S3 M-6 D CCC 2006-S5 M-6 D CCC Ratings Placed on Creditwatch Negative GSAMP Trust Rating ------ Series Class To From ------ ----- -- ---- 2006-S3 M-1 AA/Watch Neg AA 2006-S4 M-7 BBB-/Watch Neg BBB- Ratings Affirmed GSAMP Trust Series Class Rating ------ ----- ------ 2006-S3 A-1, A-2, A-3 AAA 2006-S3 M-5 CCC 2006-S4 A-1, A-2, A-3 AAA 2006-S4 M-1 AA 2006-S4 M-2 AA- 2006-S4 M-3 A 2006-S4 M-4 A- 2006-S4 M-5 BBB+ 2006-S4 M-6 BBB 2006-S5 A-1, A-2 AAA HARLAN SPRAGUE: S&P Rates Proposed $360 Mil. Sr. Facilities at BB ----------------------------------------------------------------- Standard & Poor's Rating Services assigned its loan and recovery ratings to Harlan Sprague Dawley's proposed $360 million senior secured facilities, consisting of a $15 million super-priority USD-denominated revolving credit facility, a $15 million super- priority euro-denominated revolving credit facility, and a $330 million first-lien term loan. The revolving credit facilities are rated 'BB' with a recovery rating of '1', indicating the expectation for very high (90%-100%) recovery in the event of a payment default. The borrower for the euro-denominated revolver is Harlan Netherlands B.V. The term loan is rated 'B+' with a recovery rating of '3', indicating the expectation for meaningful (50%-70%) recovery in the event of a payment default. In addition, S&P affirmed all other ratings on Harlan, including the 'B+' corporate credit rating. The rating outlook is stable. "The debt is being used to refinance existing bank and mezzanine debt and to fund the acquisition of a contract research organization," explained Standard & Poor's credit analyst Alain Pelanne. The ratings on Harlan, a provider of lab research models and preclinical services, continue to reflect the company's operating focus in markets that include some larger competitors, integration risk related to the acquisition, and its aggressive debt leverage as a result of its late-2005 sponsor buyout. These factors are partially offset by the company's global reach, customer diversity, and macro-level trends that currently support spending on the company's services. HEXCEL CORP: Inks Deal with JPS Industries for Carolina Assets -------------------------------------------------------------- Hexcel Corporation entered into a definitive agreement with JPS Industries Inc., pursuant to JPS acquiring the company's assets comprising of operations in Anderson, South Carolina and Statesville, North Carolina. The consideration includes a cash purchase price of $62.5 million, plus a contingent earn-out payment of up to $12.5 million based on revenues generated from sales of ballistics products from those facilities over the 36-month period after the consummation of the acquisition. Upon consummation of the transaction, JPS will acquire Hexcel's fiberglass based electronics and specialty industrial substrates businesses in addition to their aramid based ballistics substrates business. "This transaction represents a landmark event in the history of JPS Industries and an opportunity to provide significant value to JPS, its customers and its stockholders," Michael L. Fulbright, chairman and CEO of JPS, said. "JPS believes that Hexcel's employees, facilities, and product lines complement the company's existing operations well and adding these resources into its existing business will create a much stronger operating entity. This combination provides the company's JPS Composite Materials business, led by M. Gary Wallace, president, with significant resources to grow and better serve our existing markets and customers with larger, more flexible manufacturing capabilities, stronger R&D efforts across all product lines and, importantly, gives us entry to several new markets. The customers and markets of the new JPS Composites will span many industries and specialty applications including, but not limited to: electronics applications including printed circuit boards, communication devices and Internet infrastructure components, advanced composite materials for aerospace components in military and commercial applications, specialty substrates for commercial and residential construction, industrial filtration, and insulation products, high performance fiberglass substrates for security and transportation applications, and, importantly, ballistics materials used in soft body armor for civilian and military applications." "The acquisition will be financed with a new $105 million senior and second lien credit facility arranged by Wachovia, Charles R. "Chuck" Tutterow, EVP and CFO of JPS Industries and president of Stevens Urethane added. "After closing, the company anticipates that the new JPS Industries will have annual sales in excess of $325 million originating from five manufacturing facilities in our three main business units: Composite Materials, Stevens Roofing and Stevens Urethane. "This represents the first of several planned growth objectives involving each of the company's three business units in the form of organic growth, product line extensions and potentially other acquisition opportunities," Mr. Fulbright stated. The acquisition is subject to customary closing conditions, including termination of waiting period under the Hart-Scott- Rodino Antitrust Improvements Act and JPS's ability to obtain financing sufficient to consummate the acquisition. The acquisition is expected to be completed in the third quarter of 2007. About JPS Industries Inc. Headquartered in New Hampshire, JPS Industries Inc. (JPST.PK) -- http://www.jpsindustries.com/-- manufactures of extruded urethanes, polypropylenes and mechanically formed glass substrates for specialty industrial applications. JPS specialty industrial products are used in a wide range of applications, including: printed electronic circuit boards; advanced composite materials; aerospace components; filtration and insulation products; surf boards; construction substrates; high performance glass laminates for security and transportation applications; plasma display screens; athletic shoes; commercial and institutional roofing; reservoir covers; and medical, automotive and industrial components. The company operates manufacturing locations in Slater, South Carolina; Westfield, North Carolina; and Easthampton, Massachusetts. About Hexcel Corporation Headquartered in Stamford, Connecticut, Hexcel Corporation (NYSE: HXL) -- http://www.hexcel.com/-- is an advanced structural materials company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense and industrial applications. * * * As reported in the Troubled Company Reporter on April 5, 2007, Moody's Investors Service has raised the ratings of Hexcel Corporation, Corporate Family Rating to Ba3 from B1. The ratings on Hexcel's senior secured credit facility have been upgraded to Ba1 from Ba2, while the subordinated notes ratings were upgraded to B1 from B3. The ratings outlook is Stable. HYDROCHEM INDUSTRIAL: Moody's Affirms B2 Corporate Family Rating ---------------------------------------------------------------- Moody's Investors Service assigned Ba3 and B3 ratings to the proposed first and second lien credit facilities respectively of HydroChem Industrial Services, Inc. and affirmed the B2 Corporate Family and Probability of Default ratings. The facilities are intended to finance the acquisition of HydroChem by Harvest Partners, LLC., which took place on June 8, 2007. Moody's also downgraded the existing senior subordinated notes to Caa1 from B3, reflecting the likely increase in senior secured debt in the capital structure. Moody's had changed the outlook of HydroChem on May 7, 2007 to stable from positive following the announcement of the acquisition and the effect on leverage and other credit metrics. The proposed transaction includes a combination of: * first lien facilities, which consist of a $50 million senior secured revolver, a $30 million term loan, and a $100 million delayed term loan, * a second lien delayed draw term loan of $50 million, * a PIK term loan at the parent level of $52 million, and * equity of $95 million, mostly in the form of cumulative preferred shares. The first and second lien delayed draw term loans are intended to refinance up to $150 million of 9.25% senior subordinated notes due 2013 currently included in the capital structure to the extent that the notes are tendered under a put option triggered by the acquisition. The put period began on June 11, 2007 and existing note holders have until July 9, 2007 to put their bonds back to the company for settlement on July 11, 2007. The financing also includes a $52 million 13% PIK term loan at the parent level, HydroChem Holding, Inc. and about $95 million of equity. The purchase price of $334 million represents an estimated multiple of 8.5 times adjusted EBITDA of $39.2 million for the twelve months ended March 31, 2007. HydroChem's ratings are constrained by the high initial leverage for the B2 rating category, the company's relatively small size, the high acquisition multiple given constrained long-term revenue growth prospects as the trend toward exporting US manufacturing continues, and the company's significant exposure to the petrochemical and refining industry. Rating constraints also include a high percentage of intangibles on the balance sheet comprising about 70% of assets. The ratings benefit from the company's position in the industrial cleaning services industry, long-standing client relationships, a stable underlying business, a geographically diverse revenue stream, relatively small individual job size, and solid top line growth over the last two years along with trends toward single-vendor service relationships and centralized purchasing which should favor larger organizations over smaller contractors. Given the high level of initial financial leverage, weak or negative free cash flow generation resulting from a slowdown in industrial production and associated reduction in cleaning and maintenance expenditures, declining operating margins, unanticipated increases in capital expenditures, or dilutive debt- financed acquisitions could result in a downgrade. HydroChem's weak positioning in the B2 Corporate Family rating category and the company's relatively recent history of leveraged buyouts means that an upgrade is unlikely in the medium term. Moody's took these rating actions: -- Assigned Ba3 (LGD 2, 27%) to the proposed $50 million first lien revolver due 2013; -- Assigned Ba3 (LGD 2, 27%) to the proposed $30 million first lien term loan B due 2013; -- Assigned Ba3 (LGD 2, 27%) to the proposed $100 million delayed draw first lien term loan B due 2013; -- Assigned B3 (LGD 5, 72%) to the proposed $50 million senior secured second lien term loan due 2014; -- Downgraded to Caa1 (LGD 5, 84%) from B3 (LGD 4, 62%) the $150 million 9.25% senior subordinated notes, due 2013; -- Affirmed the B2 Corporate Family Rating; -- Affirmed the B2 Probability of Default Rating. The outlook for the ratings is stable. The affirmation is subject to the receipt of executed documentation in form and substance acceptable to Moody's. Headquartered in Deer Park, Texas, HydroChem Industrial Services, Inc. is a leading North American provider of industrial cleaning services to a diversified client base of over 800 customers, often under long-term contracts, including Fortune 500 and S&P Global 1200 companies. The company offers hydroblasting, industrial vacuuming, chemical cleaning, and tank cleaning and related services at over 90 operating locations, many of which are on the Gulf Coast. The company's revenues are generated from services to the petrochemical industry (51.6%), oil refining (25.6%), utilities (12.6%), pulp and paper mills (2.2%), with the remainder (8.0%) coming from other industries. The company is owned by Harvest Partners, LLC. Revenue for fiscal 2006 was $248 million. IPSCO INC: Commences Cash Tender Offer for 8-3/4% Senior Notes -------------------------------------------------------------- IPSCO Inc. commenced a cash tender offer to purchase any and all of its outstanding 8-3/4% Senior Notes due 2013, well as a related consent solicitation to amend the indenture governing the notes. The tender offer and consent solicitation were conducted in connection with SSAB Svenskt Stal AB's agreement to acquire IPSCO Inc., and is subject to all closing conditions to that acquisition have been satisfied or waived. The tender offer and consent solicitation are made upon the terms and subject to the conditions set forth in the Offer to Purchase and Consent Solicitation Statement dated June 18, 2007, and the related Consent and Letter of Transmittal. The total consideration payment for each validly tendered Note, subject to the terms and conditions of the tender offer and consent solicitation, will be paid in cash and calculated based in part on the 4.875% U.S. Treasury Note due May 2008. The total consideration for each $1,000 principal amount of notes will be equal to: (i) the present value of $1,043.75 from the earliest redemption date, plus the present value on the Settlement Date of all interest that would be payable beginning on the next payment date up to the earliest redemption date, in each case determined as set forth below at a yield equal to the sum of (x) the yield on the Reference Security as calculated by the Dealer Manager in accordance with standard market practice, based on the bid price for such Reference Security as of 2:00 p.m., New York City time, two business days prior to the Expiration Date, and (y) a fixed spread of 50 basis points, minus (ii) any accrued and unpaid interest to the Settlement Date. The total consideration is payable only in respect of Notes validly tendered with consents, and not withdrawn, on or prior to the Consent Date and purchased in the tender offer. The total consideration includes a payment of $15 per $1,000 principal amount of Notes payable only in respect of Notes validly tendered and with consents delivered on or prior to the Consent Date. Holders validly tendering Notes after the Consent Date and on or prior to the Expiration Date. Holders whose Notes are purchased in the tender offer will also be paid accrued and unpaid interest from the last interest payment date to, but not including, the Settlement Date. The detailed methodology for calculating the total consideration and the tender offer consideration for notes, well as a hypothetical example of the calculation of the total consideration and the tender offer consideration are outlined in the Offer to Purchase. IPSCO Inc. is also soliciting consents from holders of the Notes for certain proposed amendments which would eliminate substantially all of the restrictive covenants in the indenture governing the Notes and certain of the events of default, well as modify certain other provisions contained therein. Adoption of the Amendments requires the consent of holders of a majority of the aggregate principal amount of Notes outstanding. The consent solicitation and withdrawal rights will expire at 5:00 p.m., New York City time, on Friday, June 29, 2007, unless earlier terminated or extended. Holders who validly tender their Notes by the Consent Date will be eligible to receive the total consideration. Holders who validly tender their Notes after the Consent Date, and on or prior to 5:00 p.m., New York City time, Tuesday July 17, 2007, will be eligible to receive only the tender offer consideration. The settlement date for notes purchased in the tender offer is expected to be one business day following the Expiration Date. Holders whose Notes are purchased will be paid accrued and unpaid interest up to, but not including, the Settlement Date. Holders who tender their Notes must consent to the Amendments. Holders must validly tender their Notes and deliver their consents on or prior to the Consent Date in order to be eligible to receive the total consideration; holders tendering Notes after the Consent Date will only be eligible to receive the tender offer consideration. Tendered Notes may not be withdrawn and consents may not be revoked after the Consent Date. The tender offer and the consent solicitation are subject to the satisfaction of certain conditions, including receipt of consents in respect to at least a majority of the principal amount of Notes and that all closing conditions to SSAB's acquisition have been satisfied or waived on or prior to the Expiration Date. J.P. Morgan Securities Inc. is the sole Dealer Manager for the tender offer and the consent solicitation and can be contacted at (866) 834-4666 (toll free). Global Bondholder Services Corporation is the Information Agent and the Depositary for the tender offer and the consent solicitation and can be contacted at (212) 430-3774 (collect) or toll free at (866) 470-4300. About IPSCO Inc. Located at Regina, Saskatchewan, IPSCO Inc. (NYSE/TSX:IPS) -- http://www.ipsco.com/-- produces energy tubulars and steel plate in North American with an annual steel making capacity of 4.3 million tons. IPSCO operates four steel mills, eleven pipe mills, and scrap processing centers and product finishing facilities in 25 geographic locations across the United States and Canada. The company's pipe mills produce a wide range of seamless and welded energy tubular products including oil & gas well casing, tubing, line pipe and large diameter transmission pipe. Additionally, IPSCO provides premium connections for oil and gas drilling and production. * * * As reported in the Troubled Company Reporter on June 15, 2007, the proposed plan of arrangement between IPSCO Inc. and SSAB Svenskt Stal AB, pursuant to which IPSCO would be acquired by SSAB for a cash consideration of $160 per share, has expired. The expiration of the Hart-Scott-Rodino waiting period satisfies one of the conditions to SSAB's acquisition of IPSCO. Consummation of the plan of arrangement, which is expected to occur in the third quarter of 2007, remains subject to other customary closing conditions, including approval of the plan of arrangement by IPSCO's shareholders and obtaining certain regulatory approvals. JOHN SNYDER: Case Summary & Four Largest Unsecured Creditors ------------------------------------------------------------ Debtor: John M. Snyder Living Trust 2830 West 650 North Bryant, IN 47326 Bankruptcy Case No.: 07-11722 Chapter 11 Petition Date: June 21, 2007 Court: Northern District of Indiana (Fort Wayne Division) Judge: Robert E. Grant Debtor's Counsel: Daniel J. Skekloff, Esq. Skekloff, Adelsperger & Kleven, LLP 927 South Harrison Street Fort Wayne, IN 46802 Tel: (260) 407-7000 Fax: (260) 407-7137 Estimated Assets: $1 Million to $100 Million Estimated Debts: $100,000 to $1 Million Debtor's List of its Four Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ Wanda Snyder Trust Money $60,000 2830 West 650 North Bryant, IN 47326 George Robertson $44,000 Earl Raskosky Attorney Fees $11,866 Helena Chemical Co. $8,500 LAND O'LAKES: Moody's Ups Corporate Family Rating from Ba3 to Ba2 ------------------------------------------------------------------ Moody's Investors Service upgraded the long-term ratings of Land O'Lakes, Inc., including its corporate family rating and probability of default rating to Ba2 from Ba3, and affirmed its speculative grade liquidity rating of SGL-2. The rating outlook is stable. Ratings upgrade: Land O'Lakes, Inc. -- Corporate family rating to Ba2 from Ba3 -- Probability of default rating to Ba2 from Ba3 -- $225 million senior secured revolving credit to Baa3 (LGD2,18%) from Ba1 (LGD2,21%) -- $175 million 9% senior secured second lien debt to Ba1 (LGD2,29%) from Ba2 (LGD3,33%) -- Senior unsecured notes to Ba2 (LGD4,57%) from Ba3(LGD4,58%) Land O'Lakes Capital Trust I -- $191 million 7.45% capital securities to B1 (LGD5,88%) from B2 (LGD5,88%) Rating affirmed: Land O'Lakes, Inc. -- Speculative grade liquidity rating at SGL-2 The upgrade in long-term ratings reflects Land O' Lakes' continued successful streamlining of its portfolio, management's sustained commitment to debt reduction, and its improved financial flexibility, credit metrics and operating results. The most recent example of portfolio rationalization and organizational simplification is the cooperative's June 21st decision to buy the crop protection products business conducted by its off-balance sheet joint venture Agriliance, when Agriliance sells the crop nutrients business to its other 50% owner. The SGL rating reflects Moody's expectation that cash flow generation over the next twelve months, as well as cash balances, will be at levels that are likely to cover major uses, although the cooperative will likely access external funds on an interim basis during the next twelve months to cover seasonal working capital needs. The company's Ba2 rating is supported by the strength of the Land O' Lakes brand; the cooperative's scale; its strong market positions in dairy, animal feed, seed and agronomy, through the Agriliance joint venture; and the broad distribution infrastructure supporting its businesses, all of which are consistent with an investment grade rating. However, the cooperative's exposure to volatile agricultural and commodity markets and a business profile that has been inconsistent over the years are attributes that are commensurate with speculative grade ratings. In addition, Land O' Lakes' ratings take into account i) the remaining organizational complexity-with varied business lines; ii) the challenges of adapting and executing business strategies under a cooperative ownership structure; and iii) historically high cash payments to its cooperative membership base. Moody's analyzes Land O'Lakes in the context of the Rating Methodology for Global Agricultural Cooperatives. Using the 19 rating factors cited in this methodology and Land O'Lakes' fiscal 2006 financial metrics, the cooperative's rating maps to Ba1, one notch higher than its actual Ba2 corporate family rating. Land O'Lakes' actual rating incorporates the evolving nature of the cooperative's business configuration and possible challenges as the important Agriliance joint venture sheds two major business lines. The stable rating outlook assumes stable operating performance in core segments, continued progress in rationalizing non-core businesses, and successful integration of the crop protection products business in a timely fashion. Land O'Lakes, Inc. based in Arden Hills, Minnesota, is an agricultural cooperative focusing on dairy food, animal feed, and agricultural crop inputs. Revenues for the twelve months ended March 31, 2007 exceeded $7.2 billion. LEHMAN BROTHERS: Moody's Rates Class K Certificates at Ba2 ---------------------------------------------------------- Moody's Investors Service upgraded the ratings of eight classes and affirmed the ratings of four classes of Lehman Brothers Floating Rate Commercial Mortgage Trust 2005-LLF C4, Commercial Mortgage Pass-Through Certificates, Series 2005-LLF C4: -- Class A-2, $47,578,602, Floating, affirmed at Aaa -- Class X-2, Notional, affirmed at Aaa -- Class B, $24,328,000, Floating, upgraded to Aaa from Aa1 -- Class C, $22,117,000, Floating, upgraded to Aaa form Aa2 -- Class D, $13,270,000, Floating, upgraded to Aaa from Aa3 -- Class E, $13,270,000, Floating, upgraded to Aaa from A1 -- Class F, $13,270,000, Floating, upgraded to Aaa from A2 -- Class G, $13,270,000, Floating, upgraded to Aa1 from A3 -- Class H, $15,482,000, Floating, upgraded to A2 from Baa1 -- Class J, $14,376,000, Floating, affirmed at Baa3 -- Class K, $25,438,398, Floating, affirmed at Ba2 -- Class WFV, $4,900,000, Floating upgraded to A3 from Baa3 The certificates are collateralized by four mortgage loans which range in size from 4.2% to 51.9% of the aggregate pool balance based on current principal balances. As of the June 15, 2007 distribution date, the aggregate certificate balance has decreased by approximately 77.2% to $212.9 million from $935.6 million at securitization due to the payoff of 12 loans initially in the pool. The certificates receive principal payments on a senior sequential basis. Moody's is upgrading Classes B, C, D, E, F, G and H due to increased credit support from the loan payoffs. Moody's is upgrading non-pooled Class WFV due to the improved performance of the Westfield Shoppingtown Valencia Loan. The Westfield Shoppingtown Valencia Loan (51.9%) is secured by a 465,300 square foot portion of an 858,200 square foot regional mall located in Valencia, California. Anchor tenants include J.C. Penney, Macy's and Sears. Collateral occupancy was 96.9% as of March 2007, compared to 87.3% at securitization. The borrower is an affiliate of The Westfield Group, Inc. Comparable tenant sales were $449 per square foot for the 12-month period ending March 2007, compared to $432 at securitization. Based on Moody's adjusted cash flow of $15.1 million the loan to value ratio is 57.5%, compared to 66.73% at Moody's last review in September 2006 and compared to 67.0% at securitization. Moody's current shadow rating is A2, compared to Baa2 at last review and at securitization. The IMT Central Florida Portfolio Loan (36.3%) is secured by six multifamily properties (2,008 units) located in Tampa, Orlando and Jacksonville, Florida. Moody's Red -- Yellow - Green(R) Update for the first quarter of 2007 classifies Tampa - Green (80), Orlando -- Yellow (65) and Jacksonville -- Red (13). Two properties containing 581 units (28.9%) are located in the Jacksonville market. Portfolio occupancy as of March 2007 was 94.6%, compared to 96.9% at Moody's last review and compared to 91.1% at securitization. Actual net operating income for calendar year 2006 was significantly below Moody's expectations primarily due to increased operating expenses. The borrower is an affiliate of Investors Management Trust and Lehman Brothers Real Estate Partners. Based on Moody's adjusted cash flow of $8.0 million the LTV is 77.5%, compared to 81.0% at Moody's last review and compared to 64.7% at securitization. Moody's current shadow rating is Ba3, compared to B1 at last review and compared to Baa2 at securitization. The Storage Today Portfolio Loan (7.7%) is secured by four self- storage facilities totaling approximately 370,000 square feet and located in the Chicago, Illinois area. Occupancy as of December 2006 was 72.6%, compared to 61.2% at securitization. Based on Moody's adjusted cash flow of $2.2 million the LTV is 58.4%, the same as at securitization. The 321-329 Riverside Avenue Office Loan (4.2%) is secured by five two-story Class A office buildings totaling 49,690 square feet office and located in Westport, Connecticut. As of April 2007 the buildings were 89.6% occupied, compared to 100.0% at securitization. Based on Moody's adjusted cash flow of $1.2 million the LTV is 60.1%, the same as at securitization. MASSEY ENERGY: Completed Review Prompts S&P's Stable Outlook ------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on Massey Energy Co. to stable from developing and affirmed its 'B+' corporate credit and other ratings on the company. "The rating action follows the completion of Massey's financial and strategic review," said Standard & Poor's credit analyst Thomas Watters. Massey concluded that it will remain an independent public company and continue to execute its current operating plan. Richmond, Virginia-based coal producer Massey Energy Co. has limited geographic diversity, difficult operating environment, high cost position, and aggressive financial leverage. "We could revise the outlook to negative, or lower our ratings, if production and sales volumes fall significantly short of company's guidance or if costs significantly increase because of the high regulatory and difficult operating environment," Mr. Watters said. "We could revise the outlook to positive if productivity meaningfully increases and contributes to significantly higher cash flow generation or if the company were to meaningfully reduce its debt leverage to maintain total debt to EBITDA and funds from operations to total debt below 4x and 15%, respectively, through an industry cycle." MGM MIRAGE: Tracinda Cancels Plan to Buy Bellagio & CityCenter -------------------------------------------------------------- MGM MIRAGE said in a press statement Wednesday that its majority stockholder Tracinda Corporation advised the company's Board of Directors during its regularly scheduled meeting that it had determined not to pursue negotiations regarding a possible acquisition of the company's Bellagio and CityCenter properties, and that it would be making a public announcement to that effect. In view of the advice, the Board of Directors terminated the transactions committee formed to consider any proposal that Tracinda might choose to make. J. Terrence Lanni, MGM MIRAGE's Chairman and Chief Executive Officer said: "We are very gratified by the overwhelming interest in our company that followed Tracinda's initial announcement. We want to thank the Transactions Committee and its advisors, UBS Investment Bank and Weil, Gotshal & Manges LLP, for their efforts during this period." Tracinda's Statement Tracinda Corporation disclosed in a regulatory filing with the Securities and Exchange Commission that it continues to believe that there is substantial unrecognized value in the assets of MGM MIRAGE. In Tracinda's view, the company's approach to joint venture transactions demonstrates that there is significant potential to unlock value for the company's shareholders through a variety of strategic transactions involving the company's assets. Accordingly, Tracinda has determined not to pursue negotiations with the company involving the purchase of the Bellagio Hotel and Casino and CityCenter properties. Tracinda said it will continue to monitor its investment and review and evaluate opportunities to enhance shareholder value in the company. Headquartered in Las Vegas, Nevada, MGM Mirage (NYSE: MGM) -- http://www.mgmmirage.com/-- is a hotel and gaming company. It owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey and Illinois. MGM MIRAGE: Inks Pact with Kerzner to Develop Las Vegas Resort -------------------------------------------------------------- MGM MIRAGE and Kerzner International Holdings Limited said in a joint press statement Wednesday that they have entered into a letter of intent to form a 50/50 joint venture to develop a multi- billion dollar integrated resort property on the Las Vegas Strip. The parties plan to enter into immediate negotiations with a view to concluding a definitive agreement in the third quarter of 2007. The new resort will be designed for approximately 40 of the 78 acres of land owned by MGM MIRAGE, located on the corner of Las Vegas Boulevard and Sahara Avenue. Kerzner will lead the planning and conceptualization of the project. The joint venture is expected to draw upon MGM MIRAGE's substantial presence and experience in Las Vegas and Kerzner's experience in developing and operating some of the world's most recognized and successful destination resorts. "We see this type of relationship as a major part of our company's future," said Terry Lanni, Chairman and CEO of MGM MIRAGE. "Our considerable real estate holdings, combined with our experience and efficiencies in developing major entertainment resort properties, are unmatched. We believe this joint venture could well serve as a model for similar transactions which we think could further enhance shareholder value by accelerating growth and conserving our capital, allowing us to pursue other growth opportunities and/or return excess capital to our shareholders." Sol Kerzner, Chairman and CEO of Kerzner International, observed: "We have studied the Las Vegas market for some time and believe this is an outstanding opportunity to create one of the most innovative and exciting destination resorts in the world. We are delighted to join forces with MGM MIRAGE." Under the terms of the agreement, MGM MIRAGE will provide the land for the resort and Kerzner International and one of its financial partners will provide cash equity, such that each party owns 50 percent of the project. The land being contributed by MGM MIRAGE is being valued at $20 million per acre. The new integrated resort complex is anticipated to be a multi-billion dollar project and will be financed through equity contributions and third-party debt financing. The broad conceptual design direction of the new resort has been agreed by the parties and design and planning is expected to take approximately one year to complete. Upon completion of the design phase, both parties anticipate a three year construction period. The as-yet unnamed resort project may utilize existing brands owned by either MGM MIRAGE or Kerzner International, or a new brand will be introduced. "This is an exciting opportunity for our company," said Jim Murren, President, CFO and Treasurer of MGM MIRAGE. "This is a prime location in the heart of a rapidly developing area of the Las Vegas Strip. Partnering with a highly respected global resort operator on such a prime piece of Las Vegas real estate will certainly result in a spectacular project. This resort will further enhance the Las Vegas tourist experience and drive incremental visitors to the Strip. This development will further elevate the value of our surrounding land holdings and assets." Headquartered in Las Vegas, Nevada, MGM Mirage (NYSE: MGM) -- http://www.mgmmirage.com/-- is a hotel and gaming company. It owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey and Illinois. MGM MIRAGE: Moody's Affirms Corporate Family Rating at Ba2 ----------------------------------------------------------- Moody's Investors Service affirmed MGM MIRAGE'S existing ratings, including its Ba2 corporate family rating and speculative grade liquidity rating of SGL-3. MGM's 56% shareholder, Tracinda Corporation, announced it will not pursue negotiations with MGM involving the purchase of the Bellagio Hotel and Casino and CityCenter properties. However, Tracinda also stated it will continue to evaluate opportunities to enhance shareholder value in the company. As a result, the risk of a potential leveraged or transformational transaction occurring is lower but remains high enough to warrant a negative rating outlook particularly in light of high multiples being paid to take gaming operators private. MGM also announced it entered into a letter of intent to form a 50/50 joint venture with Kerzner International Holdings Limited to develop a multi-billion resort on the Las Vegas Strip. This announcement does not have an immediate impact on ratings, but is factored into the negative outlook. The negative outlook also reflects higher spending levels in 2007 and the number of large scale projects the company is involved in that may, depending upon the level of future investment spending, result in higher than anticipated leverage going forward. The ratings could be downgraded if a leveraged or other transformational transaction were to occur, if spending for growth opportunities increases further or if expected earnings growth slows, depending on materiality and other factors such as timing of cash outflows for new investments or future assets sales. Moody's last rating action on MGM occurred May 8, 2007 when Moody's assigned a Ba2, LGD-3, 43% rating to MGM's issue of senior unsecured guaranteed notes due 2016. Headquartered in Las Vegas, Nevada, MGM MIRAGE owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey and Illinois. MGM MIRAGE has a 50 percent interest in MGM Grand Macau, a hotel-casino resort currently under construction in Macau S.A.R. Consolidated revenue for 2006 was about $7.2 billion. MGM MIRAGE: S&P Affirms Ratings and Removes Negative CreditWatch ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings for MGM MIRAGE (including the 'BB' corporate credit rating) and removed them from CreditWatch, where they were placed with negative implications on May 22, 2007. The rating outlook is negative. The affirmation follows the announcement by the majority owner of MGM MIRAGE, Tracinda Corp., that it has decided not to pursue negotiations regarding a possible acquisition of the company's Bellagio and CityCenter properties. Following this announcement, MGM MIRAGE's board of directors terminated the transactions committee that had been formed to consider any proposal that Tracinda might have made. "Though we have removed our ratings from CreditWatch in light of these developments, our rating outlook is negative given our ongoing concerns that a leveraging transaction is still possible, albeit now somewhat less likely," explained Standard & Poor's credit analyst Craig Parmelee. Tracinda stated in its press release that it will continue to monitor its investment in MGM, as well as review and evaluate opportunities to enhance shareholder value in the company. Moreover, MGM has announced that it has entered into a joint venture with Kerzner International Holdings Ltd. to develop a multibillion dollar integrated resort property on the Las Vegas Strip. Full details pertaining to this project are not yet available, although MGM announced that its equity contribution to the joint venture would be in the form of 40 acres of land valued at $20 million per acre, and that the financing is expected to be nonrecourse to MGM MIRAGE. S&P will evaluate this transaction and its impact on MGM MIRAGE's credit quality when more information about the project is available, which S&P expect will be several months from now. However, S&P's preliminary view is that they do not believe that incremental leverage associated with this transaction will drive a change in the rating. The 'BB' rating on Las Vegas-based MGM MIRAGE reflects the company's active growth strategy and significant reliance on the Las Vegas Strip for a majority of its cash flow. In addition, the company's capital spending will increase significantly between 2007 and 2009 as a result of its CityCenter plans. Still, MGM maintains a satisfactory business profile, with a leadership position on the Las Vegas Strip, positive operating momentum, and favorable long-term growth prospects. NEW CENTURY: Selects Ernst & Young as Tax Advisor ------------------------------------------------- New Century Financial Corporation and its debtor-affiliates ask authority from the U.S. Bankruptcy Court for the District of Delaware to employ Ernst & Young LLP as their tax advisory services provider, nunc pro tunc to May 1, 2007. Pursuant to an engagement letter, Ernst & Young's services include tax consultation related to the preparation of the 2006 and prior federal income and state income tax returns, and certain franchise tax returns. The Debtors state that the services will not be unnecessarily duplicative of those provided by any other of the Debtors' professionals. Ernst & Young will coordinate any services performed with the other professionals of the Debtors, including financial advisors and counsel, to avoid duplication of effort. The firm's hourly rates are: Partners, principals and directors $570 - $630 Senior managers $530 Managers $415 Seniors $310 - $335 Staff $150 - $205 The Debtors will reimburse Ernst & Young for any direct expenses incurred, including reasonable and customary out-of-pocket expenses in connection with the firm's retention. The Debtors believe that Ernst & Young's services are necessary to assist them in properly addressing their tax returns, hence, maximizing the value of their estates. The Debtors add that the firm is well qualified to represent them in a cost-effective, efficient and timely manner. Richard R. Magnuson, a partner at Ernst & Young, further attests that the firm and its professionals are "disinterested persons," as that term is used in Section 101(14) of the Bankruptcy Code, and are otherwise eligible to be retained under Section 327(a). Founded in 1995, Irvine, Calif.-based New Century Financial Corporation (NYSE: NEW) -- http://www.ncen.com/-- is a real estate investment trust, providing mortgage products to borrowers nationwide through its operating subsidiaries, New Century Mortgage Corporation and Home123 Corporation. The company offers a broad range of mortgage products designed to meet the needs of all borrowers. The company and its debtor-affiliates filed for Chapter 11 protection on April 2, 2007 (Bankr. D. Del. Lead Case No. 07-10416). Suzzanne Uhland, Esq., Austin K. Barron, Esq., and Ana Acevedo, Esq., at O'Melveny & Myers LLP, and Mark D. Collins, Esq., Michael J. Merchant, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., represent the Debtors. The Official Committee of Unsecured Creditors selected Hahn & Hessen as its bankruptcy counsel and Blank Rome LLP as its co-counsel. When the Debtors filed for bankruptcy, they listed total assets of $36,276,815 and total debts of $102,503,950. The Debtors' exclusive period to file a chapter 11 plan expires on July 31, 2007. (New Century Bankruptcy News, Issue No. 14; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). NEWPAGE CORP: S&P Affirms Ratings and Says Outlook is Stable ------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on Dayton, Ohio-based coated paper manufacturer NewPage Corp. to stable from positive. S&P affirmed all ratings, including its 'B' corporate credit rating. "The outlook revision reflects our assessment that NewPage's financial profile would no longer be consistent with a higher rating within our outlook time horizon," said Standard & Poor's credit analyst Andy Sookram. "The determination resulted from weaker-than-expected demand and prices and despite the company's likely benefit from the recent imposition of duties by the U.S. government on imported coated freesheet paper from Asia and announced capacity closures." Previously, a higher rating was primarily predicated on the company's capital structure becoming less aggressive. While the company succeeded in reducing debt balances over the past several quarters, a planned IPO was delayed, and operating results have been weaker than anticipated. "With prospects for some improvement in market conditions in the next few quarters, we expect NewPage's credit measures to remain consistent with the current ratings," Mr. Sookram said. "However, we could revise the outlook to negative, if prices begin to decline again, demand falls more steeply than we expect, or rising costs result in a material deterioration in NewPage's credit measures. We could revise the outlook to positive, if credit measures improve meaningfully, in particular, with significant reduction in debt levels." NORWOOD PROMOTIONAL: High Leverage Prompts S&P's B- Credit Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B-' corporate credit rating to Indianapolis, Ind.-based Norwood Promotional Products Inc., a leading manufacturer, designer and marketer of promotional products for distributors throughout the U.S. and Canada. The outlook is positive. At the same time, Standard & Poor's assigned bank loan and recovery ratings to Norwood's planned $210 million senior secured bank facility, which consists of a $135 million first-lien term loan and $75 million second-lien term loan. The first-lien facility is rated 'B', one notch higher than the corporate credit rating, with a recovery rating of '2', indicating the expectation for substantial (70%-90%) recovery in the event of a payment default. The second-lien facility is rated 'CCC', two notches lower than the corporate credit rating, with a recovery rating of '6', indicating the expectation for negligible (0%-10%) recovery in the event of a payment default. These ratings are based on preliminary terms, subject to review upon final documentation. "The ratings reflect Norwood's high leverage, narrow business focus, participation in a highly fragmented industry characterized by discretionary spending, and volatile operating performance history," said Standard & Poor's credit analyst Bea Chiem. Somewhat offsetting these factors are the company's leading market positions in the nonapparel promotional products segment. NOVELIS INC: S&P Rates $860 Million Secured Term Loan at BB ----------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' debt rating, with a recovery rating of '2', to Novelis Inc.'s $860 million secured term loan due 2014. The '2' recovery rating indicates an expectation of substantial (70%-90%) recovery in the event of default. Proceeds from the borrowings will be used to refinance existing bank loans, which are being repaid in the wake of the company's acquisition by Hindalco Industries Ltd. The long-term corporate credit rating on Novelis is 'BB-'. The outlook is negative. After giving effect to the proposed refinancing, the company will have about US$2.9 billion of pro forma fully adjusted debt at March 31, 2007. "The ratings on Novelis reflect its aggressive financial risk profile, characterized by a heavy debt burden and low margins that have proven to be less stable than expected when the company began stand-alone operations in January 2005," said Standard & Poor's credit analyst Donald Marleau. Nevertheless, Standard & Poor's expects that Novelis' financial performance will improve steadily in the next four to six quarters, as the company improves its ability to manage the operating margin and liquidity risks associated with can sheet price ceilings and higher aluminum prices. Ratings List Novelis Inc. Corporate credit rating BB-/Negative/B-2 Rating Assigned Novelis Inc. $860 million secured term loan BB (Recovery rating: 2) NUANCE COMMS: $225 Mil. Loan Increase Cues S&P to Affirm Ratings ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its B+/Positive/-- corporate credit and other ratings on Burlington, Massachusetts- based Nuance Communications Inc. following the announcement the company will increase its first-lien term loan B by $225 million. Pro forma for the add-on, the bank facility will consist of a $75 million revolving credit facility due 2012, and a $667 million term loan B due 2013. The first-lien senior secured bank loan is rated 'B+', the same as the corporate credit rating. The recovery rating of '3' reflects our expectation of meaningful (50%-70%) recovery of principal by lenders in the event of a payment default or bankruptcy. The proceeds from the add-on term loan will be used to fund the cash portion of the merger consideration for Nuance's previously announced acquisition of VoiceSignal Technologies, Inc., and to pay related fees and expenses. "The ratings on Nuance reflect the company's rapid growth, highly acquisitive profile, and moderately high debt leverage," said Standard & Poor's credit analyst Martha Toll-Reed. These factors are partly offset by a leading presence in the market for speech recognition products, a significant level of recurring revenues, and a diverse customer base. Nuance is a global provider of speech recognition software and imaging solutions, and related services. The company is focused primarily on enterprise customers within the financial services, telecommunications, automotive and health care sectors. Revenues for the 12 months ended March 31, 2007, were $506.7 million. OAK HILL: S&P Affirms BB- Ratings on Class D-1 and D-2 Notes ------------------------------------------------------------ Standard & Poor's Ratings Services placed its ratings on the class B-1, B-2, and C notes issued by Oak Hill Credit Partners I Ltd., an arbitrage high-yield CLO transaction, on CreditWatch with positive implications. At the same time, S&P affirmed the ratings on the class A-1a, A-1b, A-2, D-1, and D-2 notes due to the level of overcollateralization available to support the notes. The CreditWatch placements reflect factors that have positively affected the credit enhancement available to support the notes since the last upgrade on April 4, 2007. Since origination, the transaction has paid down approximately $279.018 million to the class A-1a and A-1b notes, including a payment of $115,543,974 on the June 1, 2007, payment date. Ratings Placed on Creditwatch Positive Oak Hill Credit Partners I Ltd. Rating ------ Class To From Balance ----- -- ---- ------- B-1 AA-/Watch Pos AA- $15,000,000 B-2 AA-/Watch Pos AA- $13,000,000 C BBB/Watch Pos BBB $30,000,000 Ratings Affirmed Oak Hill Credit Partners I Ltd. Class Rating Balance ----- ------ ------- A-1a AAA $89,502,000 A-1b AAA $13,479,000 A-2 AAA $102,500,000 D-1 BB- $20,500,000 D-2 BB- $2,500,000 PAETEC HOLDING: Moody's Junks Rating on Proposed $300MM Sr. Notes ----------------------------------------------------------------- Moody's Investors Service assigned a Caa1 rating to the proposed $300 million senior unsecured note offering at PAETEC Holding Corp. and affirmed PAETEC's B2 corporate family rating. PAETEC will use the net proceeds of the offering and cash on hand to repay $300 million of its existing 1st lien term loan. Due to the proposed changes in the capital structure, Moody's has also upgraded PAETEC's 1st lien credit facility to Ba3. The outlook is stable. Moody's has taken the following rating actions: Issuer: PAETEC Holding Corp. -- Senior Unsecured Notes, due 2015 -- Assigned Caa1 (LGD5 -- 84%) -- Corporate Family Rating -- Affirmed B2 -- Probability-of-Default Rating -- Upgraded to B2, from B3 -- Senior Secured Revolving Credit Facility, due 2012 -- Upgraded to Ba3 (LGD3 -- 31%), from B2 (LGD3 -- 34%) -- Senior Secured Term Loan, due 2013 -- Upgraded to Ba3 (LGD3 -- 31%), from B2 (LGD3 -- 34%) Outlook - Stable PAETEC closed its merger with US LEC Corp. on Feb. 28, 2007. PAETEC's overall debt level will remain unchanged and interest expense will likely reduce by an insignificant amount as a result of the proposed refinancing. "Although the increased leverage and the integration costs will stress the company's capital structure in the near term, the company's enhanced operating scale in the eastern US, and the potential for EBITDA growth driven by merger synergies should provide sufficient momentum to re-establish strong free cash flow growth to support the rating" says Moody's senior analyst Gerald Granovsky. The upgrade of PAETEC's senior secured bank facilities to Ba3 from B2 reflects a lower expected loss for these facilities driven by the additional junior capital provided by the new unsecured notes a corresponding reduction in the probability of default. Moody's upgraded PAETEC's Probability-of-Default rating to B2, from B3, reflecting a shift in the mean Loss-Given-Default rate for the corporate family from 35% to 50% following the addition of a new capital layer in the form of the senior unsecured notes. PAETEC, headquartered in Fairport, NY, is a competitive local exchange carrier and pro forma for the merger with US LEC Corp., the Company generated revenue of slightly over $1 billion in 2006. PARMALAT: Judge Drain Grants Permanent Injunction vs. Creditors --------------------------------------------------------------- The Hon. Robert Drain of the U.S. Bankruptcy Court for the Southern District of New York on Thursday granted Parmalat SpA a permanent injunction against the claims of Bank of America Corp. and other U.S. creditors, Reuters reports. The order, the report relates, signals a defeat for around 31 bondholders having estimated claims of EUR646 million or $869 million. Shirley Norton, BofA spokeswoman, said that the bank was "pleased" that the Court modified the injunction, Reuters adds. Parmalat declined to comment while lawyers for both Parmalat and the bondholders did not return calls, the report discloses. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed or bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. PATIENT PORTAL: Posts Net Loss of $106,360 in Qtr. Ended March 31 ----------------------------------------------------------------- Patient Portal Technologies Inc. reported a net loss of $106,360 on net sales of $251,978 for the first quarter ended March 31, 2007, compared with a net loss of $46,966 on zero revenues for the same period ended March 31, 2006. The company reported no revenue for the three months ended March 31, 2006, due to the divestiture of its former operating subsidiary in September 2005. In December 2006, the company acquired a new operating subsidiary, Patient Portal Connect Inc., and the revenues for this reporting period reflect the revenues of this operating subsidiary. Revenues for the three months ended March 31, 2007, were derived from hospital service contracts acquired by the company during this quarter. Cost of sales for the three months ended March 31, 2007, were $239,231. At March 31, 2007, the company's balance sheet showed $1,439,990 in total assets, $424,724 in total liabilities, and $1,018,831 in total stockholders' equity. The company's balance sheet at March 31, 2007, also showed strained liquidity with $133,850 in total current assets available to pay $424,724 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?20a3 Going Concern Doubt Walden Certified Public Accountant P.A., in Sunny Isles, Florida, expressed substantial doubt about Patient Portal Technologies Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2006. The auditing firm pointed to the company's recurring losses from operations and net capital deficiency. About Patient Portal Patient Portal Technologies Inc. (Other OTC: PPRG.PK) -- http://www.patientportal.com/-- through its newly acquired subsidiary, Patient Portal Connect Inc., provides integrated workflow solutions in the healthcare industry. Its proprietary systems were developed in close coordination with hospital industry partners to provide multi-layer functionality across a wide spectrum of critical patient-centric workflows that result in immediate improvements in cost savings, patient outcomes, and revenue growth for hospitals. PIER 1: Posts $56.3 Million Net Loss in Quarter Ended June 2 ------------------------------------------------------------ Pier 1 Imports Inc. had a net loss of $56,378,000 for the first quarter ended June 2, 2007, as compared with a net loss of $23,172,000 for the first quarter ended May 27, 2006. Total sales declined 5.2% for the first fiscal quarter to $356,375,000 from $376,092,000 in the year-ago quarter, and comparable store sales declined 5.4%. During the first quarter, merchandise margins declined to 45.5% as a direct result of the company's aggressive liquidation of modern craftsman merchandise. Excluding the estimated impact of the aggressive markdown strategy, merchandise margins for the quarter would have approximated 52.2% compared to 53.8% last year. Store occupancy costs remained flat compared to the year ago quarter. Selling, general and administrative expenses declined $15.5 million from the year ago period, and were 37.1% of sales compared to 39.2% of sales last year. The primary drivers of the decrease in costs were savings of about $9 million in marketing expense, $6 million in store payroll, and $4 million in other general administrative costs when compared to the same period last year. These cost savings were partially offset by one-time and unusual charges of $3.5 million related to severance and outplacement costs incurred with the company's previously announced reduction in force. Excluding the impact on merchandise margins and the one-time charge discussed above, management believes the pre-tax loss for the first quarter would have been more in line with the pre-tax loss for the year ago period. The company's balance sheet as of June 2, 2007, showed total assets of $861,138,000 and total liabilities of $557,742,000, resulting in a total stockholders' equity of $303,396,000. The company held $152,026,000 in cash and cash equivalents, including temporary investments of $145,547 at June 2, 2007. Return to Profitability Alex W. Smith, the company's president and chief executive officer, said, "Earlier this year, we outlined six key business priorities aimed at returning Pier 1 Imports to profitability and beyond. As planned, our results for the first quarter reflect the impact of charges that are a direct result of the speed with which we are executing our strategy. I look forward to today's conference call and updating you on our progress." About Pier 1 Imports Based in Fort Worth, Texas, Pier 1 Imports Inc. (NYSE:PIR) -- http://www.pier1.com/-- is a specialty retailer of imported decorative home furnishings and gifts with Pier 1 Imports(R) stores in 49 states, Puerto Rico, Canada, and Mexico, and Pier 1 kids(R) stores in the United States. * * * As reported in the Troubled Company Reporter on Jan. 19, 2007, Moody's Investors Service downgraded Pier 1 Imports Inc.'s corporate family rating to Caa1 from B3 following its continuing operating struggles and modest performance over the 2006 holiday season. Moody's said the rating outlook was revised to negative. PT HOLDINGS: Files Plan of Reorganization & Disclosure Statement ---------------------------------------------------------------- Port Townsend Paper Corporation, a wholly owned subsidiary of PT Holdings Company Inc., and its affiliates disclosed the filing of its Amended Plan of Reorganization Under Chapter 11 of the Bankruptcy Code Jointly Proposed by the Debtors and the Informal Committee of Senior Secured Noteholders, dated June 20, 2007 and accompanying disclosure statement in United States Bankruptcy Court, Western District of Washington. The company also received a commitment letter from certain holders of the company's 11% Senior Secured Notes due 2011 to provide $60 million in exit financing. The company had sought Chapter 11 protection to reorganize on Jan. 29, 2007 and is on track to emerge from Chapter 11 during the third quarter of 2007. The plan preserves the Port Townsend Paper Mill as an operating business on the northern Olympic Peninsula, and ensures that it will remain a vital economic engine for suppliers, employees, governmental entities, and secondarily-impacted businesses. The Company will emerge from bankruptcy with a healthier balance sheet, enhanced liquidity, and adequate financial resources to implement capital improvements. Pursuant to the plan, holders of the company's Secured Notes will convert approximately $125 million in principal amount of notes secured by substantially all of the company's U.S. and Canadian assets into 100% of the new common stock of the reorganized company. The plan provides for the payment of approximately (i) $4 million to creditors with claims for goods delivered to the company within the 20 days preceding the bankruptcy filing, (ii) $2 million to creditors whose contracts are being assumed, and (iii) $760,000 in satisfaction of loggers' and lumbermen's liens. In addition, the Plan makes up to $800,000 available for pro rata distribution to general unsecured creditors. The company will seek approval of the Disclosure Statement and exit financing commitment letter at a Bankruptcy Court hearing scheduled for June 27, 2007 at 9:30 a.m. "This filing is a significant step forward in our reorganization efforts and should allow the company to emerge from bankruptcy with a significantly improved balance sheet and liquidity position," John Begley, the Company's Chief Executive Officer, said. About PT Holdings PT Holdings Company, Inc., through its wholly owned subsidiary Port Townsend Paper Corporation -- http://www.ptpc.com/-- produces fiber-based lightweight containerboard in the U.S. and corrugated products in western Canada. The Port Townsend Paper family of companies employs approximately 800 people and annually produces more than 320,000 tons of unbleached Kraft pulp, paper and linerboard at its mill in Port Townsend, Washington. The company also operates three Crown Packaging Plants, two BoxMaster Plants, and the Crown Creative Group, located in British Columbia and Alberta. The Debtors' Canadian affiliates are not part of the bankruptcy proceedings. The company and its two affiliates, PTPC Packaging Co. Inc., and Port Townsend Paper Corporation filed for chapter 11 protection on Jan. 29, 2007 (Bankr. W.D. Wash. Lead Case No. 07-10340). Gayle E. Bush, Esq., and Katriana L. Samiljan, Esq., at Bush Strout & Kornfeld, represent the Debtors. Graham & Dunn PC, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed estimated assets of more than $100 million. RADIOSHACK CORP: Fitch Downgrades Issuer Default Rating to BB ------------------------------------------------------------- Fitch Ratings has downgraded these ratings for RadioShack Corporation: -- Issuer Default Rating to 'BB' from 'BB+'; -- Bank credit facility to 'BB' from 'BB+'; -- Senior unsecured notes to 'BB' from 'BB+'. The short-term IDR is affirmed at 'B'. Approximately $520 million of total debt is affected by these actions. The Rating Outlook is Negative. The downgrades reflect continued weakness in many of RadioShack's business segments, particularly wireless products and services, and concerns about revenue trends and the company's ability to produce sustainable profitability. The ratings also consider management's efforts to improve operational efficiency as well as the challenges of executing a turnaround in a highly competitive operating environment. RadioShack has continued to report negative comparable store sales driven by weak operating trends across most of its business segments. In particular, the company's core wireless business, which represents about one-third of its total revenues, has struggled to attract customers to the Cingular network despite targeted marketing efforts. In spite of weak sales trends, management has implemented cost-cutting initiatives such as headcount reductions and better inventory management, which have resulted in improved operating margins. EBITDAR margin increased to 14.5% in the last 12 months ending March 31, 2007 from 13.5% in 2006, although it remains below the previous five-year levels which ranged between 16.4% to 19.9%. In addition, credit metrics remain weak with EBITDAR coverage of interest and rent of 1.9 times and total adjusted debt/EBITDAR of 4.5x for the LTM period. While RadioShack's cost-cutting efforts have helped stabilize operating profits in the near term, management has not articulated a business strategy to address revenue growth, and Fitch remains concerned about RadioShack's long-term ability to stabilize and grow revenues and operating profits. As a result, Fitch expects the company's credit metrics to remain below their historical levels over the near to medium term. Of ongoing concern is the increasing competition in the consumer electronics and wireless businesses from national big-box retailers and discounters as well as wireless carriers and other new wireless distribution channels. These retailers offer a wide selection of consumer electronics and wireless products and, as they expand their store bases, are becoming increasingly convenient to customers. REXAIR LLC: Weak Operating Trends Cue S&P's Negative Outlook ------------------------------------------------------------ Standard & Poor's Ratings Services revised its ratings outlook on Troy, Michigan-based Rexair LLC to negative from stable, and affirmed the 'B' corporate credit and other ratings on the company. "The outlook revision reflects our concern with the company's weakened operating trends and tight covenant cushion," said Standard & Poor's credit analyst Bea Chiem. For the 12 months ended March 31, 2007, Rexair net sales grew by 1.4% because of growth in international markets, but EBITDA fell by 4% because of unfavorable manufacturing overhead and higher promotional expenses. For this period, estimated lease-adjusted total debt to EBITDA was 3.8x and estimated interest coverage was close to 3x. Although the company was in compliance with covenants at quarter-end, cushion was tight because of leverage and interest-coverage covenants. "We expect the total leverage covenant to tighten for the quarter ending June 30, 2007, and we remain concerned about the company's ability to maintain adequate cushion, given its small size and weaker-than-expected operating performance," said Ms. Chiem. The rating on Rexair LLC reflects the risks of direct-sales distribution and the discretionary nature of the company's products, its narrow business focus, small size and highly leveraged financial profile. Rexair, founded in 1935, is a leading manufacturer of premium household canister vacuum cleaning systems. RITCHIE (IRELAND): Files for Bankruptcy Protection in New York -------------------------------------------------------------- Ritchie Risk-Linked Strategies Trading (Ireland), Ltd., and Ritchie Risk-Linked Strategies Trading (Ireland) II, Ltd., filed for Chapter 11 protection with the U.S. Bankruptcy Court for the Southern District of New York on July 20, 2007. The Debtors, court records show, filed for bankruptcy: * due to the deterioration in the market value of their life insurance policies; * due to the decline in the value of their assets; * due to their inability to execute a planned securitization; * due to the impairment of their ability to pay their obligations with regard to the policies; and * in order to preserve the value of their assets for their creditors. Attorney General Complaint The Debtors disclose that in Oct. 26, 2006, the Attorney General for the State of New York filed a complaint against Coventry First, LLC, Montgomery Capital, Inc., The Coventry Group, Inc. and Reid S. Buerger. The complaint, titled "New York Attorney General v. Coventry First, LLC, et al." (No. 404620-06 N.Y. Sup. Ct.), alleged that Coventry engaged in various improper practices in its acquisition of policies from generally wealthy individuals of at 65 years in age. The Debtors relates that although they were not names as a party in the complaint, they had purchased the policies from an affiliate of Conventry prior to the complaint. The Debtors contend however, that as a result of the complaint: * they were unable to complete the planned securitization transaction, * their financial status and ability to obtain additional funding deteriorated; and * they were forced to initiate efforts to restructure their obligations and sell the policies. The Debtors further say that as a result of the complaint, Ritchie I entered into an amendment to its senior lending facility with ABN AMRO Bank N.V. providing for an increase in the Liquidity Facility to fund its monthly operational expenses, including payment of the Premiums and other amounts due under the Policies, through May, 2007. However, since the complaint, the market value of the policies diminished greatly and thus the Debtors were unable to successfully market these policies for sale nor to obtain funding necessary to maintain the policies until their natural maturation. The Ritchie I Complaint The Debtors also disclose that on May 2, 2007, a complaint was filed in the U.S. District Court for the Southern District of New York alleging that the Debtors and their investors were defrauded by certain companies and individuals affiliated with the Coventry- affiliated group of companies. In the complaint titled "Ritchie Capital Management, L.L.C., et al. v. Coventry First, LLC, et al." (No. 07-3494 U.S. D. Ct. S.D.N.Y.), the plaintiffs allege that Coventry partnered with them to invest in life insurance policies with a view toward re-selling them through a securitization transaction. The complaint further alleges that Coventry concealed from Ritchie Capital that the defendants were systematically defrauding the owners of the policies, and then further deceived Ritchie Capital as to the existence of an investigation by the Attorney General of New York into the defendants' misconduct. The complaint also argues that Moody's lost confidence in the health of the collateral -- i.e., the policies -- because it no longer believed that representations and warranties could be made by Ritchie I and Ritchie II to potential investors in the securitization of the nature and character provided to, and relied upon by, Ritchie I and Ritchie II in the purchase of the policies. Moody's, according to the complaint, no longer believed that the policies had been purchased in compliance with applicable legal requirements. DIP Financing Court records further show that contemporaneous with the filing of their voluntary chapter 11 petitions, the Debtors have requested for authority to incur DIP financing of up to $30 million and use the prepition senior lender's cash collateral. The Debtors say that the DIP Financing and the cash collateral will be used to make premium payments, pay Life Settlement Policies' servicing fees and pay other operating expenses. About Coventry Headquartered in Philadelphia, Pennsylvania, Coventry First LLC - http://www.coventry.com/-- is a secondary market leader for life settlements. About Ritchie Headquartered in Lisle, Illinois, Ritchie Capital Management Ltd. - http://www.ritchiecapital.com/-- is a private asset management firm founded in 1997 by former college football linebacker Thane Ritchie. The company has offices in New York and Menlo Park, California. About Ritchie (Ireland) Ritchie Risk-Linked Strategies Trading (Ireland), Ltd., and Ritchie Risk-Linked Strategies Trading (Ireland) II, Ltd., are Dublin-based funds of hedge fund group Ritchie Capital Management. The Debtors were formed as special purpose vehicles to invest in life insurance policies in the life settlement market. The Debtors' acquisition of the policies, and their contractual and other rights of payment related thereto, are based upon, among other things, a series of agreements providing for the purchase, financing, servicing and management of the Policies in anticipation of a securitization transaction. RITCHIE (IRELAND): Case Summary & 10 Largest Unsecured Creditors ---------------------------------------------------------------- Lead Debtor: Ritchie Risk-Linked Strategies Trading (Ireland), Ltd. 4th Floor, 25-28 Adelaide Road Dublin, Ireland Bankruptcy Case No.: 07-11906 Type of Business: The Debtors are Dublin-based funds of hedge fund group Ritchie Capital Management. See http://www.ritchiecapital.com/ Debtor affiliate filing separate Chapter 11 petitions: Entity Case No. ------ -------- Ritchie Risk-Linked Strategies Trading 07-11907 (Ireland) II, Ltd. Chapter 11 Petition Date: June 20, 2007 Court: Southern District of New York (Manhattan) Judge: Burton R. Lifland Debtors' Counsel: Allison H. Weiss, Esq. Peter A. Ivanick, Esq. LeBoeuf, Lamb, Greene & MacRae, L.L.P. 125 West 55th Street New York, NY 10019 Tel: (212) 424-8069 Fax: (212) 424-8500 Estimated Assets Estimated Debts ---------------- --------------- Ritchie Risk-Linked More than More than Strategies Trading $100 Million $100 Million (Ireland), Ltd. Ritchie Risk-Linked More than More than Strategies Trading $100 Million $100 Million (Ireland) II, Ltd. A. Ritchie Risk-Linked Strategies Trading (Ireland), Ltd 's Five Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Ritchie Life Strategies junior notes; $130,127,349 Master Trust value of interest: c/o Walkers S.P.V., Ltd. $37,211,048 P.O. Box 908GT Mary Street, George Town Grand Cayman, Cayman Islands Tel: (345) 949-0010 Fax: (345) 814-8259 Ritchie Risk-Linked subordinated $39,779,582 Life Strategies Trust I securities c/o Walkers S.P.V., Ltd. P.O. Box 908GT Mary Street, George Town Grand Cayman, Cayman Islands Tel: (345) 949-0010 Fax: (345) 814-8259 Ritchie Life Strategies subordinated $26,969,208 Master Trust securities c/o Walkers S.P.V., Ltd. P.O. Box 908GT Mary Street, George Town Grand Cayman, Cayman Islands Tel: (345) 949-0010 Fax: (345) 814-8259 Sandy Run, Ltd. subordinated $20,227,452 Coventry Corporate Center securities 7111 Valley Green Road Fort Washington, PA 19034 Tel: (345) 949-0010 Fax: (215) 233-3201 Montgomery, Ltd. Bermuda servicer $8,261,161 c/o Appleby Corporate and administration Services fee Canon's Court 22 Victoria Street P.O. BoxH.M. 1179 Hamilton H.M. C.X., Bermuda Tel: (441) 298-3276 Fax: (441) 298-3355 B. Ritchie Risk-Linked Strategies Trading (Ireland) II, Ltd 's Five Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Ritchie Life Strategies junior notes; $58,545,454 Master Trust value of interest: c/o Walkers S.P.V., Ltd. $8,475,851 P.O. Box 908GT Mary Street, George Town Grand Cayman, Cayman Islands Tel: (345) 949-0010 Fax: (345) 814-8259 Ritchie Risk-Linked subordinated $17,897,369 Life Strategies Trust I securities c/o Walkers S.P.V., Ltd. P.O. Box 908GT Mary Street, George Town Grand Cayman, Cayman Islands Tel: (345) 949-0010 Fax: (345) 814-8259 Ritchie Life Strategies subordinated $12,133,809 Master Trust securities c/o Walkers S.P.V., Ltd. P.O. Box 908GT Mary Street, George Town Grand Cayman, Cayman Islands Tel: (345) 949-0010 Fax: (345) 814-8259 Sandy Run, Ltd. subordinated $9,100,289 Coventry Corporate Center securities 7111 Valley Green Road Fort Washington, PA 19034 Tel: (345) 949-0010 Fax: (215) 233-3201 Montgomery, Ltd. Bermuda servicer $1,997,749 c/o Appleby Corporate and administration Services fee Canon's Court 22 Victoria Street P.O. BoxH.M. 1179 Hamilton H.M. C.X., Bermuda Tel: (441) 298-3276 Fax: (441) 298-3355 SELBYVILLE BAY: Court Approves DLA Piper as Bankruptcy Counsel -------------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware gave Selbyville Bay Development LLC authority to employ DLA Piper US LLP as its counsel, nunc pro tunc to May 14, 2007. The firm is expected to: a) advise management concerning their fiduciary obligations to the estate, the creditors and the Court; b) assist regarding the administration of the chapter 11 case, including prosecution of motions and adversary proceedings, defense of actions commenced against the Debtor, commencement and prosecution of objections to claims, representation in the claims reconciliation process and counseling regarding the preparation of schedules, statements and operating reports; c) assist in the formulation, negotiation and confirmation of a chapter 11 plan of reorganization and related disclosure statement; and d) render such other legal services as may be requested by management and as may be required in furtherance of the chapter 11 case. The firm's professionals billing rates: Professional Designation Hourly Rate ------------ ----------- ----------- Richard M. Kremen, Esq. Attorney $600 Maria Ellena Chavez-Ruark, Esq. Attorney $485 William Countryman Paralegal $195 Designation Hourly Rate ----------- ----------- Attorney $485 - $600 Paralegals $195 The Debtor tells the Court that the firm received a $35,000 retainer. Richard M. Kremen, Esq., a partner of the firm, tells the Court that he does not have any interest materially adverse to the Debtor's estate and is a "disinterested person" as that term is defined in section 101(14) of the Bankruptcy Code. Mr. Kremen can be reached at: Richard M. Kremen, Esq. DLA Piper US LLP 6225 Smith Avenue Baltimore, Maryland 21209-3600 Tel: (410) 580-4191 Fax: (410) 580-3001 http://www.dlapiper.com/ About Selbyville Bay Based in Washington, D.C., Selbyville Bay Development LLC, a Delaware limited liability company formed in 2003 to develop real property located on Lighthouse Road, Route 54, Sussex County, Delaware, filed for chapter 11 protection on May 14, 2007, (Bankr. D. Del. Case No. 07-10664). Richard M. Kremen, Esq., and Maria Ellena Chavez-Ruark, Esq. represent the Debtor as co-counsel. Joseph H. Huston, Jr., Esq., Thomas G. Whalen, Esq., John C. Kilgannon, Esq., and Jocelyn Keynes, Esq. at Stevens & Lee P.C. represent the Debtor as Delaware Counsel. When the Debtor filed for protection from their creditors, they listed estimated assets and debts of $1 million to $100 million. The Debtors' exclusive period to file a plan expires on Sept. 11, 2007. SELBYVILLE BAY: Court Approves Stevens & Lee as Co-Counsel ---------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware gave Selbyville Bay Development LLC, authority to employ Stevens & Lee P.C. as its co-counsel, nunc pro tunc to May 14, 2007. As the Debtor's, Steven & Lee P.C. is expected to: a) advise management concerning their fiduciary obligations to the estate, the creditors and the Court; b) assist regarding the administration of the chapter 11 case, including prosecution of motions and adversary proceedings, defense of actions commenced against the Debtor, commencement and prosecution of objections to claims, representation in the claims reconciliation process and counseling regarding the preparation of schedules, statements and operating reports; c) assist in the formulation, negotiation and confirmation of a chapter 11 plan of reorganization and related disclosure statement; and d) render such other legal services as may be requested by management and as may be required in furtherance of the chapter 11 case. The firm's professionals billing rates are: Professional Designation Hourly Rate ------------ ----------- ----------- Joseph H. Huston, Esq. Shareholder $470 Thomas G. Whalen, Esq. Shareholder $350 John C. Kilgannon, Esq. Associate $330 Jocelyn Keynes, Esq. Associate $330 Stephanie L. Foster Paralegal $120 Designation Hourly Rate ----------- ----------- Shareholders $350 - $650 Associates $200 - $330 Legal Assistants $95 - $180 Paralegals $95 - $180 The Debtor tells the Court that the firm received a $15,000 retainer, of which $4,000 was drawn for prepetition services performed. Joseph H. Huston, Esq., a shareholder at Stevens & Lee P.C., assures the Court that the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Huston can be reached at: Joseph H. Huston, Esq. Steven & Lee PC 1105 North Market Street, 7th Floor Wilmington, Delaware 19801 Tel: (302) 425-3310 Fax: (610) 371-7972 http://www.stevenslee.com/ About Selbyville Bay Based in Washington, D.C., Selbyville Bay Development LLC, a Delaware limited liability company formed in 2003 to develop real property located on Lighthouse Road, Route 54, Sussex County, Delaware, filed for chapter 11 protection on May 14, 2007, (Bankr. D. Del. Case No. 07-10664). Richard M. Kremen, Esq., and Maria Ellena Chavez-Ruark, Esq. represent the Debtor as co-counsel. Joseph H. Huston, Jr., Esq., Thomas G. Whalen, Esq., John C. Kilgannon, Esq., and Jocelyn Keynes, Esq. at Stevens & Lee P.C. represent the Debtor as Delaware Counsel. When the Debtor filed for protection from their creditors, they listed estimated assets and debts of $1 million to $100 million. The Debtors' exclusive period to file a plan expires on Sept. 11, 2007. SIERRA PACIFIC: Two Affiliates Price Separate Tender Offers ----------------------------------------------------------- Sierra Pacific Resources' two wholly-owned subsidiaries, Nevada Power Company and Sierra Pacific Power Company, each has priced its tender offer for any and all of its respective series of General and Refunding Mortgage securities. Nevada Power's Tender Offer Under the terms of Nevada Power's tender offer for its 9% General and Refunding Mortgage Notes, Series G, due 2013 and assuming a settlement date of June 28, 2007, Nevada Power will pay $1,079.75 plus accrued interest for each $1,000 principal amount of Notes purchased in the offer. This price was determined by reference to a fixed spread of 50 basis points or 0.50% over the yield to August 15, 2008 based on the bid side price of the 4.125% U.S. Treasury Note due Aug. 15, 2008, as measured June 21, 2007, at 2:00 p.m. New York City time. Nevada Power's offer expired at 9:00 a.m., New York City time, on Friday, June 22, 2007, unless the offer is extended or earlier terminated by Nevada Power. Payment for tendered Notes, plus accrued interest, will be paid for in same-day funds on the settlement date, which is expected to be on or about June 28, 2007. Nevada Power intends to use its established private credit facility or the proceeds from the sale of new securities to pay the purchase price for the Notes purchased pursuant to its offer. Sierra Pacific Power's Tender Offer Under the terms of Sierra Pacific Power's tender offer for its 8% General and Refunding Mortgage Bonds, Series A, due 2008 and assuming a settlement date of June 28, 2007, Sierra Pacific Power will pay $1,022.10 plus accrued interest for each $1,000 principal amount of Bonds purchased in the offer. This price was determined by reference to a fixed spread of 50 basis points or 0.50% over the yield to maturity based on the bid side price of the 4.875% U.S. Treasury Note due May 31, 2008, as measured June 21, 2007, at 2:00 p.m., New York City time. Sierra Pacific Power's offer expired at 9:00 a.m., New York City time, on Friday, June 22, 2007, unless the offer is extended or earlier terminated by Sierra Pacific. Payment for tendered Bonds will be paid for in same-day funds on the settlement date, which is expected to be on or about June 28, 2007. Sierra Pacific Power intends to use a established private credit facility or the proceeds from the sale of new securities to pay the purchase price for the Bonds purchased pursuant to the offer. Credit Suisse and Goldman, Sachs & Co. were Dealer Managers for each of the tender offers. Morrow & Co. Inc. is the Information Agent. Requests for documents may be directed to Morrow & Co., Inc. by telephone at (800) 607-0088 (toll-free) or (203) 658-9400. Questions regarding the tender offers may be directed to Credit Suisse at (800) 820-1653 (toll-free) or (212) 325-4008 (collect), or to Goldman, Sachs & Co. at (800) 828-3182 (toll-free) or (212) 902-9077 (collect). About Nevada Power Company Nevada Power Company is a regulated public utility engaged in the distribution, transmission, generation, purchase and sale of electric energy in the southern Nevada communities of Las Vegas, North Las Vegas, Henderson, Searchlight, Laughlin and their adjoining areas, including Nellis Air Force Base and the Department of Energy's Nevada Test Site in Nye County. Nevada Power provides electricity to approximately 807,000 residential and business customers. About Sierra Pacific Power Sierra Pacific Power Company is the principal utility for most of northern Nevada and the Lake Tahoe area of California. Sierra Pacific Power also distributes natural gas in the Reno-Sparks area of northern Nevada. Sierra Pacific Power provides electricity to approximately 361,000 residential and business customers and natural gas to approximately 140,000 residential and business customers. About Sierra Pacific Resources Headquartered in Las Vegas, Nevada, Sierra Pacific Resources (NYSE: SRP) -- http://www.sierrapacificresources.com/-- is a holding company whose principal subsidiaries, Nevada Power Company and Sierra Pacific Power Company, are electric and electric and gas utilities, respectively. Sierra Pacific Resources also holds relatively modest non-utility investments through other subsidiaries. * * * Moody's Investors Services rated Sierra Pacific Resources' long term corporate family rating at 'Ba2' and probability of default at 'Ba3'. Standard and Poor's assigned a 'BB-' rating on the company's long term foreign and local issuer credit. The outlook is stable. Fitch assigned 'BB-' rating on the company's long term issuer default. SOLOMON DWEK: Case Summary & 130 Largest Unsecured Creditors ------------------------------------------------------------ Lead Debtor: Solomon Dwek 311 Crosby Avenue Deal, NJ 07723 Bankruptcy Case No.: 07-11757 Debtor-affiliate filing separate chapter 11 petition on June 22, 2007: Entity Case No. ------ -------- Neptune Medical, LLC 07-18766 Debtor-affiliates that filed separate chapter 11 petitions on June 13, 2007: Entity Case No. ------ -------- Dwek Raleigh, L.L.C. 07-18316 Greenwood Plaza Acquisitions, L.L.C. 07-18317 Sinking Springs II, L.L.C. 07-18318 Sinking Springs, L.P. 07-18320 Debtor-affiliates that filed separate chapter 11 petitions on May 1, 2007: Entity Case No. ------ -------- 1631 Highway 35, L.L.C. 07-16041 167 Monmouth Road, L.L.C. 07-16045 2100 Highway 35, L.L.C. 07-16048 230 Broadway, L.L.C. 07-16049 264 Highway 35, L.L.C. 07-16052 374 Monmouth Road, L.L.C. 07-16053 55 North Gilbert, L.L.C. 07-16054 601 Main Street, L.L.C. 07-16055 6201 Route 9, L.L.C. 07-16057 Aberdeen Gas, L.L.C. 07-16058 Bath Avenue Holdings, L.L.C. 07-16060 Belmar Gas, L.L.C. 07-16061 Berkeley Heights Gas, L.L.C. 07-16062 Brick Gas, L.L.C. 07-16064 Dover Estates, L.L.C. 07-16065 Dwek Gas, L.L.C. 07-16066 Dwek Hopatchung, L.L.C. 07-16067 Dwek Income, L.L.C. 07-16068 Dwek Ohio, L.L.C. 07-16069 Dwek Pennsylvania, L.P. 07-16071 Dwek Wall, L.L.C. 07-16072 Dwek Woodbridge, L.L.C. 07-16073 Kadosh, L.L.C. 07-16074 Lacey Land, L.L.C. 07-16075 Monmouth Plaza, L.L.C. 07-16076 P&Y Holdings, L.L.C. 07-16077 Sugar Maple Estates, L.L.C. 07-16078 West Bangs Avenue, L.L.C. 07-16079 Beach Mart, L.L.C. 07-16104 Debtor-affiliates that filed separate chapter 11 petitions on Feb. 28, 2007: Entity Case No. ------ -------- Dwek Trenton Gas, LLC 07-12794 Neptune Gas, LLC 07-12796 Route 33 Medical, LLC 07-12798 1111 Eleventh Avenue 07-12799 Dwek North Olden, LLC 07-12800 Dwek State College, LLC 07-12802 Type of Business: The Debtors are properties of real estate developer Solomon Dwek. Mr. Dwek was accused of defrauding P.N.C. Bank by depositing a bad $25-million check on April 24, 2006 and then transferring out most of the money the next day. An involuntary chapter 7 petition was filed against Mr. Dwek on Feb. 9, 2007 with the U.S. Bankruptcy Court for the District of New Jersey. On Feb. 22, 2007, the Court converted the case to a chapter 11 reorganization under supervision of a trustee. Chapter 11 Petition Date: May 5, 2007 Court: District of New Jersey (Trenton) Debtors' Counsel: Timothy P. Neumann, Esq. Broege, Neumann, Fischer & Shaver, L.L.C. 25 Abe Voorhees Drive Manasquan, NJ 08736 Tel: (732) 223-8484 Financial condition of debtor-affiliate filing on June 22, 2007: Total Assets Total Debts ------------ ----------- Neptune Medical, LLC $3,206,961 $2,865,749 Financial condition of debtor-affiliates that filed on June 13, 2007: Total Assets Total Debts ------------ ----------- Dwek Raleigh, L.L.C. $6,250,291 $5,120,286 Greenwood Plaza $7,384,944 $5,332,924 Acquisitions LLC Sinking Springs II, L.L.C. $4,317,585 $2,676,477 Sinking Springs, L.P. $3,958,181 $3,919,222 Financial condition of debtor-affiliates that filed on May 1, 2007: Total Assets Total Debts ------------ ----------- 1631 Highway 35, L.L.C. $969,824 $235,379 167 Monmouth Road, L.L.C. $2,010,780 $782,872 2100 Highway 35, L.L.C. $3,364,561 $20,126,806 230 Broadway, L.L.C. $1,024,775 $5,411,444 264 Highway 35, L.L.C. $804,745 $422,973 374 Monmouth Road, L.L.C. $756,984 $5,115,620 55 North Gilbert, L.L.C. $5,100,907 $3,618,102 601 Main Street, L.L.C. $2,486,713 $5,000,000 6201 Route 9, L.L.C. $1,500,048 $1,136,975 Aberdeen Gas, L.L.C. $300,100 $75 Bath Avenue Holdings, L.L.C. $427,386 $5,002,253 Belmar Gas, L.L.C. $902,777 $7,000,000 Berkeley Heights Gas, L.L.C. $3,765,774 $9,590,389 Brick Gas, L.L.C. $569,110 $0 Dover Estates, L.L.C. $5,000,000 $2,078,935 Dwek Gas, L.L.C. $3,909,148 $3,000,000 Dwek Hopatchung, L.L.C. $901,509 $645,506 Dwek Income, L.L.C. $8,491,631 $12,071,262 Dwek Ohio, L.L.C. $630,065 $504,185 Dwek Pennsylvania, L.P. $1,505,779 $1,142,160 Dwek Wall, L.L.C. $4,283,804 $2,213,029 Dwek Woodbridge, L.L.C. $4,995,979 $2,863,687 Kadosh, L.L.C. $900,121 $750,395 Lacey Land, L.L.C. $850,027 $290,075 Monmouth Plaza, L.L.C. $752,829 $399,380 P&Y Holdings, L.L.C. $637,630 $338,640 Sugar Maple Estates, L.L.C. $7,520,388 $5,472,159 West Bangs Avenue, L.L.C. $500,536 $248,343 Beach Mart, L.L.C. $855,318 $5,468,135 Creditors who filed involuntary chapter 7 petitions against Solomon Dwek: Entity Nature of Claim Claim Amount ------ --------------- ------------ PNC Bank, N.A. Loans $22,993,731 5th Avenue and Wood Street Pittsburgh, PA 15222 Washington Mutual Bank Loans $22,660,558 1301 2nd Avenue WMC 3501 Seattle, WA 98101 Four Star Builders Indemnification of $58,387 1301 Route 33, Suite 3E Claim on Home Neptune, NJ 07753 Buyer's Warranty A. 2100 Highway 35, LLC's Largest Unsecured Creditor: Entity Nature of Claim Claim Amount ------ --------------- ------------ Barry Kantrowitz February, March $8,750 167 Monmouth Road & April due at Oakhurst, NJ 07755 $2,917 per month B. 1631 Highway 35, LLC's Two Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Michael Gilman commissions $7,177 708 Highway 35 Neptune, NJ 07753 management fees $2,420 Ocean Dinettes lease of premises unknown 1631 Highway 35 at 1631 Highway 35 Neptune, NJ 07753 C. 167 Monmouth Road, LLC's Two Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ J.C.P.&L. utilities unknown P.O. Box 3687 Akron, OH 44309-3687 N.J.N.G. unknown P.O. Box 1378 Belmar, NJ 07715-0001 D. 230 Broadway, LLC's Nine Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Gilman Commercial Realty, property $2,160 L.L.C. management fees 708 Highway 35 -- 3 months at Neptune, NJ 07753 $648 Baris Alkoc Hens, Inc. lease deposit unknown 230 Broadway Unit 3 Long Branch, NJ 07740 Barry Associates, L.L.C. commissions unknown 1907 Highway 35 Oakhurst, NJ 07740 Brigitte Lee lease deposit unknown Crown Fried Chicken lease deposit unknown Fredy Morales & Howard Canty lease deposit unknown Gina Aponte lease deposit unknown Jose Taveras lease deposit on unknown Grocery Store at 230 Broadway Luis & Giovanna DaCosta lease deposit unknown E. 264 Highway 35, LLC's Five Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Valley National Bank multi-use $413,348 P.O. Box 988 commercial Wayne, NJ 07474-0988 building located at 264 Highway 35, Eatontown, NJ; value of security: $800,000 Communications Depot, Inc. lease deposit $8,000 264 Highway 35 Eatontown, NJ 07724 N.J.N.G. $1,186 P.O. Box 1378 Belmar, NJ 07715-0001 St. Paul's Travelers Insurance $311 J.C.P.&L. $128 F. 374 Monmouth Road, LLC's Five Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ A.E.M. Communications, Inc. tenant unknown 374 Monmouth Road West Long Branch, NJ 07764 Alcaron, Raphael & DeJesus tenant unknown 374 Monmouth Road West Long Branch, NJ 07764 Alfredo Osorio & Hector Bello tenants unknown 374 Monmouth Road West Long Branch, NJ 07764 Myroma Products, Inc. tenant unknown Nelly's Pizza tenant unknown G. 55 North Gilbert, LLC's Two Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Broadway Premium Funding Corp. insurance $20,734 P.O. Box 277493 Atlanta, GA 30384-7493 Coastal Property Maintenance, property $241 L.L.C. management H. 601 Main Street, LLC did not submit a list of its largest unsecured creditors. I. 6201 Route 9, LLC's Largest Unsecured Creditor: Entity Nature of Claim Claim Amount ------ --------------- ------------ Hochberg, Addeo & Polacco, $100 L.L.C. 1 Industrial West Eatontown, NJ 07724 J. Aberdeen Gas, LLC's Two Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Hochberg, Addeo & Polacco, $75 L.L.C. 1 Industrial West Eatontown, NJ 07724 N.J.D.E.P. unknown 401 East State Street Trenton, NJ 08625-0402 K. Bath Avenue Holdings, LLC's Five Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Deborah Scott lease deposit $1,200 317-325 Bath Avenue Long Branch, NJ 07740 Kensington CT. Condominium $720 Association P.O. Box 4039 Long Branch, NJ 07740 Hochberg, Addeo & Polacco, $175 L.L.C. 1 Industrial West Eatontown, NJ 07724 N.J.N.G. $156 J.C.P.&L. $2 L. Belmar Gas, LLC did not submit a list of its largest unsecured creditors. M. Berkeley Heights Gas, LLC did not submit a list of its largest unsecured creditors. N. Brick Gas, LLC's Largest Unsecured Creditor: Entity Nature of Claim Claim Amount ------ --------------- ------------ N.J.D.E.P. unknown 401 East State Street Trenton, NJ 08625-0402 O. Dover Estates, LLC's Three Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Four Star Builders unknown 1301 Route 33, Suite 3-E Neptune, NJ 07753-5181 Henry L. Kent-Smith, Esq. land use attorney unknown Saul Ewing 750 College Road East Princeton, NJ 08540-6617 Kenderian-Zilinski unknown Associates, P.A. 1955 Highway 34, Building 1-A Wall, NJ 07719 P. Dwek Gas, LLC's Four Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ D.M.R. Lawns & Landscapes, Inc. $1,101 28 Broad Street Eatontown, NJ 07724 Arthur Addeo, C.P.A. $150 Hochberg, Addeo & Polacco, L.L.C. 1 Industrial West Eatontown, NJ 07724 Coastal Lawn Services, $27 L.L.C. Attorney General, unknown State of New Jersey N.J.D.E.P. unknown Q. Dwek Hopatchung, LLC's Largest Unsecured Creditor: Entity Nature of Claim Claim Amount ------ --------------- ------------ Broadway Premium Funding Corp. insurance $4,429 P.O. Box 277493 Atlanta, GA 30384-7493 R. Dwek Income, LLC's 14 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ G.K. Commercial Realty Group $33,918 P.O. Box 331 Baptistown, NJ 08803-0331 J. Campoli & Sons trade debt $1,564 28 Milton Street Cresskill, NJ 07626 Coastal Property property $1,444 Maintenance, L.L.C. management 167 Monmouth Road Oakhurst, NJ 07755 P.S.E.&G. utilities $1,366 Capital Property property $1,322 Management, L.L.C. management United Water New Jersey utilities $44 Chakeema Deans security unknown deposit Corlies Convenience Store security unknown deposit E-Techknowledge, Inc. security unknown deposit Mascott security unknown deposit P.N.C. Financial Services security unknown Group deposit Ricko Transport, Inc. security unknown deposit Tyhisa Farrell security unknown deposit Yang's Restaurant, Inc. security unknown deposit S. Dwek Ohio, LLC did not submit a list of its largest unsecured creditors. T. Dwek Pennsylvania, LP's Three Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Premium Assignment Corporation $5,659 3522 Thomasville Road P.O. Box 3066 Tallahassee, FL 32315 Dwek Ohio, L.L.C. $5,000 167 Monmouth Road Oakhurst, NJ 07755 Corporation Service Company $583 P.O. Box 13397 Philadelphia, PA 19101-3397 U. Dwek Wall, LLC did not submit a list of its largest unsecured creditors. V. Dwek Woodbridge, LLC's Largest Unsecured Creditor: Entity Nature of Claim Claim Amount ------ --------------- ------------ Dwek Ohio, L.L.C. $10,000 167 Monmouth Road Oakhurst, NJ 07755 W. Kadosh, LLC's Largest Unsecured Creditor: Entity Nature of Claim Claim Amount ------ --------------- ------------ Coastal Property Maintenance, property $395 L.L.C. management 167 Monmouth Road Oakhurst, NJ 07755 X. Lacey Land, LLC's Five Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Arthur Addeo, C.P.A. $75 Hochberg, Addeo & Polacco, L.L.C. 1 Industrial West Eatontown, NJ 07724 Four Star Builders unknown 1301 Route 33, Suite 3-E Neptune, NJ 07753-5181 Henry L. Kent-Smith, Esq. land use attorney unknown Saul Ewing 750 College Road East Princeton, NJ 08540-6617 Kenderian-Zilinski engineering firm unknown Associates, P.A. Monteforte Architectural services unknown Studio Y. Monmouth Plaza, LLC did not submit a list of its largest unsecured creditors. Z. P&Y Holdings, LLC did not submit a list of its largest unsecured creditors. AA. Sugar Maple Estates, LLC did not submit a list of its largest unsecured creditors. AB. West Bangs Avenue, LLC's Three Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Coastal Property Maintenance, property $120 L.L.C. management 167 Monmouth Road Oakhurst, NJ 07755 Four Star Builders unknown 1301 Route 33, Suite 3-E Neptune, NJ 07753-5181 Kenderian-Zilinski unknown Associates, P.A. 1955 Highway 34, Building 1-A Wall, NJ 07719 AC. Beach Mart, LLC's Two Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Two Rivers Water Reclamation $196 Authority 1 Highland Avenue Monmouth Beach, NJ 07750 Cutting Edge Lawn Service, $160 L.L.C. 17 Tall Oaks Drive Hazlet, NJ 07730 AD. Dwek Raleigh, LLC's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ A.D.T. Security Services, Inc. unknown P.O. Box 371967 Pittsburgh, PA 15250 AT&T unknown P.O. Box 2971 Omaha, NE 68103 Boulevard Gold Exchange lease unknown 1100 North Raleigh Boulevard Raleigh, NC 27610 Citi Trends lease unknown Family Dollar lease unknown Food Lion #757 lease unknown H.&R. Block Field Real Estate lease unknown Rent A Center #371 lease unknown Simply Fashion Stores, Inc. lease unknown Subway #13926 5298.99 unknown Mr. Freeze Records lease unknown Dominion Healthcare security deposit $3,000 Services on lease Phyllis Branch security deposit $2,800 on lease Fresh & Clean security deposit $2,383 on lease Messiah Clothing, Inc. security deposit $1,500 on lease Beauty Mart security deposit $1,400 on lease Foxy Nails security deposit $1,050 on lease Southeastern Protective security services $1,200 Services Lams Garden Restaurant security deposit $944 on lease BellSouth $49 AE. Greenwood Plaza Acquisitions, LLC's 16 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Advance America lease unknown 246 Bypass 72 Northwest Greenwood, SC 29649 Bank of America lease unknown 246 Bypass 72 Northwest Greenwood, SC 29649 Blockbuster Videos, Inc. lease unknown 246 Bypass 72 Northwest Greenwood, SC 29649 Dollar General Corp. lease unknown Farmers Furniture lease unknown Great Wall Chinese lease unit 70 unknown Restaurant lease unit 80 unknown K-Mart Corp. lease, Store No. unknown 7058 Rent-A-Center #2115 lease unknown Ruby Tuesday #4527 lease unknown Wharton Realty Group, Inc. unknown Sylvan Learning Center lease unknown Palmetto Pizza Palace lease security $2,096 deposit U.S. Auto Insurance Co. lease security $1,500 deposit Upstate Telecom, Inc. security deposit $1,458 on leased premises M.&M. Income Tax Services lease security $1,135 deposit Lee Nails lease security $900 deposit AF. Sinking Springs II, LLC's Seven Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Blockbuster Videos, Inc. lessee unknown 4870 Penn Avenue Reading, PA 19608-8601 Cun Yi China Moon lessee unknown 4870 Penn Avenue Reading, PA 19608-8601 Dijan, Inc. lessee unknown 4870 Penn Avenue Reading, PA 19608-8601 P.A. Liquor Control Board lessee unknown Redners Quick Stop lessee unknown Supercuts, Inc. #80014 lessee unknown Wharton Realty Group, Inc. unknown Senor Taco lease deposit $1,250 AG. Sinking Springs, LLC's Two Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Tax Collector, Ann Marie Girard value of security: unknown P.O. Box 98 $3,900,000; value Wernersville, PA 19565 of senior lien: $3,919,222 Redners Quick Stop lease space no. unknown Route 422 & Krick Lane 10 South Heidelberg, PA AF. Neptune Medical, LLC's Nine Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Dickstein Associates Agency Insurance $18,850 4001 Asbury Avenue Neptune, NJ 07753 Don Choi, M.D. Lease of Unknown 2100 Corlies Avenue Office Space Suite 17 Neptune, NJ 07753 NJ American Water co. Utilities $232 P.O. Box 371331 Pittsburgh, PA 15250-7331 Dr. W. Dean Adams Lease Unknown Jersey Shore Radiology Lease Unknown Lookman Odejobi, M.D. Lease Unknown Michael Weinblatt, DPM Lease Unknown Paul Silbert, M.D. Lease Unknown Rami Geffner, M.D. Lease Unknown STANDARD DRILLING: Posts $1.7 Mil. Net Loss in Qtr. Ended March 31 ------------------------------------------------------------------ Standard Drilling Inc. reported a net loss of $1,708,023 on zero revenues for the first quarter ended March 31, 2007, compared with a net loss of $3,624,041 on revenues of $473,163 for the same period last year. For the three months ended March 31, 2007, the company had no revenues. For the three months ended March 31, 2007, operating expenses totaled $1,629,610. Of this amount, a total of $468,398 was for costs associated with general and administrative expenses, $115,681 was for professional fees principally associated with capital raising activities, $188,869 was for depreciation, and $856,662 was for compensation expenses. The net loss is primarily attributable to the lack of operating revenues to support general and administrative costs and capital expenditures. As of March 31, 2007, the bank had a bank overdraft of $2,391. For the period ending March 31, 2007, net cash used in operating activities was $410,166 primarily attributed to a net loss of $1,708,023 in the period offset by an increase in accounts payable of $1,206,918. At March 31, 2007, the company's consolidated balance sheet showed $21,888,220 in total assets, $9,923,654 in total liabilities, and $11,964,563 in total stockholders' equity. The company's consolidated balance sheet at March 31, 2007, also showed strained liquidity with $431,705 in total current assets available to pay $9,923,657 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?211b Going Concern Doubt Moore & Associates, in Las Vegas, expressed substantial doubt about Standard Drilling Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2006. The auditing firm reported that Standard Drilling Inc. has commitments for the purchase of equipment that exceed available funds, has no revenues, and has generated operating losses since inception. About Standard Drilling Standard Drilling Inc. (OTC BB: STDRE.OB) was organized to provide contract land drilling services to independent and major oil and gas exploration and production companies. As of March 31, 2007, the company has one 1500 horsepower land drilling rig and certain key components and partial inventory for two 1500 horsepower rigs which are under construction. The company's drilling and rig construction operations are currently idle as management and the company's board of directors are currently evaluating strategic options in light of changing market conditions and the company's inability to secure additional financing. STEWART ENT: Moody's Affirms Corporate Family Rating at Ba3 ----------------------------------------------------------- Moody's Investors Service affirmed the Ba3 Corporate Family Rating of Stewart Enterprises, Inc. and assigned a Ba3 rating to the proposed $250 million convertible note offering. Concurrently, Moody's raised the ratings on the $125 million senior secured revolver to Baa3 from Ba2 and on the existing 6.25% senior notes to Ba3 from B1. Moody's expect to withdraw the Ba2 rating assigned to the $162.8 million term loan upon the closing of the refinancing. The rating outlook remains stable. On June 20, 2007, Stewart announced a proposed $250 million convertible note offering. The company also expects to enter into a convertible note hedge transaction with an affiliate of one of the initial purchasers of the notes and a warrant transaction with the same party. The net effect of the hedge and warrant transactions will be to increase the effective conversion premium above the base premium. The proceeds from the convertible note offering are expected to be used to repay the remaining $162.8 million balance outstanding under the term loan B, pay the net cost of the hedge and warrant transactions, pay other transaction fees and expenses and repurchase common stock in negotiated transactions The upgrade of the ratings on the revolving credit facility and the existing 6.25% notes reflects the reduction in secured debt in the capital structure pro forma for the term loan repayment. The Baa3 revolving credit facility rating also benefits from additional debt cushion in the form of the unsecured convertible notes. The convertible note refinancing will modestly weaken credit metrics with a $90 million increase in net debt partially offset by lower cash interest expense. Pro forma for the refinancing, Stewart will remain adequately positioned in the Ba3 rating category based on key financial strength metrics. The ratings remain constrained by flat death rates, growing demand for cremations, increasing competition from traditional and non- traditional competitors and legal and regulatory risks. The ratings are supported by a large portfolio of funeral and cemetery properties with leading market positions, strong operating margins and a stable revenue and cash flow stream supported by a large backlog of preneed funeral and cemetery contracts. Moody's took these rating actions: -- Assigned $125 million senior convertible notes due 2014, Ba3 (LGD 4, 56%) -- Assigned $125 million senior convertible notes due 2016, Ba3 (LGD 4, 56%) -- Upgraded $125 million revolving credit facility due 2009, to Baa3 (LGD 1, 2%) from Ba2 (LGD 3, 41%) -- Upgraded $200 million 6.25% senior notes (guaranteed) due 2013, to Ba3 (LGD 4, 56%) from B1 (LGD 4, 60%) -- Affirmed $162.8 million term loan B due 2011, Ba2 (LGD 3, 41%)- rating expected to be withdrawn upon completion of the refinancing -- Affirmed Corporate Family Rating, Ba3 -- Affirmed Probability of Default Rating, Ba3 The stable ratings outlook anticipates modest revenue growth and stable operating margins. Cash flow from operations is expected to be utilized to fund capital expenditures, dividends and share repurchases. Stewart is the second largest provider of funeral and cemetery products and services in the death care industry in the United States. As of May 31, 2007, Stewart owned and operated 226 funeral homes and 142 cemeteries in 25 states within the United States and Puerto Rico. Stewart reported revenues of about $530 million in the twelve-month period ended April 30, 2007. STEWART ENTERPRISES: S&P Rates Proposed $250 Million Notes at BB- ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' rating to Stewart Enterprises Inc.'s proposed $125 million senior convertible notes due 2014 and $125 million senior convertible notes due 2016. The notes rank equally with all of Stewart's existing and future senior unsecured indebtedness. The notes are convertible into common stock under certain circumstances or, in lieu of common stock, into cash or a combination of cash and common stock. Stewart is expected to use the net proceeds to repay the remaining balance of about $164 million of its term loan B and repurchase about $60 million of its Class A common stock. The balance of the net proceeds will be used to enter into convertible note hedge and warrant transactions with an affiliate of the initial purchasers. At the same time, we lowered the corporate credit rating to 'BB-' from 'BB'. The outlook is stable. The bank loan issue rating on Stewart's $125 million senior secured revolving credit facility remains 'BB+', two notches above the corporate credit rating. The recovery rating has been revised to '1', indicating expectations for very high recovery (90% to 100%) in the event of a payment default, from '2'. "We took these actions because the term loan B will be repaid, increasing the recovery prospects for the bank facility in a distress scenario to more than 90%," explained Standard & Poor's credit analyst Rivka Gertzulin. "When the transaction is complete, the issue and recovery ratings on the senior secured term loan B will be withdrawn." Because the term loan B will be repaid, Standard & Poor's raised the rating on Stewart's $200 million senior unsecured notes due 2013 to 'BB-' from 'B+'. The priority debt is less than 15% of assets. Therefore, the unsecured notes are not notched, in accordance with Standard & Poor's criteria. The lower corporate credit rating reflects Stewart's more aggressive financial policy and higher debt burden. Although Stewart has increased its free cash flow by lowering its interest expense, S&P do not expect the company to use cash for debt reduction. Instead, we expect the company to use free cash flow for share repurchases, dividends, and acquisitions. The speculative-grade rating on Stewart reflects the company's operating concentration in a competitive and fragmented industry with small, though predictable, long-term growth prospects, and a rising consumer preference for lower cost services. The company's relatively efficient operations, large contracted revenue backlog, and good cash flow partially offset these factors. TELEPHONE & DATA: S&P Affirms BB+ Rating and Removes Watch ---------------------------------------------------------- Standard & Poor's Ratings Services affirmed the ratings on Chicago-based Telephone & Data Systems Inc. and 80%-owned wireless subsidiary United States Cellular Corp., including the 'BB+' corporate credit ratings, and removed them from CreditWatch. The outlook is developing. "Given company's investment-grade business profile and modest leverage, the developing outlook reflects significant upside to the rating," said Standard & Poor's credit analyst Catherine Cosentino. "However, the rating is severely weakened by the company's internal control shortfalls." These weaknesses resulted in delays in the company's financial reporting in the past 18 months and a need for repeated waivers from certain lenders and credit counterparties. If TDS can demonstrate that it has sufficient systems and personnel in place to ensure that the recent spate of accounting problems will not be repeated, then the fundamental strengths of the company should support an upgrade to at least the mid-"BBB" level. Conversely, if the company has further reporting delays that suggest weaknesses in reporting still exist, it would reduce our confidence in management's ability to operate the business effectively and prompt a further downgrade. The ratings were initially lowered and placed on CreditWatch with negative implications on Nov. 7, 2006, after TDS said it would restate its financial results for the years 2002 through 2005, as well as quarterly information for 2004, 2005, and the first half of 2006. These delays followed the company's comprehensive review of its accounting practices due to its discovery of errors in other accounting areas, which had delayed a number of filings in 2005 and 2006. TDS, a diversified telecommunications provider, subsequently experienced other delays in reporting, prompting us to lower the ratings twice. With the filing of its 10-K for 2006 and 10-Q for the first quarter of 2007 on June 19, 2007, the company is current with its financial reporting. TLC VISION: S&P Lowers Bank Loan Rating to B+ from BB- ------------------------------------------------------ Standard & Poor's Ratings Services revised its bank loan and recovery ratings on St. Louis, Missouri-based TLC Vision Corp.'s proposed financing. The financing consists of a $25 million revolving credit facility and an $85 million term loan B. The bank loan rating on the $110 million senior secured credit facility has been lowered to 'B+' from 'BB-'. The recovery rating has been revised to '2', indicating expectations for substantial recovery (70%-90%) in a default scenario, from '1'. "The lower ratings are based on the expected challenges of securing all guarantees from less than wholly-owned subsidiaries of the company," explained Standard & Poor's credit analyst Cheryl Richer. All ratings are based on preliminary offering statements and are subject to review upon final documentation. Proceeds of the term loan B, in addition to about $40 million of cash on hand, will be used to finance up to a 20 million-share repurchase. Ratings List TLC Vision (USA) Corp. Downgraded To From -- ---- Senior Secured B+ BB- Rating Revised TLC Vision (USA) Corp. Senior Secured (Recovery Rtg) 2 1 TRIUMPH HEALTHCARE: S&P Affirms B Corporate Credit Rating --------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Triumph HealthCare Holdings Inc. The outlook is negative. At the same time, S&P revised the bank loan and recovery ratings on Triumph HealthCare Second Holdings LLC. S&P lowered the rating on the first-lien term loan B to 'B+' from 'BB-'. The recovery rating has been revised to '2', indicating expectation of substantial (70%-90%) recovery in the event of a payment default, from '1'. S&P lowered the rating on the second-lien term loan C to 'CCC+' from 'B-'. The recovery rating has been revised to '6', indicating expectation of negligible (0%-10%) recovery in the event of a payment default, from '5'. The borrower is a wholly owned subsidiary of Triumph HealthCare Holdings Inc. "These rating actions reflect the company's pending increase of its first-lien term loan by $76 million and increase of its second-lien term loan by $10 million," explained Standard & Poor's credit analyst David Peknay. "Proceeds from the additional debt will be used to fund an acquisition and a $50 million dividend; the company last paid a dividend less than a year ago." TWEETER HOME: Seeks Court Approval for July 10 Auction ------------------------------------------------------ Tweeter Home Entertainment Group Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware for permission to pursue a sale process under which they will solicit a stalking horse bidder or bidders for all or a part of their business, or a potential refinancing or equity investment in support of a plan of reorganization. For the past several months, the Debtors and their advisors have aggressively pursued an equity investment, a refinancing of their existing senior secured credit facility or a sale of some or all of their assets. The Debtors received expressions of interest from several interested third parties for certain of their assets or businesses. Because of their liquidity situation, however, the Debtors were unable to enter into definitive agreements with any party. The Debtors believe that it is in the best interest of their estates and creditors to seek offers to sell: 1. their inventory through a store closing liquidation sale; 2. some or all of their assets as a going concern; or 3. assets like their 18.75% equity interest in Tivoli Audio LLC, a privately held designer and maker of consumer electronics; their intellectual property rights; leases; or lease designation rights. The Debtors believe conducting an auction with respect to each sale, and a final auction among bidders submitting the highest or otherwise best offers will enable them to best assess their restructuring alternatives, maximize value and minimize expenses incurred. The Debtors also seek permission to enter into a stalking horse agreement with a bidder to establish a minimum acceptable bid at which to begin the Store Closing, Going Concern or Miscellaneous Asset Auctions. The Debtors intend to provide a Stalking Horse Bidder with a termination fee of up to, but not greater than: -- 3%, of the cash purchase price set forth in the Stalking Horse Agreement, with respect to any Stalking Horse Agreement that they enter into by June 22, 2007; and -- 2%, of the cash purchase price set forth in the Stalking Horse Agreement, with respect to any Stalking Horse Agreement that they enter into after June 22 and before July 9, 2007, at 9:00 a.m. The Termination Fee will not be payable if the Stalking Horse Agreement contains a "due diligence" or financing contingency. The Termination Fee will be paid in the event the Stalking Horse Bidder is not the successful bidder at the Final Auction. The Debtors will not offer two Termination Fees with respect to any bid covering the same assets. The Debtors ask the Court to schedule the Store Closing Auction on July 10, 2007, and the sale hearing on July 13. Bids are due July 9, 2007, at 11:00 a.m. The Debtors prefer bids that are unconditional and contemplate sales that may be consummated on or soon after the July 13 hearing. Bidders are required to submit a good faith deposit equal to 10% of the cash purchase price. The Store Closing Auction will remain open until both the Going Concern Auction and the Miscellaneous Asset Auction are closed. The Debtors will consult with representatives of General Electric Capital Corporation and any official committee of unsecured creditors appointed in their cases with regard to offers received. The Court will convene a hearing on June 26, 2007, at 3:00 p.m. to consider the Debtors' request. Objections, if any, are due June 25. Simon Property Group Objects Simon Property Group, Inc., manages retail shopping centers, including community shopping centers. The Debtors lease premises on the shopping centers under five non-residential real property leases. Simon Property Group wants the Debtors to clarify (i) whether adequate assurance of future performance will be provided by an assignee of the Debtors' leases; (ii) details of any going out of business sales to be conducted; and (iii) their ability to promptly cure defaults under the leases. The Debtors are in default under the leases, Simon Property Group relates. The Debtors have yet to pay certain prepetition and postpetition rent. All prospective purchases should have accomplished their due diligence and should take the leases, subject to any and all limitations, covenants and restrictions, Simon Property Group asserts. 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: Wants to Continue Selling Consigned Inventory ----------------------------------------------------------- Tweeter Home Entertainment Group Inc. and its debtor-affiliates were parties to various consignment sales agreements as of their bankruptcy filing. Pursuant to the consignment agreements, the Debtors obtained electronic and other goods for resale. As of June 5, 2007, the Debtors held roughly $8,000,000 of inventory provided pursuant to various Consignment Agreements from about 10 different consignors. The Debtors' ability to continue to sell the Consigned Inventory is a critical part of their restructuring efforts, Gregory W. Hunt, senior vice president and chief financial officer of Tweeter Home, relates. Many of the Consignors depend on their business with the Debtors. The Debtors also depend on the availability of Consigned Inventory on favorable trade terms to offer the fullest range of retail electronic goods to their customers, Mr. Hunt says. In this regard, the Debtors seek authority from the U.S. Bankruptcy Court for the District of Delaware to continue to sell the Consigned Inventory in the ordinary course of business. The Debtors also seek permission to provide, as adequate protection to the Consignors in connection with the sale: 1. a lien in the sale proceeds; and 2. regular reporting on the progress of the sale. According to Mr. Hunt, the Debtors recognize that certain of the Consignors may have valid and properly perfected interests in the inventory or the related proceeds. The Debtors also seek permission to use the sale proceeds for repayment of their credit line, working capital, capital expenditures, general corporate purposes, continuation of their business, and funding their ongoing restructuring efforts. The Debtors also the Court to establish a deadline for Consignors to assert claims against or security interests in the Consigned Inventory. The Debtors intend to serve a notice on all Consignors. The Debtors propose that the Consignment Claims Bar Date be fixed as 30 days after service of the notice. All Consignors seeking payment of Consignment Claims from the Debtors will be required to submit a request by the Consignment Claims Bar Date, Mr. Hunt says. Requests that are not timely filed and served will be disallowed, and the holder of the Consignment Claim will be forever barred from asserting the Claim against the Debtor and will not be entitled to receive any distribution on account of that Claim. "Many of the Consignors may file various motions seeking relief from the automatic stay to exercise rights they may have to demand return of Consigned Goods or seeking to compel the Debtors to assume or reject their consignment agreements," Mr. Hunt says. "To the extent possible, the Debtors prefer to avoid such litigation in favor of continuing their prepetition relationships with Consignors." The Debtors also want to pay prepetition claims of Consignors in the ordinary course of business and to honor the terms of their Consignment Agreements, in the Debtors' discretion. To the extent the Debtors pay the Consignors' prepetition Claims but the Consignors do not continue to honor their customary trade terms, the Debtors want the payment deemed a payment for postpetition Consigned Inventory and applied to reduce any administrative expense liability to the Consignors. The Court will convene a hearing July 13, 2007, at 9:30 a.m. to consider approval of the Debtors' request. 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: Selects Skadden Arps as Bankruptcy Counsel -------------------------------------------------------- Tweeter Home Entertainment Group Inc. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware for authority to employ Skadden, Arps, Slate, Meagher, & Flom, LLP as their bankruptcy counsel, nunc pro tunc to June 11, 2007. The Debtors tapped Skadden Arps in an Engagement Agreement on May 7, 2007, to provide legal advice on their financial difficulties, including a possible restructuring of their financial affairs and capital structure, as well as the preparation of documents and the representation of their Chapter 11 case. Since the Engagement Agreement, the Debtors and Skadden Arps have worked closely with respect to the Debtors' financial concerns. In doing do, the firm has become familiar with the Debtors' business affairs and most of the potential legal issues that may arise in the context of the bankruptcy cases. The Debtors selected Skadden Arps because of its experience and knowledge in the rights of debtors and creditors, and Chapter 11 business reorganizations. As the Debtors' counsel, Skadden Arps will: (a) advice the Debtors with respect to their powers and duties as debtors and debtors-in-possession, in the continued management of their businesses and properties; (b) attend meetings and negotiate with representatives of creditors and other parties-in-interest, and advise and consult on the cases, including all of the legal and administrative requirements of operating in Chapter 11; (c) take all necessary action to protect and preserve the Debtors' estates, including the prosecution on behalf of the Debtors' estates, the defense of any actions commenced against those estates, negotiations concerning litigation in which the Debtors are involved, and objections to claims filed against the estates; (d) prepare, on the Debtors' behalf, necessary motions, applications, answers, orders, reports and other legal papers necessary to the administration of the Debtors' estate; (e) prepare and negotiate plans of reorganization, disclosure statements, and all related documents on the Debtors' behalf; (f) advise the Debtors in connection of any assets sale; (g) perform other necessary legal services, and provide other necessary legal advice to the Debtors; and (h) appear before the Bankruptcy Court, any other Court, and the U.S. Trustee, and protect the interests of the Debtors' estates before those parties. The Debtors will pay Skadden Arps according to the firm's customary hourly rates: Professional Hourly Rates ------------ ------------ Partners and Of-Counsel $630 to $875 Counsel and Special Counsel $595 to $665 Associates $315 to $585 Legal Assistants $160 to $250 The Debtors will also reimburse Skadden Arps for any necessary out-of-pocket expenses the firm incurs while providing services for the Debtor. With respect to restructuring matters, the Debtors initially paid Skadden Arps $150,000 as on-account cash for the advance payment of prepetition professional fees and expenses. Since the retention, Skadden Arps has sent invoices to the Debtors for $320,688 in professional services, including estimated expenses and an additional $50,000 of the On-Account Cash. Prior to bankruptcy filing, the Debtors have advanced $373,562 to Skadden Arps for the invoices, including an invoice for $200,000, $150,000 of which represents estimated expenses, and $50,000 for the replenishment of the On-Account Cash. The Debtors also advanced Skadden Arps $8,312 fir estimated Chapter 11 filing fees, separate from the On-Account Cash. Gregg M. Galardi, Esq., at Skadden Arps, states in his a declaration that the members, counsel and associates of Skadden Arps: -- do not have any connection with any of the Debtors, their affiliates, their creditors, or any other party in interest and their respective attorneys or accountants, the U.S. Trustee, the U.S. District Court for the District of Delaware, or any person employed in the said offices; -- are "disinterested persons" as the term is defined under Section 101(14) of the Bankruptcy Code; and -- do not represent any interest adverse to the Debtors and their estates. 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). VALENTEC SYSTEMS: March 31 Balance Sheet Upside-Down by $4.3 Mil. ----------------------------------------------------------------- Valentec Systems Inc. reported a net loss of $2,213,605 on revenues of $1,601,249 for the first quarter ended March 31, 2007, compared with a net loss of $119,909 on revenues of $5,972,891 for the same period ended March 31, 2006. The decrease in revenues is due to program delays experienced by Valentec's subcontractors on the AMMO and Keshet contracts as well as delays caused by the fire at the company's 40mm manufacturing facility in Louisiana. At March 31, 2007, the company's consolidated balance sheet showed $25,000,006 in total assets and $29,393,064 in total liabilities, resulting in a $4,393,058 stockholders' deficit. The company's consolidated financial statements at March 31, 2007, also showed strained liquidity with $16,058,857 in total current assets available to pay $29,129,731 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?211d Going Concern Doubt As reported in the Troubled Company Reporter on May 24, 2007, Webb & Company, P.A., of Boynton Beach, Florida, expressed substantial doubt about Valentec Systems 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 auditor pointed to the company's working capital deficiency and negative cash flows from operations. About Valentec Systems Minden, Louisiana-based Valentec Systems, Inc. -- (OTC BB: VSYNE) -- http://www.valentec.net/ -- supplies conventional ammunition, and pyrotechnic and related defense products. The company's primary focus is ground based systems and ordnance. Recently the company has entered into systems management and systems integration. VALLEY HEALTH: Operating Losses Prompt S&P to Lower Rating to B- ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating to 'B-' from 'B+' on Valley Health System, California's 1996A hospital revenue bonds. The rating action reflects the system's substantial operating losses during fiscal 2006 and the 10 months ended April 30, 2007. The outlook is negative, reflecting the possibility of further credit deterioration if operations or liquidity don't improve. "With operating losses of $9.6 million offset by non-operating revenue of $3.1 million, Valley Health System still has a negative operating margin of 3%, the largest it has ever experienced," said Standard & Poor's credit analyst Keith Dickinson. "And with a mere 21 days' cash on hand as of April 2007, the district's financial flexibility is severely limited." According to published articles, the Board of Valley Health System is negotiating a sale with at least two parties. Management, however, has not shared information regarding those discussions with Standard & Poor's. Parties interested in obtaining the assets of the district are reported to include Kaiser Permanente (rated 'A+') -- which has an exclusive agreement to negotiate for the purchase of the Moreno Valley hospital -- Prime Healthcare Services, and Select Healthcare Solutions. If a purchase occurs, VHS' debt could be retired, assumed in part or whole, guaranteed by the acquiring organization, or undergo other options. Should the system end the fiscal year with its current maximum annual debt service coverage of just 0.6% or near this level, VHS would most likely need to retain a consultant, as it is below covenant levels. Valley Health System operates three acute care hospitals located about 100 miles southeast of Los Angeles: the flagship, Hemet Valley, has 252 available beds; Menifee Valley has 84 beds; and Moreno Valley has 101 beds. The three hospitals are strategically located, and form a geographic triangle within which there is minimal competition. However, Moreno faces significant competition around its service area, including a newer county facility and other tertiary hospitals. In-patient volume at the three hospitals has remained stable, with admissions increasing by approximately 2.1% annually during the past three years to 27,932 in fiscal 2006. VASOMEDICAL INC: Inks Business Alliance with Living Data -------------------------------------------------------- Vasomedical Inc. entered into an alliance and business arrangement with Living Data Technology Corporation and its affiliates. Pursuant to the alliance agreement, Kerns Manufacturing Corp., of Living Data's affiliate, made a $1.5 million equity investment in Vasomedical through the purchase of common stock. In addition, Vasomedical has an option to sell an additional $1 million of its common stock to Kerns, subject to certain terms, restrictions and conditions. Vasomedical and Living Data also entered into agreements that grant Vasomedical exclusive right to market and distribute Living Data's external counterpulsation systems in the United States. In return, the agreement granted Living Data exclusive right to manufacture and supply products to Vasomedical. The arrangement also provides for the appointment of two representatives of Living Data to Vasomedical's board of directors, including Simon Srybnik, chairman of Kerns and Living Data. "This transaction offers us the opportunity to expand our patient base for this important medical treatment," remarked Vasomedical's newly appointed president and chief executive officer Dr. John CK Hui. "With the new capital infusion, together with our recently restructured management team, plus the addition of Living Data and Kern's business expertise, we can begin to execute a new marketing and sales plan. It is our goal in the coming months to achieve greater market penetration, to demonstrate renewed revenue growth, and to increase shareholder value." "We are extremely excited about the future of Vasomedical," remarked Mr. Abraham E Cohen, chairman of the Board of Directors of Vasomedical. "With additional capital, a new strategic alliance partner who has proven expertise in the innovative mobile ECP system from Living Data, combined with our existing products with proven clinical effectiveness, we are ready to expand our market and continue to be the leader of this noninvasive, effective, and cost efficient therapy for patients suffering from ischemic heart disease." "I am a true believer in external counterpulsation therapy, and I have personally benefited from using this noninvasive treatment regime," commented Mr. Simon Srybnik. "This alliance of two companies with great track records will create a synergy that combines the engineering and manufacturing expertise of Living Data with the leadership and reputation of Vasomedical, a company well qualified to market a product that is needed to prolong and improve the quality of life for patients across a broad spectrum of debilitating illnesses. I am confident that together we can bring the best products and services to the market, while at the same time increasing shareholder value. Vasomedical is a pioneer in the field and offers the only clinical evidence-based line worldwide. We will support Vasomedical as it expands its market presence and leadership and are open to exploring additional acquisitions and other strategic relationships." About Living Data Living Data Technology Corp. - http://www.angionew.com/-- is a New York based private company that develops and markets AngioNew(R) external counterpulsation systems for non-invasive treatment of cardiovascular diseases such as angina and CHF. Its ECP systems delivers treatment without operator intervention. Living Data offers products from its China based production facility, which is ISO 9001 and ISO 13485 certified, and in full compliance with cGMP. Living Data markets and installs AngioNew(R) systems in the United States as well in many countries in Europe and Middle and Far East. Going Concern Doubt As reported in the Troubled Company Reporter on Sept. 8, 2006, Miller Ellin & Company LLP, in New York, expressed substantial doubt about Vasomedical Inc.'s ability to continue as a going concern after auditing the company's financial statements for the fiscal year ended May 31, 2006. The auditing firm pointed to the company's recurring losses from operations and net capital deficiency. About Kerns Manufacturing Kerns Manufacturing Corp. -- http://www.kernsmfg.com/-- manufactures aircraft and rocket engine components and subassemblies for over 50 years. Its products are complex critical components vital to the safe and continuous operation of both commercial and military aircraft and rocket engines, therefore demanding the highest standards of quality assurance for excellence and precision. Kerns customer base includes General Electric, Pratt & Whitney, SNECMA in France, MTU in Germany, ITP in Spain as well as the U.S. Government. It also operates with joint ventures and partners in India and China. About Vasomedical Vasomedical Inc. (OTC BB: VASO.OB) -- http://www.vasomedical.com/ -- develops, manufactures and markets EECP(R) therapy systems to deliver its proprietary form of enhanced external counterpulsation therapy. EECP(R) therapy is a noninvasive, outpatient therapy used in the treatment of ischemic cardiovascular diseases, currently used to manage chronic stable angina and heart failure. WHOLE FOODS: To Sell 35 Stores Upon Closing of Wild Oats Merger --------------------------------------------------------------- Whole Foods Market plans to transfer all 35 Henry's and Sun Harvest store locations, and a Riverside, California, distribution center to a wholly owned subsidiary of Smart & Final Inc., a Los Angeles-based food retailer, subject to Whole Foods Market prevailing in the current lawsuit with the U.S. Federal Trade Commission concerning Whole Foods Market's merger with Wild Oats Markets Inc. and the actual closing of that merger. The Henry's and Sun Harvest stores are located in California and Texas. "We have determined that these stores do not fit into Whole Foods Market's long-term real estate and brand strategy," said Whole Foods Market CEO John Mackey. "It is important to us to ensure a smooth transition and to be open about our plans because of the employees and loyal shoppers at these locations. We believe both will be well served by Smart and Final's business focus." Smart & Final is privately held and controlled by Apollo Management, L.P., a private equity firm. Operating under the Smart & Final and Smart Foodservice Cash & Carry banners, the company operates 255 non-membership warehouse stores selling food and foodservice products to both traditional household customers and small business owners in Washington, Oregon, Idaho, California, Arizona, Nevada, and Northern Mexico. George Golleher, Chairman and Chief Executive Officer of Smart & Final said, "Smart & Final and Apollo are both very excited about the opportunity to acquire the Henry's Farmer's Market and Sun Harvest banners, particularly given the tremendous consumer interest in natural foods and high quality perishable offerings. We believe that the Henry's and Sun Harvest formats have the potential for significant new store growth and we intend to invest in the Henry's and Sun Harvest store base with a goal of opening a significant number of new stores over the next two to three years. In addition, we believe there are enhancements to the business that will serve to further accelerate comparable store sales growth and we look forward to working with all of the Henry's and Sun Harvest employees in further developing these exciting formats. Henry's and Sun Harvest will be wholly owned subsidiaries of Smart & Final and will continue with their focus on natural and organic foods. In addition, existing management of these formats will continue in their current roles." Wild Oats Markets Merger Deal On Feb. 21, 2007, Whole Foods Market and Wild Oats Markets entered into a merger agreement pursuant to which Whole Foods Market commenced a tender offer to purchase all the outstanding shares of Wild Oats Markets at a purchase price of $18.50 per share in cash, plus assumed debt. On June 12, 2007, the company and Wild Oats Markets announced the U.S. District Court for the District of Columbia had scheduled a preliminary injunction hearing to begin on July 31, 2007, and to conclude on Aug. 1, 2007, to decide whether to approve the U.S. Federal Trade Commission's application for an injunction to block the proposed merger between the two companies. Whole Foods Market and Wild Oats Markets consented to a temporary restraining order pending the hearing. Previously, the FTC provided notice of its intent to file a complaint in the U.S. District Court for the District of Columbia seeking to block the proposed acquisition of shares pursuant to the tender offer. The FTC did file such complaint with the U.S. District Court for the District of Columbia on June 7, 2007. Whole Foods Market and Wild Oats Markets are cooperating to challenge the FTC's opposition to the merger. About Smart & Final Smart & Final - http://www.smartandfinal.com/-- is a Los Angeles, Calif.-based operator of 255 non-membership warehouse stores operating under the Smart & Final and Smart Foodservice Cash & Carry banners that sell perishable and non-perishable food and foodservice products to both traditional household customers and small business owners. Smart & Final's market area includes Washington, Oregon, Idaho, California, Arizona, Nevada, and Northern Mexico. Financially, Smart & Final's sales in 2006 were in excess of $2.1 billion. About Apollo Management Smart & Final is privately held and controlled by Apollo Management, L.P., one of the largest private equity firms in the world. Apollo manages a pool of investment capital on behalf of a group of institutional investors and the principals of Apollo. Apollo has invested in excess of $16 billion of equity since its inception in 1990. About Wild Oats Markets Headquartered in Boulder, Colorado, Wild Oats Markets Inc. -- http://www.wildoats.com/-- is a natural and organic foods retailer in North America with annual sales of approximately $1.2 billion. Wild Oats Markets was founded in Boulder, Colorado in 1987. Wild Oats Markets currently operates 110 stores in 24 states and British Columbia, Canada under four banners: Wild Oats Marketplace (nationwide), Henry's Farmers Market (Southern California), Sun Harvest (Texas), and Capers Community Market (British Columbia). About Whole Foods Market Founded in 1980 in Austin, Texas, Whole Foods Market, Inc. (NASDAQ: WFMI) -- http://www.wholefoodsmarket.com/-- is a natural and organic foods supermarket. In fiscal year 2006, the company had sales of $5.6 billion and currently has more than 190 stores in the United States, Canada, and the United Kingdom. * * * As reported in the Troubled Company Reporter on May 1, 2007, Standard & Poor's Ratings Services said that while the ratings on Whole Foods Market Inc., including the 'BBB-' corporate credit rating, currently remain on CreditWatch with negative implications, where they were placed on Feb. 22, 2007, S&P will lower the corporate credit rating to 'BB+' from 'BBB-' upon closure of its acquisition of Wild Oats Inc. At this time, ratings will also be removed from CreditWatch. The outlook will be stable. WINN'S HAULING: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Winn's Hauling, Inc. 5801 School Avenue Richmond, VA 23228 Bankruptcy Case No.: 07-32266 Type of Business: The Debtor specializes in systems furniture and appliance delivery, installation, commercial office moving, and computer equipment storage. See http://winns.com/ Chapter 11 Petition Date: June 21, 2007 Court: Eastern District of Virginia (Richmond) Debtor's Counsel: David K. Spiro, Esq. Cantor Arkema, P.C. P.O. Box 561 Richmond, VA 23218-0561 Tel: (804) 644-1400 Fax: (804) 225-8706 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's List of its 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ General Electric Co. - Atlanta $100,000 P.O. Box 402271 Atlanta, GA 30384 Invincia Insurance Solutions $46,626 9330 Iron Bridge Road Chesterfield, VA 23832 Penske Truck Leasing Co. $43,877 P.O. Box 532658 Atlanta, GA 30353 General Electric Co. - Louisville $43,549 Idealease of Richmond $28,501 TNT Direct Logistics $26,751 James River Petroleum $19,847 Enterprise Rent-A-Truck $19,742 Quarles Fuel Network $18,135 Waste Industries $14,336 Hanover Insurance Group $14,010 Labor Ready Mid-Atlantic, Inc. $12,382 City of Richmond DPU $9,798 Cheeta Software Systems $8,190 Waste Management of Richmond $8,015 Cintas Corporation $6,748 Premier Trailer Leasing $7,939 Chase Staffing $7,714 Greater Bay $7,401 Verizon $6,406 YUKOS OIL: PwC Withdraws Audit Opinions for 1994-2004 Financials ---------------------------------------------------------------- PricewaterhouseCoopers' Russian unit disclosed Sunday that its financial reports for OAO Yukos Oil Co. for the period 1994-2004 could no longer be relied upon, the Wall Street Journal reports. The auditing firm cited that it might have received in inaccurate information with regard to Yukos' finances from former management. The move, according to the report, bolsters the claims of Kremlin and Russian prosecutors that Yukos was into a tax-evasion and money-laundering scheme. Citing a statement by the auditing firm, WSJ reports that PwC withdrew its audit opinions for the oil company after it became aware of new information. Information, according to the statement, that could have affected PwC's reports. WSJ further relates, citing the auditing firm, that the decision to withdraw its reports was also due to the fact that former Yukos shareholders, and even management, continued to push others to rely on the said reports. Former CEO Steve Theede and CFO Bruce Misamore however said that during the period they were officers of Yukos, the information given was complete and correct. Mr. Theede was CEO from July 2004 to 2006 while Mr. Misamore was CFO from April 2001. WSJ relates that Messrs. Theede and Misamore have asked PwC for an explanation. WSJ also discloses that the firm's decision to withdraw audit opinions comes amidst a legal battle against Russian tax authorities who claim that PwC assisted Yukos in its tax-evasion scheme. PwC has denied the allegations. PwC however said that the withdrawal wasn't in any way connected to the current case, the report adds. About Yukos Oil Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for $9.35 billion, as payment for $27.5 billion in tax arrears for 2000-2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, 2006, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a $1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, 2006, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, 2006, Yukos signed a $1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, 2006, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. * Bingham McCutchen to Combine with New Tokyo International ----------------------------------------------------------- Bingham McCutchen LLP said it will combine with New Tokyo International Law Office, an insolvency, corporate and litigation firm. The combination with New Tokyo expands Bingham's on-the-ground capacity in Asia and further bolsters its renowned cross-border restructuring and insolvency practice. The combination will take effect on or around October 1, the anticipated completion date of Bingham's new and expanded Tokyo office space. Pursuant to Japanese bar rules, lawyers from both firms must occupy the same space in order to combine officially. The addition of the New Tokyo firm, with its 22 Japanese lawyers, also called bengoshi, and the pending arrival of 10 new Japanese lawyers to Bingham's Tokyo office later this year, will bring Bingham's number of bengoshi to more than 50, among the highest for foreign law firms in Japan. In addition, Bingham's Japanese Practice, with its 50 lawyers outside of Japan, focuses on large- scale, cross-border financial restructurings, corporate/M&A and finance matters, and has significant intellectual property, antitrust and litigation strengths. Earlier this year, Bingham combined with another leading restructuring firm, Sakai & Mimura, founded by Hideyuki Sakai, with about 20 Japanese lawyers. "We're creating a client-driven leading restructuring, financial services and corporate firm with solid resources in Japan, further expanding Bingham's global reach," said Bingham chairman Jay S. Zimmerman, noting that the opening of Japanese financial markets has spurred exceptional activity, fueling corporate deals and intellectual property transactions. Most recently, Bingham's Tokyo office represented Calpis in its $900 million acquisition by Ajinomoto, two major players in Japan's food and beverage industry. "Bingham is positioned to accommodate clients based in Japan and those conducting business there," said Zimmerman. Mitsue Aizawa, one of the founders of the New Tokyo firm, noted that legacy New Tokyo clients are increasingly thinking of overseas strategies. "We want to be able to provide our clients the global backup they need," she said. "By joining Bingham, we are increasing our ability to provide one-stop services in the corporate and corporate compliance area. Moreover, our depth of practice in insolvency and the insurance area combined with Bingham's insolvency proficiency gives us tremendous strength." About New Tokyo New Tokyo International Law Office, founded by Mitsue Aizawa and Yutaka Kimura, is known for its corporate finance practice, representing major corporations, financial institutions, insurance companies and investment banks. About Bingham McCutchen Bingham McCutchen LL -- http://www.bingham.com/-- offers legal work in complex financial and corporate transactions, securities and other regulatory matters, and high-stakes litigation. It has lawyers in 13 offices. * Recovery Group and CRP to Merge as CRG Partners ------------------------------------------------- The Recovery Group, Inc. and Corporate Revitalization Partners, LLC have agreed to merge their organizations into a new firm, CRG Partners, LLC. The firm will be one of the largest providers of turnaround, crisis management, restructuring, performance improvement, and asset management services. The two firms, which are of similar size, share a complementary expertise in serving distressed and underperforming middle-market companies with an emphasis on operational improvement. Terms of the merger were not disclosed. "TRG and CRP are the perfect complement to each other. The two firms have the right fit, strategically and culturally. Through this merger, we will create an industry leader with broad capabilities in North America, Latin America and Europe as well as a more extensive portfolio of services, deep industry specialization and a strong commitment to producing results for clients," said William Snyder, Managing Partner, CRP. "Together we offer decades of experience in operational and financial restructuring and crisis management under the expert guidance of seasoned professionals," said Stephen Gray, Managing Principal, TRG. "We look forward to building on our firms' past successes with increased capabilities and a broader team." The firm will be led by four Senior Managing Partners: T. Scott Avila, Esq. and William Snyder, Esq. of CRP, and Michael Epstein, Esq. and Stephen Gray, Esq. of TRG. The firm will be based in New York City and have offices in Atlanta, Boston, Charlotte, Chicago, Dallas, Los Angeles, Washington, D.C., and Vienna, Austria. Services to be offered by CRG Partners include: * Turnaround Management; * Crisis Management; * Process and Performance Improvement; * Financial Restructuring; * Interim Management; * Wind-Down Management; * Asset Management; * Fiduciary Services; and * Financial Advisory and Valuation Services. CRG Partners will operate as an independent firm and will maintain the current contracts and obligations of TRG and CRP. The transaction is expected to close on July 1, 2007. About TRG Founded in 1981, TRG -- http://www.trgusa.com/-- is a leading provider of turnaround, crisis management, financial advisory and wind-down management services to distressed and underperforming middle-market companies, their creditors and investors. In 2006, TRG served more than 60 clients in the United States and Europe with combined revenues exceeding $9 billion. About CRP CRP -- http://www.crpllc.net/-- is a national turnaround management firm that guides distressed companies back to stability and profitability through hands-on leadership and management. It is committed to restoring companies' predictability, credibility and value as quickly as possible. CRP's services include interim management, operational/financial advisory services, bankruptcy support, merger, acquisition and due diligence support, real estate maximization and EBITDA+ operational improvement analysis. CRP maintains a full staff of senior turnaround and restructuring professionals in every major area of the country. * PwC Withdraws Audit Opinions for Yukos' 1994-2004 Financials -------------------------------------------------------------- PricewaterhouseCoopers' Russian unit disclosed Sunday that its financial reports for OAO Yukos Oil Co. for the period 1994-2004 could no longer be relied upon, the Wall Street Journal reports. The auditing firm cited that it might have received in inaccurate information with regard to Yukos' finances from former management. The move, according to the report, bolsters the claims of Kremlin and Russian prosecutors that Yukos was into a tax-evasion and money-laundering scheme. Citing a statement by the auditing firm, WSJ reports that PwC withdrew its audit opinions for the oil company after it became aware of new information. Information, according to the statement, that could have affected PwC's reports. WSJ further relates, citing the auditing firm, that the decision to withdraw its reports was also due to the fact that former Yukos shareholders, and even management, continued to push others to rely on the said reports. Former CEO Steve Theede and CFO Bruce Misamore however said that during the period they were officers of Yukos, the information given was complete and correct. Mr. Theede was CEO from July 2004 to 2006 while Mr. Misamore was CFO from April 2001. WSJ relates that Messrs. Theede and Misamore have asked PwC for an explanation. WSJ also discloses that the firm's decision to withdraw audit opinions comes amidst a legal battle against Russian tax authorities who claim that PwC assisted Yukos in its tax-evasion scheme. PwC has denied the allegations. PwC however said that the withdrawal wasn't in any way connected to the current case, the report adds. About Yukos Oil Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for $9.35 billion, as payment for $27.5 billion in tax arrears for 2000-2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, 2006, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a $1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, 2006, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, 2006, Yukos signed a $1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, 2006, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. About PricewaterhouseCoopers PricewaterhouseCoopers -- http://www.pwc.com/-- provides industry-focused assurance, tax and advisory services to build public trust and enhance value for its clients and their stakeholders. More than 130,000 people in 148 countries work collaboratively across our network using Connected Thinking to develop fresh perspectives and practical advice. PricewaterhouseCoopers Corporate Advisory & Restructuring LLC is owned by PricewaterhouseCoopers LLP, a member firm of the PricewaterhouseCoopers network and is a member of the NASD and SIPC. PwC CAR is not engaged in the practice of public accountancy. "PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Ltd., each of which is a separate and independent legal entity. * BOND PRICING: For the week of June 18 - June 22, 2007 ------------------------------------------------------- Issuer Coupon Maturity Price ------ ------ -------- ----- ABC Rail Product 10.500% 01/15/04 0 Alaris Medical 7.250% 07/01/11 11 Alladin Gaming 13.500% 03/01/10 0 Allegiance Tel 11.750% 02/15/08 52 Allegiance Tel 12.875% 05/15/08 17 Amer & Forgn Pwr 5.000% 03/01/30 63 Antigenics 5.250% 02/01/25 74 Atherogenics Inc 1.500% 02/01/12 48 Atlantic Coast 6.000% 02/15/34 6 Bank New England 8.750% 04/01/99 9 Bank New England 9.500% 02/15/96 12 Bank New England 9.875% 09/15/99 9 Budget Group Inc 9.125% 04/01/06 0 Burlington North 3.200% 01/01/45 55 Calpine Corp 4.000% 12/26/06 70 Calpine Gener Co 11.500% 04/01/11 35 Cell Therapeutic 5.750% 06/15/08 74 Collins & Aikman 10.750% 12/31/11 4 Color Tile Inc 10.750% 12/15/01 0 Comprehensive Care 7.500% 04/15/10 60 Dairy Mart Store 10.250% 03/15/04 0 Decode Genetics 3.500% 04/15/11 74 Decode Genetics 3.500% 04/15/11 72 Delco Remy Intl 9.375% 04/15/12 65 Delco Remy Intl 11.000% 05/01/09 66 Delta Mills Inc 9.625% 09/01/07 17 Deutsche Bank NY 8.500% 11/15/16 68 Diamond Triumph 9.250% 04/01/08 65 Dura Operating 8.625% 04/15/12 58 Dura Operating 9.000% 05/01/09 7 Dura Operating 9.000% 05/01/09 16 Dvi Inc 9.875 02/01/04 10 Empire Gas Corp 9.000 12/31/07 1 Exodus Comm Inc 11.250% 07/01/08 0 Exodus Comm Inc 11.625% 07/15/10 0 Fedders North AM 9.875% 03/01/14 38 Finova Group 7.500% 11/15/09 22 Florsheim Group 12.750 09/01/02 0 Ford Motor Co 6.375% 02/01/29 75 Ford Motor Co 6.625% 02/15/28 75 Global Health Sc 11.000% 05/01/08 8 Golden Books Pub 10.750% 12/31/04 0 Insight Health 9.875% 11/01/11 35 Iridium LLC/CAP 10.875% 07/15/05 19 Iridium LLC/CAP 11.250% 07/15/05 24 Iridium LLC/CAP 13.000% 07/15/05 21 Iridium LLC/CAP 14.000% 07/15/05 20 JTS Corp 5.250% 04/29/02 0 Kaiser Aluminum 9.875% 02/15/02 21 Kaiser Aluminum 12.750% 02/01/03 9 Kmart Corp 9.780% 01/05/20 8 Lehman Bros Holding 10.000% 10/30/13 69 Liberty Media 3.750% 02/15/30 63 Liberty Media 4.000% 11/15/29 67 Lifecare Holding 9.250% 08/15/13 71 LTV Corp 8.200% 09/15/07 0 Macsaver Financial 7.400% 02/15/02 0 Macsaver Financial 7.875% 08/01/03 2 Motorola Inc 5.220% 10/01/97 72 Nexprise Inc 6.000% 04/01/07 0 Northern Pacific RY 3.000% 01/01/47 54 Northern Pacific RY 3.000% 01/01/47 54 Nutritional Src 10.125% 08/01/09 66 Oakwood Homes 7.875% 03/01/04 11 Oakwood Homes 8.125% 03/01/09 11 Outboard Marine 9.125% 04/15/17 0 Pac-West Telecom 13.500% 02/01/09 25 Pac-West Telecom 13.500% 02/01/09 2 PCA LLC/PCA FIN 11.875% 08/01/09 6 Pegasus Satellite 9.625% 10/15/49 0 Pegasus Satellite 12.375% 08/01/08 0 Pegasus Satellite 12.500% 08/01/07 0 Piedmont Aviat 10.250% 01/15/49 0 Piedmont Aviat 10.250% 01/15/49 0 Piedmont Aviat 10.350% 03/28/11 2 Polaroid Corp 6.750% 01/15/02 0 Polaroid Corp 7.250% 01/15/07 0 Polaroid Corp 11.500% 02/15/06 0 Primus Telecom 3.750% 09/15/10 67 Primus Telecom 8.000% 01/15/14 73 Radnor Holdings 11.000% 03/15/10 0 Railworks Corp 11.500% 04/15/09 0 Read-Rite Corp 6.500% 09/01/04 0 RJ Tower Corp. 12.000% 06/01/13 9 SLM Corp 5.000% 12/15/28 73 SLM Corp 5.400% 03/15/30 75 Spacehab Inc 5.500% 10/15/10 52 Times Mirror Co 7.250% 11/15/96 72 Tom's Foods Inc 10.500% 11/01/04 2 Tousa Inc 7.500% 01/15/11 74 Tousa Inc 7.500% 01/15/15 70 United Air Lines 8.390% 01/21/11 0 United Air Lines 9.200% 03/22/08 52 United Air Lines 10.110% 12/31/49 0 United Air Lines 10.125% 03/22/15 52 US Air Inc. 10.550% 01/15/49 0 US Air Inc. 10.680% 06/27/08 14 US Air Inc. 10.700% 01/15/49 0 US Air Inc. 10.800% 01/01/49 0 US Air Inc. 10.900% 01/01/49 0 USAutos Trust 2.212% 03/03/11 7 Vesta Insurance Group 8.750% 07/15/25 4 Werner Holdings 10.000% 11/15/07 3 Westpoint Steven 7.875% 06/15/08 0 Wheeling-Pitt St 5.000% 08/01/11 70 Wheeling-Pitt St 6.000% 08/01/10 70 Winstar Comm Inc 10.000% 03/15/08 0 ********* 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 ***