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/raid1/www/Hosts/bankrupt/TCR_Public/070627.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, June 27, 2007, Vol. 11, No. 150 Headlines ACIES CORPORATION: March 31 Balance Sheet Upside-Down by $587,284 AEROFLEX INC: Moody's Rates Corporate Family Rating at B3 AMRESCO COMM: Fitch Affirms B- Rating on $2.4 Mil. Class K Certs. ANN-LEE CONSTRUCTION: Exclusive Plan Filing Period Set to Sept. 19 BEA CBO: S&P Puts Default Rating on Class A-3 Notes BOMBAY COMPANY: NYSE Intends to Suspend Stock Trading on June 28 BONNIE TILE: Case Summary & 20 Largest Unsecured Creditors CALPINE CORP: Fitch Says Plan Shows Expanded Value of Power Assets CALPINE CORP: Rosetta Says Assets Were Bought at Fair Market Value CANWEST MEDIAWORKS: S&P Removes Negative Watch and Lowers Ratings COLLINS & AIKMAN: Can Sell Three Manufacturing Plants for $10.4MM COMMUNITY HEALTH: Extends $300 Mil. Notes Pricing Date to July 16 CONTINUUM CARE: Court OKs Sale of 9 Operating Facilities for $12MM COPA CASINO: Moody's Revises Outlook to Positive form Stable COUNTRYWIDE HOME: Moody's Rates Class B-1 Certificates at Ba2 CREDIT SUISSE: Fitch Affirms B+ Rating on $9.3 Mil. Class L Certs. CWABS ASSET-BACKED: Moody's Rates Class B Certificates at Ba1 DAYTON SUPERIOR: S&P Lifts Corporate Credit Rating to B from B- DELHPI CORP: Moody's Says Deal with UAW-GM is Good for Industry ECO2 PLASTICS: Posts $6.8 Million Net Loss in Qtr. Ended March 31 ET WATER: Case Summary & 20 Largest Unsecured Creditors GARRY OWEN: Voluntary Chapter 11 Case Summary GENERAL MOTORS: Moody's Says Agreement is Good for Auto Industry GENERAL MOTORS: Offers 0% Financing for 3 Years on Select Vehicles GINGER EVANS: Case Summary & 18 Largest Unsecured Creditors GLOBAL POWER: Creditors' Committee Wants to File Competing Plan GRADY ENTERPRISES: Case Summary & Six Largest Unsecured Creditors GREAT PANTHER: Posts CDN$3.9 Mil. Net Loss in Qtr. Ended March 31 HAWKS LLC: Case Summary & Largest Unsecured Creditor IMPERIAL PETROLEUM: Wants to Buy Apollo Oil and Gas Assets INDYMAC HOME: Moody's Rates Class M-11 Certificates at Ba2 JOAN FABRICS: Files Schedules of Assets and Liabilities K&F INDUSTRIES: Completed $1.8BB Deal Cues S&P to Withdraw Ratings KERASOTES SHOWPLACE: S&P Revises Outlook to Stable from Negative LBI MEDIA: Solid Operating Performance Cues S&P's Positive Outlook LIFE STYLE: Case Summary & 19 Largest Unsecured Creditors LUXURY AUTO: Voluntary Chapter 11 Case Summary MARION JONES: Olympic Sprinter Claims She is Broke MITEL NETWORKS: April 30 Balance Sheet Upside-Down by $202.6 Mil. MKP CBO I: Moody's Junks Rating Class A-IL Floating Rate Notes NEW HORIZONS: Dec. 31 Balance Sheet Upside-Down by $4.7 Million NEWCASTLE CDO: Note Redemption Prompts S&P to Withdraw Ratings NORTHCORE TECH: March 31 Balance Sheet Upside-Down by CDN$2.6 Mil. NORTHWESTERN CORP: S&P Retains Negative Watch on BB+ Credit Rating OLDE DOMINION: Hires Stanton & Associates as Bankruptcy Counsel OMI CORP: $2.2 Bil. Teekay Deal Prompts S&P to Withdraw Ratings ONEIDA LTD: Moody's Rates Corporate Family Rating at B3 OPTI CANADA: Moody's Rates Pending $750 Mil. Senior Notes at B1 ORTHOMETRIX INC: March 31 Balance Sheet Upside-Down by $2.2 Mil. OUR LADY'S: Voluntary Chapter 11 Case Summary PEOPLE'S CHOICE: Poor Credit Support Cues S&P to Lower Ratings PLEASANT CARE: Taps Hunter Richey as Special Regulatory Counsel PLUM CREEK: Moody's Revises Outlook to Positive from Stable PUBLICARD INC: Court Fixes July 23 as Claims Filing Deadline RITCHIE (IRELAND): Section 341(a) Meeting Set for August 3 RJ FRITZ: 8 Hooters Franchises Close as Liquidation Measures Begin SAI HOLDINGS: Court Approves DoveBid as Auctioneer SAI HOLDINGS: Exclusive Period Extension Hearing Set on July 18 SECURUS TECH: Stable Financial Leverage Cues S&P to Affirm Ratings SECURUS TECH: Moody's Affirms Corporate Family Rating at B3 SIERRA PACIFIC: Fitch Affirms Ratings and Revises Outlook to Pos. SIERRA PACIFIC: S&P Affirms BB- Rating and Revises Outlook to Pos. SOLERA HOLDINGS: Posts $9.6 Mil. Net Loss in Qtr. Ended March 31 SUPRESTA LLC: Israel Chemicals Deal Cues Moody's Ratings Review SYNIVERSE TECHNOLOGIES: To Raise $489 Million of Credit Facilities SYNIVERSE TECH: Moody's Rates $489 Million Debt Facilities at Ba2 TRIAD HOSPITALS: Extends Senior Notes Pricing Date Until July 16 TRITON CBO: Moody's Lifts Rating on Class A-3 Floating Rate Notes TWEETER HOME: Discloses Two Stalking Horse Bids for Assets VELO ACQUISITION: Moody's Puts Corporate Family Rating at B2 VERTRUE INC: Moody's Retains Review on Low-B Ratings VIRAGEN INC: Halts Development of Avian Transgenic Technology WASHINGTON MUTUAL: Fitch Puts B Rating Negative Watch WASHINGTON MUTUAL: Fitch Affirms BB Rating on Class M-11 Certs. WEBB MTN: Voluntary Chapter 11 Case Summary WELLCARE HEALTH: Moody's Places Ba3 Debt Rating under Review WESTERN OIL: Closes New $805 Million Revolving Credit Facility WINSTAR COMMS: U.S. Trustee Objects to Credit Suisse Settlement WINSTAR COMMS: Court Okays Citicorp Industrial Settlement Pact YUKOS OIL: PwC Criticized for Withdrawing Financial Audits YUKOS OIL: Rosneft Wants to Buy Assets from Unitex and Prana * Upcoming Meetings, Conferences and Seminars ********* ACIES CORPORATION: March 31 Balance Sheet Upside-Down by $587,284 ----------------------------------------------------------------- Acies Corporation's balance sheet as of March 31, 2007, showed total assets of $1,233,061 and total liabilities of $1,820,345, resulting in total stockholders' deficit of $587,284. Also, at March 31, 2007, the company listed total accumulated deficit of $5,447,035. The company had strained liquidity with total current assets of $1,029,567 available to pay total current liabilities of $1,708,503 as of March 31, 2007. Highlights for Fiscal Year 2007 -- Revenues increased 32% to $11,823,326, up from $8,979,849. -- Gross margin was $1,169,010, as compared with $1,387,804, decreasing as a result of greater pricing pressure in certain merchant industries, and a greater proportion of business sourced through the lower-margin indirect sales channel. -- Corporate expenses totaled $2,272,653, including non-cash charges for option expense and restricted stock of $347,273, which represented 19.2% of revenues, compared to corporate expenses of $2,265,685, including non-cash charges for restricted stock expense of $82,500, which represented 25.2% of revenues. -- Net loss increased to $1,130,717, from a loss of $903,310. The increase was due principally to the decreased gross margin and increased interest expense. -- Secured $2 million line of credit, of which $363,154 was the outstanding principal amount as of March 31, 2007. A full-text copy of the company's fiscal 2007 report is available for free at http://ResearchArchives.com/t/s?212d Oleg Firer, president and chief executive officer of Acies, commented, "Fiscal 2007 was a year of transition, challenges and continued growth for Acies. Revenues have continued to grow, even as we went through a series of changes in the leadership of our sales function, and faced a more competitive payment processing landscape with limited resources to invest in marketing. "Beginning in November 2006, we were able to draw upon a new credit facility and, in the final weeks of the fiscal year, we hired a new senior vice president of sales and marketing to bring stability and experience to that most critical area. "I am optimistic that we will resume rapidly growing our recurring revenue base, with a greater proportion of new business generated by direct sales, which in combination with continued expense control, will push us forward to achieve profitability." Mr. Firer added, "Having gained deeper understanding and expertise relating to industry-specific needs, and an expanded suite of state-of-the-art services and products, Acies is well on its way to becoming a premier provider of comprehensive payment processing solutions to small- to medium-size merchants across the country." About Acies Corporation Headquartered in New York City, Acies Corporation (OTCBB: ACIE) -- http://www.aciesinc.com/-- is a business services company that, through its wholly owned subsidiary, Acies Inc., provides payment processing services primarily to small- to medium-sized merchants across the United States. Acies' payment processing services enable merchants to process Credit, Debit, Electronic Benefit Transfer, Check Conversion, and Gift & Loyalty transactions. Acies also offers traditional and next-generation point-of-sale terminals, which enable merchants to utilize Acies' payment processing services. AEROFLEX INC: Moody's Rates Corporate Family Rating at B3 --------------------------------------------------------- Moody's Investors Service assigned first-time ratings to Aeroflex Incorporated (corporate family rating of B3 and speculative grade liquidity rating of SGL-2) and a positive outlook. A newly formed entity, AX Holding Corp., will acquire all of the outstanding shares of Aeroflex, a publicly traded microelectronics and test and measurement provider that will continue as a private company. Net proceeds from the $500 million first lien term loan and $60 million first lien revolver together with $370 million senior subordinated notes will be used to finance Aeroflex's $1.242 billion buyout in a highly leveraged transaction. The buyout, which is subject to shareholder approval, also consists of a $372 million cash equity investment from a consortium of private equity sponsors (Veritas Capital, Golden Gate Capital and GS Direct). The assigned ratings are subject to review of final documentation and no material change in the terms and conditions of the transaction as advised to Moody's. The B3 corporate family rating reflects the company's: * very high financial leverage of 7.3x debt/normalized EBITDA and weak credit protection measures following the leveraged buyout; * modest footprint and limited asset protection from a small base of pro forma tangible assets; * potentially increasing competition longer-term from larger and well capitalized companies; * exposure to aerospace and defense electronics end markets, which could experience changes in procurement policies or the types of products sourced by the government; and * historic money losing radar unit and break even synthetic test business. The rating also takes into account Moody's hybrid security treatment for the $372 million of sponsor preferred equity in which 25% of the preferred stock is treated as debt-like and 75% is treated as equity-like. As such, Moody's adjustments incorporate the commensurate increase in debt, equity and interest expense on Aeroflex's balance sheet and income statement. The rating also considers Aeroflex's leading market position as the primary or sole source provider in niche markets, strong intellectual property portfolio with proprietary technology, highly visible and diversified revenue base with no specific defense platform exposure, relatively stable competitive landscape, mission-critical nature of its products with high switching costs resulting in stable gross margins approaching 50% and consistent operating profitability and positive free cash flow generation. The B3 CFR also considers Moody's expectation that Aeroflex's operating performance will benefit from a broadening of applications from existing technologies, the secular outsourcing trend from primary contractors and increasing dollar content as the company moves up the value chain in the satellite and medical platforms. Aeroflex is expected to be moderately free cash flow positive over the near term. As such, Moody's does not expect the company to substantially repay debt over the next 12 months. Nonetheless, the positive outlook reflects the potential for moderate improvement in financial leverage and interest coverage metrics based on improved visibility into fiscal 2008 revenues. This is anticipated to be driven by Aeroflex's strong market position, "designed-in" chips and testing applications with long life cycles, relatively stable operating cash flows even during recessionary episodes, fabless semiconductor business model and attractive industry dynamics, offset by the money losing radar business and potentially increasing competition. The ratings for the first lien facility and the subordinated notes reflect both the overall probability of default of the company, to which Moody's assigns a PDR of B3, and a loss given default of LGD-2 for the first lien and LGD-5 for the subordinated notes. The B1 rating of the first lien senior secured credit facility reflects its senior position in Aeroflex's capital structure, full guarantees of existing and future wholly-owned domestic subsidiaries, an all asset pledge, and a significant amount of junior debt and other unsecured obligations such as leases in the capital structure. The Caa2 rating of the subordinated notes reflects their contractual subordination to all first lien senior secured creditors and full guarantees of existing and future wholly-owned domestic subsidiaries on an unsecured basis. These first time ratings were assigned: -- Corporate Family Rating -- B3 -- Probability of Default Rating -- B3 -- $60 Million Senior Secured First Lien Revolver due 2013 -- B1 (LGD-2, 27%) -- $500 Million Senior Secured First Lien Term Loan due 2014 -- B1 (LGD-2, 27%) -- $370 Million Senior Subordinated Notes due 2017 -- Caa2 (LGD- 5, 83%) -- Speculative Grade Liquidity Rating - SGL-2 The ratings outlook is positive. Headquartered in Plainview, NY, Aeroflex Inc. is a specialty provider of microelectronics and test and measurement products to the aerospace, defense, wireless, broadband and medical markets. For the twelve months ended March 31, 2007, revenues were $577 million. AMRESCO COMM: Fitch Affirms B- Rating on $2.4 Mil. Class K Certs. ----------------------------------------------------------------- Fitch Ratings has affirmed AMRESCO Commercial Mortgage Funding I Corp.'s, mortgage pass-through certificates, series 1997-C1, as: -- Interest-only class X at 'AAA'; -- $2.6 million class G at 'AAA'; -- $4.8 million class H at 'A+'; -- $7.2 million class J at 'BB+'; -- $2.4 million class K at 'B-'. Fitch does not rate the $8.4 million class L certificates. Classes A-1, A-2, A-3, B, C, D, E and F have paid in full. Although credit enhancement is increasing, affirmations are warranted due to concerns with four of the remaining five loans. As of the June 2007 distribution date, the pool's aggregate principal balance has been reduced 95% to $25.4 million from $480.1 million at issuance. The largest loan of concern (28.9%) is collateralized by a healthcare center in Brooklyn, New York. The loan is current and occupancy is 92%, but the servicer reported debt service coverage ratio is consistently below 1x. Additionally, there are three assets (62.4%) in special servicing with expected losses. The largest specially serviced asset (28.6%) is a real estate owned multifamily property located 17 miles from the Atlanta, Georgia, central business district. Current occupancy is 89% and the special servicer is actively marketing the property for sale. The next specially serviced asset (21.1%) is an office building in Burnsville, Minnesota, that recently transferred due to the loan not paying off on its May 2007 scheduled maturity date. The year- end 2006 occupancy was 88.3%. Finally, the third largest specially serviced asset (12.5%) is an REO industrial property in Leonminster, Massachusetts. The property is 100% vacant and is listed for sale. ANN-LEE CONSTRUCTION: Exclusive Plan Filing Period Set to Sept. 19 ------------------------------------------------------------------ The Honorable Jeffery A. Deller of the United Sates Bankruptcy Court for the Western District of Pennsylvania extended Ann-Lee Construction and Supply Company Inc.'s exclusive period to file a Chapter 11 Plan of Reorganization to Sept. 19, 2007. The Debtor's exclusive period expired on June 19, 2007. As reported in the Troubled Company Reporter on June 11, 2007, the Debtor disclosed that it will be unable to file a viable plan by the June 19 deadline despite its full compliance with all Chapter 11 operating guidelines, including the timely filing of all monthly financial reports and payment of all U.S. Trustee quarterly fees. Based in Saltsburg, Pennsylvania, Ann-Lee Construction and Supply Company, Inc. offers construction consulting & management services. The company filed for Chapter 11 protection on Jan. 11, 2007 (Bankr. W.D. Pa. Case No. 07-20226). Michael J. Henny, Esq. and Joseph V. Luvara, Esq. represent the Debtor in its restructuring efforts. Kirk B. Burkley, Esq., at Bernstein Law Firm PC, represents the Official Committee of Unsecured Creditors. When the Debtor filed for protection from its creditors, it listed estimated assets and debts of $1 million to $100 million. BEA CBO: S&P Puts Default Rating on Class A-3 Notes --------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on the class A-3 notes issued by BEA CBO 1998-1 Ltd., a high-yield CBO transaction originated in 1998, to 'D' from 'CC'. The downgrade reflects factors that have negatively affected the credit enhancement available to support the A-3 notes since the September 2002 rating action. As of the June 4, 2007, trustee report, the $10.325 million worth of collateral in the portfolio yielded an overcollateralization ratio of 33.24% for the class A-3 notes. The existing collateral in this transaction will be inadequate to pay down the remaining balance of the A-3 notes. Rating Lowered BEA CBO 1998-1 Ltd. Rating ------ Class To From Balance ----- -- ----- ------- A-3 D CC $26,000,000 BOMBAY COMPANY: NYSE Intends to Suspend Stock Trading on June 28 ---------------------------------------------------------------- The Bombay Company Inc. was notified by the New York Stock Exchange that the NYSE intends to suspend Bombay's common stock prior to the opening on June 28, 2007, and that the NYSE will initiate delisting procedures. The action is being taken in view of the fact that the company did not meet the NYSE continued listing standard regarding the average closing price of its common stock of not less than $1 over a consecutive 30 trading day period, as well as the requirement for average global market capitalization over a consecutive 30 trading day period of not less than $75 million and stockholders' equity of not less than $75 million. On May 24, 2007 the company disclosed it had received notices from the NYSE on May 18, 2007, and May 22, 2007, that it was not in compliance with the NYSE continued listing requirements. About Bombay Company Headquartered in Fort Worth, Texas, The Bombay Company, Inc. (NYSE: BBA) -- http://www.bombaycompany.com/-- designs, sources, and markets home furnishings, wall decor products, and decorative accessories in the U.S. and Canada. The company offers a range of furniture that include both wood and metal furniture for bedrooms, home offices, dining rooms, and living rooms, as well as occasional furniture that comprises wood and metal hall tables, end and coffee tables, plant stands, and other small accent tables and curios. Going Concern Doubt PricewaterhouseCoopers LLP, in Fort Worth, Texas, raised substantial doubt about The Bombay Company Inc.'s ability to continue as a going concern after auditing the company's financial statements for the years ended Feb. 3, 2007, Jan. 28, 2006, and Jan. 29, 2005. The auditor pointed to the company's operating losses, negative cash flows, and accumulated deficit. BONNIE TILE: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Bonnie Tile Corporation 3308 West 45th Street West Palm Beach, FL 33407 Bankruptcy Case No.: 07-14899 Type of Business: The Debtor imports and retails marble tiles. Chapter 11 Petition Date: June 25, 2007 Court: Southern District of Florida (West Palm Beach) Judge: Paul G. Hyman Jr. Debtor's Counsel: Julianne R. Frank, Esq. 11380 Prosperity Farms Road, Suite 114 Palm Beach Gardens, FL 33410 Tel: (561) 626-4700 Fax: (561) 627-9479 Estimated Assets: $100,000 to $1 Million Estimated Debts: $1 Million to $100 Million Debtor's List of its 20 Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ Unicom S.R.L. Inventory $311,362 Via Flumedosa, 7 41042 Fiorano Modenese (MO) Italy Bank Atlantic Secured Bank Loan $292,735 2100 West Cypress Creek Road Fort Lauderdale, FL 33309 Department of Revenue Sales & Use Tax $257,918 State of Florida Bankruptcy Section P.O. Box 6668 Tallahassee, FL 33318 GE Capital Transleasing Secured Bank Loan $187,430 Advanced Insurance Underwriters Trade Debt $154,783 Cerypsa Ceramic SA Inventory $139,568 Trans Union America Inc. Trade Debt $125,215 Palm Beach County 2006 Tangible Taxes $110,761 Tax Collector Bonsal American Inventory $92,998 Cecrisa Revestimentos SA Inventory $85,715 Ibero Alcorense Inventory $80,124 ABK Group Industries Inventory $72,386 Alcorense USA Inc. Inventory $71,408 EPC America Inventory $63,872 American Express Credit Card $58,955 International Wholesale Inventory $57,677 Tile, Inc. Keraben, S.A. Inventory $52,824 Orchid Ceramics Inventory $47,616 Xiamen Xingsha Trade Co. Inventory $46,945 Custom Building Prod. Inc. Inventory $44,208 CALPINE CORP: Fitch Says Plan Shows Expanded Value of Power Assets ------------------------------------------------------------------ Fitch Ratings notes that the Calpine Corp.'s plan of reorganization and disclosure statements filed on June 20, 2007 indicate that Calpine has entered the final stages of its reorganization process. The Plan confirmation deadline is Aug. 20, 2007, marking the end of the debtor's 18-month exclusivity period. If claimants vote to approve the POR by the exclusivity deadline, then Calpine should emerge from bankruptcy on or about Dec. 31, 2007. On the other hand, delays which cause loss of exclusivity could potentially complicate the process by inviting other plan proposals. Under the plan, the company has proposed that $8 billion (expandable up to $10 billion through an accordion feature) in exit financing would be used to take out $5 billion of debtor-in- possession financing (potentially expanded up to $7 billion through exercise of an accordion feature). Under Calpine's plan, the company would furthermore emerge with a total of $11 billion of debt. The enterprise value in the plan indicates a reorganized Calpine will have a mid-point reorganization value of $21.7 billion (comprising estimated enterprise value of $20.3 billion plus estimated distributable cash of $1.4 billion). Calpine noted that allowed claims will range from $20.1 billion to $22.3 billion. According to the POR, through asset sales, operating improvements and the proposed exit financing, Calpine's DIP lenders and its pre-petition first lien and second lien creditors would realize 100% recovery on their allowed claims (in cash). General unsecured creditors would recover between 91% and 100% of their allowed claim amount (in the form of New Calpine common stock). Existing holders of Calpine's equity and subordinated debt are likely to be significantly impaired if the court approves this proposed valuation. The current unsecured recovery range of $0.91-$1.00 estimated in the POR represents a sharp increase in value since January 2006, when Calpine's credit default swaps were cash settled in an auction for $0.19125/$1.00. In retrospect, sellers of default protection would have been better served to hold onto the securities. Fitch published a mid-point senior unsecured recovery estimate of $0.21/$1.00 in December 2005, consistent with the value established in the CDS auction a month later. The CDS auction price and Fitch recovery estimate were based on the then existing distressed market values for gas-fired wholesale generation assets and then current assumptions for future capacity reserve margins, new capacity additions, forward natural gas prices, etc. Also, Fitch's recovery valuations incorporate relatively conservative valuation multiples or discount rates, and never presume an expansion of multiples (or lowering of market discount rates) over the course of a bankruptcy proceeding. The dramatic increase in Calpine's estimated recovery values in the 18 months since the company filed for bankruptcy protection illustrate the volatile and cyclical character of asset valuations in the wholesale power market. Changes in capacity and load, regional fuel mix, natural gas prices, environmental regulation, asset replacement costs and the capital market's appetite for financing and ownership of power assets exert a profound influence on the values of wholesale generation companies. Also, during the course of the bankruptcy, management proactively rationalized assets, streamlined operations, and reduced and refinanced debt. Fitch has published a commentary on the factors that resulted in changes in recovery value over the past 18 months, including swings in natural gas prices, tightening generation capacity reserve margins in U.S. power markets, expectations of more stringent environmental standards and carbon constraints in future, inflation in the replacement costs of Calpine's facilities, and extremely liquid capital market conditions affecting investor discount rates and valuation multiples. About Calpine Corporation Based in San Jose, California, Calpine Corporation (OTC Pink Sheets: CPNLQ) -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Its customized products and services include wholesale and retail electricity, gas turbine components and services, energy management and a wide range of power plant engineering, construction and maintenance and operational services. The company previously produced a portion of its fuel consumption requirements from its own natural gas reserves. However, in July 2005, the company sold substantially all of its remaining domestic oil and gas assets to Rosetta Resources Inc. The company filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200). Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G. Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their restructuring efforts. Michael S. Stamer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. As of Dec. 19, 2005, the Debtors listed $26,628,755,663 in total assets and $22,535,577,121 in total liabilities. CALPINE CORP: Rosetta Says Assets Were Bought at Fair Market Value ------------------------------------------------------------------ Rosetta Resources Inc. has stated that the assertions made by Calpine Corporation in its disclosure statement proposed with its recently filed reorganization plan in regard to the 2005 Rosetta transaction are misleading, incorrect and wholly unsupportable. Rosetta-Calpine Deal In their Disclosure Statement filed with the U.S. Bankruptcy Court for the Southern District of New York, the Debtors related that they conducted in-depth analysis of the value of the assets conveyed in the Rosetta Purchase and Sale Agreement, as well as the facts and circumstances surrounding the transaction. The Debtors, on July 7, 2005, entered into a purchase and sale agreement to sell substantially all of their remaining domestic oil and gas assets, other than certain gas pipeline assets, to Rosetta. As a result of the investigation on the purchase and sale agreement, the Debtors reveal that they have a valid claim under Sections 548 and 550 of the Bankruptcy Code to avoid the said transaction. The Debtors say that as remedy, they plan to obtain from Rosetta return of the assets conveyed or their equivalent value. The Debtors also concluded that the transaction with Rosetta was not done at arms length and the price obtained was substantially below fair market value Rosetta's Contention Rosetta Resources is confident that Calpine received full and fair value for the purchased assets and that Rosetta will prevail in any related litigation. Rosetta believes that there is no basis in law or fact for Calpine's assertion that it can recover additional amounts from Rosetta with respect to its 2005 purchase of Calpine's remaining oil and gas assets. Moreover, Rosetta believes that Calpine's recent assertions regarding its "in-depth" analysis following its bankruptcy and conclusions regarding value are seriously flawed and are inconsistent with economic reality in the oil and gas industry. In response to Calpine's unsupported conclusions, Rosetta stresses that it understands Calpine weighed and considered alternatives with respect to these oil and gas assets before electing to proceed with the 2005 Rosetta transaction at the price Calpine established. Rosetta also understands Calpine received one or more competing offers from third parties before agreeing to the sale to Rosetta. More specifically, Rosetta believes that: * Calpine received fair value in the transaction, and Rosetta is confident it will prevail in any lawsuit. In addition to $1.05 billion in gross cash proceeds, Rosetta provided other substantial and valuable consideration to Calpine under the Rosetta transaction documents, in purchasing Calpine's remaining oil and gas assets. * Contrary to the inferences in Calpine's reorganization plan, there is no reason to believe the Calpine board of directors did not, in fact, carefully review the transaction and properly exercise their duty of care under Delaware law, relying in part upon the fairness opinion of Deutsche Bank, in determining that the price paid by Rosetta was fair from a financial point of view to Calpine. Rosetta notes that while Calpine's plan preserved its purported claims against Rosetta, it provides for the release of Calpine's board members, officers, and professionals from any claims relating to their involvement in reviewing and approving the Rosetta transaction. * There is no basis for Calpine's unsupported assertion that the Deutsche Bank fairness opinion presented to Calpine's board was somehow flawed or rendered without sufficient information. In fact, the sale to Rosetta was a culmination of Calpine's program to dispose of non-core assets, including its oil and gas business. Specifically, over a three-year period, Calpine's senior management and board of directors executed its announced asset-optimization plan to sell its oil and gas assets. In those three years leading up to the sale to Rosetta, Calpine concluded multiple transactions in which it sold significant oil and gas assets located in Canada, Colorado, Texas and New Mexico. The Rosetta transaction was structured and the process was controlled by non-conflicted senior management of Calpine Corporation and, Rosetta contends, then fully considered and approved by Calpine's board. Calpine's management and board of directors, advised by lawyers from the firms of Pillsbury Winthrop Shaw Pittman LLP and Covington & Burling LLP, had valuations from Goldman Sachs and an alternative proposal by Merrill Lynch, in addition to the Deutsche Bank fairness opinion, when it approved the sale to Rosetta. The then-board for Calpine included its current chairman, who possesses years of oil and gas experience at Chevron including a period during which he served as chairman, and two current board members. Rosetta said that it will take all necessary action and vigorously assert its defenses to ensure that its rights and those of its shareholders are protected, and will fully contest any legal action commenced by Calpine, and Rosetta is confident it will be successful in any legal action. About Rosetta Resources Based in Houston, Texas, Rosetta Resources Inc. (Nasdaq:ROSE) -- http://www.rosettaresources.com/-- is an independent oil and gas company engaged in acquisition, exploration, development and production of oil and gas properties in North America. The company's operations are concentrated in the Sacramento Basin of California, South Texas, the Gulf of Mexico and the Rocky Mountains. About Calpine Corporation Based in San Jose, California, Calpine Corporation (OTC Pink Sheets: CPNLQ) -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Its customized products and services include wholesale and retail electricity, gas turbine components and services, energy management and a wide range of power plant engineering, construction and maintenance and operational services. The company previously produced a portion of its fuel consumption requirements from its own natural gas reserves. However, in July 2005, the company sold substantially all of its remaining domestic oil and gas assets to Rosetta Resources Inc. The company filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200). Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G. Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their restructuring efforts. Michael S. Stamer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. As of Dec. 19, 2005, the Debtors listed $26,628,755,663 in total assets and $22,535,577,121 in total liabilities. CANWEST MEDIAWORKS: S&P Removes Negative Watch and Lowers Ratings ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Winnipeg, Manitoba-based CanWest MediaWorks Inc., including the long-term corporate credit rating to 'B' from 'B+'. At the same time, the ratings on CanWest MediaWorks were removed from CreditWatch with negative implications, where they were placed Jan. 10, 2007, following the announcement by CanWest Global Communications Corp., the parent of CanWest MediaWorks; Alliance Atlantis Communications Inc. (BB/Watch Neg/--); and GS Capital Partners VI LP, a private equity affiliate of Goldman, Sachs & Co.; that a new acquisition company, formed by CanWest and GSCP, had entered into an arrangement agreement with Alliance Atlantis to acquire all of Alliance Atlantis' voting and nonvoting shares. The outlook is stable. In addition, Standard & Poor's assigned ratings to CanWest MediaWorks' wholly owned subsidiary, CanWest MediaWorks Limited Partnership. S&P assigned a 'BB-' bank loan rating, with a recovery rating of '1', to CanWest LP's proposed CDN $950 million senior secured bank loan. The '1' recovery rating indicates an expectation of very high (90%-100%) recovery of principal in the event of a payment default. S&P also assigned a 'CCC+' debt rating to its proposed $650 million senior subordinated notes due 2017. "The downgrade reflects CanWest MediaWorks weaker financial risk profile resulting from the proposed debt-financed privatization of CanWest LP and closing of the Alliance Atlantis transaction," said Standard & Poor's credit analyst Lori Harris. The stable outlook reflects Standard & Poor's expectations that CanWest MediaWorks will maintain its solid market positions in publishing and broadcasting, and that the company's operating performance will improve modestly in the medium term. In addition, the company is expected to restore credit ratios to levels in line with the ratings. The outlook could be changed to negative should there be a material weakness in business operations or credit measures. Furthermore, ratings could be pressured by the higher debt leverage that could result from an increase in the company's investment in the Alliance Atlantis broadcast business. The outlook could be revised to positive should credit measures show meaningful improvement. COLLINS & AIKMAN: Can Sell Three Manufacturing Plants for $10.4MM ----------------------------------------------------------------- The Honorable Steven W. Rhodes of the U.S. Bankruptcy Court for the Eastern District of Michigan, last Thursday, gave authority to Collins & Aikman Corp. and its debtor-affiliates to sell three manufacturing plants to Flex-N-Gate Corp. for $10.4 million, the Associated Press reports. The report relates that the plants manufacture parts for DaimlerChrysler AG and are located at Evart, Michigan; Belvidere, Illinois; and St. Louis. According to the report, Judge Rhodes gave his nod on the sale without having to undergo an auction. The Debtors had requested for a speedy sale citing that DaimlerChrysler had also given the purchase contracts to Urbana, Illinois-based Flex-N-Gate. The United Auto Workers union had objected to the sale after Flex-N-Gate said that it won't assume existing labor pacts for the Belvidere and St. Louis plants, the report adds. About Collins & Aikman Based 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. COMMUNITY HEALTH: Extends $300 Mil. Notes Pricing Date to July 16 ----------------------------------------------------------------- Community Health Systems Inc. is extending the price determination date of its $300 million aggregate principal amount of 6-1/2% senior subordinated notes due 2012 from 10 a.m., New York City time, on June 25, 2007, to 10 a.m., New York City time, on July 16, 2007. At the same time, the company is extending the expiration date of the senior notes offering from 12 midnight, New York City time, on July 10, 2007, to 12 midnight, New York City time, on July 30, 2007. Holders who have previously tendered notes do not need to re- tender their notes or take any other action in response to these extensions. As of 7 a.m., New York City time, on June 25, 2007, the company received tenders and consents from holders of about $299.9 million in aggregate principal amount of the notes, representing about 99.99% of the total outstanding principal amount of the notes. Notes previously tendered may not be validly withdrawn, except under very limited circumstances. Except for the extension of the price determination and expiration dates, the offer and the tender offer documents remain in full force and effect and the price determination date for the offer shall be at least ten business days prior to the expiration date. The company's obligation to accept for purchase, and to pay for, notes validly tendered and not withdrawn pursuant to the offer is subject to the satisfaction or waiver of certain conditions, including: -- the satisfaction of all conditions to the consummation of the merger under the previously announced merger agreement among the company, Triad Hospitals Inc. and FWCT-1 Acquisition Corporation; -- the company or one of the company's affiliates having issued up to $3.365 billion of debt; -- the company having sufficient available funds to pay the total consideration with respect to all notes and the receipt of sufficient consents with respect to the proposed amendments to the indenture and the notes. The company reserves the right to terminate, withdraw or amend the offer at any time subject to applicable law. The company has retained Credit Suisse Securities (USA) LLC and Wachovia Securities to act as dealer managers in connection with the tender offer and consent solicitation. Questions about the tender offer and consent solicitation may be directed to Credit Suisse at (212) 325-7596 (collect) or Wachovia Securities at (866) 309-6316 (toll free) or (704) 715-8341 (collect). Copies of the tender offer documents and other related documents may be obtained from D.F. King & Co., Inc., the information agent for the tender offer and consent solicitation, at (800) 769-7666 (toll free) or (212) 269-5550 (collect). About Community Health Located in the Nashville, Tennessee, suburb of Franklin, Community Health Systems Inc. (NYSE: CYH) -- http://www.chs.net/-- operates general acute care hospitals in non-urban communities throughout the United States. Through its subsidiaries, the company currently owns, leases or operates 80 hospitals in 23 states. Its hospitals offer inpatient medical and surgical services, outpatient treatment and skilled nursing care. * * * As reported in the Troubled Company Reporter on June 6, 2007, Standard & Poor's Ratings Services said its corporate credit rating on Community Health Systems Inc. (BB-/Watch Neg/--) remains on CreditWatch with negative implications, where it was originally placed on March 20, 2007. CONTINUUM CARE: Court OKs Sale of 9 Operating Facilities for $12MM ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of Florida approved the sale of nine operational Continuum Care Corporation facilities on June 21, 2007, according to Soneet Kapila, the Court-appointed Chapter 11 trustee. Kapila charged accelerated marketing/auction specialist Tranzon Driggers with selling the operational properties as ongoing business concerns to either one or several owners, and offering the closed facilities to prospective buyers as well. Continuum care owned 11 properties: nine of which were operational, and two were closed. Tranzon Driggers, in Ocala, Florida, managed the successful sealed-bid May 30 auction of all operational facilities in tandem with the North Virginia office of Tranzon Fox. Both are member companies of Tranzon, LLC, a nationwide group of accelerated marketing and auction companies. "There was more than adequate business justification to sell the operational facilities as going concerns, which would guarantee that their value was maximized. A pre-confirmation sale earlier this month was warranted as these facilities risked substantial deterioration in value if an expeditious sale did not occur and any were forced to close," said Kapila. According to Stephen Karbelk, CAI, regional president of Tranzon Fox and the lead project manager on the sale, the court approved the highest bidders from the May 30 sealed-bid auction. The nine operating facilities were purchased by four different bidders for an aggregate price of $12,060,000. The closings are expected to occur by next month's end. "We were pleased with the results," said Karbelk. "The facilities are being purchased by experienced operators who are ready to make all of these properties the best they can be." About Continuum Care Based in West Palm Beach, Florida, Continuum Care Corporation is a non-profit group that operates skilled nursing care facilities in Florida, Tennessee, North Carolina, and Maryland. The Debtor filed for Chapter 11 protection on Oct. 8, 2004 (Bankr. S.D. Fla. Case No. 04-34652). Craig I. Kelley, Esq. has represented the Debtor in its restructuring efforts. COPA CASINO: Moody's Revises Outlook to Positive form Stable ------------------------------------------------------------ Moody's Investors Service changed the rating outlook of Copa Casino of Mississippi, LLC to positive from stable. CCM's Corporate Family Rating of B3 and bank facility ratings of B3, LGD-3, 34% are affirmed. The outlook change to positive reflects the successful opening of the Island View Casino Resort in September 2006 and the casino expansion in May 2007, as well as operating performance that has exceeded Moody's expectations. Margins and returns have exceeded projected levels since opening which is expected to result in debt to EBITDA between 4.5 - 5.0x in 2007. Upward rating action will depend upon the completion of the parking garage and other miscellaneous construction items, continued operating performance at or above current levels, CCM's ability to absorb the opening of Hard Rock Biloxi in July 2007 without material impact to its operating performance, and the scope and timing of any potential expansion plans. CCM is a privately held company. CCM owns approximately 73% of Gulfside Casino Partnership d/b/a Island View Casino Resort (the former Grand Casino Gulfport) located in Gulfport, Mississippi. The other 27% of Gulfside is owned by Gulfside Casino, Inc. Both GCI and CCM are owned by the project sponsors, Terry Green and Rick Carter. The Island View Casino Resort is comprised of 2,090 slot machines, 47 table games and a 562 room hotel. Island View Casino recently opened an Emeril Lagasse restaurant - Emeril's Gulf Coast Fish House and is expected to complete and open a new multi-level parking garage by early July 2007. COUNTRYWIDE HOME: Moody's Rates Class B-1 Certificates at Ba2 ------------------------------------------------------------- Moody's Investors Service assigned an Aaa rating to the senior certificates issued by Alternative Loan Trust 2007-AL1 and ratings ranging from Aa1 to Ba2 to the mezzanine and subordinate certificates in the deal. The securitization is backed by first lien adjustable-rate, Alt-A residential mortgage loans originated by Alliance Bancorp (72.50%) and Alliance Bancorp Inc. (27.50%). The ratings are based primarily on the credit quality of the loans and on protection against credit losses by subordination. Moody's expects collateral losses to range from 2.35% to 2.55%. Countrywide Home Loans Servicing LP will act as master servicer to the mortgage loans. The complete rating actions are: Alternative Loan Trust 2007-AL1 Mortgage Pass-Through Certificates, Series 2007-AL1 -- Cl. A-1, Assigned Aaa -- Cl. A-2, Assigned Aaa -- Cl. A-3, Assigned Aaa -- Cl. X-P, Assigned Aaa -- Cl. A-R, Assigned Aaa -- Cl. M-1, Assigned Aa1 -- Cl. M-2, Assigned Aa2 -- Cl. M-3, Assigned Aa3 -- Cl. M-4, Assigned A1 -- Cl. M-5, Assigned A3 -- Cl. B-1, Assigned Ba2 CREDIT SUISSE: Fitch Affirms B+ Rating on $9.3 Mil. Class L Certs. ------------------------------------------------------------------ Fitch Ratings affirms Credit Suisse First Boston's commercial mortgage pass-through certificates, series 2001-CF2, as: -- $96.8 million class A-3 at 'AAA'; -- $523.2 million class A-4 at 'AAA'; -- Interest only classes A-CP and A-X at 'AAA'; -- $43.8 million class B at 'AAA'; -- $49.3 million class C at 'AAA'; -- $10.9 million class D at 'AAA'; -- $16.4 million class E at 'AAA'; -- $18.9 million class F at 'AA-'; -- $14 million class G at 'A'; -- $16.4 million class H at 'BBB+'; -- $21.9 million class J at 'BB'; -- $8.2 million class K at 'BB-'; -- $9.3 million class L at 'B+'. Classes M and N remain at 'CCC/DR3' and 'C/DR6', respectively. Class O has been depleted by realized losses and Fitch does not rate the $1 million class RA certificates. Classes A-1 and A-2 have paid in full. Although the deal benefits from additional defeasance and pay down, affirmations are warranted due to concerns surrounding the four specially serviced loans and the two largest loans in the pool. Since the last Fitch rating action the deal has had an additional 2% paydown and 8% defeasance. As of the June 2007 distribution date, the pool's aggregate collateral balance has been reduced 26.8%, to $825.4 million from $1.128 billion at issuance. Twenty-three loans (29%) have defeased to date. Currently, four assets (1.5%) are in special servicing with Fitch- expected losses on all four. The largest asset in special servicing (1.1%) is a real estate owned office property located in Olivette, MO. Current occupancy is 95% and the special servicer is developing a business plan for the asset. The three other specially serviced assets in total comprise less than 0.4% and are located in rural northern Vermont, Bloomington, IL and Tomah, WI. Fitch-projected losses on the specially serviced assets are expected to deplete class N and significantly affect class M. The two largest loans in the pool are Fitch Loans of Concern. The first is collateralized by an office property (6.1%) located in the Philadelphia, PA, central business district. Current occupancy is 87.6% and 2006 year-end servicer reported debt service coverage ratio on net operating income was 0.9 times. The second largest loan is an office property (5.34%) located in the San Francisco Bay area. The asset is currently 100% occupied but current rent levels do not support operations. The servicer reported 2006 third-quarter DSCR on NOI was 0.7x. Fitch will closely monitor these two loans and the four specially serviced loans. CWABS ASSET-BACKED: Moody's Rates Class B Certificates at Ba1 ------------------------------------------------------------- Moody's Investors Service assigned Aaa rating to the senior certificates issued by CWABS Asset-Backed Certificates Trust 2007- 9 and ratings ranging from Aa1 to Ba1 to the subordinate certificates in the deal. The securitization is backed primarily by fixed rate and adjustable rate, first lien subprime residential mortgage loans. The loans were originated by Countrywide Home Loans, Inc. and acquired by Countrywide Financial Corporation. The ratings are based primarily on the credit quality of the loans and on protection against credit losses provided by a lender paid mortgage insurance policy issued by Mortgage Guaranty Insurance Corporation. The ratings also benefit from subordination, an interest rate swap agreement, excess interest and overcollateralization. Moody's expects collateral losses to range from 3.65% to 4.15%. Countrywide Home Loans Servicing LP will act as master servicer. The complete rating actions are: CWABS Asset-Backed Certificates Trust 2007-9 Asset-Backed Certificates, Series 2007-9 -- Cl. 1A, Assigned Aaa -- Cl. 2A1, Assigned Aaa -- Cl. 2A2, Assigned Aaa -- Cl. 2A3, Assigned Aaa -- Cl. 2A4, Assigned Aaa -- Cl. M-1, Assigned Aa1 -- Cl. M-2, Assigned Aa2 -- Cl. M-3, Assigned Aa3 -- Cl. M-4, Assigned A1 -- Cl. M-5, Assigned A2 -- Cl. M-6, Assigned A3 -- Cl. M-7, Assigned Baa1 -- Cl. M-8, Assigned Baa2 -- Cl. M-9, Assigned Baa3 -- Cl. A-R, Assigned Aaa -- Cl. B, Assigned Ba1 DAYTON SUPERIOR: S&P Lifts Corporate Credit Rating to B from B- --------------------------------------------------------------- Standard & Poor's Ratings Services raised its corporate credit rating on Dayton Superior Corp. to 'B' from 'B-' and raised its other ratings on the company. At the same time, S&P removed all ratings from CreditWatch, where they were placed with positive implications on June 18, 2007. The outlook is stable. S&P assigned its 'B' rating to Dayton's proposed $195 million senior secured first-lien term loan B, with a recovery rating of '4', indicating the expectation for average (30%-50%) recovery in the event of a payment default. S&P also assigned a 'CCC+' rating, two notches below the corporate credit rating, to the company's proposed $85 million senior secured second-lien loan with a recovery rating of '6,' indicating the expectation of negligible (0% to 10%) recovery in the event of a payment default. The proceeds from the proposed term loans, in addition to borrowings under a new $130 million revolving credit facility and excess balance sheet cash, will be used to refinance the company's existing debt. "The upgrade reflects significant improvement in Dayton Superior's operating performance and credit measures over the past several quarters," said Standard & Poor's credit analyst Sean McWhorter. "These improvements were supported by good end-market demand for concrete forming and shoring products, improvement in operating margins, and a meaningful reduction in debt levels as a result of the company's December 2006 IPO. S&P expect that the company's operating results will continue to benefit from good momentum in its commercial and infrastructure end markets." Dayton Superior, based in Dayton, Ohio, is a leading manufacturer and provider of concrete construction products and forming and shoring equipment. "We could revise the outlook to negative if demand in the company's commercial end markets deteriorates meaningfully or if raw material costs escalate appreciably and the company cannot pass through those increases to customers, resulting in significant margin compression," Mr. McWhorter said. "We could revise the outlook to positive if the company's good operating performance continues, resulting in lower debt balances and a strengthened financial profile." DELHPI CORP: Moody's Says Deal with UAW-GM is Good for Industry --------------------------------------------------------------- The announcement of a tentative agreement between Delphi Corporation, the United Automobile Workers, and General Motors Corporation covering Delphi's labor contract in North America represents a constructive development in the automotive industry in North America. While the specifics of the agreement are not publicly disclosed, Moody's believes the agreement should help reposition Delphi with a more competitive cost structure in the region, facilitate lower cost parts for GM, and remove a near-term threat to industry production volumes. However, it is not the only threat on the horizon. Moody's does not anticipate any immediate ratings impact for suppliers or original equipment manufacturers (Delphi is not a monitored rating). If ratified by the UAW membership, Delphi would achieve a more competitive cost structure and become a more viable competitor in those sectors it has identified as its core focus that have a continuing U.S. presence. Through establishing greater certainty to its labor arrangements, financial valuations of Delphi are likely to be enhanced and accelerate plans for its emergence from bankruptcy. Similarly, by establishing a lower cost structure in its business units, many of which are designated as non-core, plans to dispose of certain Delphi operations are more likely to move forward. Agreements to sell several units have previously been announced, subject to court approval. For the broader supplier industry, the announcement also removes a level of uncertainty. The risks of disruption to production volumes of GM and other OEMs from Delphi related issues should ease assuming the tentative agreement were approved by Delphi's UAW membership. However, the converse would also be true if the agreement was not ratified. Moreover, labor contracts between the UAW and the Big Three are set to expire on September 14, 2007, and negotiations for a new contract have yet to formally begin. In the short term, should those negotiations be unfruitful and result in work stoppages, OEM production could be disrupted and adversely affect the broader supply chain. In the long term, the terms and conditions of a new master agreement are a critical factor to the structural competitiveness and financial viability of the Big Three. The proposed agreement is a constructive development for General Motors in that it lessens the risk of a disruption in component delivery from its major domestic supplier. In combination with the Delphi employee buyouts that have already been funded by GM, the agreement would also help to narrow the current $2 billion cost disadvantage that GM incurs on components currently supplied by Delphi. Moreover, Moody's believes that any subsidy by GM of the Delphi-UAW wage package will not be material relative to the amount of funds already devoted to the employee buyout program and relative to the OEM's substantial liquidity position. Notwithstanding these positive developments, the major near-term challenge facing the Big Three is the need to successfully negotiate a new UAW contract later this year that afford the U.S. OEMs material relief in the areas of health care costs and work rules. Progress in these areas will be critical to their ability to establish a more competitive domestic cost structure. "Ultimately, this agreement coupled with a new master agreement between the UAW and the OEMs could create a more stable operating environment for all suppliers and enhance their prospects. It also could lead to an increase in merger and acquisition activity at parts suppliers involving both private equity and strategic buyers " said Ed Wiest, VP & Senior Analyst at Moody's. "Of course, the structure of any transaction would be subject to market conditions, available financing and would determine the direction of any rating outcome" he continued. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908, GM employs about 280,000 people around the world. With global manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed $11,446,000,000 in total assets and $23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on July 31, 2007. ECO2 PLASTICS: Posts $6.8 Million Net Loss in Qtr. Ended March 31 ----------------------------------------------------------------- ECO2 Plastics Inc. reported a net loss of $6,810,000 on revenue of $99,000 for the first quarter ended March 31, 2007, compared with a net loss of $2,666,000 on revenue of $37,000 for the same period ended March 31, 2006. Cost of goods sold were $174,000 during the three months ended March 31, 2007, as compared to $26,000 in the three months ended March 31, 2006. The plant has begun ramping towards full-scale operation and as a result, significant volumes of inventory are consumed for quality testing during this period. Most of the tested material is shipped out of the plant at prices significantly lower than market standard, which has resulted in a negative gross profit number for the quarter. Total operating expenses for the three months ended March 31, 2007, approximated $3.3 million compared with $1.6 million in the comparative prior year period. Operating expenses increased in 2007 due primarily to increases in general and administrative expenses, due primarily to non-cash stock-based compensation of approximately $1.2 million relating to equity awards issuable in connection with employment agreements entered into with certain executive officers and related recruiter fees payable in equity securities, and increases in plant operations and technology development expenses, offset by decreases in consulting and legal expenses due to fewer equity based awards to consultants during 2007 as compared to 2006. The company recorded interest expense of approximately $3.4 million in the three months ended March 31, 2007, as compared to $114,000 in the three months ended March 31, 2006. The increase in interest expense for 2007 as compared to the prior year is due to increased average borrowings during 2006. The company has approximately $21 million of net operating loss carry-forwards at Dec. 31, 2006. At March 31, 2007, the company's consolidated financial statements showed $9,641,000 in total assets and $10,283,000 in total liabilities, resulting in a $642,000 total stockholders' deficit. The company's consolidated balance sheet at March 31, 2007, also showed strained liquidity with $517,000 in total current assets available to pay $7,144,000 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?212b Going Concern Doubt Salberg & Company P.A., in Boca Raton, Fla., expressed substantial doubt about ECO2 Plastics 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 the company incurred a net loss of approximately $20.8 million and used cash for operating activities of approximately $4.1 million during the year ended Dec. 31, 2006, and, as of that date, had a working capital deficiency of approximately $3.2 million and accumulated deficit of approximately $46.1 million. About ECO2 Plastics Eco2 Plastics Inc. (OTC BB: ECOO.OB) formerly Itec Environmental Group Inc., is engaged in the evolving field of plastics materials recycling. The company has developed a patent pending process and system, referred to as the Eco2TM Environmental System. The company's first full scale production facility was constructed in Riverbank, California and is mechanically complete, producing saleable product and ramping up to full scale operations. ET WATER: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor: ET Water Systems, LLC 100 Tamal Plaza, Suite 50 Corte Madera, CA 94925 Bankruptcy Case No.: 07-10747 Type of Business: The Debtor produces irrigation control systems that combine state-of-the-art horticulture science and proprietary web-based technology to automate the scheduling of sprinkler and drip irrigation for commercial, municipal and residential landscapes. See http://www.etwater.com/ Chapter 11 Petition Date: June 25, 2007 Court: Northern District of California (Santa Rosa) Debtor's Counsel: John H. MacConaghy, Esq. MacConaghy and Barnier 645 1st Street, W. Suite D Sonoma, CA 95476 Tel: (707) 935-3205 Total Assets: $584,943 Total Debts: $2,631,803 Debtor's List of its 20 Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ Western Electronics, LLC Trade Debt $87,678 Delta Corporation 5507 Paysphere Circle Chicago, IL 60674 Stephen Snow Technical Services $72,314 10 Heather Lane Orinda, CA 94563 Robert Half Trade Debt $20,502 Management Resources P.O. Box 60000 San Francisco, CA 94160-3484 Gordon A. Stewart Technical Services $13,700 AWS Convergence Technologies Trade Debt $10,500 Van Pelt, Yi & James, LLP Trade Debt $8,330 Programs Unlimited Technical Services $7,462 American Express Trade Debt $7,074 Jones Schiller & Co., LLP Trade Debt $6,170 Air Desk, Inc. Trade Debt $5,892 Robert Olson Deferred Compensation $4,167 Nacio Enterprise Solutions Trade Debt $3,980 ACP Interactive LLP Trade Debt $3,945 Katherine Wing Miscellaneous Claim $3,239 Blue Cross of California Health Insurance $2,569 Keith Payea Trade Debt $2,392 Mobile Mark, Inc. Trade Debt $2,028 Salesforce.com Trade Debt $1,490 Davis, Wright & Termaine, LLP Professional Fees $1,112 Ajilon Professional Staffing Trade Debt $1,063 GARRY OWEN: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Garry Owen II, LLC P.O. Box 100 Bullhead City, AZ 86430 Bankruptcy Case No.: 07-00287 Chapter 11 Petition Date: June 25, 2007 Court: District of Arizona (Yuma) Judge: Randolph J. Haines Debtor's Counsel: Carolyn J. Johnsen, Esq. Jennings, Strouss & Salmon, PLC The Collier Center, 11th Floor 201 East Washington Street Phoenix, AZ 85004-2385 Tel: (602) 262-5911 Fax: (602) 495-2696 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. GENERAL MOTORS: Moody's Says Agreement is Good for Auto Industry ---------------------------------------------------------------- The announcement of a tentative agreement between Delphi Corporation, the United Automobile Workers, and General Motors Corporation covering Delphi's labor contract in North America represents a constructive development in the automotive industry in North America. While the specifics of the agreement are not publicly disclosed, Moody's believes the agreement should help reposition Delphi with a more competitive cost structure in the region, facilitate lower cost parts for GM, and remove a near-term threat to industry production volumes. However, it is not the only threat on the horizon. Moody's does not anticipate any immediate ratings impact for suppliers or original equipment manufacturers (Delphi is not a monitored rating). If ratified by the UAW membership, Delphi would achieve a more competitive cost structure and become a more viable competitor in those sectors it has identified as its core focus that have a continuing U.S. presence. Through establishing greater certainty to its labor arrangements, financial valuations of Delphi are likely to be enhanced and accelerate plans for its emergence from bankruptcy. Similarly, by establishing a lower cost structure in its business units, many of which are designated as non-core, plans to dispose of certain Delphi operations are more likely to move forward. Agreements to sell several units have previously been announced, subject to court approval. For the broader supplier industry, the announcement also removes a level of uncertainty. The risks of disruption to production volumes of GM and other OEMs from Delphi related issues should ease assuming the tentative agreement were approved by Delphi's UAW membership. However, the converse would also be true if the agreement was not ratified. Moreover, labor contracts between the UAW and the Big Three are set to expire on September 14, 2007, and negotiations for a new contract have yet to formally begin. In the short term, should those negotiations be unfruitful and result in work stoppages, OEM production could be disrupted and adversely affect the broader supply chain. In the long term, the terms and conditions of a new master agreement are a critical factor to the structural competitiveness and financial viability of the Big Three. The proposed agreement is a constructive development for General Motors in that it lessens the risk of a disruption in component delivery from its major domestic supplier. In combination with the Delphi employee buyouts that have already been funded by GM, the agreement would also help to narrow the current $2 billion cost disadvantage that GM incurs on components currently supplied by Delphi. Moreover, Moody's believes that any subsidy by GM of the Delphi-UAW wage package will not be material relative to the amount of funds already devoted to the employee buyout program and relative to the OEM's substantial liquidity position. Notwithstanding these positive developments, the major near-term challenge facing the Big Three is the need to successfully negotiate a new UAW contract later this year that afford the U.S. OEMs material relief in the areas of health care costs and work rules. Progress in these areas will be critical to their ability to establish a more competitive domestic cost structure. "Ultimately, this agreement coupled with a new master agreement between the UAW and the OEMs could create a more stable operating environment for all suppliers and enhance their prospects. It also could lead to an increase in merger and acquisition activity at parts suppliers involving both private equity and strategic buyers " said Ed Wiest, VP & Senior Analyst at Moody's. "Of course, the structure of any transaction would be subject to market conditions, available financing and would determine the direction of any rating outcome" he continued. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed $11,446,000,000 in total assets and $23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on July 31, 2007. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908, GM employs about 280,000 people around the world. With global manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on May 28, 2007, Standard & Poor's Ratings Services placed General Motors Corp.'s corporate credit rating at B/Negative/B-3. At the same time, Moody's Investors Service affirmed GM's B3 Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. The rating outlook remains negative. GENERAL MOTORS: Offers 0% Financing for 3 Years on Select Vehicles ------------------------------------------------------------------ General Motors disclosed the "Transform Your Ride Sale," tied to the July 4 holiday release of DreamWorks Pictures and Paramount Pictures' live-action film "Transformers" from Executive Producer Steven Spielberg and Director Michael Bay, opening July 3, 2007. The "Transform Your Ride Sale" offers a qualified buyer 0% annual percentage rate for 36 months -- plus $1,000 cash -- on select Chevrolet, Buick, Pontiac and GMC vehicles. The "Transform Your Ride Sale" runs June 26 through July 9, 2007. "People who have recently switched to a GM vehicle tell us we've really changed their previous perceptions about our products," Jim Campbell, GM's director of Customer Relationship Management, said. "They love their new car or truck. We've enhanced the value of our cars and trucks with features like OnStar, XM Radio, superior quality and the best coverage in the business with a 5-year/ 100,000 mile powertrain warranty plus roadside assistance and courtesy transportation. Just look at the award-winning Chevrolet Silverado or hot HHR. The "Transform Your Ride Sale" gives everyone the opportunity to buy a new car or truck with outstanding style, great fuel economy, performance and value." Saturn will continue its innovative "Side by Side by Side" campaign and will be offering bonus cash on select models. Cadillac, Hummer and Saab also will continue to offer attractive deals on select models in their lineups. Eligible Vehicles List * Chevrolet: 2006 and 2007 Cobalt, Monte Carlo, Impala, HHR, TrailBlazer, Tahoe, Suburban, Avalanche and 2007 900-series Silverado * Buick: 2006 and 2007 Lacrosse, Lucerne and Rainier * Pontiac: 2006 and 2007 G5, G6, Grand Prix and Torrent * GMC: Envoy, Yukon, Yukon Denali, Yukon XL, Yukon XL Denali and 2007 900-series Sierra About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908, GM employs about 280,000 people around the world. With global manufactures its cars and trucks in 33 countries. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on May 28, 2007, Standard & Poor's Ratings Services placed General Motors Corp.'s corporate credit rating at B/Negative/B-3. At the same time, Moody's Investors Service affirmed GM's B3 Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. The rating outlook remains negative. GINGER EVANS: Case Summary & 18 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Ginger E. Evans 11 View Point Drive Dawsonville, GA 30534 Bankruptcy Case No.: 07-21208 Chapter 11 Petition Date: June 25, 2007 Court: Northern District of Georgia (Gainesville) Debtor's Counsel: Joseph J. Burton, Jr., Esq. Burton & Armstrong LLP Suite 1750 Two Ravinia Drive Atlanta, GA 30346 Tel: (404) 892-4144 Fax: (404) 892-0390 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's List of its 18 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Hicks Inc. $41,879 95 West Third Street P.O. Box 232 Luverne, AL 36049 American Express $35,000 P.O. Box 297812 Fort Lauderdale, FL 33329 Ellett Brothers $34,546 267 Columbia Avenue Chapin, SC 29036-8322 Henry's $30,439 Beretta $24,656 Benell USA $20,685 Pure Fishing, Inc. $17,234 Hoyt USA $15,183 Chattanooga Shooting Supply $10,147 Carhartt, Inc. $9,351 Discover $9,000 Rocky Shoes and Boots, Inc. $8,265 Boyt Harness Co. $5,894 Stearns, Inc. $3,270 Stoeger Industries $4,904 Wolverine World Wide Inc. $4,836 Danner, Inc. $4,717 Mossy Oak Apparel Co. $4,294 GLOBAL POWER: Creditors' Committee Wants to File Competing Plan --------------------------------------------------------------- The Official Committee of Unsecured Creditors in Global Power Equipment Group Inc. and its debtor-affiliates' chapter 11 cases wants the Debtors' third request for extension of their exclusive periods denied as it seeks authority to promptly file a competing plan. As reported in the Troubled Company Reporter on June 14, 2007, the Debtors had asked the Court to extend their exclusive period to file a chapter 11 plan to Oct. 1, 2007. The Debtors also asked the Court to extend their exclusive solicitation period to Nov. 30, 2007. In their request for extension, the Debtors disclosed that they were in talks with the Creditors Committee and the Official Committee of Equity Security Holders and argued that the extension would afford them time to better formulate a consensual chapter 11 reorganization plan. The Creditors' Committee opposes the requested extension contending that the Debtors "have had ample time to formulate and propose a consensual plan of reorganization." According to the Creditors' Committee, the costs associated with the delay that will ensue if the Court grants the requested extension are certain and substantial, while the benefits from any extension are speculative at best. Moreover, the Creditors' Committee argues that the current proposed extensions would leave no room for error in view of the Dec. 7, 2007 maturity of the Debtors' existing DIP financing facility. The Court is set to consider the matter at a July 10, 2007 hearing. Based in Tulsa, Oklahoma, Global Power Equipment Group Inc. aka GEEG Inc. -- http://www.globalpower.com/-- provides power generation equipment and maintenance services for its customers in the domestic and international energy, power and infrastructure and service industries. The company designs, engineers and manufactures a range of heat recovery and auxiliary equipment primarily used to enhance the efficiency and facilitate the operation of gas turbine power plants as well as for other industrial and power-related applications. The company has facilities in Plymouth, Minnesota; Tulsa, Oklahoma; Auburn, Massachusetts; Atlanta, Georgia; Monterrey, Mexico; Shanghai, China; Nanjing, China; and Heerleen, The Netherlands. The company and 10 of its affiliates filed for chapter 11 protection on Sept. 28, 2006 (Bankr. D. Del. Case No 06-11045). Attorneys at White & Case LLP and The Bayard Firm, P.A., represent the Debtors. Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP represent the Official Committee of Unsecured Creditors. As of Sept. 30, 2005, the Debtors reported total assets of $381,131,000 and total debts of $123,221,000. GRADY ENTERPRISES: Case Summary & Six Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Grady Enterprises LLC 18 East Avenue Wellsboro, PA 16901 Bankruptcy Case No.: 07-51539 Chapter 11 Petition Date: June 25, 2007 Court: Middle District of Pennsylvania (Wilkes-Barre) Debtor's Counsel: Samuel R. Grego, Esq. Dickie McCamey and Chilcote, P.C. Two PPG Place, Suite 400 Pittsburgh, PA 1522-5402 Tel: (412) 392-5507 Fax: (412) 392-5367 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's List of its Six Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ Citizens & Northern Bank Bank Loan $1,537,834 90 Main Street Wellsboro, PA 16901 Thomas and Judith Grady Loans $468,000 18 East Avenue Wellsboro, PA 16901 James West $410,000 1874 Round Top Road Wellsboro, PA 16901 Tioga County $18,524 Borough of Wellsboro Real Estate Taxes $18,273 Wellsboro School District $38,263 GREAT PANTHER: Posts CDN$3.9 Mil. Net Loss in Qtr. Ended March 31 ----------------------------------------------------------------- Great Panther Resources Ltd. reported a net loss of CDN$3,919,031 on mineral sales of CDN$3,563,207 for the first quarter ended March 31, 2007, compared with a net loss of CDN$2,973,437 on mineral sales of CDN$452,529 for the same period ended March 31, 2006. The increased production at the Topia and Guanajuato mines has resulted in the increase in revenues. Cumulative throughput for the Topia and Guanajuato operations for the quarter was 57,922 tons compared to 3,700 tons for the same period last year. Overall cash costs of sales for the three months ended March 31, 2007 was CDN$3,741,790 and amortization and depletion of mineral property, plant and equipment was $811,999. Overall general & administrative expenses increased to CDN$1,218,907 compared to $716,356 for the first quarter of fiscal 2006. This increase is reflective of the growth in the company's employee base from approximately 100 to approximately 450 and the expansion of the company's operations into Guanajuato. In the first quarter of fiscal 2006, the company's only operating mine was Topia. Project exploration costs for the three months ended March 31, 2007, was $1,275,203 compared to $259,701 for the three months ended March 31, 2006. The company had cash and cash equivalents of $5,579,424 as at March 31, 2007, as compared to $9,208,048 as at Dec. 31, 2006. This decrease is largely attributed to expenses incurred in exploration and the purchase of capital assets. At March 31, 2007, the company's consolidated balance sheet showed CDN$28,614,645 in total assets, $2,959,532 in total liabilities, and $25,655,113 in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?2130 Going Concern doubt KPMG LLP, in Vancouver, Canada, expressed substantial doubt about Great Panther Resources Ltd.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses and operating cash flow deficiencies. About Great Panther Headquartered in Vancouver, Canada, Great Panther Resources Limited (TSX: GPR) -- http://www.greatpanther.com/-- is a mining and exploration company. The company's current activities are focused on the mining of precious and base metals from its wholly owned properties in Mexico. In addition, Great Panther is also involved in the acquisition, exploration and development of other properties in Mexico. HAWKS LLC: Case Summary & Largest Unsecured Creditor ---------------------------------------------------- Debtor: Hawks, L.L.C. 11901 Northwest 4th Street Plantation, FL 33325 Bankruptcy Case No.: 07-14875 Chapter 11 Petition Date: June 25, 2007 Court: Southern District of Florida (Fort Lauderdale) Judge: John K. Olson Debtor's Counsel: Mark D. Cohen, Esq. 4000 Hollywood Boulevard, Suite 435S Hollywood, FL 33021 Tel: (954) 962-1166 Fax: (954) 962-1779 Total Assets: $5,000,000 Total Debts: $1,800,000 Debtor's Largest Unsecured Creditor: Entity Nature of Claim Claim Amount ------ --------------- ------------ Okeechobee Tax Collector R.E. taxes $6,500 307 Northwest 5th Avenue, Suite B Okeechobee, FL 34972 IMPERIAL PETROLEUM: Wants to Buy Apollo Oil and Gas Assets ---------------------------------------------------------- Imperial Petroleum, Inc. agreed to purchase certain oil and gas assets from Apollo Resources International Inc. and related subsidiaries. The assets are located in the four corners area of the United States, the intersection of the states of Utah, Colorado, New Mexico, and Arizona. Closing of the buy deal is scheduled for Aug. 1, 2007, subject to the normal due diligence requirements. Under the terms of the agreement, Imperial will pay Apollo $2.5 million in cash and assume scheduled liabilities of not more than $3.8 million and issue 5 million shares of Imperial's restricted common stock to Apollo. Imperial will become responsible for certain bonding requirements of Apollo affecting the assets and for future payment of certain pipeline rights-of- way affecting the properties. Jeffrey T. Wilson, president of Imperial said of the sale, "The Apollo purchase will more than double our net production and reserves and will increase our company's mix of oil reserves. We expect to fund the acquisition through our existing line of credit." About Imperial Petroleum Headquartered in Evansville, Indiana, Imperial Petroleum Inc. (OTCBB:IPMN) -- http://www.iptm.net/-- is an oil and natural gas exploration and production company. The company's balance sheet showed total assets of $4,762,063 and total liabilities of $10,619,001, resulting to total stockholders' deficit of $5,856,938 as of Jan. 31, 2007. INDYMAC HOME: Moody's Rates Class M-11 Certificates at Ba2 ---------------------------------------------------------- Moody's Investors Service assigned Aaa ratings to the senior certificates issued by IndyMac Home Equity Mortgage Loan Asset- Backed Trust, Series INABS 2007-B and ratings ranging from Aa1 to Ba2 to the subordinated certificates in the deal. The securitization is backed by IndyMac Bank F.S.B. originated adjustable and fixed-rate subprime mortgage loans. The ratings are based primarily on the credit quality of the loans, and on the protection from subordination, overcollateralization, excess interest, an interest rate swap agreement and an interest rate cap agreement. Moody's expects collateral losses to range from 6% to 6.5%. IndyMac Bank will service the mortgage loans. Moody's has assigned IndyMac Bank F.S.B its SQ2- servicer quality rating as a primary servicer of subprime loans. The complete rating actions are: Home Equity Mortgage Loan Asset-Backed Trust, Series INABS 2007-B Home Equity Mortgage Loan Asset-Backed Certficates, Series INABS 2007-B -- Cl. 1A-1, Assigned Aaa -- Cl. 1A-2, Assigned Aaa -- Cl. 2A-1, Assigned Aaa -- Cl. 2A-2, Assigned Aaa -- Cl. 2A-3, Assigned Aaa -- Cl. 2A-4, Assigned Aaa -- Cl. M-1, Assigned Aa1 -- Cl. M-2, Assigned Aa2 -- Cl. M-3, Assigned Aa3 -- Cl. M-4, Assigned A1 -- Cl. M-5, Assigned A2 -- Cl. M-6, Assigned A2 -- Cl. M-7, Assigned A3 -- Cl. M-8, Assigned Baa1 -- Cl. M-9, Assigned Baa2 -- Cl. M-10, Assigned Baa3 -- Cl. M-11, Assigned Ba2 JOAN FABRICS: Files Schedules of Assets and Liabilities ------------------------------------------------------- Joan Fabrics Corp. filed with the United States Bankruptcy Court for the District of Delaware, its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ------ ----------- A. Real Property $13,312,339 B. Personal Property $35,583,752 C. Property Claimed as Exempt D. Creditors Holding Secured Claims $58,464,698 E. Creditors Holding Unsecured Priority Claims $ 1,304,796 F. Creditors Holding Unsecured Non-priority Claims $20,421,378 ----------- ----------- TOTAL $48,896,091 $80,190,872 Based in Tyngsboro, Massachusetts, Joan Fabrics Corporation manufactures automotive and furniture upholstery fabrics. The company has a manufacturing facility in North Carolina and an affiliate entity in Mexico. The Debtor and its affiliate, Madison Avenue Designs LLC, filed for Chapter 11 protection on April 10, 2007 (Bankr. D. Del. Case Nos. 07-10479 and 07-10480). When the Debtors 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 chapter 11 plan expires on Aug. 8, 2007. K&F INDUSTRIES: Completed $1.8BB Deal Cues S&P to Withdraw Ratings ------------------------------------------------------------------ Standard & Poor's Ratings Services withdrew its ratings, including the 'B+' corporate credit rating, on White Plains, New York-based K&F Industries Inc. All ratings were removed from CreditWatch, where they were placed with positive implications on March 7, 2007. About $700 million of debt is affected. "The action follows the announcement that Meggitt-USA Inc., a wholly-owned unit of U.K.-based Meggitt PLC, has completed the acquisition of K&F Industries Holdings Inc. for about $1.8 billion, including retained or retired debt," said Standard & Poor's credit analyst Roman Szuper. KERASOTES SHOWPLACE: S&P Revises Outlook to Stable from Negative ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Kerasotes Showplace Theatres Holdings LLC to stable from negative, while affirming the 'B-' corporate credit rating on the company. "The outlook revision is based on our expectations that capital spending will begin to normalize next year, leading to a reversal of negative discretionary cash flow," said Standard & Poor's credit analyst Tulip Lim. The 'B-' corporate credit rating on Chicago-based Kerasotes reflects the risks related to the company's aggressive expansion plan and its high leverage. It also reflects the company's participation in the mature and highly competitive U.S. movie exhibition industry, exposure to the fluctuating popularity of Hollywood films, and risk of increased competition from the proliferation of entertainment alternatives and from shortening release windows. These risks are minimally offset by the company's strong regional market position in the Midwestern U.S. and the operating flexibility provided by its high degree of theater ownership--more than 40% of its venues. Kerasotes is the sixth-largest movie exhibitor in the U.S. by screen count. LBI MEDIA: Solid Operating Performance Cues S&P's Positive Outlook ------------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on LBI Media Inc. to positive from stable. The corporate credit rating was affirmed at 'B'. The outlook revision reflects the company's solid operating performance relative to radio peers and more cost- efficient capital structure pro forma for its proposed refinancing. At the same time, S&P assigned its 'CCC+' rating to LBI's proposed $225 million of senior subordinated notes due 2017. LBI is a Spanish-language TV-and-radio broadcaster based in Burbank, California. "The positive outlook reflects the potential for an upgrade over the intermediate term if LBI continues to increase its EBITDA and reduce leverage to the low-6x area," said Standard & Poor's credit analyst Michael Altberg. Proceeds from the subordinated notes are expected to be used to repay $150 million of existing 10.125% senior subordinated notes due 2012, repay $53 million of borrowings under the company's revolving credit facility, and fund the acquisition of a TV station in Salt Lake City, Utah, for $10 million. Pro forma for the transaction, LBI has total debt outstanding of $396.6 million as of June 30, 2007. The ratings reflect LBI's high debt leverage, cash flow concentration in a small number of large Hispanic markets in the U.S., intense competition for audiences and advertisers from much larger rivals, and the potential for additional debt-financed acquisitions. These risks are only partially offset by the company's niche position as an operator of Spanish-language radio and TV stations, its high EBITDA margin relative to peers, the discretionary cash flow potential of the broadcasting business, and broadly favorable Spanish-language advertising trends. Standard & Poor's analyzes LBI on a consolidated basis with its ultimate parent company, LBI Holdings I Inc. LIFE STYLE: Case Summary & 19 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Life Style Furniture Company, Inc. 102 Mabry Road Okolona, MS 38860 Tel: (662) 447-3878 Bankruptcy Case No.: 07-12127 Type of business: The Debtor manufactures upholstered living room furniture. Chapter 11 Petition Date: June 25, 2007 Court: Northern District of Mississippi (Aberdeen) Judge: David W. Houston, III Debtor's Counsel: Craig M. Geno, Esq. Harris Jernigan & Geno, P.L.L.C. P.O. Box 3380 Ridgeland, MS 39158-3380 Tel: (601) 427-0048 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's 19 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Daewoo International Corp. $1,095,462 1746-1 Sonjeong-dong, Kangseo-Gu Pusan, Korea 618-270 Stewart's $662,500 Farmers/Merchants Bank Building 425 Main Street Okolona, MS 38860 Foamex $633,585 Tupelo Division Pouring Plant P.O. Box 140 Tupelo, MS 38802 Morgan Fabric Corp. $321,808 4265 Exchange Avenue P.O. Box 58523 Los Angeles, CA 90053-0523 Danny Dempsey $170,000 Omega Motion $120,397 Market Square Furniture $105,928 Plaza Premier Prints, Inc. $64,119 Sino Concod (HK), Ltd. $62,444 R.E. Transportation, Inc. $56,088 M.&M. Planning Mill $51,924 B.M.T. Commodity Corp. $51,487 McNeely Plastic Products, $45,594 Inc. Southern Sales/B.B.&T. $42,706 Styleander Metal $42,549 Huntington Fabrics $39,996 Southern Components, Inc. $33,283 Design Resources, Inc. $33,164 Murphee Frame Supply $32,208 LUXURY AUTO: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Luxury Auto Imports of Sacramento, Inc. dba Auto Mundo dba Payless Car Sales dba Suzuki of Sacramento fdba Los Hermanos 3249 Fulton Avenue Sacramento, CA 95821 Bankruptcy Case No.: 07-24767 Chapter 11 Petition Date: June 25, 2007 Court: Eastern District of California (Sacramento) Judge: Thomas Holman Debtor's Counsel: Paul R. Bartleson, Esq. 1007 7th Street, Suite 214 Sacramento, CA 95814 Tel: (916) 447-6640 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. MARION JONES: Olympic Sprinter Claims She is Broke -------------------------------------------------- Marion Jones, a sprinter who won five track and field medals -- three gold and two bronze -- at the 2000 Sydney Olympics, is heavily in debt, according to various reports citing court documents. Various sources say that Ms. Jones made between $70,000 and $80,000 per race, plus $1 million from bonuses and endorsement deals. However, Ms. Jones claims that she doesn't know where all the money went. A 168-page deposition, part of a breach-of-contract suit Ms. Jones filed in Dallas against veteran track coach Dan Pfaff, describes a bank balance of $2,000, a bank foreclosure of her $2.5 million house last year, and the sale of two other properties to raise money. Legal fees since 2003 contributed to the sprinter's financial misery, various papers observe, including lawyers' expenses for a Bay Area Laboratory Co-Operative grand jury testimony, for negotiations with the U.S. Anti-Doping Agency in her fight to avoid being banned from competition, for a defamation lawsuit she filed against BALCO founder Victor Conte, who accused her of taking performance-enhancing drugs, and for taking on Mr. Pfaff in her breach-of-contract suit. Unfortunately for Ms. Jones, Mr. Pfaff countersued and won. The decree made her pay Mr. Pfaff $240,000 in unpaid training fees and legal expenses. The papers cited that Steve Riddick, the sprinter's most recent coach who has seen Ms. Jones drive a Porsche to training sessions in 2006, contends that Ms. Jones didn't seem penniless. MITEL NETWORKS: April 30 Balance Sheet Upside-Down by $202.6 Mil. ----------------------------------------------------------------- Mitel Networks Corp. reported a net loss of $35 million on total revenues of $384.9 million for the year ended April 30, 2007, compared with a net loss of $44.6 million on $387.1 million for the year ended April 30, 2006. The decrease in net loss is primarily due to the recognition of a gain on fair value adjustment on derivative instruments of $8.6 million for fiscal 2007, compared to a loss of $32.6 million in the prior year, partly offset by the increase in operating expenses, mainly due to litigation settlement expenses of $16.3 million involving a competitor's complaint for infringement of certain of the competitor's patents, and the $3.6 million increase in pre-tax special charges. During fiscal 2007, the company recorded pre-tax special charges of $9.3 million as a result of continuing efforts to improve the company's operational efficiency and realign its business to focus on IP-based communications solutions. The components of the charge include $8.7 million of employee severance and benefits incurred in the termination of 129 employees around the world, $400,000 of accreted interest related to lease termination obligations and $200,000 related to additional lease terminations in the period. The company recorded pre-tax special charges of $5.7 million in fiscal 2006. At April 30, 2007, the company's consolidated balance sheet showed $202.2 million in total assets, $333.3 million in total liabilities, and $71.5 million in redeemable common shares, resulting in a $202.6 million total stockholders' deficit. Full-text copies of the company's consolidated financial statements for the year ended April 30, 2007, are available for free at http://researcharchives.com/t/s?212a Going Concern Doubt Deloitte & Touche LLP, in Ottawa, Canada, in its comments on the difference between Canada and the United States of America reporting standards, stated that their audit report of Mitel Networks Corp.'s consolidated financial statements for the years ended April 30, 2007, and 2006, is expressed in accordance with Canadian reporting standards which do not require a reference to conditions and events that cast substantial doubt on the company's ability to continue as a going concern, when these are adequately disclosed in the financial statements. As shown in the financial statements for the year ended April 24, 2005, the six day transition period ended April 30, 2005, and the years ended April 30, 2006, and April 30, 2007, the company incurred losses of $49.6 million, $1.6 million, $44.6 million and $35.0 respectively. In addition, the put options issued in connection with the 10,000,000 common shares and 16,000,000 Series B Preferred Shares financing were set to mature on May 1, 2007. The 10,000,000 common shares are redeemable for cash at a price of CDN$2.85 per share representing a total of $25.8 million. These factors raise substantial doubt as to the company's ability to continue as a going concern. On April 24, 2005, the company changed its fiscal year end from the last Sunday in April to April 30. About Mitel Networks Mitel Networks Corp. -- http://www.mitel.com/-- provides unified communications solutions and services for business customers. Mitel's voice-centric IP-based communications solutions consist of a combination of telephony hardware and software that integrate voice, video and data communications with business applications and processes. Mitel is headquartered in Ottawa, Canada, with offices, partners and resellers worldwide. MKP CBO I: Moody's Junks Rating Class A-IL Floating Rate Notes -------------------------------------------------------------- Moody's Investors Service downgraded these notes issued by MKP CBO I, Ltd.: Class Description: $250,000,000 Class A-IL Floating Rate Notes Due February 2036 Prior Rating: B2 (on watch for possible downgrade) Current Rating: Caa1 According to Moody's, the rating action results from ongoing deterioration in the portfolio as reflected in the coverage tests. Moody's noted that as of the monthly trustee report issued May 25, 2007, the Class A Overcollateralization Percentage was 82.6% (106% trigger) and the Class B Overcollateralization Percentage was 72.7% (101% trigger). NEW HORIZONS: Dec. 31 Balance Sheet Upside-Down by $4.7 Million --------------------------------------------------------------- New Horizons Worldwide Inc. listed total assets of $27.6 million, total liabilities of $32.3 million, and total stockholders' deficit of $4.7 million in its 2006 annual report on Form 10-K filed with the Securities and Exchange Commission early this week. Concurrent with filing the Form 10-K, the company filed quarterly reports on Form 10-Q for the quarterly periods ended March 31, 2006, June 30, 2006, and Sept. 30, 2006. These filings were delayed due to the pending resolution of issues associated with the restatement of the company's 2003 results and the completion of the 2004, 2005 and 2006 audits. The company's financial statements for 2003, 2004 and 2005 are contained in current reports on Form 8-K filed with the SEC on Nov. 6, 2006, and Feb. 20, 2007. Year 2006 Results Revenue for the year ended Dec. 31, 2006 totaled $76.7 million, compared to $106.4 million in 2005. The company had a net loss for the year ended Dec. 31, 2006, of $2 million had a net loss of $7.3 million for the year ended Dec. 31, 2005. On an operating basis, the company lost $2.4 million in 2006 compared to an operating loss of $6.2 million in 2005. For the year ended Dec. 31, 2006, total system-wide revenues from all franchised and company-owned locations was $363.3 million compared to total system-wide revenues for 2005 of $368.3 million, a decrease of 1%. At the end of 2006, the company franchised or owned and operated a total of 286 training centers in 56 countries, compared to a total of 275 centers in 54 countries at the same time a year earlier. A full-text copy of the company's 2006 annual report is available for free at http://ResearchArchives.com/t/s?212f Current Outlook Mark A. Miller, president and chief executive officer, stated, "Over the last eight months we have filed three years of financial information. More importantly, the company has completed its strategic repositioning to focus on its core franchising segment. We have disposed of 11 company-owned centers since 2004, and currently own just three centers. Our cost-cutting initiatives are beginning to bear fruit as evidenced by the improvement in our franchising margin in 2006 from 2005. While we continue to face challenges in our company-owned centers, we remain confident that this segment of the business, while much smaller than in recent years, will operate profitably in 2007." Mr. Miller continued, "2006 was a year of significant change for New Horizons. We undertook a comprehensive review of our value proposition to our customers and franchisees and made significant progress in realigning our corporate structure to better serve the needs of these key constituents. By shifting our focus to drive revenue through the franchise network we have better aligned ourselves with our franchisees, and have begun to see improvements that should lead to sustainable profitability." About New Horizons Anaheim, California-based New Horizons Worldwide Inc. (Pink Sheets: NEWH) - http://www.newhorizons.com/-- franchises the New Horizons Computer Learning Center brand in the U.S. and around the world. It also owns and operates computer training centers in the U.S. and more than 280 centers in 56 countries. New Horizons Computer Learning Centers is an independent IT training company by IDC in 2006. NEWCASTLE CDO: Note Redemption Prompts S&P to Withdraw Ratings -------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings on the class I-MM, II-FL, II-FX, III-FL, III-FX, IV-FL, IV-FX, and V notes issued by Newcastle CDO III Ltd., a cash flow CDO of ABS transaction consisting mainly of CMBS and REIT securities. The rating withdrawals follow the optional redemption of the notes by the issuer at the direction of the majority of the preference shareholders pursuant to Condition 5 of Schedule 4 of the trust deed. The redemption took place on the June 25, 2007, payment date. Ratings Withdrawn Newcastle CDO III Ltd. Rating Balance ------ ------- Class To From Current Previous ----- -- ---- ------- -------- I-MM NR AAA/A-1 0.00 $395,000,000 II-FL NR AA 0.00 $15,000,000 II-FX NR AA 0.00 $7,500,000 III-FL NR A 0.00 $22,500,000 III-FX NR A 0.00 $5,000,000 IV-FL NR BBB 0.00 $10,000,000 IV-FX NR BBB 0.00 $5,000,000 V NR BB 0.00 $20,000,000 NR - Not rated. NORTHCORE TECH: March 31 Balance Sheet Upside-Down by CDN$2.6 Mil. ------------------------------------------------------------------ Northcore Technologies Inc. reported a net loss for the first quarter of CDN$550,000. This compares to a net loss of CDN$571,000 in the fourth quarter of 2006. In the first quarter of 2006, Northcore reported a net loss of CDN$480,000, a total that included income from discontinued operations of CDN$205,000. Northcore reported first quarter revenues of CDN$322,000, an increase of four percent over the CDN$309,000 the company generated in the fourth quarter of 2006. Nortchcore reported first quarter 2006 revenues of CDN$372,000. "Our revenue performance in the first quarter met our expectations, and as a number of our recently signed customer service agreements are at their initial stage, we anticipate incremental revenue growth in upcoming quarters," said Jeff Lymburner, chief executive officer of Northcore Technologies Inc. Northcore also reported an EBITDA loss in the first quarter of 2007 of CDN$368,000. This compares to an EBITDA loss of CDN$374,000 in the fourth quarter of 2006 and an EBITDA loss of CDN$373,000 in the first quarter of 2006. EBITDA loss is defined as losses before interest, taxes, depreciation, amortization, employee stock options, and discontinued operations. Northcore considers EBITDA to be a meaningful performance measure as it provides an approximation of operating cash flows. As at March 31, 2007, Northcore held cash and cash equivalents of CDN$93,000, and accounts receivable of approximately CDN$280,000. At March 31, 2007, the company's consolidated balance sheet showed CDN$510,000 in total assets, CDN$3,192,000 in total liabilities, resulting in a CDN$2,682,000 total stockholders' deficit. The company's consolidated balance sheet at March 31, 2007, also showed strained liquidity with CDN$430,000 in total assets available to pay CDN$1,285,000 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?2131 Going Concern Doubt KPMG LLP, in Toronto, Canada, expressed substantial doubt about Northcore Technologies Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses from operations and net capital deficiency. About Northcore Technologies Headquartered in Toronto, Canada, Northcore Technologies Inc. (TSX: NTI.TO) -- http://www.northcore.com/-- provides core asset solutions that help organizations source, manage and sell their capital equipment. Northcore works with a growing number of customers and partners in a variety of sectors including oil and gas, government, and financial services. Current customers include GE Commercial Finance, Paramount Resources and Trilogy Energy Trust. NORTHWESTERN CORP: S&P Retains Negative Watch on BB+ Credit Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services said that the 'BB+' corporate credit rating on electric and gas utility NorthWestern Corp. remains on CreditWatch with negative implications. The CreditWatch update follows the utility's filing with the Montana Public Service Commission. The commission is considering Babcock & Brown Infrastructure Ltd.'s acquisition of NorthWestern. "We will resolve the CreditWatch listing after reviewing the commission's final decision related to the acquisition, financing of the acquisition if completed, and NorthWestern's resulting creditworthiness," said Standard & Poor's credit analyst Gerrit Jepsen. Under the newly filed proposal, Babcock & Brown indicates that it would fund the acquisition by issuing $250 million of new debt, down from $505 million, and a mix of its own funds at an intermediate holding company. In addition, the company would assume NorthWestern's existing debt. Sioux Falls, South Dakota-based NorthWestern had $730 million of total debt, including long-term capital leases, as of March 31, 2007. OLDE DOMINION: Hires Stanton & Associates as Bankruptcy Counsel --------------------------------------------------------------- Olde Dominion Land Development Inc. obtained permission from the the U.S. Bankruptcy Court for the Eastern District of Virginia to employ Thomas J. Stanton and Stanton & Associates, P.C. as its bankruptcy counsel. Mr. Stanton and his firm will: a) take all necessary action to protect and preserve the Debtor's estate, including the prosecution of actions on the Debtor's behalf, the defense of any actions commenced against the Debtor, the negotiation of disputes in which the Debtor is involved, and the preparation of objections to claims filed against the Debtor's estate; b) prepare on behalf of the Debtor all necessary motions, applications, answers, orders, reports, and papers in connection with the administration of the Debtor's estate; c) formulate and prosecute on behalf of the Debtor a plan of reorganization and all related transactions and any revisions or amendments relating to same; and d) perform all other necessary legal services in connection with Chapter 11 case. Olde Dominion will pay Mr. Stanton $300 per hour for his services, while the firm's law clerks and paralegals will be paid at $80 per hour. Prior to the Debtor's bankruptcy filing, Stanton & Associates received from Michael A. Iacovacci, II, the sole stockholder of Olde Dominion $3,000 for professional services performed prior to the Debtor's bankruptcy filing. In connection with professional services to be performed on the bankruptcy filing and thereafter, Stanton & Associates received from Mr. Iacovacci on behalf of Olde Dominion a $12,000 retainer. Mr. Stanton ascertains that he and his firm do not hold any interest adverse to the Debtor or the estate and that they are "disinterested persons" as that term is defined in section 101(14) of the Bankruptcy Code. Headquartered in Sterling, Va., Olde Dominion Land Development Inc. develops real estate property. The company filed for Chapter 11 protection on April 13, 2007 (Bankr. E.D. Va. Case No. 07-10897). No Official Committee of Unsecured Creditors has been appointed in this case to date. When the Debtor sought protection from its creditors, it listed assets and liabilities between $1 million to $100 million. OMI CORP: $2.2 Bil. Teekay Deal Prompts S&P to Withdraw Ratings --------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings on OMI Corp. The action follows the company's $2.2 billion acquisition by an entity formed by Teekay Shipping Corp. (BB+/Watch Negative/--) and A/S Dampskibsselskatbet TORM. Rated senior unsecured notes of OMI are being acquired in a cash tender offer by the buyers. Teekay and TORM have said that they plan to divide the assets of OMI. ONEIDA LTD: Moody's Rates Corporate Family Rating at B3 ------------------------------------------------------- Moody's Investors Service assigned a B3 rating to Oneida, Ltd.'s new senior secured first lien bank facility and a B2 corporate family rating to the company. The rating outlook is stable. The ratings assigned are based on preliminary terms as outlined by the company, and are subject to receipt and final review of executed documents. These represent first time ratings for Oneida following its emergence from voluntary bankruptcy in September 2006. The company plans to use proceeds from the term loan and a portion of cash to refinance the existing term loan that was put in place following the emergence, pay a $30 million special dividend to preferred equity holders, and pay related fees, expenses and prepayment penalties. Ratings assigned are: Oneida, Ltd.: -- Corporate family rating at B2 -- Probability of default rating at B2 -- $120 million first-lien Term Loan due 2013 at B3 (LGD 4, 62%) Oneida's B2 corporate family rating reflects the company's lower debt obligations, stronger liquidity and improved credit metrics that came as a direct result of its emergence from bankruptcy in September 2006. As part of this process, the company was able to reduce debt by about $100 million and terminate $41 million of pension plan obligations. Pro forma for the current transaction, Moody's estimates debt to be about 5 times latest twelve months' EBITDA of about $40 million, which is comfortably in the "B" rating category. The rating also reflects the significant improvement in its cost structure as a result of completing the shift to a 100% outsourced business model in March 2005, which resulted in gross margin improvement to over 35% as of March 2007 from about 22% at the end of January 2005. These actions should provide sufficient cushion, enabling the company to invest in future growth. Further supporting the rating is the company's leading market positions in the tableware industry, its diversified customer base in both the consumer and foodservice segments, and its continued-strong brand name recognition. However, the rating is constrained by the significant revenue declines that have occurred over the last several years as a result of past service issues and failure to react to changing consumer tastes, which the company has corrected, and shifting industry trends and planned declines such as exiting unprofitable businesses. Oneida's revenue has declined from over $500 million in 2001 to about $350 million today. Although the company has identified and begun to implement several new growth initiatives, it could be met with challenges including the need to improve brand relevance, or fundamental industry issues such as increased penetration from private label goods, consolidation among department store customers and the shift toward dual sourcing or direct sourcing from foreign manufacturers by certain key customers. The stable outlook reflects Moody's expectation that Oneida's post-emergence cost structure and adequate liquidity will provide satisfactory flexibility to withstand near-term challenges as the company continues to implement its operational restructuring plan and growth initiatives. The outlook assumes that the company will steadily improve operating and financial performance in 2007 and 2008 through modest revenue growth and profit retention, and will generate solid free cash flows and steadily reduce debt. Headquartered in Oneida, New York, Oneida, Ltd. is a leading marketer and distributor of tableware products, including metalware, dinnerware, glassware and other tabletop accessories. The company's key operations are in North America, U.K. and Australia, and revenue is estimated to be about $350 million. OPTI CANADA: Moody's Rates Pending $750 Mil. Senior Notes at B1 --------------------------------------------------------------- Moody's assigned a B1 rating to OPTI Canada Inc.'s pending $750 million 7-year senior second secured note offering. Moody's affirms OPTI's Ba3 corporate family and B1 senior second secured note ratings. The note rating is notched to B1 to reflect contractual subordination to a CDN$500 million first secured revolving credit facility maturing December 2011. Note proceeds will fund a roughly $80 million interest reserve account, retire OPTI's $450 million first secured Term Loan B, and fund Phase I cost overruns. OPTI management states that further cost overruns would be equity funded. The rating outlook is stable subject to further project cost overruns being equity funded, Phase I project completion, start- up, and commercial operations performing reasonably to design expectations, and project costs for Phase II, III, and IV being funded satisfactorily with by equity and Phase I cash flow. OPTI will need to reasonably sustain its development pace, completion timing, project cost, and operating performance goals and oil and natural gas market conditions will generally need to remain historically strong. The ratings reflect strong asset coverage, the late stage of Phase I development, OPTI's stated commitment to fund any further cost overruns with new equity, and its funding of visible Phase I costs to completion with committed long term funding. The ratings also reflect escalated costs since the original Ba2 corporate family ratings were assigned, project cost, completion and performance risks, and the specific need to see that OPTI's ore-crude unit operates to design specifications. The dual critical issues to the ore-crude unit is that such a gasification and hydrogen generation facility have not yet been operated at such a commercial scale and that OPTI's critical and very costly bitumen upgrader can not operate with out the Ore-crude unit. The ratings are restrained by: * substantial front-end leverage and risk of completing Phases I and II on time and on budget; * very high front-end capital costs and complexity of integrated oil sands/upgrader projects; * characteristic project start-up risks; * the challenge of keeping all key interrelated units online once in commercial operations, * considerable uncertainty about the pivotal ultimate sustainable steam/oil ratio; * exposure to far higher SAGD production costs if the upgrader's asphaltene gasification unit is down; and * the inability of the upgrader to run if the gasification unit is down. The future scale of bitumen production, and operating and capital costs of that production, face the inherent risk across the areal extent of OPTI/Nexen's acreage of inconsistent reservoir rock homogeneity, quality, and reservoir thickness; existence of permeability barriers that can impede steaming and production; and amount of steam needed per barrel of produced bitumen. Also, the upgrader's sustainable synthetic crude yield per bitumen barrel, unit production costs, and unscheduled downtime pattern will not be clear until it has been operating for several quarters. The ratings are supported by: * almost CDN$1.4 billion of first-in cash common equity; * a very large world scale resource base engineered by a major third-party engineering firm; * the deep pockets, managerial, operational, and technical depth, services sector influence, and synthetic crude oil marketing capacity of investment grade 50% partner Nexen Inc. (Baa2 senior unsecured rating); * a narrowing of the reservoir risk band through evaluation of drilling and subsurface information derived from 78 Phase I horizontal steam injection and production well pairs, 95 other delineation wells in the Leismer leases, and 60 other delineation wells in Cottonwood; and * surface project technology and design that is deemed to not encompass inordinate or insurmountable risk to completion or ongoing performance of the project. The ratings are supported by * a one year interest reserve account and an up to 50% cash sweep; * OPTI's call on CDN$202 million of contingent equity from certain private investors; * a third party technical evaluation of OPTI's drilling program, including well pair location, well string architecture and drilling procedures, and indicating reasonably low drilling risk across a large established reserve base; and * SAGD technology is more than 7 years into commercial status after 20 years of pilot project experience in the region. Through wholly-owned OPTI Long Lake L.P. OPTI holds a 50% undivided interest (with Nexen holding the other 50%) in the four phased greenfield integrated development of three oil sands leases in Alberta, Canada. Each phase will consist of steam assisted gravity drainage production of bitumen and its subsequent upgrading into synthetic crude oil. Upgrading of bitumen includes atmospheric and vacuum distillation, deasphalting, asphaltene gasification, hydrogen generation, and hydrocracking into light sweet synthetic crude oil. Each project phase would contain a SAGD operation and a bitumen upgrader. Each phase is designed yield approximately 72,000 barrels/day of bitumen (of which 50% is OPTI's share) which, after hydrogenation, cracking, and upgrading, would yield approximately 57,700 barrels per day of sweet syncrude oil (of which 50% is OPTI's share). OPTI and Nexen are deep in Phase I development. Phase I steam injection commenced in second quarter 2007. The partners expect an initial bitumen production response in xxxx. The partners plan to bring the upgrader to production in third quarter 2007. OPTI expects full design Phase cash flow to be reached during 2008. The partners have also begun spending for the nearly identical Phase II. Moody's believes that, in light of the fact that Phases II, III, and IV will be nearly identical to Phase I, and given Phase I's current cost estimates, and given continuing sector cost pressures, we believe Phases II, III, and IV will cost in the range of CDN$6 billion to CDN$7 billion each (50% OPTI), possibly considerably more. OPTI's 50% share of Phase I proven undeveloped and probable bitumen reserves is approximately 455 million barrels. Assuming Phases II, III, and IV are sanctioned, we expect OPTI's 50% share of capital spending to be at least CDN$2 billion per year in 2010 through 2013. In an oil market characteristic with US$55 per barrel of West Texas Intermediate oil prices, debt would rise to excess of CDN$6 billion by 2013 unless OPTI issues substantial equity. OPTI Canada Inc. is headquartered in Calgary, Alberta, Canada. ORTHOMETRIX INC: March 31 Balance Sheet Upside-Down by $2.2 Mil. ---------------------------------------------------------------- Orthometrix Inc. reported a net loss of $364,202 on revenue of $580,493 for the first quarter ended March 31, 2007, compared with a net loss of $253,167 on revenue of $748,066 for the same period ended March 31, 2006. The decrease in revenue was primarily due to a decrease in Orbasone(TM) system sales during 2007. The increase in net loss is attributable to the decrease in revenue, the increase in cost of sales, and the increase in interest expense, partly offset by the decrease in operating expenses. The company did not incur any research and development expense for the three months ended March 31, 2007, compared with R&D expense of $42,031 for the three months ended March 31, 2006. The decrease was primarily due to the suspension of all research and development activities. Interest expense increased $144,284 to $175,929 for the three months ended March 31, 2007, from $31,645 for the three months ended March 31, 2006. Interest expense increased due to the increase in borrowings bearing a higher interest rate. At March 31, 2007, the company's consolidated balance sheet showed $1,284,876 in total assets and $3,491,800 in total liabilities, resulting in a $2,206,924 total stockholders' deficit. The company's consolidated balance sheet at March 31, 2007, also showed strained liquidity with $1,180,398 in total current assets available to pay $3,440,670 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?212c Going Concern Doubt As reported in the Troubled Company Reporter on June 8, 2007, Radin Glass & Co. LLP, in New York, expressed substantial doubt about Orthometrix Inc.'s ability to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2006. The auditing firm pointed to the company's recurring operating losses and net capital deficit. About Orthometrix Inc. Based in White Plains, N.Y., Orthometrix Inc. -- (Other OTC: OMRX) -- http://www.orthometrix.net/-- engages in the marketing, sale and service of various musculoskeletal products for use in pharmaceutical research, diagnostic, and monitoring of bone and muscle disorders in sports medicine, rehabilitative medicine, physical therapy, and pain management. It operates through two divisions: Healthcare, and Sports and Fitness. OUR LADY'S: Voluntary Chapter 11 Case Summary --------------------------------------------- Debtor: Our Lady's, L.L.C. 4165 Eaton Street Mountain View, CO 80212 Bankruptcy Case No.: 07-16676 Chapter 11 Petition Date: June 25, 2007 Court: District of Colorado (Denver) Judge: Michael E. Romero Debtor's Counsel: Barry K. Arrington, Esq. Arrington & Associates, P.C. 5310 Ward Road, Suite G-07 Arvada, CO 80002 Tel: (303) 205-7870 Total Assets: $1,140,000 Total Debts: $550,000 The Debtor does not have any creditors who are not insiders. PEOPLE'S CHOICE: Poor Credit Support Cues S&P to Lower Ratings -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on the class B1 and B2 certificates from People's Choice Home Loan Securities Trust Series 2004-1. S&P placed the rating on class B1 on CreditWatch with negative implications and removed the rating on class B2 from CreditWatch, where it was placed with negative implications April 11, 2007. At the same time, S&P placed its 'BBB-' rating on the B4B class from series 2005-1 on CreditWatch with negative implications. The negative rating actions reflect the deterioration of available credit support to the respective certificates and less-than- sufficient credit enhancement percentages at the previous rating levels. Monthly excess interest has not been sufficient to cover monthly net losses incurred by both transactions, which has led to the erosion of overcollateralization below its respective targets for both deals. O/C has been deficient over the past 18 remittance periods for series 2004-1 and the past four remittance periods for series 2005-1. As of the May 2007 remittance period, series 2004-1 was seasoned 37 months and had stepped down, thereby releasing additional O/C. Series 2005-1 was seasoned 28 months and was passing its delinquency and cumulative loss triggers. Cumulative losses are 1.78% ($9.00 million) of the original pool balance for series 2004-1 and 1.55% (17.04 million) for 2005-1, while total delinquencies are 24.39% and 31.77%, respectively, of the current pool balances. Standard & Poor's will continue to closely monitor the performance of both classes with ratings on CreditWatch negative. 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. Conversely, if delinquencies continue to translate into substantial realized losses in the coming months and continue to erode available credit enhancement, S&P will take further negative rating actions on these classes, and possibly on the more senior tranches. S&P removed the rating on class B2 from series 2004-1 from CreditWatch with negative implications because it was 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 collateral for both deals initially consisted of conventional, one- to four-family, adjustable- and fixed-rate mortgage loans secured by first and second liens on residential real estate properties. Rating Lowered and Placed on Creditwatch Negative People's Choice Home Loan Securities Trust Series 2004-1 Rating ------ Class To From ----- -- ---- B1 BB-/Watch Neg BBB- Rating Lowered and Removed from Creditwatch Negative People's Choice Home Loan Securities Trust Series 2004-1 Rating ------ Class To From ----- -- ---- B2 CCC B/Watch Neg Rating Placed on Creditwatch Negative People's Choice Home Loan Securities Trust Series 2005-1 Rating ------ Class To From ----- -- ----- B4B BBB-/Watch Neg BBB- PLEASANT CARE: Taps Hunter Richey as Special Regulatory Counsel --------------------------------------------------------------- Pleasant Care Corporation and its debtor-affiliates ask authority from the U.S. Bankruptcy Court for the Central District of California to employ Hunter Richey Di Benedetto & Eisenbeis, L.L.P. as Special Regulatory Counsel. Before the filing for bankruptcy and given the significant number of operated skilled nursing facilities, the Debtors received various citations from the California Department of Health Services. In connection with assessing and addressing such citations, the Debtors routinely consulted with and received legal advice and guidance from Hunter Richey as one of their regulatory counsel. In addition to advice relating to specific DHS citations, Hunter Richey also provided the Debtors with legal advice and guidance as to general regulatory issues as they arose. Win R. Richey tells the Court that the firm's attorneys bill $320 per hour while paralegals bill $125 per hour. Mr. Richey tells the Court that the firm is disinterested as that term is defined in Section 101(14) of the U.S. Bankruptcy Code. Mr. Richey can be contacted at: Win R. Richey, Esq. Hunter Richey Di Benedetto & Eisenbeis, L.L.P. 520 Capitol Mall, Suite 400 Sacramento, CA 95814 Tel: (916) 491-3000 Fax: (916) 491-3080 About Pleasant Care Based in La Canada, California, Pleasant Care Corporation and its affiliates -- http://www.pleasantcare.com/-- provide nursing home care. The company and four of its affiliates filed for chapter 11 protection on March 22, 2007 (Bankr. C.D. Calif. Lead Case No. 07-12312). Ron Bender, Esq., Monica Y. Kim, Esq., and Jacqueline L. Rodriguez, Esq., at Levene, Neale, Bender, Rankin & Brill LLP, represent the Debtors. Samuel R. Maizel, Esq., at Pachulski Stang Ziehl Young Jones & Weintraub LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts between $1 million and $100 million. PLUM CREEK: Moody's Revises Outlook to Positive from Stable ----------------------------------------------------------- Moody's Investors Service revised the outlook for the Baa3 senior unsecured rating of Plum Creek Timberlands, LP to positive, from stable. The rating agency cited the timber REIT's progress in establishing leadership in timberland ownership, lowering volatility of cash flows and returns, and enhancing the value of its core portfolio. Plum Creek has 8.2 million acres of timberlands located throughout 18 states. It is the largest private landowner in the USA. Plum Creek's timber is diversified in terms of species in a well laddered maturity profile, another plus. These traits combine to significantly lower vulnerability to adverse weather, pests, fires and disease. Furthermore, the company enhances the value of its core portfolio by identifying for sale parcels of non-core and higher-and-better-use timberlands. The former are typically lands which are unpractical or uneconomical for Plum Creek to maintain; the latter are properties which command premiums to core timberland value when developed for residential use, or set aside for purposes of conservation or recreation. Sales proceeds are reinvested into core timberland acquisitions. The firm's low margins relative to more mainstream REITs are a result of the material costs required for harvesting, silviculture and reforestation. Volatility of returns is high for Plum Creek when compared to traditional REITs, too, though stability has increased when examining more recent time periods, as the company is benefiting from growth and diversification of its timberland base. According to Moody's, this trend is an important driver of the REIT's improving credit profile. In addition, returns and fixed charge coverage are very strong when compared to other Baa rated REITs. The positive rating outlook reflects Moody's expectations that Plum Creek will increase leadership in terms of size and diversity while continuing to demonstrate stability of cash flow through the forest product cycle. Moody's also anticipate that manufacturing operations will remain a small platform. Moody's will likely upgrade Plum Creek's ratings should the REIT continue to demonstrate improved cash flow stability through the forest product cycle while maintaining net debt/EBITDA levels below 4.5x. Positive ratings momentum would also derive from sustained improvement in EBITDA margin to above 40%, though we view this as less likely to occur. Conversely, Moody's would return the outlook to stable without raising the company's ratings if leverage increased in excess of 5.5x net debt/EBITDA, sustained fixed charge coverage below 3x, or the REIT incurred secured debt greater than 10% of assets. Other factors that could place downward pressure on the ratings include any severe and prolonged downturn in timber pricing which lowers Plum Creek's returns and the value of its portfolio, or increases in the firm's manufacturing operations relative to timber and timberlands which would likely lead to greater volatility. The outlook was revised to positive from stable for these ratings: Plum Creek Timber Company, Inc. -- (P)Ba2 preferred shelf Plum Creek Timberlands, LP -- Baa3 senior unsecured -- (P)Baa3 senior unsecured shelf -- (P)Ba1 subordinate shelf In its most recent rating action with respect to Plum Creek, Moody's affirmed the REIT's senior debt at Baa3 with a stable outlook in April 2006. Plum Creek Timber Company, Inc. (NYSE: PCL) is a timber REIT headquartered in Seattle, Washington, USA and is the largest private landowner in the nation with more than 8 million acres of timberlands in major timber producing regions of the USA and 10 wood products manufacturing facilities in the Northwest. PUBLICARD INC: Court Fixes July 23 as Claims Filing Deadline ------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of New York set July 23, 2007, as the deadline for filing proofs of claim against PubliCARD Inc. for claims arising prior to May 17, 2007. The Court also set Nov. 13, 2007, as the claims bar date for governmental units. Proofs of claim must be received on their respective bar dates on or before 4:00 p.m. by: U.S. Bankruptcy Court Southern District of New York Re: PubliCARD Inc. Claims Processing One Bowling Green New York, NY 10004 Headquartered in New York, PubliCARD Inc. fka Publicker Inc. filed a chapter 11 petition on May 17, 2007 (Bankr. S.D.N.Y. Case No. 07-11517). David C. McGrail, Esq., at the Law Offices of David C. McGrail in New York represents the Debtor in its restructuring efforts. The company listed assets and debts between $100,000 to $500,000 when it sought bankruptcy protection. RITCHIE (IRELAND): Section 341(a) Meeting Set for August 3 ---------------------------------------------------------- The United States Trustee for Region 2 will convene a meeting of Ritchie Risk-Linked Strategies Trading (Ireland) Ltd. and Ritchie Risk-Linked Strategies Trading (Ireland) II Ltd.'s creditors on Aug. 3, 2007, at 2:30 p.m. at the Office of the United States Trustee at 80 Broad Street, Fourth Floor in New York City. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About Ritchie Risk-Linked 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 -- http://www.ritchiecapital.com/-- The Debtors were formed as special purpose vehicles to invest in life insurance policies in the life settlement market. The Debtors filed for Chapter 11 protection on June 20, 2007 (Bankr. S.D.N.Y. Case Nos. 07-11906 and 07-11907). Allison H. Weiss, Esq., Peter A. Ivanick, Esq., at LeBoeuf, Lamb, Greene & MacRae LLP, represent the Debtors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of more than $100 million. The Debtors' exclusive period to file a Chapter 11 plan expires on Oct. 18, 2007. RJ FRITZ: 8 Hooters Franchises Close as Liquidation Measures Begin ------------------------------------------------------------------ Eight Hooters restaurants located in New Hampshire, New York, Massachusetts and Rhode Island, all of which are franchised by R.J. Fritz L.P., closed on Monday as directed by the U.S. Bankruptcy Court for the District of Massachusetts, Boston Division, various sources reports. According to Ashley Smith of Nashua Telegraph, on June 20, 2007, the Court approved a request of U.S. Trustee Assistant John Fitzgerald to convert the Chapter 11 cases of R.J. Fritz L.P. and its debtor-affiliates to a Chapter 7 liquidation proceeding. In his motion filed June 19, 2007, Mr. Fitzgerald argued that the Debtors couldn't possibly restructure and pay outstanding debts. Headquartered in Boston, Massachusetts, R.J. Fritz L.P. dba Hooters of Boston is a franchise of the Altanta-based restaurant chain Hooters of America, Inc. The company and its debtor- affiliates filed for bankruptcy on Oct. 6, 2006 (Bankr. D. Mass. 06-13542). Melvin S. Hoffman, Esq., at Looney & Grossman, LLP, represents the Debtors. When the Debtors filed for protection from their creditors, they estimated assets between $100,000 to $1 million and debts between 1 million and $100 million. SAI HOLDINGS: Court Approves DoveBid as Auctioneer -------------------------------------------------- The United States Bankruptcy Court for the North District of Ohio gave SAI Holdings Ltd. and its debtor-affiliates permission to employ DoveBid Inc. as their auctioneer. As reported in the Troubled Company Reporter on June 11, 2007, the Debtors told the Court that DoveBid will not receive a commission. However as compensation, DoveBid will charge each successful bidder a standard buyer's premium of 15% of the sales price of each asset sold in addition to the purchase price as bid, with an additional 1% payable by any purchaser electing to pay via credit card. DoveBid will remit to the Debtors from those sums collected as buyer's premium a sum equal to 5% of the gross proceeds collected from purchasers participating online and 6% of the gross proceeds collected from purchasers participating on-site. In addition, the Debtors have agreed to: (i) provide Dovebid an allowance towards certain advertising and marketing expenses; (ii) reimburse DoveBid for pre-approved actual out-of-pocket labor expenses; and (iii) reimburse DoveBid for actual and reasonable travel and miscellaneous out-of-pocket expenses in the form of auction allowance. The auction allowance will not exceed $75,000, and will be deducted from the gross proceeds and paid to DoveBid following the auction. The Debtors and DoveBid acknowledge that a certain portion of the Debtors' assets are subject to a first priority security interest in favor of GECC, and agree that the minimum bid for the GECC assets will be $900,000, plus the buyer's premium. However, DoveBid may accept a selling price as low as $783,000 for the GECC Assets provided that DoveBid contribute that portion of DoveBid's share of the buyer's premium collected necessary to bring GECC's realization with respect to the GECC Assets to $900,000. In the event that DoveBid receives offers prior to the auction and the Debtors determine that a privately negotiated sale is more appropriate, DoveBid and the Debtors will submit the offers and recommendations for approval. If the Debtors consummate the sale of substantially all of the assets prior to the date of the auction, the Debtors may terminate the agreement provided the Debtors: (a) reimburse DoveBid for all actual and documented expenses incurred through the date of the termination not to exceed $75,000; and (b) pay DoveBid a termination fee in the amount of (i) $90,000 if the cancellation occurs more than two weeks prior to the date of the auction or (ii) $180,000 if the cancellation occurs within two weeks prior to the date of the auction. The Debtors agree to pay the expenses and termination fee within 10 business days following consummation of the sale including payment thereof and receipt of DoveBid's invoice. In the event that not all assets are purchased prior to the auction, an auction sale of the remaining assets is still commercially practicable in DoveBid's sole discretion. DoveBid will permit withdrawals provided the Debtors pay DoveBid a withdrawal fee, prior to the date of the auction, equal to 10% of the anticipated auction selling prices of the withdrawn assets. The Debtors believe that the employment of DoveBid is in the best interests of the Debtors and their estates. The firm can be reached at: Nicholas Jimenez DoveBid Inc. 200 Corporate Pointe, Suite 300 Culver City, CA 90230 Telephone: (1-310) 775-6700 Fax: (1-310) 775-6800 http://www.dovebid.com/ Headquartered in Butner, North Carolina, SAI Holdings Ltd. manufactures and retails vinyl-coated upholstery fabrics. The company filed for Chapter 11 protection on Nov. 8, 2006 (Bankr. N.D. Ohio Case No. 06-33227). Its debtor-affiliates, Athol Manufacturing Corp. (Bankr. Case No. 06-33228) and Sandusky, Ltd. (Bankr. Case No. 06-33229) filed for separate chapter 11 petitions on that same date. Ronald E. Gold, Esq. and Douglas L. Lutz, Esq., at Frost Brown Todd LLC represent the Debtors in their restructuring efforts. Jason W. Bank, Esq., in Bloomfield Hills, Michigan serves as counsel to the Official Committee of Unsecured Creditors. In their schedules, the Debtors listed total assets of $4,764,538 and total liabilities of $23,291,638. SAI HOLDINGS: Exclusive Period Extension Hearing Set on July 18 --------------------------------------------------------------- The Honorable Mary Ann Whipple of the United States Bankruptcy Court for the Northern District of Ohio will convene a hearing on July 18, 2007, at 1:30 p.m., at Courtroom #2 in Toledo, to consider SAI Holdings Limited and its debtor-affiliates' request to extend their exclusive period to: a. file a Chapter 11 plan until Aug. 6, 2007; and b. solicit acceptances of that plan to Oct. 8, 2007. As reported in the Troubled Company Reporter on June 11, 2007, the Debtors tell that it is currently negotiating with Sandusky Acquisition Holding LLC regarding the terms of the purchase agreement on the sale of substantially all of its assets. Headquartered in Butner, N.C., SAI Holdings Ltd. manufactures and retails vinyl-coated upholstery fabrics. The company filed for Chapter 11 protection on November 8, 2006 (Bankr. N.D. Ohio Case No. 06-33227). Its debtor-affiliates, Athol Manufacturing Corp. (Bankr. Case No. 06-33228) and Sandusky, Ltd. (Bankr. Case No. 06-33229) filed for separate chapter 11 petitions on that same date. Ronald E. Gold, Esq. and Douglas L. Lutz, Esq., at Frost Brown Todd LLC represent the Debtors in their restructuring efforts. Jason W. Bank, Esq., in Bloomfield Hills, Michigan serves as counsel to the Official Committee of Unsecured Creditors. In their schedules, the Debtors listed total assets of $4,764,538 and total liabilities of $23,291,638. SECURUS TECH: Stable Financial Leverage Cues S&P to Affirm Ratings ------------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'B+' corporate credit ratings on Securus Technologies Inc. The ratings outlook is negative. At the same time, S&P affirmed the 'BB-' rating on the existing $194 million second lien senior secured notes, (including the proposed $40 million add-on), and the '2' recovery rating, indicating expectation for a substantial (70%-90% ) recovery of principal. "The affirmation reflects financial leverage that has been stable, in the mid-5x area over the past two years, which we expect to remain in this range following the $51 million acquisition of Syscon," said Standard & Poor's credit analyst Stephanie Crane Mergenthaler. However, modest cash and the potential for constrained liquidity continue to be a risk to the rating. The ratings reflect Dallas-based Securus Technologies highly leveraged financial risk profile, modest liquidity, and a narrow focus within a competitive and evolving niche marketplace. A largely recurring revenue base, supported by long-term customer contracts, partly offsets these factors. Securus is one of the two leading independent providers of inmate telecommunications services to corrections facilities in the United States. The company provides services to correctional facilities operated by city, county, state, and federal authorities in the U.S. and Canada. Securus has been competing aggressively with several other independent providers in this narrow, approximately $1.4 billion market, for business traditionally held by the regional Bell operating companies, local exchange carriers, and inter-exchange carriers, most of whom exited the corrections services market in the past few years. SECURUS TECH: Moody's Affirms Corporate Family Rating at B3 ----------------------------------------------------------- Moody's Investors Service affirmed Securus Technologies Inc.'s B3 Corporate Family, B2 Second Priority Senior Secured and SGL-3 Liquidity Ratings. At the same time, Moody's assigned a B2 rating to the company's $40 million of Second Priority Senior Secured add-on Notes. The ratings reflect a B3 probability of default and loss-given-default assessment of LGD 3, 40% on the rated Notes. The outlook remains stable. The rating action follows Securus' announcement that it will issue $40 million of add-on Second Priority Senior Secured Notes to fund its acquisition of Syscon Holdings, Ltd., a provider of offender management software systems to the corrections industry. The affirmation of Securus' Corporate Family Rating reflects Moody's belief that the company has the capacity within its existing rating to withstand the modest increase in pro-forma leverage that will result from the acquisition. Additionally, the rating considers that Securus is likely to offset the continuing decline in its wholesale services revenues with market share gains of direct provisioning contracts following the exit of many larger incumbent providers from the inmate communication services business. The B3 Corporate Family Rating reflects the company's narrow focus within a highly competitive segment of the telecommunications industry, its modest size, low operating margins, significant leverage and lack of free cash flow. The rating also recognizes the company's good market share, contractual revenue streams and high renewal rates. Ratings Affirmed: -- Corporate Family Rating B3 -- Probability of Default Rating B3 -- Second Priority senior secured Notes B2, LGD 3, 40% Based in Dallas, TX, Securus Technologies, Inc. is one of the largest providers of inmate telecommunication services to correctional facilities in the United States and Canada. SIERRA PACIFIC: Fitch Affirms Ratings and Revises Outlook to Pos. ----------------------------------------------------------------- Fitch has affirmed the ratings of Sierra Pacific Resources and its utility subsidiaries, Nevada Power Company and Sierra Pacific Power Company, as: Sierra Pacific Resources -- Issuer Default Rating at 'BB-'. Nevada Power Company -- IDR at 'BB'. Sierra Pacific Power -- IDR at 'BB'. The long term Rating Outlook is revised to positive from stable. Approximately $4 billion in debt is affected. The financial trends of SRP and its two regulated utilities, NPC and SRPP, remain positive, and recent Public Utilities Commission of Nevada decisions have been constructive. The positive outlook reflects the more immediate favorable financial implications from PUCN's recent rate order which authorized NPC a 5.7% general rate increase based on a 10.7% return on equity. When combined with the previously approved recovery of costs associated with the western energy crisis, the tariff increase should moderately bolster near-term coverage measures. Over the intermediate term, the utilities will remain challenged by a large capital expenditures budget reflecting the rapid growth of its service area generally, and a program to increase company- owned generation facilities. In particular, the development of the Ely Energy Center will add 1,500MW of coal-fired generation and expand installed generation capacity by approximately 50%. Estimated development costs, approaching $4 billion may begin to pressure both the utilities and consolidated financial profile over the next few years as the first unit is not expected to be on-line until 2011. Regulatory support for the recovery of capital investments will remain a critical analytical consideration going forward. SRP's ratings reflect its structural subordination to the cash flows of NPC and SPPC. Financial flexibility is enhanced in Fitch's view by recent PUCN removal of previous dividend restrictions on NPC and SPPC. SRP will need continued market access to meet the financing burdens associated with its large capex budget over the next few years. In addition to financing directly at NPC and SPPC, SRP will need to raise equity. Fitch has affirmed these ratings and revised the Outlook to Positive: Sierra Pacific Resources -- Issuer Default Rating at 'BB-'; -- Senior unsecured debt at 'BB-'. Nevada Power Co. -- IDR'BB' -- General and refunding bonds at 'BBB-'; -- Secured bank facility at 'BBB-'; -- Senior unsecured at 'BB'. Sierra Pacific Power Co. -- IDR'BB' -- General and refunding bonds at 'BBB-'; -- Secured bank facility at 'BBB-'. SIERRA PACIFIC: S&P Affirms BB- Rating and Revises Outlook to Pos. ------------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB-' corporate credit ratings on Sierra Pacific Resources, Nevada Power Co., and Sierra Pacific Power Co. and revised the outlook on the companies to positive from stable. "The positive outlook reflects the significant strength of Nevada's regulatory climate," said Standard & Poor's credit analyst Anne Selting. "Based on recent developments, Nevada Power and Sierra Pacific Power currently have some of the most credit- supportive protections of any western state." Standard & Poor's also said that this support is a compensating factor for Sierra Pacific Resources' consolidated financial profile, which remains approximately in line with benchmark performance for the current ratings but is anticipated to deteriorate with the build out of several large generation projects. SOLERA HOLDINGS: Posts $9.6 Mil. Net Loss in Qtr. Ended March 31 ---------------------------------------------------------------- Solera Holdings Inc. reported a net loss of $9.6 million on revenues of $121.7 million for the three months ended March 31, 2007, compared to a net loss of $824,000 on revenues of $343,000 for the three months ended March 31, 2006. The company's balance sheet as of March 31, 2007, listed total assets of $1,261,611, total liabilities of $1,092,785, class B redeemable preferred units of $220,599 and minority interest of $9,854, resulting in a stockholders' deficit of $61,627. Net loss for the nine months ended March 31, 2007, was $9.6 million on revenues of $349.4 million. This compares to a net loss of $2.3 million on revenues of $976,000 for the nine months ended March 31, 2006. A full-text copy of the company's third quarter report is available for free at http://ResearchArchives.com/t/s?212e "Our third quarter results represent continued strong revenue performance and demonstrate our ability to meet the needs of our customers and drive revenue while controlling costs," said Tony Aquila, chairman and chief executive officer of Solera Holdings Inc. "Our momentum is fueled by growth in services to our existing customers, new insurance client acquisition and geographic expansion on a global basis." Other Matters Solera Holdings will not be issuing further guidance for fiscal year 2007 at this time, nor does the company anticipate it will issue any initial guidance for its fiscal year 2008 until the company announces its fiscal year 2007 results, expected to be during September 2007. The company will not be holding a conference call to discuss its third quarter 2007 results or other matters. Initial Public Offering On May 16, 2007, the company completed an initial public offering of shares of its common stock. In the initial public offering, the company sold 19,200,000 shares of common stock and the selling stockholders sold 10,987,500 shares of common stock, which included 3,937,500 shares of common stock sold by the selling stockholders pursuant to the underwriters' over-allotment option. In connection with the public offering, the company converted from a Delaware limited liability company into a Delaware corporation with 150,000,000 authorized shares of common stock, par value $0.01, and 15,000,000 authorized shares of preferred stock, par value $0.01. As a result, 31,633,211 common units were converted into 31,633,211 shares of common stock and 204,016.1 preferred units were converted into 13,889,974 shares of common stock. Restated Senior Credit Facility In connection with the initial public offering, the company engaged in refinancing transactions and entered into an amended and restated senior credit facility. Borrowings under the amended and restated senior credit facility consisted of: (i) a revolving credit facility that permits U.S. dollar or Euro- denominated borrowings of up to $50 million in revolving credit loans and letters of credit; (ii) a U.S. dollar denominated term loan in an aggregate amount of $230 million; and (iii) a Euro-denominated term loan in an aggregate amount of EUR280 million, or $380.7 million. The term loans will mature in May 2014 and the revolving loan will mature in May 2013. The amended and restated senior credit facility requires that the term loans be prepaid with the net proceeds from certain events, including specified asset and equity sales, insurance proceeds, incurrence of indebtedness and excess cash flow. The company received about $283 million in net proceeds from the initial public offering, after deducting underwriting discounts, commissions and expenses of about $24.2 million, and $607.6 million in net proceeds under the amended and restated senior credit facility, after debt issuance costs of about $3.8 million. About $889.2 million of the $890.6 million of combined net proceeds were used to repay: (i) $538.6 million under the first lien credit facility for all outstanding term loans and accrued interest; (ii) $226.2 million under the second lien credit facility for all borrowings and accrued interest, and a related prepayment premium of $4.5 million; and (iii) $124.4 million under the subordinated unsecured credit facility for all borrowings and accrued interest, and a related prepayment premium of $2.5 million. The company estimates that the total expenses of the offering were about $8 million, of which $3 million was paid prior to the closing date of the offering. In connection with the repayment of the above borrowings, the company expects to incur a pre-tax, non-cash charge of about $35.7 million on the early extinguishment of debt, which includes prepayment premiums of $7 million. The company expects to recognize this loss on extinguishment of debt in the fourth quarter of its fiscal year ending June 30, 2007. About Solera Holdings Solera Holdings Inc. (NYSE: SLH) -- http://www.solerainc.com/-- is a global provider of software and services to the automobile insurance claims processing industry. Solera has operations in 45 countries across 5 continents. The Solera companies include Audatex Holdings in the United States, Canada, and in more than 40 additional countries, Informex in Belgium, Sidexa in France, ABZ in The Netherlands, Hollander serving the North American recycling market, and IMS providing medical review services. * * * As reported in the Troubled Company Reporter on May 22, 2007, Standard & Poor's Ratings Services affirmed its 'B+' corporate credit and senior secured debt ratings on Solera Holdings. At the same time, Standard & Poor's revised its outlook on Solera to positive from negative, following the recent completion of an initial public offering. Pro forma for the initial public offering, Solera's operating lease-adjusted leverage has declined to below 5x from above 6.5x as of December 2006. SUPRESTA LLC: Israel Chemicals Deal Cues Moody's Ratings Review --------------------------------------------------------------- Moody's Investors Service placed the ratings of Supresta LLC (B1 corporate family rating) under review for a possible upgrade following the announcement that Israel Chemicals Ltd. has agreed to buy the firm from its existing private equity owners, Ripplewood Holdings LLC, for $352 million in cash in a transaction that is expected to close in the third quarter of 2007. The ratings under review are: Supresta LLC -- Corporate family rating -- B1 -- Probability of default rating -- B1 -- $140mm Gtd Sr Sec Term Loan due 2011, Ba3, LGD3, 35% -- $25mm Gtd Sr Sec Revolving Credit Facility due 2009, Ba3, LGD3, 35% ICL has indicated that the transaction will be financed by its internal resources and existing bank facilities and the closing is subject to a number of conditions, including regulatory approval. The review for upgrade reflects the expected operating benefits associated with inclusion of the company in the ICL group and the likelihood that Supresta's leverage will decline as its existing bank debt will likely be retired. The ratings will be withdrawn if the debt is refinanced. However, the company has not stated definitively how the rated term loan and revolving credit facility or unrated debt at the holding company level will be treated. Supresta is a global producer of phosphorus-based flame retardants used in foams, plastics and industrial/hydraulic fluids. The company also sells phosphorus-based organic and inorganic chemicals used in fine chemicals and paint additives. Supresta LLC, is headquartered in Ardsley, New York. Revenues were approximately $249 million for the LTM ended December 31, 2006. SYNIVERSE TECHNOLOGIES: To Raise $489 Million of Credit Facilities ------------------------------------------------------------------ Syniverse Technologies Inc. said it will raise $489 million of senior secured credit facilities. The credit facilities are expected to consist of: i. a $42 million revolver; ii. a $20 million Euro-denominated revolver; iii. a $297 million term loan; and iv. a $130 million Euro-denominated term loan. Net proceeds from the credit facilities will be used to fund the $290 million proposed acquisition of Billing Services Group Limited's Wireless Division and refinance Syniverse's existing senior secured credit facilities. Lehman Brothers Inc. and Deutsche Bank will act as Joint Lead Arrangers and Joint Bookrunners for the syndication. About Billing Services Billing Services Group Limited is a global provider of data clearing, financial settlement and risk management solutions for wireless and wireline communication service providers, operating in two primary segments: wireline and wireless. BSG Wireless is a provider of data clearing and financial settlement services related to global and national roaming for GSM wireless telecommunications providers. Shareholder approval for the acquisition of Billing Services by Syniverse Technologies was obtained on April 23, 2007. About Syniverse Syniverse Technologies Inc. in Tampa, Florida (NYSE: SVR) - http://www.syniverse.com/-- provides technology services for wireless telecommunications companies. Its integrated suite of services include technology interoperability services, which enable the invoicing and settlement of domestic and international wireless roaming telephone calls and wireless data events; SMS and MMS routing and translation services between carriers; and interactive video and mobile broadband solutions, prepaid applications, and roaming services. Celebrating its 20th anniversary in 2007, Syniverse has offices in major cities around the globe. Syniverse is ISO 9001:2000 certified and TL 9000 approved, adhering to the principles of customer focus and quality improvement practices. SYNIVERSE TECH: Moody's Rates $489 Million Debt Facilities at Ba2 ----------------------------------------------------------------- Moody's Investors Service assigned Ba2 ratings to Syniverse's proposed $489 million senior secured debt facilities and lowered ratings on their existing $175 million subordinated debt. The proposed senior secured facilities will be used to refinance existing secured debt and to finance the acquisition of Billing Services Group's wireless data and financial clearing and settlement businesses. As outlined in our April 3, 2007 press release discussing the acquisition, the Ba3 corporate family rating is not affected. The announcement serves only to finalize the ratings on the individual debt instruments. The outlook remains negative. The increase in total senior secured debt has led to the lowering of the subordinated debt ratings to B2 from B1 and higher loss given default point estimate (to 88% from 80%). The debt instrument ratings were determined using Moody's Loss Given Default Methodology. Upon closing of the proposed facilities, these ratings will be affected: -- $175 million senior subordinated notes due 2013 to B2, LGD5 (88%) from B1, LGD5 (80%); These ratings will be assigned: -- $20 million senior secured euro-denominated revolver due 2013, Ba2, LGD3 (35%), -- $42 million senior secured revolver due 2013, Ba2, LGD3 (35%), -- $297 million senior secured term loan due 2014, Ba2 LGD3 (35%), -- $130 million senior secured euro-denominated term loan due 2014, Ba2, LGD3 (35%); These ratings will be withdrawn: -- $42 million senior secured revolver due 2011, Ba1, LGD2 (24%), -- $136 million senior secured term loan due 2012, Ba1, LGD2 (24%); These ratings will not be affected: -- Corporate Family Rating, Ba3, -- Probability of Default, Ba3 Based in Tampa, Florida, Syniverse Technologies is a provider of technology outsourcing to wireless telecommunications carriers with 2006 revenues of $337 million. TRIAD HOSPITALS: Extends Senior Notes Pricing Date Until July 16 ---------------------------------------------------------------- Triad Hospitals Inc. is extending the price determination and expiration dates of its two senior notes from 10:00 a.m., New York City time, on June 25, 2007, to 10:00 a.m., New York City time, on July 16, 2007. The company is also extending the expiration date of its offering from 12:00 midnight, New York City time, on July 10, 2007, to 12:00 midnight, New York City time, on July 30, 2007. The senior notes affected by the extensions are the company's $600,000,000 aggregate principal amount of 7% senior notes due 2012 and $600,000,000 aggregate principal amount of 7% senior subordinated notes due 2013. Holders who have previously tendered Notes do not need to re- tender their Notes or take any other action in response to these extensions. As of 7:00 a.m., New York City time, on June 25, 2007, the company has received tenders and consents from: (i) holders of about $599.3 million in aggregate principal amount of the senior notes, representing about 99.9% of the total outstanding principal amount of the senior notes; and (ii) holders of about $598.3 million in aggregate principal amount of the senior subordinated notes, representing about 99.7% of the total outstanding principal amount of the senior subordinated notes. Notes previously tendered may not be validly withdrawn, except under very limited circumstances. Except for the extension of the price determination and expiration dates, the offer and the tender offer documents remain in full force and effect and the price determination date for the offer will be at least 10 business days prior to the expiration date. The company's obligation to accept for purchase, and to pay for, Notes validly tendered and not withdrawn pursuant to the Offer is subject to the satisfaction or waiver of certain conditions, including: -- the satisfaction of all conditions to the consummation of the merger under the previously announced merger agreement among the company, Community Health Systems Inc. and a wholly-owned subsidiary of CHS and consummation of the merger; -- CHS or an affiliate of CHS having issued up to $3.36 billion of debt; -- the company having sufficient available funds to pay the total consideration with respect to all notes and the receipt of sufficient consents with respect to the proposed amendments to the indentures and the notes. The company reserves the right to terminate, withdraw or amend the offer at any time subject to applicable law. Credit Suisse Securities (USA) LLC and Wachovia Securities have been retained to act as Dealer Managers in connection with the tender offer and consent solicitation. Questions about the tender offer and consent solicitation may be directed to Credit Suisse at (212) 325-7596 (collect) or Wachovia Securities at (866) 309-6316 (toll free) or (704) 715-8341 (collect). Copies of the tender offer documents and other related documents may be obtained from D.F. King & Co., Inc., the information agent for the tender offer and consent solicitation, at (800) 769-7666 (toll free) or (212) 269-5550 (collect). The tender offer and consent solicitation is being made solely by means of the tender offer documents. Under no circumstances will this press release constitute an offer to purchase or the solicitation of an offer to sell the notes or any other securities of the company or any other person, This press release also is not a solicitation of consents to the proposed amendments to the indenture and the notes. No recommendation is made as to whether holders of the notes should tender their notes or give their consent. About Triad Hospitals Triad Hospitals Inc. (NYSE: TRI) -- http://www.triadhospitals.com/ -- through its affiliates, owns and manages hospitals and ambulatory surgery centers primarily in the southern, midwestern, and western United States. The company currently operates 54 hospitals and 13 ambulatory surgery centers in 17 states and Ireland with about 9,855 licensed beds. In addition, through its QHR subsidiary, the company provides management and consulting services to independent general acute care hospitals located throughout the United States. * * * As reported in the Troubled Company Reporter on March 22, 2007, Standard & Poor's reported that its B+ corporate credit rating on Triad Hospitals Inc. remains on CreditWatch with negative implications, where it was originally placed on Feb. 5, 2007. TRITON CBO: Moody's Lifts Rating on Class A-3 Floating Rate Notes ----------------------------------------------------------------- Moody's Investors Service upgraded its rating on one class of notes issued by Triton CBO III, Ltd.: The $45,000,000 Class A-3 Floating Rate Senior Secured Notes Due 2011 Prior Rating: B2 (on watch for possible upgrade) Current Rating: Aa2 According to Moody's, the trustee, in a notice dated March 22, 2007, informed the holders of the notes that an event of default had occurred, and declared the notes immediately due and payable in accordance with the Indenture at the direction of the holders of the controlling class. It is expected that this acceleration will cause more cashflows to be diverted to amortize the Class A notes faster than under a non-acceleration event. TWEETER HOME: Discloses Two Stalking Horse Bids for Assets ---------------------------------------------------------- Tweeter Home Entertainment Group, Inc., disclosed yesterday two "stalking horse" bids for its assets in connection with the company's Chapter 11 reorganization efforts. Schultze Asset Management, LLC has made a $38 million "going concern" bid for substantially all of the Company's assets. Schultze would also assume $8 million of Tweeter's "cure costs" associated with the company's bankruptcy proceeding, as well as provide the national specialty consumer electronics retailer with a $10 million junior debtor-in-possession line of credit. Tweeter intends to use the $10 million in new funding to purchase merchandise and for other general corporate purposes. Schultze's bid includes the purchase of Tweeter's 18.75% interest in Tivoli Audio, LLC Separately, Whippoorwill Associates, Inc. and Bay Harbour Management, L.C. have teamed up to make a $10 million bid for just Tweeter's Tivoli ownership interest. The U.S. Bankruptcy Court for the District of Delaware yesterday approved Schultze's, Whippoorwill's and Bay Harbour's respective "stalking horse" bids under a process where other qualified bidders will have the opportunity to submit "higher or otherwise better" offers. An auction will commence on July 10, 2007 among Schultze, Whippoorwill, Bay Harbour and any other qualified bidder. "We are pleased to complete these important steps in our restructuring process as we move forward," said Tweeter President and CEO Joe McGuire. "Our objective is to bring cash into the Company as quickly and responsibly as possible and today's events move us closer to that goal." About Schultze Asset Management Founded in 1998, Schultze Asset Management, LLC -- http://www.samco.net/-- is a leading alternative investments firm specializing in distressed and special situations investing. The firm manages approximately $725 million in assets on behalf of institutional and high net worth clients located throughout the world. Schultze's offices are in Purchase, NY. About Whippoorwill Associates and Bay Harbour Whippoorwill Associates, Inc. and Bay Harbour Management L.C. are investment managers specializing in distressed securities and special situations. 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. VELO ACQUISITION: Moody's Puts Corporate Family Rating at B2 ------------------------------------------------------------ Moody's Investors Service assigned a B2 Corporate Family Rating to Velo Acquisition, Inc., the acquisition vehicle that will be used to complete the leverage buyout of Vertrue Incorporated. Concurrently, Moody's also assigned a Ba3 rating to the company's proposed senior secured first lien credit facilities and a Caa1 rating to the proposed second lien term loan. The outlook for the ratings is stable. Proceeds from the proposed credit facilities will be used to complete the acquisition of Vertrue by One Equity Partners, Oak Investment Partners, Rho Ventures, and several members of Vertrue's existing management, for a total consideration of $800 million including approximately $148 million of existing debt. It is Moody's understanding that at the close of the transaction, Velo Acquisition, Inc. will merge into Vertrue Incorporated, which will be the surviving entity. Moody's continued the review for possible downgrade of Vertrue Incorporated's existing ratings with the expectation that they will be withdrawn at the close of the transaction. The B2 Corporate Family Rating assigned to Velo Acquisition, Inc., considers the company's highly pro forma leveraged position, highly acquisitive nature and marketing costs associated with the attainment of new members. Pro forma for the leveraged buyout of Vertrue, adjusted debt to EBITDA was above 6 times for the last twelve months ended March 31, 2007. Sidney Matti, Analyst, stated that, "Vertrue's heightened leverage position will hinder its financial flexibility over the intermediate term." The company's switch to monthly programs from annual programs does generate higher recurring revenue per member and greater profitability, however higher total acquisition costs per member as well as churn of the customer base partially offset some of the benefit. Over the past few years, Vertrue has engaged in several acquisitions within the Internet marketing space in order to enhance its online presence. The Corporate Family Rating acknowledges Vertrue's stable free cash flow and its leading position in Internet marketing. Although free cash flow has been stable over the past few quarters, Moody's expects free cash flow to adjusted debt to remain stable over the intermediate term even with the increased debt position and higher interest expense costs. As part of its strategic focus, the company's internet presence has grown from approximately 14% of fiscal year 2004 revenue to approximately 40% of fiscal year 2006 revenues. Matti noted that, "It is Moody's expectation that a majority of the revenues of the company will come from the Internet over the near term driven by organic growth and further acquisitions." The stable outlook reflects Moody's expectations for continued growth in operating performance over the intermediate term. The outlook also considers Moody's expectations that the company will continue to pursue acquisitions within the restrictions of the proposed credit facilities. Ratings are subject to review of final documentation and shareholder approval. These Velo Acquisition, Inc. ratings were assigned: -- B2 Corporate Family Rating; -- B2 Probability of Default rating; -- Ba3 (LGD3/31%) rating on a $30 million senior secured revolver due 2013; -- Ba3 (LGD3/31%) rating on a $430 million senior secured term loan due 2014; and -- Caa1 (LGD5/82%) rating on a $200 million second lien term loan due 2015. These Vertrue Incorporated ratings remain on review for possible downgrade and will be withdrawn at the close of the transaction: -- B1 Corporate Family Rating; -- B1 Probability of Default rating; and -- Ba3 rating on $148 million senior unsecured notes due 2014 (LGD3/42%); Headquartered in Norwalk, Connecticut, Vertrue Incorporated is a leading Internet marketing services company. For the twelve months ended March 31, 2007, the company reported revenues of approximately $728 million. VERTRUE INC: Moody's Retains Review on Low-B Ratings ---------------------------------------------------- Moody's Investors Service assigned a B2 Corporate Family Rating to Velo Acquisition, Inc., the acquisition vehicle that will be used to complete the leverage buyout of Vertrue Incorporated. Concurrently, Moody's also assigned a Ba3 rating to the company's proposed senior secured first lien credit facilities and a Caa1 rating to the proposed second lien term loan. The outlook for the ratings is stable. Proceeds from the proposed credit facilities will be used to complete the acquisition of Vertrue by One Equity Partners, Oak Investment Partners, Rho Ventures, and several members of Vertrue's existing management, for a total consideration of $800 million including approximately $148 million of existing debt. It is Moody's understanding that at the close of the transaction, Velo Acquisition, Inc. will merge into Vertrue Incorporated, which will be the surviving entity. Moody's continued the review for possible downgrade of Vertrue Incorporated's existing ratings with the expectation that they will be withdrawn at the close of the transaction. The B2 Corporate Family Rating assigned to Velo Acquisition, Inc., considers the company's highly pro forma leveraged position, highly acquisitive nature and marketing costs associated with the attainment of new members. Pro forma for the leveraged buyout of Vertrue, adjusted debt to EBITDA was above 6 times for the last twelve months ended March 31, 2007. Sidney Matti, Analyst, stated that, "Vertrue's heightened leverage position will hinder its financial flexibility over the intermediate term." The company's switch to monthly programs from annual programs does generate higher recurring revenue per member and greater profitability, however higher total acquisition costs per member as well as churn of the customer base partially offset some of the benefit. Over the past few years, Vertrue has engaged in several acquisitions within the Internet marketing space in order to enhance its online presence. The Corporate Family Rating acknowledges Vertrue's stable free cash flow and its leading position in Internet marketing. Although free cash flow has been stable over the past few quarters, Moody's expects free cash flow to adjusted debt to remain stable over the intermediate term even with the increased debt position and higher interest expense costs. As part of its strategic focus, the company's internet presence has grown from approximately 14% of fiscal year 2004 revenue to approximately 40% of fiscal year 2006 revenues. Matti noted that, "It is Moody's expectation that a majority of the revenues of the company will come from the Internet over the near term driven by organic growth and further acquisitions." The stable outlook reflects Moody's expectations for continued growth in operating performance over the intermediate term. The outlook also considers Moody's expectations that the company will continue to pursue acquisitions within the restrictions of the proposed credit facilities. Ratings are subject to review of final documentation and shareholder approval. These Velo Acquisition, Inc. ratings were assigned: -- B2 Corporate Family Rating; -- B2 Probability of Default rating; -- Ba3 (LGD3/31%) rating on a $30 million senior secured revolver due 2013; -- Ba3 (LGD3/31%) rating on a $430 million senior secured term loan due 2014; and -- Caa1 (LGD5/82%) rating on a $200 million second lien term loan due 2015. These Vertrue Incorporated ratings remain on review for possible downgrade and will be withdrawn at the close of the transaction: -- B1 Corporate Family Rating; -- B1 Probability of Default rating; and -- Ba3 rating on $148 million senior unsecured notes due 2014 (LGD3/42%); Headquartered in Norwalk, Connecticut, Vertrue Incorporated is a leading Internet marketing services company. For the twelve months ended March 31, 2007, the company reported revenues of approximately $728 million. VIRAGEN INC: Halts Development of Avian Transgenic Technology ------------------------------------------------------------- Viragen Inc. halted its development of the OVA(TM) System, its avian transgenic technology being developed for the manufacture of therapeutic proteins. In halting all further development of the OVA(TM) System, Viragen notified Roslin Institute and Oxford Biomedica plc of its intent to terminate its research and license agreements, respectively. "We have been forced to make a very difficult decision at this time to halt our avian transgenics project. While we have accomplished some truly excellent science, including more 'firsts' than any other group in this field, the distance between research and commercialization is simply too great, and our resources are better focused on advancing our anti-cancer therapeutics," commented Viragen's President and CEO, Charles A. Rice. "We would like to thank the staffs at Roslin Institute and Oxford BioMedica for their work and dedication to this project. We will continue to maintain Viragen's intellectual property portfolio associated with the OVA(TM) System in the event that any interested party may want to consider licensing," added Mr. Rice. In light of the cessation of activities relating to avian transgenics, Viragen intends to focus its resources on the marketing and regulatory activities related to Multiferon(R) and pre-clinical studies planned for two of Viragen's anti- cancer product candidates: VG102, a monoclonal antibody that has the potential to target nearly all solid tumors; and VG106, an in-house developed cytokine that has been shown, in preliminary studies, to prevent proliferation of several difficult-to-treat cancers. Based in Plantation, Florida, Viragen Inc. (AMEX: VRA) (OTC BB: VGNI) -- http://www.viragen.com/-- is a bio-pharmaceutical company engaged in the research, development, manufacture and commercialization of products for the treatment of cancers and viral diseases. The company operates from three locations: Plantation, Florida, which contains the company's administrative offices and support; Viragen (Scotland) Ltd., located outside Edinburgh, Scotland, which conducts the company's research and development activities; and ViraNative, located in Umea, Sweden, which houses the company's human alpha interferon manufacturing facilities. As of June 30, 2006, the company owned approximately 81.2% of Viragen International, Inc. Subsequent to June 30, 2006, its ownership interest of Viragen International was reduced to approximately 77.0%. Viragen International owns 100% of ViraNative AB, its Swedish subsidiary, and 100% of Viragen (Scotland) Ltd., its Scottish research center. Going Concern Doubt Ernst & Young LLP, in Fort Lauderdale, Fla., raised substantial doubt about Viragen, Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended June 30, 2006, and 2005. The auditing firm pointed to the company's recurring operating losses, accumulated and stockholders' deficiencies, and dependence on its ability to raise adequate capital to fund necessary product commercialization and development activities. WASHINGTON MUTUAL: Fitch Puts B Rating Negative Watch ----------------------------------------------------- Fitch Ratings has taken these rating actions on Washington Mutual's Alt-A series 2006-3 residential mortgage pass-through certificates: -- Class A affirmed at 'AAA'; -- Class B-1 affirmed at 'AA'; -- Class B-2 affirmed at 'A'; -- Class B-3 affirmed at 'BBB'; -- Class B-4 affirmed at 'BB'; -- Class B-5, rated 'B', and placed on Rating Watch Negative. The affirmations, affecting approximately $436 million of the outstanding certificates, reflect a stable relationship between credit enhancement and expected loss. In addition, the rating watch negative status affects approximately $3 million of the outstanding certificates. Series 2006-3, class B-5 is placed on rating watch negative because of current trends in the relationship between serious delinquency and CE. The 90+ DQ is 2.1% of the current collateral balance, while the current CE for the B-5 bond is 0.46%. To date, the transaction has experienced losses of approximately $128,000 or 0.02% of the original collateral balance. The collateral of the above transaction primarily consists of 15-year and 30-year fixed-rate mortgage loans extended to Alt-A borrowers and secured by first liens on single-family residential properties. The loans were originated by various originators and are serviced by Washington Mutual Bank, which is currently rated 'RPS2+' by Fitch. WASHINGTON MUTUAL: Fitch Affirms BB Rating on Class M-11 Certs. --------------------------------------------------------------- Fitch Ratings has affirmed these Washington Mutual asset-backed securities: Series 2006-HE1: -- Classes I-A, II-A-1 through II-A-4 at 'AAA'; -- Class M-1 at 'AA+'; -- Class M-2 at 'AA+'; -- Class M-3 at 'AA'; -- Class M-4 at 'AA-'; -- Class M-5 at 'A'+; -- Class M-6 at 'A'; -- Class M-7 at 'A-'; -- Class M-8 at 'BBB+'; -- Class M-9 at 'BBB'; -- Class M-10 at 'BB+'; -- Class M-11 at 'BB'. The affirmations, affecting approximately $279 million of the outstanding certificates, reflect a stable relationship between credit enhancement and expected loss. The cumulative loss as a percentage of the original collateral balance is 0.21% and the 60+ delinquency as a percentage of the current collateral balance is 10.2%. In addition, the overcollateralization has remained at its target since issuance. The collateral of the above transaction primarily consists of 15- year and 30-year, fixed-rate and adjustable-rate, subprime mortgage loans secured by first and second liens on one- to four- family residential properties. The loans were originated by various originators and are serviced by Washington Mutual Bank, which is rated 'RPS2+' by Fitch. As of the June 2007 remittance date, the above transaction has a pool factor of 74% and is seasoned 14 months. WEBB MTN: Voluntary Chapter 11 Case Summary ------------------------------------------- Debtor: Webb Mtn., L.L.C. N19 W24130 Riverwood Drive, Suite 100 Waukesha, WI 53188 Bankruptcy Case No.: 07-32016 Chapter 11 Petition Date: June 25, 2007 Court: Eastern District of Tennessee (Knoxville) Debtor's Counsel: Maurice K. Guinn, Esq. Gentry, Tipton & McLemore, P.C. P.O. Box 1990 Knoxville, TN 37901 Tel: (865) 525-5300 Fax: (865) 523-7315 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor does not have any creditors who are not insiders. WELLCARE HEALTH: Moody's Places Ba3 Debt Rating under Review ------------------------------------------------------------ Moody's Investors Service placed the Ba3 senior secured debt rating of WellCare Health Plans, Inc. and the Ba1 insurance financial strength rating of WellCare of Florida, Inc. - WellCare's primary operating subsidiary - under review for possible upgrade. Moody's stated that the review will focus on the company's emerging earnings and membership results for the current year in each of its markets, the company's capital position, financial leverage, and earnings coverage, as well as its relationship with the individual states with whom it holds Medicaid contracts and with CMS. These ratings were placed on review for possible upgrade: -- WellCare Health Plans, Inc. -- senior secured debt rating of Ba3; -- WellCare of Florida, Inc. -- insurance financial strength rating of Ba1. Moody's last rating action on WellCare was on November 28, 2006 when the outlook was changed to positive from stable. WellCare Health Plans, Inc. is headquartered in Tampa, Florida. For the first three months of 2007, the company reported approximately $1.2 billion in total revenue. As of March 31, 2006 shareholder's equity was $604 million and total medical membership was 1.3 million members. WESTERN OIL: Closes New $805 Million Revolving Credit Facility -------------------------------------------------------------- Western Oil Sands Inc. reported the closing of a new $805 million five-year revolving bank credit facility. The Credit Facility was arranged by RBC Capital Markets with a syndicate of leading financial institutions and replaces Western's existing $340 million revolving credit facility. Standard & Poor's and Moody's Investor Services have rated this Credit Facility BBB and Ba2, respectively. Coincident with placing this Credit Facility, the credit rating assigned by Moody's on Western's $450 million Notes was increased to Ba2. S&P had previously increased the rating on the Notes to BBB. Western is pleased with the recent rating assignments on its external debt made possible by the improved credit profile of the company over the last several years. This Credit Facility will be used to finance Western's share of the capital requirements associated with Expansion 1 of the Athabasca Oil Sands Project and for general corporate purposes. Expansion 1 is a fully integrated expansion of the existing AOSP facilities which will add 100,000 barrels per day (20,000 barrels per day net to Western) of production anticipated to commence in late 2010. Capital costs associated with Expansion 1 are budgeted at $11.2 billion ($2.2 billion net to Western) and construction is proceeding on schedule and on budget. Western Oil Sands Inc. (TORONTO: WTO.TO) (Other OTC: WTOIF.PK) -- http://www.westernoilsands.com/-- holds a 20% undivided interest in the Athabasca Oil Sands Project located in the Athabasca region of northeastern Alberta. Shell Canada Limited and Chevron Canada Limited hold the remaining 60 per cent and 20 per cent interests, respectively.. WesternZagros Limited, a wholly-owned subsidiary of Western, is pursuing conventional oil and gas exploration opportunities in the Federal Region of Kurdistan in Northern Iraq. * * * As reported in the Troubled Company Reporter on June 19, 2007, Moody's assigned a Ba2 rating (LGD3; 32%) to Western Oil Sands Inc.'s pending 5-year CDN$805 million senior secured bank revolver, which remains under negotiation. It would replace an unrated C$340 million first secured bank revolver. Moody's affirmed Western's stable outlook and Ba2 Corporate Family Rating. WINSTAR COMMS: U.S. Trustee Objects to Credit Suisse Settlement --------------------------------------------------------------- Kelly Beaudin Stapleton, the U.S. Trustee for Region 2, asks the Court to deny approval of Herrick Feinstein LLP and Impala Partners, LLC's agreement with Credit Suisse Securities (USA) LLC. Herrick Feinstein and Impala Partners had asked the U.S. Bankruptcy Court for the District of Delaware to approve their settlement agreement with Credit Suisse Loan Funding LLC to hedge a portion of the unpaid contingency fees at no cost to Winstar Communications Inc. and its debtor-affiliates, and Christine C. Shubert, the Chapter 7 Trustee for the Debtors' estates. U.S. Trustee Objects Herrick and Impala seek authority to sell a share of their anticipated contingency fees to Credit Suisse in what the Motion describes as a "hedging transaction." Herrick serves as special litigation counsel to Ms. Shubert in the bankruptcy estate's pending adversary proceeding against Lucent Technologies, Inc. Herrick employed Impala Partners as its special litigation consultant. On behalf of the U.S. Trustee, Trial Attorney Mark S. Kenney, Esq., states that the Bankruptcy Code prohibits all sharing of compensation except under the limited circumstances described in Section 504 of the Bankruptcy Code, which do not apply to the case. The U.S. Trustee argues that despite the Section's unambiguous decree, Herrick and Impala's proposal to sell a share of their fees amounts to treating their interest as a "matter of traffic," which is highly discouraged by the Bankruptcy Code. Herrick and Impala admitted as much in stating that the Proposal is "simply a risk mitigating hedge involving trade claims," Mr. Kenney says. Yet Herrick and Impala are fiduciaries and officers of the Court, not mere trade claimants, Mr. Kenney points out. Herrick and Impala argued that: -- the Proposal will not increase administrative costs because their compensation is a percentage of the Trustee's ultimate recovery against Lucent, -- the Proposal will not affect their independent judgment in the Lucent Litigation because they are already motivated to maximize the Trustee's recovery and, in turn, their contingency fees, and -- to ensure their continued independence, Credit Suisse would be contractually barred from objecting to dispositions of the Lucent Litigation. Herrick and Impala's argument that the cost to the estate will not increase was recently rejected in In re Hepner, 2007 WL 161003 (Bankr. S.D. Tex. Jan. 16, 2007), Mr. Kenney tells Judge Carey. Mr. Kenney notes that in Hepner, the trustee sought to engage personal injury counsel who would pay a referral fee to another attorney. No estate funds would be used to pay the referral fee, because it would be deducted from the fees payable to the personal injury attorneys. The Hepner court rejected the "no economic harm" argument, holding that the purpose of Section 504(a) is to ensure that professionals preserve the integrity of the bankruptcy process and not treat bankruptcy matters as matters of traffic. The court noted that Section 504(a) is unambiguous, even if out of step with the modern practice of class action tort law. Herrick and Impala said they have not found any cases in any jurisdiction which prohibit arrangements similar to the proposed transaction with Credit Suisse. However, the absence of case law prohibiting a similar transaction does not imply that the transaction must be permissible, according to Mr. Kenney. Rather, Section 504 is so clear and unambiguous, and its purpose so unmistakable, that until the Motion no bankruptcy professional has sought judicial approval of the transaction. Herrick and Impala had asserted that administrative claims, like other bankruptcy claims, are assignable and are commonly traded in bankruptcy cases. Mr. Kenney, however, contends that: (1) The proposed transaction is not an outright assignment of Herrick's and Impala's claim for professional fees. The estate will pay Herrick and Impala on account of their fee claim, and they will retain an interest in their professional fees to the extent those fees exceed $10,000,000. The proposed transaction is simply an agreement to sell a share of their fees in exchange for a guaranteed minimum payment. (2) Although Bankruptcy Rules provide a mechanism for recognizing the transfer of claims, it does not in and of itself authorize claim transfers. Herrick and Impala must look elsewhere for authority. (3) Regardless of any other law generally authorizing the transfer of claims, the plain language of Section 504 expressly prohibits the sharing of compensation or reimbursement, except under the circumstances described in Sections 504, which does not apply in the case. Mr. Kenney also notes that Herrick and Impala have not yet even filed applications for allowance of their contingency fees pursuant to Section 330, and will be unable to do so until after final disposition or settlement of the Lucent Litigation. Herrick and Impala Respond Herrick and Impala point out that the U.S. Trustee's sole basis for her objection is the conclusion that the Proposal constitutes fee sharing prohibited by Section 504 and is not a hedging transaction. The U.S. Trustee erroneously concludes that merely because the Proposal could result in the assignment of a portion of Herrick's and Impala's allowed claim for compensation, Section 504 is implicated. The Objection ignores the legislative intent of Section 504, omits the reasoning behind the provision, and fails to address the critical facts that Credit Suisse is required to pay Herrick and Impala even if no compensation is awarded and there is no fee to "share". Section 504, Herrick and Impala contend, is inapplicable to the Proposal because the transaction only takes effect upon allowance -- or transfer, in the event no administrative claim is awarded to Herrick or Impala -- of an assignable claim. Herrick and Impala contend that the Proposal has nothing in common with the transactions that the Bankruptcy Code prohibits; rather, it serves important policy goals of attracting and supporting law firms that undertake complex and expensive litigation. It affords them the ability to obtain protection normally available in the marketplace via insurance or hedges in comparable economic situations. About Winstar Communications Based in New York, New York, Winstar Communications, Inc., provides broadband services to business customers. The company and its debtor-affiliates filed for chapter 11 protection on April 18, 2001 (Bankr. D. Del. Case Nos. 01-01430 through 01-01462). The Debtors obtained the court's approval converting their case to a chapter 7 liquidation proceeding in January 2002. Christine C. Shubert serves as the Debtors' chapter 7 trustee. When the Debtors filed for bankruptcy, they listed $4,975,437,068 in total assets and $4,994,467,530 in total debts. (Winstar Bankruptcy News, Issue No. 80; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) The Debtor's bankruptcy case has been converted to a Chapter 7 liquidation proceeding. WINSTAR COMMS: Court Okays Citicorp Industrial Settlement Pact -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware approved a settlement Christine C. Shubert, the Chapter 7 Trustee for the estates of Winstar Communications, Inc., entered into with Citicorp Industrial Credit, Inc. The Chapter 7 Trustee had filed an avoidance action against Citicorp to recover preferential payments totaling $250,000 that the Debtors made within the 90-day period prior the Petition Date. Through evidence of valid defenses, Citicorp sought to reduce the amount. The Trustee agreed to a $5,000 settlement of all claims, and the parties agreed to exchange mutual releases. Sheldon K. Rennie, Esq., at Fox Rothschild LLP, in Wilmington, Delaware, relates that the Chapter 7 Trustee is permitted to settle avoidable preference recovery controversies without the Court's approval, pursuant to a Court Order in November 2002. However, the avoidance action against Citicorp falls outside the Order, requiring Court approval. The Chapter 7 Trustee believes that the Settlement Agreement is in the best interests of the estate and the creditors, especially in light of the cost, uncertainty and delay of litigation. About Winstar Communications Based in New York, New York, Winstar Communications, Inc., provides broadband services to business customers. The company and its debtor-affiliates filed for chapter 11 protection on April 18, 2001 (Bankr. D. Del. Case Nos. 01-01430 through 01-01462). The Debtors obtained the court's approval converting their case to a chapter 7 liquidation proceeding in January 2002. Christine C. Shubert serves as the Debtors' chapter 7 trustee. When the Debtors filed for bankruptcy, they listed $4,975,437,068 in total assets and $4,994,467,530 in total debts. (Winstar Bankruptcy News, Issue No. 80; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) The Debtor's bankruptcy case has been converted to a Chapter 7 liquidation proceeding. YUKOS OIL: PwC Criticized for Withdrawing Financial Audits ---------------------------------------------------------- PriceWaterhouseCoopers LLP got slammed by former management of Yukos Oil Corp. for pulling out from its audits on the Russian oil company, The Moscow Times reports. As reported in the Troubled Company Reporter on June 25, 2007, PwC disclosed that its financial reports for Yukos for the period 1994-2004 could no longer be relied upon, citing that it might have received in inaccurate financial information from former management. The Moscow Times relates that Yukos' former managers see PwC's move as bowing to pressure from Kremlin. The Moscow Times adds, citing a telephone interview with Tim Osborne, director of Yukos' main shareholder GML, that the auditing firm had cited new information on the withdrawal of their audit opinion but didn't disclose what that information was, In an e-mail message however, a PwC spokeswoman denied allegations of state pressure and said that "[t]he only pressure we are experiencing is the pressure of professional audit standards," the Moscow Times reports. 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. YUKOS OIL: Rosneft Wants to Buy Assets from Unitex and Prana ------------------------------------------------------------ OAO Rosneft Oil is holding talks to gain assets of OAO Yukos Oil Co. acquired by OOO Unitex and the Prana Group, The Moscow Times reports citing Rosneft CEO Sergei Bogdanchikov. Unitex had signed a deal that finalized its purchase of Yukos' retail network, paying RUR12.46 billion -- $483.5 million -- on May 25, 2007. Unitex outbid Royal Dutch Shell and TNK-BP Holding Ltd. to acquire Yukos' 537 petrol stations in Russia at a May 10, 2007 auction. Meanwhile, the Prana Group finalized a deal on June 8 acquiring Yukos' 22-story Moscow headquarters. Prana fully paid the $3.9 billion -- RUR100.5 billion -- price tag on May 30, after the Federal Antimonopoly Service approved the deal. Prana outbid a Rosneft unit to acquire the assets. Mr. Bogdanchikov told Interfax News that Rosneft wants to acquire most but not all Yukos assets that Prana acquired. The chief executive added that the talks with Unitex are in their final stages. "The trading house alone is worth more than $1 billion," Mr. Bogdanchikov said. He noted that Rosneft did not participate in the auction for Yukos' retail network due to lack of information. "But when we realized that we had enough information to make a managerial and commercial decision we decided to buy," Mr. Bogdanchikov was quoted by Interfax as saying. About Rosneft Based in Moscow, Russia, OAO Rosneft Oil Co. -- http://www.rosneft.com/-- produces and markets petroleum products. The company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. 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. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- June 28, 2007 TURNAROUND MANAGEMENT ASSOCIATION Wine Tasting & Networking Event Rouge & Blanc, San Francisco, California Contact: 510-346-6000 ext 226 or http://www.turnaround.org/ June 28, 2007 TURNAROUND MANAGEMENT ASSOCIATION Future Leaders Networking Event Castaways, Chicago, Illinois Contact: 815-469-2935 or http://www.turnaround.org/ June 28 - July 1, 2007 NORTON INSTITUTES Norton Bankruptcy Litigation Institute Jackson Lake Lodge, Jackson Hole, Wyoming Contact: http://www2.nortoninstitutes.org/ July 5, 2007 TURNAROUND MANAGEMENT ASSOCIATION SummerFest Milwaukee's Lake Front, Milwaukee, Wisconsin Contact: 815-469-2935 or http://www.turnaround.org/ July 5, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA-SA Exco Meeting Deloitte Place, Sandton, South Africa Contact: http://www.turnaround.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Bankruptcy Judges Panel University Club, Jacksonville, Florida Contact: http://www.turnaround.org/ July 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Young Professionals Billiards Night TBD, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ July 12-15, 2007 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Marriott, Newport, Rhode Island Contact: 1-703-739-0800; http://www.abiworld.org/ July 13, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ July 17, 2007 BEARD AUDIO CONFERENCES China's New Enterprise Bankruptcy Law Contact: 240-629-3300; http://www.beardaudioconferences.com/ July 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast & TMA Executive Board Meeting Cornell Club, New York, New York Contact: 646-932-5532 or http://www.turnaround.org/ July 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Florida / Secured Lenders Marlins Baseball Game Dolphin Stadium, Florida Contact: 561-882-1331 or http://www.turnaround.org/ July 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ July 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Mystic Blue Boat Cruise Navy Pier, Chicago, Illinois Contact: 815-469-2935 or http://www.turnaround.org/ July 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION 5th Annual Night of Excellence Petersen Automotive Museum, Los Angeles, California Contact: 310-458-2081 or http://www.turnaround.org/ July 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Mystic Blue Boat Cruise Navy Pier, Chicago, Illinois Contact: 815-469-2935 or http://www.turnaround.org/ July 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Young Professionals Networking Event Location TBA, Philadelphia, Pennsylvania Contact: 215-657-5551 or http://www.turnaround.org/ July 23, 2007 TURNAROUND MANAGEMENT ASSOCIATION Charity Networking Event Loews Hotel, Philadelphia, Pennsylvania Contact: 215-657-5551 or http://www.turnaround.org/ July 23, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Event Fundraiser Loews Hotel, Philadelphia, Pennsylvania Contact: 215-657-5551 or http://www.turnaround.org/ July 23-24, 2007 FINANCIAL RESEARCH ASSOCIATES Financial Restructuring 101 & 102 The Flatotel, New York, New York Contact: http://www.frallc.com/ July 25, 2007 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION Brown Bag Lunch Reid & Riege, New Haven, Connecticut Contact: http://www.iwirc.org/ July 25-28, 2007 AMERICAN BANKRUPTCY INSTITUTE 12th Annual Southeast Bankruptcy Workshop The Sanctuary, Kiawah Island, South Carolina Contact: http://www.abiworld.org/ July 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting TBA, Arizona Contact: http://www.turnaround.org/ July 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Golf Social Event Crystal Lake Golf Club, Lakeville, Minnesota Contact: 612-708-0258 or http://www.turnaround.org/ July 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION Colorado Chapter Annual Golf Tournament Kings Deer Golf Club, Monument, Colorado Contact: 303-847-5026 or http://www.turnaround.org/ July 28, 2007 TURNAROUND MANAGEMENT ASSOCIATION Lake Tahoe Cruise: Getting to Know Your Nevada Associations Zephyr Cove, Lake Tahoe, Nevada Contact: 702-952-2480 or http://www.turnaround.org/ July 31, 2007 BEARD AUDIO CONFERENCES Non-Traditional Lenders and the Impact of Loan-to-Own Strategies on the Restructuring Process Contact: 240-629-3300; http://www.beardaudioconferences.com/ July 31, 2007 TURNAROUND MANAGEMENT ASSOCIATION Enterprise Florida: Improving Florida's Business Climate and Helping Florida Companies Market Overseas Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Aug. 2, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA-SA Board Meeting Deloitte Place, Sandton, South Africa Contact: http://www.turnaround.org/ Aug. 3, 2007 TURNAROUND MANAGEMENT ASSOCIATION Women's Spa Event Short Hills Hilton, Livingston, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Aug. 9, 2007 BEARD AUDIO CONFERENCES Technology as a Competitive Advantage For Today's Legal Processes Contact: 240-629-3300; http://www.beardaudioconferences.com/ Aug. 9-11, 2007 AMERICAN BANKRUPTCY INSTITUTE 3rd Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ Aug. 9, 2007 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION Brown Bag Lunch Blum Shapiro & Co., West Hartford, Connecticut Contact: http://www.iwirc.org/ Aug. 10, 2007 TURNAROUND MANAGEMENT ASSOCIATION Special Olympics Sportsman's Lunch Sofitel, Brisbane, Queensland, Australia Contact: 1300 303 863 or http://www.turnaround.org/ Aug. 10, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ Aug. 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION Colorado Chapter Annual Brew Pub & Pool Social Wynkoop Brewing Company, Denver, Colorado Contact: 303-847-5026 or http://www.turnaround.org/ Aug. 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION Young Professionals Networking Event TBA, Philadelphia, Pennsylvania Contact: 215-657-5551 or http://www.turnaround.org/ Aug. 17, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Fishing Trip Point Pleasant, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Aug. 23-26, 2007 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Convention Drake Hotel, Chicago, Illinois Contact: http://www.nabt.com/ Aug. 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Fishing Trip Point Pleasant, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Aug. 28, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Healthcare Panel Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ Aug. 29-30, 2007 TURNAROUND MANAGEMENT ASSOCIATION 3rd Annual Northeast Regional Conference Gideon Putnam Resort and Spa, Saratoga Springs, New York Contact: http://www.turnaround.org/ Sept. 6, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Event Carnelian Room, San Francisco, California Contact: 510-346-6000 ext 226 or http://www.turnaround.org/ Sept. 6-7, 2007 TURNAROUND MANAGEMENT ASSOCIATION Complex Financial Restructuring Program Four Seasons, Las Vegas, Nevada Contact: http://www.turnaround.org/ Sept. 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Southwest Bankruptcy Conference Four Seasons, Las Vegas, Nevada Contact: http://www.abiworld.org/ Sept. 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Annual Networking at the Yards Oriole Park at Camden Yards, Baltimore, Maryland Contact: 215-657-5551 or http://www.turnaround.org/ Sept. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Body of Knowledge - CTP Review Class Chicago, Illinois Contact: http://www.turnaround.org/ Sept. 18, 2007 TURNAROUND MANAGEMENT ASSOCIATION 14th Annual Connecticut Children's Medical Center Fundraiser Golf Outing Woodbridge Country Club, Woodbridge, Connecticut Contact: 203-265-2048 or http://www.turnaround.org/ Sept. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION Buying and Selling Troubled Companies Marriott North, Fort Lauderdale, Florida Contact: http://www.turnaround.org/ Sept. 20, 2007 TURNAROUND MANAGEMENT ASSOCIATION Lean Transformation at Current and Other Case Studies Denver Athletic Club, Denver, Colorado Contact: http://www.turnaround.org/ Sept. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Retail Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Sept. 26, 2007 TURNAROUND MANAGEMENT ASSOCIATION Joint Educational & Networking Reception TBD, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Sept. 26-27, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Florida Annual Golf Tournament Tampa, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Sept. 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting TBA, Arizona Contact: http://www.turnaround.org/ Sept. 27-30, 2007 TURNAROUND MANAGEMENT ASSOCIATION 8th Annual Cross Border Business Restructuring & Turnaround Conference Contact: http://www.turnaround.org/ Oct. 2, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast TBD, Bridgewater, New Jersey Contact: 908-575-7333 or http://www.turnaround.org/ Oct. 4, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Event Carnelian Room, San Francisco, California Contact: 510-346-6000 ext 226 or http://www.turnaround.org/ Oct. 5, 2007 AMERICAN BANKRUPTCY INSTITUTE ABI/GULC "Views from the Bench" Georgetown University Law Center Washington, District of Columbia Oct. 9-10, 2007 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION IWIRC Annual Fall Conference Orlando, Florida Contact: http://www.iwirc.org/ Oct. 10-13, 2007 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES 81st Annual National Conference of Bankruptcy Judges Contact: http://www.ncbj.org/ Oct. 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Oct. 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Winn Dixie Bankruptcy University Club, Jacksonville, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Oct. 12, 2007 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION Presentation by George F. Will: The Political Argument Today Orlando, Florida Contact: http://www.ardent-services.com/ Oct. 12, 2007 AMERICAN BANKRUPTCY INSTITUTE ABI Educational Program at NCBJ Orlando World Marriott, Orlando, Florida Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 16-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place Boston, Massachussets Contact: 312-578-6900; http://www.turnaround.org/ Oct. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION Capital Markets Case Study Seattle, Washington Contact: http://www.turnaround.org/ Oct. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ Oct. 26, 2007 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Hotel Adlon Kempinski, Berlin, Germany Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Centre Club, Tampa, Florida Contact: 561-882-1331; http://www.turnaround.org/ Oct. 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Crisis Communications With Employees, Vendors and Media Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ Nov. 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Event Carnelian Room, San Francisco, California Contact: 510-346-6000 ext 226 or http://www.turnaround.org/ Nov. 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast TBD, Hackensack, New Jersey Contact: 908-575-7333; http://www.turnaround.org/ Nov. 12, 2007 AMERICAN BANKRUPTCY INSTITUTE Consumer Bankruptcy Conference Marriott, Troy, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Holiday Mixer McCormick & Schmick's, Las Vegas, Nevada Contact: 702-952-2480 or http://www.turnaround.org/ Nov. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Aloha Airlines Story Bankers Club, Miami, Florida Contact: http://www.turnaround.org/ Nov. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Australia 4th Annual Conference and Gala Dinner Hilton, Sydney, Australia Contact: http://www.turnaround.org/ Nov. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ Nov. 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Portland Holiday Party University Club, Portland, Oregon Contact: 206-223-5495; http://www.turnaround.org/ Nov. 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Mixer TBA, Vancouver, British Columbia Contact: 206-223-5495; http://www.turnaround.org/ Nov. 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Real Estate Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Nov. 29, 2007 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION Holiday Gala Yale Club, New York, New York Contact: http://www.iwirc.org/ Nov. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Special Speaker TBD, New Jersey Contact: 908-575-7333; http://www.turnaround.org/ Nov. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Special Speaker Hilton, Sydney, Australia Contact: http://www.turnaround.org/ Nov. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ Dec. 6, 2007 TURNAROUND MANAGEMENT ASSOCIATION Seattle Holiday Party Athletic Club, Seattle, Washington Contact: 206-223-5495; http://www.turnaround.org/ Dec. 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Westin Mission Hills Resort, Rancho Mirage, California Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 13, 2007 TURNAROUND MANAGEMENT ASSOCIATION Holiday Extravaganza - TMA & CFA Georgia Aquarium, Atlanta, Georgia Contact: 678-795-8103 or http://www.turnaround.org/ Dec. 13, 2007 TURNAROUND MANAGEMENT ASSOCIATION Holiday Extravaganza - TMA & CFA Georgia Aquarium, Atlanta, Georgia Contact: 678-795-8103 or http://www.turnaround.org/ Dec. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331; http://www.turnaround.org/ Jan. 10, 2008 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, Florida Feb. 7, 2008 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Event Carnelian Room, San Francisco, California Contact: 510-346-6000 ext 226 or http://www.turnaround.org/ Mar. 25-29, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Apr. 3-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 26th Annual Spring Meeting The Renaissance, Washington, District of Columbia Contact: http://www.abiworld.org/ Apr. 25-27, 2008 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Spring Seminar Eldorado Hotel & Spa, Santa Fe, New Mexico Contact: http://www.nabt.com/ May 1-2, 2008 AMERICAN BANKRUPTCY INSTITUTE Debt Symposium Hilton Garden Inn, Champagne/Urbana, Illinois Contact: 1-703-739-0800; http://www.abiworld.org/ June 4-7, 2008 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 24th Annual Bankruptcy & Restructuring Conference J.W. Marriott Spa and Resort, Las Vegas, Nevada Contact: http://www.airacira.org/ June 12-14, 2008 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: http://www.abiworld.org/ July 10-13, 2008 TURNAROUND MANAGEMENT ASSOCIATION 16th Annual Northeast Bankruptcy Conference Ocean Edge Resort Brewster, Massachussets Contact: http://www.turnaround.org/ July 31 - Aug. 2, 2008 AMERICAN BANKRUPTCY INSTITUTE 4th Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ Aug. 16-19, 2008 AMERICAN BANKRUPTCY INSTITUTE 13th Annual Southeast Bankruptcy Workshop Ritz-Carlton, Amelia Island, Florida Contact: http://www.abiworld.org/ Aug. 20-24, 2008 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Convention Captain Cook, Anchorage, Alaska Contact: http://www.nabt.com/ Sept. 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Scottsdale, Arizona Contact: http://www.ncbj.org/ Oct. 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott New Orleans, Louisiana Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Contact: http://www.abiworld.org/ May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ June 21-24, 2009 INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY & BANKRUPTCY PROFESSIONALS 8th International World Congress TBA Contact: http://www.insol.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ BEARD AUDIO CONFERENCES 2006 BACPA Library Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com; http://researcharchives.com/t/s?20fa BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Deepening Insolvency - Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Claims Trading Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Market Opportunities Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Equitable Subordination and Recharacterization Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Handling Complex Chapter 11 Restructuring Issues Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES IP Rights In Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Partnerships in Bankruptcy: Unwinding The Deal Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Real Estate Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergers-the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Technology as a Competitive Advantage For Today's Legal Processes Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Twenty-Day Claims Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Marie Therese V. Profetana, Shimero R. Jainga, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Jason A. Nieva, 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 ***