/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/070720.mbx T R O U B L E D C O M P A N Y R E P O R T E R Friday, July 20, 2007, Vol. 11, No. 170 Headlines ABITIBI-CONSOLIDATED: Names Proposed Executives of AbitibiBowater ALLISON TRANSMISSION: Moody's Rates $3.5 Bil. Secured Debt at B1 ALLISON TRANSMISSION: S&P Assigns Corporate Credit Rating at B+ AQUADERBY LLC: Case Summary & Six Largest Unsecured Creditors BAYOU GROUP: Judge Hardin Rejects Disclosure Statement BAYSIDE VENTURES: Case Summary & 53 Largest Unsecured Creditors BOWATER INC: Names Proposed Executives of AbitibiBowater CAROL KAUFMAN: Voluntary Chapter 11 Case Summary CLUTCH OPERATING: Moody's Puts Corporate Family Rating at B2 COLLINS & AIKMAN: C&A Automotive Canada Files for CCAA Protection COMM 2004-RS1: Fitch Affirms Low-B Ratings on Six Note Classes COOPER-STANDARD: Moody's Affirms B2 Corporate Family Rating CREDIT SUISSE: Stable Performance Cues Fitch to Affirm Ratings CWABS ASSET: Moody's Downgrades Ratings on Six Certificates DAYTON SUPERIOR: S&P Withdraws Ratings on Planned Refinancing DMW HOMESTEAD: Case Summary & 20 Largest Unsecured Creditors EIMSKIP HOLDINGS: Moody's Assigns Corporate Family Rating at B3 ENCYSIVE PHARMA: Hires Morgan Stanley to Evaluate Strategic Action ENRON CORP: Receives $149 Million in Litigation Settlement GMAC COMMERCIAL: Fitch Affirms Junk Rating on $13.3MM Class FNB-6 GOODYEAR TIRE: Deadline to Convert 4% Senior Notes is September 28 ENTERPRISE GP: Fitch Assigns Issuer Default Rating at BB- EPCO HOLDINGS: Fitch Places Issuer Default Rating at BB- GOLDMAN SACHS: S&P Preliminary Rates $16 Mil. Class E Notes at BB HM RIVERGROUP: Harcourt Deal Cues S&P's Positive CreditWatch HUSKY ENERGY: Earns $721 Million in Second Quarter Ended June 30 HUSKY ENERGY: Chief Financial Officer Geoff Barlow To Resign HUSKY ENERGY: Reports Quarterly Dividend of CDN$0.25 Per Share ISLE OF CAPRI: Virginia McDowell Appointed as President and CEO JG CONSULTING: Case Summary & Four Largest Unsecured Creditors JULE HAZOU: Case Summary & 18 Largest Unsecured Creditors K2 INC: Commences Cash Tender Offer for 7-3/8% Senior Notes LB-UBS: Fitch Affirms BB- Rating on $2.4MM Class M Certificates MARICOPA COUNTY: Moody's Downgrades Series 2000 Bonds' Ratings MICHAEL REDMAN: Case Summary & 19 Largest Unsecured Creditors MOSHE SHATZKI: Case Summary & Seven Largest Unsecured Creditors MUELLER ENTERPRISES: Case Summary & 17 Largest Unsecured Creditors NATIONAL HEALTH: Notes Repayment Cues S&P to Withdraw Ratings NCO GROUP: Launches Exchange Offers for $365 Million Senior Notes NORMAN MOULDEN: Case Summary & 18 Largest Unsecured Creditors NORTH PHOENIX: Voluntary Chapter 11 Case Summary NYLSTAR INC: Can Use Bear Stearns' Cash Collateral NYLSTAR INC: Section 341(a) Creditors Meeting Set on August 1 OASYS MOBILE: Files for Chapter 11 Protection in Delaware OASYS MOBILE: Case Summary & 20 Largest Unsecured Creditors OMNITECH CONSULTANT: Discloses Resignation of Three Officers PARAMOUNT RESOURCES: S&P Lifts Corp. Credit Rating to B from CCC+ PAUL SCHWENDENER: Wants Access to LaSalle's Cash Collateral PAUL SCHWENDENER: Section 341(a) Creditors Meeting Set on Aug. 22 PIERRE FOODS: Posts $4.3 Million Net Loss in Quarter Ended June 2 PLAINS EXPLORATION: S&P Affirms BB Corporate Credit Rating RICHARD FLETCHER: Case Summary & Nine Largest Unsecured Creditors SALOMON BROS: S&P Affirms BB Rating on 1998-AQ1 Class B-2 Certs. SANITEC INDUSTRIES: Section 341(a) Meeting Scheduled on August 14 SARFRAZ MALIK: Case Summary & 11 Largest Unsecured Creditors SHAW COMMS: Earnings Down to $91.7 Million in Quarter Ended May 31 SHAW GROUP: Secures $1.29 Billion EPC Contract from Duke Energy SHEPARD JOHNSON: Case Summary & 17 Largest Unsecured Creditors SOBEYS INC: Thrifty Foods Deal Cues S&P to Retain Negative Watch STERICYCLE INC: S&P Withdraws BB+ Rating at Company's Request STEVE SUTHERLAND: Case Summary & 19 Largest Unsecured Creditors STONERIDGE INC: Improved Profitability Cues S&P's Positive Outlook SYMBION INC: S&P Junks Rating on Proposed $175MM PIK Toggle Notes SYMBOL MERGER: Moody's Assigns Corporate Family Rating at B2 T2 INCOME: S&P Preliminary Rates $12 Million Class E Notes at BB TERADYNE INC: Earnings Down to $27.7 Mil. in Quarter Ended July 1 THANG VAN LE: Case Summary & 14 Largest Unsecured Creditors THREE ANGELS: Section 341(a) Creditors Meeting Set for August 7 THREE ANGELS: Wants to Employ Burton & Armstrong as Counsel TINA WRIGHT: Case Summary & 19 Largest Unsecured Creditors TPG-AUSTIN PORTFOLIO: Weak Financial Profile Cues S&P's B Rating TROY COX: Case Summary & 20 Largest Unsecured Creditors UNITED HERITAGE: Weaver and Tidwell Raises Going Concern Doubt USA INVESTMENT: To Sell Hotel Zoso and Palm Springs Marquis Villas WALTER HEIGLE: Voluntary Chapter 11 Case Summary WEST CORP: June 30 Balance Sheet Upside-Down by $2.1 Billion WILLIAM FREELOVE: Case Summary & 13 Largest Unsecured Creditors WILLIAM SANDLIN: Voluntary Chapter 11 Case Summary WILLIAM SWANSON: Voluntary Chapter 11 Case Summary ZOHOURI GROUP: South Padre Sale Auction Scheduled for July 24 * Donlin Recano Joins Beard Group in Providing Bankruptcy News * BOOK REVIEW: Trump: The Saga of America's Most Powerful Real Estate Baron ********* ABITIBI-CONSOLIDATED: Names Proposed Executives of AbitibiBowater ----------------------------------------------------------------- Abitibi-Consolidated Inc. and Bowater Incorporated disclosed the proposed executive team to lead AbitibiBowater Inc., pending approval of the proposed combination and appointment by the board of AbitibiBowater. John W. Weaver, currently president and chief executive officer of Abitibi-Consolidated, will be executive chairman of the new company, responsible for all corporate functions. David J. Paterson, currently chairman, president and chief executive officer of Bowater, will serve as president and chief executive officer of AbitibiBowater, with primary responsibility for operations and sales. "We're creating a stronger global leader better able to succeed in a competitive market, and this is the team that will lead that effort," Mr. Weaver said. "Our first priority is to deliver at least $250 million in synergies, which will create significant value for investors. We are confident that this executive team will deliver on the synergy commitment." "We've chosen a talented group of seasoned professionals with diverse and impressive backgrounds to lead the new company. This team will work across the organization to engage all employees, collectively building a successful future," Mr. Paterson added. "The team will work in partnership with our customers to ensure a dependable source for a range of forest products and best-in-class customer service. Furthermore, we believe the new executive team of a larger combined company will create significant value for our investors. We expect to have enhanced financial flexibility, increased cash flow and a better opportunity to unlock future value." AbitibiBowater will be organized into four primary businesses: North American Newsprint, International, Commercial Printing and Coated Papers, and Wood Products. Each business will have bottom- line responsibility for all aspects of operations and sales. In addition to Messrs. Weaver and Paterson, AbitibiBowater's executive team is expected to include nine executives namely: * Alain Grandmont, senior vice president, Commercial Printing and Coated Papers Business. Mr. Grandmont is currently senior vice president, Commercial Printing Papers, for Abitibi-Consolidated. * William G. Harvey, senior vice president and chief financial officer. Mr. Harvey is currently Bowater's executive vice president and chief financial officer. * Yves Laflamme, senior vice president, Wood Products Business. Mr. Laflamme is currently Abitibi-Consolidated's senior vice president, Woodlands and Sawmills. * Jon Melkerson, senior vice president, business and corporate development - inclusive of the growing Recycling and Energy businesses, well as marketing, strategic planning and manufacturing excellence. Mr. Melkerson is currently Abitibi-Consolidated's vice president, international newsprint sales. * Pierre Rougeau, senior vice president, North American Newsprint Business. Mr. Rougeau is currently Abitibi- Consolidated's senior vice president, corporate development and chief financial officer. * W. Eric Streed, senior vice president for supply chain, comprised of information technology, customer service, logistics and procurement. Mr. Streed is currently Bowater's executive vice president, operations and process improvement. * Thor Thorsteinson, senior vice president, international business - inclusive of international newsprint and pulp. Mr. Thorsteinson is currently Abitibi-Consolidated's senior vice president, newsprint. * Jacques P. Vachon, senior vice president, corporate affairs and chief legal officer, will have responsibility for overseeing the combined company's Legal, communications & government affairs, internal audit and environment & sustainability functions. Mr. Vachon currently holds a similar position within Abitibi-Consolidated. * James T. Wright, Senior Vice President, Human Resources. Mr. Wright currently holds similar responsibilities at Bowater. The Institutional Shareholder Services Inc. and Glass Lewis & Co., two independent proxy advisory firms, have recommended that Abitibi-Consolidated shareholders and Bowater stockholders vote in favor of the proposed combination. AbitibiBowater will own or operate 32 pulp and paper facilities and 35 wood product facilities located mainly in Eastern Canada and the Southeastern U.S. About Bowater Incorporated Bowater Inc. (NYSE: BOW, TSX: BWX) -- http://www.bowater.com/ -- produces coated and specialty papers and newsprint. In addition, the company sells bleached market pulp and lumber products. Bowater has 12 pulp and paper mills in the United States, Canada, and South Korea. In North America, it also owns two converting facilities and 10 sawmills. Bowater's operations are supported by approximately 835,000 acres of timberlands owned or leased in the United States and Canada and 28 million acres of timber cutting rights in Canada. Bowater operates six recycling plants and is one of the world's largest consumers of recycled newspapers and magazines. About Abitibi-Consolidated Inc. Headquartered in Montreal, Quebec, Abitibi-Consolidated Inc. (NYSE: ABY, TSX: A) -- http://www.abitibiconsolidated.com/-- supplies newsprint and commercial printing papers and produces wood products, serving clients in some 70 countries from its 45 operating facilities. Abitibi-Consolidated is one of the recyclers of newspapers and magazines in North America. * * * As reported in the Troubled Company Reporter on June 20, 2007, Standard & Poor's Ratings Services lowered its ratings, including the long-term corporate credit rating to 'B' from 'B+', on Abitibi-Consolidated Inc. The outlook is negative. ALLISON TRANSMISSION: Moody's Rates $3.5 Bil. Secured Debt at B1 ---------------------------------------------------------------- Moody's Investors Service assigned an initial Corporate Family Rating of B2 to Clutch Operating Company, Inc., an entity formed to acquire the assets of Allison Transmission from General Motors Corporation, which will be renamed Allison Transmission, Inc. following closing of the deal. At the same time, Allison's $3.5 billion of secured bank debt was rated B1 (LGD-3-38%) and the company's planned issue of $1.1 billion of unsecured notes were rated Caa1 (LGD-5, 89%). The ratings consider Allison's favorable business profile and strong operating margins but emphasize the aggressive leverage deployed in its acquisition financing and resultant thin coverage metrics and extensive balance sheet intangibles that will be established from the underlying valuation. Allison enjoys exceptional market share and robust margins in its focused market of automatic transmissions for both on-road and off-highway commercial and military vehicles. These characteristics could be viewed as consistent with ratings above the assigned B2 Corporate Family Rating. However, the business model involves a high level of financial leverage and Allison has a certain degree of customer and geographic concentration and remains exposed to cyclical patterns driven by both macro-economic factors and emission regulations. In Moody's view, these weaknesses suggest an overall credit risk that is more consistent with the B2 Corporate Family Rating. The outlook is stable. Allison is being acquired by The Carlyle Group and Onex Corporation from General Motors Corporation in a leveraged transaction valued at about $5.7 billion. Bank debt will consist of a $3.1 billion term loan and a $0.4 billion revolving credit facility, which is expected to be un-drawn at closing. The $1.1 billion of unsecured notes will be issued under Rule 144A but will not have registration rights. The notes may be separated into two pari passu issues; one which would have interest paid in cash and another with a "PIK-toggle" feature which would provide the issuer with an option to pay a portion of interest in cash and the remainder through additional notes or by increasing the amount of existing notes. The company's pro forma debt/capital structure will be roughly 73% debt. The North American commercial vehicle market is expected to go through both a significant decline in production in 2007 and a substantial increase in 2009 in advance of the next stage of diesel emission regulations. Moody's would estimate Allison's initial debt to average EBITDA over the next few years to be in excess of 7 times, and this high level of leverage is a key rating constraint. While the company will face only minor mandatory debt amortization in the first few years of the transaction, it is expected to maintain strong operating margins and should generate a modest amount of free cash flow over this period. It will have significant availability under its term revolving credit facility to address any seasonal working capital requirements or cash flow deficits that may arise during the near-term downturn in the industry. The stable outlook develops from the term nature of the company's business awards, expectations of moderate free cash flow over the intermediate period, and sizable external liquidity arrangements. Increasing adoption rates of automatic transmissions, strong military orders during the next two years, ongoing aftermarket demand, and international growth will soften the effect of lower North American build rates anticipated in 2007. Allison's earnings will be sensitive to the direction of specialty steel and aluminum costs, given the term structure of its pricing arrangements and the limited extent to which it can hedge metal costs. Ratings assigned: Allison Transmission, Inc. -- Corporate Family Rating, B2 -- Probability of Default, B2 -- $400 million secured revolving credit, B1 (LGD-3, 38%) -- $3,100 million secured term loan, B1 (LGD-3, 38%) -- $1,100 million unsecured notes, Caa1 (LGD-5, 89%) Both the secured bank debt and the unsecured notes benefit from up-streamed guarantees from material domestic subsidiaries. The bank credit facilities will also have a down-streamed guarantee from Allison's immediate holding company parent and will be secured against substantially all of the borrower's domestic tangible and intangible assets and the pledge of 65% of shareholding in any material first tier international subsidiaries. The B1 rating on the bank debt is the result of an underlying probability of default of B2 and a loss given default of LGD-3, 38%. The latter develops from its priority claims on assets as well as the effective subordination of $1.1 billion of unsecured obligations. The Caa1 rating on the unsecured notes reflects their junior position in the capital structure and is the product of the same PDR and a loss given default of LGD-5, 89%. Allison Transmission, Inc., headquartered in Speedway, Indiana, designs and manufactures automatic transmissions for commercial and military vehicles. Revenues in 2006 were roughly $2.4 billion. ALLISON TRANSMISSION: S&P Assigns Corporate Credit Rating at B+ --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' corporate credit rating to Indianapolis, Indiana-based Allison Transmission Inc., a commercial vehicle transmission manufacturer that is being acquired from General Motors Corp. (B/Negative/B-3) in a leveraged buyout by The Carlyle Group and Onex Corp. The outlook is stable. Standard & Poor's also assigned its 'BB-' bank loan rating and '2' recovery ratings to the company's proposed $400 million revolving credit facility and $3.1 billion first-lien senior secured term loan. The '2' recovery rating indicates expectation of substantial (70%-90%) recovery in the event of a default. In addition, S&P assigned a 'B-' rating to the company's proposed $1.1 billion senior unsecured notes. "The ratings reflect Allison's highly leveraged financial profile following the proposed acquisition, which more than offsets the company's end-market diversity, leading market shares, and good profitability as a leading supplier of automatic transmissions," said Standard & Poor's credit analyst Gregg Lemos-Stein. Still, the business risk profile is considered weak, reflecting the cyclicality, high fixed costs, customer concentration, and raw- material price sensitivity of the commercial vehicle supplier business. Allison had 2006 revenues of $2.4 billion, with about 54% of the total coming from sales of automatic transmissions for new North American commercial trucks, buses, and motor homes. Demand in these various segments is cyclical, driven by a number of factors, including the economy and regulatory changes. Heavy-truck sales in North America will be down sharply in 2007 as recent changes in emissions standards will create significant demand swings from cyclical peak to trough. Allison's business risk profile benefits from strong market shares, which are supported by long-standing relationships with its customers, many of whom enter multiyear exclusive supply arrangements. Another positive is the trend toward automatic transmissions in the North American commercial market, where nearly all school buses and motor homes and a growing percentage of medium- and heavy-duty trucks have automatic transmissions. One exception is the class 8 line-haul truck market, which relies almost exclusively on manual transmissions; however, Allison does target fleets that use class 8 trucks for shorter distances or within metro areas. AQUADERBY LLC: Case Summary & Six Largest Unsecured Creditors ------------------------------------------------------------ Debtor: AquaDerby, LLC 1133 N Rainbow Drive Derby, KS 67037 Bankruptcy Case No.: 07-11711 Chapter 11 Petition Date: July 18, 2007 Court: District of Kansas (Wichita) Judge: Robert E. Nugent Debtor's Counsel: William H. Zimmerman, Jr., Esq. Case, Moses, Zimmerman & Wilson PA 900 Olive Garvey Building 200 West Douglas Wichita, KS 67202 Tel: (316) 303-0100 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's List of Six Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Sedgwick County Treasurer Real Estate Taxes $36,361 P.O. Box 2961 Wichita, KS 67201-2961 Personal Property $1,995 Taxes Kansas Department of Revenue State Sales Tax $9,000 915 Southwest Harrison Street Topeka, KS 66625-2001 Internal Revenue Service 941 Taxes $8,000 271 West 3rd Street North Suite 3000 Wichita, KS 67202 American Express Miscellaneous $7,000 Cheney Door Company Service $618 Reddi Root'r Repair $400 BAYOU GROUP: Judge Hardin Rejects Disclosure Statement ------------------------------------------------------ The Honorable Adlai S. Hardin Jr. of the U.S. Bankruptcy Court for Southern District of New York rejected Bayou Group LLC and its debtor-affiliates' Amended Disclosure Statement explaining its Modified Chapter 11 Plan of Liquidation, Bill Rochelle of Bloomberg News reports. The plan, which Judge Hardin says is untimely, provides for a proposed settlement, demanding former investors to return money received before the company filed for bankruptcy, and redistribute it equally, Bloomberg relates. According to the report, investors opposed the plan citing that it was filed in bad faith. Judge Hardin decreed that fraudulent conveyance lawsuits, which Bayou's receiver filed against the investors, should continue, according to Bloomberg. Based in Chicago, Illinois, Bayou Group, LLC, operates and manages hedge funds. The company and its affiliates filed for chapter 11 protection on May 30, 2006 (Bankr. S.D.N.Y. Case No. 06-22306). Elise Scherr Frejka, Esq., at Dechert LLP, represents the Debtors in their restructuring efforts. Joseph A. Gershman, Esq., and Robert M. Novick, Esq., at Kasowitz, Benson, Torres & Friedman, LLP, represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they estimated assets and debts of more than $100 million. BAYSIDE VENTURES: Case Summary & 53 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Bayside Ventures, LLC aka Bayside Ventures I, LLC 1000 South Federal Highway, Suite 200 Fort Lauderdale, FL 33316 Bankruptcy Case No.: 07-15612 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Bayside Ventures II, LLC 07-15614 Bayside Ventures III, LLC 07-15616 Bayside Ventures IV, LLC 07-15617 Chapter 11 Petition Date: July 18, 2007 Court: Southern District of Florida (Fort Lauderdale) Judge: Raymond B. Ray Debtors' Counsel: Charles W. Throckmorton, Esq. Kozyak Tropin & Throckmorton, P.A. 2525 Ponce De Leon Boulevard, 9th Floor Miami, FL 33134 Tel: (305) 377-0655 Fax: (305) 372-1800 Total Assets Total Debts ------------ ----------- Bayside Ventures, LLC $2,236,954 $87,010 Bayside Ventures II, LLC $1,466,235 $1,262,860 Bayside Ventures III, LLC $1,064,276 $3,448,818 Bayside Ventures IV, LLC $3,536,489 $12,281,473 A. Bayside Ventures, LLC's List of its Four Largest Unsecured Creditors: Entity Claim Amount ------ ------------ T.W. Hard Jr., M.D. & Associates $60,000 FBO Robert Landman 6066 Melita Road Santa Rosa, CA 95409 Mel Korey Trust $53,810 4725 North Scottsdale Road, Suite 215 Scottsdale, AZ 85251 Richard Silverman $25,000 55 West Delaware Place Apartment No. 1002 Chicago, IL 60610 Stephen & Harlene Korey Living Trust $8,200 B. Bayside Ventures II, LLC's List of its 13 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Peter & Debra Benman $150,000 332 South Michigan Avenue, Suite 1000 Chicago, IL 60804 Stephen & Harlene Korey Living Trust $141,430 4725 North Scottsdale Road, Suite 215 Scottsdale, AZ 85251 Mel Korey Trust $141,430 4725 North Scottsdale Road, Suite 215 Scottsdale, AZ 85251 R.P. Leta Overholt $125,000 Michael Podolsky $100,000 Sharon Dreeben $100,000 Sheldon F. Food Rev. Trust $100,000 Gerald Becker, June & Jeffrey Becker $90,000 Colleen Coughlin $75,000 Sandford Zimmerman $75,000 Tim & Lauire Carroll $50,000 Leta Gold SEP IRA $50,000 Allene E. Landman $25,000 C. Bayside Ventures III, LLC's List of its 19 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ William Kulp $1,350,000 1904 Larrabee Street Chicago, IL 60014 David Schorvitz $308,336 3 Cherrywood Riverwood, IL 60015 David Schorvitz, LLC $231,664 Defined Benefit Pension Plan 3 Cherrywood Riverwood, IL 60015 Neil & Rose Widet $200,000 Emherst Emergency Medical Serv. Ltd. $150,000 Mel Korey Trust $113,400 Stephen & Harlene Korey Living Trust $113,400 Sheldon F. Good Revocable Trust $100,000 Michael & Jane Suwalski $100,000 FGMK Investments, LLC $100,000 FGMK Inv., LLC, Employees 401K $100,000 Jennifer Lewis - IRA $100,000 Seth Korey $96,000 Alejandro Berstein $79,600 Sidney & Sharon Stern $75,600 Steve Stone $75,600 Eric B. Schorvitz $55,218 James Claffey $50,000 Lynn Lewis $50,000 D. Bayside Ventures IV, LLC's List of its 17 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Richard W. Stevenson $2,500,000 95 Woodley Road Wennetka, IL 60093 Steve Stone $1,109,075 9261 North 128 Way Scottsdale, AZ 85259 Mel Korey Trust $1,050,040 4725 North Scottsdale Road, Suite 215 Scottsdale, AZ 85251 Edgewood Fund I, L.P. $1,030,000 10 South Riverside Plaza, Suite 2220 Chicago, IL 60606 Thomas and Mary Goodridge $500,000 401 Woodley Woods Road Winnetka, IL 60093 Jerrilyn M. Hoffman Revocable Trust $500,000 10 South Riverside Plaza, Suite 220 Chicago, IL 60606 Delaware Charter Guarantee & Trust $359,000 Peter J. Berman, SEP-IRA 350 North Clark Street Chicago, IL 60610 Robert Conrads $350,000 38 Meadow Wood Drive Greenwich, CT 06830 Alejandro Berenstein $300,000 1725 York Avenue, Apartment 22-F New York, NY 10028 Jill Estep Retirement Plan $300,000 2225 East Mountain View Road Phoenix, AZ 85028 SEP-IRA of Dr. Sharon Deebren $250,000 331 Sea Ridge Drive La Jolla, CA 92037 Steve Korey $250,000 4725 North Scottsdale Road, Suite 215 Scottsdale, AZ 85251 Farrel Freidman $250,000 P.O. Box 13200 Chicago, IL 60613 American Consumer, Inc. $248,108 Fred and Lynn Brody $200,000 Phillip Yalowitz-IRA $150,000 Rosenburg Family Trust $150,000 WF Kulp, Inc. Profit Sharing Plan $150,000 BOWATER INC: Names Proposed Executives of AbitibiBowater -------------------------------------------------------- Abitibi-Consolidated Inc. and Bowater Incorporated disclosed the proposed executive team to lead AbitibiBowater Inc., pending approval of the proposed combination and appointment by the board of AbitibiBowater. John W. Weaver, currently president and chief executive officer of Abitibi-Consolidated, will be executive chairman of the new company, responsible for all corporate functions. David J. Paterson, currently chairman, president and chief executive officer of Bowater, will serve as president and chief executive officer of AbitibiBowater, with primary responsibility for operations and sales. "We're creating a stronger global leader better able to succeed in a competitive market, and this is the team that will lead that effort," Mr. Weaver said. "Our first priority is to deliver at least $250 million in synergies, which will create significant value for investors. We are confident that this executive team will deliver on the synergy commitment." "We've chosen a talented group of seasoned professionals with diverse and impressive backgrounds to lead the new company. This team will work across the organization to engage all employees, collectively building a successful future," Mr. Paterson added. "The team will work in partnership with our customers to ensure a dependable source for a range of forest products and best-in-class customer service. Furthermore, we believe the new executive team of a larger combined company will create significant value for our investors. We expect to have enhanced financial flexibility, increased cash flow and a better opportunity to unlock future value." AbitibiBowater will be organized into four primary businesses: North American Newsprint, International, Commercial Printing and Coated Papers, and Wood Products. Each business will have bottom- line responsibility for all aspects of operations and sales. In addition to Messrs. Weaver and Paterson, AbitibiBowater's executive team is expected to include nine executives namely: * Alain Grandmont, senior vice president, Commercial Printing and Coated Papers Business. Mr. Grandmont is currently senior vice president, Commercial Printing Papers, for Abitibi-Consolidated. * William G. Harvey, senior vice president and chief financial officer. Mr. Harvey is currently Bowater's executive vice president and chief financial officer. * Yves Laflamme, senior vice president, Wood Products Business. Mr. Laflamme is currently Abitibi-Consolidated's senior vice president, Woodlands and Sawmills. * Jon Melkerson, senior vice president, business and corporate development - inclusive of the growing Recycling and Energy businesses, well as marketing, strategic planning and manufacturing excellence. Mr. Melkerson is currently Abitibi-Consolidated's vice president, international newsprint sales. * Pierre Rougeau, senior vice president, North American Newsprint Business. Mr. Rougeau is currently Abitibi- Consolidated's senior vice president, corporate development and chief financial officer. * W. Eric Streed, senior vice president for supply chain, comprised of information technology, customer service, logistics and procurement. Mr. Streed is currently Bowater's executive vice president, operations and process improvement. * Thor Thorsteinson, senior vice president, international business - inclusive of international newsprint and pulp. Mr. Thorsteinson is currently Abitibi-Consolidated's senior vice president, newsprint. * Jacques P. Vachon, senior vice president, corporate affairs and chief legal officer, will have responsibility for overseeing the combined company's Legal, communications & government affairs, internal audit and environment & sustainability functions. Mr. Vachon currently holds a similar position within Abitibi-Consolidated. * James T. Wright, Senior Vice President, Human Resources. Mr. Wright currently holds similar responsibilities at Bowater. The Institutional Shareholder Services Inc. and Glass Lewis & Co., two independent proxy advisory firms, have recommended that Abitibi-Consolidated shareholders and Bowater stockholders vote in favor of the proposed combination. AbitibiBowater will own or operate 32 pulp and paper facilities and 35 wood product facilities located mainly in Eastern Canada and the Southeastern U.S. About Abitibi-Consolidated Inc. Headquartered in Montreal, Quebec, Abitibi-Consolidated Inc. (NYSE: ABY, TSX: A) -- http://www.abitibiconsolidated.com/-- supplies newsprint and commercial printing papers and produces wood products, serving clients in some 70 countries from its 45 operating facilities. Abitibi-Consolidated is one of the recyclers of newspapers and magazines in North America. About Bowater Incorporated Bowater Inc. (NYSE: BOW, TSX: BWX) -- http://www.bowater.com/ -- produces coated and specialty papers and newsprint. In addition, the company sells bleached market pulp and lumber products. Bowater has 12 pulp and paper mills in the United States, Canada, and South Korea. In North America, it also owns two converting facilities and 10 sawmills. Bowater's operations are supported by approximately 835,000 acres of timberlands owned or leased in the United States and Canada and 28 million acres of timber cutting rights in Canada. Bowater operates six recycling plants and is one of the world's largest consumers of recycled newspapers and magazines. * * * xAs reported in the Troubled Company Reporter on June 20, 2007, Standard & Poor's Ratings Services lowered its ratings on Bowater Inc., including its corporate credit rating, to 'B' from 'B+'. The outlook is negative. CAROL KAUFMAN: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Carol Kaufman 1221 Old Princeton Road New Castle, PA 16101-6246 Bankruptcy Case No.: 07-24565 Chapter 11 Petition Date: July 18, 2007 Court: Western District of Pennsylvania (Pittsburgh) Debtor's Counsel: Gary H. Simone, Esq. Rishor Simone Suite 208, 101 East Diamond Street Butler, PA 16001 Tel: (724) 283-7215 Fax: (724) 283-0229 Estimated Assets: $1 Million to $100 Million Estimated Debts: $100,000 to $1 Million The Debtor did not file a list of its 20 largest unsecured creditors. CLUTCH OPERATING: Moody's Puts Corporate Family Rating at B2 ------------------------------------------------------------ Moody's Investors Service assigned an initial Corporate Family Rating of B2 to Clutch Operating Company, Inc., an entity formed to acquire the assets of Allison Transmission from General Motors Corporation, which will be renamed Allison Transmission, Inc. following closing of the deal. At the same time, Allison's $3.5 billion of secured bank debt was rated B1 (LGD-3-38%) and the company's planned issue of $1.1 billion of unsecured notes were rated Caa1 (LGD-5, 89%). The ratings consider Allison's favorable business profile and strong operating margins but emphasize the aggressive leverage deployed in its acquisition financing and resultant thin coverage metrics and extensive balance sheet intangibles that will be established from the underlying valuation. Allison enjoys exceptional market share and robust margins in its focused market of automatic transmissions for both on-road and off-highway commercial and military vehicles. These characteristics could be viewed as consistent with ratings above the assigned B2 Corporate Family Rating. However, the business model involves a high level of financial leverage and Allison has a certain degree of customer and geographic concentration and remains exposed to cyclical patterns driven by both macro-economic factors and emission regulations. In Moody's view, these weaknesses suggest an overall credit risk that is more consistent with the B2 Corporate Family Rating. The outlook is stable. Allison is being acquired by The Carlyle Group and Onex Corporation from General Motors Corporation in a leveraged transaction valued at about $5.7 billion. Bank debt will consist of a $3.1 billion term loan and a $0.4 billion revolving credit facility, which is expected to be un-drawn at closing. The $1.1 billion of unsecured notes will be issued under Rule 144A but will not have registration rights. The notes may be separated into two pari passu issues; one which would have interest paid in cash and another with a "PIK-toggle" feature which would provide the issuer with an option to pay a portion of interest in cash and the remainder through additional notes or by increasing the amount of existing notes. The company's pro forma debt/capital structure will be roughly 73% debt. The North American commercial vehicle market is expected to go through both a significant decline in production in 2007 and a substantial increase in 2009 in advance of the next stage of diesel emission regulations. Moody's would estimate Allison's initial debt to average EBITDA over the next few years to be in excess of 7 times, and this high level of leverage is a key rating constraint. While the company will face only minor mandatory debt amortization in the first few years of the transaction, it is expected to maintain strong operating margins and should generate a modest amount of free cash flow over this period. It will have significant availability under its term revolving credit facility to address any seasonal working capital requirements or cash flow deficits that may arise during the near-term downturn in the industry. The stable outlook develops from the term nature of the company's business awards, expectations of moderate free cash flow over the intermediate period, and sizable external liquidity arrangements. Increasing adoption rates of automatic transmissions, strong military orders during the next two years, ongoing aftermarket demand, and international growth will soften the effect of lower North American build rates anticipated in 2007. Allison's earnings will be sensitive to the direction of specialty steel and aluminum costs, given the term structure of its pricing arrangements and the limited extent to which it can hedge metal costs. Ratings assigned: Allison Transmission, Inc. -- Corporate Family Rating, B2 -- Probability of Default, B2 -- $400 million secured revolving credit, B1 (LGD-3, 38%) -- $3,100 million secured term loan, B1 (LGD-3, 38%) -- $1,100 million unsecured notes, Caa1 (LGD-5, 89%) Both the secured bank debt and the unsecured notes benefit from up-streamed guarantees from material domestic subsidiaries. The bank credit facilities will also have a down-streamed guarantee from Allison's immediate holding company parent and will be secured against substantially all of the borrower's domestic tangible and intangible assets and the pledge of 65% of shareholding in any material first tier international subsidiaries. The B1 rating on the bank debt is the result of an underlying probability of default of B2 and a loss given default of LGD-3, 38%. The latter develops from its priority claims on assets as well as the effective subordination of $1.1 billion of unsecured obligations. The Caa1 rating on the unsecured notes reflects their junior position in the capital structure and is the product of the same PDR and a loss given default of LGD-5, 89%. Allison Transmission, Inc., headquartered in Speedway, Indiana, designs and manufactures automatic transmissions for commercial and military vehicles. Revenues in 2006 were roughly $2.4 billion. COLLINS & AIKMAN: C&A Automotive Canada Files for CCAA Protection ----------------------------------------------------------------- Collins & Aikman Corporation disclosed Thursday that Collins & Aikman Automotive Canada Inc. applied for creditor protection under the Companies' Creditors Arrangement Act (Canada) in the Ontario Superior Court of Justice. The CCAA filing for Collins & Aikman's Canadian Plastics operations is a necessary step in completing its restructuring efforts. "This CCAA filing will allow the company to complete any potential sale transactions involving our Canadian Plastics operations," said John Boken, Collins & Aikman's Chief Restructuring Officer. "Similar to our previous filing involving our Soft Trim operations, we expect to work closely with our customers, suppliers and employees, as well as the US and Canadian courts to complete our restructuring efforts." In connection with the filing, Collins & Aikman sought and obtained orders staying creditors and other third parties from terminating agreements with the companies or otherwise taking enforcement steps. Collins & Aikman's Canadian Plastics entities will continue operations in the ordinary course during the CCAA proceedings under the leadership of their existing management team. The Company has arranged for DIP financing that will provide the necessary funding during the CCAA proceedings. Ernst & Young Inc. was appointed by the Court as the Monitor in the CCAA proceedings. About Collins & Aikman Headquartered in Troy, Mich., 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 Debtors 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. As reported in the Troubled Company Reporter on July 16, 2007, the Court confirmed the Debtors' Amended Joint Plan of Liquidation. COMM 2004-RS1: Fitch Affirms Low-B Ratings on Six Note Classes -------------------------------------------------------------- Fitch affirms all classes of notes issued by COMM 2004-RS1. These affirmations are the result of Fitch's annual review process and are effective immediately: -- $220,354,069.96 class A at 'AAA'; -- Interest only classes XP, IO-1, IO-2 at 'AAA'; -- $39,020,000 class B1 at 'AA'; -- $41,298,000 class B2 at 'AA'; -- $13,386,000 class C at 'AA-'; -- $12,955,000 class D at 'A'; -- $4,318,000 class E at 'A-'; -- $3,023,000 class F at 'BBB+'; -- $2,056,000 class G at 'BBB-'; -- $2,176,000 class H at 'BB+'; -- $725,000 class J at 'BB'; -- $1,313,000 class K at 'BB-'; -- $1,520,000 class L at 'B+'; -- $622,000 class M at 'B'; -- $2,384,528.47 class N at 'B-'. COMM 2004-RS1 Ltd is a static CMBS re-securitization which closed Nov. 4, 2004. The collateral of the deal was selected by Deutsche Bank. The proceeds from the issuance are directly or indirectly secured by a static portfolio consisting of all or a portion of 25 fixed-rate subordinated classes from 13 commercial mortgage-backed securities transactions. The portfolio is currently composed of CMBS (24.7%) and CMBS re-real estate investment mortgage conduit (Re-REMIC) certificates (75.3%). These affirmations are the result of stable collateral performance. Since Fitch's last review, the WARF on the collateral has slightly worsened to 2.61 ('A-'/'BBB+') from 2.46 ('A-'/'BBB+'). The collateral had a Fitch WARF of 2.46 ('A- '/'BBB+') at close. The largest underlying CMBS transaction is Marquee 2004-1 Ltd., which is a repackaging of a senior certificate, evidencing an ownership interest in the two classes of CMCMT 1998-C1, representing 75.3% of COMM 2004-RS1. CMCMT 1998-C1 is directly backed by 19 CMBS trusts issued between 1995 and 1998. The two classes of CMCMT 1998-C1 (class D1 and D2 notes) have a current subordination level of 38.53%. Fitch does not explicitly rate this transaction. The ratings of the classes A, B-1, and B-2 notes address the likelihood that investors will receive full and timely payments of interest, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. The ratings of the classes D, E, F, G, H, J, K, L, M, and N notes address the likelihood that investors will receive ultimate and compensating interest payments, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. The ratings of the classes XP and IO notes only address the likelihood of receiving interest payments while principal on the related certificates remains outstanding. COOPER-STANDARD: Moody's Affirms B2 Corporate Family Rating ----------------------------------------------------------- Moody's Investors Service affirmed the B2 Corporate Family and Probability of Default Ratings of Cooper-Standard Automotive Inc. and its wholly-owned Canadian subsidiary Cooper-Standard Automotive Canada Limited. Moody's also assigned a Ba2 rating to Cooper-Standard's incremental senior secured term loan which will be used to finance a portion of the announced acquisition of the Metzeler Automotive Profile Systems sealing systems operations from Automotive Sealing Systems S.A for $134 million. MAPS operations are located in Germany, Italy, Poland and Belgium, including joint venture interests in India and China. The financing for the transaction will consist of a USD$ equivalent 87 million incremental term loan, drawings under an amended revolving credit facility, and a $30 million equity infusion from Cooper-Standard's equity sponsors. In a related action Moody's raised the ratings of the existing senior secured bank credit facilities to Ba2 from Ba3, affirmed the B3 rating on the guaranteed senior unsecured notes, and affirmed the Caa1 rating on the guaranteed senior subordinated notes. The Speculative Grade Liquidity rating was raised to SGL-2. The ratings outlook was changed to stable from negative. The ratings reflect the expected neutral immediate impact on Cooper-Standard's credit metrics resulting from the acquisition's purchase price along with the equity infusion. The acquisition will further increase Cooper-Standard's geographic and customer diversity, and further strengthen the company's sealing systems capabilities. Synergies are expected to be nominal as a result of minimal overlapping operations and customers in the MAPS' operating region. The ratings also reflect the company's pro forma high leverage, moderate interest coverage, and acquisitive nature. Following the transaction Cooper-Standard will continue to have about 54% revenue exposure to the Big-3 and have to contend with agreed upon price concessions to OEM customers and high raw material cost. The stable outlook reflects Cooper-Standard's demonstrated ability to maintain credit metrics consistent with a B2 rating subsequent to the acquisition of ITT's Fluid Handling Systems Division in the first quarter of 2006 and the expectation that this ability will continue following the MAPS acquisition. The equity infusion from the company's sponsors mitigates the acquisition's impact on credit metrics. Cooper-Standard may experience additional industry pressure from negotiated price concessions, raw material costs, and market share challenges of its OEM customers. However, the company's ongoing restructuring efforts, and integration history, should lessen the impact of these challenges. The acquisition provides further business diversification both geographically and on a customer basis which are stabilizing factors. The SGL-2 Speculative Grade Liquidity rating reflects Moody's expectation that the company will maintain good liquidity over the next 12 months from internal cash generation, cash on hand, and availability under committed borrowing facilities. The amended bank credit facilities will eliminate the interest coverage financial covenant and amend the leverage covenant to a senior secured leverage test which will incorporate sufficient cushion over the next 12 months. The assigned rating is: -- Ba2 (LDG2, 21%) rating for the new add-on USD87MM equivalent senior secured term loan at Cooper-Standard The raised ratings are: -- senior secured credit agreement for borrowers Cooper-Standard and Cooper-Standard Canada to Ba2 (LGD2, 21%) from Ba3 (LDG2, 24%), consisting of: -- guaranteed senior secured revolving credit (US$ denominated) at Cooper-Standard, due December 2010; -- guaranteed senior secured revolving credit (US$ or CND$ denominated) at Cooper-Standard Canada, due December 2010; -- guaranteed senior secured term loan A (CND$ denominated) at Cooper-Standard Canada, due December 2010; -- guaranteed senior secured term loan B (US$ denominated) at Cooper-Standard Canada, maturing December 2011; -- guaranteed senior secured term loan C (US$ denominated) at Cooper-Standard, maturing December 2011; -- guaranteed senior secured term loan D (US$ and Euro denominated) at Cooper-Standard, maturing December 2011; -- Speculative Grade Liquidity rating of Cooper-Standard to SGL-2 from SGL-3 These ratings were affirmed: -- B3 (LGD4 60%) for the guaranteed senior unsecured notes maturing December 2012; -- Caa1(LGD5 86%) for the guaranteed senior subordinated unsecured notes maturing December 2014 -- B2 Corporate Family Rating -- B2 Probability of Default Rating The last rating action was on Sept. 22, 2006 when the LGD methodology was applied. For the LTM period ending March 31, 2007, Cooper-Standard's EBIT/interest expense was approximately 1.1x. Total Debt/EBITDA was approximately 4.8x. Cooper-Standard had positive free cash flow of $105 million for the LTM period ending March 31, 2007. At March 31, 2007 the company had $51 million of cash on its balance sheet and an additional $109 million of borrowing capacity under its revolving credit facility, net of letters of credit. Pro Forma for the MAPS transaction, Debt/EBITDA and EBIT/Interest levels as the accretive purchase price multiple and equity infusion is offset by increased debt and the additional pension liabilities assumed. Availability under the revolving credit is expected to decrease by about $23 million due to funding of the MAPS transaction. However, these amounts are expected to be repaid in the near term given the company free cash flow generation capacity. Future events that could improve Cooper-Standard's outlook or ratings include the realization of incremental new business awards from both domestic transplants and foreign OEMs that will serve to diversify and globalize the customer base, rising average content per vehicle, stabilized raw material costs resulting in increased margins, and permanent debt reduction at a faster pace than projected. Consideration for an improved outlook or rating upgrade could arise if any combination of these factors were to reduce leverage consistently under 4x or increase EBIT/interest coverage approaching 2x. Future events that could result in pressure on Cooper-Standard's outlook or ratings include material reductions in OEM production volumes that adversely affect the company's business outlook, a failure by the company to realize material lean manufacturing and restructuring savings sufficient to offset customer price concessions and other operating cost increases, rising raw materials prices which cannot be offset by customer surcharges and price increases, lost market share, insufficient availability under the revolving credit facility, additional announcements of a material acquisition, or plans for buybacks of common stock or a dividend payment to the common shareholders. Consideration for lower ratings could arise if any combination of these factors were to increase leverage over 5.5x, or lower existing EBIT/interest. Cooper-Standard Automotive, Inc., headquartered in Novi, Michigan, is a portfolio company of The Cypress Group and Goldman Sachs Capital Partners. It is a leading global manufacturer of fluid handling systems (about 53% of revenues); and body sealing, and noise, vibration, and harshness control systems (about 47%) for automotive vehicles. The company sells about 80% of its products directly to automotive original equipment manufacturers. Annual revenues currently about $2.2 billion. CREDIT SUISSE: Stable Performance Cues Fitch to Affirm Ratings -------------------------------------------------------------- Fitch affirms Credit Suisse Commercial Mortgage Trust, commercial mortgage pass-through certificates as: -- $78,516,961 class A-1 'AAA'; -- $235,000,000 class A-2 'AAA'; -- $336,916,000 class A-3 'AAA'; -- $155,000,000 class A-AB 'AAA'; -- $698,000,000 class A-4 'AAA'; -- $576,577,000 class A-1-A 'AAA'; -- $300,356,000 class A-M 'AAA'; -- $236,531,000 class A-J 'AAA'; -- $3,003,562,222 class A-X 'AAA'; -- $125,306,365 class A-Y 'AAA'; -- $18,772,000 class B 'AA+'; -- $37,545,000 class C 'AA'; -- $33,790,000 class D 'AA-'; -- $22,526,000 class E 'A+'; -- $33,790,000 class F 'A'; -- $30,036,000 class G 'A-'; -- $33,790,000 class H 'BBB+'; -- $30,036,000 class J 'BBB'; -- $37,544,000 class K 'BBB-'; -- $15,018,000 class L 'BB+'; -- $11,263,000 class M 'BB'; -- $11,264,000 class N 'BB-'; -- $3,754,000 class O 'B+'; -- $3,755,000 class P 'B'; -- $7,509,000 class Q 'B-'; -- $33,790,222 class S 'NR'; -- $1,870,000 class CCA 'NR'. Classes S and CCA are not rated by Fitch. The affirmations are due to the pool's stable performance since issuance. As of the July 2007 distribution report, the transaction has paid down 1% to $2.98 billion from $3.00 billion at issuance. There are no delinquent or specially serviced loans. Three loans maintain their investment grade credit assessments: 230 Park Avenue (9.4%), Saint Louis Galleria (5.9%) and NEI Portfolio (2.3%). 230 Park Avenue, also know as the Helmsley Building, is a 1.2 million square foot (sf), 34-story office tower located in midtown Manhattan in New York City. Occupancy as of April 2007 was 93.4%, up from issuance occupancy of 89%. Year-end 2006 servicer reported debt service coverage ratio on net operating income was 1.73 times compared to 1.45x at issuance The second largest credit assessed loan is the Saint Louis Galleria, a 1.2 million sf regional mall located in St. Louis, MO. Current major anchors are Dillards, Famous Barr and Lord & Taylor; major tenants are Mark Shale, Galleria 6 Cinemas, Limited and Express. YE2006 servicer reported DSCR on NOI was 1.99x compared to 1.91x at issuance. Additionally, YE2006 occupancy was 98%, stable since issuance. The NEI Portfolio is comprised of 26 office, retail and multifamily properties located primarily in California with some properties in Connecticut, Florida, Virginia, Arizona, Texas and Oregon. The note is a $70 million 10-year interest only loan that matures on December 1, 2015. CWABS ASSET: Moody's Downgrades Ratings on Six Certificates ----------------------------------------------------------- Moody's Investors Service downgraded six certificates of three deals issued by CWABS Asset-Backed Securities Trust. The actions are based on the analysis of the credit enhancement provided by subordination, overcollateralization and excess spread relative to the expected loss. The complete rating actions are: Issuer: CWABS Asset-Backed Securities Trust Downgrade: -- Series 2002-BC3, Class M-2, downgraded to Baa1 from A2; -- Series 2002-BC3, Class B-1, downgraded to B3 from Baa2; -- Series 2003-BC6, Cl. M-5, downgraded to Ba1 from Baa2; -- Series 2003-BC6, Class B, downgraded to Ba3 from Baa3; -- Series 2004-AB1, Class M-4, downgraded to Baa3 from A3; -- Series 2004-AB1, Class B, downgraded to B1 from Baa2. DAYTON SUPERIOR: S&P Withdraws Ratings on Planned Refinancing ------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'B' rating and '4' recovery rating on the proposed $195 million senior secured first- lien credit facility and its 'CCC+' rating and '6' recovery rating on the proposed $85 million second-lien facility of Dayton Superior Corp. (B/Stable/--). The ratings withdrawal on the proposed bank facilities reflects the postponement of the planned refinancing due to market conditions. As a result, the company's 10.75% senior second secured notes due 2008, 13% senior subordinated notes due 2009, and $130 million revolving credit facility will remain in place. Dayton Superior Corp., based in Dayton, Ohio, is a leading manufacturer of concrete construction products and forming and shoring equipment. Ratings list Dayton Superior Corp. Corporate credit B/Stable/-- Senior secured B Recov rtg 3 Subordinated CCC+ Ratings Withdrawn To From -- ---- $195 mil. Sr scrd first-lien cr facil (prpsd) NR B Recov rtg NR 4 $85 mil. second-lien facil (prpsd) NR CCC+ Recov rtg NR 6 DMW HOMESTEAD: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: D.M.W. Homestead, L.L.C. 7600 Boone Avenue, Suite 67 Brooklyn Park, MN 55428 Bankruptcy Case No.: 07-42411 Chapter 11 Petition Date: July 17, 2007 Court: District of Minnesota (Minneapolis) Judge: Gregory F. Kishel Debtor's Counsel: Joseph W. Dicker, Esq. 1406 West Lake Street, Suite 208 Minneapolis, MN 55408 Tel: (612) 827-5941 Fax: (612) 822-1873 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Dougherty Funding, L.L.C. value of $21,271,111 c/o Winthrop & Weinstine, collateral: $1 P.A. 225 South Sixth Street, Suite 3500 Minneapolis, MN 55402 P.B.A. Architects $74,032 2745 Everest Lane North Plymouth, MN 55447 D.M.W. Properties, Inc. value of $64,753 7600 Boone Avenue collateral: $1 Brooklyn Park, MN 55428 Skoknick & Associates $51,634 Centerpoint Energy $34,072 Felhaber Larson Fenlon $31,491 XCel Energy $18,421 Westwood Professional $18,073 Services D.M.W. Central Services, value of $14,772 Inc. collateral: $1 R.J. Ahman $10,843 Sun Newspapers $9,790 City of Brooklyn Park $7,839 Braun Printing & Design $4,818 Star Tribune $4,097 Aspen Lawn Service $2,676 Reach Sports Marketing Group $2,400 Fish and Labeau Signs $1,827 Fedex Kinkos $1,161 Lawns Plus $1,115 Sky Mark $1,045 EIMSKIP HOLDINGS: Moody's Assigns Corporate Family Rating at B3 --------------------------------------------------------------- Moody's Investors Service assigned a B3 corporate family rating to Eimskip Holdings, Inc. Moody's has also assigned a B1 rating to the company's senior secured revolving credit facility and 1st lien term loan, as well as a Caa1 rating to the company's proposed 2nd lien term loan. The ratings outlook is stable. Eimskip Holdings, Inc., the borrower of the proposed facilities, is a wholly-owned indirect subsidiary established by Hf. Eimskipafelag Islands, a leading Icelandic shipping company, to acquire Versacold Income Fund. Eimskip Holdings, Inc. offered CDN$12.25 in cash per trust unit for Versacold. The offer, which remains subject to shareholder and regulatory approval, is to be financed with the proposed subject facilities, CDN$230 million of unrated, subordinated mezzanine debt not rated, as well as equity/shareholder loan of about CDN$271 million. These ratings/assessments have been assigned to Eimskip Holdings, Inc.: -- Corporate family rating, assigned B3; -- Probability-of-default rating, assigned B3; -- CDN$50 million senior secured revolving credit facility, assigned B1 (LGD2, 29%); -- CDN$510 million senior secured 1st lien term loan, assigned B1 (LGD2, 29%); -- CDN$140 million 2nd lien term loan, assigned Caa1 (LGD5, 72%). The term loans will be funded primarily in U.S. dollars. The B3 Corporate Family Rating considers the company's high leverage and limited free cash flow generation. The ratings also consider the company's stable revenue stream, strong market position as a top 3 competitor in each market it serves, as well as limited customer concentrations and the growing trend of public refrigerated warehousing capacity. The ratings are contingent upon the receipt of final executed documentation consistent with that utilized in Moody's analysis. The ratings may deteriorate if free cash flow after capital expenditures to total debt was anticipated to turn negative on a projected annual basis or if the company's debt to EBITDA increases above 8.5 times. Although the company has limited customers that represent over 3% of its business, the loss of its larger customers could have negative ratings implications. The ratings and/or outlook could improve if the company's debt to EBITDA was to decline meaningfully below 7 times, and if free cash flow to total debt was to improve above 3% on a sustainable basis. Eimskip Holdings, Inc., through Versacold, is headquartered in Canada and is a global supplier of temperature controlled warehousing and logistic services to food producers, processors, as well as wholesale and retail distributors. Versacold maintains 72 facilities globally, with about 290 million cubic feet of temperature controlled capacity. Revenue for the 2006 year end was about CDN$693 million. ENCYSIVE PHARMA: Hires Morgan Stanley to Evaluate Strategic Action ------------------------------------------------------------------ Encysive Pharmaceuticals Inc. has retained the investment banking firm of Morgan Stanley to assist in evaluating its strategic alternatives to maximize stockholder value. The company does not expect to publicly disclose further information regarding the status of the review of strategic alternatives until a definitive transaction is entered into or the process is completed. There can be no assurances that any particular alternative will be pursued or that any transaction will occur, or on what terms, or as to the timing of any transaction. Headquartered in Houston, Texas, Encysive Pharmaceuticals Inc. (Nasdaq: ENCY) -- http://www.encysive.com/-- is a biopharmaceutical company engaged in the discovery, development and commercialization of novel, synthetic, small molecule compounds to address unmet medical needs. The company has successfully developed one FDA approved drug for the treatment of heparin-induced thrombocytopenia, Argatroban, which is licensed to and marketed by GSK. The company's lead drug candidate, Thelin(TM) is an endothelin receptor antagonist for the treatment of pulmonary arterial hypertension. Going Concern Doubt KPMG LLP, in Houston, expressed substantial doubt about Encysive Pharmaceuticals Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses from operations and net capital deficiency. ENRON CORP: Receives $149 Million in Litigation Settlement ---------------------------------------------------------- Enron Creditors Recovery Corp. -- formerly Enron Corp. -- received $149 million in settlement of litigation against certain of the defendants, including Lehman Commercial Paper Inc., The Northern Trust Company, Allstate Life Insurance Company and The Prudential Insurance Company of America, in connection with claims brought by Enron to recover payments made by Enron in connection with Enron's commercial paper before Enron's bankruptcy filing in 2001. The allocation of the payment among the defendants has not been disclosed. "We are pleased to have resolved our differences with the settling defendants and believe this to be a significant milestone in the recovery process and our efforts to provide maximum value to creditors," John J. Ray III, Enron's president and chairman of the board, said. "We are hopeful that we can reach resolution with the remaining defendants." This settlement resolves claims against only some of the parties who received Enron commercial paper payments. Enron is continuing to prosecute this lawsuit against other defendants who also received similar payments. Enron commenced adversary proceedings in November 2003 to recover commercial paper payments from approximately 180 defendants, so that such funds may be shared equally and ratably by all similarly situated creditors of its estate. The settlement remains subject to the approval of the United States Bankruptcy Court for the Southern District of New York. Enron is represented in this matter by Venable LLP and Togut, Segal & Segal, LLP. About Enron Corporation Based in Houston, Texas, Enron Corporation filed for chapter 11 protection on Dec. 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033) following controversy over accounting procedures, which caused Enron's stock price and credit rating to drop sharply. Judge Gonzalez confirmed the Company's Modified Fifth Amended Plan on July 15, 2004, and numerous appeals followed. The Debtors' confirmed chapter 11 Plan took effect on Nov. 17, 2004. Albert Togut, Esq., at Togut Segal & Segal LLP, Brian S. Rosen, Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P. Kessler, Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges LLP, Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert L. Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark C. Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP represent the Debtor. Jeffrey K. Milton, Esq., Luc A. Despins, Esq., Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at Milbank, Tweed, Hadley & McCloy LLP represents the Official Committee of Unsecured Creditors. GMAC COMMERCIAL: Fitch Affirms Junk Rating on $13.3MM Class FNB-6 ----------------------------------------------------------------- Fitch affirms GMAC Commercial Mortgage Securities, Inc. series 2006-C1 as: -- $30,335,030 class A-1 'AAA'; -- $12,462,785 class A-1D 'AAA'; -- $296,113,000 class A-1A 'AAA'; -- $166,000,000 class A-2 'AAA'; -- $98,000,000 class A-3 'AAA'; -- $576,071,000 class A-4 'AAA'; -- Interest only class XP 'AAA'; -- $169,740,000 class A-M 'AAA'; -- $114,575,000 class A-J 'AAA'; -- $36,070,000 class B 'AA'; -- $19,096,000 class C 'AA-'; -- $12,731,000 class D 'A+'; -- Interest only class XC 'AAA'; -- $16,974,000 class F 'A-'; -- $19,096,000 class G 'BBB+'; -- $19,096,000 class H 'BBB'; -- $23,339,000 class J 'BBB-'; -- $6,366,000 class K 'BB+'; -- $6,365,000 class L 'BB'; -- $8,487,000 class M 'BB-'; -- $2,122,000 class N 'B+'; -- $4,243,000 class O 'B'; -- $6,365,000 class P 'B-'; -- $23,340,243 class Q 'NR'; -- $5,100,000 class FNB-1 'BBB-'; -- $5,600,000 class FNB-2 'BB'; -- $2,100,000 class FNB-3 'BB-'; -- $4,500,000 class FNB-4 'B'; -- $2,400,000 class FNB-5 'B-'; -- $13,300,000 class FNB-6 'CCC'. The affirmations are due to the pool's stable performance since issuance. As of the July 2007 distribution report, the transaction has paid down 0.5% to $1.72 billion from $1.73 billion. There are no delinquent or specially serviced loans. Three loans maintain their investment grade credit assessments: DDR/Macquarie Mervyn's Portfolio (6.2%), First National Bank Center (2.8%), and City Square Office (1.6%). The DDR/Macquarie Mervyn's Portfolio is secured by 35 retail stores located in a combination of malls, shopping centers and free-standing locations across four states. Twenty-four sites are in California, five in Arizona, five in Nevada and one in Texas. The stores range in size from 59,000-90,000 square feet and occupancy remains at 100% since issuance. The First National Bank Center is a 547,785 sf class A office building located in San Diego, CA. Year-end 2006 occupancy was reported at 37.4% due to non-lease renewals of several tenants, one of which was the largest tenant. In early 2007, sponsorship changed and as of June 1, 2007, occupancy has improved to 73.8%. Fitch will closely monitor the performance of this loan. City Square Office is collateralized by three individual class A office towers in Phoenix, AZ totaling 716,075 sf. At issuance occupancy was 66.3% and a future funding tenant improvement/leasing commission reserve was established to help the buildings reach stabilized occupancy of 85%. Occupancy as of March 30, 2007 was 71.9%. GOODYEAR TIRE: Deadline to Convert 4% Senior Notes is September 28 ------------------------------------------------------------------ The Goodyear Tire & Rubber Company disclosed that its 4% Convertible Senior Notes due June 15, 2034, are now convertible at the option of the holders and will remain convertible through Sept. 28, 2007, the last business day of the current fiscal quarter. The notes became convertible because the last reported sale price of the company's common stock for at least 20 trading days during the 30 consecutive trading-day period ending on July 17, 2007 (the 11th trading day of the current fiscal quarter), was greater than 120 percent of the conversion price in effect on such day. The notes have been convertible in previous fiscal quarters. The company will deliver shares of its common stock or pay cash upon conversion of any notes surrendered on or prior to Sept. 28, 2007. If shares are delivered, cash will be paid in lieu of fractional shares only. Issued in June 2004, the notes are currently convertible at a rate of 83.0703 shares of common stock per $1,000 principal amount of notes, which is equal to a conversion price of $12.04 per share. There is approximately $350 million in aggregate principal amount of notes outstanding. If all outstanding notes are surrendered for conversion, the aggregate number of shares of common stock issued would be approximately 29 million. The notes could be convertible after Sept. 30, 2007, if the sale price condition described above is met in any future fiscal quarter or if any of the other conditions to conversion set forth in the indenture governing the notes are met. Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear Tire has marketing operations in almost every country around the world including Chile, Colombia, Guatemala, Jamaica and Peru in Latin America. Goodyear employs more than 80,000 people worldwide. * * * As reported in the Troubled Company Reporter on June 4, 2007, Standard & Poor's Ratings Services raised its ratings on Goodyear Tire & Rubber Co., including its corporate credit rating to 'BB-' from 'B+'. In addition, the ratings were removed from CreditWatch where they were placed with positive implications on May 10, 2007. Recovery ratings were not on CreditWatch. ENTERPRISE GP: Fitch Assigns Issuer Default Rating at BB- --------------------------------------------------------- Fitch Ratings has initiated rating coverage on Enterprise GP Holdings L.P. and EPCO Holdings, Inc. Both companies are in the process of refinancing interim credit facilities with these ratings being assigned with the transactions: Enterprise GP Holdings L.P. -- Issuer Default Rating 'BB-'; -- Proposed $200 million senior secured revolving credit facility maturing in 2012 'BB'; -- Proposed $1.0 billion senior secured term loan B maturing in 2014 'BB'. EPCO Holdings, Inc. -- Issuer Default Rating 'BB-'; -- Proposed $300 million senior secured revolving credit facility maturing in 2012 'BB'; -- Proposed $500 million senior secured bank term loan A maturing in 2012 'BB'; -- Proposed $900 million senior secured term loan B maturing in 2014 'BB'. The Rating Outlook on both companies is Stable. EPE is a publicly traded holding company with limited partnership and general partnership interests in Enterprise Products Partners L.P., TEPPCO Partners, L.P. and Energy Transfer Equity, L.P. ETE owns the GP and a significant percentage of the LP units of Energy Transfer Partners, L.P. EPD, TPP and ETP are three of the largest publicly traded master limited partnerships, each with a significant presence in the midstream energy sector. EPCO is privately held under the control of Dan Duncan and owns a significant LP interest in EPE, EPD and TPP. Through EPCO's direct or indirect ownership interests in the GP of each of the MLPs, Dan Duncan also has substantial influence over many aspects impacting EPD, EPE, TPP and ETE including strategic initiatives and cash distributions. Concerning the current transactions, EPE plans to use the proceeds from its proposed term loan B, borrowings under the proposed revolver and proceeds from its recently completed private equity offering of $750 million to permanently finance the May 7, 2007 acquisition of the interests in ETE as well as the acquisition from EPCO of the 2% GP and certain LP interests in TPP. Proceeds from EPCO's proposed term loans and borrowings under its proposed revolver are being used to refinance the company's previous credit facilities. The ratings of both EPE and EPCO reflect the diversity of cash flows being distributed to each entity from the underlying asset base, the benefits of receiving both LP and GP distributions, the proven track record of management in supporting the credit quality of the entities throughout the EPCO corporate structure and the continued strength of North American energy fundamentals. Offsetting factors include the lack of direct ownership of any of the operating assets by either EPE or EPCO, the significant growth plans at each of the MLPs, exposure to commodity prices and Fitch's expectations that further transactions are likely, adding to the complexity of the organizational structure. The assignment of the 'BB-' IDR and 'BB' security ratings at both EPE and EPCO reflect the structurally subordinated nature of the debt at both entities to the debt at the MLPs. Both Enterprise Products Operating L.P. and ETP have IDRs of 'BBB-' with ETP on Positive Outlook. While the cash flow streams of EPE and EPCO reflect differing interests in the various entities in the EPCO structure, most notably a higher dependence on GP distributions in EPE's cash flows versus EPCO's cash flows, the assignment of the same ratings for EPE and EPCO are based on the individual and consolidated analysis of each entity and the common control of these entities by Dan Duncan. As outlined above, debt at both EPE and EPCO will be serviced by cash flows from three sizable, diverse midstream MLPs, including the largest and third largest based on market capitalization. Through these interests, EPE and EPCO are exposed to every phase of the midstream energy business as well as a sizable propane distribution portfolio. The MLP ratings reflect the strength of each partnership's balance sheet as well as the size, quality and market position of the respective asset bases. Of additional benefit is that both EPE and EPCO ultimately receive both LP and GP distributions from the three MLPs. The GP interests also include incentive distribution rights which provide higher distribution splits than LP units as distribution levels increase. The GP distributions can be substantial but also exhibit higher volatility than the LP units and are, thus, more exposed to the impact of a downturn in market conditions. As such, an across the board distribution cut would disproportionately reduce a GP's incentive distributions making the cash flows derived from LP units the least risky. The proven track record of management in supporting the credit quality of each of the partnership is reflected in management's maintaining of modest leverage at each of the MLPs, reducing the GP incentive split to only 25% for both EPD and TPP (versus 50% at most other MLPs, including ETP) and the historic use of equity to finance a substantial portion of the growth at EPD in recent years. While recognizing the conservative incentive splits from the MLPs, the cash flows and debt levels at EPE and EPCO are expected to remain at appropriate levels for the ratings. Based on Fitch's analysis of several MLP holding company loans, as outlined in Fitch's methodology for MLP sponsor leverage, Fitch found that a debt to cash flow ratio in the mid- to low- 5.0 times range should not present an inordinate level of risk to the MLP. In the base case analysis, pro-forma debt to cash flows for both EPE and EPCO are expected to be approximately 4.0x. Of note is that EPCO is also expected to reduce debt on an on-going basis with excess cash. The ratings also recognize the favorable North American supply and demand energy fundamentals including the robust commodity price environment that have supported the cash flows at each of the MLPs and encouraged the significant oil and natural gas infrastructure development at each MLP as well. Of concern is that given the lack of operating assets at the EPE and EPCO levels, the debt of these entities is structurally subordinated to the debt at the MLPs, the debt at ETE and in the case of EPCO, to the debt at EPE for EPCO's portion of EPE's distributions. In addition, the collateral package in support of the new credit facilities includes only the equity interests held by each entity. Fitch, however, also notes the current strong valuations and implied recovery of this collateral. Of additional note is that Fitch expects significant increases in the LP and GP distributions from each MLP due to ongoing expansion projects that are primarily backed by long-term throughput contracts. As holding companies for midstream MLPs, both EPE and EPCO have exposure to energy commodity prices that can include potential demand reduction for midstream services, a decline in margins for NGLs under certain natural gas processing contracts as well to the weather dependent demand for propane. Each MLP has, however, also significantly reduced this exposure in recent years by entering into more fee based contracts for its services or through diversification into less volatile businesses (reference ETP's purchase of Transwestern Pipeline, an interstate natural gas pipeline, in late 2006). Fitch believes acquisitions and new project developments will continue to play an important part of the growth objectives of all of the affiliated entities providing constant demands for new financing and equity. As such, ongoing access to external financing will remain critical to funding these growth objectives. Although further equity issuances are not anticipated at TPP or EPD during this growth phase following the recent hybrid offerings, Fitch expects the balance sheet of each entity to remain in line with the current ratings as growth projects and the subsequent cash flows continue to come on stream. While leverage metrics are expected to remain in line with the recommended ratings, Fitch's overriding concern with debt obligations above the MLP level has been the adoption of more aggressive business strategies by the partnership sponsor. Specifically, the sponsor could aggressively pursue acquisitions at the MLP in order to grow the partnership's cash flow and achieve higher GP incentive distribution rights to support the holding company debt. One concern is that the MLP would over pay for acquisitions. Ownership risks, however, have been mitigated by management's track record at each of the MLPs, including the 25% incentive splits from EPD and TPP, conservative distribution coverage levels, modest debt levels at the MLPs and the manageable debt levels above the MLPs including the current financings. Additionally, higher interest rates may detract from the market valuation of MLPs affecting their equity prices and even the underlying asset valuations of pipelines and midstream energy assets as MLPs have among the lowest cost of capital giving them an advantage in buying or building energy related assets. Fitch notes the introduction by EPD and TPP of hybrids in the capital structure to help mitigate this risk. While the credit quality of EPE and EPCO will be supported by a diversity of cash flow streams, Fitch notes the increasing complexity of the organization including debt issuances at various levels throughout the organization. This risk also recognizes the growth expectations for each MLP including the likelihood for further transactions and the ongoing evolution of each of the companies. As such, the level of cash flows in support of the obligations of EPE and EPCO could become more uncertain. Fitch also notes the increasing use of term loans to finance transactions within the universe of MLP sponsors and by high yield MLPs. As such, concerns generally revolve around refinancing risk as these facilities mature given the significant quantity of refinancings expected to occur over the next several years. Other more general concerns include increasing levels of operating cash flows coming from hurricane prone regions, the construction risks for organic projects and the integration risks of new assets being added into the company's portfolio. Of note is that the Independence Hub offshore facility (80% owned by EPD) has been completed with the Independence Trail pipeline expected to be completed in the third quarter of 2007. EPCO HOLDINGS: Fitch Places Issuer Default Rating at BB- -------------------------------------------------------- Fitch Ratings has initiated rating coverage on Enterprise GP Holdings L.P. and EPCO Holdings, Inc. Both companies are in the process of refinancing interim credit facilities with these ratings being assigned with the transactions: Enterprise GP Holdings L.P. -- Issuer Default Rating 'BB-'; -- Proposed $200 million senior secured revolving credit facility maturing in 2012 'BB'; -- Proposed $1.0 billion senior secured term loan B maturing in 2014 'BB'. EPCO Holdings, Inc. -- Issuer Default Rating 'BB-'; -- Proposed $300 million senior secured revolving credit facility maturing in 2012 'BB'; -- Proposed $500 million senior secured bank term loan A maturing in 2012 'BB'; -- Proposed $900 million senior secured term loan B maturing in 2014 'BB'. The Rating Outlook on both companies is Stable. EPE is a publicly traded holding company with limited partnership and general partnership interests in Enterprise Products Partners L.P., TEPPCO Partners, L.P. and Energy Transfer Equity, L.P. ETE owns the GP and a significant percentage of the LP units of Energy Transfer Partners, L.P. EPD, TPP and ETP are three of the largest publicly traded master limited partnerships, each with a significant presence in the midstream energy sector. EPCO is privately held under the control of Dan Duncan and owns a significant LP interest in EPE, EPD and TPP. Through EPCO's direct or indirect ownership interests in the GP of each of the MLPs, Dan Duncan also has substantial influence over many aspects impacting EPD, EPE, TPP and ETE including strategic initiatives and cash distributions. Concerning the current transactions, EPE plans to use the proceeds from its proposed term loan B, borrowings under the proposed revolver and proceeds from its recently completed private equity offering of $750 million to permanently finance the May 7, 2007 acquisition of the interests in ETE as well as the acquisition from EPCO of the 2% GP and certain LP interests in TPP. Proceeds from EPCO's proposed term loans and borrowings under its proposed revolver are being used to refinance the company's previous credit facilities. The ratings of both EPE and EPCO reflect the diversity of cash flows being distributed to each entity from the underlying asset base, the benefits of receiving both LP and GP distributions, the proven track record of management in supporting the credit quality of the entities throughout the EPCO corporate structure and the continued strength of North American energy fundamentals. Offsetting factors include the lack of direct ownership of any of the operating assets by either EPE or EPCO, the significant growth plans at each of the MLPs, exposure to commodity prices and Fitch's expectations that further transactions are likely, adding to the complexity of the organizational structure. The assignment of the 'BB-' IDR and 'BB' security ratings at both EPE and EPCO reflect the structurally subordinated nature of the debt at both entities to the debt at the MLPs. Both Enterprise Products Operating L.P. and ETP have IDRs of 'BBB-' with ETP on Positive Outlook. While the cash flow streams of EPE and EPCO reflect differing interests in the various entities in the EPCO structure, most notably a higher dependence on GP distributions in EPE's cash flows versus EPCO's cash flows, the assignment of the same ratings for EPE and EPCO are based on the individual and consolidated analysis of each entity and the common control of these entities by Dan Duncan. As outlined above, debt at both EPE and EPCO will be serviced by cash flows from three sizable, diverse midstream MLPs, including the largest and third largest based on market capitalization. Through these interests, EPE and EPCO are exposed to every phase of the midstream energy business as well as a sizable propane distribution portfolio. The MLP ratings reflect the strength of each partnership's balance sheet as well as the size, quality and market position of the respective asset bases. Of additional benefit is that both EPE and EPCO ultimately receive both LP and GP distributions from the three MLPs. The GP interests also include incentive distribution rights which provide higher distribution splits than LP units as distribution levels increase. The GP distributions can be substantial but also exhibit higher volatility than the LP units and are, thus, more exposed to the impact of a downturn in market conditions. As such, an across the board distribution cut would disproportionately reduce a GP's incentive distributions making the cash flows derived from LP units the least risky. The proven track record of management in supporting the credit quality of each of the partnership is reflected in management's maintaining of modest leverage at each of the MLPs, reducing the GP incentive split to only 25% for both EPD and TPP (versus 50% at most other MLPs, including ETP) and the historic use of equity to finance a substantial portion of the growth at EPD in recent years. While recognizing the conservative incentive splits from the MLPs, the cash flows and debt levels at EPE and EPCO are expected to remain at appropriate levels for the ratings. Based on Fitch's analysis of several MLP holding company loans, as outlined in Fitch's methodology for MLP sponsor leverage, Fitch found that a debt to cash flow ratio in the mid- to low- 5.0 times range should not present an inordinate level of risk to the MLP. In the base case analysis, pro-forma debt to cash flows for both EPE and EPCO are expected to be approximately 4.0x. Of note is that EPCO is also expected to reduce debt on an on-going basis with excess cash. The ratings also recognize the favorable North American supply and demand energy fundamentals including the robust commodity price environment that have supported the cash flows at each of the MLPs and encouraged the significant oil and natural gas infrastructure development at each MLP as well. Of concern is that given the lack of operating assets at the EPE and EPCO levels, the debt of these entities is structurally subordinated to the debt at the MLPs, the debt at ETE and in the case of EPCO, to the debt at EPE for EPCO's portion of EPE's distributions. In addition, the collateral package in support of the new credit facilities includes only the equity interests held by each entity. Fitch, however, also notes the current strong valuations and implied recovery of this collateral. Of additional note is that Fitch expects significant increases in the LP and GP distributions from each MLP due to ongoing expansion projects that are primarily backed by long-term throughput contracts. As holding companies for midstream MLPs, both EPE and EPCO have exposure to energy commodity prices that can include potential demand reduction for midstream services, a decline in margins for NGLs under certain natural gas processing contracts as well to the weather dependent demand for propane. Each MLP has, however, also significantly reduced this exposure in recent years by entering into more fee based contracts for its services or through diversification into less volatile businesses (reference ETP's purchase of Transwestern Pipeline, an interstate natural gas pipeline, in late 2006). Fitch believes acquisitions and new project developments will continue to play an important part of the growth objectives of all of the affiliated entities providing constant demands for new financing and equity. As such, ongoing access to external financing will remain critical to funding these growth objectives. Although further equity issuances are not anticipated at TPP or EPD during this growth phase following the recent hybrid offerings, Fitch expects the balance sheet of each entity to remain in line with the current ratings as growth projects and the subsequent cash flows continue to come on stream. While leverage metrics are expected to remain in line with the recommended ratings, Fitch's overriding concern with debt obligations above the MLP level has been the adoption of more aggressive business strategies by the partnership sponsor. Specifically, the sponsor could aggressively pursue acquisitions at the MLP in order to grow the partnership's cash flow and achieve higher GP incentive distribution rights to support the holding company debt. One concern is that the MLP would over pay for acquisitions. Ownership risks, however, have been mitigated by management's track record at each of the MLPs, including the 25% incentive splits from EPD and TPP, conservative distribution coverage levels, modest debt levels at the MLPs and the manageable debt levels above the MLPs including the current financings. Additionally, higher interest rates may detract from the market valuation of MLPs affecting their equity prices and even the underlying asset valuations of pipelines and midstream energy assets as MLPs have among the lowest cost of capital giving them an advantage in buying or building energy related assets. Fitch notes the introduction by EPD and TPP of hybrids in the capital structure to help mitigate this risk. While the credit quality of EPE and EPCO will be supported by a diversity of cash flow streams, Fitch notes the increasing complexity of the organization including debt issuances at various levels throughout the organization. This risk also recognizes the growth expectations for each MLP including the likelihood for further transactions and the ongoing evolution of each of the companies. As such, the level of cash flows in support of the obligations of EPE and EPCO could become more uncertain. Fitch also notes the increasing use of term loans to finance transactions within the universe of MLP sponsors and by high yield MLPs. As such, concerns generally revolve around refinancing risk as these facilities mature given the significant quantity of refinancings expected to occur over the next several years. Other more general concerns include increasing levels of operating cash flows coming from hurricane prone regions, the construction risks for organic projects and the integration risks of new assets being added into the company's portfolio. Of note is that the Independence Hub offshore facility (80% owned by EPD) has been completed with the Independence Trail pipeline expected to be completed in the third quarter of 2007. GOLDMAN SACHS: S&P Preliminary Rates $16 Mil. Class E Notes at BB ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary ratings to Goldman Sachs Asset Management CLO PLC/ Goldman Sachs Asset Management CLO Corp.'s $368 million floating-rate notes. The preliminary ratings are based on information as of July 18, 2007. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect: -- The credit enhancement provided to each class of notes through the subordination of cash flows to more junior classes and preferred shares; -- The transaction's cash flow structure, which was subjected to various stresses requested by Standard & Poor's Ratings Services; and -- The legal structure of the transaction, including the bankruptcy remoteness of the issuer. Preliminary Ratings Assigned Goldman Sachs Asset Management CLO PLC/Goldman Sachs Asset Management CLO Corp. Class Rating Amount ----- ------ ------ A-1 AAA $257,400,000 A-2 AAA $28,600,000 B AA $27,000,000 C A $21,000,000 D BBB $18,000,000 E BB $16,000,000 Subordinated notes NR $32,000,000 NR - Not rated. HM RIVERGROUP: Harcourt Deal Cues S&P's Positive CreditWatch ------------------------------------------------------------ Standard & Poor's Ratings Services placed its ratings, including the 'B-' corporate credit ratings, on HM Rivergroup PLC and its subsidiary, Riverdeep Interactive Learning USA Inc., on CreditWatch with positive implications, based on HM Rivergroup's agreement to acquire the Harcourt educational publishing business from Reed Elsevier PLC for $3.7 billion in cash and $300 million in common stock. Total debt and preferred stock at March 31, 2007, totaled roughly $3.5 billion. "We estimate that the purchase will roughly double the size of HM Rivergroup and enhance the competitive position of its Houghton Mifflin unit," said Standard & Poor's credit analyst Hal F. Diamond. The combination of Houghton Mifflin, the fourth-largest U.S. elementary and secondary school publisher, with Harcourt, will rival Pearson PLC as the largest K-12 publisher in the U.S. An upgrade of the corporate credit rating would be limited to one notch, to 'B'. In completing the CreditWatch review, S&P will review the business and financial strategies of the combined entity, its long-term operating outlook, the nature of expected synergies, and any additional steps the company could take to reduce leverage. HUSKY ENERGY: Earns $721 Million in Second Quarter Ended June 30 ---------------------------------------------------------------- Husky Energy Inc. reported net earnings of $721 million in the second quarter of 2007 ended June 30, compared with $978 million in the same quarter of 2006. Net earnings for the second quarter of 2007 included a non-recurring benefit due to tax rate reductions of $30 million, compared with $328 million in the second quarter of 2006. Excluding the non-recurring tax benefits, the second quarter net earnings were $691 million for 2007 compared with $650 million for 2006. Cash flow from operations in the second quarter was $1.3 billion, a 14% increase compared with $1.1 billion in the same quarter of 2006. Sales and operating revenues, net of royalties, were $3.2 billion in the second quarter of 2007, up 4% compared with $3 billion in the second quarter of 2006. In the second quarter of 2007, total production averaged 379,100 barrels of oil equivalent per day, a 10% increase over 344,000 barrels of oil equivalent per day in the second quarter of 2006. Total crude oil and natural gas liquids production was 276,500 barrels per day and natural gas production was 615.7 million cubic feet per day. Half-Year 2007 Results For the first six months of 2007, Husky's net earnings were $1.4 billion, compared with $1.5 billion for the same period in 2006. Cash flow from operations for the first six months of 2007 was $2.6 billion, compared with $2.1 billion for the same period in 2006. Production in the first six months of 2007 was 384,600 barrels of oil equivalent per day, compared with 348,700 barrels of oil equivalent per day in the same period in 2006. Total crude oil and natural gas liquids production was 279,900 barrels per day, compared with 235,500 barrels per day during the first six months of 2006. Natural gas production was 627.8 million cubic feet per day, compared with 679 million cubic feet per day in the first six months of 2006. Liquidity At June 30, 2007, the company's working capital was $372 million compared with a deficiency of $495 million at Dec. 31, 2006. At June 30, 2007, the company had unused committed long and short- term borrowing credit facilities totaling $1.5 billion. A total of $71 million of our borrowing credit facilities were used in support of outstanding letters of credit and an additional $34 million of letters of credit were outstanding at June 30, 2007, and supported by dedicated letters of credit lines. The company currently has a shelf prospectus dated Sept. 21, 2006, that enables the company to offer up to $1 billion of debt securities in the United States until Oct. 21, 2008. Husky's financial position remains strong. At June 30, 2007, Husky's debt to cash flow ratio was 0.3 to 1 and debt to capital was 12%. As of June 30, 2007, the company posted total assets of $18 billion, total liabilities of $7.7 billion, and total stockholders' equity of $10.3 billion. Other Second Quarter Highlights Subsequent to the end of the second quarter, Husky completed the acquisition of the refinery in Lima, Ohio from Valero Energy Corporation. The purchase price was U.S. $1.9 billion, plus net working capital. Various options will be examined to enhance the value of this refinery including opportunities to integrate Husky's heavy oil and oil sands production. The Tucker Oil Sands project, which is expected to reach 30,000 barrels per day by the end of 2008, completed its initial warm-up phase and is ramping up SAGD production. The Sunrise Oil Sands project continues to progress on schedule with the completion of the front-end engineering design work planned for the fourth quarter of 2007. Production at the White Rose oil field in the second quarter reached about 136,000 barrels per day and averaged 90,300 barrels per day net to Husky. A seventh production well has been completed, bringing total reservoir capacity to 140,000 barrels per day. The field is currently undergoing a 16-day planned turnaround. Drilling of the C-30 delineation well in the western section of the White Rose field commenced in June and is continuing. At the Lloydminster Upgrader, a scheduled 40-day turnaround has been completed. The majority of the debottleneck projects were completed during the turnaround. Throughput capacity of 82,000 barrels per day will be realized in the fourth quarter of 2007 pending completion of remaining work items. Front-end engineering design for a potential expansion of the Upgrader continues and is expected to be completed in the fourth quarter of 2007. With regards to exploration, Husky was awarded an 87.5% interest in two exploration licences offshore Greenland. The two blocks cover an area of 21,067 square kilometres and are located about 120 kilometres offshore the west coast of Disko Island. Internationally, Husky has commenced a seismic program in the South China Sea over Block 29/26 that contains the Liwan natural gas discovery and the adjacent Block 29/06. The program will evaluate exploration leads for future drilling locations. Delineation of the Liwan discovery will commence in the second half of 2008 upon the arrival of the West Hercules deep water drilling rig. In Minnedosa, construction of the new ethanol production facility is currently 68% complete with commissioning expected in the fourth quarter of 2007. The company's current forecast for crude oil production in 2007 remains within our guidance range. Its current forecast for natural gas production in 2007 will likely be less than 670 million cubic feet per day as a result of the redeployment of capital, delayed natural gas well tie-ins and capital project delays. Comments "Husky achieved strong financial performance for the quarter despite the continuing weakness in the U.S. dollar," said Mr. John C.S. Lau, president & chief executive officer, Husky Energy Inc. "In July, the acquisition of the Lima refinery in Ohio, which represents a significant step in Husky's strategy of integrated heavy oil and bitumen development, will contribute positively to Husky's earnings and cash flow." About Husky Energy Headquartered in Calgary, Alberta, Husky Energy Inc. (TSE: HSE) -- http://www.huskyenergy.ca/-- is one of Canada's largest energy and energy-related companies. The company has almost $18 billion in assets and employs about 4,000 employees. * * * As of July 19, 2007, Husky Energy Inc.'s junior subordinated debt still carries Moody's Investors Services Ba1 rating. Moody's placed the rating on April 25, 2001, with a stable outlook. HUSKY ENERGY: Chief Financial Officer Geoff Barlow To Resign ------------------------------------------------------------ Husky Energy Inc. advises that Geoff Barlow, Vice President & Chief Financial Officer, is resigning from Husky to pursue other interests. Mr. Barlow will remain with Husky through Aug. 7, 2007, managing the completion of the second quarter interim statements and all related regulatory filings. "I would like to thank Geoff for his many years of dedication to the company and wish him success in his future endeavours," Mr. John C.S. Lau, President & Chief Executive Officer, Husky Energy Inc., said. About Husky Energy Headquartered in Calgary, Alberta, Husky Energy Inc. (TSE: HSE) -- http://www.huskyenergy.ca/-- is one of Canada's largest energy and energy-related companies. The company has almost $18 billion in assets and employs about 4,000 employees. * * * As of July 19, 2007, Husky Energy Inc.'s junior subordinated debt still carries Moody's Investors Services Ba1 rating. Moody's placed the rating on April 25, 2001, with a stable outlook. HUSKY ENERGY: Reports Quarterly Dividend of CDN$0.25 Per Share -------------------------------------------------------------- The Board of Directors of Husky Energy Inc. disclosed a quarterly dividend of CDN$0.25 per share on its common shares for the three- month period ended June 30, 2007. The dividend will be payable on Oct. 1, 2007 to shareholders of record at the close of business on Aug. 24, 2007. About Husky Energy Headquartered in Calgary, Alberta, Husky Energy Inc. (TSE: HSE) -- http://www.huskyenergy.ca/-- is one of Canada's largest energy and energy-related companies. The company has almost $18 billion in assets and employs about 4,000 employees. * * * As of July 19, 2007, Husky Energy Inc.'s junior subordinated debt still carries Moody's Investors Services Ba1 rating. Moody's placed the rating on April 25, 2001, with a stable outlook. ISLE OF CAPRI: Virginia McDowell Appointed as President and CEO --------------------------------------------------------------- Isle of Capri Casinos Inc. appointed Virginia McDowell as the company's president and chief operating officer, and elected James B. Perry as a member of the company's board of directors. Mr. Perry's appointment to the board is effective immediately, while Ms. McDowell is expected to assume her new position on July 30, 2007. Both appointments are subject to regulatory approval. Ms. McDowell's 26-year career in gaming has spanned a wide range of disciplines and areas of expertise, including marketing, operations, and technology. "With significant experience in both regional and destination markets, and her vast experience in virtually every aspect of our business, Virginia McDowell is exactly the right person to help lead our company as we focus on increasing the efficiency of our operations while continuing to stress financial discipline and targeted growth opportunities," Bernard Goldstein, chairman and chief executive officer, said. "Our board of directors unanimously chose Virginia for the position of president and chief operating officer because she knows our business, knows our customers and knows our markets," Mr. Goldstein continued. "Throughout her career she has consistently exhibited the leadership and vision needed to continue the growth and development of our company." Recently, Ms. McDowell served as executive vice president and chief information officer of Trump Entertainment Resorts Inc. Prior to joining Trump Entertainment Resorts, Ms. McDowell spent eight years at Argosy Gaming Company in Alton, Illinois, joining the company as vice president of sales and marketing, and ultimately holding the position of senior vice president of operations. She began her gaming career in Atlantic City, holding a variety of executive positions over a 16-year time period. "Isle of Capri has a strong base of existing properties, a sizeable database and a variety of exciting new projects that contribute to a growing brand portfolio," Ms. McDowell said. "I am very optimistic that by building on the company's unique "Isle Style" culture, focusing on our operating fundamentals, continuing to develop and implement new technology initiatives and creating exciting new entertainment experiences for our customers, we can improve the company's performance and strengthen the Isle of Capri Casinos' brands. I look forward to joining a very talented team." Mr. Perry, the gaming industry's executives, is recognized for engineering the turnaround of Argosy Gaming Company beginning in 1997. During Mr. Perry's tenure at Argosy, the company was considered an industry leader in EBITDA margins, and was recognized by several leading financial publications for financial stability, record growth and creation of shareholder value. With nearly 30 years of experience leading major gaming operations and companies in regional and destination markets, Mr. Perry recently served as the president, chief executive officer and a member of the board of directors of Trump Entertainment Resorts, Inc. where he oversaw the renovation and expansion of the company's three Atlantic City properties. Mr. Perry resigned from these positions effective July 1, 2007. "We are pleased to welcome these two respected and talented executives to the Isle of Capri Casinos team at this exciting time in our history, when we have recently brought several major projects online, and we look forward to the significant contributions that they will make to a company already recognized as a leading developer, owner and operator of regional branded gaming facilities," Mr. Goldstein commented." Ms. McDowell resides in St. Louis, Missouri with her husband and two children. She is active in community and charitable endeavors, currently serving as the founding board chair and president of Gilda's Club St. Louis, and serves as a member of the presidents advisory board of Temple University in Philadelphia, Pennsylvania, where she earned her undergraduate degree in communications. Mr. Perry resides in Santa Barbara, California with his wife and three children. About Isle of Capri Casinos Based in Biloxi, Missippi and founded in 1992, Isle of Capri Casinos Inc. (Nasdaq: ISLE) -- http://www.islecorp.com/-- owns and operates casinos in Biloxi, Lula and Natchez, Mississippi; Lake Charles, Louisiana; Bettendorf, Davenport and Marquette, Iowa; Kansas City and Boonville, Missouri and a casino and harness track in Pompano Beach, Florida. The company also operates and has a 57 percent ownership interest in two casinos in Black Hawk, Colorado. Isle of Capri Casinos' international gaming interests include a casino that it operates in Freeport, Grand Bahama and a two-thirds ownership interest in casinos in Dudley and Wolverhampton, England. * * * As reported in the Troubled Company Reporter on June 21, 2007, Standard & Poor's Ratings Services revised its rating outlook on Isle of Capri Casinos Inc. to negative from stable. Ratings on the company, including the 'BB-' corporate credit rating, were affirmed. JG CONSULTING: Case Summary & Four Largest Unsecured Creditors -------------------------------------------------------------- Debtor: J.G. Consulting, Inc. 8701 Mesa Madera Drive Las Vegas, NV 89148 Bankruptcy Case No.: 07-14354 Chapter 11 Petition Date: July 18, 2007 Court: District of Nevada (Las Vegas) Debtor's Counsel: Christopher Patrick Burke, Esq. 218 South Maryland Parkway Las Vegas, NV 89101 Tel: (702) 385-7987 Fax: (702) 385-7986 Total Assets: $1,107,050 Total Debts: $1,341,623 Debtor's List of its Four Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ First Franklin Loan Services 8701 Mesa Madera $260,000 P.O. Box 1838 Drive, Las Vegas, Secured: Pittsburgh, PA 15230-1838 NV 89148 $1,100,000 Senior Lien: $1,046,587 American Express Credit Card $27,000 P.O. Box 5207 Fort Lauderdale, FL 33310 Dell Business Credit Credit Card $4,500 P.O. Box 81577 Austin, TX 78708-1577 RMI Management, LLC 8701 Mesa Madera $3,536 530 Trade Center Drive Drive, Las Vegas, Secured: Suite 100 NV 89148 $1,100,000 Las Vegas, NV 89119 Senior Lien: $1,306,587 JULE HAZOU: Case Summary & 18 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Jule I. Hazou 18 Whittier Lane Oakland, NJ 07436-3323 Bankruptcy Case No.: 07-20039 Chapter 11 Petition Date: July 18, 2007 Court: District of New Jersey (Newark) Debtor's Counsel: Harvey I. Marcus, Esq. Park 80 West Plaza Two Suite 200, Pmb 2066 Saddle Brook, NJ 07663 Tel: (201) 384-2200 Fax: (201) 384-9221 Total Assets: $411,650 Total Debts: $1,137,192 Debtor's List of its 18 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Fleming Companies, Inc. Trade Debt $480,232 c/o Corporation Trust Company 820 Bear Tavern Road Trenton, NJ 08628-1021 Resnick Supermarket Trade Debt $155,700 Equipment Corp. c/o Anthony J. Graceffo, Esq. P.O. Box 893 Hackensack, NJ 07602 Consolidated Dairies Trade Debt $52,076 c/o Edward J. Bowen, Esq. 837 Kinderkamack Road River Edge, NJ 07661-2323 Michael B. & Karen M. Palmieri Trade Debt $27,721 Enterprises John's Import Foods Trade Debt $10,189 Daimler Chrysler Financial Trade Debt $7,159 Services America Portfolio Recoveries $5,858 Portfolio Recovery $5,395 Associates LLC Professional Recovery $4,361 System Chase $3,358 Zenith Acquisition $2,724 General Trading Co. Inc. Trade Debt $2,300 Capital One Bank $4,289 Pascack Press Trade Debt $1,585 Providian $1,448 Coca Cola Bottling Company Trade Debt $1,393 Macys/fdsb $1,104 Credit Collection Services $282 K2 INC: Commences Cash Tender Offer for 7-3/8% Senior Notes ----------------------------------------------------------- K2 Inc. commenced a cash tender offer to purchase any and all of its outstanding 7-3/8% senior notes due 2014 (CUSIP No. 482732AE4), and a related consent solicitation to amend the indenture pursuant to which the notes were issued. The tender offer and consent solicitation are being made in connection with the previously announced Agreement and plan of merger by and among Jarden Corporation, K2 Merger Sub Inc., a wholly-owned subsidiary of Jarden, and K2 Inc., pursuant to which Merger Sub will merge with and into K2, with K2 surviving the merger as a wholly-owned subsidiary of Jarden. The tender offer and consent solicitation are made upon the terms and conditions set forth in the related offer to purchase and consent solicitation statement dated July 18, 2007, and the related consent and letter of transmittal, and are conditioned upon, among other things, the consummation of the merger. The tender offer is scheduled to expire at 11:59 a.m., New York City time, on Tuesday, Aug. 14, 2007, unless amended, extended or earlier terminated. In order to be eligible to receive the total consideration for tendered notes, holders must validly tender and not validly withdraw their notes and validly deliver and not validly revoke their consents at or prior to 5 p.m., New York City time, on Tuesday, July 31, 2007, unless extended or amended. Tendered notes may not be validly withdrawn and delivered consents may not be validly revoked after the consent date. The "Total Consideration" to be paid for each Note validly tendered and not validly withdrawn at or prior to the consent date, subject to the terms and conditions set forth in the Offer to purchase, will be paid in cash and calculated using the yield of the 3.625% U.S. Treasury Note due July 15, 2009, as displayed on the Bloomberg Government Pricing Monitor Page BBT5. The total consideration per $1,000 principal amount of Notes will be calculated as set forth in the Offer to Purchase and determined in accordance with standard market practice, based on the bid-side price of the reference security on the price determination date plus a fixed spread of 50 basis points, minus the accrued and unpaid interest from the most recent interest payment date for the notes to, but not including, the scheduled initial payment date. The total consideration includes a consent payment of $30.00 per $1,000 principal amount of notes, which will be payable only in respect of notes purchased that are validly tendered and not validly withdrawn and consents that are validly delivered and not validly revoked on or prior to the consent date. Holders who validly tender their notes after the consent date and at or prior to the expiration date will not be eligible to receive the consent payment, and accordingly will only be eligible to receive an amount equal to the total consideration less the consent payment. Holders whose notes are accepted for payment will also be paid accrued and unpaid interest from the most recent interest payment date to, but not including, the applicable payment date for notes purchased in the tender offer. K2 expects that the "price determination date" will be 2 p.m., New York City time, on Tuesday, July 31, 2007, unless the tender offer and consent solicitation are extended or amended. In connection with the tender offer, K2 is soliciting consents to proposed amendments to the Indenture, which will eliminate substantially all restrictive covenants and certain events of default, delete the covenant relating to the merger and consolidation of K2 and certain of its subsidiaries and amend certain terms of the defeasance and discharge provisions. Holders may not validly tender their notes without also validly delivering their consents or validly deliver consents without also validly tendering their notes. For notes that have been validly tendered and not validly withdrawn prior to the consent date and that are accepted for payment, settlement will occur on the initial payment date which will be the first business day following the price determination date on which all conditions to the tender offer have been satisfied or waived, which is expected to be Wednesday, Aug. 8, 2007. For notes that have been validly tendered after the consent date and that are accepted for payment, settlement will occur on the final payment date, which will be promptly after the expiration date, which is expected to be Wednesday, Aug. 15, 2007, if the expiration date is not extended or terminated. The tender offer and consent solicitation are subject to the satisfaction of certain conditions, including receipt of consents sufficient to approve the proposed amendments to the indenture and the merger having occurred or occurring substantially concurrent with the initial payment date. The purpose of the tender offer is to acquire all outstanding notes. The purpose of the consent solicitation is to amend the Indenture to effect the proposed amendments, as described in the offer to purchase. K2 has retained Lehman Brothers Inc. to act as the dealer manager for the tender offer and solicitation agent for the consent solicitation. Holders with questions regarding the tender offer and the consent solicitation should contact Lehman Brothers Inc. at (800) 438-3242 (toll-free) or (212) 528-7581 (collect). Requests for documentation may be directed to Global Bondholder Services Corporation, who has been retained to act as the information agent for the tender offer and consent solicitation, which can be contacted at (212) 430-3774 (for banks and brokers only) or (866) 470-4200 (for all others toll-free). About Jarden Corp. Headquartered in Rye, New York, Jarden Corporation (NYSE: JAH) -- http://www.jarden.com/-- manufactures and distributes niche consumer products used in and around the home. The company's primary segments include Consumer Solutions, Branded Consumables, and Outdoor. About K2 Inc. Headquartered in Carlsbad, California, K2 Inc. (NYSE: KTO) -- http://www.k2inc.net/-- designs manufactures and distributes sporting equipment, apparel and accesories. Its portfolio of leading brands include Shakespeare(R), Penn(R), Pflueger(R), Sevylor(R) and Stearns(R) in the Marine and Outdoor segment; Rawlings(R), Worth(R) and Brass Eagle(R) in the Team Sports segment; K2(R), Volkl(R), Marker(R) and Ride(R) in the Action Sports segment; and Adio(R), Marmot(R) and Ex Officio(R) in the apparel and footwear segment. Adio(R), Atlas(R), Brass Eagle(R), Ex Officio(R), Hodgman(R), JT(R), K2(R), Marker(R), Marmot(R), Penn(R), Pflueger(R), Planet Earth(R), Rawlings(R), Ride(R), Sevylor(R), Shakespeare(R), Sospenders(R), Stearns(R), Tubbs(R), Volkl(R), Worth(R) and Worr Games(R) are trademarks or registered trademarks of K2 Inc. or its subsidiaries in the United States or other countries. * * * As reported in the Troubled Company Reporter on April 30, 2007, Moody's Investors Service placed the ratings of K2 Inc. under review for possible downgrade, but affirmed its SGL-3 speculative grade liquidity rating. The ratings placed under review for possible downgrade include the company's corporate family rating, Ba3; probability-of-default rating, Ba3; and $200 million senior unsecured notes due 2014, at B1 (LGD4, 61%). The rating action was prompted by Jarden Corporation's (B1 CFR, developing outlook) announcement that it has signed a definitive merger agreement to acquire K2. LB-UBS: Fitch Affirms BB- Rating on $2.4MM Class M Certificates --------------------------------------------------------------- Fitch Ratings has affirmed LB-UBS's commercial mortgage pass- through certificates, series 2005-C2, as: -- $451.3 million class A-2 at 'AAA'; -- $81 million class A-3 at 'AAA'; -- $304.7 million class A-4 at 'AAA'; -- $76 million class A-AB at 'AAA'; -- $470.7 million class A-5 at 'AAA'; -- $121.7 million class A-J at 'AAA'; -- $13.9 million class B at 'AA+'; -- $29.2 million class C at 'AA'; -- $38.9 million class D at 'AA-'; -- $41.4 million class E at 'A'; -- Interest-only class X-CP at 'AAA'; -- Interest-only class X-CL at 'AAA'; -- $17 million class F at 'A-'; -- $17 million class G at 'BBB+'; -- $17 million class H at 'BBB'; -- $29.2 million class J at 'BBB-'; -- $17 million class K at 'BB+'; -- $7.3 million class L at 'BB'; -- $2.4 million class M at 'BB-'. Class A-1 has been paid in full. Fitch does not rate the $4.9 million class N, $4.9 million class P, $4.9 million class Q and $21.9 million class S certificates. The rating affirmations reflect continued stable performance and scheduled amortization since Fitch's last rating action. As of the June 2007 remittance report, the pool's collateral balance has paid down 8.7% to $1.77 billion from $1.94 billion at issuance. There are currently four loans (1.8%) in special servicing. The largest specially serviced loan (0.8%) is a 20,483 sf office property located in Bloomfield Hills, MI and is 30 days delinquent. The special servicer is working with the borrower to bring the loan current. The second largest specially serviced loan (0.7%) is a retail property located in Meraux, LA. The loan suffered significant damage as a result of Hurricane Katrina. The special servicer is currently pursuing foreclosure and is working with the insurance adjuster to determine the estimated damages. Significant losses are possible which will be absorbed by the non-rated class S. Of the six credit assessed loans at issuance, five remain in the transaction. Fitch reviewed year-end 2006 operating statement analysis reports for 909 Third Avenue (12.3%), Macquarie DDR Portfolio II (8.9%), Summit Hotel Portfolio (4.7%), 895 Broadway (0.8%), and Hartz Fee Portfolio (0.2%). All five loans maintain their investment grade credit assessments based on stable performance since issuance. 909 Third Avenue is a 1.3 million square feet, 33-story office building located on the east side of Midtown Manhattan. As of YE 2006, occupancy improved to 100% from 97.6% at issuance. The Macquarie DDR Portfolio consists of 1.9 million sf of in-line space and 279,571 sf of ground lease space in eight anchored retail malls located in CT, MN, TN, WI and FL containing a total of 2.4 million sf. Primary anchors include Lowe's, Costco, Best Buy, Kohl's, Publix, Marshall's Megastore and Pick 'N Save. As of April 2007 occupancy remains stable at 99.5%. The loan has a pari passu floating rate component held outside the trust. MARICOPA COUNTY: Moody's Downgrades Series 2000 Bonds' Ratings -------------------------------------------------------------- Moody's Investors Service downgraded the Maricopa Industrial Development Authority Education Revenue Bonds Series 2000 A and B from Ba3 to B1 and removed the bonds from Watchlist for potential downgrade, affecting about $24 million in outstanding debt. The downgrade primarily reflects financial stress at the Omega Academy, the largest participant in the pool with about $7.6 million of par outstanding (34% of pool). Omega Academy filed for Chapter 11 bankruptcy protection on June 15, 2007. Omega Academy was sued by the same contractor whose effort to enforce a mechanics lien was deemed unenforceable in 2006. In June a summary judgment was awarded for the benefit of the plaintiff. The value of the judgment has yet to be finalized but a worst case value has been estimated at $4.1 million. Omega Academy subsequently filed for Chapter 11 bankruptcy protection. Moreover, whether or not the school will retain its charter is in question. The school is chartered by the state Board of Education which, through the state Department of Education, is in the process of reviewing Omega's charter reflecting three years of weak academic performance at one of the six schools run under the charter. The state Board of Education is expected to review these findings in late August. Possible outcomes include a consent agreement which may include, but is not limited to, a restructuring of the current sites and whereby Omega Academy would agree to performance benchmarks, or the issuance of an intent to revoke the charter, which would likely be followed by an appeals process. Moody's learned that the state's review process will also consider the school financial viability. The pool maintains reserves of $4.2 million despite the 2006 default of Arizona Montessori-whose assets were sold for $1.3 million as compared to $1.7 million in bonds outstanding. Reserves are $3.4 million below Omega's par value outstanding. Bondholders, however, benefit from a mortgage lien on the school's facilities. In the event of a payment default, debt service would be paid from liquid reserves until the school's assets could be sold. Sale proceeds, net of various fees, would then reimburse the liquid reserve fund to the extent it was drawn down. Remaining proceeds would be used to defease bonds, with any surplus amounts repaying any draw on the credit reserve fund. The magnitude of a potential draw on, and ultimate reimbursement to, reserve funds can not currently be estimated. Favorably, following any use of reserves, the remaining schools would continue to make debt service payments equal to 105% of debt service due monthly, with the 5% overage first being used to satisfy any deficiency in the liquid reserve or credit reserve funds. MICHAEL REDMAN: Case Summary & 19 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Michael Jay Redman, Jr. P.O. Box 180712 Utica, MI 48318 Bankruptcy Case No.: 07-53821 Chapter 11 Petition Date: July 17, 2007 Court: Eastern District of Michigan (Detroit) Judge: Steven W. Rhodes Debtor's Counsel: Michael A. Greiner, Esq. Financial Law Group, P.C. 29405 Hoover Warren, MI 49093 Tel: (586) 693-2000 Fax: (586) 693-2000 Estimated Assets: $100,000 to $1 Million Estimated Debts: $1 Million to $100 Million Debtor's List of its 19 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Cit Fin Serv Debtor's homestead $306,865 P.O. Box 624 Location: 14482 Marlton, NJ 08053 Faucet Lane, $832,000 Fortville, IN (Secured) $733,435 (Senior Lien) Lincoln Federal Saving 2004 Sea Ray 280 $132,918 1121 East Main Street Location: Plainfield, IN 46168 Indianapolis, IN $77,350 (Secured) Fifth Third Bank 2005 Mercedes $104,172 Fifth Third Center Benz, S55, Cincinnati, OH 45263 30,000 miles $62,225 Location: 14482 (Secured) Faucet Lane, Fortville, IN Monogram Bank North America Credit Card $83,141 Amex Credit Card $66,612 US Bank/na Nd Credit Card $32,885 Fia Csna Credit Card $27,213 Chase Credit Card $27,090 Internal Revenue Service Income taxes $27,000 First Merit 2005 Jeep Grand $22,455 Cherokee, 40,000 miles $11,615 Location: 14482 (Secured) Faucet Lane, Fortville, IN John Deere Credit Consumer Debt $22,000 Hamilton County Debtor's homestead $10,000 Location: 14482 Faucet Lane, $832,000 Fortville, IN (Secured) $1,040,300 (Senior Lien) Capital 1 Bank Credit Card $9,617 Sears/cbsd Credit Card $6,384 First National Bank Credit Card $4,950 MOSHE SHATZKI: Case Summary & Seven Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Moshe Morry Shatzki 1530 San Antonio Avenue Menlo Park, CA 94025 Bankruptcy Case No.: 07-30832 Chapter 11 Petition Date: July 3, 2007 Court: Northern District of California (San Francisco) Judge: Dennis Montali Debtor's Counsel: Ruth Elin Auerbach, Esq. 711 Van Ness Avenue, Suite 440 San Francisco, CA 94102 Tel: (415)673-0560 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's Seven Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Sierra Energy $1,700,000 c/o Bullivant Houser Bailey 1415 L Street, Suite 1000 Sacramento, CA 95814 Wholesale Fuels $298,000 2200 East Brundage Lane Bakersfield, CA 93307 I.P.C. $70,000 333 City Boulevard West, Suite 650 Orange, CA 92868 Granite State Insurance Co. $55,872 Coast Oil $29,000 Daniel Bronson $8,712 Margaret S. Elrod $1,328 MUELLER ENTERPRISES: Case Summary & 17 Largest Unsecured Creditors ------------------------------------------------------------------ Debtor: Mueller Enterprises, Inc. aka Virginia Glass Company 1150 River Road Charlottesville, VA 22901 Bankruptcy Case No.: 07-61326 Type of business: The Debtor manufactures and sells replacement windows, shower enclosures, sunrooms, porch enclosures, patio doors, greenhouses, canopies and awnings that are all made of glass. It also manufactures and sells auto glass and other glass and plastic products. See http://www.vaglass.net Chapter 11 Petition Date: July 18, 2007 Court: Western District of Virginia (Lynchburg) Judge: William E. Anderson Debtor's Counsel: Richard J. Stahl, Esq. Stahl, Forest & Zellow, P.C. 11350 Random Hills Road, Suite 700 Fairfax, VA 22030 Tel: (703) 691-0770 Total Assets: $555,898 Total Debts: $2,694,487 Debtor's 17 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ C.I.T. Small Business $1,071,000 Lending Corp. P.O. Box 1529 1 C.I.T. Drive Livingston, NJ 07039 Art & Nene Spivy $400,000 1129 Walker Road Great Falls, VA 22066 Moduline $162,421 P.O. Box 198131 Atlanta, GA 30384-8115 United States Aluminum $94,243 Extrusions, Inc. $88,631 Ford Credit $70,048 B.F. Rich $49,487 Vistawall $30,422 Neff Rental, Inc. $27,804 Garner Glass Products, $23,600 Inc. Pleasants Hardware $16,781 Alcoa/Alumax $16,605 EMBARQ/R.H. $15,564 A.F.G.D. $14,976 Old Castle $13,609 C.R. Lawrence $9,744 SaftiFirst $9,644 NATIONAL HEALTH: Notes Repayment Cues S&P to Withdraw Ratings ------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'BB' corporate credit and senior unsecured debt ratings on National Health Investors Inc. The ratings had been on CreditWatch with negative implications, where they were placed on Oct. 19, 2006. The rating withdrawals follow the repayment of National Health Investors' $100 million 7.3% senior unsecured notes and the company's desire to no longer maintain a corporate credit rating. National Health Investors repaid the unsecured bonds with accumulated cash, which totaled nearly $172 million at the end of March 2007. The prior ratings acknowledged National Health Investors' strong liquidity and stable portfolio. The company's financial profile was characterized by a very strong cash position, below-average leverage, strong debt protection measures, and very manageable debt maturities. Offsetting credit considerations included the smaller overall portfolio, meaningful tenant concentration, and an external advisory structure. National Health Investors is a Tennessee-based health care REIT, with equity and mortgage investments totaling $472 million in 138 health care facilities situated in 18 states. Ratings Withdrawn National Health Investors Inc. Rating ------ To From -- ----- Corporate credit NR/--/-- BB/Watch Neg/-- Senior unsecured debt NR BB/Watch Neg NCO GROUP: Launches Exchange Offers for $365 Million Senior Notes ----------------------------------------------------------------- NCO Group Inc. has commenced an offer to the holders of its Floating Rate Senior Notes due 2013 (CUSIP No. 144A: 628858 AE 2, ISIN No. 144A: US628858AE21) and its 11.875% Senior Subordinated Notes due 2014 (CUSIP No. 144A: 628858 AF 9, ISIN No. 144A: US628858AF95; CUSIP No. Reg. S: U6376M AC 5, ISIN No. Reg. S: USU6376MAC56) to exchange the Outstanding Notes for like principal amount of its $165 million principal amount Floating Rate Senior Notes due 2013 and its $200 million principal amount 11.875% Senior Subordinated Notes due 2014, which have been registered under the Securities Act of 1933, as amended. The Outstanding Notes were sold in a private placement by the company, which was completed in November 2006. The company was required to carry out the Exchange Offer under the terms of agreements entered into in the private placement. The Exchange Offer is scheduled to expire at 5:00 p.m., New York City time, on Aug. 15, 2007, unless extended by the company. The exchange agent for the exchange offer is The Bank of New York. Holders of the Outstanding Notes may obtain further information by calling The Bank of New York at 212-815-5098, or by facsimile at 212-298-1915. Headquartered in Horsham, Pennsylvania, NCO Group Inc. -- http://www.ncogroup.com/-- provides business process outsourcing services including accounts receivable management, customer relationship management and other services. NCO provides services through over 100 offices in the United States, Canada, the United Kingdom, Australia, India, the Philippines, the Caribbean and Panama. * * * NCO Group carries Moody's Investor Service's B2 long term corporate family rating and probability of default rating. The outlook is stable. The company also carries Standard & Poor's B+ long term foreign and local issuer credit rating. NORMAN MOULDEN: Case Summary & 18 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Norman R. Moulden fdba Moulden Construction P.O. Box 2906 Fayetteville, AR 72702 Bankruptcy Case No.: 07-72169 Chapter 11 Petition Date: July 15, 2007 Court: Western District of Arkansas (Fayetteville) Debtor's Counsel: Stanley V. Bond, Esq. P.O. Box 1893 Fayetteville, AR 72701-1893 Tel: (479) 444-0255 Fax: (479) 444-7141 Total Assets: $5,627,504 Total Debts: $12,550,510 Debtor's 18 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ A.N.B. Financial value of security: $1,948,151 P.O. Box 699 $2,019,750 Bentonville, AR 72712 Metropolitan National Bank value of security: $1,947,293 4033 North Shiloh Drive $2,000,107 Fayetteville, AR 72703 Metropolitan National Bank value of security: $525,000 425 West Capitol Avenue $1,500,000 Little Rock, AR 72201 Anderson Heating & $63,720 Airconditioning Hajoca Corp. $49,994 Pine Creek Lumber $43,940 Lowe's $26,954 A.P.A.C.-Arkansas $26,846 J.L. Bryson, Inc. value of security: $17,641 $1,500,000 Wholesale Overhead Door, $12,150 L.L.C. The Bank of Fayetteville, value of security: $8,000 N.A. $400,000 Lowell Quarry-The Rogers $4,509 Group E.N.C.O. Materials $3,559 VISA $3,294 Carl's Glass Shop $2,944 A.N.B. Financial $2,500 Springdale, AR 72762 Sod Store $2,500 Premium Financing $664 Specialists NORTH PHOENIX: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: North Phoenix Orthopedic Surgeons, Ltd. 9225 North 3rd Street, Suite 203 Phoenix, AZ 85020 Bankruptcy Case No.: 07-03404 Type of business: The Debtor provides arthroscopic surgery, joint replacement, knee surgery or replacement, non-surgical treatments, orthopedic surgery, reconstructive surgery and sports medicine services. Chapter 11 Petition Date: July 18, 2007 Court: District of Arizona (Phoenix) Judge: Sarah Sharer Curley Debtor's Counsel: Carolyn J. Johnsen, Esq. Jennings, Strouss & Salmon, P.L.C. 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. NYLSTAR INC: Can Use Bear Stearns' Cash Collateral -------------------------------------------------- The Honorable William E. Anderson of the U.S. Bankruptcy Court for the Western District of Virginia gave Nylstar Inc. permission to use Bear Stearns Investment Products Inc.'s cash collateral. Specifically, the Debtor intends to use Bear Stearns' cash collateral to pay certain prepetition operating expenses, including, among other things: a. payments to suppliers for goods ordered but not yet received before the Debtor's bankruptcy filing, to ensure an uninterrupted supply of inventory; and b. payments of prepetition salaries wages and benefits to and processing and payment of prepetition workers' compensation claims of the Debtor's employees. The Debtor tells the Court that it doest not have available sources of capital to carry on the operation of its business without the use of cash collateral. Additionally, the Debtor's ability to maintain business relationships with its customers and supplier is essential to its continued viability. As adequate protection, the Debtor granted Bear Stearns replacement first priority security interest and lien upon postpetition accounts and proceeds. The Debtor reminds the Court that Bear Stearns holds a majority of Nylstar Inc. and its subsidiary, Nylstar N.V.'s non-U.S. debt at present. Headquartered in Ridgeway, Virginia, Nylstar Inc. -- http://www.nylstar.com/-- manufactures nylon fibers. The company filed for Chapter 11 protection on July 5, 2007 (Bankr. W.D. Va. Case No.: 07-61227). Richard C. Maxwell, Esq., at Woods, Rogers & Hazlegrove, P.L.C., represents the Debtor in its restructuring efforts. No Official Committee of Unsecured Creditors has been appointed to date on this case. When the Debtor filed for bankruptcy, its listed estimated assets and debts between $50 million and $100 million. NYLSTAR INC: Section 341(a) Creditors Meeting Set on August 1 ------------------------------------------------------------- The U.S. Trustee for Region 4 will convene a hearing of creditors of Nylstar Inc., on Aug. 1, 2007, at 10:00 a.m., at 210 First Street, First Campbell Square, Room 120 in Roanoke, Virginia. 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 officer of the Debtors under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Headquartered in Ridgeway, Virginia, Nylstar Inc. -- http://www.nylstar.com/-- manufactures nylon fibers. The company filed for Chapter 11 protection on July 5, 2007 (Bankr. W.D. Va. Case No.: 07-61227). Richard C. Maxwell, Esq., at Woods, Rogers & Hazlegrove, P.L.C., represents the Debtor in its restructuring efforts. No Official Committee of Unsecured Creditors has been appointed to date on this case. When the Debtor filed for bankruptcy, its listed estimated assets and debts between $50 million and $100 million. OASYS MOBILE: Files for Chapter 11 Protection in Delaware --------------------------------------------------------- Oasys Mobile, Inc., said that to support its ongoing efforts to evolve its business model, it filed Wednesday a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code with the United States Bankruptcy Court for the District of Delaware. Oasys Mobile has taken this action after determining that Chapter 11 reorganization is in the best long-term interests of the Company, its employees, customers, creditors, business partners and other stakeholders. The timing of the filing was precipitated by the company's inability to pay Senior Secured Debentures held by LAP Summus Holdings, LLC, an affiliate of Associated Partners, LP and RHP Master Fund, Ltd., an affiliate of Rock Hill Partners, in the principal amount of $8 million which became due on June 30, 2007. Along with the Voluntary Petition, Oasys Mobile has filed a Plan of Reorganization that was negotiated with AP and RHP. Pursuant to the Plan, AP and RHP, the existing senior secured creditors, will exchange their secured claims for substantially all of the equity in Oasys Mobile upon its emergence from Chapter 11. Under the Plan, the current shares in the Company will be cancelled, and Oasys Mobile's stockholders and certain unsecured creditors will be given an interest in a trust, which will be funded by the reorganized Company in the event that certain milestones are reached after the conclusion of the case. The senior secured creditors have also agreed to provide the Company with a post-petition credit facility to fund the company's operations through confirmation of the Plan. The company, with the support of its senior secured creditors, expects to reorganize and exit Chapter 11 as soon as October 2007. Oasys Mobile, through a first day motion, will seek immediate authority to draw down on the post-petition credit facility for, among other things, operational needs. Oasys Mobile intends to use the post-petition liquidity to pay employee salaries and benefits, license royalties, post-petition invoices of suppliers and vendors, and to fund other general corporate purposes. Oasys Mobile expects to continue normal business operations today and throughout the reorganization process. Specifically, it expects to: -- Continue business as usual; -- Pay all royalties pursuant to the Company's existing license agreements (pre-petition and post-petition) and contractual obligations, including those of game developers and certain other service providers (pre-petition and post- petition) -- Pay vendors, suppliers and other business partners for goods and services provided or incurred post-petition; and, -- Continue to pay employee wages and salaries, offering the same medical, dental, life insurance, disability and other benefits and to accrue vacation and discretionary time without interruption. "After considering a wide range of alternatives, it became clear that this course of action was a necessary and responsible step toward preserving Oasys Mobile's viability as we address our financial challenges and work to secure our future. We are very enthused that AP and RHP have demonstrated their confidence in our business model and plan by agreeing to support the Company's business and financial needs going forward, and we are very excited about the future," said Doug Dyer, CEO of Oasys Mobile. "I am confident that with our tremendous talent pool, we will emerge from this process as a stronger, more competitive organization that is well-positioned to respond to and succeed in the ever-changing market place. With our current line-up of licenses, carrier relationships, and world-class developers, we are now looking forward to focusing fully on growing the business and reaching profitability." Ted Schell, Managing Partner of Associated Partners noted, "With their products, content partnerships, and distribution capabilities, we are confident in their business prospects. The management team of Oasys Mobile has done a great job of restructuring and restarting the company over the past several quarters, and we are confident in their ability to take the company to profitability and market leadership." In recent months, Oasys Mobile has undergone a significant transformation which has resulted in the highest revenue producing quarters in the company's history. Management has successfully re-focused Oasys Mobile towards being a game and application publisher and away from its previous direct-to-consumer portal strategy. As a result, operating expenses and subsequent losses have been reduced significantly, and product development efforts have increased along with revenue. Currently, Oasys Mobile has over a dozen new and franchise products in development for release during the remainder of 2007. The company filed a variety of "first day motions" to assume intellectual property licenses and game development agreements; to support its employees, vendors, customers and other stakeholders; to obtain interim financing authority and maintain existing cash management programs; to retain legal, financial and other professionals; to support the Company's reorganization case; and for other relief. About Associated Partners Associated Partners is a private investment partnership focusing on investments in communications, media, Internet and related technology companies. Associated is managed by Associated Partners GP, LP, whose principals have extensive experience investing in, advising and operating emerging and established companies in numerous industries, including wireless communications, wireless data and wireless location systems, internet, CATV, local telecommunications, power line communications, and radio. About Oasys Mobile Oasys Mobile, Inc. -- http://www.oasysmobileinc.com/-- (OTC BB:OYSM) is a developer, publisher and aggregator of premium mobile games, mobile media applications and services. Oasys Mobile content is distributed through an extensive Carrier network that accounts for 97% of all wireless subscribers in the US. Additionally, Oasys Mobile maintains multiple direct and indirect relationships with international carriers. Through its white- label services, Oasys Mobile also helps Carriers and other content companies expand their customer base by incorporating rich mobile content into their product and brand offerings. OASYS MOBILE: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Oasys Mobile, Inc., fka Summus, Inc. fka Summus, Inc. (USA) fka High Speed Net Solutions, Inc. 5400 Trinity Road, Suite 208 Raleigh, NC 27607 Bankruptcy Case No.: 07-10961 Type of Business: The Debtor is a developer, publisher and aggregator of premium mobile games, mobile media applications and services. See http://www.oasysmobileinc.com/ Chapter 11 Petition Date: July 18, 2007 Court: District of Delaware (Delaware) Debtor's Counsel: Kurt F. Gwynne Reed Smith LLP 1201 Market Street, 15th Floor Wilmington, DE 19801 Tel: (302) 778-7550 Fax: (302) 778-7575 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's List of its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Mattel, Inc. License Royalties $468,842 333 Continental Boulevard El Segundo, CA 90245 Provident Advertising License Royalties $168,382 and Marketing, Inc. 107 Hampton Road Clearwater, FL 33759 Sony BMG Music License Royalties $140,000 Entertainment 550 Madison Avenue New York, NY 10022-3211 Time, Inc. License Royalties $125,000 Phil Hellmuth License Royalties $111,252 Productions LLC Pulse License Royalties $108,467 Entertainment, Inc. 2ThumbZ License Royalties $100,530 Entertainment, Inc. PlusStation, LLC Development $77,500 Fuji Photo Film License Royalties $69,768 USA, Inc. Zingy License Royalties $64,988 ZIO Entertainment, Inc. License Royalties $58,058 Mobile Streams License Royalties $53,830 The Orchard License Royalties $51,928 Andrew Fox Severance $49,789 Blue Heat Games, Inc. Development $39,500 Milestone Payment The Concept Studio Marketing Services $36,990 Dow Jones & Company, Inc. License Royalties $34,841 SmartPhones Technologies License Royalties $31,906 VACO Raleigh, LLC Recruiting Services $31,100 9 Squared Inc. License Royalties $27,760 OMNITECH CONSULTANT: Discloses Resignation of Three Officers ------------------------------------------------------------ The board of directors of Omnitech Consultant Group Inc., aka Groupe Conseil Omnitech Inc., disclosed the resignations of: * Mrs. Madeleine Chenette for lack of time to devote to GCO due to her business activities; * Mr. Andre Thompson for health reasons; and * Mr. Francois Gilbert. The board of directors wishes to thank them for their collaboration of the past weeks. GCO's directors and officers are presently the object of a Management CTO prohibiting them to trade GCO securities. A request to this effect has been filed to the regulatory authorities when it became apparent that GCO would not be able to file its year end audited financial statements, subsequent quarterly unaudited financial statements and their related. About Omnitech Consultant Omnitech Consultant Group Inc., aka Groupe Conseil Omnitech Inc. (TSX VENTURE: GCO), offers solutions as a one-stop-shop in engineering, information technology and systems maintenance. GCO integrates new technologies or optimizes existing systems by applying cutting-edge expertise currently used in the best practices. GCO and its subsidiaries filed for creditor protection in accordance with the provisions of the Bankruptcy and Insolvency Act on Oct. 31, 2006. PricewaterhouseCoopers Inc. has been retained as trustee. PARAMOUNT RESOURCES: S&P Lifts Corp. Credit Rating to B from CCC+ ----------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Calgary, Alberta-based Paramount Resources Ltd. to 'B' from 'CCC+', and its senior unsecured debt rating to 'B' from 'CCC'. The move followed the sales of both its shares in North American Oil Sands Corp., and its Surmont property, as well as the prepayment of its $150 million term loan B. At the same time, S&P removed all ratings from CreditWatch with positive implications, where they were placed April 27, 2007. The outlook is stable. "With the completion of the sales of its investment in NAOSC and its Surmont property, Paramount has significantly reduced its debt levels, which means a marked improvement to the company's financial risk profile," said Standard & Poor's credit analyst Jamie Koutsoukis. "Furthermore, in addition to the improvement in its capital structure, Paramount's liquidity and financial flexibility have improved dramatically, as a result of its large cash balance and full availability on its bank facilities," Ms. Koutsoukis added. Paramount is a regional exploration and production company operating primarily in the Western Canadian Sedimentary Basin, specifically in Alberta, British Columbia, and the Northwest Territories. The company's reserves and production mix are weighted toward natural gas, which accounts for more than 80% of the company's gross proven reserves and approximately 80% of its production. Paramount also owns and operates production facilities and processing infrastructure in its four core operating regions. The stable outlook reflects Standard & Poor's expectation that Paramount will use its strengthened balance sheet and enhanced liquidity to increase production and operating cash flow, and to strengthen its production economics, without any material debt- financed acquisitions or divestiture of producing assets. Although the company should outspend its internally generated cash flow as it works to increase its production and reserves, debt levels should not rise. A further positive rating action would depend on Paramount successfully demonstrating internal reserve and production growth while maintaining and improving a stable, break-even cost profile. A negative rating action, which is unlikely in the near term, could occur if the company cannot increase production and reserves, and suffers a significant deterioration in its financial profile. PAUL SCHWENDENER: Wants Access to LaSalle's Cash Collateral ----------------------------------------------------------- Paul H. Schwendener Inc. and its debtor-affiliates ask the United States Bankruptcy Court for the Northern District of Illinois for authority to use LaSalle Bank N.A.'s cash collateral. The Debtors intend to use LaSalle's cash collateral to pay ongoing operating expenses incurred in the ordinary course of its business, including, receiver's fee and expenses, maintenance, taxes and insurance. Allen J. Guon, Esq., at Shaw Gussis Fishman Glantz Wolfson & Towbin LLC, says that without the ability to use cash collateral to pay for postpetition operating expenses, including the maintenance of the property, the Debtors will be unable to: i. collect rents from the Property tenants; and ii. obtain unsecured credit in the ordinary course of business. As adequate protection for LaSalle's purported security interest, the Debtor proposes to: a. grant LaSalle a postpetition lien on the Debtors' rents and leases to the same extent, and in the same priority as LaSalle's prepetition lien; b. maintaing current insurance coverage in full force and effect on the property and any other of the Debtors' assets subject to a lien of LaSalle; c. provide LaSalle reasonable access to the property for the purpose of inspecting its collateral and reasonable access to the Debtors' books and records; and d. seek authority for the entry of an order excusing the receiver's compliance with the turnover provisions of 11 U.S.C. 543(a). The Court will convene a hearing on July 25, 2007 at 10:00 a.m., to consider the Debtors' request. Headquartered in Westmont, Illinois, Paul H. Schwendener Inc. -- http://www.schwendener.com/-- provides construction services and consultancy. The company and four affiliates filed for Chapter 11 protection on July 8, 2007 (Bankr. N.D. Ill. Case No. 07-12145). Allen J. Guon, Esq., Mark L. Radtke, Esq., and Steven B. Towbin, Esq., at Shaw, Gussis, Fishman, Glantz, Wolfson & Tow, represent the Debtors in their restructuring efforts. No Official Committee of Unsecured Creditors has been appointed to date on this case. When the Debtors filed for bankruptcy, its listed estimated assets and debts between $1 million to $100 million. PAUL SCHWENDENER: Section 341(a) Creditors Meeting Set on Aug. 22 ----------------------------------------------------------------- The U.S. Trustee for Region 11 will convene a hearing of creditors of Paul H. Schwendener Inc. and its debtor-affiliates, on Aug. 22, 2007, at 1:30 p.m., at 227 West Monroe Street, Room 3330 in Chicago, Illinois. 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 officer of the Debtors under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Headquartered in Westmont, Illinois, Paul H. Schwendener Inc. -- http://www.schwendener.com/-- provides construction services and consultancy. The company and four affiliates filed for Chapter 11 protection on July 8, 2007 (Bankr. N.D. Ill. Case No. 07-12145). Allen J. Guon, Esq., Mark L. Radtke, Esq., and Steven B. Towbin, Esq., at Shaw, Gussis, Fishman, Glantz, Wolfson & Tow, represent the Debtors in their restructuring efforts. No Official Committee of Unsecured Creditors has been appointed to date on this case. When the Debtors filed for bankruptcy, its listed estimated assets and debts between $1 million to $100 million. PIERRE FOODS: Posts $4.3 Million Net Loss in Quarter Ended June 2 ----------------------------------------------------------------- Pierre Foods Inc. reported net loss for the first quarter of fiscal 2008 ended June 2, was $4.3 million, compared with a net income of $680,000 for the first quarter of fiscal 2007. Net revenues of $157.5 million for its first quarter ended June 2, 2007, versus $105.8 million for its first quarter ended June 3, 2006, an increase of 48.9%. The increase in net revenues during first quarter fiscal 2008 is primarily due to sales associated with the company's acquisitions of Zartic and Clovervale in the prior year, and growth in most of the Company's end-market segments, offset by decreased sales to two large National Accounts restaurant chain customers, a change in sales mix across most of the company's end markets, and net price decreases to customers. The company incurred certain costs during first quarter fiscal 2008 in connection with the integration of Zartic that are primarily one-time in nature. These costs included storage and freight expenses, about $500,000, associated with the movement of inventory to a new warehouse and acquisition related expenses, about $400,000, associated with personnel reduction. The company had capital expenditures totaling $2.5 million and $1.9 million for first quarter fiscal 2008 and first quarter fiscal 2007, respectively. Balance Sheet and Liquidity As of June 2, 2007, the company had net cash and cash equivalents on hand of $200,000 outstanding borrowings under its revolving credit facility of $9.7 million and borrowing availability of about $24 million. Also as of June 2, 2007, the company had borrowings under its term loan of $227 million and $125 million of the 9.875% senior notes outstanding that were issued in conjunction with the acquisition of Pierre. As of June 2, 2007, the company is in compliance with all financial covenants. At June 2, 2007, the company had $603.9 million in total assets, $458.5 million in total liabilities, resulting in $145.4 million in total stockholders' equity. A full-text copy of the company's first quarter 2008 report is available for free at http://ResearchArchives.com/t/s?21ad About Pierre Foods Based in Cincinnati, Ohio, Pierre Foods, Inc. -- http://www.pierrefoods.com/-- manufactures and markets high- quality, differentiated processed food solutions. Pierre produces a complete line of fully cooked beef, pork, poultry, bakery goods and convenience sandwiches. The company offers comprehensive food solutions to its customers, including proprietary product development, special ingredients and recipes, as well as custom packaging and marketing programs. * * * Pierre Foods Inc. carries Moody's Investors Service' B1 corporate family rating and Ba3 bank credit facilities rating. The company's $125 million senior subordinated notes, maturing 2012 also carries Moody's B3 rating. The rating outlook is stable. PLAINS EXPLORATION: S&P Affirms BB Corporate Credit Rating ---------------------------------------------------------- Standard & Poor's Ratings Services affirmed the 'BB' corporate credit rating on independent oil and gas company Plains Exploration & Production Co. The outlook remains stable. At the same time, S&P revised the CreditWatch status on the Pogo Producing Co. 'BB' ratings to negative from developing. These rating actions follow yesterday's announcement that PXP has entered into a definitive agreement to acquire Pogo for $3.6 billion. Under the terms of the agreement, Pogo shareholders will receive 0.682 shares of PXP common stock and $24.88 of cash per Pogo share. The transaction remains subject to shareholder approval. Pro forma its funding of the Pogo acquisition, Houston, Texas- based PXP should have $2.8 billion to $3 billion in total debt. "The affirmation of the PXP ratings reflects the significant (55%- 60%) equity component of the proposed transaction financing," said Standard & Poor's credit analyst Jeffrey Morrison. "In addition, PXP's business risk profile should benefit from additional onshore reserve scale and added basin diversity." Pro forma the acquisition, PXP will have 635 million barrels of oil equivalent of proved reserves. The Pogo properties are located in the Permian Basin, the Texas Panhandle, the Gulf Coast, the Madden Field in Wyoming, and the San Juan Basin. "The CreditWatch listing on Pogo reflects the potential for Standard & Poor's to lower the ratings in the event that the PXP acquisition does not proceed," Mr. Morrison said. Following the sale of its Canadian assets, Pogo has a greatly reduced reserve and production base, and uncertainty remains regarding the company's strategic options in the event that the PXP deal does not proceed. At the close of the PXP transaction, S&P expect to equalize the ratings on Pogo's remaining debt with those on PXP. RICHARD FLETCHER: Case Summary & Nine Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Richard Willard Fletcher P.O. Box 650 Littlerock, CA 93543 Bankruptcy Case No.: 07-12182 Chapter 11 Petition Date: June 28, 2007 Court: Central District Of California Judge: Maureen Tighe Debtor's Counsel: Steven R. Fox, Esq. 17835 Ventura Boulevard, Suite 306 Encino, CA 91316 Tel: (818) 774-3545 Fax: (818) 774-3707 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's Nine Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ A.S.C. real estate $3,421,183 P.O. Box 10388 Des Moines, IA 50306-0388 E.M.C. Mortgage conventional real $297,106 800 State Highway 121 By estate mortgage Lewisville, TX 75067 Wells Fargo Bank, N.A. home equity line $110,000 7000 Vista Drive of credit West Des Moines, IA 50266 First National Bank purchases $12,736 American Express $13,000 N.C.O. Financial Systems, credit card $13,000 A.M.E.X. F.N.B. Omaha credit card $12,998 Lockheed Federal Credit credit card $5,761 Union $6,000 Citibank credit card $4,073 SALOMON BROS: S&P Affirms BB Rating on 1998-AQ1 Class B-2 Certs. ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on the class M-1 and M-2 mortgage pass-through certificates from Salomon Bros. Mortgage Securities VII Inc.'s series 2001-2. At the same time, S&P affirmed its 'BB' rating on class B-2 from series 1998-AQ1 and removed it from CreditWatch, where it was placed with negative implications on May 24, 2007. Concurrently, S&P affirmed its ratings on 73 classes from 24 Salomon Bros. Mortgage Securities VII Inc. transactions. The raised ratings reflect: -- An increase in the actual credit support percentages to more than 3x the credit support associated with the higher rating levels; -- A steadying in the delinquency pipeline, which has reduced the potential stress on credit support; -- Significant home price appreciation based on seasoning of the transactions; and -- The shifting interest feature of the transactions, which has led to higher excess spread. As of the June 25, 2007, distribution date, the pool had paid down to less than 22% of its original issuance amount. Total delinquencies were 56.70% of the current pool balance, while cumulative realized losses were 4.04% of the original pool balance. The removal of class B-2 (series 1998-AQ1) from CreditWatch negative stems from a decrease in monthly losses and an increase in credit enhancement since the rating was placed on CreditWatch in May. Total delinquencies were 13.36% of the current pool balance, while cumulative realized losses totaled 3.77% of the original pool balance. The affirmations are based on actual and projected credit support percentages that are sufficient to maintain the current ratings. Additionally, four of the transactions have paid down completely. Total delinquencies for these transactions range from 0.00% to 31.35% of the current pool balances. Cumulative realized losses range from 0.00% to 5.25% of the original pool balances. The collateral supporting the transactions with AQ, LB, and NC suffixes consists of subprime and reperforming mortgage loans, while the collateral for series 2001-2 consists of nonperforming mortgage loans. The collateral for the remaining transactions consists of prime jumbo mortgage loans. Subordination provides credit support for the prime jumbo transactions; the remaining transactions utilize overcollateralization, excess spread, and subordination. Ratings Raised Salomon Bros. Mortgage Securities VII Inc. Mortgage pass-through certificates Rating ------ Series Class To From ------ ----- -- ----- 2001-2 M-1 AAA AA 2001-2 M-2 AA A Rating Affirmed and Removed from Creditwatch Negative Salomon Bros. Mortgage Securities VII Inc. Mortgage pass-through certificates Rating ------ Series Class To From ------ ----- -- ---- 1998-AQ1 B-2 BB BB/Watch Neg Ratings Affirmed Salomon Bros. Mortgage Securities VII Inc. Mortgage pass-through certificates Series Class Rating ------ ----- ------ 1992-6 A-1, A-2 AAA 1992-6 M AA+ 1993-1 G, H-Z, PO, XS, M AAA 1993-7 A AA+ 1993-9 A-2, B-1, B-2 AAA 1993-9 B-3 AA 1993-9 B-4 BBB+ 1993-9 B-5 B 1994-1 B-1, B-2 AAA 1994-5 B-1, B-2 AAA 1994-11 A, IO, PO AAA 1994-19 A AAA 1994-20 A AAA 1994-4A A AAA 1996-5 A AAA 1997-LB6 A-5, A-6, XS, B-1, B-2 AAA 1997-LB6 B-3 BBB 1997-NC5 M-1 AAA 1998-AQ1 A-5, A-6, A-7, XS-N, XS-T AAA 1998-AQ1 B-1 AA 1998-NC1 A, M-1 AAA 1998-NC3 A-5, A-6 AAA 1998-NC3 M-1 AA 1998-NC3 M-2 A 1998-NC4 M-2 A 1998-NC7 A-6, A-7 AAA 1999-2 A1-4, A1-6, A2, IO, PO AAA 2000-1 A-1, A-2, IO, PO, B-1, B-2, B-3 AAA 2000-UP1 A-1, A-2 AAA 2001-2 M-3 BBB 2003-1 A-1, A-2, S, IO, PO AAA 2003-1 B-1 A 2003-UP1 A, M-1 AAA 2003-UP1 M-2 AA 2003-UP1 M-3 A+ SANITEC INDUSTRIES: Section 341(a) Meeting Scheduled on August 14 ----------------------------------------------------------------- The U.S. Trustee for Region 16 will convene a hearing of creditors of Sanitec Industries Inc., on Aug. 14, 2007, at 9:00 a.m., at 21051 Warner Center Lane, Room 105 in Woodland, California. 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 officer of the Debtors under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Headquartered in Sun Valley, California, Sanitec Industries Inc. -- http://www.sanitecindustries.com/-- is the global patent holder for the Sanitec(R) Microwave Healthcare Waste Disinfection System(TM). The company's facilities that are operating both at hospitals and at regional waste treatment centers in the United States and in six foreign countries (Brazil, England, Canada, Japan, Korea, and Saudi Arabia), process infectious medical waste. The company filed for Chapter 11 protection on July 5, 2007 (Bankr. C.D. Calif. Case No. 07-12307). Jeffry A. Davis, Esq., in San Diego, California, represents the Debtor in its restructuring efforts. No Official Committee of Unsecured Creditors has been appointed to date in this case. When the Debtor filed for bankruptcy, its listed estimated assets and debts between $1 million and $100 million. SARFRAZ MALIK: Case Summary & 11 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Sarfraz Ahmed Malik 12211 Garrison Forest Road Owings Mills, MD 21117 Bankruptcy Case No.: 07-15813 Chapter 11 Petition Date: June 26, 2007 Court: District of Maryland (Baltimore) Judge: Robert A. Gordon Debtor's Counsel: Adam M. Freiman, Esq. Sirody, Freiman & Feldman,P.C. 1777 Reisterstown Road, Suite 360 E Baltimore, MD 21208 Tel: (410) 415-0445 Fax: (410) 415-0744 Estimated Assets: Less than $10,000 Estimated Debts: $1 Million to $100 Million Debtor's 11 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Central Mortgage Co. $1,023,620 801 John Barrow Suite 1 Little Rock, AR 72205 Ocwen Federal $191,456 12650 Ingenuity Drive Attention: Research Dept. Orlando, FL 32826 Wachovia credit line $16,122 Bankcard Services P.O. Box 15153 Wilmington, DE 19886-5153 overdrawn account $1,400 State Farm Bank collection account $9,300 George A. Falter business debt $6,783 Bank of America credit card $5,450 purchases Washington Mutual credit card $5,000 purchases B.G.&E. utility $4,000 Discover credit card $3,200 purchases Citibank credit card $2,300 purchases Capital One credit card $1,300 purchases SHAW COMMS: Earnings Down to $91.7 Million in Quarter Ended May 31 ------------------------------------------------------------------ Shaw Communications Inc. reported net income of $91.7 million for the third quarter ended May 31, 2007, compared to $126.4 million for the same quarter last year. Net income for the first nine months of the year was $252.5 million, compared to $247.9 million last year. The current and comparable three and nine month periods included non-operating items which are more fully detailed in Management's Discussions and Analysis. These included a gain on the sale of a portfolio investment in the third quarter of 2006 as well as tax recoveries related to reductions in enacted income tax rates in each the first and third quarters of last year. Consolidated service revenue improved 12.1% and 12.7%, for the three and nine month periods ended May 31, 2007, over the comparable periods last year to $702.2 million and $2.06 billion, respectively. Total service operating income before amortization of $310.7 million and $913.6 million increased by 11.2% and 13.8% respectively, over the same periods. Funds flow from operations increased to $259.5 million for the quarter and $755.8 million for the year-to-date compared to $221.1 million and $626.6 million in the same periods last year. Financial Position Total assets at May 31, 2007, were $7.9 billion, compared to $7.5 billion at Aug. 31, 2006. Total liabilities at May 31, 2007, were $5.9 billion and total stockholders' equity at May 31, 2007, stood at $2 billion. Current assets increased by $231.8 million due to increases in cash of $211 million, accounts receivable of $12.8 million and inventory of $6.3 million. Cash increased as a portion of the proceeds from the $400 million senior unsecured notes on March 2, 2007, was invested in short term deposits pending the repayment of maturing debt later in the calendar year. Current liabilities decreased by $53.3 million due to decreases in bank indebtedness of $20.4 million and accounts payable of $43.9 million, both of which were partially offset by an increase in unearned revenue of $9.6 million. On March 2, 2007, the company closed a $400 million offering of 5.7% senior notes due March 2, 2017. The net proceeds were used for debt repayment, working capital and general corporate purposes. Total long-term debt increased by $85.2 million as a result of the issuance of $400 million senior unsecured notes, partially offset by repayment of bank borrowings and partnership debt of $280.3 million and a decrease of $34.5 million relating to the translation of hedged US denominated debt. At May 31, 2007, Shaw had access to $1 billion of available credit facilities. Dividend Rate and Stock Split The company's board of directors approved an increase in the equivalent annual dividend rate to $1.32 on Shaw's Class B Non- Voting Participating shares and $1.315 on Shaw's Class A Participating shares. The 18% increase represents an annual dividend amount of $285 million. This new rate will be effective starting with the monthly dividend paid on Sept. 27, 2007. On July 10, 2007 shareholders approved the proposed two-for-one stock split of the company's outstanding Class A Participating Shares and Class B Non-Voting Participating Shares. The split will be effective as of the close of business on July 30, 2007. After giving effect to the two-for-one stock split and the dividend increase, the equivalent annual dividend rate will be $0.66 on Shaw's Class B Non-Voting Participating shares and $0.6575 on Shaw's Class A Participating shares which represents a yield of over 2.5%. Management Comments Commenting on the results, chief executive officer Jim Shaw said, "This quarter we continued to see solid operational and financial results due to the efforts of our strong management team and over 9,000 employees. Customer gains were posted across all products and we delivered solid growth in revenue and service operating income before amortization." "Customers are pleased with the range and quality of telephone services we offer and we continue to see strong demand for our Digital Phone products," said Jim Shaw. "In just over two years since our first launch, penetration of Digital Phone lines now stands at 20% of basic customers who have the service available to them. Its strength, the growth of other products and continued pricing power have contributed to increase Shaw's overall consolidated revenues and service operating income before amortization by almost 25% over the last two years." Mr. Shaw said: "As a result of our performance for the first nine months of the year, free cash flow remains on track to exceed $310 million, which is in line with our guidance and plan to accelerate certain capital spending in the final quarter of fiscal 2007 in order to continue to meet customer demand and our high standards for service delivery. In fiscal 2008 we will continue to invest to ensure our network will support and maintain our leading broadband business, grow telephony products and provide next generation services for our customers. We will also continue a number of multi-year projects currently underway related to facilities expansion and a new customer management and billing system. Our preliminary view for fiscal 2008 calls for capital investment to range from $640 [million] - $670 million. Consistent with previous years, we plan to provide specific guidance on service operating income before amortization and free cash flow when we release our 2007 year-end results." In closing, Mr. Shaw summarized: "As the market for communication and entertainment services becomes more competitive, we continue to drive growth in the business, strengthen our financial position and deliver solid returns to our shareholders. This is done through our focus on the customer, the capabilities of our network, our consistent enhancements to products and new offerings. Through the last quarter of this year, we will continue this focus to achieve our free cash flow objective." About Shaw Communications Shaw Communications Inc. (TSX: SJR.B) (NYSE: SJR) -- http://www.shaw.ca/-- is a cable and satellite operator headquartered in Calgary, Alberta, Canada. It provides broadband cable television, High-Speed Internet, Digital Phone, telecommunications services through Shaw Business Solutions and satellite direct-to-home services through Star Choice to customers. Shaw is traded on the Toronto and New York stock exchanges and is included in the S&P/TSX 60 Index. * * * As reported in the Troubled Company Reporter on March 2, 2007, Moody's Investors Service assigned the existing Ba1 senior unsecured rating of Shaw Communications Inc. to the company's CDN$400 million notes offering, proceeds of which are to be used for debt repayment and general corporate purposes. SHAW GROUP: Secures $1.29 Billion EPC Contract from Duke Energy --------------------------------------------------------------- The Shaw Group Inc. has been awarded an engineering, procurement and construction contract by Duke Energy Carolinas, LLC, a unit of Duke Energy, as part of the Cliffside modernization project, to build a new 800-megawatt supercritical coal-fired electric generating plant and a flue gas desulfurization system at Duke's existing Cliffside Steam Station in Rutherford and Cleveland counties, North Carolina. Supercritical clean coal technology allows for exceptional operational reliability, efficiency and fuel flexibility, thereby providing an economic and environmental benefit. The state-of-the-art FGD system, to be built at Unit 5 of the existing Cliffside Steam Station, will be shared with the new 800-megawatt supercritical unit. The value of Shaw's EPC contract is valued at approximately $1.29 billion. "We are excited to continue support Duke's clean energy expansion strategy with this significant EPC contract," J.M. Bernhard, Jr., chairman, president and chief executive officer of Shaw, said. "The supercritical pulverized clean coal technology is more advanced and efficient than conventional coal combustion technologies currently in operation and we are ready to deliver this important generating facility and air quality control system for our longtime client." About Duke Energy Corp. Headquartered in Charlotte, North Carolina, Duke Energy Corp. (NYSE:DUK) -- http://www.duke-energy.com/-- is an electric and natural gas company. About Shaw Group Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR) -- http://www.shawgrp.com/-- provides services to the environmental, infrastructure and homeland security markets, including consulting, engineering, construction, remediation and facilities management services to governmental and commercial customers. It is also a vertically integrated provider of engineering, procurement, pipe fabrication, construction and maintenance services to the power and process industries. The company segregates its business activities into four operating segments: Environmental & Infrastructure; Energy & Chemicals; Maintenance, and Fabrication, Manufacturing & Distribution. In January 2005, the company sold substantially all of the assets of its Shaw Power Technologies, Inc. and Shaw Power Technologies International, Ltd. units to Siemens Power Transmission and Distribution Inc., a unit of Siemens AG. The company has operations in Chile, China, Malaysia, the United Kingdom and, Venezuela, among others. * * * Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on The Shaw Group Inc. and removed it from CreditWatch, where it was placed with negative implications in October 2006. S&P said the outlook is stable. In addition, 'BB' senior secured debt rating was affirmed after the $100 million increase to the company's revolving credit facility. SHEPARD JOHNSON: Case Summary & 17 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Shepard Johnson dba SMJ Management Monte Johnson dba SMJ Management P.O. Box 1307 Roseville, CA 95678 Bankruptcy Case No.: 07-25104 Type of business: The Debtor provides management services. Chapter 11 Petition Date: July 3, 2007 Court: Eastern District of California (Sacramento) Judge: Christopher M. Klein Debtor's Counsel: David M. Meegan, Esq. 1545 River Park Drive, Suite 550 Sacramento, CA 95815-4615 Tel: (916) 925-1800 Total Assets: $6,123,375 Total Debts: $18,682,376 Debtor's 17 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Affinity Bank bank loan $4,000,000 101 South Chestnut Street Ventura, CA 93001 All California Funding bank loan $3,900,000 14958 Ventura Boulevard, 2nd Floor Sherman Oaks, CA 91403 Integrated Financial bank loan $2,760,000 Associates, Inc. 2810 West Charleston Boulevard, Suite 77 Las Vegas, NV 89102 Pacific Funding bank loan $740,000 7419 Greenbush Avenue North Hollywood, CA 91605 Laurence and Carol loan $650,000 Canfield 855 Eagle Ridge Circle Folsom, CA 95630 Grand Pacific Financing bank loan $600,000 Corp. 1255 Corporate Center Drive, PH10 Monterey Park, CA 91754 Russell Carlson judgment lien $388,613 c/o James Bridgman 220 Montgomery Street, Suite 1009 San Francisco, CA 94104 Howard Hansen legal services $268,218 435 Camino Al Barranco Watsonville, CA 95076 Montez Glass Inc. trade debt $247,743 Capital City Drywall trade debt $106,750 Wilmor & Sons Plumbing trade debt $105,545 William & Janet loan $100,000 Youngbluth John Montague legal services $96,358 Vision Plastering trade debt $94,908 Martucci & Martucci legal services $87,000 Beutler Corp. trade debt $86,965 Homes By John E. mechanic's lien $69,333 Johnson, Inc. SOBEYS INC: Thrifty Foods Deal Cues S&P to Retain Negative Watch ---------------------------------------------------------------- Standard & Poor's Ratings Services said it kept its ratings on Stellarton, Nova Scotia-based Sobeys Inc. on CreditWatch with negative implications after the company announced that it has entered into an agreement with British Colombia-based Thrifty Foods Inc. to acquire the business for CDN $260 million. The ratings were placed on CreditWatch April 27, 2007, following Empire Co. Ltd.'s offer to purchase all of Sobeys' common shares outstanding that it did not own (27.9 %). This transaction was completed on June 15, 2007. "The proposed acquisition would expand Sobeys' geographic footprint in western Canada by adding 20 supermarkets, a distribution center, and a wholesale division in B.C.," said Standard & Poor's credit analyst Maude Tremblay. "If the acquisition is debt-financed, it would lead to a modest deterioration in credit metrics," Ms. Tremblay added. S&P expect Sobeys to make a C$300 million dividend to Empire this month. Empire will use the proceeds from the dividend to repay debt outstanding at Empire. Sobeys' credit metrics should weaken following the dividend payment and completion of the proposed Thrifty Foods acquisition because of higher debt levels. The adjusted debt-to-EBITDA ratio was 3.4x at fiscal year-end 2007. To resolve the CreditWatch listing, Standard & Poor's will review Sobeys' financing plan for the Thrifty Foods acquisition as well as complete its evaluation of Empire to assess the ultimate impact on Sobeys. STERICYCLE INC: S&P Withdraws BB+ Rating at Company's Request ------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'BB+' corporate credit rating on Lake Forest, Illinois-based Stericycle Inc. at the company's request. STEVE SUTHERLAND: Case Summary & 19 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Steve Sutherland D.D.S., P.A. 8845 Hawbuck New Port Richey, FL 34655 Bankruptcy Case No.: 07-05856 Chapter 11 Petition Date: July 9, 2007 Court: Middle District of Florida (Tampa) Debtor's Counsel: Sheila D. Norman, Esq. Norman and Bullington, P.A. 1905 West Kennedy Boulevard Tampa, FL 33606 Tel: (813) 251-6666 Fax: (813) 254-0800 Total Assets: $1,067,705 Total Debts: $2,301,426 Debtor's 19 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ U.S.X.L. Leasing Lumenis One $476,455 10 Waterview Boulevard $50,000; Lightsheer Parsippany, NJ 07054 $30,000' Encore CO2 $50,000; Aluma System $30,000; Visa $5,000; value of security: $165,000 SunTrust Bank commercial $350,600 17802 North Dale Mabry properties; value Highway of security: Lutz, FL 33548 $800,000; value of senior lien: $774,800 B.B.&T. Luxar dental laser; $280,000 P.O. Box 850155 value of security: Charlotte, NC 28258 $6,000 Bankers Choice Health miscellaneous $162,332 Leasing medical and office equipment; value of security: $85,000 H.P.S.C., Inc. alleged blanket $81,000 lien Citibank Citicards credit line $49,606 I.R.S. $17,000 Advanta $15,826 Philadelphia, PA Advanta Card Services credit card $14,795 Advanta credit card $14,416 Salt Lake City, UT C.B.S. Outdoor $13,500 SunTrust Bank credit card $8,679 Baltimore, MD Noberl Biocare U.S.A., Nobel Replace $8,233 L.L.C. Tapered Surgery Kit, drills; value of security: $500 SunTrust Business Card credit card $7,246 David Kenneth Stevens $5,000 Idearc Media Corp. $4,894 Henry Schein, Inc. $4,736 Kehoe & DeWeerd $3,250 P.S.S.-St. Petersburg $2,253 STONERIDGE INC: Improved Profitability Cues S&P's Positive Outlook ------------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Stoneridge Inc. and revised the outlook to positive from negative. At the same time, Standard & Poor's assigned its bank loan and recovery ratings to Stoneridge's proposed $200 million senior secured term loan due 2014. The bank loan is rated 'B+', the same as the corporate credit rating, with a recovery rating of '4', indicating that lenders can expect average (30% to 50%) recovery in the event of a payment default. "The outlook revision reflects Stoneridge's improving operating profitability, improved liquidity, and prospects for sustainable double-digit EBITDA margins and free cash flow generation beginning in 2008 and 2009," said Standard & Poor's credit analyst Nancy Messer. The ratings continue to reflect the company's substantial leverage and the risks of continuing weak near-term automotive production volumes. Proceeds from the proposed term loan, combined with cash on hand, will be used to redeem Stoneridge's $200 million, 11.5% unsecured notes. The company will also refinance its existing $100 million revolving credit facility with a new ABL revolving credit commitment expiring 2012. S&P expect to withdraw the ratings on the $100 million revolving line due 2008 and its $200 million unsecured notes when the proposed refinancing closes. Warren, Ohio-based Stoneridge makes electrical and electronic components and systems for the light- and commercial-vehicle markets in the U.S. (76% of sales) and the rest of the world (24%). Its products work with the vehicle's mechanical and electrical systems to activate equipment or to display and monitor vehicle performance. The ratings on Stoneridge reflect its vulnerable business profile and aggressive financial risk profile, which are mitigated by its diversified revenue base, the absence of near-term maturities, and reasonable prospects for a return to consistent free cash flow generation in the near term. Pro forma for the proposed transaction, the company had total balance sheet debt of $200 million at March 31, 2007. The outlook is positive and reflects our expectations for improved credit measures in the next two years as a result of ongoing efforts to improve operations and return on assets through improved working capital management and focused capital investments. The ratings could be raised if the company's successful implementation of these initiatives produces higher, sustainable earnings and cash flow combined with lower leverage. S&P could revise the outlook to stable or negative if progress toward achievement of these objectives wanes, if automotive industry conditions worsen, if the commercial-vehicle market downturn is more prolonged than currently expected, or if the company undertakes an ambitious acquisition before it is able to improve the capital structure. SYMBION INC: S&P Junks Rating on Proposed $175MM PIK Toggle Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to Nashville, Tennessee-based Symbion Inc. The rating outlook is stable. At the same time, Standard & Poor's assigned its loan and recovery ratings to Symbion's proposed $350 million senior secured credit facility. The credit facility is rated 'B' with a recovery rating of '3', indicating the expectation of meaningful (50%-70%) recovery in the event of a payment default. In addition, Standard & Poor's assigned its 'CCC+' rating to the company's $175 million proposed senior unsecured PIK toggle notes due in 2015. "The stable outlook," said Standard & Poor's credit analyst David P. Peknay, "reflects our belief that Symbion will continue to have success with its growth strategy and cope with its large financial burden." Indeed, we expect that these efforts will help boost its operating performance and improve its currently weak financial risk profile to be more consistent with the rating. SYMBOL MERGER: Moody's Assigns Corporate Family Rating at B2 ------------------------------------------------------------ Moody's Investors Service assigned ratings to Symbol Merger Sub, Inc. in connection with the pending leveraged buyout of Symbion, Inc. On April 24, 2007 Symbion entered into an Agreement and Plan of Merger with Symbol Acquisition, L.L.C. and Symbol. Parent and Symbol are affiliates of the private equity firm, Crestview Partners, L.P. The total transaction value is estimated at $647 million. Pursuant to the agreement, Symbol, a newly formed special-purpose subsidiary owned by Crestview, its co-investors and a group of senior managers of Symbion, will merge with and into Symbion. Moody's assigned these proposed ratings: -- $75 million senior secured revolver due 2013, rated Ba3 (LGD2, 29%) -- $250 million senior secured term loan B due 2014, rated Ba3 (LGD2, 29%) -- $25 million senior secured delayed draw term loan due 2014, rated Ba3 (LGD2, 29%) -- $175 million unsecured toggle notes due 2015, rated Caa1 (LGD5, 84%) -- Corporate Family Rating, rated B2 (Corporate Family rating has been temporarily assigned to Symbol Merger Sub, Inc.; after the merger is completed, this rating will be assigned to Symbion, Inc.) -- Probability of Default Rating, rated B2 -- Speculative Grade Liquidity Rating, SGL-2 The rating outlook is stable. The proceeds from the proposed new indebtedness will be utilized to purchase the company's equity from the existing shareholders, repay existing bank debt and pay transaction fees and expenses. The assignment of a B2 Corporate Family Rating primarily reflects the following factors: high leverage; weak free cash flow primarily as a result of expansion projects; and weak interest coverage. Factors that serve to mitigate these risks include: a successful business model that additionally employs a multi-specialty approach; the company's leading market position in the short-stay, free-standing surgical center space; a favorable payor and case mix; low bad debt expense; an experienced, cohesive management team; strong demographic and industry trends in the outpatient surgery segment and a solid presence in Certificate of Need states which affords the company with strong barriers to entry. The SGL-2 rating reflects the company's good liquidity position and incorporates Moody's expectation that, over the next twelve month horizon, Symbion will be able to fund its ordinary working capital, capital expenditures and other cash requirements through operating cash flow. Covenants are anticipated to be set at levels that allow full access to the revolver. The stable ratings outlook reflects Moody's expectation that Symbion will continue to demonstrate high single-digit top-line revenue growth with organic growth in the range of 3% to 5%, or better. In addition to strong same-facility revenue expansion, we anticipate that Symbion will undertake growth by means of small, selective acquisition opportunities while focusing on the opening of three to four de novo centers per year. The company is expected to maintain EBITDA margins in excess of 26% or more going forward (17.5% or better, after minority interest), a level of profitability that should enable it to rapidly de-lever its balance sheet in a disciplined manner. Symbion, Inc., headquartered in Nashville, Tennessee, owns and operates a network of 46 short-stay surgical facilities and three hospitals in 23 states. The company also manages eight short-stay surgical centers and two physician networks. Symbion's facilities primarily provide non-emergency surgical procedures across many surgical specialties. For the twelve months ended March 31, 2007, the company reported revenues of $310 million. T2 INCOME: S&P Preliminary Rates $12 Million Class E Notes at BB ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary ratings to T2 Income Fund CLO I Ltd./T2 Income Fund CLO I LLC's $249.25 million floating-rate notes due 2019. The preliminary ratings are based on information as of July 18, 2007. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect: -- The expected commensurate level of credit support in the form of subordination to be provided by the notes junior to the respective classes; -- The cash flow structure, which was subjected to various stresses requested by Standard & Poor's; and -- The transaction's legal structure, including the issuer's bankruptcy remoteness. Preliminary Ratings Assigned T2 Income Fund CLO I Ltd./T2 Income Fund CLO I LLC Class Rating Amount ----- ------ ------ A AAA $176,250,000 B AA $30,000,000 C A $22,000,000 D BBB $9,000,000 E BB $12,000,000 Income notes NR $59,800,000 NR -- Not rated. TERADYNE INC: Earnings Down to $27.7 Mil. in Quarter Ended July 1 ----------------------------------------------------------------- Teradyne Inc. reported sales of $288.7 million in the second quarter of 2007 ended July 1, compared with $386.8 million in the second quarter of 2006. Net income was $27.7 million in the second quarter of 2007, compared with $82.4 million in the second quarter of 2006. Income from continuing operations was $27.2 million in the second quarter of 2007. Bookings for the second quarter were $307 million. "Our semiconductor test bookings grew 28% sequentially in the second quarter, with strong Outsourced Assembly and Test business driving record FLEX(TM) test platform orders," said Michael Bradley, Teradyne president and chief executive officer. "Our semiconductor test product orders were up 38% over the first quarter, as we saw demand from a broad range of market segments, including wireless, automotive and power management devices." Guidance for the third quarter of 2007 is for sales between $300 million and $320 million. During the second quarter of 2007, Teradyne repurchased 1.4 million shares of its common stock for $24 million under its previously announced Stock Repurchase Program. At July 1, 2007, the company posted total assets of $1.7 billion, total liabilities of $319.9 million, resulting in total stockholders' equity of $1.4 billion. About Teradyne Teradyne Inc. (NYSE:TER) -- http://www.teradyne.com/-- is a supplier of Automatic Test Equipment used to test complex electronics used in the consumer electronics, automotive, computing, telecommunications, and aerospace and defense industries. In 2006, Teradyne had sales of $1.38 billion, and currently employs about 3,700 people worldwide. Teradyne(R) is a registered trademark of Teradyne Inc. in the U.S. and other countries. All product names are trademarks of Teradyne Inc. * * * Husky Energy Inc.'s junior subordinated debt carries Moody's Investors Services Ba1 rating. Moody's placed the rating on April 25, 2001 with a stable outlook. THANG VAN LE: Case Summary & 14 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Thang Van Le 6976 74th Street Circle East Bradenton, FL 34203 Bankruptcy Case No.: 07-05389 Chapter 11 Petition Date: June 25, 2007 Court: Middle District of Florida (Tampa) Debtor's Counsel: R. John Cole, II, Esq. 46 North Washington Boulevard, Suite 24 Sarasota, FL 34236 Tel: (941) 365-4055 Fax: (941) 365-4219 Total Assets: $3,167,567 Total Debts: $3,454,836 Debtor's 14 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ World Savings & Loan lien on properties $368,481 4101 Wiseman Boulevard, owned by Thang, Inc. Suite Mc-t San Antonio, TX 78251 Worldsavings lien on condominium $91,394 794 Davis Court owned by Thang, Inc. San Leandro, CA 94577 E.M.C. Mortgage Corp. real estate; value $61,657 P.O. Box 293150 of security: Lewisville, TX $371,185; value of 75029-3150 senior lien: $330,164 Chase credit card $27,450 Monogram Bank credit card $19,717 North America Citi credit card $16,331 Bank of America credit card $4,745 Barton Farms Association $1,277 Bush Ross unknown Countrywide conventional real unknown estate mortgage First Card credit card unknown Kevin T. Wells, P.A. unknown Law Office of David J. unknown Stern Sooper Cu real estate unknown mortgage without other collateral THREE ANGELS: Section 341(a) Creditors Meeting Set for August 7 --------------------------------------------------------------- The U.S. Trustee for Region 21 will convene a meeting of creditors of Three Angels-GA, LLC on Aug. 7, 2007, at 10:30 a.m., at Federal Building, Room G-18, 121 Spring Street in Gainesville, Georgia. 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 officer of the Debtors under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About Three Angels Three Angels-GA, L.L.C. in Dawsonville, Georgia, filed for Chapter 11 bankruptcy protection on June 9, 2007 (Bankr. N.D. Ga. Case No. 07-21329). When the Debtor filed for bankruptcy, it listed estimated assets and debts of $1 million to $100 million. THREE ANGELS: Wants to Employ Burton & Armstrong as Counsel ----------------------------------------------------------- Three Angels-GA, LLC asks the U.S. Bankruptcy Court for the Northern District of Georgia for permission to employ Burton & Armstrong, LLP as counsel. Burton & Armstrong will: (a) prepare the Chapter 11 petition, schedules, statement of affairs, and other pleadings required by the Bankruptcy Code or Bankruptcy Rules; (b) counsel Debtor with respect to his powers and duties as a debtor in-possession; (c) represent the Debtor in administrative or contested matters and adversary proceedings in this Court by or against the Debtor; and (d) Perform all legal services for the Debtor which may be necessary in the Bankruptcy Case. The Debtor will pay Burton & Armstrong at its customary hourly rates, which is $350 for services of Joseph J. Burton, Jr., $275 for services of Rosemary S. Armstrong, and $85 for paralegals. The Debtor assures the Court that Burton & Armstrong represents no interest adverse to the Debtor or the bankruptcy estate and the law firm's employment would be in the best interest of the estate. The firm can be reached at: Joseph J. Burton, Jr., Esq. Burton & Armstrong, L.L.P. Two Ravinia Drive, Suite 1750 Atlanta, Georgia 30346 About Three Angels Three Angels-GA, L.L.C. in Dawsonville, Georgia, filed for Chapter 11 bankruptcy protection on June 9, 2007 (Bankr. N.D. Ga. Case No. 07-21329). When the Debtor filed for bankruptcy, it listed estimated assets and debts of $1 million to $100 million. TINA WRIGHT: Case Summary & 19 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Tina M. Wright 253 John Anderson Drive Ormond Beach, FL 32176 Bankruptcy Case No.: 07-02648 Chapter 11 Petition Date: June 25, 2007 Court: Middle District of Florida (Orlando) Judge: Karen S. Jennemann Debtor's Counsel: Ann W. Rogers, Esq. 595 North Nova Road, Suite 115 Ormond Beach, FL 32174-4428 Tel: (386) 672-4014 Total Assets: $7,198,400 Total Debts: $5,597,239 Debtor's 19 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Bayview Loan Servicing, mortgage on real $525,000 L.L.C. property 4425 Ponce de Leon Boulevard, 4th Floor Coral Gables, FL 33146 Countrywide Home Loans real property; $201,836 P.O. Box 660694 value of security: Dallas, TX 75266-0694 $200,000 National City Bank real property; $175,121 Consumer Loan value of security: P.O. Box 5570 $560,000; value of LOC#01-7107 senior lien: Cleveland, OH 44197-1201 $394,368 American Express 372718877131000 $103,534 374631908099039 Suntrust guardianship funds $70,000 Bank of America M.B.N.A. also 4264--29309- $36,500 7414-1411 G.E.M.B. Ethan Allen $7,143 Drexel $11,231 Jensen Industries, Inc. $8,000 Fifth Third Bank unsecured loans $8,000 Citibank-Sears $6,941 Lowes $6,416 Trans Word Collection gas, plumbing service $5,614 Sam's Club $3,972 Home Depot $3,516 Atwell, Curtis & Brooks Sullivan, Inc. $1,122 Sam's Club Discover $516 Allstar Building Materials real property; unknown value of security: $3,200,000; value of senior lien: $1,991,616 Suntrust Bankcard repossessed 2006 unknown B.M.W. Gary Kane & Associates accountant unknown TPG-AUSTIN PORTFOLIO: Weak Financial Profile Cues S&P's B Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' corporate credit rating to TPG-Austin Portfolio Holdings LLC. At the same time, S&P assigned its 'B' rating to a proposed $192.5 million term loan and to a $100 million revolving credit facility. S&P also assigned a recovery rating of '4' to these new facilities. The outlook for TPG-Austin is stable. The ratings reflect TPG-Austin's very small and highly concentrated portfolio and weak financial profile that resulted from its $1.2 billion leveraged acquisition of former Equity Office Properties assets. Near-term operating performance will not cover all of the company's obligations without draw-downs from the credit facility interest reserve or further borrowings. Offsetting these credit concerns are a strong competitive position in the Austin, Texas, office market, strong financial partners in the California State Teachers' Retirement System and Lehman Brothers, and a demonstrated ability to manage high-quality office buildings through the unrated parent company, Thomas Properties Group Inc. S&P expect the cash flow of TPG-Austin's portfolio to increase through lease-ups and increased rents on lease renewal. However, this growth has been factored into S&P's analysis, and S&P do not expect any near-term positive momentum in the ratings. A negative outlook would be warranted if these revenue gains do not materialize and cash flow coverage metrics remain below 1.0x longer than anticipated. TROY COX: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Troy A. Cox fdba Cox Construction fdba Cox Homes Robin A. Cox 128 Lake Haven Gray, TN 37615 Bankruptcy Case No.: 07-50907 Chapter 11 Petition Date: July 2, 2007 Court: Eastern District of Tennessee (Greeneville) Judge: Marcia Phillips Parsons Debtor's Counsel: Charles Parks Pope, Esq. P.O. Box 3415 Johnson City, TN 37602 Tel: (423)929-1902 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Chattanooga Brick & Tile, $32,098 Inc. 3130 Dayton Boulevard Chattanooga, TN 37415 P.&S. Ready Mix Concrete $15,018 210 Harrison Road Soddy Daisy, TN 37379 Ferguson Enterprises, Inc. $11,636 4100 Amnicola Highway Chattanooga, TN 37406-1002 AmSouth Bank $7,974 Sequatchie Concrete $7,523 AmSouth Bank $7,285 Builders Mutual $6,651 Woody's Service Co. $5,837 Carter Heating & Air $5,487 Lighting Gallery $5,422 Hamilton County Trustee $5,338 C.K. Supply, Inc. $5,231 State Farm Bank $5,000 Southern Credit Union value of security: $5,000 $18,000 Dakota Concepts $5,000 Suntrust Bank value of security: $9,790 $263,200 Praters Hardwood Flooring $4,747 and Supply Cordell Electric $4,690 M.B.N.A. America $3,763 Regions Bank $3,534 UNITED HERITAGE: Weaver and Tidwell Raises Going Concern Doubt -------------------------------------------------------------- Weaver and Tidwell LLP raised substantial doubt about United Heritage Corporation's ability to continue as a going concern. The auditors pointed to the selling of all of its proved reserves which resulted to having no significant revenue producing assets. In addition, the company has limited capital resources and Lothian, which was financing the company's development, filed for bankruptcy on June 13, 2007. A summary of Lothian Oil Inc.'s chapter 11 petition was published in the Troubled Company Reporter on June 15, 2007. The company reported net loss for the fiscal year ended March 31, 2007, of $11.4 million, a decrease of $5.9 million as compared to a net loss of $17.4 million for the fiscal year ended March 31, 2006. The company reported a significant decrease in net loss because it had no impairment charge in the 2007 fiscal year, as compared to an impairment charge of $23.2 million that was included in the 2006 fiscal year. Loss per share was $1.77 for the fiscal year ended March 31, 2007 as compared with a loss per share of $2.98 for the fiscal year ended March 31, 2006. The company ended the period with cash of $1.7 million. Operating activities used $575,885 during the period, as compared to the company's cash usage of $67,729 for the 2006 fiscal year. Cash of $642,211 was provided by investing activities during the 2007 fiscal year and cash of $1.9 million was used in investing activities for the 2006 fiscal year. Net cash provided from investing activities for the 2007 fiscal year consisted of the proceeds from the sale of the company's New Mexico properties, which totaled $6.6 million. Cash of $6 million was used for capital expenditures for the company's oil and gas properties and for the purchase of equipment. During the 2006 fiscal year, cash flows used in investing activities related primarily to capital expenditures for the company's oil and gas properties. The company had received two lines of credit from Lothian totaling $10.5 million. During 2007, the company had drawn down approximately $6.3 million from the lines of credit. Payments totaling $4,809,924 were made to Lothian from the proceeds received from the sale of the company's New Mexico properties. At March 31, 2007, the company's balance sheet showed total assets of $9.98 million, total liabilities of $9.18 million and total shareholders' equity of $800,000. About United Heritage Corporation Headquartered in Midland, Texas, United Heritage Corporation (Nasdaq: UHCP) has proved reserves of 567,189 barrels of oil and 2.9 billion cu. ft. of natural gas in South Texas and southeastern New Mexico. The company also operated the Heritage Food Group, which created the Heritage Lifestyle brand of pre-packaged meat and poultry products. In 2005 United Heritage sold this unit to BMW Holdings, in order to focus on oil and gas. In 2006 the company was acquired by its largest shareholder, Lothian Oil, which holds a 71% stake. USA INVESTMENT: To Sell Hotel Zoso and Palm Springs Marquis Villas ------------------------------------------------------------------ Affiliates of USA Investment Partners have filed motions with the United States Bankruptcy Court for the District of Nevada to sell the Hotel Zoso and the Palm Springs Marquis Villas. The Hotel Zoso is a luxury 163-room facility which opened in December 2005. The Palm Springs Marquis Villas comprises 101 units, of which a subsidiary of USA Investment Partners owns 63. The motion filed by Gordon & Silver, Ltd. of Las Vegas, which represents the Trustee for USA Investment Partners, Lisa Poulin, states that any purchase agreement will be "subject to a competitive bidding process" with both properties. It places the minimum sale price for the Hotel Zoso at more than $25 million and the Marquis Villas at about $11 million. Ms. Poulin, a partner at CRG Partners Group, LLC and the Court appointed Trustee, said, "We are extremely pleased with the interest we have already received in these valuable properties from a range of prospective buyers. Moreover, both are continuing to operate in a 'business as usual' mode. In fact, the Zoso has solid occupancy and annual profitability." She noted that the motion calls for USA Investment Partners to "solicit, evaluate and accept qualified offers, qualified bidders, and the highest and best offer, and to set bidding procedures with respect to the sale and assignment of the (properties)." Ms. Poulin also pointed out that, "Jim Matthews, a highly experienced real estate professional, is managing the sale process of both the hotel and villas." Mr. Matthews specializes in valuations, appraisals, lease negotiations and prompt disposition of under-performing properties. The Bankruptcy Court has scheduled a hearing for the motion on July 27, 2007 and the motion has requested that the Court conduct a hearing no later than 75 days thereafter to approve the selection of the highest and best offer for the properties. U.S.A. Investment Partners, L.L.C., invests and develops real estate. On April 4, 2007, creditors filed an involuntary chapter 11 petition against the company (Bankr. D. Nev. Case No. 07- 11821). Lisa M. Poulin was appointed as interim chapter 11 trustee. Brigid M. Higgins, Esq., Eric Van, Esq., Gerald M. Gordon, Esq., Gregory E. Garman, Esq., and Talitha B. Gray, Esq., at Gordon & Silver, Ltd., represents the chapter 11 trustee. WALTER HEIGLE: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Walter W. Heigle, III 111 Depot Drive, Suite B Madison, MS 39110 Bankruptcy Case No.: 07-02012 Chapter 11 Petition Date: June 29, 2007 Court: Southern District of Mississippi (Jackson) Judge: Edward Ellington Debtor's Counsel: Craig M. Geno, Esq. Harris, Jernigan & Geno, P.L.L.C. 587 Highland Colony Parkway P.O. Box 3380 Ridgeland, MS 39157 Tel: (601) 427-0048 Fax: (601) 427-0050 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. WEST CORP: June 30 Balance Sheet Upside-Down by $2.1 Billion ------------------------------------------------------------ West Corporation's balance sheet at June 30, 2007, showed total assets of $3 billion, total liabilities of $4.1 billion, minority interest of $11 million, class L common stock of $969.3 million, resulting in a stockholders' deficit of $2.1 billion. Revenues of $520.2 million for the second quarter ended June 30, 2007, compared to $461.7 million for the same quarter last year, an increase of 12.7%. Revenue from acquired entities accounted for $28.7 million of the $58.5 million increase during the second quarter and $100.9 million of the $142.4 million year-to-date increase. Net income for the second quarter ended June 30, 2007, was $2.5 million, compared with $37.8 million for the same quarter last year. Liquidity At June 30, 2007, West Corporation had cash and cash equivalents totaling $281.3 million and working capital of $189.3 million. Second quarter depreciation expense was $25.8 million and amortization expense was $19 million. Cash flow from operating activities was $45.3 million and was impacted by interest expense of $83.5 million. Comments "During the quarter, we invested $25.7 million in capital expenditures primarily for telecom and computer network equipment," stated Paul Mendlik, chief financial officer of West Corporation. "The company also expanded its term credit facility by $135 million to fund the Omnium acquisition." "We are pleased with this quarter's results and the closing of the Omnium acquisition on May 4," said Thomas B. Barker, chief executive officer of West Corporation. About West Corp. Based in Omaha, Nebraska, West Corp. -- http://www.west.com/-- provides outsourced communication solutions to many of the world's largest companies, organizations and government agencies. West helps its clients communicate effectively, maximize the value of their customer relationships and drive greater profitability from every interaction. The company's integrated suite of customized solutions includes customer acquisition, customer care, automated voice services, emergency communications, conferencing and accounts receivable management services. The company also has operations in Australia, Canada, China, Hong Kong, India, Philippines, Singapore, Switzerland and the United Kingdom. At March 31, 2007, the company's balance sheet showed $2.7 billion in total assets and $3.9 billion in total liabilities resulting in a stockholders' deficit of $2.1 billion. The balance sheet however also that the company is liquid with $692 million in total current assets and $535 million in total current liabilities. WILLIAM FREELOVE: Case Summary & 13 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: William R. Freelove 1988 Cornerstone Drive Winterville, NC 28590 Bankruptcy Case No.: 07-02399 Chapter 11 Petition Date: July 3, 2007 Court: Eastern District of North Carolina (Wilson) Debtor's Counsel: Walter L. Hinson, Esq. Hinson & Rhyne, P.A. P.O. Box 7479 Wilson, NC 27895-7479 Tel: (252) 291-1746 Total Assets: $398,033 Total Debts: $1,049,160 Debtor's 13 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ I.R.S. all assets $600,553 Attention: Special Procedures 320 Federal Place Greensboro, NC 27402 possible liability unknown North Carolina Dept. of all assets $278,097 Revenue P.O. Box 1168 Raleigh, NC 27602 possible liability unknown Chase $38,547 Attention: Managing Agent P.O. Box 15153 Wilmington, DE 19886-5153 American Express $3,100 Capital Management collections for $1,935 Capital One Card M.B.N.A. America $927 Chunowitz, Teitelbaum & unknown Mandel, Ltd. Danny McNally & Lorraine plaintiffs in unknown McNally lawsuit Emma and F. Franz plaintiffs in unknown Holscher lawsuit G.M.A.C. possible liability unknown Mercedes-Benz Credit possible liability unknown Michael and Brenda plaintiffs in lawsuit unknown Strickland Vernon and Jessica Snyder plaintiffs in lawsuit unknown WILLIAM SANDLIN: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: William A. Sandlin 129 Rocky Waters Circle Cullman, AL 35057 Bankruptcy Case No.: 07-81668 Chapter 11 Petition Date: July 2, 2007 Court: Northern District of Alabama (Decatur) Judge: Wesley W. Steen Debtor's Counsel: Garland C. Hall, III Chenault, Hammond & Hall, P.C. P.O. Box 1906 Decatur, AL 35602 Tel: (256) 353-7031 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. WILLIAM SWANSON: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: William Lee Swanson Loving Care Private School and Nursery 3950 Ramblecreek Missouri City, TX 77459 Tel: (281) 431-4873 Bankruptcy Case No.: 07-34439 Chapter 11 Petition Date: July 2, 2007 Court: Southern District of Texas (Houston) Judge: Wesley W. Steen Debtor's Counsel: Michael Charles Eddings, Esq. 1300 North Sam Houston Parkway E, Suite 295 Houston, TX 77032 Tel: (281) 260-0777 Fax: (281) 999-7771 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. ZOHOURI GROUP: South Padre Sale Auction Scheduled for July 24 ------------------------------------------------------------- Holliday Fenoglio Fowler, L.P., representing the seller, Michael B. Schmidt, Chapter 7 Bankruptcy Trustee for the Zohouri Group South Padre, L.P., discloses that a live auction for 730 acres of unimproved land in South Padre Island, Texas, is set on July 24, 2007, in Corpus Christi, Texas. The basic terms of the auction include: 1) Price: $38 million 2) Required Deposit to Attend: $150,000 3) Minimum Initial Overbid: $300,000 ($38.3 million) 4) Subsequent Increments: $50,000 In addition to price, improved terms such as increased deposit, shortened feasibility and closing periods will be taken into consideration in making the final award of the sale. The development site, situated three miles north of the city of South Padre, encompasses the full half-mile width of the island and provides approximately 7,785 feet of beachfront footage along the Gulf of Mexico and the Laguna Madre Bay. South Padre Island is a 34-mile long barrier reef island at the southernmost tip of the Texas Gulf Coast. The buyer of the site will be able to establish all zoning and master planning, which could include uses such as mixed-use, high-rise condominiums, multifamily, single- family, entertainment, lodging, recreation, marina and retail pad sites. In addition, Zohouri plans to seek authority from the U.S. Bankruptcy Court for the Southern District of Texas to convert the Chapter 7 proceeding to a Chapter 11 case, on the July 24 hearing, Bill Rochelle of Bloomberg News reports. Creditors of Zohouri Group South Padre L.P. filed an involuntary Chapter 7 petition against the company on Dec. 29, 2006 (Bankr. S.D. Tex. Case No. 06-10875). Michael B. Schmidt serves as the Chapter 7 trustee. The Debtor's schedules listed $45.3 million in secured debts. * Donlin Recano Joins Beard Group in Providing Bankruptcy News -------------------------------------------------------------- Donlin Recano & Company Inc. and Beard Group joined together to be the 'go to' source for the very latest in comprehensive bankruptcy news. "With thousands of people already utilizing our website daily for information on our previously filed cases, we believe keeping turnaround professionals additionally informed about breaking industry news is critically important," commented Lou Recano, Donlin Recano's chief executive officer. "News is our business and joining with Donlin Recano to bring turnaround professionals the latest industry news on a real time basis is just one innovative way to assure easy access to breaking stories of the day," commented Christopher Beard, president of Beard Group, publisher of the Troubled Company Reporter. About Donlin Recano Headquartered in New York City, Donlin Recano & Company Inc. -- http://www.donlinrecano.com/-- is a claims management company that has served over 200 national clients across a broad range of industries and business sectors. Working with counsel, turnaround advisors and the affected company, Donlin Recano helps organize and guide Chapter 11 clients through administrative bankruptcy tasks, including provision of Web site-accessible information, formation of professional call centers, management of claims, balloting, distribution and other administrative services. The company also provides Web based information services for creditors committees as required by The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005. About Beard Group Beard Group -- http://www.beardgroup.com/-- offers a comprehensive range of leading-edge products and services to legal and business professionals. These include traditional and electronic publishing, databank document search and delivery, and conferences. * BOOK REVIEW: Trump: The Saga of America's Most Powerful Real Estate Baron -------------------------------------------------------------- Author: Jerome Tuccille Publisher: Beard Books Hardcover: 264 pages List Price: $34.95 Order your personal copy at http://amazon.com/exec/obidos/ASIN/1587982234/internetbankrupt This book is the remarkable unfinished saga of an extraordinary American. When this book was first published in 1985, Donald J. Trump was scarcely into his fourth decade. He had made the leap from local New York City boy who had made good to a national and even world-prominent figure. It all started some 10 years earlier when Trump gambled that New York City would rebound from its financial morass. People laughed and scoffed at the time, but he was right, and he has profited mightily from his faith and vision. This is compelling reading about the inside machinations of his glamorous world. ********* 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 ***