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/raid1/www/Hosts/bankrupt/TCR_Public/070824.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, August 24, 2007, Vol. 11, No. 200 Headlines ACTIVISION INC: S&P Revises Outlook and Affirms BB- Credit Rating ADVANCED MICRO: Henri Richard to Resign by September 2007 ALLERT CELLULAR: Files Schedules of Assets and Liabilities AMERICAN MEDICAL: S&P Revises Outlook to Negative from Stable AMSTAR FINANCIAL: To Shut Down Amstar Mortgage Subsidiary APPTIS INC: Poor Performance Cues S&P to Cut Credit Rating to "B" BAYONNE MEDICAL: Exclusive Plan-Filing Period Extended to Nov. 12 BAYONNE MEDICAL: Herman Brockman Resigns as Chairman of the Board BAYOU GROUP: August 30 Hearing Set for Settlement Pacts Approval CANON COMMS: Good Performance Cues S&P's Stable Outlook CENTEX CORP: Credit Woes Prompt Moody's Ratings Review COMM 2007-C9: Moody's Puts Low-B Ratings on 6 Cert. Classes COMMONWEALTH HOLDINGS: Files Schedule of Assets and Liabilities COMMONWEALTH HOLDINGS: Taps 1 On 1 as General Counsel COUNTRYWIDE FIN'L: Gets $2 Bil. Equity Investment from BoFA COVENTRY HEALTH: Prices $400 Million Senior Unsecured Notes COVENTRY HEALTH: Moody's Puts "Ba1" Rating on Sr. Unsecured Debt CREDIT SUISSE: Moody's Holds Junk Rating on Class Q Certs. CREDIT SUISSE: Good Credit Levels Cue S&P to Affirm Ratings CREDIT SUISSE: S&P Assigns Low-B Ratings on Six Cert. Classes CWABS INC: S&P Takes Rating Actions on Various Cert. Classes CYBER DEFENSE: June 30 Balance Sheet Upside-Down by $22.2 Million CYBERONICS INC: Cuts Workforce by 12% in 2008 Second Quarter DELPHI CORP: Lead Plaintiffs Accede to Class Action Settlement DISCOVERY CAPITAL: Shareholders OK Plan of Liquidation & Unit Sale DURA AUTOMOTIVE: Files Reorganization Plan in Delaware ENDOCARE INC: 1-for-3 Reverse Stock Split Took Effect on Aug. 20 ENERGY PARTNERS: Names Joseph Leary as Chief Financial Officer FAIRPOINT COMM: Stockholders Approve Verizon Merger Deal FEDDERS CORP: Case Summary & 30 Largest Unsecured Creditors FIRST UNION: Moody's Holds Low-B Ratings on Five Cert. Classes FR X OHMSTEDE: S&P Places B- Rating Under Positive CreditWatch GENERAL MOTORS: Trimming Production in SUV & Pickup Truck Plants GLOBAL HOME: Committee Taps Capital Solutions as Financial Advisor GOODYEAR TIRE: Plans Growth Investments and Debt Repayment GREAT CIRCLE: Case Summary & 20 Largest Unsecured Creditors HORIZON LINES: Completes Buyout Deal With Aero Logistics HUDBAY MINERALS: Claims Zero Investments in Asset-Back Paper INTEL DEVELOPMENT: Case Summary & Six Largest Unsecured Creditors JP MORGAN: Fitch Holds Low-B Ratings on Six Certificate Classes KESSLER HOSPITAL: Taps Crammer Bishop as Special Counsel LAKE AT LAS VEGAS: S&P Junks Rating on $540MM Secured Facility LE-NATURE'S INC: Plant Sale in Jeopardy on Threat Allegations LENNAR CORP: Credit Woes Prompt Moody's Ratings Review LESLIE'S POOLMART: Increased Debt Cues S&P to Downgrade Ratings LEXINGTON RESOURCES: Posts $631,607 Net Loss in Second Quarter LOMBARD PUBLIC: S&P Rates $53.995MM Series A-2 Bonds at "BB-" MAGNA ENTERTAINMENT: Appoints Ron Charles to Board of Directors MAX CAPITAL: S&P Rates Preferred Shares & Subor. Debt at "BB" METABOLIFE INT'L: U.S. Trustee Says Joint Plan is "Unconfirmable" METABOLIFE INT'L: Plan Confirmation Hearing Set for September 10 METROMEDIA INT'L: CaucusCom Completes Common Stock Tender Offer MGM MIRAGE: Inks Joint Venture with Dubai World for CityCenter MGM MIRAGE: Dubai World Deal Cues S&P's Positive CreditWatch MGM MIRAGE: Fitch Affirms "BB" Issuer Default Rating MORTGAGE ASSISTANCE: June 30 Balance Sheet Upside-Down by $892,690 NEW YORK HEALTH: June 30 Balance Sheet Upside-Down by $2.2 Million OGLEBAY NORTON: Board Asks Shareholders to Snub Harbinger's Offer ORBITAL SCIENCES: Inks $100 Million Revolving Credit Facility PAC-WEST TELECOMM: Wants Exclusive Plan Filing Moved to Nov. 26 PIERRE DEVELOPMENT: Case Summary & 20 Largest Unsecured Creditors PLAQUEMINES PARISH: Moody's Lifts Tax Debt Rating to Baa1 from Ba1 PRIDE INT'L: Buys 9% Remainder of Angolan Joint Venture Stake PULTE HOMES: Credit Woes Prompt Moody's Ratings Review PUTNAM STRUCTURED: Moody's May Cut Ratings on Three Note Classes PYXIS ABS: Fitch Assigns Low-B Ratings on Two Note Classes ROMA PLAZA: Files Schedule of Assets and Liabilities ROMA PLAZA: List of 16 Unsecured Creditors ROMA PLAZA: Wants to Hire Michael Kulwin as Bankruptcy Attorney SCOTTISH RE: Moody's Holds (P)Ba3) Sr. Unsecured Shelf Rating SERVICEMASTER CO: Moody's Confirms "B2" Corporate Family Rating SFA ABS: Fitch Junks Rating on $50 Million Class B Notes SOUTH COAST: Fitch Cuts Rating on $32.5MM Class B Notes to B+ SOUTH COAST: Fitch Lowers Rating on $28MM Class C Notes to B+ SP NEWSPRINT: S&P Retains Developing Watch on BB- Credit Rating SYNCHRONOUS AEROSPACE: Completes Sale Deal with Littlejohn & Co. TECH DATA: Earns $7.2 Million in Second Quarter Ended July 31 TOLL BROTHERS: Earns $26.5 Million in Third Quarter 2007 TRAVELPORT LLC: Moody's Holds "B2" Corporate Family Rating TYSON FOODS: Moody's Affirms "Ba1" Corporate Family Rating UNIFI INC: Says Cost Reduction Plans to Affect 25 Employees WACHOVIA BANK: S&P Holds Low-B Ratings on Six Certificate Classes WCI COMMUNITIES: Incurs $33.2 Million Net Loss in Second Qtr. 2007 WELLCARE HEALTH: Moody's Lifts Senior Debt Rating to "Ba1" WORLDSPAN LP: Debt Refinancing Cues S&P to Withdraw Ratings * ALI-ABA Joins Internet Experts Carole Levitt, et al. * Atlas Partners Unit Funds a $4.5 Mil. Loan for General DataComm * Groupe Thibault to Merge with Ginsberg Gingras * IAIR to Hold Investor-Insurer Summit on Oct. 24 * Moody's Cuts Ratings on 120 Securities Originated in 2005 * Moody's Takes Rating Actions on Various Obligations * New Edition of Bankruptcy Litigation by Steinberg Published * BOOK REVIEW: Corporate Debt Capacity: A Study of Corporate Debt Policy and the Determination of Corporate Debt Capacity ********* ACTIVISION INC: S&P Revises Outlook and Affirms BB- Credit Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on video game publisher Activision Inc. to stable from negative. At the same time, S&P affirmed its 'BB-' corporate credit rating on the company. Activision had no debt outstanding as of June 30, 2007. "We based our outlook revision on the company's good results for the quarter ended June 30, 2007, consumer acceptance of next- generation consoles, and favorable software pricing trends," said Standard & Poor's credit analyst Andy Liu. "Activision has done well in the console transition so far, gaining market share with its strong release slate." The rating on Activision reflects some risks involving product life cycle and seasonality, the company's earnings concentration in key titles, the hit-driven nature of the business, and the highly competitive video game market. These factors are only partially offset by the company's stable of franchise titles and its cash cushion. This unsolicited rating was initiated by Standard & Poor's. It may be based solely on publicly available information and may or may not involve the participation of the issuer's management. Standard & Poor's has used information from sources believed to be reliable, but does not guarantee the accuracy, adequacy, or completeness of any information used. ADVANCED MICRO: Henri Richard to Resign by September 2007 --------------------------------------------------------- Advanced Micro Devices Inc. disclosed Wednesday that Chief Sales and Marketing Officer Henri Richard is leaving the company in September 2007. Mr. Richard departs AMD of his own accord and on completely amicable terms. "Henri's primary goal at AMD has been to construct a world-class global sales and marketing organization focused on enduring relationships with major PC and server OEMs around the world. He delivered on that goal," said AMD Chairman and CEO Hector Ruiz. "AMD is fully focused on leveraging the momentum we established during the last five years to achieve even greater levels of success ahead." The AMD global sales and marketing organization will now report into the office of the CEO. "After 20 years in the PC industry - and five of the most professionally rewarding years here at AMD - I have decided to make a move to a different business segment," Mr. Richard said. "I am leaving AMD at a time when the company is in position to break the monopoly that plagues this industry. I am immensely proud of my contribution to AMD, and in particular, of the strong team I leave behind." About AMD Advanced Micro Devices Inc. -- http://www.amd.com/-- (NYSE: AMD) designs and manufactures microprocessors and other semiconductor products. * * * As reported in the Troubled Company Reporter on Aug. 14, 2007, Standard & Poor's Ratings Services affirmed its B/Negative/-- corporate credit rating on Sunnyvale, California-based Advanced Micro Devices Inc. At the same time, S&P assigned its 'B' rating to the company's $1.5 billion 5.75% senior convertible notes due 2012, and raised the rating on the company's existing senior unsecured debt to 'B' from 'B-', because the company no longer has secured debt in its capital structure. As reported in the Troubled Company Reporter on Aug. 13, 2007, Fitch Ratings has assigned a 'CCC+/RR6' rating to Advanced Micro Devices Inc.'s private placement of $1.5 billion 5.75% convertible senior notes due 2012. The 'CCC+/RR6' rating also applies to up to $225 million of additional notes issued within the next 30 days to cover over-allotments. The 'BB-/RR2' rating on AMD's $1.69 billion Term Loan B due 2010 is affirmed and withdrawn, as the company will use net proceeds from debt issuance, as well as available cash, to fully repay the term loan. Fitch also affirmed the company's Issuer Default Rating at 'B'; and Senior unsecured debt at 'CCC+/RR6'. As reported in the Troubled Company Reporter on July 26, 2007, Standard & Poor's Ratings Services affirmed its 'B/Negative/--' corporate credit rating on Sunnyvale, California-based Advanced Micro Devices Inc. At the same time, Standard & Poor's lowered the rating on the company's 7.75% senior notes due 2012 to 'B-' from 'BB-', which is now rated the same as the company's other senior unsecured notes, reflecting release of the collateral securing the issue. ALLERT CELLULAR: Files Schedules of Assets and Liabilities ---------------------------------------------------------- Allert Cellular L.C. filed with the U.S. Bankruptcy Court for the Central District of California, its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $0 B. Personal Property $9,005,205 C. Property Claimed as Exempt $0 D. Creditors Holding Secured Claims $3,517,609 E. Creditors Holding Unsecured Priority Claims $119,947 F. Creditors Holding Unsecured Non-priority Claims $6,307,909 ----------- ----------- TOTAL $9,005,205 $9,945,465 Carpinteria, California-based Alert Cellular, L.C. -- http://alertcellular.com/-- is an authorized wireless retailer for Verizon and T-Mobile. The Debtor is also known as Alert Cellular LLC, doing business as Alert Cellular, The Mobile Store and also known as Get Mobile. The Debtor filed for Chapter 11 bankruptcy protection on July 3, 2007 (Bankr. C.D. Calif. Case No. 07-10918). Malhar S. Pagay, Esq. and Scotta E McFarland, Esq., at Pachulski, Stang, Ziehl, Young & Jones represent the Debtor in its restructuring efforts. The Official Committee of Unsecured Creditors of Alert Cellular LC are represented by Jeffrey M. Reisner at Irell & Manella LLP. AMERICAN MEDICAL: S&P Revises Outlook to Negative from Stable ------------------------------------------------------------- Standard & Poor's Ratings Services revised the outlook on American Medical Systems Inc. to negative from stable. Ratings on the company, including its 'BB-' corporate credit rating, were affirmed. "The outlook change reflects our increased concern relating to the operations of Laserscope, a urological device maker acquired in July 2006 for more than $700 million," explained Standard & Poor's credit analyst Cheryl Richer. "In particular, following the product and manufacturing issues in the first half of 2007, the Minnetonka, Minnesota-based company will be challenged to improve performance to comply with bank loan covenants, which tighten in successive quarters through 2008." The 'BB-' rating reflects AMS's leveraged financial profile as a result of its July 2006 debt-financed acquisition of Laserscope, the challenge of integrating this large acquisition, and its narrow medical focus. These concerns are partly offset by the company's leading market positions, the benefits of a diversified portfolio of pelvic health products for both men and women, and the growing demand for a better quality of life that is products provide. Although AMS has paid down over $30 million of debt since the Laserscope transaction, debt to EBITDA has decreased less than S&P anticipated as a result of a the dampening of sales caused by the early 2007 supply problems, and higher-than-expected costs associated with improving the performance of Laserscope's next generation, high-performance system console. Adjusted debt to EBITDA was 6x for the 12 months ended June 30, 2007. Given the anticipated strengthening of sales in the second half of the year, and a typically seasonally strong fourth quarter, this ratio could decline toward 4.5x by year-end. AMSTAR FINANCIAL: To Shut Down Amstar Mortgage Subsidiary --------------------------------------------------------- Amstar Financial Holdings, Inc. said that it will transition operations of its mortgage banking subsidiary Amstar Mortgage Corporation. Amstar Mortgage Corporation has agreed in principal to relinquish managerial control of the affiliated branches to The Money Store. These branches and employees will then be offered employment by The Money Store. Amstar Mortgage's operations will then be discontinued on or about Dec. 15, 2007. Amstar Mortgage Corporation expects to honor its lender commitments until this date. The decision was based primarily upon four factors: 1. the current mortgage market conditions, 2. the increased unpaid liability created by former unprofitable branch offices, 3. the cost to defend several mostly frivolous lawsuits, and 4. seemingly stable lenders unable or unwilling to honor contract commitments with Amstar Mortgage. The deal will allow all branch offices and branch employees to continue with a strong viable company, as well as stop any additional liability to AFLH. Amstar Financial will continue efforts and raise capital for operations for its other subsidiaries. Once capital is procured, AFLH will focus its resources on Homes Opportunity, LLC and Amstar Guaranty Agency, Inc. its other subsidiaries. If financing is obtained, Homes Opportunity, LLC will concentrate efforts on purchasing bank foreclosures at a steep discount, while Amstar Guaranty Agency, Inc. will pursue providing insurance products through existing relationships. Both of these Amstar Financial companies are in their early stages of development and therefore may take some time before Amstar Financial may potentially show a significant profit. All operations of AFLH will be suspended on or about Dec. 15, 2007 unless adequate financing can be obtained for these subsidiaries. The company says that it is saddened to make this move but are hopeful that its other subsidiaries can become viable. Due to the closure of Amstar Mortgage, Amstar Financial will not be posting further financial statements on Pinksheets.com until further notice. Additionally, AFLH will cease work on filings to become a fully reporting company with the SEC at this time. Headquartered in Houston, Texas, Amstar Financial Holdings, Inc. (OTC Pinksheets: AFLH) -- http://www.amstarfinance.com/-- is a holding company primarily focused upon the financial and insurance industries. Its major subsidiary is Amstar Mortgage Corporation, a national mortgage banking and brokering company now operating in 31 states with 146 retail branch offices as of July 13, 2006. APPTIS INC: Poor Performance Cues S&P to Cut Credit Rating to "B" ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Chantilly, Virginia-based Apptis (DE) Inc. to 'B' from 'B+'. At the same time, Standard & Poor's lowered its senior secured debt rating to 'B+' from 'BB-'. The outlook is negative. "The downgrade reflects substantial operating underperformance during the first six months of 2007 relative to expectations, resulting in operating lease-adjusted leverage of about 7.5x as of June 30, 2007, up from about 6.3x as of Dec. 31, 2006," said Standard & Poor's credit analyst Ben Bubeck. "Furthermore, Apptis currently has minimal cushion under its financial covenants, which could potentially affect the company's access to its $25 million revolving credit facility over the next few quarters." Given modest cash balances and slightly negative free operating cash flow generation during the first six months of 2007, the revolving credit facility represents the company's primary source of liquidity. However, there is an equity cure provision in the credit facility, which allows the borrower to contribute equity in an amount sufficient to cure any covenant breach. This ability is limited to two quarters over each four-fiscal-quarter period. The ratings on Apptis reflect its relatively modest position in the highly competitive and consolidating government IT services market, high debt leverage, and limited liquidity. A predictable revenue stream based on a strong backlog and the expectation that government-related services business will remain solid over the intermediate term are partial offsets to these factors. Apptis provides IT services and communications solutions primarily to the federal government. The company also generates a significant portion of operating income from its hardware business, although revenue from this business has lower margins than on the services side. Apptis had approximately $235 million in operating lease-adjusted debt, including $66 million of payment-in-kind notes, as of June 30, 2007. BAYONNE MEDICAL: Exclusive Plan-Filing Period Extended to Nov. 12 ----------------------------------------------------------------- The Hon. Morris Stern of the U.S. Bankruptcy Court for the District of New Jersey extended Bayonne Medical Center's exclusive period to file a chapter 11 plan to Nov. 12, 2007. Judge Stern also gave the Debtor until Jan. 9, 2008, to solicit acceptances of that plan. The Debtor relates that since filing for bankruptcy, it has devoted all its efforts to: (i) stabilize its operations; (ii) analyze and identifying various ways to reduce operating costs and increase revenues; (iii) negotiate with its primary creditor constituency groups regarding financing matters and business operations; and (iv) pursue strategic alternatives for its reorganization. The Debtor further related that it has also dedicated its time to addressing the needs of patients, preserving business operations, and attending to the multitude of information requests from the primary creditor constituencies. The Debtor contended that needed additional time to formulate and proceed with an appropriate chapter 11 plan. Based in Bayonne, New Jersey, Bayonne Medical Center -- http://www.bayonnemedicalcenter.org/-- provides healthcare services and operates a medical center. The company operates a 278-bed fully accredited, acute-care hospital located in Hudson County. The company filed for Chapter 11 protection on April 16, 2007 (Bankr. D. N.J. Case No. 07-15195). Lawrence C. Gottlieb, Esq., Adam C. Rogoff, Esq., and Eric J. Haber, Esq., at Cooley Godward Kronish LLP, represent the Debtor in its restructuring efforts. Stephen V. Falanga, Esq., at Connell Foley LLP, is the Debtor's local counsel. Kurtzman Carson Consultants LLC is the Debtor's claims and noticing agent. Andrew H. Sherman, Esq., and Boris I. Mankovetskiy, Esq., at Sills Cummis Epstein & Gross PC, represent the Official Committee of Unsecured Creditors. When the Debtor filed for protection from its creditors, it listed estimated assets and debts of $1 million to $100 million. BAYONNE MEDICAL: Herman Brockman Resigns as Chairman of the Board ----------------------------------------------------------------- Herman Brockman handed in his resignation as Bayonne Medical Center's chairman of the board effective immediately, Ronald Leir of the Jersey Journal reports. Mr. Brockman will be replaced by Ruth Dugan. Mr. Leir relates that the resignation on the heels of complaints by the Official Committee of Unsecured Creditors that Pamrapo Bank used information from Mr. Brockman and William Campbell, the Debtor's former board treasurer, to become a secured creditor by restructuring a $3 million loan. Mr. Brockman is a member of Pamrapo's board while Mr. Campbell is president of Pamrapo. According to the report, Mr. Brockman, along with former Bayonne Medical president Robert H. Evans, were the ones responsible or the construction o a $2 million vascular center as well as the plan to buy St. Vincent's Hospital in Staten Island. Ruth Dugan, through a statement released by the hospital, thanked Mr. Brockman for his "many years of service and unconditional dedication." Health Professionals & Allied Employees spokeswoman Jeanne Otersen however said that Mr. Brockman's resignation was "long overdue," the report adds. Based in Bayonne, New Jersey, Bayonne Medical Center -- http://www.bayonnemedicalcenter.org/-- provides healthcare services and operates a medical center. The company operates a 278-bed fully accredited, acute-care hospital located in Hudson County. The company filed for Chapter 11 protection on April 16, 2007 (Bankr. D. N.J. Case No. 07-15195). Lawrence C. Gottlieb, Esq., Adam C. Rogoff, Esq., and Eric J. Haber, Esq., at Cooley Godward Kronish LLP, represent the Debtor in its restructuring efforts. Stephen V. Falanga, Esq., at Connell Foley LLP, is the Debtor's local counsel. Kurtzman Carson Consultants LLC is the Debtor's claims and noticing agent. Andrew H. Sherman, Esq., and Boris I. Mankovetskiy, Esq., at Sills Cummis Epstein & Gross PC, represent the Official Committee of Unsecured Creditors. When the Debtor filed for protection from its creditors, it listed estimated assets and debts of $1 million to $100 million. BAYOU GROUP: August 30 Hearing Set for Settlement Pacts Approval ---------------------------------------------------------------- The Hon. Adlai S. Hardin of the U.S. Bankruptcy Court for the Southern District of New York set a hearing on Aug. 30, 2007, at 10:30 a.m., to consider approval of the Settlement Agreements between Bayou Group, LLC, and its debtor-affiliates and investors advised by Lydian Wealth Management Co. and Altegris Investments Inc. Objections, if any, to either settlement agreements are due today, Aug. 24, 2007. Lydian Defendants Under the Settlement Agreements, the Lydian Related Settling Redeemer Defendants agree to pay the Debtors: Defendant Name Settlement Amount -------------- ----------------- Insight Multi-Strategy Fund, LLC $1,600,507 Schilit Family Partnership $1,024,000 Jewish Federation of Greater Washington $914,700 Eric Garfinkel and Diane Garfinkel $831,000 Shangri-La LLC $689,599 DOR Family LLC $508,700 SGW Holdings LLC $499,100 Small Family Trust $498,500 Canning Limited Partnership $465,400 Bansal Foundation $457,000 Joseph Kampf and Barbara Kampf $345,400 Terry A. Perl Revocable Trust $269,400 George Crowley $249,300 Gerald Friesen $249,300 Gary Brown Revocable Trust $249,300 Meyer Mutual Fund LC $234,100 Douglas Wolford $216,200 Karen Wolford $216,200 ---------- TOTAL $9,518,406 Altegris Defendants Under the Settlement Agreements, the Altegris Advised Settling Redeemer Defendants agree to pay the Debtors: Defendant Name Settlement Amount -------------- ----------------- Wright Family Capital LP $640,660 Raleigh L. Shaklee Trust $722,513 The John Sammond Marital Trust #1 and Diana Denholm Sammond $510,725 Thomas Gardiner $332,091 Wesley E. Mudge Trust $294,376 Zoltan Horvath and Marilyn Horvath $293,372 Meyer Investment Partners and C. Paul Meyer $240,939 Michael Lebowitz and Marilyn Lebowitz $230,600 Daedalus Financial Corporation $195,383 Richard A. Lewis and Roberta D. Lewis Trust $195,383 Wintsch Family Trust $186,031 Thomas Swanson $181,370 Gary Hegewald and Judith Hegewald $180,629 Barret Klein and Claire Klein $180,629 Robert J. Routt $180,629 Walter Ratterman $180,629 Ronald & Jenyne Weingart $180,629 Antonia M. Marsden Revocable Trust $180,628 Dale A. Sauser Trust $180,628 Dorothy H. Bjurstrom Trust $180,628 Elizabeth S. Gile-Ratcliff $180,628 Graves Family Partnership $180,628 John H. Waldock Trust $180,628 Neal and Jean Ross Family Trust $180,628 John J. Shea, Jr. $180,628 Volunteer, LLC $180,628 Ronald A. Bonham and Angela J. Leslie $177,336 Douglas Brown II $177,336 John C. Brunk, John C. Brunk IRA, and John C. Brunk Rollover IRA $177,336 Warren L. Bauer and Lynda M. Bauer $177,326 Margaret J. Hartzler IRA and Margaret J. Hartzler $177,336 Waldorff Family Trust $177,336 Charles Weidmer Trust $177,336 Overkill Investments, Inc. $154,724 Morris Investment Company $148,220 Ronald E. Eastman and Marilyn Eastman $70,934 ---------- TOTAL $8,167,460 About Bayou Group 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., H. Jeffrey Schwartz, Esq., Gary J. Mennitt, Esq., and Jonathan D. Perry, Esq., at Dechert LLP, represent the Debtors in their restructuring efforts. The Trumbull Group is the Debtors' claims and noticing agent. 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. CANON COMMS: Good Performance Cues S&P's Stable Outlook ------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Canon Communications LLC to stable from negative while affirming all ratings, including the 'B' corporate credit rating on the company. Total debt at June 30, 2007, was $169.1 million. "The outlook revision reflects the company's good operating performance, despite integration challenges, after a recent acquisition of several assets from Reed Elsevier PLC," said Standard & Poor's credit analyst Tulip Lim. The corporate credit rating reflects Canon's significant cash flow concentration in a few publications and trade shows, exposure to industry weakness in print-based advertising, small cash flow base, aggressive history of debt-financed acquisitions, and high debt leverage. These factors are only partially offset by the good competitive positions and complementary nature of Canon's events and publications, and the company's discretionary cash flow potential. CENTEX CORP: Credit Woes Prompt Moody's Ratings Review ------------------------------------------------------ Moody's Investors Service placed all of the ratings of Centex Corporation, Lennar Corporation, and Pulte Homes, Inc. under review for downgrade. The review was prompted by the materially weaker operating environment facing homebuilders, the dramatic change in the credit environment surrounding the industry versus only a few weeks ago, and the possibility of a substantive spill over effect on the industry if the blowback from the structured products markets continues unabated. The review will focus on these issues: (i) The ability of the three companies to reduce physical inventories going forward. To date, the bulk of their inventory reduction has been reflected in their financial statements through accounting charges, such as impairments, option abandonments, and other write-downs. As industry cancellation rates seem now to be spiking up for the second time, these physical inventory reductions will be harder to achieve. (ii) The companies' ability to continue generating positive cash flow, in part because of their limited success to date in reducing physical inventory and in part from the recent resurgence of cancellation rates. Other factors necessitating the examination include Centex and Pulte's lag in generating positive cash flow compared to prior expectations and the impact of a significant level of off-balance sheet activity on Lennar's cash flow. (iii) Whether the companies will be able to reduce costs sufficiently to once again sustain profitable operations, excluding the impact of impairments, option abandonments, and other charge-offs. In recent quarters, the three companies have generated modest quarterly losses, even after excluding the aforementioned charges. Moody's generally does not expect investment grade companies to generate even modest quarterly losses for a lengthy period. (iv) Whether the companies will take the necessary steps to conform their debt structures to the currently frail business environment. (v) Whether the companies will be able to substantially reverse their current underperformance on key credit metrics before 2009. Moody's anticipates that the review will be conducted on an expedited basis. If the determination from the review is that ratings should be changed, it is likely that Pulte's ratings will be lowered by only one notch, with the company's ratings then taken off review. The ratings of Lennar and Centex, however, could either be lowered by one notch and kept on review for further downgrade, or they could be lowered by two notches and then taken off review. These ratings were placed under review for downgrade: Centex Corporation * Baa2 rating on approximately $3.7 billion of senior unsecured notes * P-2 rating on $1.25 billion commercial paper program Lennar Corporation * Baa2 rating on approximately $2.2 billion of senior unsecured notes * P-2 rating on $2 billion commercial paper program Pulte Homes, Inc. * Baa3 rating on approximately $3.48 billion of senior unsecured notes Founded in 1950 and headquartered in Dallas, Texas, Centex Corporation is one of the nation's leading home building companies, operating in major U.S. markets in 25 states. Revenues and net income for the trailing twelve month period ended June 30, 2007 were approximately $11.2 billion and $(20) million, respectively. Founded in 1954 and headquartered in Miami, Florida, Lennar Corporation is one of the largest homebuilders in the United States, with revenues and net income for the trailing twelve month period ended May 31, 2007 of $14.1 billion and $165 million, respectively. Headquartered in Bloomfield Hills, Michigan, Pulte Homes, Inc. is one of the country's largest homebuilders, with domestic operations in 27 states and 52 markets, as well as in Puerto Rico. Revenues and net income for the trailing twelve month period ended June 30, 2007 were approximately $11.8 billion and $(411) million, respectively. COMM 2007-C9: Moody's Puts Low-B Ratings on 6 Cert. Classes ----------------------------------------------------------- Moody's Investors Service assigned definitive ratings to securities issued by COMM 2007-C9 Mortgage Trust. The provisional ratings issued on July 30, 2007 have been replaced with these definitive ratings: -Class A-1, $26,500,000, rated Aaa -Class A-2, $160,400,000, rated Aaa -Class A-3, $55,700,000, rated Aaa -Class A-AB, $64,794,000, rated Aaa -Class A-4, $1,454,915,000, rated Aaa -Class A-1A, $257,556,000, rated Aaa -Class XP, $694,066,000*, rated Aaa -Class AM, $103,553,000, rated Aaa -Class A-J, $50,000,000, rated Aaa -Class B, $32,462,000, rated Aa1 -Class C, $28,855,000, rated Aa2 -Class D, $32,462,000, rated Aa3 -Class E, $25,248,000, rated A1 -Class F, $21,642,000, rated A2 -Class XS, $2,885,522,796*, rated Aaa -Class AM-FL, $185,000,000, rated Aaa -Class G, $25,248,000, rated A3 -Class H, $36,069,000 , rated Baa1 -Class J, $36,069,000, rated Baa2 -Class K, $32,462,000, rated Baa3 -Class L, $21,642,000, rated Ba1 -Class M, $14,427,000, rated Ba2 -Class N, $10,821,000, rated Ba3 -Class O, $7,214,000, rated B1 -Class P, $10,821,000, rated B2 -Class Q, $7,213,000, rated B3 *Approximate notional amount Moody's assigned definitive ratings to this additional class of certificates: -Class AJ-FL, $144,773,000, rated Aaa COMMONWEALTH HOLDINGS: Files Schedule of Assets and Liabilities --------------------------------------------------------------- Commonwealth Holdings L.C. filed with the U.S. Bankruptcy Court for the District of Utah its schedules of assets and liabilities disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $12,400,000 B. Personal Property $198,488 C. Property Claimed as Exempt $0 D. Creditors Holding Secured Claims $5,000,000 E. Creditors Holding Unsecured Priority Claims $0 F. Creditors Holding Unsecured Non-priority Claims $73,345 ----------- ----------- TOTAL $12,598,488 $5,073,345 Headquartered in Cedar City, Utah, Commonwealth Holdings, L.C. filed for Chapter 11 protection on July 17, 2007 (Bankr. D. Utah Case No. 07-23225). Andres' Diaz, Esq., and Timothy J. Larsen, Esq., at 1 On 1 Legal Service, P.L.L.C. are the proposed counsel for the Debtor. COMMONWEALTH HOLDINGS: Taps 1 On 1 as General Counsel ----------------------------------------------------- Commonwealth Holdings L.C. asks the U.S. Bankruptcy Court for the District of Utah for authority to employ 1 On 1 Legal Service P.L.L.C. as its general counsel. As counsel, 1 On 1 will: a. advise the Debtor of its rights, powers, and duties as a Debtor and Debtor-in-possession; b. take all necessary action to protect and preserve the estate of the Debtor, including the prosecution of actions on the Debtor's behalf, the defense of actions commenced against the Debtor, the negotiation of disputes in which the Debtor is involved, and the preparation of objections to claims filed against the Debtor's estate; c. assist in preparing on behalf of the Debtor all necessary schedules and statements, motions, applications, answers, orders, reports, and papers in connection with the administration of the Debtor's estate; d. assist in presenting the Debtor's proposed plan of reorganization and all related transactions and any related revisions, amendments, etc.; and e. perform all other necessary legal services in connection with this Chapter 11 case. Documents submitted to the Court did not disclose compensation rates of the firm. However, the Debtor said it has paid 1 On 1 a $6,039 retainer and a portion of the retainer was paid to the Court as filing fee in the amount of $1,039 and for pre-petition services and costs in the amount of $1,000. The firm said it will not draw further on the retainer unless authorized by the Court. To the best of the Debtor's knowledge, 1 On 1 does not have any interest adverse to the Debtor, its creditors, or any party in interest in the case. Headquartered in Cedar City, Utah, Commonwealth Holdings, L.C. filed for Chapter 11 protection on July 17, 2007 (Bankr. D. Utah Case No. 07-23225). When the Debtor filed for bankruptcy, it listed assets and debts of between $1 million to $100 million. COUNTRYWIDE FIN'L: Gets $2 Bil. Equity Investment from BoFA ----------------------------------------------------------- Countrywide Financial Corporation has received a $2 billion strategic equity investment from Bank of America. The transaction was completed and funded Aug. 22, 2007. "Bank of America, with $1.5 trillion in assets, has the largest retail banking franchise in the U.S. and is one of the most respected companies in the world," said Angelo R. Mozilo, chairman and chief executive officer of Countrywide. "Bank of America's investment in Countrywide represents a vote of confidence and strengthens our balance sheet, enabling us to position Countrywide for future growth and success," added Mr. Mozilo. "This transaction benefits all of Countrywide's constituents, including investors, shareholders, mortgage customers, deposit holders, business partners and employees," concluded Mr. Mozilo. "We believe that in the current turmoil the stock market has been underestimating the value in Countrywide's operations and assets," said Kenneth D. Lewis, Bank of America chairman and chief executive officer. "This investment reflects our confidence in their business and recognizes the importance of the company in providing home financing across the country. We hope this investment will be a step toward a return to a more normal liquidity in the mortgage markets. Countrywide has a strong mortgage origination business and it services the mortgages of one in seven American households." Bank of America has invested $2 billion in the form of a non- voting convertible preferred security yielding 7.25 percent annually. The security can be converted into common stock at $18 per share, with resulting shares subject to restrictions on trading for 18 months after conversion. The agreement between the parties is subject to customary standstill restrictions prohibiting the acquisition of beneficial ownership of additional voting securities of Countrywide. Goldman Sachs & Co. acted as financial advisor to Countrywide and Wachtell, Lipton, Rosen & Katz served as legal advisor. Bank of America Securities acted as financial advisor to Bank of America, and Cleary, Gottlieb, Stern & Hamilton served as legal advisors. About Bank of America Bank of America (NYSE:BAC) -- http://www.bankofamerica.com/-- is one of the world's largest financial institutions, serving individual consumers, small and middle market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving 57 million consumer and small business relationships with more than 5,700 retail banking offices, more than 17,000 ATMs and award-winning online banking with more than 22 million active users. Bank of America is the No. 1 overall Small Business Administration (SBA) lender in the United States and the No. 1 SBA lender to minority-owned small businesses. The company serves clients in 175 countries and has relationships with 98 percent of the U.S. Fortune 500 companies and 80% of the Fortune Global 500. About Countrywide Founded in 1969, Countrywide Financial Corporation (NYSE: CFC) -- http://www.countrywide.com/-- is a diversified financial services provider and a member of the S&P 500, Forbes 2000 and Fortune 500. Through its family of companies, Countrywide originates, purchases, securitizes, sells, and services prime and nonprime loans; provides loan closing services such as credit reports, appraisals and flood determinations; offers banking services which include depository and home loan products; conducts fixed income securities underwriting and trading activities; provides property, life and casualty insurance; and manages a captive mortgage reinsurance company. At July 31, 2007, Countrywide employed 61,586 workers, 34,326 of which originate loans. Bankruptcy Speculation As reported in the Troubled Company Reporter on Aug. 17, 2007, Kenneth Bruce, a Merrill Lynch & Co. analyst in San Francisco, raised the possibility that Countrywide might need to seek protection from creditors under chapter 11 in a research report entitled "Liquidity is the Achilles heel" distributed to Merrill Lynch clients Wednesday. "If liquidations occur in a weak market, then it is possible for CFC to go bankrupt," Mr. Bruce wrote. With $216 billion in assets and $202 billion in liabilities, Countrywide would be the largest chapter 11 filing in U.S. history by those measures. COVENTRY HEALTH: Prices $400 Million Senior Unsecured Notes ----------------------------------------------------------- Coventry Health Care Inc. priced a $400 million offering of 6.3% coupon rate senior unsecured notes due 2014. The notes will rank equal in right of payment to all of Coventry's existing and future senior debt, including its existing 5.875% senior notes due 2012, 6.125% senior notes due 2015, 5.95% senior notes due 2017, and existing credit facility. Standard & Poor's Ratings Services assigned its "BBB" senior unsecured debt rating, Fitch Ratings assigned its "BBB-" senior unsecured debt rating, and Moody's Investors Service assigned its "Ba1" senior unsecured debt rating to the notes. Coventry will use the net proceeds of the offering for general corporate purposes, which may include retiring existing indebtedness, acquisitions, repurchases of the company's capital stock, additions to working capital, and capital expenditures. The company planned acquisitions include acquisition of Florida Health Plan Administrators LLC, owner of Vista Healthplans. Goldman, Sachs & Co., Citi Markets & Banking, and J.P. Morgan Securities Inc. acted as Joint Bookrunners and RBS Greenwich Capital acted as Co-Manager. Headquartered in Bethesda, Maryland, Coventry Health Care Inc. (NYSE: CVH) -- http://www.cvty.com/-- is a national managed health care company operating health plans, insurance companies, network rental/managed care and workers' compensation services companies. Coventry provides a full range of risk and fee-based managed care products and services, including HMO, PPO, POS, Medicare Advantage, Medicare Prescription Drug Plans, Medicaid, Workers' Compensation services and Network Rental to a broad cross section of individuals, employer and government-funded groups, government agencies, and other insurance carriers and administrators in all 50 states as well as the District of Columbia and Puerto Rico. COVENTRY HEALTH: Moody's Puts "Ba1" Rating on Sr. Unsecured Debt ---------------------------------------------------------------- Moody's Investors Service assigned a Ba1 senior unsecured debt rating to Coventry Health Care Inc.'s issuance of $300 million of new long term debt. Moody's also assigned a provisional senior unsecured debt rating of (P)Ba1 to Coventry's shelf registration. Coventry maintains its shelf for general corporate purposes, including capital expenditures, acquisitions, and debt refinancing. The outlook on the ratings is stable. According to Moody's, Coventry plans to use the net proceeds from the new issuance to partially fund its recently announced acquisition of Vista Healthplans. In connection with the acquisition and the anticipated new debt, Moody's affirmed Coventry's ratings and changed the outlook to stable from positive on July 9, 2007. Coventry Health Care Inc., headquartered in Bethesda, Maryland, reported medical membership of 3.4 million and Part D Medicare membership of approximately 700,000 as of June 30, 2007. The company reported net income of $273 million on revenues of approximately $4.6 billion for the six months ending June 30, 2007. CREDIT SUISSE: Moody's Holds Junk Rating on Class Q Certs. ---------------------------------------------------------- Moody's Investors Service upgraded the ratings of four classes and affirmed these ratings of 15 classes of Credit Suisse First Boston Commercial Mortgage Corp., Commercial Mortgage Pass-Through Certificates, Series 2002-CKP1: -Class A-2, $52,347,147, affirmed at Aaa -Class A-3, $601,059,000, affirmed at Aaa -Class A-X, Notional, affirmed at Aaa -Class A-SP, Notional, affirmed at Aaa -Class B, $39,715,000, affirmed at Aaa -Class C, $13,652,000, affirmed at Aaa -Class D, $26,063,000, upgraded to Aaa from Aa1 -Class E, $14,893,000, upgraded to Aa2 from Aa3 -Class F, $13,652,000, upgraded to A1 from A2 -Class G, $14,893,000 upgraded to A2 from A3 -Class H, $14,893,000, affirmed at Baa1 -Class J-AD, $5,878,900, affirmed at Baa2 -Class K-Z, $13,978,099, affirmed at Ba1 -Class L, $16,134,000, affirmed at Ba2 -Class M, $8,688,000, affirmed at Ba3 -Class N, $7,447,000, affirmed at B1 -Class O, $8,687,000, affirmed at B2 -Class P, $4,965,000, affirmed at B3 -Class Q, $4,964,000, affirmed at Caa2 As of the August 17, 2007 distribution date, the transaction's aggregate certificate balance has decreased by approximately 11.9% to $875.1 million from $992.9 million at securitization. The Certificates are collateralized by 147 loans, ranging in size from less than 1.0% to 7.0% of the pool, with the top 10 loans representing 38.9% of the pool. Twenty-one loans, representing 16.2% of the pool, have defeased and are collateralized by U.S. Government securities. Ten loans have been liquidated from the pool resulting in an aggregate realized loss of approximately $2.9 million. Three loans, representing approximately 1.7% of the pool, are in special servicing. Moody's is estimating an aggregate loss of $2.5 million from these specially serviced loans. Thirty eight loans, representing 14.3% of the pool, are on the master servicer's watchlist. Moody's was provided with year-end 2006 operating results for 98.0% of the pool, excluding the defeased loans. Moody's weighted average loan to value ratio is 83.5%, compared to 85.8% at Moody's last full review in March 2006 and compared to 87.9% at securitization. Moody's is upgrading Classes D, E, F, and G due to defeasance, stable overall pool performance and increased credit support. The top three loans represent 18.1% of the pool. The largest loan is the Metroplex West Loan ($61.6 million -- 7.0%), which is secured by a 477,000 square foot power center located in Plymouth Meeting, Pennsylvania. The property is 100.0% occupied, the same as at last review and at securitization. The largest tenants are Giant Foods, Best Buy and Dick's Sporting Goods. The center is also shadow-anchored by Target and Lowe's. Moody's LTV is 78.0%, compared to 80.8% at last review. The second largest loan is the 300 M Street Loan ($49.8 million - 5.7%), which is secured by a 280,000 square foot Class A office building located in Washington, D.C. The property is 100.0% occupied, the same as at last review and at securitization. The largest tenants are Litton Industries Inc. (33.0% NRA; lease expiration April 2011) and Lockheed Martin Corporation (26.0% NRA; lease expiration April 2011). Moody's LTV is 78.8%, compared to 83.3% at last review. The third largest loan is the Shops at Deerfield Loan ($47.2 million - 5.4%), which is secured by a mixed-use property that includes 170,000 square feet of retail and 67,000 square feet of office. The property is located in Deerfield, Illinois. The property is 100.0% occupied, the same as at last review. The retail space is anchored by Whole Foods (15.0% GLA; lease expiration September 2020) and Barnes & Noble (11.0% GLA; lease expiration April 2015). Moody's LTV is 86.0%, compared to 87.5% at last review. CREDIT SUISSE: Good Credit Levels Cue S&P to Affirm Ratings ----------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on 18 classes of commercial mortgage pass-through certificates from Credit Suisse First Boston Mortgage Securities Corp.'s series 2004-C2. The affirmed ratings reflect credit enhancement levels that provide adequate support through various stress scenarios. As of the Aug. 17, 2007, remittance report, the collateral pool consisted of 107 loans with an aggregate trust balance of $923 million, down from 109 loans totaling $966.8 million at issuance. The master servicer, KeyBank Real Estate Capital Inc., reported financial information for 100% of the nondefeased loans. Ninety-four percent of the servicer-provided information was full- year 2006 data. Using this information, Standard & Poor's calculated a weighted average debt service coverage of 1.58x, up from 1.56x at issuance. All of the loans in the pool are current and no loans are with the special servicer, LNR Partners Inc. To date, the trust has not experienced any losses. The top 10 exposures secured by real estate have an aggregate outstanding balance of $475.2 million (51%) and a weighted average DSC of 1.61x, up from 1.59x at issuance. Standard & Poor's reviewed property inspections provided by the master servicer for all of the assets underlying the top 10 exposures. One property was characterized as "excellent," while the remaining collateral was characterized as "good." Credit characteristics for the Beverly Center, 230 Park Avenue South, and Valley Hills Mall loans are consistent with investment- grade obligations. Credit characteristics for the Energy Centre loan are no longer consistent with those of an investment-grade obligation. Details of these loans are: -- The largest exposure in the pool, the Beverly Center loan, has a trust balance of $82.8 million (9%) and a whole-loan balance of $340.8 million. The pari passu loan is secured by the leasehold interest in an 855,015- sq.-ft. regional mall in Los Angeles. For the nine months ended Sept. 30, 2006, the DSC was 2.06x and occupancy was 93%. Standard & Poor's adjusted net cash flow for this loan is comparable with its expected level at issuance. -- The second-largest exposure in the pool, the 230 Park Avenue South loan, has a balance of $77.8 million (8%). The loan is secured by the fee interest in a 341,125-sq.- ft. office property in Manhattan. For the year ended Dec. 31, 2006, the DSC was 1.53x and occupancy was 100%. Standard & Poor's adjusted NCF for this loan is comparable with its level at issuance. -- The fourth-largest exposure in the pool, the Valley Hills Mall, has a balance of $58.7 million (6%). The loan is secured by the fee interest in a 293,670-sq.-ft. of a 905,186-sq.-ft. regional mall in Hickory, North Carolina. For the year ended Dec. 31, 2006, the DSC was 1.87x and occupancy was 98%. Standard & Poor's adjusted NCF for this loan is down 9% since issuance. -- The sixth-largest exposure in the pool, the Energy Centre loan, has a balance of $51.4 million. The loan is secured by the fee interest in a 762,131-sq.-ft office property in New Orleans, Louisiana. For the year ended Dec. 31, 2006, the DSC was 1.52x and occupancy was 97%. Standard & Poor's adjusted NCF for this loan is down 34% since issuance. The decline in Standard & Poor's adjusted NCF is due to the 34% increase in operating expenses, which is primarily attributed to a 607% increase in the cost of insurance. The current policy provides $100 million in coverage and is in effect until June 1, 2008. -- The fifth-largest exposure in the pool, the Airport Plaza loan, has a balance of $52.7 million and was transferred to the special servicer in July 2004 due to a mechanics lien. The loan was then returned to KeyBank in November 2004 as a corrected loan. KeyBank reported a watchlist of 15 loans ($57.4 million, 6%). The Park 270 II loan is the largest loan on the watchlist. The loan has an outstanding balance of $12.7 million (1%) and is secured by a 151,277-sq.-ft. office property in Maryland Heights, Mo. As of Aug. 1, 2007, the property was 88% occupied. For the year ended Dec. 31, 2006, the DSC for this loan was 1.12x. The loan is on the watchlist because the DSC has decreased since issuance, which is primarily attributable to the fact that the loan's interest- only period has ended. Standard & Poor's stressed the loans on the watchlist and the other loans with credit issues as part of its analysis. The resultant credit enhancement levels support the rating affirmations. Ratings affirmed are: CSFB Mortgage Securities Corp. Commercial mortgage pass-through certificates series 2004-C2 Class Rating Credit enhancement ----- ------ ---------------- A-1 AAA 14.40 A-1A AAA 14.40 A-2 AAA 14.40 B AA 11.52 C AA- 10.34 D A 8.12 E A- 7.07 F BBB+ 6.02 G BBB 4.98 H BBB- 3.80 J BB+ 3.14 K BB 2.75 L BB- 2.36 M B+ 1.70 N B 1.44 O B- 1.31 A-X AAA N/A A-SP AAA N/A CREDIT SUISSE: S&P Assigns Low-B Ratings on Six Cert. Classes ------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary ratings to Credit Suisse Commercial Mortgage Trust Series 2007- C4's $2.08 billion commercial mortgage pass-through certificates series 2007-C4. The preliminary ratings are based on information as of Aug. 22, 2007. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect the credit support provided by the subordinate classes of certificates, the liquidity provided by the trustee, the economics of the underlying loans, and the geographic and property type diversity of the loans. Classes A-1, A-2, A-3, A-AB, A-4, A-1-A, A-M, A-1-AM, A-J, A-1-AJ, and A-SP are currently being offered publicly. Standard & Poor's analysis determined that, on a weighted average basis, the collateral pool has a debt service coverage of 1.18x, a beginning LTV of 118.2%, and an ending LTV of 113.7%. Preliminary Ratings Assigned Credit Suisse Commercial Mortgage Trust Series 2007-C4 Class Rating Amount Recommended credit Support ----- ------ ------ ------------------ A-1 AAA $25,500,000 30.00% A-2 AAA $219,200,000 30.00% A-3 AAA $333,792,000 30.00% A-AB AAA $36,935,000 30.00% A-4 AAA $565,719,000 30.00% A-1-A AAA $277,907,000 30.00% A-M AAA $50,000,000 20.00% A-1-AM AAA $158,436,000 20.00% A-J AAA $50,000,000 14.63% A-1-AJ AAA $62,035,000 14.63% A-SP AAA N/A N/A B AA+ $23,449,000 13.50% C AA $28,660,000 12.13% D AA- $23,449,000 11.00% E A+ $18,238,000 10.13% F A $18,238,000 9.25% G A- $20,844,000 8.25% H BBB+ $20,844,000 7.25% J BBB $26,054,000 6.00% K BBB- $28,660,000 4.63% L BB+ $20,844,000 3.63% M BB $7,816,000 3.25% N BB- $5,211,000 3.00% O B+ $5,211,000 2.75% P B $5,211,000 2.50% Q B- $7,816,000 2.13% S NR $44,293,285 0.00% A-X* AAA $2,084,362,285 N/A *Interest-only class with a notional amount. N/A -- Not applicable. NR -- Not rated. CWABS INC: S&P Takes Rating Actions on Various Cert. Classes ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its ratings on 26 classes from 16 CWABS Inc. and CWABS Asset Backed Certificates Trust transactions. Additionally, S&P lowered its ratings on three classes -- one each from the CWABS Asset Backed Certificates Trust 2002-BC2, 2002-BC3, and 2005-AB2 series -- and removed them from CreditWatch with negative implications. Concurrently, S&P affirmed its ratings on the remaining classes from 120 CWABS Inc., CWABS Asset Backed Certificates, and CWABS Asset Backed Notes Trust transactions. The lowered ratings on the 23 classes from 11 CWABS Inc. transactions reflect current collateral performance that has reduced available credit enhancement. As of the July 2007 distribution period, all of these deals were experiencing greater- than-expected severe delinquencies (90-plus days, foreclosures, and REOs) as a percentage of their current pool balances when compared with current credit support. For these 11 transactions, severe delinquencies ranged from 9.17% (series 2003-BC6) to 20.07% (series 2003-4) of the current pool balances, while total delinquencies ranged from 15.86% (series 2003-BC6) to 38.54% (series (2002-BC1) of the current pool balances. Additionally, the 23 downgraded classes have current credit support that is lower than the original credit support, and future credit enhancement is projected to be negative or significantly lower than the original credit support for each class. Projected credit support reflects the actual credit support minus projected losses on present delinquencies. Nine of the 11 transactions have subordination, overcollateralization, and excess interest as credit support, and these nine deals have O/C that is below their target levels. Moreover, the loan amounts in the foreclosure and REO classifications for these nine deals range from 2.63x (series 2003 BC1) to 5.17x (series 2002-BC3) of the O/C levels. Cumulative losses range from 0.33% (series 2003-4) to 2.39% (series 2002-BC3) of the original pool balances. S&P lowered its ratings on six classes from six CWABS Asset Backed Certificates Trust transactions because recent negative performance has eroded credit support. As of the July 2007 remittance period, monthly net losses significantly outpaced the monthly excess interest amount for all six deals, and this has been the predominant trend for the past six months. Additionally, the transactions have been experiencing higher-than-expected severe delinquencies and O/C targets are not being met. The six downgraded classes have current credit support that is lower than the original credit support, and future credit enhancement is projected to be negative or significantly lower than the original credit support. As of the July 2007 remittance period, these deals experienced total delinquencies that ranged from 14.01% (series 2004-AB1) to 23.13% (series 2005-5) of the current pool balances, while severe delinquencies ranged from 9.48% (series 2005-AB2) to 12.62% (series 2005-5) of the current pool balances. Cumulative losses range from 0.25% (series 2005-AB2) to 0.56% (series 2004-11) of the respective original pool balances. Standard & Poor's will continue to closely monitor the performance of the transactions with ratings on CreditWatch negative (classes B-1 and B-2 from series 2002-4 and class M-8 from series 2006- ABC1). If losses decline to a point at which credit enhancement is not further eroded, S&P will affirm the ratings on these classes and remove them from CreditWatch. Conversely, if losses and delinquencies continue to reduce credit support, S&P will likely take further negative rating actions on these classes. The affirmed ratings reflect adequate actual and projected credit enhancement that is sufficient to support the certificates at the current rating levels. Subordination, excess interest, and O/C provide credit support for most of the CWABS transactions. However, some deals only have subordination as credit support. In addition, Countrywide Financial Corp. provides a corporate guarantee for some of the series. The collateral predominantly backing the certificates originally consisted of subprime fixed- and adjustable-rate, first- and second-lien mortgage loans with terms of maturity of no more than 30 years. The series from the CWABS Asset Backed Notes Trust are backed by reperforming or document deficient mortgage loans. Ratings Lowered CWABS Inc. Asset-backed certificates Rating ------ Series Class To From ------ ----- -- ---- 2002-BC1 M-1 A AA 2002-BC1 M-2 B A 2002-BC2 M-2 A AA 2002-BC3 M-2 BB A 2003-4 M-3 BBB A 2003-4 M-4 BBB- A- 2003-4 M-5 BB BBB+ 2003-BC1 B-1 BB BBB+ 2003-BC2 M-2 BB AA 2003-BC2 M-3 B A 2003-BC2 B-1 B BBB 2003-BC3 M-3 BBB AA- 2003-BC3 M-4 BB A+ 2003-BC3 M-5 BB A 2003-BC3 M-6 BB- A- 2003-BC6 M-4 BBB- A- 2003-BC6 M-5 B BBB 2003-BC6 B CCC BBB- 2004-2 B BB BBB- 2004-4 B BB BBB 2004-BC1 B BB BBB- CWABS Asset Backed Certificates Trust Asset-backed certificates Rating ------ Series Class To From ------ ----- -- ---- 2004-AB1 B B A 2004-AB2 B B BBB+ 2004-11 B BB BBB- 2005-AB1 B BB BBB 2005-5 M-7 BBB A Ratings Lowered and Removed from Creditwatch Negative CWABS Inc. Asset-backed certificates Rating ------ Series Class To From ------ ----- -- ---- 2002-BC2 B-1 B BB/Watch Neg 2002-BC3 B-1 CCC BB/Watch Neg CWABS Asset Backed Certificates Trust Asset-backed certificates Rating ------ Series Class To From ------ ----- -- ---- 2005-AB2 B B BBB+/Watch Neg Ratings Affirmed and Remaining on Creditwatch Negative CWABS Inc. Asset-backed certificates Series Class Rating ------ ----- ------ 2002-4 B-1 BBB/Watch Neg 2002-4 B-2 BBB-/Watch Neg CWABS Asset Backed Certificates Trust Asset-backed certificates Series Class Rating ------ ----- ------ 2006-ABC1 M-8 A-/Watch Neg Ratings Affirmed CWABS Inc. Asset-backed certificates Series Class Rating ------ ----- ------ 2001-BC3 A, A-IO AAA 2001-BC3 M-1 AA+ 2001-BC3 M-2 AA- 2001-BC3 B-1 A 2001-BC3 B-2 BBB 2002-1 A, A-IO AAA 2002-1 M-1 AA+ 2002-1 M-2 AA- 2002-1 B-1 A+ 2002-1 B-2 BBB 2002-2 2-M-1 AA 2002-2 M-2 A 2002-2 B-1 BBB 2002-3 1-A-1, 2-A-1 AAA 2002-3 M-1 AA 2002-3 M-2 A 2002-3 B-1 BBB 2002-4 A-1 AAA 2002-4 M-1 AA 2002-4 M-2 A 2002-5 AF-6 AAA 2002-5 MV-1, MF-1 AA 2002-5 MV-2, MF-2 A 2002-5 BV, BF BBB 2002-6 AV-1, AF-5, AF-6 AAA 2002-6 M-1 AA 2002-6 M-2 A 2002-6 B BBB- 2002-BC1 A, A-IO AAA 2002-BC2 A, A-IO, M-1 AAA 2002-BC3 M-1 AA 2002-S1 A-4, A-5, A-IO AAA 2002-S1 M-1 AA 2002-S1 M-2 A 2002-S2 A-5, A-IO AAA 2002-S2 M-1 AA 2002-S2 M-2 A 2002-S3 A-5, A-IO AAA 2002-S3 M-1 AA 2002-S3 M-2 A 2002-S4 A-4, A-5, A-IO AAA 2002-S4 M-1 AA 2002-S4 M-2, B A 2002-SC1 A-IO AAA 2002-SC1 M-2, B-1 A 2003-1 3-A, 4-A AAA 2003-1 M-1 AA+ 2003-1 M-2 A 2003-1 B BBB+ 2003-2 3-A, 4-A AAA 2003-2 M-1 AA+ 2003-2 M-2 A+ 2003-3 1-A-5, 1-A-6, 2-A-2, 3-A AAA 2003-3 M-1, M-2, M-3 AA+ 2003-3 M-4 AA 2003-3 M-5 A+ 2003-3 M-6 A- 2003-3 B BBB 2003-4 A-2 AAA 2003-4 M-1 AA+ 2003-4 M-2 AA 2003-5 AF-5, AF-6 AAA 2003-5 MF-1 AA+ 2003-5 MV-1 AA 2003-5 MF-2 A+ 2003-5 MV-2 A 2003-5 MF-3, MV-3 A- 2003-5 MF-4, MV-4 BBB+ 2003-5 MF-5, MV-5 BBB 2003-5 BF, BV BBB- 2003-BC1 A-1, M-1 AAA 2003-BC1 M-2 A 2003-BC2 2-A-1 AAA 2003-BC2 M-1 AA+ 2003-BC3 A-2 AAA 2003-BC3 M-1 AA+ 2003-BC3 M-2 AA 2003-BC5 1-A, 2-A-2 AAA 2003-BC5 M-1 AA 2003-BC5 M-2 AA- 2003-BC5 M-3 A+ 2003-BC5 M-4 A 2003-BC5 M-5 A- 2003-BC5 M-6 BBB+ 2003-BC6 P AAA 2003-BC6 M-1 AA+ 2003-BC6 M-2 AA 2003-BC6 M-3 A+ 2003-S1 A-4, A-5, A-IO AAA 2003-S1 M-1 AA 2003-S1 M-2 A 2003-S2 A-3, A-4, A-5 AAA 2003-S2 M-1 AA 2003-S2 M-2 A 2003-S2 B-1 BBB 2003-SC1 M-1 AA+ 2003-SC1 M-2 A+ 2003-SC1 M-3 A 2003-SC1 M-4 A- 2003-SC1 M-5 BBB 2003-SC1 B BBB- 2004-1 1-A, 2-A, 3-A AAA 2004-1 M-1, M-2, M-3 AA+ 2004-1 M-4, M-5 AA 2004-1 M-6 A+ 2004-1 M-7 A 2004-1 M-8 BBB+ 2004-1 M-9 BBB 2004-1 B BB+ 2004-2 1-A, 2-A, 3-A-3, 3-A-4 AAA 2004-2 M-1 AA+ 2004-2 M-2, M-3 AA 2004-2 M-4 AA- 2004-2 M-5 A 2004-2 M-6 A- 2004-2 M-7 BBB+ 2004-3 1-A, 2-A, 3-A-3, 3-A-4, A AAA 2004-3 M-1, M-2 AA+ 2004-3 M-3, M-4 AA 2004-3 M-5 A+ 2004-3 M-6 A- 2004-3 M-7 BBB+ 2004-3 B BBB- 2004-4 1-A, 2-A, 3-A-2, A AAA 2004-4 M-1, M-2 AA+ 2004-4 M-3, M-4 AA 2004-4 M-5 AA- 2004-4 M-6 A 2004-4 M-7 A- 2004-5 1-A, 2-A, 3-A, 4-A-3, 4-A-4, A AAA 2004-5 M-1, M-2 AA+ 2004-5 M-3, M-4 AA 2004-5 M-5 AA- 2004-5 M-6 A 2004-5 M-7 BBB+ 2004-5 B BBB 2004-6 1-A-1, 1-A-2, 2-A-2, 2-A-3, 2-A-4, 2-A-5 AAA 2004-6 M-1, M-2, M-3, M-4 AA+ 2004-6 M-5, M-6 AA 2004-6 M-7 AA- 2004-6 M-8 A 2004-6 B A- 2004-BC1 M-1 AA+ 2004-BC1 M-2 AA 2004-BC1 M-3 A+ 2004-BC1 M-4 A 2004-BC1 M-5 BBB 2004-BC2 M-1 AA 2004-BC2 M-2 A+ 2004-BC2 M-3 A 2004-BC2 M-4 A- 2004-BC2 M-5 BBB 2004-BC2 B BBB- 2004-ECC1 M-1, M-2 AA 2004-ECC1 M-3 A+ 2004-ECC1 M-4 A 2004-ECC1 M-5 A- 2004-ECC1 M-6 BBB 2004-ECC1 B BBB- 2004-S1 A-2, A-3, A-IO AAA 2004-S1 M-1 AA 2004-S1 M-2 A 2004-S1 M-3 A- 2005-2 1-A-1, 1-A-2, 2-A-3, 2-A-4 AAA 2005-2 M-1, M-2, M-3 AA+ 2005-2 M-4 AA 2005-2 M-5 AA- 2005-2 M-6 A+ 2005-2 M-7 A CWABS Asset Backed Certificates Trust Asset-backed certificates Series Class Rating ------ ----- ------ 2004-AB1 1-A-1, 2-A-2, 2-A-3 AAA 2004-AB1 M-1 AA+ 2004-AB1 M-2, M-3 AA 2004-AB1 M-4 A+ 2004-AB2 A-2, A-3 AAA 2004-AB2 M-1, M-2 AA+ 2004-AB2 M-3, M-4 AA 2004-AB2 M-5, M-6 A+ 2004-BC3 M-1 AA+ 2004-BC3 M-2, M-3 AA 2004-BC3 M-4 AA- 2004-BC3 M-5 A+ 2004-BC3 M-6 A 2004-BC3 M-7 BBB+ 2004-BC3 M-8 BBB 2004-BC3 B BBB- 2004-BC4 1-A-1, 1-A-2, 2-A-3 AAA 2004-BC4 M-1 AA+ 2004-BC4 M-2, M-3 AA 2004-BC4 M-4 AA- 2004-BC4 M-5 A+ 2004-BC4 M-6 A 2004-BC4 M-7, M-8 BBB+ 2004-BC4 B BBB 2004-BC5 A-3 AAA 2004-BC5 M-1 AA+ 2004-BC5 M-2, M-3 AA 2004-BC5 M-4, M-5 A+ 2004-BC5 M-6 A- 2004-BC5 M-7 BBB+ 2004-BC5 M-8 BBB 2004-BC5 B BBB- 2004-ECC2 M-1, M-2 AA+ 2004-ECC2 M-3, M-4, M-5 AA 2004-ECC2 M-6 A+ 2004-ECC2 M-7 A 2004-ECC2 M-8 A- 2004-ECC2 B BBB 2004-7 2-AV-3, 2-AV-4, AF-4, AF-5, AF-6 AAA 2004-7 MV-1, MV-2, MV-3, MF-1, MF-2, MF-3 AA+ 2004-7 MV-4, MV-5, MF-4 AA 2004-7 MV-6, MF-5 AA- 2004-7 MV-7, BF A+ 2004-7 MV-8 A 2004-7 BV BBB+ 2004-8 1-A-1, 2-A-3 AAA 2004-8 M-1, M-2, M-3, M-4 AA+ 2004-8 M-5, M-6 AA 2004-8 M-7 AA- 2004-8 M-8 A+ 2004-8 B A 2004-9 AF-4, AF-5, AF-6, 1-AV-1, 2-AV-3 AAA 2004-9 MF-1, MF-2, MF-3, MF-4, MF-5 AA+ 2004-9 MV-1, MV-2, MV-3, MV-4, MV-5, MV-6 AA+ 2004-9 BF, MV-7, MV-8 AA 2004-9 BV AA- 2004-10 AF-4, AF-5A, AF-5B, AF-6, 2-AV-3 AAA 2004-10 MF-1, MF-2, MF-3, MF-4, MV-1, MV-2 AA+ 2004-10 MF-5, MF-6, MV-3, MV-4 AA 2004-10 MF-7, MV-5 AA- 2004-10 MV-6 A+ 2004-10 B-F, MV-7 A 2004-10 MV-8 A- 2004-10 BV BBB 2004-11 A-2, A-3 AAA 2004-11 M-1 AA+ 2004-11 M-2, M-3 AA 2004-11 M-4 AA- 2004-11 M-5 A+ 2004-11 M-6 A 2004-11 M-7 A- 2004-11 M-8 BBB+ 2004-12 AF-3, AF-4, AF-5, AF-6, 1-AV-1, 2-AV-3 AAA 2004-12 MF-1, MV-1 AA+ 2004-12 MF-2, MF-3, MV-2 AA 2004-12 MV-3 AA- 2004-12 MF-4, MV-4 A+ 2004-12 MF-5, MV-5 A 2004-12 MV-6 A- 2004-12 MF-6, MV-7 BBB+ 2004-12 MF-7, MV-8 BBB 2004-12 BF, B-V BBB- 2004-13 AF-3, AF-4, AF-5A, AF-5B, AF-6 AAA 2004-13 AV-2, AV-3, AV-4, AV-5 AAA 2004-13 MF-1, MV-1 AA+ 2004-13 MF-2, MV-2 AA 2004-13 MF-3, MV-3 AA- 2004-13 MF-4, MV-4 A+ 2004-13 MF-5, MV-5 A 2004-13 MF-6, MV-6 A- 2004-13 MF-7, MV-7 BBB+ 2004-13 MF-8, MV-8 BBB 2004-13 BF, BV BBB- 2004-14 A-3, A-4, A-5 AAA 2004-14 M-1, M-2, M-3 AA+ 2004-14 M-4 AA 2004-14 M-5 AA- 2004-14 B A+ 2004-15 AF-3, AF-4, AF-5, AF-6 AAA 2004-15 1-AV-1, 2-AV-2, 2-AV-3 AAA 2004-15 MF-1, MV-1 AA+ 2004-15 MF-2, MV-2 AA 2004-15 MF-3, MV-3 AA- 2004-15 MF-4, MV-4 A+ 2004-15 MF-5, MV-5 A 2004-15 MF-6, MV-6 A- 2004-15 MF-7, MV-7 BBB+ 2004-15 MF-8, MV-8 BBB 2004-15 BF, BV BBB- 2005-AB1 A-2, A-3 AAA 2005-AB1 M-1 AA+ 2005-AB1 M-2 AA 2005-AB1 M-3 AA- 2005-AB1 M-4 A+ 2005-AB1 M-5 A 2005-AB1 M-6 A- 2005-AB1 M-7 BBB+ 2005-AB2 1-A-1, 2-A-2, 2-A-3 AAA 2005-AB2 M-1, M-2 AA+ 2005-AB2 M-3 AA 2005-AB2 M-4 AA- 2005-AB2 M-5 A+ 2005-AB2 M-6 A 2005-AB2 M-7 A- 2005-AB3 1-A-1, 2-A-1, 2-A-2A, 2-A-2B, 2-A-3 AAA 2005-AB3 M-1 AA+ 2005-AB3 M-2, M-3 AA 2005-AB3 M-4, M-5 AA- 2005-AB3 M-6 A+ 2005-AB3 M-7 A 2005-AB3 M-8 A- 2005-AB3 B BBB+ 2005-BC1 1-A-1, 1-A-2 AAA 2005-BC1 M-1 AA+ 2005-BC1 M-2 AA 2005-BC1 M-3 AA- 2005-BC1 M-4 A+ 2005-BC1 M-5 A 2005-BC1 M-6 A- 2005-BC1 M-7 BBB+ 2005-BC1 M-8 BBB 2005-BC1 B BBB- 2005-BC2 1-A-1, 1-A-2, 2-A-3 AAA 2005-BC2 M-1 AA+ 2005-BC2 M-2, M-3 AA 2005-BC2 M-4 AA- 2005-BC2 M-5 A+ 2005-BC2 M-6 A 2005-BC2 M-7 A- 2005-BC2 M-8 BBB+ 2005-BC2 B BBB 2005-BC3 1-A-1, 1-A-2, 2-A-2, 2-A-3 AAA 2005-BC3 M-1 AA+ 2005-BC3 M-2 AA 2005-BC3 M-3 AA- 2005-BC3 M-4 A+ 2005-BC3 M-5 A 2005-BC3 M-6 A- 2005-BC3 M-7 BBB+ 2005-BC3 M-8 BBB 2005-BC3 B BBB- 2005-BC4 1-A, 2-A-2, 2-A-3 AAA 2005-BC4 M-1, M-2 AA+ 2005-BC4 M-3, M-4 AA 2005-BC4 M-5 AA- 2005-BC4 M-6 A+ 2005-BC4 M-7 A 2005-BC4 M-8 A- 2005-BC4 M-9, M-10 BBB+ 2005-BC4 B BBB- 2005-BC5 1-A, 2-A-1, 2-A-2, 3-A-2, 3-A-3 AAA 2005-BC5 M-1 AA+ 2005-BC5 M-2, M-3 AA 2005-BC5 M-4 AA- 2005-BC5 M-5 A+ 2005-BC5 M-6 A 2005-BC5 M-7 A- 2005-BC5 M-8 BBB+ 2005-BC5 B BBB 2005-IM2 A-2, A-3, A-3M, A-4 AAA 2005-IM2 M-1 AA+ 2005-IM2 M-2 AA 2005-IM2 M-3 AA- 2005-IM2 M-4 A+ 2005-IM2 M-5 A 2005-1 AF-3, AF-4, AF-5A, AF-5B, AF-6, 1-AV-2 AAA 2005-1 1-AV-3, 2-AV-1, 2-AV-2, 3-AV-2, 3-AV-3 AAA 2005-1 MF-1, MV-1 AA+ 2005-1 MF-2, MV-2 AA 2005-1 MF-3, MV-3 AA- 2005-1 MF-4, MV-4 A+ 2005-1 MF-5, MV-5 A 2005-1 MF-6, MV-6 A- 2005-1 MF-7, MV-7 BBB+ 2005-1 MF-8, MV-8 BBB 2005-1 BF, BV BBB- 2005-3 AF-3, AF-4, AF-5A, AF-5B, AF-6 AAA 2005-3 2-AV-1, 2-AV-2, 3-AV-3, 3-AV-4 AAA 2005-3 MF-1, MV-1 AA+ 2005-3 MF-2, MV-2 AA 2005-3 MF-3, MV-3 AA- 2005-3 MF-4, MV-4 A+ 2005-3 MF-5, MV-5 A 2005-3 MF-6, MV-6 A- 2005-3 MF-7, MV-7 BBB+ 2005-3 MF-8, MV-8 BBB 2005-3 BF, BV BBB- 2005-4 AF-3, AF-4, AF-5A, AF-5B, AF-6 AAA 2005-4 2-AV-1, 3-AV-2, 3-AV-3 AAA 2005-4 MF-1, MV-1 AA+ 2005-4 MF-2, MV-2 AA 2005-4 MF-3, MV-3 AA- 2005-4 MF-4, MV-4 A+ 2005-4 MF-5, MV-5 A 2005-4 MF-6, MV-6 A- 2005-4 MF-7, MV-7 BBB+ 2005-4 MF-8, MV-8 BBB 2005-4 BF, BV BBB- 2005-5 1-A, 2-A-2, 2-A-3 AAA 2005-5 M-1, M-2, M-3 AA+ 2005-5 M-4 AA 2005-5 M-5 AA- 2005-5 M-6 A+ 2005-6 1-A-1, 1-A-2, 2-A-2, 2-A-3 AAA 2005-6 M-1 AA+ 2005-6 M-2 AA 2005-6 M-3 AA- 2005-6 M-4 A+ 2005-6 M-5 A 2005-6 M-6 A- 2005-6 M-7 BBB+ 2005-6 M-8 BBB 2005-6 B BBB- 2005-7 AF-2, AF-3, AF-4, AF-5W, AF-6 AAA 2005-7 2-AV-1, 2-AV-2, 3-AV-2, 3-AV-3 AAA 2005-7 MF-1, MV-1 AA+ 2005-7 MF-2, MV-2 AA 2005-7 MF-3, MV-3 AA- 2005-7 MF-4, MV-4 A+ 2005-7 MF-5, MV-5 A 2005-7 MF-6, MV-6 A- 2005-7 MF-7, MV-7 BBB+ 2005-7 MF-8, MV-8 BBB 2005-7 BF, MV-9 BBB- 2005-7 BV BB+ 2005-8 1-A-1, 2-A-2, 2-A-3 AAA 2005-8 M-1 AA+ 2005-8 M-2 AA 2005-8 M-3 AA- 2005-8 M-4 A+ 2005-8 M-5 A 2005-8 M-6 A- 2005-8 M-7 BBB+ 2005-8 M-8 BBB 2005-8 B BBB- 2005-9 1-A-1, 2-A-3, 2-A-4, 2-A-4M, 2-A-5 AAA 2005-9 M-1 AA+ 2005-9 M-2 AA 2005-9 M-3 AA- 2005-9 M-4 A+ 2005-10 AF-2, AF-3, AF-4, AF-5, AF-6 AAA 2005-10 2-AV-1, 3-AV-1, 3-AV-2, 3-AV-3 AAA 2005-10 MF-1, MV-1 AA+ 2005-10 MF-2, MV-2 AA 2005-10 MF-3, MV-3 AA- 2005-10 MF-4, MV-4 A+ 2005-10 MF-5, MV-5 A 2005-10 MF-6, MV-6 A- 2005-10 MF-7, MV-7 BBB+ 2005-10 MF-8, MV-8 BBB 2005-10 BF, MV-9 BBB- 2005-10 MV-10 BB+ 2005-10 BV BB 2005-11 AF-1, AF-2, AF-3, AF-4, AF-5A, AF-5B AAA 2005-11 AF-6, 2-AV-1, 3-AV-1, 3-AV-2, 3-AV-3 AAA 2005-11 MF-1, MV-1 AA+ 2005-11 MF-2, MV-2 AA 2005-11 MF-3, MV-3 AA- 2005-11 MF-4, MV-4 A+ 2005-11 MF-5, MV-5 A 2005-11 MF-6, MV-6 A- 2005-11 MF-7, MV-7 BBB+ 2005-11 MF-8, MV-8 BBB 2005-11 BF, MV-9 BBB- 2005-11 BV BB+ 2005-11 1-A-1, 1-A-2, 1-A-3, 1-A-4, 1-A-5, 1-A-6 AAA 2005-12 2-A-2, 2-A-3, 2-A-4, 2-A-5, 3-A, 4-A AAA 2005-12 M-1 AA+ 2005-12 M-2 AA 2005-12 M-3 AA- 2005-12 M-4 A+ 2005-12 M-5 A 2005-12 M-6 A- 2005-12 M-7 BBB+ 2005-12 M-8 BBB 2005-12 B BBB- 2005-13 AF-1, AF-2, AF-3, AF-4, AF-5, AF-6 AAA 2005-13 2-AV-1, 3-AV-1, 3-AV-2, 3-AV-3, 3-AV-4 AAA 2005-13 MF-1, MF-2, MV-1 AA+ 2005-13 MF-3, MF-4, MV-2, MV-3 AA 2005-13 MV-4 AA- 2005-13 MF-5, MV-5 A+ 2005-13 MF-6, MV-6 A 2005-13 MF-7, MV-7 A- 2005-13 MF-8, MV-8 BBB+ 2005-13 BF, BV BBB- 2005-14 1-A-1, 2-A-1, 2-A-2, 3-A-1, 3-A-2, 3-A-3 AAA 2005-14 M-1 AA+ 2005-14 M-2 AA 2005-14 M-3 AA- 2005-14 M-4 A+ 2005-14 M-5 A 2005-14 M-6 A- 2005-14 M-7 BBB+ 2005-14 M-8 BBB 2005-14 B BBB- 2005-15 1-AF-1, 1-AF-2, 1-AF-3, 1-AF-4 AAA 2005-15 1-AF-5, 1-AF-6, 2-AV-2, 2-AV-3 AAA 2005-15 M-1 AA+ 2005-15 M-2 AA 2005-15 M-3 AA- 2005-15 M-4 A+ 2005-15 M-5 A 2005-15 M-6 A- 2005-15 M-7 BBB+ 2005-15 M-8 BBB 2005-15 B BBB- 2005-16 3-AV, 4-AV-1, 4-AV-2, 4-AV-3 AAA 2005-16 4-AV-4, 1-AF, 2-AF-1, 2-AF-2 AAA 2005-16 2-AF-3, 2-AF-4, 2-AF-5 AAA 2005-16 MV-1 AA+ 2005-16 MV-2 AA 2005-16 MV-3 AA- 2005-16 MV-4 A+ 2005-16 MV-5 A 2005-16 MV-6 A- 2005-16 MV-7 BBB+ 2005-16 MV-8, BF BBB 2005-16 BV BBB- 2005-17 2-AV, 3-AV-1, 3-AV-2, 4-AV-1, 4-AV-2A AAA 2005-17 4-AV-2B, 4-AV-3, 1-AF-1, 1-AF-2 AAA 2005-17 1-AF-3, 1-AF-4, 1-AF-5 AAA 2005-17 MV-1 AA+ 2005-17 MV-2 AA 2005-17 MV-3 AA- 2005-17 MV-4 A+ 2005-17 MV-5 A 2005-17 MV-6 A- 2005-17 MV-7 BBB+ 2005-17 MV-8, BF BBB 2005-17 BV BBB- 2006-ABC1 A-1, A-2, A-3 AAA 2006-ABC1 M-1, M-2, M-3 AA+ 2006-ABC1 M-4, M-5 AA 2006-ABC1 M-6 AA- 2006-ABC1 M-7 A+ 2006-BC1 1-A, 2-A-1, 2-A-2, 2-A-3 AAA 2006-BC1 M-1 AA+ 2006-BC1 M-2 AA 2006-BC1 M-3 AA- 2006-BC1 M-4 A+ 2006-BC1 M-5 A 2006-BC1 M-6 A- 2006-BC1 M-7 BBB+ 2006-BC1 M-8 BBB 2006-BC1 B BBB- 2006-BC2 1-A, 2-A-1, 2-A-2, 2-A-3, 2-A-4 AAA 2006-BC2 M-1 AA+ 2006-BC2 M-2 AA 2006-BC2 M-3 AA- 2006-BC2 M-4 A+ 2006-BC2 M-5 A 2006-BC2 M-6 A- 2006-BC2 M-7 BBB+ 2006-BC2 M-8 BBB 2006-BC2 M-9 BBB- 2006-BC2 B BB+ 2006-BC3 1-A, 2-A-1, 2-A-2, 2-A-3 AAA 2006-BC3 M-1 AA+ 2006-BC3 M-2 AA 2006-BC3 M-3 AA- 2006-BC3 M-4 A+ 2006-BC3 M-5 A 2006-BC3 M-6 A- 2006-BC3 M-7 BBB+ 2006-BC3 M-8 BBB 2006-BC3 M-9 BBB- 2006-BC3 B BB+ 2006-BC4 1-A, 2-A-1, 2-A-2, 2-A-3 AAA 2006-BC4 M-1 AA+ 2006-BC4 M-2 AA 2006-BC4 M-3 AA- 2006-BC4 M-4 A+ 2006-BC4 M-5 A 2006-BC4 M-6 A- 2006-BC4 M-7 BBB+ 2006-BC4 M-8 BBB 2006-BC4 M-9 BBB- 2006-BC4 B BB+ 2006-BC5 1-A, 2-A-1, 2-A-2, 2-A-3, 2-A-4 AAA 2006-BC5 M-1 AA+ 2006-BC5 M-2, M-3 AA 2006-BC5 M-4 A+ 2006-BC5 M-5 A 2006-BC5 M-6 A- 2006-BC5 M-7 BBB+ 2006-BC5 M-8 BBB 2006-BC5 M-9 BBB- 2006-BC5 B BB+ 2006-QH1 A-1-A, A-1-B, A-2 AAA 2006-QH1 M-1 AA 2006-SPS1 A AAA 2006-SPS1 M-1 AA+ 2006-SPS1 M-2, M-3 AA 2006-SPS1 B CCC 2006-SPS2 A AAA 2006-SPS2 M-1 AA+ 2006-SPS2 M-2 AA 2006-SPS2 M-3 AA- 2006-SPS2 M-4 A+ 2006-SPS2 M-5 A 2006-SPS2 M-6 A- 2006-1 AF-1, AF-2, AF-3, AF-4, AF-5, AF-6 AAA 2006-1 AV-1, AV-2, AV-3 AAA 2006-1 MF-1, MF-2, MV-1, MV-2 AA+ 2006-1 MF-3, MV-3 AA 2006-1 MF-4, MV-4 AA- 2006-1 MF-5, MV-5 A+ 2006-1 MF-6, MF-7, MV-6, MV-7 A 2006-1 MF-8, MV-8 A- 2006-1 BF, BV BBB+ 2006-2 1-A-1, 2-A-1, 2-A-2, 2-A-3, 2-A-4 AAA 2006-2 M-1 AA+ 2006-2 M-2, M-3 AA 2006-2 M-4 AA- 2006-2 M-5 A+ 2006-2 M-6 A 2006-2 M-7 A- 2006-2 M-8 BBB+ 2006-2 B BBB 2006-3 1-A, 2-A-1, 2-A-2, 2-A-3, 3-A-1, 3-A-2 AAA 2006-3 M-1 AA+ 2006-3 M-2 AA 2006-3 M-3 AA- 2006-3 M-4 A+ 2006-3 M-5 A 2006-3 M-6 A- 2006-3 M-7 BBB+ 2006-3 M-8 BBB 2006-3 B BBB- 2006-4 1-A-1, 1-A-1M, 2-A-1, 2-A-2, 2-A-3 AAA 2006-4 M-1, M-2 AA+ 2006-4 M-3 AA 2006-4 M-4 AA- 2006-4 M-5 A+ 2006-4 M-6 A 2006-4 M-7 A- 2006-4 M-8 BBB+ 2006-4 B BBB 2006-5 1-A, 2-A-1, 2-A-2, 2-A-3 AAA 2006-5 M-1 AA+ 2006-5 M-2 AA 2006-5 M-3 AA- 2006-5 M-4 A+ 2006-5 M-5 A 2006-5 M-6 A- 2006-5 M-7 BBB+ 2006-6 1-A-1, 1-A-1M, 2-A-1, 2-A-2, 2-A-3 AAA 2006-6 M-1 AA 2006-6 M-2 AA- 2006-6 M-3 A+ 2006-6 M-4 A 2006-6 M-5 A- 2006-6 M-6 BBB+ 2006-7 1-A, 2-A-1, 2-A-2, 2-A-3, 2-A-4 AAA 2006-7 M-1 AA+ 2006-7 M-2, M-3 AA 2006-7 M-4 AA- 2006-7 M-5 A+ 2006-7 M-6 A 2006-7 M-7 BBB+ 2006-8 1-A, 2-A-1, 2-A-2, 2-A-3, 2-A-4 AAA 2006-8 M-1 AA+ 2006-8 M-2 AA 2006-8 M-3 AA- 2006-8 M-4 A+ 2006-8 M-5 A 2006-8 M-6 A- 2006-8 M-7 BBB+ 2006-8 M-8 BBB 2006-8 M-9 BBB- 2006-9 1-AF-1, 1-AF-2, 1-AF-3, 1-AF-4, 1-AF-5 AAA 2006-9 1-AF-6, 2AV, 3AV-1, 3AV-2, 3AV-3, 3AV-4 AAA 2006-9 MF-1, MV-1 AA+ 2006-9 MF-2, MV-2 AA 2006-9 MF-3, MV-3 AA- 2006-9 MF-4, MV-4 A+ 2006-9 MF-5, MV-5 A 2006-9 MF-6, MV-6 A- 2006-9 MF-7, MV-7 BBB+ 2006-9 MF-8, MV-8 BBB 2006-9 BF, BV BBB- 2006-10 1-AF-1, 1-AF-2, 1-AF-3, 1-AF-4, 1-AF-5 AAA 2006-10 1-AF-6, 2AV, 3AV-1, 3AV-2, 3AV-3, 3AV-4 AAA 2006-10 MF-1, MV-1 AA+ 2006-10 MF-2, MV-2 AA 2006-10 MF-3, MV-3 AA- 2006-10 MF-4, MV-4 A+ 2006-10 MF-5, MV-5 A 2006-10 MF-6, MV-6 A- 2006-10 MF-7, MV-7 BBB+ 2006-10 MF-8, MV-8 BBB 2006-10 BF BBB- 2006-11 1-AF-1, 1-AF-2, 1-AF-3, 1-AF-4, 1-AF-5 AAA 2006-11 1-AF-6, 2AV, 3AV-1, 3AV-2, 3AV-3 AAA 2006-11 MV-1 AA+ 2006-11 MV-2 AA 2006-11 MV-3 AA- 2006-11 MV-4 A+ 2006-11 MV-5 A 2006-11 MV-6 A- 2006-11 MV-7 BBB+ 2006-11 MV-8 BBB 2006-11 BV BBB- 2006-13 1-AF-1, 1-AF-2, 1-AF-3, 1-AF-4, 1-AF-5 AAA 2006-13 1-AF-6, 2AV, 3AV-1, 3AV-2, 3AV-3 AAA 2006-13 MV-1 AA+ 2006-13 MV-2, MV-3 AA 2006-13 MV-4 AA- 2006-13 MV-5 A+ 2006-13 MV-6 A 2006-13 MV-7 BBB+ 2006-13 MV-8 BBB 2006-13 BV BBB- 2006-14 1-A, 2-A-1, 2-A-2, 2-A-3 AAA 2006-14 M-1 AA+ 2006-14 M-2 AA 2006-14 M-3 AA- 2006-14 M-4 A+ 2006-14 M-5 A 2006-14 M-6 A- 2006-14 M-7 BBB+ 2006-14 M-8 BBB 2006-14 M-9 BBB- 2006-14 B BB+ 2006-15 A-1, A-2, A-3, A-4, A-5A, A-5B, A-6 AAA 2006-15 M-1 AA+ 2006-15 M-2 AA 2006-15 M-3 AA- 2006-15 M-4 A+ 2006-15 M-5 A 2006-15 M-6 A- 2006-15 M-7 BBB+ 2006-15 M-8 BBB 2006-15 B BBB- 2006-16 1-A, 2-A-1, 2-A-2, 2-A-3 AAA 2006-16 M-1 AA+ 2006-16 M-2 AA 2006-16 M-3 AA- 2006-16 M-4 A+ 2006-16 M-5 A 2006-16 M-6 A- 2006-16 M-7 BBB+ 2006-16 M-8 BBB 2006-16 M-9 BBB- 2006-16 B BB+ 2006-17 1-A, 2-A-1, 2-A-2, 2-A-3 AAA 2006-17 M-1 AA+ 2006-17 M-2 AA 2006-17 M-3 AA- 2006-17 M-4 A+ 2006-17 M-5 A 2006-17 M-6 A- 2006-17 M-7 BBB+ 2006-17 M-8 BBB 2006-17 M-9 BBB- 2006-17 B BB+ 2006-18 1-A, 2-A-1, 2-A-2, 2-A-3 AAA 2006-18 M-1 AA+ 2006-18 M-2 AA 2006-18 M-3 AA- 2006-18 M-4 A+ 2006-18 M-5 A 2006-18 M-6 A- 2006-18 M-7 BBB+ 2006-18 M-8 BBB 2006-18 M-9 BBB- 2006-18 B BB+ 2006-19 1-A, 2-A-1, 2-A-2, 2-A-3 AAA 2006-19 M-1 AA+ 2006-19 M-2 AA 2006-19 M-3 AA- 2006-19 M-4 A+ 2006-19 M-5 A 2006-19 M-6 A- 2006-19 M-7 BBB+ 2006-19 M-8 BBB 2006-19 M-9 BBB- 2006-19 B BB+ 2006-20 1-A, 2-A-1, 2-A-2, 2-A-3, 2-A-4 AAA 2006-20 M-1 AA+ 2006-20 M-2, M-3, M-4 AA 2006-20 M-5 A+ 2006-20 M-6 A 2006-20 M-7 A- 2006-20 M-8 BBB+ 2006-20 M-9 BBB 2006-20 B BBB- 2006-21 1-A, 2-A-1, 2-A-2, 2-A-3, 2-A-4 AAA 2006-21 M-1 AA+ 2006-21 M-2, M-3 AA 2006-21 M-4 AA- 2006-21 M-5 A+ 2006-21 M-6 A 2006-21 M-7 A- 2006-21 M-8 BBB+ 2006-21 M-9 BBB 2006-21 B BBB- 2006-22 1-A, 2-A-1, 2-A-2, 2-A-3, 2-A-4 AAA 2006-22 M-1 AA+ 2006-22 M-2, M-3 AA 2006-22 M-4 AA- 2006-22 M-5 A+ 2006-22 M-6 A 2006-22 M-7, M-8 BBB+ 2006-22 M-9 BBB 2006-22 B BBB- 2006-24 1-A, 2-A-1, 2-A-2, 2-A-3, 2-A-4 AAA 2006-24 M-1 AA+ 2006-24 M-2 AA 2006-24 M-3 AA- 2006-24 M-4 A+ 2006-24 M-5 A 2006-24 M-6 A- 2006-24 M-7 BBB+ 2006-24 M-8 BBB 2006-24 M-9 BBB- 2006-24 B BB+ 2006-25 1-A, 2-A-1, 2-A-2, 2-A-3, 2-A-4 AAA 2006-25 M-1 AA+ 2006-25 M-2 AA 2006-25 M-3 AA- 2006-25 M-4 A+ 2006-25 M-5 A 2006-25 M-6 A- 2006-25 M-7 BBB+ 2006-25 M-8 BBB 2006-25 M-9 BBB- 2006-25 B BB+ 2006-26 1-A, 2-A-1, 2-A-2, 2-A-3, 2-A-4 AAA 2006-26 M-1 AA+ 2006-26 M-2 AA 2006-26 M-3 AA- 2006-26 M-4 A+ 2006-26 M-5 A 2006-26 M-6 A- 2006-26 M-7 BBB+ 2006-26 M-8 BBB 2006-26 M-9 BBB- 2006-26 B BB+ CWABS Asset Backed Notes Trust Asset-backed certificates Series Class Rating ------ ----- ------ 2004-SD3 A-1, A-2 AAA 2004-SD3 M-1 AA+ 2004-SD3 M-2 AA 2004-SD3 M-3 A- 2004-SD3 B-1 BBB+ 2004-SD4 A-1, A-2 AAA 2004-SD4 M-1 AA+ 2004-SD4 M-2 A+ 2004-SD4 M-3 BBB+ 2004-SD4 B-1 BBB- 2005-SD1 A-1-C, A-2 AAA 2005-SD1 M-1 AA+ 2005-SD1 M-2 AA- 2005-SD1 M-3 A- 2005-SD1 B-1 BBB+ 2005-SD2 A-1-C, A-2 AAA 2005-SD2 M-1 AA+ 2005-SD2 M-2 AA 2005-SD2 M-3 A+ 2005-SD2 M-4 A 2005-SD2 M-5 BBB 2005-SD2 B-1 BBB- 2005-SD3 A-1, A-1-B, A-1-C, A-2 AAA 2005-SD3 M-1 AA+ 2005-SD3 M-2 AA 2005-SD3 M-3 A+ 2005-SD3 M-4 A 2005-SD3 M-5 BBB+ 2005-SD3 M-6 BBB 2005-SD3 B-1 BBB- 2006-SD1 A-1, A-2 AAA 2006-SD1 M-1 AA+ 2006-SD1 M-2 AA 2006-SD1 M-3 A+ 2006-SD1 M-4 A 2006-SD1 M-5 BBB+ 2006-SD1 M-6 BBB 2006-SD1 B-1 BBB- 2006-SD2 1-A-1, 1-A-2, 1-A-3, 2-A-1-A AAA 2006-SD2 2-A-1-B, 2-A-2 AAA 2006-SD2 1-M-1 AA+ 2006-SD2 1-M-2, 2-M-1 AA 2006-SD2 1-M-3 A+ 2006-SD2 1-M-4 A 2006-SD2 1-M-5 BBB+ 2006-SD2 1-M-6 BBB 2006-SD2 1-B-1 BBB- 2006-SD3 A-1 AAA 2006-SD3 M-1 AA+ 2006-SD3 M-2 AA 2006-SD3 M-3 A+ 2006-SD3 M-4 A 2006-SD3 M-5 BBB+ 2006-SD3 M-6 BBB 2006-SD3 B-1 BBB- CYBER DEFENSE: June 30 Balance Sheet Upside-Down by $22.2 Million ----------------------------------------------------------------- Cyber Defense Systems Inc.'s consolidated balance sheet at June 30, 2007, showed $5.7 million in total assets, $27.5 million in total liabilities, and $447,746 in minority interest, resulting in a $22.2 million total stockholders' deficit. The company's consolidated balance sheet at June 30, 2007, also showed strained liquidity with $3.1 million in total current assets available to pay $26.0 million in total current liabilities. Cyber Defense Systems Inc. reported a net loss of $3.6 million and a loss from operations of $1.1 million for the second quarter ended June 30, 2007, compared with net income of $977,238 and a loss from operations of $2.6 million for the same period ended June 30, 2006. Revenues for the quarter ended June 30, 2007, were $94,240 as compared to $136,223 for the quarter ended June 30, 2006, a decrease of $41,983. The decrease is primarily due to lower sales of TSI somewhat offset by higher sales of Cyber. The decrease in operating loss is mainly due to a decrease in general and administrative expenses, partly offset by an increase in research and development expense. In addition, the company did not incur any stock compensation expense during the quarter, compared to $350,584 in the quarter ended June 30, 2006. The swing to a net loss primarily reflects a derivative valuation loss of $1.7 million during the quarter ended June 30, 2007, compared with a derivative valuation gain of $4.5 million during the same period in 2006. Research and development costs relative to the development of the company's airships and UAV's totaled $232,819 for the quarter ended June 30, 2007, an increase of $161,944 from the quarter ended June 30, 2006, amount of $70,875. The increase is primarily due to increased research and development efforts related to TSI's airships in the quarter ended June 30, 2007. General and administrative expenses totaled $887,005 for the quarter ended June 30, 2007, as compared to $2.3 million for the quarter ended June 30, 2006, a net decrease of $1.4 million. The decrease is primarily due to decreased equity compensation expense of $353,216, decreased amortization expense of approximately $123,000 and net decreases of approximately $933,000 in salaries and general overheads due to lower levels of operations in the quarter ended June 30, 2007. Interest expense for the quarter ended June 30, 2007, was $775,145. Interest expense for the quarter ended June 30, 2006, was $862,770. The derivative valuation loss for the quarter ended June 30, 2007, in the amount of $1.7 million relates to the issuance and revaluation of Notes and Warrants to AJW and Mr. Robinson treated as derivative securities. The derivative valuation gain for the quarter ended June 30, 2006, in the amount of $4.5 million relates to the issuance and revaluation of Notes and Warrants to AJW, Mr. Robinson, Mr. Lively and James Gardiner treated as derivative securities. Full-text copies of the company's consolidated financial statements for the quarter ended June 30, 2007, are available for free at http://researcharchives.com/t/s?22df Going Concern Doubt As reported in the Troubled Company Reporter on May 24, 2007, Hansen, Barnett & Maxwell P.C., in Salt Lake City, Utah, expressed substantial doubt about Cyber Defense Systems Inc.'s ability to continue as a going concern after auditing the company's financial statements as of the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's losses and working capital deficits for the two-year period ended Dec. 31, 2006. About Cyber Defense Based in St. Petersburg, Florida, Cyber Defense Systems Inc. -- (OTCBB: CYDFE) -- http://www.cyberdefensesystems.com/-- designs and develops unmanned air vehicles (UAV's). It develops CyberScout, a series of planned vehicles that employ vertical take-off and landing technique, and CyberBug, a scalable UAV that provides monitor routine surveillance and communication in crowded or remote locations. The airships and UAV's are used to provide surveillance 24/7 and include tracking devices for troop and weapon movement. It markets its airships and UAVs to various branches of the U.S. government and U.S. allies as multi-use platform vehicles capable of deployment in surveillance and communication operations, as well as for homeland defense and intelligence agencies. CYBERONICS INC: Cuts Workforce by 12% in 2008 Second Quarter ------------------------------------------------------------ Cyberonics Inc. has adopted a restructuring designed to enhance efficiency and reduce the cost of ongoing operations, resulting in a reduction in employee headcount by approximately 12%. The approximate $2.5 million in costs associated with the reductions will be expensed in the second quarter of fiscal 2008, which will end Friday, Oct. 26, 2007. The workforce reductions are expected to result in significant cost savings beginning in the third quarter of the current fiscal year. "The recent non-coverage determination by the Centers for Medicare and Medicaid Services has resulted in reduced sales of VNS Therapy(TM) Systems for treatment-resistant depression patients," Dan Moore, Cyberonics' president and chief executive officer, commented. "We are fully committed to creating shareholder value by returning the company to positive cash flow generation and profitability as quickly as possible." Headquartered in Houston, Texas, Cyberonics Inc. (NASDAQ: CYBX)-- http://cyberonics.com/-- markets the VNS Therapy system in selected markets worldwide. The VNS Therapy System uses a surgically implanted medical device that delivers electrical pulsed signals to the vagus nerve in the left side of the neck. This therapy has proven effective in significantly reducing the number and/or intensity of seizures in many people suffering from epilepsy and has the potential for use in the treatment of other inadequately treated, chronic disorders. Cyberonics Inc.'s balance sheet as of April 27, 2007, reflected total assets of $13.6 million, total liabilities of $15.7 million, resulting in a total stockholders' deficit of $16.1 million. Going Concern Doubt KPMG LLP raised substantial doubt about Cyberonics Inc.'s ability to continue as a going concern after auditing the company's financial statements for the fiscal years ended April 28, 2006, and April 29, 2005. The auditing firm pointed to the company's recurring losses from operations, the receipt of a notice of default and demand letter and notice of acceleration for a $125 million senior subordinated convertible notes, and incurrence of a potential default of a $40 million line of credit. DELPHI CORP: Lead Plaintiffs Accede to Class Action Settlement -------------------------------------------------------------- Lead Plaintiffs Teachers' Retirement System of Oklahoma, Public Employees' Retirement System of Mississippi, Raiffeisen Kapitalanlage-Gesellschaft m.b.H. and Stichting Pensioenfonds ABP, have agreed to a settlement of a securities class action litigation brought against Delphi Corporation, certain of its current or former officers and directors and certain investment banking firms, as referenced in the District Court's Aug. 17, 2007, Order. The settlement includes a comprehensive settlement with Delphi's insurers. The Action has been litigated on behalf of a proposed Class of investors who purchased or acquired publicly traded shares, bonds, or notes of Delphi and securities issued by Delphi Trust I and Delphi Trust II between March 7, 2000, and March 3, 2005, inclusive. The Settlement, upon approval by both the District Court and the Bankruptcy Court, would end the securities litigation with respect to the company and all Individual Defendants named in the action. The settlement shall also resolve claims against the investment banking firms named as defendants in the action, which pursuant to Delphi's reorganization plan, will be released having also contributed to the settlement consideration to be paid to the Class. The Action would continue with respect to Deloitte & Touche, LLP, Delphi's outside auditor during the Class Period, as well as Defendants JPMorgan Chase & Co, SETECH Inc. and BBK, Ltd, three independent companies alleged to have participated with Delphi in transactions designed to mask Delphi's financial problems during the Class Period. None of these parties will be released from liability for these claims in connection with the Settlement. The case caption is: In re: Delphi Corporation Securities, Derivative and "Erisa" Litigation, E.D. Mich., Master Case No. 05- MD-1725. The terms of the settlement are confidential. Investors wishing to discuss other aspects of this class action settlement or having any questions concerning their rights or interests with respect to this matter, please contact any of the four co-lead counsel in the Action: a) Bernstein Litowitz Berger & Grossmann LLP John P. Coffey at 212-554-1400; b) Grant & Eisenhofer P.A. Stuart Grant at 302-622-7000; c) Nix, Patterson & Roach L.L.P. Brad Beckworth at 903-645-7333; and d) Schiffrin Barroway Topaz & Kessler LLP Sean Handler at 1-888-299-7706. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed $11,446,000,000 in total assets and $23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. DISCOVERY CAPITAL: Shareholders OK Plan of Liquidation & Unit Sale ------------------------------------------------------------------ Shareholders of Discovery Capital Corporation approved the plan for the liquidation, including the sale of Discovery's subsidiary, Discovery Capital Management Corp., to management of Discovery and the distribution of Discovery's assets to its shareholders. Shareholders approved the plan of liquidation by over 99% of the votes cast, including over 99% of the votes cast by minority shareholders in respect of the Management Purchase, as required by the policies of the TSX Venture Exchange. Discovery will provide further information to shareholders regarding important dates with respect to their ownership of Discovery shares. Headquartered in New York City, Discovery Capital Corporation (TSX VENTURE: DVY.Y) -- http://www.discoverycapital.com/-- is a venture fund manager through its wholly owned subsidiary, Discovery Capital Management Corp., and venture capital investor, specializing in information technology, communications, health and life sciences, and other advanced technologies. The company has proven expertise in strategic planning, management development, innovative financing strategies, corporate governance and positioning for liquidity. Discovery Capital Management Corp. is the manager of British Columbia Discovery Fund Inc., a British Columbia venture capital fund that has raised over $42.5 million to date and has investment interests in twelve developing technology companies. DURA AUTOMOTIVE: Files Reorganization Plan in Delaware ------------------------------------------------------ DURA Automotive Systems Inc. and its debtor-affiliates filed their Plan of Reorganization and related Disclosure Statement with the U.S. Bankruptcy Court for the District of Delaware. The Plan and Disclosure Statement provide details on how DURA intends to treat more than $1.3 billion of claims and emerge from Chapter 11 protection in the fourth quarter of 2007. "[Tues]day represent[ed] another significant step towards achieving our goal of quickly emerging from Chapter 11 as a stronger, more competitive company," said Larry Denton, chairman and chief executive officer of Dura Automotive Systems. "This plan lays the foundation for DURA to intensify its Global Automotive focus and deliver unrivaled value to our customers. A solid financial structure, attractive to both top industry talent and capital investments, will bolster our ability to offer breakthrough innovation and cost-competitive products." DURA's Plan provides for these creditor recoveries: -- Cash payment in full of all allowed debtor-in-possession claims, administrative expenses, priority claims and second lien secured claims; -- Conversion of allowed senior notes and allowed general unsecured claims of more than $75,000 into between 57.4% to 60.7% of reorganized DURA's new common stock; and -- Cash payment in lieu of an equity distribution of all allowed trade claims and allowed general unsecured claims of $75,000 or less. The Plan further provides that there will be no recoveries for subordinated notes' and convertible preferred securities' claims, nor will the Debtors common stock holders receive any recoveries. The Plan will be partly funded through exit financing that the Debtors intends to procure prior to emergence. Additional Plan funding will come from a fully backstopped new money equity investment of between $140 million to $160 million in exchange for between 39.3% and 42.6% of Reorganized Dura's common stock. Senior notes claims holders that are accredited investors will be eligible to subscribe for their pro rata shares of the new money investment. On Aug. 15, 2007, the Bankruptcy Court authorized the Debtors to enter into an Amended Backstop Agreement with Pacificor LLC to provide the backstop commitment for the new money equity investment. Pursuant to its backstop commitment, Pacificor will purchase any reorganized DURA common stock not subscribed for by senior notes claims holders. Additional Information and Next Steps The Disclosure Statement is intended to provide DURA's creditors with sufficient information necessary to evaluate and vote on the Plan. Descriptions of creditor classes, a valuation analysis of the Debtors, and details on the voting process and voter eligibility requirements are included in the Disclosure Statement. A hearing is scheduled for Sept. 26, 2007, at which time the Court will evaluate DURA's Disclosure Statement to determine whether it contains "adequate information" to enable creditors to vote to accept the Plan. The Court will approve Plan solicitation procedures and materials that will allow the Debtors to solicit votes to accept the Plan. The Court will also set a hearing date for Plan confirmation. Once the Disclosure Statement and solicitation procedures and materials have been approved, the Debtors balloting agent will distribute ballots and accompanying support materials to parties eligible to vote to accept or reject the Plan. DURA was advised by AlixPartners, Kirkland & Ellis and Miller Buckfire in connection with its Chapter 11 reorganization. No Solicitation Neither the Disclosure Statement that was filed today nor this press release are solicitations for votes to accept the Plan. Parties should refer to the Plan and the Disclosure Statement for information regarding the Plan, creditor recoveries contemplated thereby and other related matters. About DURA Automotive Rochester Hills, Mich.-based DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co-counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had $1,993,178,000 in total assets and $1,730,758,000 in total liabilities. ENDOCARE INC: 1-for-3 Reverse Stock Split Took Effect on Aug. 20 ---------------------------------------------------------------- Endocare Inc. reported that its one-for-three reverse stock split became effective on Aug. 20, 2007. Effective Aug. 21, 2007, the company's shares began trading on a split-adjusted basis on the OTC Bulletin Board under the trading symbol "ECRE." The company undertook the reverse stock split to enable it to Satisfy the minimum bid price requirement for listing the company's common stock on The NASDAQ Capital Market. It is expected that Endocare's common stock will resume trading under the symbol "ENDO" if and when the company's NASDAQ listing becomes effective. "Our excellent clinical and financial results for the past several years are proving the merit of our cryoablation technology and the strength of our business plan," Craig T. Davenport, Endocare's chief executive officer stated. "We believe that as we continue to drive the growth of our business, trading on The NASDAQ Capital Market should help us attract a large group of potential new investors and improve trading volumes and stockholder value." The number of post-split common shares outstanding is approximately 11.6 million. The exercise price and number of common shares related to outstanding warrants and options have been adjusted automatically to reflect the reverse stock split. Stockholders of record on Aug. 20, 2007 will be sent instructions For exchanging their existing stock certificates for new stock certificates and for receiving cash in lieu of any fractional shares resulting from the split. Stockholders with shares held in street name with a brokerage Firm will have their accounts adjusted by their respective brokers. Stockholders should not destroy any stock certificates and should not submit any certificates to the company's transfer agent until requested to do so. Questions regarding this exchange process can be addressed by contacting Computershare Trust Company N.A. at (800) 962-4284. About Endocare Inc. Based in Irvine, California, Endocare Inc. (OTCBB: ENDO) -- http://www.endocare.com-- is an innovative medical device company providing minimally invasive technologies for tissue and tumor ablation. Endocare has concentrated on developing technologies for the treatment of prostate cancer and believes that its proprietary technologies have broad applications across a number of markets, including the ablation of tumors in the kidney, lung and liver and palliative intervention. Going Concern Doubt As reported in the Troubled Company Reporter on March 27, 2007, Ernst & Young LLP, in Los Angeles, expressed substantial doubt about Endocare Inc.'s ability to continue as a going concern after auditing the company's financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring operating losses, cash flow deficits, and working capital deficiency. ENERGY PARTNERS: Names Joseph Leary as Chief Financial Officer -------------------------------------------------------------- Phillip A. Gobe is retiring as President and Chief Operating Officer of Energy Partners, Ltd., effective Sept. 30, 2007. Mr. Gobe will continue to serve on EPL's Board of Directors. Richard A. Bachmann, EPL's Chairman and Chief Executive Officer, will assume Mr. Gobe's operational duties. EPL further disclosed that Joseph T. Leary has joined EPL effective as its Executive Vice President and Chief Financial Officer. "Phillip has been an integral member of our management team and we've enjoyed an excellent working relationship since he joined EPL almost three years ago," Mr. Bachmann commented. "His depth of experience after more than three decades in the energy industry has been a tremendous asset to the company. Phillip has been instrumental in helping us build a deep bench of experienced individuals with extensive operational expertise. We have a strong slate of internal candidates that we will consider as candidates for Phillip's duties. I appreciate Phillip's commitment and contributions to EPL, and I am pleased he will continue to serve as a member of our Board of Directors and be available to us in that capacity." "I've enjoyed my experience at EPL, working closely with Rick, my colleagues on the management team and the dedicated employees throughout the company," Mr. Gobe said. "My retirement was purely a personal decision reached by me and my family. I look forward to continuing to contribute to EPL's future through my service on the Board." The company has named Joseph T. Leary as its Executive Vice President and Chief Financial Officer. Mr. Leary has over 24 years of energy industry experience and was most recently with KCS Energy, Inc. serving as its Senior Vice President and Chief Financial Officer from 2003 until it was acquired by Petrohawk Energy Corporation. At KCS, he was responsible for corporate finance, accounting, treasury, insurance and information technology. Prior to his position with KCS, Mr. Leary was Vice President of Finance and Treasurer at EEX Corporation from 1996 until 2002. From 1983 until 1996, he was employed by Enserch Corporation in a variety of finance and treasury management positions. Prior to joining the energy industry, Mr. Leary was employed in the banking industry. He holds an M.B.A. from Pace University (New York) and a B.B.A in Finance from the University of Notre Dame (South Bend). "We are very excited to have Joe join our senior management team," Richard A. Bachmann, EPL's Chairman and CEO, continued. "His many years of finance and treasury experience in the energy industry and specifically in the E&P sector will be especially valuable to us. Joe is well respected in the industry and in the financial community and we welcome him to EPL." Headquartered in New Orleans, Louisiana, Energy Partners Ltd. (NYSE: EPL) -- http://www.eplweb.com/-- is an independent oil and natural gas exploration and production company. Founded in 1998, the company's operations are focused along the U. S. Gulf Coast, both onshore in south Louisiana and offshore in the Gulf of Mexico. * * * As reported in the Troubled Company Reporter on March 14, 2007, Moody's Investors Service downgraded Energy Partners Ltd.'s Corporate Family Rating to B3 from B2 and its Probability of Default Rating to B3 from B2 following the conclusion of the company's strategic alternative process. FAIRPOINT COMM: Stockholders Approve Verizon Merger Deal -------------------------------------------------------- FairPoint Communications Inc. stockholders voted to adopt a merger agreement pursuant to which FairPoint has agreed to acquire Verizon Communications Inc.'s landline operations in Maine, Vermont and New Hampshire and approve the issuance of FairPoint common stock to the Verizon shareholders pursuant to the Merger Agreement. FairPoint's stockholders also re-elected David L. Hauser to a second three-year term on the company's board of directors and ratified KPMG LLP as FairPoint's independent registered public accounting firm for the fiscal year ending Dec. 31, 2007. "I am pleased that of those stockholders that voted, they overwhelmingly approved the transaction, Gene Johnson, chairman and chief executive officer of FairPoint, stated. "We believe the acquisition of Verizon's northern New England landline operations will create shareholder value as well as provide a catalyst for future growth. We also are convinced that our new and existing customers will benefit from expanded and enhanced communications service offerings, such as broadband. We look forward to successfully integrating Verizon's operations, leveraging the strength of our management team. In this regard, I am particularly encouraged by the significant amount of integration progress and investment we have already made." Investors may also obtain free copies of these documents and FairPoint's other SEC filings by written request to: FairPoint Communications Inc. Attention: Investor Relations. 521 E. Morehead Street, Suite 250 Charlotte, NC 28202 About Verizon Communications Inc. Headquartered in New York City, Verizon Communications Inc. (NYSE: VZ) -- http://www.verizon.com/-- delivers broadband and other wireline and wireless communication innovations to mass market, business, government and wholesale customers. Verizon Wireless serves more than 62 million customers in America. Verizon's Wireline operations include Verizon Business, which delivers business solutions to customers around the world, and Verizon Telecom, which brings customers the benefits of converged communications, information and entertainment services over the nation's fiber-optic network. Verizon has a diverse workforce of more than 238,000. About FairPoint Communications Based in Charlotte, North Cerolina, FairPoint Communications Inc. (NYSE: FRP) -- http://www.fairpoint.com/-- provides communications services to rural communities across the country. FairPoint acquires and operates telecommunications companies for the delivery of service to rural communities. The company owns and operates 31 local exchange companies located in 18 states offering an array of services, including local and long distance voice, data, Internet and broadband offerings. * * * FairPoint Communications Inc. carries Moody's Investors Service's 'B1' long-term corporate family and probability of default ratings. The outlook is stable. Standard and Poor's assigned 'BB-' on its long-term foreign and local issuer credit ratings. FEDDERS CORP: Case Summary & 30 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Fedders Corporation 505 Martinsville Road P.O. Box 813 Liberty Corner, NJ 07938 Bankruptcy Case No.: 07-11182 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Fedders North America, Inc. 07-11176 Columbia Specialities, Inc. 07-11177 Emerson Quiet Kool Corporation 07-11178 Envirco Corporation 07-11179 Eubank Coil Company 07-11180 Fedders Addison Company, Inc. 07-11181 Fedders Holding Company, Inc. 07-11183 Fedders, Inc. 07-11184 Fedders International, Inc. 07-11185 Fedders Investment Corporation 07-11186 Fedders Islandaire, Inc. 07-11187 Fedders Outlet, Inc. 07-11188 Herrmidifier Company, Inc. 07-11189 Island Metal Fabricating, Inc. 07-11190 Rotorex Comany, Inc. 07-11191 Trion, Inc. 07-11192 Type of Business: The Debtors are a group of companies that are global producers and marketers of air treatment products for residential, commercial and industrial markets. Chapter 11 Petition Date: August 22, 2007 Court: District of Delaware (Delaware) Judge: Linehan Shannon Debtors' Counsel: Norman L. Pernick, Esq. Saul, Ewing, Remick & Saul LLP 222 Delaware Avenue, Suite 1200 Wilmington, DE 19899 Tel: (302) 421-6824 Fax: (302) 421-6813 Debtors' financial condition as of March 31, 2007: Total Assets: $186,300,000 Total Debts: $322,000,000 Debtors' Consolidated List of its 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ U.S. Bank National Association Senior Notes $155,000,000 Indenture Trustee 9-7/8% Senior Notes c/o Corporate Trust Department One Federal Street, 3rd Floor Boston, MA 02110 Tel: (617) 603-6553 Fax: (617) 603-6683 DHL Global Forwarding Trade $1,132,619 c/o Tracy Sewell 14076 Collections Center Drive Chicago, IL 60693 Tel: (314) 824-5391 Fax: (314) 824-5406 Maytag Corporation Trade $562,500 c/o Equity Management Inc. 4365 Executive Drive Suite 1000 San Diego, CA 92121 Attn: Manager Maytag Trademark Leasing Tel: (858) 558-2500 Fax: (858) 450-6221 and Maytag Company/Whirlpool 553 Benson Road Benton Harbor, MI 49022 Service Power Trade $511,161 c/o Larry Lewis 1503 South Coast Drive, Suite 320 Costa Mesa, CA 92626-1528 Tel: (714) 428-0100 ext. 3028 Fax: (714) 428-0040 Sills Cummis Epstein & Gross P.C. Legal Services $323,521 c/o Trent S. Dickey, Esq. The Legal Center One Riverfront Plaza Newark, NJ 07102-5400 Tel: (973) 643-5863 Fax: (973) 643-6500 APL Logistics Trade $295,412 c/o Kyle Oslos 1301 Riverplace Boulevard Suite 1100 Jacksonville, FL 32207 Tel: (630) 645-3160 Fax: (630) 645-3169 Sedgwick Delert Moran and Legal Services $270,756 Arnold LLP c/o Curtis Parvin, Esq. One Market Plaza Stueart Tower 8th Floor San Francisco, CA 94105 Tel: (949) 852-8200 Fax: (949) 852-8282 Koch Filter Corporation Trade $227,407 c/o Kimberly Buzzutto 625 West Hill Street P.O. Box 3186 Louisville, KY 40201 Tel: (828) 345-3152 Fax: (828) 345-1353 Fed Ex Trade $203,548 Jones Day Legal Services $174,726 Mass Mutual Financial Group Trade $157,953 Jiangsu Mueller Xingrong Trade $155,211 Con-Way Central Express Trade $148,359 Ladas & Perry LLP Legal Services $130,052 USF Holland Trade $117,669 Howrey Simon Arnold & White LLP Legal Services $107,070 Lifetime Industries, Inc. Trade $97,970 Skadden Arps Slate Legal Services $96,304 Meagher & Flom LLP Copeland/Emerson Trade $87,623 Climate Technologies Technology Research Corp. Trade $86,481 URS Corporation Trade $84,966 Aleris Light Gauge Products Trade $77,107 Parametric Technology Corp. Trade $73,195 Locke Liddell & Sapp, LLP Legal Services $64,241 American Appraisal Associate Trade $58,927 Westgate Corporate Center Landlord $54,585 Global Crossing Trade $51,290 American International Companies Trade $47,096 QAD Inc. Trade $46,576 Rightway Logistics Trade $45,474 FIRST UNION: Moody's Holds Low-B Ratings on Five Cert. Classes -------------------------------------------------------------- Moody's Investors Service upgraded the ratings of four classes and affirmed these ratings of 13 classes of First Union National Bank Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2001-C2: -Class A-1, $57,305,637, affirmed at Aaa -Class A-2, $590,647,000, affirmed at Aaa -Class IO, Notional, affirmed at Aaa -Class B, $42,565,000, affirmed at Aaa -Class C, $12,520,000, affirmed at Aaa -Class D, $12,519,000, affirmed at Aaa -Class E, $20,031,000, affirmed at Aaa -Class F, $10,015,000, affirmed at Aaa -Class G, $15,023,000, upgraded to Aa1 from Aa2 -Class H, $17,527,000, upgraded to Aa2 from A2 -Class J, $12,519,000, upgraded to A2 from Baa2 -Class K, $15,023,000, upgraded to Baa1 from Ba1 -Class L, $20,031,000, affirmed at Ba2 -Class M, $5,008,000, affirmed at Ba3 -Class N, $6,048,000, affirmed at B1 -Class O, $5,908,000, affirmed at B2 -Class P, $3,939,000, affirmed at B3 As of the August 14, 2007, distribution date, the transaction's aggregate certificate balance has decreased by approximately 13.7% to $866.2 million from $1.0 billion at securitization. The Certificates are collateralized by 99 mortgage loans ranging in size from less than 1.0% to 5.6% of the pool, with the top 10 loans representing 24.6% of the pool. The pool includes two shadow rated loans, representing 6.1% of the pool. Twenty-six loans, representing 40.8% of the pool, have defeased and are collateralized with U.S. Government securities. Six loans have been liquidated from the trust resulting in an aggregate realized loss of approximately $3.9 million. Currently there is one loan, representing less than 1.0% of the pool, in special servicing. Moody's has estimated a minimal loss for this specially serviced loan. Twenty-two loans, representing 12.2% of the pool, are on the master servicer's watchlist. Moody's was provided with full-year 2006 operating results for 92.7% of the pool. Moody's loan to value ratio for the conduit component, excluding the defeased loans, is 78.0%, compared to 85.6% at Moody's last full review in May 2006 and compared to 87.9% at securitization. Moody's is upgrading Classes G, H, J and K due to defeasance, improved overall pool performance and increased credit support. The largest shadow rated loan is the One Franklin Plaza Loan ($41.4 million - 4.8%), which is secured by a 607,000 square foot office building located in downtown Philadelphia, Pennsylvania. The property is 100.0% occupied, the same as at last review and at securitization. GlaxoSmithKline occupies 98.0% of the premises through March 2013. Moody's current shadow rating is Baa2, the same as at last review. The second shadow rated loan is the HRT Portfolio Loan ($10.9 million -- 1.3%), which is secured by five medical office facilities totaling 375,900 square feet. The loan was originally secured by eight properties, however three properties have defeased. The properties are located in Alabama, Texas and Virginia. The portfolio's overall occupancy was 90.8% as of December 2006, compared to 99.8% at securitization. Two of the properties are on the servicer's watchlist due to low occupancy, but the decline in revenue has been offset by amortization. The loan amortizes on a 10-year schedule and has amortized by approximately 53.0% since securitization. Moody's current shadow rating is Aaa, the same as at last review. The top three non-defeased conduit loans represent 10.9% of the outstanding pool balance. The largest conduit loan is the 1330 Connecticut Avenue Loan ($49.1 million - 5.6%), which is secured by a 252,000 square foot Class A office building located in Washington, D.C. The property is 99.6% occupied, essentially the same as at last review. The law firm of Steptoe & Johnson LLP occupies 94.7% of the premises through December 2017. Moody's LTV is 65.0%, compared to 72.0% at last review. The second largest conduit loan is the Alexandria RE Portfolio ($23.3 million - 2.7%), which is secured by two suburban office buildings totaling 188,000 square feet. The properties are located in Gaithersburg, Maryland. The properties are 100.0% leased. Moody's LTV is 64.8%, compared to 64.9% at last review. The third largest conduit loan is the La Villa Estates Apartment Loan ($22.2 million - 2.6%), which is secured by a 336-unit multifamily property located in Las Vegas, Nevada. The property was 98.9% occupied as of Mary 2007, compared to 96.7% at last review. Moody's LTV is 93.8%, compared to in excess of 100.0% at last review. FR X OHMSTEDE: S&P Places B- Rating Under Positive CreditWatch -------------------------------------------------------------- Standard & Poor's Ratings Services placed its long-term 'B-' corporate credit rating on the heat exchanger and service provider FR X Ohmstede Acquisitions Co. on CreditWatch with positive implications. The rating action follows the announcement of the $455 million all-cash purchase of Ohmstede by Emcor Group Inc. (BB+/Stable/--). "The positive CreditWatch listing for Beaumont, Texas-based Ohmstede reflects Emcor Group's superior credit strength," said Standard & Poor's credit analyst Amy Eddy. Standard & Poor's will resolve the CreditWatch listing once the transaction closes. The closing should occur in late September or early October. GENERAL MOTORS: Trimming Production in SUV & Pickup Truck Plants ---------------------------------------------------------------- General Motors Corp. is cutting production at six North American plants that make large pickup trucks and sport-utility vehicles as the company moves to clear dealer lots of excess inventory, Jeff Green of Bloomberg News reports. Company spokesman Tom Wickham told Bloomberg in an interview that the factories will eliminate previously scheduled overtime the rest of the year for models such as the Chevrolet Suburban SUV and GMC Sierra pickup. John D. Stoll and Neal E. Boudette of The Wall Street Journal relate that GM's move is underscoring fears that the auto industry is headed for a longer and more painful downturn in the U.S. than many had expected. Citing industry observers, WSJ says a longer downturn could threaten the turnaround plans of GM due to sharp declines in U.S. auto sales in the last two months as falling home values and credit worries damped consumer interest. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. * * * As reported in the Troubled Company Reporter on May 28, 2007, Standard & Poor's Ratings Services placed General Motors Corp.'s corporate credit rating at B/Negative/B-3. At the same time, Moody's Investors Service affirmed GM's B3 Corporate Family Rating and B3 Probability of Default Rating, and maintained its SGL-3 Speculative Grade Liquidity Rating. The rating outlook remains negative, according to Moody's. GLOBAL HOME: Committee Taps Capital Solutions as Financial Advisor ------------------------------------------------------------------ The Official Committee of Unsecured Creditors appointed in Global Home Products LLC and its debtor-affiliates' Chapter 11 cases, seeks permission from the U.S. Bankruptcy Court for the District of Delaware to retain Capital Solutions Group Ltd. as its financial advisor. Capital Solutions will: a) review and analyze the financial information of the Debtors; b) monitor and analyze the Debtors operations, cash expenditures, court filing, proposed employee bonus programs, business plans and projected cash requirements; c) attend Committee meetings, Bankruptcy Court hearings and participate in matters the committee may request; d) review and analyze proposed transactions for which the Debtors seek Court approval; e) assist in the valuation and corporate finance with respect to the asset sale and portfolio valuation matters as required; f) prepare the going concern sale and liquidation value analysis of the estates assets; g) review reports of the Debtors' business and its operations; h) analyze prepetition property, liabilities and financial condition of the Debtors, and the transfers to and accounts with and among Debtors' affiliates; i) review and analyze plan of reorganization proposed by the Debtors or any party and assist in the negotiations of the plan in behalf of the committee; j) support for any out proceeding necessary or appropriate to maximize the recovery by the Committee's constituents; and k) provide services the Committee may require in relation to the case proceedings. Susan L. Storey, managing director of Capital Solutions tells the Court of the firm's hourly compensation: Title Hourly Rates ----- ------------ Managing Director $450 Associates $150 - $250 Ms. Storey assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Westerville, Ohio, Global Home Products LLC -- http://www.anchorhocking.com/and http://www.burnesgroup.com/ -- sells houseware and home products and manufactures high quality glass products for consumers and the food services industry. The company also designs and markets photo frames, photo albums and related home decor products. The company and 16 of its affiliates, including Burnes Puerto Rico, Inc., and Mirro Puerto Rico, Inc., filed for Chapter 11 protection on April 10, 2006 (Bankr. D. Del. Case No. 06-10340). Laura Davis Jones, Esq., Bruce Grohsgal, Esq., James E. O'Neill, Esq., and Sandra G.M. Selzer, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub LLP, represent the Debtors. Bruce Buechler, Esq., at Lowenstein Sandler, P.C., and David M. Fournier, Esq., at Pepper Hamilton LLP represent the Official Committee of Unsecured Creditors. When the company filed for protection from their creditors, they estimated assets between $50 million and $100 million and estimated debts of more than $100 million. GOODYEAR TIRE: Plans Growth Investments and Debt Repayment ---------------------------------------------------------- The Goodyear Tire & Rubber Company is planning major global investments to fuel growth and plans to repay additional debt, both made possible by the recent sale of its Engineered Products business and the company's successful equity offering. Goodyear is considering potential new tire factories in Eastern Europe and Asia in addition to the company's intent to invest in existing tire factories to increase high-value-added capacity by 40% globally and increase capacity in existing low-cost plants by 33%. Together, these investments would drive the company toward its strategy of having 50% of its global capacity in low-cost countries by 2012. The investment program includes modernization in North America to Goodyear's tire plants in Fayetteville, North Carolina, and Gadsden, Alabama, for increased high-value-added capacity, both supported with investment incentives by local and state governments. "Consistent with what we have been telling investors, the successful completion of the sale of Engineered Products combined with our equity offering in May allows us to expand our future growth investments," Goodyear Chairman and Chief Executive Officer Robert J. Keegan said. "We will continue to use a disciplined approach in allocating capital to high-return investments." In addition, Mr. Keegan said Goodyear has given notice to its lenders that it will repay its $300 million third lien term loan. The repayment will result in annualized interest expense savings of approximately $26 million, of which about $10 million will be realized in 2007. The secured loan matures in 2011. The company's debt repayment plans also include the early repayment, in the first quarter of 2008, of $650 million in secured notes that are due in 2011. Mr. Keegan said these early repayments coupled with the company's $315 million redemption of senior notes in June will save Goodyear more than $125 million in annual interest expense. Goodyear confirmed progress against its Four Point Cost Savings Plan. The company disclosed in April it now targets gross cost savings of $1.8 billion to $2 billion by the end of 2009. Through June 30, 18 months into the plan, Goodyear indicated it had achieved nearly $750 million in cost savings against this target. More than $500 million of these savings are a result of continuous improvement initiatives. While announced savings from eliminating high-cost manufacturing total $135 million, only $35 million of this was reflected in results through June 30. Sourcing raw materials, equipment and products from Asia and other low-cost countries has resulted in savings of $60 million and selling, administrative and general expense savings-to-date total more than $150 million. "We remain on track to achieve our targeted savings," Mr. Keegan said. "While some of these savings are offset by currently elevated inflation levels in areas such as energy and some manufacturing inefficiencies in advance of footprint reductions, we are confident structural savings will be achieved on a net basis, particularly in North America." About Goodyear 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. GREAT CIRCLE: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Lead Debtor: Great Circle Family Foods, LLC dba G.C.F.F. dba Krispy Kreme Doughnuts 717 State College Boulevard, No. I Fullerton, CA 92831 Bankruptcy Case No.: 07-12600 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- G.C.F.F.-Canoga, L.L.C. 07-12602 G.C.F.F.-Huntington Park, L.L.C. 07-12603 G.C.F.F.-Ontario, L.L.C. 07-12604 G.C.F.F.-Orange, L.L.C. 07-12605 G.C.F.F.-San Diego, L.L.C. 07-12606 Type of business: The Debtor is a franchisee of Krispy Kreme Doughnuts, with about a dozen stores operating in Southern California. The shops are popular for their raised, glazed doughnuts that are served fresh and hot out of the fryer; the chain's menu also features cake and filled doughnuts, crullers, and fritters, as well as hot coffee and other beverages. See http://www.gcff.com/ Chapter 11 Petition Date: August 22, 2007 Court: Central District Of California (Santa Ana) Judge: Erithe A. Smith Debtors' Counsel: Kim Tung, Esq. Monica Y. Kim, Esq. Ron Bender, Esq. Levene, Neale, Bender, Rankin & Brill, L.L.P. 10250 Constellation Boulevard, Suite 1700 Los Angeles, CA 90067 Tel: 310-229-1234 Fax: 310-229-1244 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtors' Consolidated List of its 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ The Rancho Mirage Trust $642,872 20120 Plummer Street Chatsworth, CA 913111 Tel: (818) 727-9100 Krispy Kreme Doughnut Corp. $426,449 37 Knollwood, Suite #500 Winston Salem, NC 27103 Tel: (888) 788-7828 BakeMark $300,000 7351 Crider Avenue Pico Rivera, CA 90660 ABN AMRO Bank N.V. $210,000 KB Home Non Qual. Def. Com. Plan $200,000 Bruce E. Karatz $200,000 Carol Karlovich $195,000 Los Angeles County Tax Collect $187,381 The Rancho Mirage Trust $160,000 Weinstein Family L.P. $151,000 Anthony W. Podell $150,000 Nora J. Hunt $150,000 Jaroslav J. Marik $144,515 Paul Laufer $130,000 San Diego County Tax Collector $123,602 Kamprath Seed Co., LLC $100,000 Kenneth Tuchman $100,000 Howard S. Marks $100,000 Suzanne Caplan and Stan Caplan $100,000 Franchise Tax Board $91,262 HORIZON LINES: Completes Buyout Deal With Aero Logistics -------------------------------------------------------- Horizon Lines Inc. has acquired Aero Logistics, a full service, third party logistics provider. The terms of the acquisition were not disclosed. Horizon Lines has formed Horizon Logistics, to manage the company's integrated logistics services business. Horizon Lines LLC will operate the ocean container shipping services between the U.S. and Alaska, Hawaii, Guam, Micronesia and Puerto Rico. "Aero creates innovative solutions for its customers and offers a consistency of service that builds long lasting client relationships," Brian Taylor, senior vice president of sales and marketing for Horizon Lines LLC and named to head Horizon Logistics as its president effective September 1st, said. "Aero's solid reputation for integrity, innovation and the highest levels of customer service make the company a great fit for Horizon Logistics." "We welcome the addition of the Aero Logistics team of professionals and its proven capabilities in developing custom logistics solutions for its clients," Chuck Raymond, chairman, president and chief executive officer of Horizon Lines Inc., said. "We look forward to helping Aero achieve even greater levels of success; creating value for all our customers, employees and shareholders." "Horizon Lines, with its reputation for reliability, innovation and exceptional customer service, is the perfect partner for Aero Logistics," John Fowler, CEO of Aero Logistics, said. "Josh Greenberg, Aero's chairman and president. "Aero's service offering is an excellent fit with Horizon, and we look forward to introducing our capabilities to a broader customer base interested in comprehensive logistics and transportation solutions." About Aero Logistics Based in South San Francisco, California, Aero Logistics – http://www.aerologistics.net/-- designs and manages custom freight shipping and special handling programs for customers in service-sensitive industries including high-tech, healthcare, energy, mining, retail and apparel. Aero Logistics offers an multi-modal transportation services and integrated logistics solutions to satisfy the needs of its clients. Aero also operates a fleet of GPS-equipped trailers under the direction of their Aero Transportation division, providing expedited less-than-truckload and truckload service throughout North America and Mexico. About Horizon Lines Inc. Headquartered in Charlotte, North Carolina, Horizon Lines Inc. (NYSE: HRZ) -- http://www.horizon-lines.com/-- is a Jones Act container shipping and integrated logistics company with a fleet of 21 U.S.-flag vessels and service routes linking the continental United States with Alaska, Hawaii, Guam, Micronesia and Puerto Rico. An integrated service provider of ocean transportation, trucking, terminal and warehousing operations, Horizon Lines also owns Horizon Services Group, an organization with a diversified offering of transportation management systems and customized software solutions being marketed to shippers, carriers, and other supply chain participants. * * * As reported in the Troubled Company Reporter on Aug. 9, 2007, Standard & Poor's Ratings Services assigned a 'BB+' rating and a '1' recovery rating to Horizon Lines Inc.'s (BB-/Stable/--) proposed senior secured first-lien credit facilities, consisting of a $250 million revolving credit facility and a $125 million term loan A; both facilities mature in 2012. HUDBAY MINERALS: Claims Zero Investments in Asset-Back Paper ------------------------------------------------------------ HudBay Minerals Inc. reported Wednesday that its cash is held with a major Canadian bank in highly liquid investments at competitive market rates. The company has no investments in asset-backed commercial paper. With recent uncertainty in global credit markets, HudBay believes it is prudent to clarify the status of its cash holdings, which were approximately $565 million at June 30, 2007. HudBay Minerals Inc. (TSX: HBM) is engaged in the mining and processing of zinc, copper and other by-product metals. * * * To date, HudBay Minerals Inc. carries Moody's Investors Service's B1 long-term corporate family and probability-of-default ratings. INTEL DEVELOPMENT: Case Summary & Six Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Intel Development Company Hotel Marie Suite 202 6195 Fox Island Drive P.O. Box 2373 Tunica, MS 38676 Bankruptcy Case No.: 07-51000 Type of business: The Debtor is a real estate developer. Chapter 11 Petition Date: August 21, 2007 Court: Western District of Louisiana (Lafayette/Opelousas) Debtor's Counsel: Gerald H. Schiff, Esq. Gordon, Arata, McCollam, Duplantis & Eagan, L.L.P. 400 East Kaliste Saloom Road, Suite 4200 Lafayette, LA 70508-8517 Tel: (337) 237-0132 Fax: (337) 237-3451 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million Debtor's Six Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ McFarlane-Chang security interest in $1,971,041 Investments, L.L.C. all corporate stock; 1155 Connecticut Avenue lien upon real estate Northwest option contract Robert T. Gordon, Jr. attorney fees $18,358 Law Office of Robert T. Gordon Am South Plaza, Suite 1088 210 East Capitol Street Jackson, MS 39201 Matrix International $15,000 5318 Weslayne Avenue Houston, TX 77005 Robert W. Blair attorney fees $12,758 Diversified Investments office lease $745 John H. Bennett, Jr. attorney fees unknown JP MORGAN: Fitch Holds Low-B Ratings on Six Certificate Classes --------------------------------------------------------------- Fitch Ratings has affirmed J.P. Morgan Chase Commercial Mortgage Securities Corp., commercial mortgage pass-through certificates, series 2004-PNC1, commercial mortgage pass-through certificates as: -- $12.6 million class A-1 at 'AAA'; -- $237.3 million class A-1A at 'AAA'; -- $128.3 million class A-2 at 'AAA'; -- $98.0 million class A-3 at 'AAA'; -- $426.2 million class A-4 at 'AAA'; -- Interest-only class X at 'AAA'; -- $28.8 million class B at 'AA'; -- $13.7 million class C at 'AA-'; -- $17.8 million class D at 'A'; -- $11.0 million class E at 'A-'; -- $16.5 million class F at 'BBB+'; -- $11.0 million class G at 'BBB'; -- $20.6 million class H at 'BBB-'; -- $2.7 million class J at 'BB+'; -- $6.9 million class K at 'BB'; -- $4.1 million class L at 'BB-'; -- $5.5 million class M at 'B+'; -- $2.7 million class N at 'B'; -- $2.7 million class P at 'B-'. Fitch does not rate the $15.1 million class NR certificates. The rating affirmations are the result of minimal reduction of the pool collateral balance and stable performance. As of the August 2007 distribution date, the pool has paid down 3.3%, to $1.06 billion from $1.10 billion at issuance. Eleven loans (12.37%) have defeased since issuance. One loan (0.4%) is currently in special servicing. The specially serviced loan (0.4%) is secured by a multifamily property located in Evansville, IN and is currently 90 days delinquent. The property transferred to the special servicer in October 2006 due to declines in occupancy and deferred maintenance. There is a third party management company in place at the property and deferred maintenance issues are being addressed. The property is 78% occupied as of July 2007. The largest loan in the pool, Centro Retail Portfolio (12.8%), maintains its investment grade credit assessment. The loan is secured by seven anchored retail properties, 14.8 % located in Southern CA, and 7.7 % in Northern, CA. Occupancy as of June 30, 2007 declined to 84% compared to 95% at issuance%. Fitch will continue to monitor the performance of this loan for any future declines in performance. Nine loans (14.6%) are considered Fitch loans of concern due to declines in occupancy and performance. Fitch will continue to monitor the performance of these loans. KESSLER HOSPITAL: Taps Crammer Bishop as Special Counsel -------------------------------------------------------- Willam B. Kessler Memorial Hospital Inc. asks the United States Bankruptcy Court for the District of New Jersey for permission to employ Crammer Bishop Marczyk & O'Brien as its special counsel. As the Debtor's special counsel, the firm will protect the Debtor's interest in connection with the Kimball vs. Reid case. The Debtor tells the Court that it agreed to pay $150 per hour to the firm for this engagement. Joseph Marczyk, Esq., a member of the firm, assures the Court the firm does not hold any interests adverse to the Debtor's estate and is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Based in Hammonton, New Jersey, William B. Kessler Memorial Hospital, Inc. -- http://www.kesslerhospital.org/-- is a non- profit corporation that operates a hospital. The Company filed for chapter 11 protection on Sept. 13, 2006 (Bankr. D. N.J. Case No. 06-18680). Albert A. Ciardi, III, Esq., at Ciardi & Ciardi, P.C., represents the Debtor in its restructuring efforts. Carol A. Slocum, Esq., at Klehr Harrison Harvey Branzburg & Ellers, represents the Official Committee of Unsecured Creditors. As of its bankruptcy filing, the Debtor disclosed total assets of $5,906,300 and total liabilities of 12,602,600. LAKE AT LAS VEGAS: S&P Junks Rating on $540MM Secured Facility -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'CCC+' bank loan rating with a '2' recovery rating to Lake at Las Vegas Joint Venture and LLV-1 LLC's $540 million secured credit facility. The new credit facility replaces the company's pre-existing $500 million credit facility, which had a 'CCC+' rating and a recovery rating of '1'. That facility has been repaid and the ratings have been withdrawn. At the same time, S&P affirmed the 'CCC' corporate credit ratings assigned to the borrower. The outlook remains negative. "The corporate credit ratings acknowledge the project's disappointing cash flows to date, as land sales have been negatively affected by significant weakness in the Las Vegas housing market, particularly in the discretionary luxury second home segment," explained credit analyst James Fielding. He added, "The ratings also reflect the recent refinancing of a previous credit facility and the difficulty in executing that agreement, which is reflected in much higher borrowing costs." He noted that these concerns are partially mitigated by the significant underlying value of the land parcels and the significant infrastructure investments to date. The outlook remains negative, reflecting the weak Las Vegas housing market. This weakness could pressure the company's ability to monetize assets, which in turn would weigh on the company's liquidity and ability to meet its debt service requirements. S&P will lower the ratings if projected assets sales are delayed or do not produce adequate cash flow affecting its ability to meet debt service needs and further constraining liquidity. In the near term, if the $90 million land sale is not completed by Sept. 30, 2007, that would constitute an event of default under the credit agreement, and S&P would likely lower the ratings to 'D' unless remedied and the recovery rating would be reviewed. S&P will revise its outlook to stable if lot sales return to their historical pace, debt is reduced with cash flow, and the company's liquidity improves. LE-NATURE'S INC: Plant Sale in Jeopardy on Threat Allegations ------------------------------------------------------------- Le-Nature's Inc.'s planned sale of its Latrobe facility to Giant Eagle Inc. could be scrapped after allegations surfaced that Giant Eagle threatened another bidder, the Pittsburgh Business Times reports. As reported in the Troubled Company Reporter on Aug. 13, 2007, Giant Eagle won the Court-approved auction for the Debtor's bottling plant after a $20 million bid, topping Cadbury Schweppes PLC's $19 million offer. According to the Pittsburgh Business Times, the Debtor's chapter 11 trustee, R. Todd Neilson, will be spearheading an investigation on an anonymous tip from a Pittsburgh reporter. According to the tip, Giant Eagle threatened to pull Cadbury Schweppes' products if Cadbury didn't pull out from the bidding. Mr. Nielson hopes to finish the investigation in a week, the report adds. Giant Eagle, in a statement, said that it will cooperate with the trustee's investigation. The Hon. M. Bruce McCullough of the U.S. Bankruptcy Court for the Western District of Pennsylvania has set an August 30 hearing on the allegations. Headquartered in Latrobe, Pennsylvania, Le-Nature's Inc. -- http://www.le-natures.com/-- makes bottled waters, teas, juices and nutritional drinks. Its brands include Kettle Brewed Ice Teas, Dazzler fruit juice drinks and lemonade, and AquaAde vitamin-enriched water. Four unsecured creditors of Le-Nature's filed an involuntary chapter 7 petition against the company on Nov. 1, 2006 (Bankr. W.D. Pa. Case No. 06-25454). On Nov. 6, 2006, two of Le-Nature's subsidiaries, Le-Nature's Holdings Inc., and Tea Systems International Inc., filed voluntary petitions for relief under chapter 11 of the Bankruptcy Code. Judge McCullough converted Le Nature's Inc.'s case to a chapter 11 proceeding. The Debtors' cases are jointly administered. The Debtors' schedules filed with the Court showed $40 million in total assets and $450 million in total liabilities. Douglas Anthony Campbell, Esq., Ronald B. Roteman, Esq., and Stanley Edward Levine, Esq., at Campbell & Levine, LLC, represents the Debtors in their restructuring efforts. The Court appointed R. Todd Neilson as Chapter 11 Trustee. Dean Z. Ziehl, Esq., Richard M. Pachulski, Esq., Stan Goldich, Esq., Ilan D. Scharf, Esq., and Debra Grassgreen, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub LLP, represent the Chapter 11 Trustee. David K. Rudov, Esq., at Rudov & Stein, and S. Jason Teele, Esq., and Thomas A. Pitta, Esq. at Lowenstein Sandler PC, represent the Official Committee of Unsecured Creditors. Edward S. Weisfelner, Esq., Robert J. Stark, Esq., and Andrew Dash, Esq., at Brown Rudnick Berlack Israels LLP, and James G. McLean, Esq., at Manion McDonough & Lucas represent the Ad Hoc Committee of Secured Lenders. Thomas Moers Mayer, Esq., and Matthew J. Williams, Esq. at Kramer Levin Naftalis & Frankel LLP, represent the Ad Hoc Committee of Senior Subordinated Noteholders. LENNAR CORP: Credit Woes Prompt Moody's Ratings Review ------------------------------------------------------ Moody's Investors Service placed all of the ratings of Centex Corporation, Lennar Corporation, and Pulte Homes, Inc. under review for downgrade. The review was prompted by the materially weaker operating environment facing homebuilders, the dramatic change in the credit environment surrounding the industry versus only a few weeks ago, and the possibility of a substantive spill over effect on the industry if the blowback from the structured products markets continues unabated. The review will focus on these issues: (i) The ability of the three companies to reduce physical inventories going forward. To date, the bulk of their inventory reduction has been reflected in their financial statements through accounting charges, such as impairments, option abandonments, and other write-downs. As industry cancellation rates seem now to be spiking up for the second time, these physical inventory reductions will be harder to achieve. (ii) The companies' ability to continue generating positive cash flow, in part because of their limited success to date in reducing physical inventory and in part from the recent resurgence of cancellation rates. Other factors necessitating the examination include Centex and Pulte's lag in generating positive cash flow compared to prior expectations and the impact of a significant level of off-balance sheet activity on Lennar's cash flow. (iii) Whether the companies will be able to reduce costs sufficiently to once again sustain profitable operations, excluding the impact of impairments, option abandonments, and other charge-offs. In recent quarters, the three companies have generated modest quarterly losses, even after excluding the aforementioned charges. Moody's generally does not expect investment grade companies to generate even modest quarterly losses for a lengthy period. (iv) Whether the companies will take the necessary steps to conform their debt structures to the currently frail business environment. (v) Whether the companies will be able to substantially reverse their current underperformance on key credit metrics before 2009. Moody's anticipates that the review will be conducted on an expedited basis. If the determination from the review is that ratings should be changed, it is likely that Pulte's ratings will be lowered by only one notch, with the company's ratings then taken off review. The ratings of Lennar and Centex, however, could either be lowered by one notch and kept on review for further downgrade, or they could be lowered by two notches and then taken off review. These ratings were placed under review for downgrade: Centex Corporation * Baa2 rating on approximately $3.7 billion of senior unsecured notes * P-2 rating on $1.25 billion commercial paper program Lennar Corporation * Baa2 rating on approximately $2.2 billion of senior unsecured notes * P-2 rating on $2 billion commercial paper program Pulte Homes, Inc. * Baa3 rating on approximately $3.48 billion of senior unsecured notes Founded in 1950 and headquartered in Dallas, Texas, Centex Corporation is one of the nation's leading home building companies, operating in major U.S. markets in 25 states. Revenues and net income for the trailing twelve month period ended June 30, 2007 were approximately $11.2 billion and $(20) million, respectively. Founded in 1954 and headquartered in Miami, Florida, Lennar Corporation is one of the largest homebuilders in the United States, with revenues and net income for the trailing twelve month period ended May 31, 2007 of $14.1 billion and $165 million, respectively. Headquartered in Bloomfield Hills, Michigan, Pulte Homes, Inc. is one of the country's largest homebuilders, with domestic operations in 27 states and 52 markets, as well as in Puerto Rico. Revenues and net income for the trailing twelve month period ended June 30, 2007 were approximately $11.8 billion and $(411) million, respectively. LESLIE'S POOLMART: Increased Debt Cues S&P to Downgrade Ratings --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Leslie's Poolmart Inc. S&P lowered the corporate credit rating to 'B' from 'B+' and the rating on the company's $170 million 7.75% senior unsecured notes to 'B-' from 'B'. The outlook is negative. The downgrade reflects the substantial increase in debt leverage that results from the issuance of $310 million of notes at Leslie's Holdings Inc., the parent to Phoenix, Arizona-based Leslie's Poolmart. Debt to EBITDA increased to around 6.9x at the end of the company's third quarter, from 3.8x at the end of the September 2006 fiscal year. Holdings was formed earlier this year, with Leslie's Poolmart becoming a wholly owned subsidiary.- "Based on the company's high debt leverage ratio for the rating category," said Standard & Poor's credit analyst Charles Pinson- Rose, "we see the rating as vulnerable to a downgrade if the current weakness in the housing market affects EBITDA generation." LEXINGTON RESOURCES: Posts $631,607 Net Loss in Second Quarter -------------------------------------------------------------- Lexington Resources Inc. reported a net loss of $631,607 on revenues of $202,404 for the second quarter ended June 30, 2007, compared with a net loss of $37,996 on revenues of $645,314 for the second quarter in 2006. For the six-months ended June 30, 2007, net loss was $1.1 million compared with a net loss of $3.8 million for the six months ended June 30, 2006. During the six-month period ended June 30, 2007, the company generated $411,275 in gross revenue compared to $946,620 in gross revenue generated during the six-month period ended June 30, 2006, (a decrease of $535,345), resulting primarily from oil and gas revenue of $351,737 and $59,538 in well drilling and services revenue generated by its subsidiary, Oak Hills. Drilling and service revenue of $59,538 declined from $689,110 during the same period in 2006 resulting from the sale of the company's drilling rig. Oil and gas revenue of $351,737 increased from $257,510 during the same period in 2006 resulting from increased volume of gas sold. At June 30, 2007, the company's consolidated balance sheet showed $14.8 million in total assets, $9.6 million in total liabilities, and $5.2 million in total stockholders' equity. The company's consolidated balance sheet at June 30, 2007, also showed strained liquidity with $1.6 million in total current assets available to pay $9.6 million in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended June 30, 2007, are available for free at http://researcharchives.com/t/s?22e2 Going Concern Doubt As reported in the Troubled Company Reporter on May 25, 2007, Whitley Penn L.L.P., in Dallas, Texas, expressed substantial doubt about Lexington Resources Inc.'s ability to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2006. The auditing firm pointed to the company's recurring losses from operations, net working capital deficiency and accumulated deficit. About Lexington Resources Lexington Resources Inc. -- (OTC BB: LXRS) (FSE: LXR) (BER: LXR) (WKN: AOBKLP) -- http://www.lexingtonresources.com/ -- acquires and develops oil and natural gas properties in the United States. The company owns a 590 gross acre section of farm-out acreage in Pittsburg County, Oklahoma for the development and production of coal bed methane gas known as the Wagnon Property. The company is producing gas from four wells drilled on the Wagnon Property. Lexington has a 53.2% back-in working interest in each of the wells. Its current operational focus is gas development initiatives in the Arkoma Basin, Oklahoma, and the Fort Worth Basin, in Dallas, Texas. LOMBARD PUBLIC: S&P Rates $53.995MM Series A-2 Bonds at "BB-" ------------------------------------------------------------- Standard & Poor's Ratings Services said that the underlying rating on Lombard Public Facilities Corp.'s $53.995 million conference center and hotel series A-2 bonds is 'BB-' with a stable outlook. The bonds are rated 'A' under ACA Financial Guaranty Corp.'s guarantee. Bond proceeds were used to build a 500-room Westin hotel and conference center in the Village of Lombard, Illinois. This project was rated confidentially at issuance and was monitored. The corporation requested that the underlying rating be made public following the successful completion of construction. Hotel net revenues secure the bonds. Lombard Village has entered into a hotel management agreement with Westin Management Corp., a subsidiary of Starwood Hotels & Resorts Worldwide Inc. (BBB- /Stable/--), for a 15-year term under which Westin will operate and manage the hotel. MAGNA ENTERTAINMENT: Appoints Ron Charles to Board of Directors --------------------------------------------------------------- The Board of Directors of Magna Entertainment Corp. appointed Ron Charles to its Board of Directors. Mr. Charles is Executive Director, MEC California Operations. He is also a founding member and former Chairman of the Board of the Thoroughbred Owners of California. Based in Aurora, Ontario, Magna Entertainment Corp. (NASDAQ: MECA; TSX: MEC.A) -- http://www.magnaentertainment.com/-- acquires, develops, owns and operates horse racetracks and related pari- mutuel wagering operations, including off-track betting facilities. MEC also develops, owns and operates casinos in conjunction with its racetracks where permitted by law. MEC owns and operates AmTote International Inc., a provider of totalisator services to the pari-mutuel industry, XpressBet(R), a national Internet and telephone account wagering system, as well as MagnaBet(TM) internationally. Pursuant to joint ventures, MEC has a fifty percent interest in HorseRacing TV, a 24-hour horse racing television network and TrackNet Media Group LLC, a content management company formed for distribution of the full breadth of MEC's horse racing content. * * * As reported in the Troubled Company Reporter on March 23, 2007, Chartered accountants, Ernst & Young LLP, expressed substantial doubt about Magna Entertainment'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 operating losses and working capital deficiency. MAX CAPITAL: S&P Rates Preferred Shares & Subor. Debt at "BB" ------------------------------------------------------------- Standard & Poor's Ratings Services has assigned its preliminary 'BBB-' senior debt, 'BB+' subordinated debt, and 'BB' preferred shares ratings to Max Capital Group Ltd.'s $500 million mixed- shelf offering. "The ratings reflect Max Capital's good competitive position as a diversified insurance and reinsurance company, adequate risk management, good operating performance, and strong capitalization," said Standard & Poor's credit analyst Damien Magarelli. Financial leverage is low at the holding company level, and the debt-to-capital ratio is expected to be 8% in 2007. Max Capital's account diversification is expected to improve through the growth of its U.S. excess and surplus platform; along with the company's Bermuda presence and flexible dividend capacity, this supports good financial flexibility. Max Capital allocates more than 20% of its total invested assets to hedge funds. This allocation is expected to be reduced to 20% in 2007, however, and the remaining investment portfolio is made up of high-quality, fixed-income assets. As a result, investments are a neutral rating factor at this time. Negative factors to the rating are the company's limited scale and market presence, its high-risk profile of underwriting difficult classes of casualty exposures, some recent management turnover, and two restatements in 2006. Max Capital is not expected to be positioned for a positive outlook in 2007 or 2008 as there are limiting characteristics to the rating, including the company's limited market presence and scale, regulatory risk, potential pricing pressure for casualty writings, and an outsourced life reinsurance claims function. A negative outlook is possible if the allocation to hedge funds increases, the company has higher earnings volatility than expected, or the combined ratio is more than 100%. METABOLIFE INT'L: U.S. Trustee Says Joint Plan is "Unconfirmable" ----------------------------------------------------------------- Steven Jay Katzman, the U.S. Trustee for Region 15, asks the U.S. Bankruptcy Court for the Southern District of California to deny approval of Metabolife International Inc., nka MII Liquidation Inc., and Alpine Health Products LLC, nka AHP Liquidation LLC's Amended Joint Plan of Liquidation. The Trustee discloses that the Plan presented to the Court appears to be a vehicle for ratifying a comprehensive settlement between a group of ephedra plaintiffs and a group of ephedra defendants. The Trustee says that to the extent that the Plan reflects a voluntary settlement of these disputes, affects only those persons who have agreed to be bound to its terms, and is limited with the Court's jurisdiction, then he does not object to the Plan. However, the Trustee reveals, the Plan goes much further than merely being a voluntary compromise between willing parties. The non-debtor releases proposed under the Plan will affect not only the rights of those who signed the settlement but also claimants who refuse to join the settlement. It also includes persons who may have claims against no-debtor releases. The Trustee further says that the releases require the Court to enjoin claims asserted by non-debtors against non-debtors, on matters that may be wholly independent of any claims against the estates. The Plan, in addition, violates both the Bankruptcy Code and public policy buy purporting to enjoin substantially all third-party claims against professionals, officers and other "related parties" of the Plan proponents in connection with this case, including claims or willful misconduct. The Trustee contends that involuntary releases are beyond the power of the Bankruptcy Court and have been expressly prohibited by the Ninth Circuit. Thus, the Plan is unconfirmable since it violates Sections 524(e) and 1129(a)(1) of the Bankruptcy Code. Overview of the Plan Under the Amended Joint Liquidating Plan, as filed by the Debtors, the Official Committee of Unsecured Creditors, the Official Committee of Indemnity Creditors, and shareholders Michael Ellis, William R. Bradley, and Michael Blevins, the Debtors will cease their operations and pay their creditors from: * cash on hand; * insurance proceeds; * third-party settlement payments; * cash proceeds from the liquidation or sale of the remaining assets held by the Debtors; and * proceeds, if any, received in connection with the prosecution of Reserved Claims for Relief. The Plan Proponents discloses that the Plan is being funded in large part through $45,850,858 in settlement payments made by certain of the Debtors' Liability Insurers, Shareholders, Idemnitees, Indemnitee Insurers, and D&P Insurers under a Settlement Agreement. Terms of the Plan Under the Plan, Administrative Expense Claims, Priority Tax Claims, Secured Claims and Priority Non-Tax Claims, are unimpaired and will be paid in full. Fully Insured Claims are also unimpaired and will be satisfied from proceeds of the Fully Insured Liability Insurance Policies. Convenience Claims will receive 50% of their claims. Mediated Ephedra Claims will be determined by procedures set forth in the MII Mediation Trust Agreement and CRF. Holders will receive 100% of the "compromised" claim amount determined solely from the assets of the MII Mediation Trust. Under the Settlement Agreement, holders of Mediated Ephedra Claims agree to releases and injunctions precluding pursuit o any claim against the Debtors. General Unsecured Creditors, on the effective date, will receive: * a share of the beneficial interest in the MII GUC Trust, and * periodic pro rata share payments from available cash. General Unsecured Creditors are estimated to receive between 5% to 100% of their claims. Holders of Subordinated Claims will receive a pro rata share of available cash after all general unsecured creditors are paid in full. Holders of Waived Claims and Equity Interests will receive no distribution under the Plan. About Metabolife Headquartered in San Diego, California, Metabolife International Inc. -- http://www.metabolife.com/-- sells dietary supplements and management products in grocery, drug and mass retail locations nationwide. The Company and its subsidiary, Alpine Health Products, LLC, filed for chapter 11 protection on June 30, 2005 (Jointly Administrated Under Bankr. S.D. Calif. Case No. 05-06040). David L. Osias, Esq., and Deb Riley, Esq., at Allen Matkins Leck Gamble & Mallory LLP, represent the Debtors in their chapter 11 cases. David J. Molton, Esq., and Steve B. Smith, Esq., at Brown Rudnick Berlack Israels LLP, represent the Official Committee of Unsecured Creditors. Laura S. Taylor, Esq., at Sheppard Mullin Richter & Hampton LLP, represents the Official Committee of Indemnity Creditors. Victor A Vilaplana, Esq., at Foley & Larder LLP, represent shareholders Michael Ellis, William R. Bradley, and Michael Blevins. When the Debtors filed for protection from their creditors, they listed $23,983,112 in total assets and $12,214,304 in total debts. METABOLIFE INT'L: Plan Confirmation Hearing Set for September 10 ---------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of California set a hearing at 1:00 p.m., on Sept. 10, 2007, to consider confirmation of Amended Joint Plan of Liquidation filed by Metabolife International, Inc., nka MII Liquidation, Inc., its affiliate, Alpine Health Products, LLC, nka AHP Liquidation, LLC, the Official Committee of Unsecured Creditors, the Official Committee of Indemnity Creditors, and shareholders Michael Ellis, William R. Bradley, and Michael Blevins. Headquartered in San Diego, California, Metabolife International Inc. -- http://www.metabolife.com/-- sells dietary supplements and management products in grocery, drug and mass retail locations nationwide. The Company and its subsidiary, Alpine Health Products, LLC, filed for chapter 11 protection on June 30, 2005 (Jointly Administrated Under Bankr. S.D. Calif. Case No. 05-06040). David L. Osias, Esq., and Deb Riley, Esq., at Allen Matkins Leck Gamble & Mallory LLP, represent the Debtors in their chapter 11 cases. David J. Molton, Esq., and Steve B. Smith, Esq., at Brown Rudnick Berlack Israels LLP, represent the Official Committee of Unsecured Creditors. Laura S. Taylor, Esq., at Sheppard Mullin Richter & Hampton LLP, represents the Official Committee of Indemnity Creditors. Victor A Vilaplana, Esq., at Foley & Larder LLP, represent shareholders Michael Ellis, William R. Bradley, and Michael Blevins. When the Debtors filed for protection from their creditors, they listed $23,983,112 in total assets and $12,214,304 in total debts. METROMEDIA INT'L: CaucusCom Completes Common Stock Tender Offer --------------------------------------------------------------- CaucusCom Ventures L.P.'s wholly owned subsidiary, CaucusCom Mergerco Corp., completed its tender offer for all of the issued and outstanding shares of common stock of Metromedia International Group Inc. at a price of $1.80 per share in cash. The Offeror commenced the tender offer on July 18, 2007, pursuant to a merger agreement with Metromedia. The tender offer expired at 12:00 midnight, New York City time, on Tuesday, Aug. 21, 2007. As of the expiration of the tender offer, a total of approximately 80,161,574 shares of Metromedia common stock, including 2,001,191 common shares that were tendered pursuant to guaranteed delivery procedures, were validly tendered into the tender offer and not withdrawn. These shares represent approximately 77.6% of Metromedia's outstanding common shares, including approximately 1.9% of outstanding common shares that were tendered pursuant to guaranteed delivery procedures. All validly tendered common shares have been accepted for payment in accordance with the terms of the tender offer. CaucusCom intends to complete the acquisition of Metromedia through a merger of the Offeror with and into Metromedia in accordance with the merger agreement. About Caucuscom Ventures L.P. CaucusCom Ventures L.P. is a holding company affiliated with Salford Georgia, the local Georgian office of Salford Capital Partners Inc., an international private equity and investment management firm based in the British Virgin Islands, and Compound Capital Limited, an international private investment firm based in Bermuda. Compound is a subsidiary of Sun Capital Partners Ltd., a U.K.-based private investment firm that is not affiliated with, and has no relationship to, the U.S.-based private investment firm Sun Capital Partners Inc. About Metromedia International Group Inc. Based in Charlotte, North Carolina, Metromedia International Group Inc. (PINK SHEETS: MTRM, MTRMP) -- http://www.metromedia- group.com/ -- through its wholly owned subsidiaries, owns interests in several communications businesses in the country of Georgia. The company's core businesses include Magticom Ltd., a mobile telephony operator located in Tbilisi, Georgia, Telecom Georgia, a long distance telephony operator, and Telenet, which provides Internet access, data communications, voice telephony and international access services. * * * Moody's Investor Services assigned B3 on Metromedia International Group Inc.' subordinated debt and B2 on its junior subordinated debt on March 1994. The ratings hold to date. MGM MIRAGE: Inks Joint Venture with Dubai World for CityCenter -------------------------------------------------------------- MGM MIRAGE and Dubai World have signed definitive agreements to form a long-term strategic relationship whereby Dubai World will invest approximately $5 billion in MGM MIRAGE consisting of a $2.7 billion investment in CityCenter and up to $2.4 billion in purchases of MGM MIRAGE common stock. The companies will enter into a 50/50 joint venture in the landmark CityCenter development in Las Vegas and Dubai World will acquire a significant minority equity position in MGM MIRAGE. The joint venture, CityCenter Holdings LLC, will be owned equally by MGM MIRAGE and Infinity World Development Corp., a wholly-owned subsidiary of Dubai World. Upon closing, CityCenter Holdings LLC will own 100% of CityCenter, a mixed-use luxury residential, resort and retail complex being developed by MGM MIRAGE on the Las Vegas Strip. In addition to investing in the joint venture, Dubai World through Infinity World Investments, will purchase up to 28.4 million shares of MGM MIRAGE representing approximately a 9.5% equity stake. Dubai World will accomplish this through a combination of a public tender offer for 14.2 million shares of the outstanding stock at a price of $84 per share, which represents an approximate 13% premium over Aug. 21's closing price, and an agreement to subsequently purchase an additional 14.2 million shares directly from the company at the same price, for a combined investment of approximately $2.4 billion. The companies anticipate that the joint venture investment will close by the end of the year, and that the tender offer will commence during the week of Aug. 27, 2007. The parties anticipate that the purchase of shares from MGM MIRAGE will close concurrently with or soon after the closing of the tender offer subject to requisite approvals. In connection with the joint venture, Dubai World will initially contribute approximately $2.7 billion for 50% of the equity in CityCenter. MGM MIRAGE will contribute the CityCenter assets which the parties have mutually valued at $5.4 billion, and receive 50% of the equity in CityCenter. After the close of the joint venture transaction, MGM MIRAGE will receive a cash distribution of $2.7 billion. By completing CityCenter on budget and on schedule, MGM MIRAGE will receive additional consideration of $100 million. The joint venture will obtain project specific financing to fund remaining project costs. MGM MIRAGE will serve as developer of CityCenter and upon completion, the joint venture will pay MGM MIRAGE a management fee to operate CityCenter's resort casino as well as the development's retail activities and the Vdara condo-hotel tower. "This is a transforming event for MGM MIRAGE and Las Vegas," Terry Lanni, chairman and CEO of MGM MIRAGE, said. "This partnership with Dubai World brings us a relationship with an internationally- respected developer of large-scale luxury properties that attract an international clientele. Dubai World's proficiency in real estate, combined with our company's operational expertise, strong brands and world-renowned resorts, creates competitive advantages that we believe will benefit all of our stakeholders. We are extremely pleased to be working with Dubai World. We have a tremendous amount of respect for Sultan Bin Sulayem and all that his company has accomplished." "This transaction is immediately accretive to long term earnings and will have a profound impact on our balance sheet," Mr. Lanni continued. "Dubai World is making a significant investment in our company that will greatly increase our growth and earnings. We welcome Dubai World's long term commitment to our company through the joint venture and these share purchases." "This project brings together two companies known for creating landmark developments that have the ability to change the face of luxury living and destination tourism," Sultan Bin Sulayem, chairman of Dubai World said. "In seeking international expansion, we chose a partner who would complement our strengths in large-scale development well as share our view of investing for the long-term. We were attracted by MGM MIRAGE's superior assets, locations, and brands. Terry Lanni and his management team have a proven ability to create extraordinary customer experiences that generate demand and earn customer loyalty." "Our vision is to create a global portfolio of signature properties that will create value for generations to come," Sultan Bin Sulayem, continued. "The unprecedented CityCenter will redefine the luxury lifestyle and incorporate world-class elements of fine art and design, fulfilling our goal of creating landmark developments while further expanding into the important U.S. real estate market. We look forward to making this project an international success and sharing in other opportunities for expansion with MGM MIRAGE." Targeted for completion in late 2009, CityCenter is a luxury urban metropolis defined by its vertical architecture rising from the Las Vegas Strip. CityCenter's design team includes Daniel Liebeskind, Lord Norman Foster, and Rafael Vinoly. The self-contained city-within-a-city will include: * a Cesar Pelli-designed 4,000-room resort casino; * approximately 470,000 square-feet of retail and entertainment space; * 2,650 luxury condominiums and condo-hotel units in multiple towers; and * two 400-room non-gaming boutique hotels, one of which will be managed by luxury hotelier Mandarin Oriental. Credit Suisse Securities acted as financial advisors to Dubai World. UBS Investment Bank served as financial advisors to MGM MIRAGE. Paul, Hastings, Janofsky & Walker LLP acted as legal counsel to Dubai World and Christensen, Glaser, Fink, Jacobs, Weil & Shapiro, LLP acted as legal counsel to MGM MIRAGE. About Dubai World Dubai World is a major investment holding company with a portfolio of businesses that includes DP World, Jafza, Nakheel, Dubai Drydocks, Maritime City, Istithmar, Kerzner, One & Only, Atlantis, Barney's, Island Global Yachting, Limitless, Inchcape Shipping Services, Tejari, Technopark and Tamweel. The Dubai World Group has more than 50,000 employees in over 100 cities around the globe. The group also has real estate investments in the US, the UK and South Africa. In the last five years, Dubai World has developed 80,000 luxury residential villas and apartments and approximately three million square feet of retail space. About MGM MIRAGE Headquartered in Las Vegas, Nevada, MGM Mirage (NYSE: MGM) -- http://www.mgmmirage.com/-- is a hotel and gaming company. It owns and operates 17 properties located in Nevada, Mississippi and Michigan, and has investments in three other properties in Nevada, New Jersey and Illinois. MGM MIRAGE: Dubai World Deal Cues S&P's Positive CreditWatch ------------------------------------------------------------ Standard & Poor's atings Services placed its ratings for MGM MIRAGE, including its 'BB' corporate credit rating, on CreditWatch with positive implications. The CreditWatch listing follows MGM MIRAGE's announcement that Dubai World, the investment holding firm of the Dubai government, will acquire a 9.5% stake in MGM MIRAGE and a 50% share of the company's CityCenter development. Gross proceeds to MGM MIRAGE are expected to be about $3.9 billion. While the company has not publicly declared its intention with this cash, management's announcement stated that the transaction will have a profound impact on its balance sheet. If a significant portion of the proceeds are used to permanently reduce debt, a one-notch upgrade of the ratings would be considered. In resolving the CreditWatch listing, S&P will meet with management in the next several weeks to discuss its intermediate- term strategic and financial objectives. S&P review will consider several key factors, including: An assessment of management's intermediate term leverage target, incorporating its intentions relative to capital spending, share repurchases, dividends, and additional investment opportunities; An update on the business environment; and How the joint venture will be capitalized, and what portion of that debt will be attributed to the parent. "A ratings upgrade is not a foregone conclusion, and will depend on the company's willingness to maintain leverage in the 4x to 5x area over time," noted Standard & Poor's analyst Ben Bubeck. "As stated previously, if an upgrade is the ultimate conclusion of our review, it will likely be limited to one notch." MGM MIRAGE: Fitch Affirms "BB" Issuer Default Rating ---------------------------------------------------- Fitch Ratings has affirmed MGM MIRAGE's ratings and revised its Outlook to Stable from Negative. These ratings are affected: -- Issuer Default Rating 'BB'; -- Senior credit facility 'BB'; -- Senior notes 'BB'; -- Senior subordinated notes 'B+'. The revision to a Stable Outlook reflects the $5 billion investment in MGM MIRAGE by Dubai World announced which includes a $2.7 billion investment in CityCenter and a 9.5% equity stake in MGM MIRAGE stock for $2.4 billion. The companies will enter into a 50/50 joint venture called CityCenter Holdings LLC that will own 100% of the CityCenter project. CityCenter assets are valued at $5.4 billion with MGM receiving a $2.7 billion cash distribution upon closing of the transaction. MGM will continue as developer of the project and MGM can also receive another $100 million if it completes the project on budget ($7.4 billion) and on schedule (late 2009 opening). MGM will receive management fees for operating certain assets upon completion. The Outlook revision incorporates the reduction of longer term restructuring risk and potential balance sheet improvement from the Dubai World investment. Fitch will assess how the capital infusion is deployed and its effect on the company's credit profile, but believes potential development/investment opportunities are likely to offset sustainable balance sheet improvement to a level consistent with a higher rating category. Further improvement in the rating could occur as a result of demonstrated balance sheet improvement that is sustained. MGM's credit metrics have historically been somewhat weak for its rating category, which has been mitigated by its high-quality asset portfolio, strong competitive position, and high degree of financial flexibility and liquidity. As of June 30, MGM had $13.56 billion in debt and generated $2.4 billion in LTM adjusted EBITDA for leverage of roughly 5.7 times. LTM interest coverage was roughly 3.2x-3.3x. Fitch views positively that MGM has been entering into agreements and partnerships that seek to create value from its real estate assets, brand portfolio, and development and management capability. Through JVs, the company has been mitigating the stress on its balance sheet, by providing primarily land and intangible assets with limited capital commitments. MORTGAGE ASSISTANCE: June 30 Balance Sheet Upside-Down by $892,690 ------------------------------------------------------------------ Mortgage Assistance Center Corp.'s consolidated balance sheet at June 30, 2007, showed $10.4 million in total assets and $11.3 million in total liabilities, resulting in an $892,690 total stockholders' deficit. The company reported a net loss of $321,129 for second quarter ended June 30, 2007, compared with a net loss of $87,445 for the same period in 2006. Gross operating revenue for the three months ended June 30, 2007, was $2.1 million compared with $709,656 for the three months ended June 30, 2006, an increase of $1.4 million, or 191%. Margin contribution dollars increased to $843,254 from $317,814, an increase of $525,440, or 165%. Operating expenses increased to $936,245, or 45% of sales, for the three months ended June 30, 2007, from $444,241, or 63% of sales for the three months ended June 30, 2006. The decrease, as a percentage of sales, was primarily due to the leveraging impact of the significant increase in gross operating revenue. Full-text copies of the company's consolidated financial statements for the quarter ended June 30, 2007, are available for free http://researcharchives.com/t/s?22e1 Going Concern Doubt Sutton Robinson Freeman & Co. P.C., in Tulsa, Oklahoma, expressed substantial doubt about Mortgage Assistance Center Corp.'s ability to continue as a going concern after auditing the company's consolidated financial statements as of the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses from operations and accumulated stockholders' deficit at Dec. 31, 2006. About Mortgage Assistance Mortgage Assistance Center Corporation (OTC BB: MTGC.OB) through its subsidiary, Mortgage Assistance Corporation, operates as a financial services company in the United States. The company purchases, manages, and resells pools of distressed real estate secured mortgages and promissory notes. It acquires both priority and subordinate mortgage loans or liens from banks and other lending institutions. Mortgage Assistance Center primarily purchases nonperforming, charged-off, and subprime mortgages, which are between 90 days and 2 years past due; and secured by residential real estate. The company was founded in 2003 and is based in Dallas, Texas. NEW YORK HEALTH: June 30 Balance Sheet Upside-Down by $2.2 Million ------------------------------------------------------------------ New York Health Care Inc.'s consolidated balance sheet at June 30, 2007, showed $12.1 million in total assets and $14.3 million in total liabilities, resulting in a $2.2 million total stockholders' deficit. The company's consolidated balance sheet at June 30, 2007, also showed strained liquidity with $9.7 million in total current assets available to pay $14.3 million in total current liabilities. The company reported a net loss of $68,150 for the second quarter ended June 30, 2007, compared with a net loss of $1.2 million for the same period ended June 30, 2006. The net loss for the three months ended June 30, 2007, includes net income of $270,430 from the operations of the home health care segment and offset by a net loss of $338,580 from the BioBalance segment. The net loss of $1.2 million for the three months ended June 30, 2006, includes net income of $64,602 from the home health care segment and offset by a net loss of $1.3 million from the BioBalance segment. Revenues for the three months ended June 30, 2007, decreased to $10.8 million from approximately $11.0 million for the three months ended June 30, 2006. The net income for the home healthcare segment for the three months ended June 30, 2007, was $270,430 as compared to $64,602 for the three months ended June 30, 2006. The increase in net income for the home healthcare segment was primarily due to a decrease of $304,069 in selling, general and administrative expenses. To date BioBalance has not generated any revenues and does not have any cost of sales expense. For the three months ended June 30, 2007, the BioBalance segment showed a net loss of $338,580 compared to a net loss of $1.3 million for the three months ended June 30, 2006. The main reason for the decrease in net loss is the significant decrease in SG&A and product development expenses. Selling, general and administrative expenses for the BioBalance segment for the three months ended June 30, 2007, decreased by $410,133 to $159,850 from $569,983 for the three months ended June 30, 2006. The decrease is primarily due to the temporary scaling back of BioBalance operations due to a lack of available funding, including the surrender of its office lease and reduction of personnel. Product development costs for the BioBalance segment for the three months ended June 30, 2007, were $178,794 as compared to $723,219 for the three months ended June 30, 2006. The decrease is due to the temporary scaling back of clinical testing and research activities in response to the lack of available funding. Full-text copies of the company's consolidated financial statements for the year ended June 30, 2007, are available for free at http://researcharchives.com/t/s?22e0 Going Concern Doubt Holtz Rubenstein Reminick LLP, in New York, expressed substantial doubt about New York Health Care Inc.'s ability to continue as a going concern after auditing company's consolidated financial statements as of the year ended Dec. 31, 2006. The auditing firm pointed to the company's losses and negative working capital. About New York Health New York Health Care Inc. (OTC BB: BBAL.OB) is currently engaged in two industry segments, the delivery of home healthcare services and the development of proprietary biotherapeutic agents for the treatment of various gastrointestinal disorders. The company is a New York corporation incorporated in 1983. The company is headquartered in Brooklyn, New York. OGLEBAY NORTON: Board Asks Shareholders to Snub Harbinger's Offer ----------------------------------------------------------------- Oglebay Norton Company's board of directors recommended that shareholders would take no action with respect to the unsolicited tender offer from Harbinger Capital Partners Master Fund I Ltd. and Harbinger Capital Partners Special Situations Fund L.P. to purchase all of the outstanding shares of Oglebay Norton's common stock for $31 per share in cash. The Oglebay Norton board reached its recommendation, in consultation with its financial and legal advisors, and after a special committee of independent directors advised the board that it does not believe that it can properly evaluate Harbinger's offer, and is therefore unable to take a position with respect to Harbinger's offer, until the review of strategic alternatives, which was disclosed on July 24, 2007, is complete and any alternative transactions have been carefully considered in relation to Harbinger's offer. Accordingly, the board recommends that all Oglebay Norton shareholders take no action at this time with respect to Harbinger's offer and not tender their shares. "Oglebay Norton's board of directors is committed to maximizing value for all Oglebay Norton shareholders, and we are taking all appropriate steps to realize this goal," Michael Lundin, Oglebay Norton president and CEO, said. "Our board is undertaking a full and thorough exploration of the company's strategic alternatives, including a possible sale or merger. Numerous potential buyers have been contacted as part of this process, which we believe could generate value greater than the $31 per share offered by Harbinger." "Furthermore, our board and management team are committed to continuing to execute on our strategic plan to further enhance shareholder value," Mr. Lundin added. "Since being appointed, Oglebay Norton's new management team has successfully restructured the company, sold non-core assets, reduced debt and costs, and increased the Company's net income. As a result of these and other achievements, we now have a stronger foundation in place. This, together with Oglebay Norton's high-quality reserves, positions us well to capitalize on the demand in our markets. We appreciate the support shareholders have expressed in our leadership team and in the actions we have taken to date and will continue to take." In recommending that all Oglebay Norton shareholders take no action at this time with respect to Harbinger's unsolicited offer and not tender their shares, the Oglebay Norton Board considered, among others, the following factors: -- The special committee believes that the outcome of the company's evaluation of strategic alternatives could generate greater value for shareholders than Harbinger's $31 per share offer. Since the formation of the special committee and its review of strategic alternatives to maximize shareholder value on July 24, 2007, the company has received unsolicited interest from potential strategic and financial bidders concerning a potential transaction. In response to this interest and after authorization by the board of directors, on Aug. 13, 2007, J.P. Morgan Securities Inc., the company's financial advisor in connection with the review of strategic alternatives, began contacting potential strategic and financial bidders to assess their interest in a possible business combination with the company. -- The special committee believes that it is suited to consider a sale of the company. Harbinger has provided written notice to the company that it intends to nominate seven directors for election at the company's 2007 annual meeting and effectively replace all of the company's independent directors. Four of Harbinger's nominees are directors and/or officers of General Chemical Industrial Products Inc., which the company believes is owned approximately 85% by Harbinger. As further discussed in the company's recommendation materials, beginning in late 2006 and continuing through June 2007, Oglebay Norton and General Chemical held discussions regarding a potential business transaction. The special committee believes that its independent members will have a more objective view with respect to a business combination involving the company than a board hand-picked by Harbinger. -- Harbinger's offer provides limited ability to share in the company's future prospects. Harbinger asserts that its offer provides the opportunity for shareholders who believe in the long-terms prospects of the company to continue to hold an equity investment in the company. Yet, if Harbinger's offer is consummated, the company's remaining shareholders will likely hold a highly illiquid investment. Highly illiquid stocks are lightly traded and generally do not reflect the market's views of an issuer's performance as accurately as more liquid stocks. -- Harbinger's offer does not contain a definitive financing plan. Harbinger's offer provides only a general description of its plans to finance its offer. Harbinger's offer documents state that Harbinger will be able to fund its offer entirely with "working capital and available lines of credit, revolvers, margin borrowings and from its ability to realize cash upon the sale of liquid securities." Given the recent deterioration of the financial markets, Harbinger could face significant challenges in its attempt to finance its offer. -- Harbinger's offer is highly conditional. Harbinger's offer is highly conditional for the benefit of Harbinger, resulting in substantial uncertainty for Oglebay Norton's shareholders as to whether it will be completed. In total there are 12 conditions, each of which must be satisfied before Harbinger will be obligated to purchase any shares tendered into their offer. Several of the conditions provide Harbinger with broad discretion to determine whether the conditions have or have not been satisfied. In addition, some of the conditions are not subject to any materiality thresholds at all or otherwise provide Harbinger with a broad range of grounds upon which they may decline to consummate the offer even if sufficient shares are tendered to satisfy their minimum tender condition. Oglebay Norton also stated that its board has extended the distribution date under the company's shareholder rights plan until the close of business on Sept. 7, 2007. Oglebay Norton is distributing a recommendation statement to its shareholders. The recommendation statement contains complete information regarding the board's determination and recommendation with respect to Harbinger's offer. The board urges shareholders to consider this information carefully. JPMorgan is serving as lead financial advisor to Oglebay Norton, and Imperial Capital, LLC is co-financial advisor. Jones Day is serving as legal counsel, and Georgeson Inc. as proxy advisor. About Oglebay Norton Company Based in Cleveland, Ohio, Oglebay Norton Company (OGBY.PK) -- http://www.oglebaynorton.com/-- provides essential minerals and aggregates to a broad range of markets, from building materials and environmental remediation to energy and industrial applications. * * * As reported in the Troubled Company Reporter on July 31, 2007, Standard & Poor's Ratings Services revised its CreditWatch implications to negative from developing on Oglebay Norton Co., which has a 'B' corporate credit rating. ORBITAL SCIENCES: Inks $100 Million Revolving Credit Facility ------------------------------------------------------------- Orbital Sciences Corporation entered into a new $100 million revolving credit facility. The new five-year credit arrangement, which matures in August 2012, replaces the company's existing $50 million revolving credit facility, which was scheduled to mature in December 2009. The new facility permits the aggregate commitment to increase up to $175 million, subject to the availability of additional commitments. The new facility is led by Citi. Also participating in the facility are Bank of America, Wachovia Bank, PNC Bank and Sovereign Bank. "We believe that the terms and conditions of the new credit facility reflect the financial strength of Orbital. The significantly lower pricing structure and generally less restrictive covenants provide Orbital greater financial flexibility to support the company's growth strategy and to improve our profitability," said Mr. Garrett E. Pierce, Orbital's vice chairman and chief financial officer. Orbital Sciences Corp. (NYSE: ORB) -- http://www.orbital.com/-- develops and manufactures small rockets and space systems for commercial, military and civil government customers. * * * Orbital Sciences $143.8 million 2.4375% convertible subordinated notes due in 2027 carries Standard & Poor's Ratings Services B+ rating. That rating was assigned in December 2006. PAC-WEST TELECOMM: Wants Exclusive Plan Filing Moved to Nov. 26 --------------------------------------------------------------- Pac-West Telecomm Inc. and its debtor-affiliates ask the United States Bankruptcy Court for the District of Delaware to further extend their exclusive periods to a. file a Chapter 11 plan until Nov. 26, 2007; and b. solicit acceptances of that plan until Jan. 25, 2008. The Debtors' exclusive period to file a plan will expire on Aug. 28, 2007. Norman L. Pernick, Esq., at Saul Ewing LLP, said that the Debtors filed the request for extension out of abundance of caution. The Debtors remind the Court that on July 31, 2007, they filed a Disclosure Statement and Chapter 11 Plan of Reorganization. The Debtors assure the Court that the extension is not to pressure creditors to accept the plan but to facilitate an efficient and cost-effective plan for the benefit of all creditors. The exclusivity extension hearing will be held at 2:00 p.m, on Sept. 5, 2007. Based in Stockton, California, Pac-West Telecomm Inc. (OTC: PACW.PK) -- http://www.pacwest.com/-- provides switched local and long distance telecommunications services to, among others, internet service providers and paging companies. The company and its affiliates filed for Chapter 11 protection on April 30, 2007 (Bankr. D. Del. Case Nos. 07-10562 through 07-10567). Jeremy W. Ryan, Esq. and Norman L. Pernick, Esq. of Saul, Ewing, Remick & Saul LLP represent the Debtors in their restructuring efforts. Steven K. Kortanek, Esq., at Womble Carlyle Sandridge & Rice, PLLC represents the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed total assets of $53,883,888 and total debts of $66,358,711. PIERRE DEVELOPMENT: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Pierre Development L.L.C. 37 Market Street Kenilworth, NJ 07033 Bankruptcy Case No.: 07-21885 Type of business: The Debtor is a real estate developer. Chapter 11 Petition Date: August 21, 2007 Court: District of New Jersey (Newark) Debtor's Counsel: Barry W. Frost, Esq. Teich Groh 691 State Highway 33 Trenton, NJ 08619-4407 Tel: (609) 890-1500 Estimated Assets: Less than $10,000 Estimated Debts: $1 Million to $100 Million Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Maple Management $237,840 558 Millstone River Road Belle Mead, NJ 08502 One Associates $96,665 P.O. Box 705 Rocky Hill, NJ 08553 Buchanan Ingersoll & Rooney, $88,122 P.C. One Oxford Centre Pittsburgh, PA 15219 Vacca Roofing $28,350 Utica National Insurance $23,378 Billing Dept. Business Card $18,899 Harbor Consultants $17,100 Eagle Fire Protection $8,374 Silbert Realty & Management $8,000 Co. Budd Larner $7,338 Leonard C. Green & Co. $5,500 Galbrath Landscaping $4,768 Johnstone Skok Loughlin & $2,898 Lane N.J. American Water Co. $1,348 Bender Enterprises $894 Xerox Corp. $477 Anthony & Company $446 D.C. Express, Inc. $311 J.M. Sorge $300 Fed Ex $168 PLAQUEMINES PARISH: Moody's Lifts Tax Debt Rating to Baa1 from Ba1 ------------------------------------------------------------------ Moody's Investors Service assigned a Baa1 rating to Plaquemines Parish $5 million Revenue Bonds, Series 2007 and upgraded to Baa1 from Ba1 with a positive outlook the rating $12.4 million in outstanding sales tax debt. The bonds are secured by a 1% sales and use tax levied within the limits of the Parish. In November of 2005, the Parish's sales tax rating was downgraded to Ba2 from A3 and placed on Watchlist with the direction uncertain. At that time, the downgrade reflected the unknown affects on pledged revenues after Hurricane Katrina. In March of 2006 the rating was upgraded to Ba1 and a positive outlook was assigned based on continued operations at the large oil and gas companies in the Parish which were operating and supporting positive sales tax collections since October of 2005. The positive outlook reflected Moody's belief that the area's large petrochemical companies would continue to sustain pledged revenues and to drive recovery in the Parish. The upgrade now to Baa1 reflects the recovery and sustainability that is taking place in the Parish as indicated through solid sales tax collections, an expanding tax base to support ongoing sales tax collections and continued strength in financial operations. POSITIVE SALES TAX COLLECTIONS The Parish is located in southeastern Louisiana and sustained severe flooding which devastated the southern part of the Parish. Oil and gas is a dominant factor in the local area comprising 40% of the top ten taxpayers in the tax base. Considering that the largest sales tax dealers are largely related to the oil and gas industry, the refineries have been key to the recovery in the economy and in financial stability. As expected, sales tax collections were disrupted in September of 2005 causing a 33% decline in revenues compared to the prior year; however, sales taxes recovered in October and increased 38% over the prior year. The Parish operates on a calendar fiscal year. The 2005 fiscal year ended with a 4% decrease over the prior year. The 2006 fiscal year ended with a significant 53% increase over fiscal 2005 to $8.8 million. Despite this strong increase, the Parish budgeted $7 million for 2007 and projections indicate sales taxes will total $7.5 million. Although the hurricane drove a peak sales tax collection of $8.8 million and revenues will not be this high in preceding years, Moody's recognizes that sales taxes remain healthy. Moody's believes that sales tax collections could continue to improve and exceed pre-storm years with ongoing recovery in the local economy. DEBT SERVICE COVERAGE ANTICIPATED TO REMAIN SOLID The bonds are secured by a 1% sales tax approved by voters at an election held on January 18, 1992. Historically, the sales tax has produced 6% average annual growth and in fiscal 2005, sales tax revenues were $5.7 million. Since the peak year of sales taxes was in 2006, Moody's used 2005 revenues to calculate debt service coverage. With maximum annual debt service of $1.9 million to occur in 2014, 2005 revenues would cover debt service by a strong 2.88 times. This is the most conservative calculation with no revenue growth assumed and peak debt service used indicating that coverage is a positive credit factor which is key to the Baa1 rating assignment. The Parish has over $1 million in debt service reserves providing additionally financial security for the bonds. HEALTHY FINANCIAL OPERATIONS SHOULD CONTINUE Prior to Katrina, Parish officials had established a long trend of maintaining strong General Fund balances. In fiscal 2003, the fund balance increased to $43 million, or 114.8% of General Fund revenues. Of this amount, $26.2 million, or 69.3%, was unreserved. In fiscal 2004, the unreserved fund balance increased to $27 million. The Parish receives significant dollars in royalties from oil wells, which are based on the wells' gross revenues. In fiscal 2004 the Parish received $12.7 million from the 10% in royalties they receive from wells on state property and $11.5 million from oil royalties on parish owned property. Royalties typically provide 60% of General Fund revenues while sales taxes and property taxes contribute 15% and 7% respectively. With fiscal year audits for 2005 and 2006 completed, the Parish has been able to produce very strong financial reserves and manage strongly through the storm recovery process. The unreserved fund balance was $70 million, or 130% of revenues in fiscal 2005 and $87 million, or 106% of revenues in fiscal 2006. This level includes some designations; however, these designations are flexible and amounts could be drawn on for contingency purposes. The undesignated fund balance is also strong with $16 million, or 19% of revenues, for fiscal 2006. The rating upgrade to Baa1 takes into consideration Moody's belief that the Parish will remain financially sound and continue practicing prudent fiscal management. TOTAL PROPERTY TAX ASSESSMENT BETTER THAN EXPECTED Because the Belle Chasse area was not severely damaged from the hurricane and the refineries are operating, estimates in early February were that the assessed valuation would remain at 75% of the value before the hurricane. The 2007 full valuation of $3.2 billion was down about 5% from the $3.5 billion reported in fiscal 2005. The Parish only receives about 6% of its General Fund revenues from property taxes. KEY STATISTICS: 2007 Population: 20,348 2007 Full Valuation: $3.2 billion Overall debt ratio (general obligation and sales tax debt): 1.6% Payout of principal in 10 years (all debt): 73.3% Maximum annual debt service (2005 revenues): 2.88 time PRIDE INT'L: Buys 9% Remainder of Angolan Joint Venture Stake ------------------------------------------------------------- Pride International Inc. said Wednesday that it acquired the remaining 9% interest in its Angolan joint venture company from a subsidiary of Sonangol, the national oil company of Angola. The joint venture owns the two deepwater drill ships Pride Africa and Pride Angola and the 300 ft. independent-leg jackup rig Pride Cabinda, and holds management agreements for the deepwater platform rigs Kizomba A and Kizomba B. The acquisition increases Pride's ownership in the three mobile offshore drilling units and the two management agreements, along with related working capital, to 100 percent. Cash consideration in the transaction of $45 million was paid with cash on hand and borrowings under the company's revolving credit facility. The transaction brings Pride's total investment in high specification, deepwater drilling rigs, including commitments to construct two ultra-deepwater drill ships, to just over $2 billion since late 2005. About Pride International Headquartered in Houston, Texas, Pride International Inc. (NYSE: PDE) -- http://www.prideinternational.com/-- provides onshore and offshore drilling and related services in more than 25 countries, operating a diverse fleet of 277 rigs, including two ultra-deepwater drill ships, 12 semisubmersible rigs, 28 jackups, 16 tender-assist, barge and platform rigs, five managed deepwater rigs and 214 land rigs. The company has two additional ultra- deepwater drill ships under construction with expected deliveries in 2010. The company has reached a definitive agreement to sell its Latin America-based land drilling and work over rigs, two lake drilling barges and E&P Services business with an expected closing by the end of the third quarter of 2007. In addition, the company has announced an agreement to sell its three tender-assist rigs, with an expected closing in early 2008. * * * As reported in the Troubled Company Reporter on July 30, 2007, Moody's affirmed Pride International, Inc.'s credit ratings following the company's announcement of the acquisition of a newbuild drillship to be delivered in 2010. The affirmed ratings include the Ba1 corporate family rating, the Ba2 rating on Pride's $500 million senior notes due 2014, the Baa2 rating on its $500 million senior secured credit facility and speculative grade liquidity rating of SGL-2. The outlook is stable. PULTE HOMES: Credit Woes Prompt Moody's Ratings Review ------------------------------------------------------ Moody's Investors Service placed all of the ratings of Centex Corporation, Lennar Corporation, and Pulte Homes Inc. under review for downgrade. The review was prompted by the materially weaker operating environment facing homebuilders, the dramatic change in the credit environment surrounding the industry versus only a few weeks ago, and the possibility of a substantive spill over effect on the industry if the blowback from the structured products markets continues unabated. The review will focus on these issues: (i) The ability of the three companies to reduce physical inventories going forward. To date, the bulk of their inventory reduction has been reflected in their financial statements through accounting charges, such as impairments, option abandonments, and other write-downs. As industry cancellation rates seem now to be spiking up for the second time, these physical inventory reductions will be harder to achieve. (ii) The companies' ability to continue generating positive cash flow, in part because of their limited success to date in reducing physical inventory and in part from the recent resurgence of cancellation rates. Other factors necessitating the examination include Centex and Pulte's lag in generating positive cash flow compared to prior expectations and the impact of a significant level of off-balance sheet activity on Lennar's cash flow. (iii) Whether the companies will be able to reduce costs sufficiently to once again sustain profitable operations, excluding the impact of impairments, option abandonments, and other charge-offs. In recent quarters, the three companies have generated modest quarterly losses, even after excluding the aforementioned charges. Moody's generally does not expect investment grade companies to generate even modest quarterly losses for a lengthy period. (iv) Whether the companies will take the necessary steps to conform their debt structures to the currently frail business environment. (v) Whether the companies will be able to substantially reverse their current underperformance on key credit metrics before 2009. Moody's anticipates that the review will be conducted on an expedited basis. If the determination from the review is that ratings should be changed, it is likely that Pulte's ratings will be lowered by only one notch, with the company's ratings then taken off review. The ratings of Lennar and Centex, however, could either be lowered by one notch and kept on review for further downgrade, or they could be lowered by two notches and then taken off review. These ratings were placed under review for downgrade: Centex Corporation * Baa2 rating on approximately $3.7 billion of senior unsecured notes * P-2 rating on $1.25 billion commercial paper program Lennar Corporation * Baa2 rating on approximately $2.2 billion of senior unsecured notes * P-2 rating on $2 billion commercial paper program Pulte Homes, Inc. * Baa3 rating on approximately $3.48 billion of senior unsecured notes Founded in 1950 and headquartered in Dallas, Texas, Centex Corporation is one of the nation's leading home building companies, operating in major U.S. markets in 25 states. Revenues and net income for the trailing twelve month period ended June 30, 2007 were approximately $11.2 billion and $(20) million, respectively. Founded in 1954 and headquartered in Miami, Florida, Lennar Corporation is one of the largest homebuilders in the United States, with revenues and net income for the trailing twelve month period ended May 31, 2007 of $14.1 billion and $165 million, respectively. Headquartered in Bloomfield Hills, Michigan, Pulte Homes, Inc. is one of the country's largest homebuilders, with domestic operations in 27 states and 52 markets, as well as in Puerto Rico. Revenues and net income for the trailing twelve month period ended June 30, 2007 were approximately $11.8 billion and $(411) million, respectively. PUTNAM STRUCTURED: Moody's May Cut Ratings on Three Note Classes ---------------------------------------------------------------- Moody's Investors Service downgraded the ratings on these notes issued in 2001 by Putnam Structured Product CD0 2001-1 Ltd., a collateralized debt obligation issuer: (1) The U.S. $24,000,000 Class B Floating Rate Notes Due 2037 Prior Rating: Aa2, on watch for possible downgrade Current Rating: A2 (2) The U.S. $9,000,000 Class C-l Floating Rate Notes Due 2037 Prior Rating: Baa2, on watch for possible downgrade Current Rating: Ba3, on watch for possible downgrade (3) The U.S. $9,000,000 Class C-2 Fixed Rate Notes Due 2037 Prior Rating: Baa2, on watch for possible downgrade Current Rating: Ba3, on watch for possible downgrade According to Moody's, the rating actions reflect the deterioration of the interest coverage tests in the transaction and the failure of the weighted average coupon and weighted average spread tests. PYXIS ABS: Fitch Assigns Low-B Ratings on Two Note Classes ---------------------------------------------------------- Fitch downgrades five classes and affirms one class of notes issued by Pyxis ABS CDO 2006-1, Ltd. These rating actions are effective immediately: -- $180,000,000 class A-1 variable funding notes affirmed at 'AAA'; -- $113,500,000 class A-2 notes downgraded to 'AA' from 'AAA', and placed on Rating Watch Negative; -- $93,500,000 class B notes downgraded to 'A' from 'AA', and placed on Rating Watch Negative; -- $89,000,000 class C notes downgraded to 'BBB' from 'A', and remain on Rating Watch Negative; -- $39,176,000 class D notes downgraded to 'BB+' from 'BBB', and remain on Rating Watch Negative; -- $55,513,929 class X notes downgraded to 'BB' from 'BBB-', and placed on Rating Watch Negative. On July 12, 2007, the class C and class D notes were placed on Rating Watch Negative due to the negative migration of subprime residential mortgage-backed securities. Pyxis 2006-1 is a collateralized debt obligation that closed Oct. 3, 2006 and is managed by The Putnam Advisory Company, LLC. Pyxis 2006-1 has a revolving portfolio composed of subprime RMBS (91.8%) and CDO (8.2%) securities. Currently, 19.4% of the assets in the portfolio are cash securities and 80.6% are synthetic reference assets. Pyxis 2006-1 will exit its reinvestment period in October 2011, unless cumulative losses in the portfolio exceed $82.5 million, which would terminate the reinvestment period early. Included in this review, Fitch discussed the current state of the portfolio with the asset manager and their portfolio management strategy going forward. In addition, Fitch conducted cash flow modeling utilizing various default timing and interest rate scenarios to measure the breakeven default rates going forward relative to the minimum cumulative default rates required for the rated liabilities. The downgrades to the class A-2, class B, and class C notes are a result of the combination of increased risk in the portfolio of assets and the lack of coverage test protection until October 2011. Since the effective date trustee report dated Jan. 19, 2007, approximately 26% of the portfolio has experienced negative credit migration. The weighted average rating factor has increased to 6.78 ('BBB/BBB-') according to the Aug 6., 2007 trustee report, from 5.18 ('BBB/BBB-') at the effective date, and is failing its maximum threshold of 6. During this period, the three overcollateralization ratios have decreased due to haircuts applied to securities rated 'BBB-' or lower. The OC covenants are not effective until October 2011, therefore if any OC ratio decreases below its respective covenant within the next five years, excess spread will continue to redeem the class D and class X notes according to their payment schedules rather than divert to redeem the more senior classes. The downgrades to the class D and class X notes are due to their subordinate position in the capital structure. Though they will continue to amortize from excess spread proceeds until at least October 2011, the long-term outlook for the two classes is no longer consistent with their previous ratings. The class A-1 notes are affirmed due to the credit enhancement provided by the tranches below it in the capital structure. The class A-2, class B and class X notes have been placed on Rating Watch Negative and the class C and class D notes remain on Rating Watch Negative due to exposure to 2005 and 2006 RMBS subprime collateral, currently experiencing high default and delinquency rates, of which a substantial percentage have not been reviewed by any agency. Fitch expects to resolve the Rating Watch status on these notes as the expected performance of these bonds is more apparent. The rating of the class A-1 notes addresses the likelihood that investors will receive full and timely payments of interest and commitment fees on the drawn and unfunded amounts, respectively, as well as the aggregate outstanding amount of principal of any drawn amounts by the stated maturity date. The ratings of the class A-2 and class B notes address the likelihood that investors will receive full and timely payments of interest, as per the governing documents, as well as the aggregate outstanding amount of principal by the stated maturity date. The ratings of the class C and class D notes address the likelihood that investors will receive ultimate and compensating interest payments, as per the governing documents, as well as the aggregate outstanding amount of principal by the stated maturity date. The rating of the class X notes addresses the likelihood that investors will receive the ultimate payment of class X rated interest, as per the governing documents, as well as the ultimate return of the scheduled class X target principal amount, as per the governing documents, by the stated maturity date. ROMA PLAZA: Files Schedule of Assets and Liabilities ---------------------------------------------------- Roma Plaza 1, L.P. filed with the U.S. Bankruptcy Court for the District of Nevada its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $19,103,200 B. Personal Property $7,237,200 C. Property Claimed as Exempt $0 D. Creditors Holding Secured Claims $7,878,876 E. Creditors Holding Unsecured Priority Claims $7,399 F. Creditors Holding Unsecured Non-priority Claims $2,333,344 ----------- ----------- TOTAL $26,340,400 $10,219,619 Henderson, Nevada-based Roma Plaza 1, L.P. develops mid-rise condominiums in Las Vegas, South Boulevard area. The Debtor filed for Chapter 11 protection on July 19, 2007 (Bankr. D. Nev. Case No. 07-14366). Michael Eliot Kulwin, Esq. is the proposed counsel for the Debtor. When the Debtor filed for bankrutpcy, it listed total assets of $19,337,200 and total debts of $9,990,468. ROMA PLAZA: List of 16 Unsecured Creditors ------------------------------------------ Roma Plaza 1, L.P. delivered a list of its unsecured creditors to the U.S. Bankruptcy Court for the District of Nevada, disclosing: Entity Nature of Claim Claim Amount ------ --------------- ------------ Thomas J. Cuture Equity Participant $450,000 27887 Clemens West Lake, OH 44154 Joe Kilgore Equity Participant $426,000 10406 Lake Road Houston, TX 77070 Traylor Associates Trade Debt $328,000 5605 Gardendale, Suite B Houston, TX 77092 Doulgas Hodges Equity Participant $272,142 25170 IH 45 N, #2 Suite PMB 329 Spring, TX 77386 Intex Boiling Systems LLC Trade Debt $259,736 25170 IH, 45 N #2, Suite PMB 329 spring, TX 77386 Craig Traylor Equity Participant $224,000 5605 Gardendale, Suite B Houston, TX 77092 Wray Strohmaier Equity Participant $219,341 9970 Twin Shores Willis, TX 77318 Tom and Rose Traylor Loan $100,000 10498 Fountain Lake Drive #1021, Stafford, TX 77477 William Oksilanec Trade Debt $23,500 777 N. Rainbow Blvd., #250 Las Vegas, NV 89107 James Oskilanec Trade Debt $10,000 2270 West Gally Road Pahrump, NV 89060 Chris Durlej Trade Debt $10,000 8249 Nelson Ridge Las Vegas, NV 89178 Michael Smith Trade Debt $10,000 2311 Morning Drive Baytown, TX 77520 Nevada Power Trade Debt $309 P.O. Box 30086 Reno, NV 89520-3086 Southwest Gas Corporation Trade Debt $179 P.O. Box 98890 Las Vegas, NV 89150-0101 City of Henderson Trade Debt $98 240 Water Street P.O. Box 95050 Henderson, NV 89009-5050 Republic Services Trade Debt $36 770 East Sahara Las Vegas, NV 89193 Henderson, Nevada-based Roma Plaza 1, L.P. develops mid-rise condominiums in Las Vegas, South Boulevard area. The Debtor filed for Chapter 11 protection on July 19, 2007 (Bankr. D. Nev. Case No. 07-14366). Michael Eliot Kulwin, Esq. is the proposed counsel for the Debtor. When the Debtor filed for bankrutpcy, it listed total assets of $19,337,200 and total debts of $9,990,468. ROMA PLAZA: Wants to Hire Michael Kulwin as Bankruptcy Attorney --------------------------------------------------------------- Roma Plaza 1, L.P. asks the U.S. Bankruptcy Court for the District of Nevada for permission to employ Michael Eliot Kulwin, Esq. as its bankruptcy attorney. Mr. Kulwin is expected to: (a) record and report as required by the Bankruptcy Rules; (b) prepare applications and proposed orders to be submitted to the Court; (c) identify and prosecute claims and causes of action asserted by the Debtor, including the initiation and prosecution of adversary proceedings; (d) examine proofs of claim filed and to be filed and the possible prosecution of objections to certain of the claims; (e) advise DIP and prepare documents in connection with the ongoing operation of the Debtor's business; (f) perform all other matters reasonable and necessary to effectuate a reorganization including the preparation of appropriate disclosure statements, proposed plan(s) of reorganization and balloting. The Debtor has paid Mr. Kulwin a general retainer in the amount of $12,500. The standard billing rate to be applied for Mr. Kulwin's legal services is $295 per hour. The Debtor will also be responsible for the payment of all costs incurred in the proceeding. To the best of the Debtor's knowledge, the members and associates of the Law Offices of Michael E. Kulwin represents no interest adverse to the estate in the matters upon which it is to be retained. Henderson, Nevada-based Roma Plaza 1, L.P. develops mid-rise condominiums in Las Vegas, South Boulevard area. The Debtor filed for Chapter 11 protection on July 19, 2007 (Bankr. D. Nev. Case No. 07-14366). When the Debtor filed for bankrutpcy, it listed total assets of $19,337,200 and total debts of $9,990,468. SCOTTISH RE: Moody's Holds (P)Ba3) Sr. Unsecured Shelf Rating ------------------------------------------------------------- Moody's Investors Service affirmed the ratings of Scottish Re Group Limited (Scottish Re; NYSE: SCT, senior unsecured shelf of (P)Ba3) and changed the outlook to stable from positive. The change in outlook applies to the company's debt ratings and the Baa3 insurance financial strength (IFS) ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. (SALIC) and Scottish Re (U.S.), Inc. All of the ratings were affirmed. The company recently reported that as of June 30, 2007, it had approximately $3.1 billion of subprime ABS and Alt-A holdings out of a total investment portfolio of $13.6 billion. According to Scott Robinson, Moody's Vice President & Senior Credit Officer, "Most of the exposure is in higher rated securities, mitigating potential losses in a downside scenario in this sector of the market. Still, Moody's believes that the magnitude of the exposure and the potential for losses to emerge on the portfolio may make it more difficult for Scottish Re to regain the confidence of cedants and write meaningful amounts of new business." Moody's notes that although much of the subprime ABS and Alt-A exposure ($2.4 billion) resides in non-recourse securitization vehicles the company has sponsored, the company's substantial equity investments in these securitizations would be eroded should the investment holdings experience realized losses. As default experience on recent vintages of subprime and Alt-A investments emerges, Moody's will continue to evaluate the impact of potential ranges of investment losses on the company's financials. According to Moody's, continued deterioration of the company's subprime ABS and Alt-A investments, the inability to execute an agreement to secure collateral for redundant statutory reserves associated with 2005 and 2006 level premium term business, and a lack of steady progress on implementing its strategy would lead to downward pressure on the rating. To the contrary, the retention of existing business combined with a demonstrated improvement in originating new business, less earnings volatility, and the emergence of favorable mortality and lapse assumptions would lead to positive pressure on the ratings. These ratings were affirmed, with the outlook changed to stable from positive: Scottish Re Group Limited: * Senior unsecured shelf of (P)Ba3; * subordinate shelf of (P)B1; * junior subordinate shelf of (P)B1; * preferred stock of B2; and * preferred stock shelf of (P)B2 Scottish Holdings Statutory Trust II: * preferred stock shelf of (P)B1 Scottish Holdings Statutory Trust III: * preferred stock shelf of (P)B1 Scottish Annuity & Life Insurance Company (Cayman) Ltd.: * IFS rating of Baa3 Premium Asset Trust Series 2004-4: * senior secured debt of Baa3 Scottish Re (U.S.), Inc.: * insurance financial strength of Baa3 Stingray Pass-Through Certificates: * Baa3 (based on IFS rating of SALIC) On May 17, Moody's confirmed Scottish Re's ratings with a positive outlook. The rating action followed the completion of a $600 equity investment transaction in which Scottish Re sold a majority stake to MassMutual Capital Partners LLC, a member of the MassMutual Financial Group and Cerberus Capital Management, L.P., a private investment firm. Scottish Re Group Limited is a Cayman Islands company with principal executive offices located in Bermuda. On June 30, 2007, Scottish Re reported total assets of $13.6 billion and shareholder's equity of $1.2 billion. Moody's insurance financial strength ratings are opinions of the ability of insurance companies to repay punctually senior policyholder claims and obligations. SERVICEMASTER CO: Moody's Confirms "B2" Corporate Family Rating --------------------------------------------------------------- Moody's Investors Service assigned an SGL-2 speculative grade liquidity rating to The ServiceMaster Company. Although free cash flow is expected to be modest over the next four quarters, the company's good liquidity profile reflects a $500 million revolving credit facility and a senior credit facility that contains no financial maintenance covenants. The $500 million revolving credit facility was undrawn and fully available at the closing of the company's recently completed leveraged buyout led by Clayton, Dubilier & Rice Inc. Moody's anticipates that borrowings to meet seasonal working capital requirements during the first half of 2008 will not exceed $200 million and will be substantially repaid during the latter part of the calendar year. Based in Memphis, ServiceMaster is a leading provider of outsourcing services to residential and commercial customers, primarily in the United States. For the twelve months ended June 30, 2007, the company generated revenue of approximately $3.5 billion. The Corporate Family Rating is B2 and the ratings outlook is stable. SFA ABS: Fitch Junks Rating on $50 Million Class B Notes -------------------------------------------------------- Fitch affirms one class of notes and downgrades two classes of notes issued by SFA ABS III, Ltd. These rating actions are effective immediately: -- $83,982,310 class A notes affirmed at 'AAA'; -- $50,000,000 class B notes downgraded to 'CCC+' from 'A-' and assign a distressed recovery rating of 'DR2'; removed from Rating Watch Negative; -- $12,579,150 class C notes downgraded to 'C/DR6' from 'B/DR1'; removed from Rating Watch Negative. SFA ABS III is a collateralized debt obligation which closed on June 25, 2002 and is managed by Structured Finance Advisors. SFA III is composed of 75.5% RMBS, 14% ABS, 9.5% CDO and 1% CMBS. On July 12, 2007, the class B and class C notes were placed on rating watch negative due to the negative migration of subprime RMBS assets. Since the class B and C notes were placed on rating watch negative on July 12, 2007, 9.6% of the total portfolio has experienced negative credit migration and approximately 10.3% are on Rating Watch Negative. In addition, in Fitch's opinion, 30.1% of the assets in the portfolio are below investment grade quality, with approximately 21.6% 'CCC' or lower quality after taking into consideration the notching of assets on rating watch negative. Of the exposure to subprime RMBS in SFA III, 20.3% consists of the 2005 vintage, which are experiencing higher delinquencies and defaults. As of the most recent trustee report on July 31, 2007, the deal is failing the weighted average spread test, weighted average coupon test, the Fitch weighted average rating factor test, and the class C overcollateralization test. In addition, Fitch conducted cash flow modeling for various default timing, interest rate scenarios, and prepayment assumptions to measure the breakeven default rates going forward relative to the minimum cumulative default rates required for the rated liabilities. Fitch believes that this subprime exposure, along with credit deterioration in the portfolio has increased the risk profile of the class B and C notes. This rating analysis also incorporated Fitch's revised methodology for rating structured finance CDOs. The ratings on the class A and class B notes address the timely payment of interest and ultimate repayment of principal. The rating on the class C notes addresses the ultimate payment of interest and ultimate repayment of principal. SOUTH COAST: Fitch Cuts Rating on $32.5MM Class B Notes to B+ ------------------------------------------------------------- Fitch affirms two classes and downgrades two classes of notes issued by South Coast Funding II, Ltd. These rating actions are effective immediately: -- $299,520,790 class A-1 notes affirmed at 'AAA'; -- $40,050,000 class A-2 notes affirmed at 'AAA'; -- $42,500,000 class A-3 notes downgraded to 'A+' from 'AA-'; -- $32,500,000 class B notes downgraded to 'B+' from 'BB-' and remove from Rating Watch Negative. South Coast II is a collateralized debt obligation managed by TCW Investment Management Company, rated 'CAM1' by Fitch for managing structured finance CDOs. South Coast II exited its reinvestment period in June of 2006. South Coast II is composed of approximately 83.5% residential mortgage backed securities of which 58.4% is subprime, 21.2% is prime and 3.9% is manufactured housing, 6.2% commercial mortgage backed securities, 5.5% CDOs and 4.8% in commercial asset backed securities and consumer asset backed securities. The downgrades to the class A-3 and B notes are as a result of deterioration in credit quality of the portfolio. South Coast II has approximately 37% of RMBS subprime bonds from the 2005 and 2006 vintages. Nearly 15% of the portfolio has been downgraded since the last review in Oct. 2006 and just over 1% of the portfolio remains on Rating Watch Negative. In Fitch's view approximately 19% of the portfolio is below investment grade quality, including approximately 5.6% 'CCC' or lower quality. As of the most recent trustee report dated. Aug. 5, 2007, the WARF is 24 ('BBB-/BB+') and failing its covenant of 18('BBB/BBB-'). The Class B Principal Coverage Test is currently at 100.6% and failing its covenant of 102% and as a result interest is being diverted to pay down the most senior notes in order to cure the test. There are currently three defaulted assets in the underlying portfolio, amounting to $6.4MM of the portfolio Fitch conducted cash flow modeling utilizing default timing, interest rate scenarios, and prepayment assumptions. As a result of this analysis, Fitch has determined that the current rating assigned to the A-3 and B notes does not reflect the risk to noteholders. Fitch will continue to monitor and review this transaction for future rating adjustments. The ratings of the class A-1, class A-2 and class A-3 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 rating of the class B notes addresses the likelihood that investors will receive ultimate and compensating interest payments, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. SOUTH COAST: Fitch Lowers Rating on $28MM Class C Notes to B+ ------------------------------------------------------------- Fitch affirms six classes and downgrades one class of notes issued by South Coast Funding III Ltd. These rating actions are effective immediately: -- $270,000,000 Class A-1A Notes affirmed at 'AAA'; -- $107,000,000 Class A-1B Notes affirmed at 'AAA'; -- $38,000,000 Class A-2 Notes affirmed at 'AAA'; -- $12,000,000 Class A-3A Notes affirmed at 'AA'; -- $9,000,000 Class A-3B Notes affirmed at 'AA'; -- $10,000,000 Class B Notes affirmed at 'A-'; -- $28,000,000 Class C Notes downgrade to 'B+' from 'BBB' and remove from Rating Watch Negative. South Coast III is a collateralized debt obligation managed by TCW Asset Management Company, which closed on July 10, 2003. South Coast III exited its reinvestment period on August 10, 2007. The collateral supporting the CDO is composed of approximately 19% prime residential mortgage backed securities and 59% subprime residential mortgage backed securities including approximately 37% issued between 2005 and 2007, 4% asset backed securities, 5% commercial mortgage backed securities, 5% REITs and 7% CDOs. The downgrade of the class C notes is a result of the deterioration in credit quality of the portfolio. Approximately 9.3% of the portfolio has been downgraded since the last review. As of the latest trustee report dated Aug. 3, 2007 the WARF has increased to 16 ('BBB/BBB-') from 15 ('BBB/BBB-') at the last review. Approximately 7% of the portfolio is on Rating Watch Negative and in Fitch's view nearly 16% of the portfolio is below investment grade quality, including approximately 5.4% 'CCC' or lower quality. There is one defaulted asset in the portfolio which comprises 1% of the portfolio. Fitch conducted cash flow modeling utilizing various default timing and interest rate scenarios to compare the breakeven default rates relative to the minimum cumulative default rates required for the rated liabilities. The ratings of the class A-1A, A-1B, A-2, A-3A and A-3B 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 rating of the class B and C notes addresses the likelihood that investors will receive ultimate and compensating interest payments, as per the governing documents, as well as the stated balance of principal by the legal final maturity date. SP NEWSPRINT: S&P Retains Developing Watch on BB- Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on Atlanta, Georgia-based SP Newsprint Co., including the 'BB-' corporate credit rating, remain on CreditWatch with developing implications. The ratings were initially placed on CreditWatch on May 17, 2007, following the company's announcement that it is exploring strategic alternatives, including the possible sale of the company. Since the CreditWatch listing, there has been no new information. "We will continue to monitor developments regarding a potential transaction and resolve our CreditWatch listing when sufficient information is available," said Standard & Poor's credit analyst Andy Sookram. "If a transaction does not occur, we would remove the ratings from CreditWatch." SYNCHRONOUS AEROSPACE: Completes Sale Deal with Littlejohn & Co. ---------------------------------------------------------------- Synchronous Aerospace Group was acquired by Littlejohn & Co. LLC. "Synchronous enjoys strong positions on critical aerospace platforms and has a superb reputation with its blue-chip customer base," Edmund J. Feeley of Littlejohn & Co., said. "While most of the company's operations have been successfully serving the same customer base since the 1970s, Synchronous is still relatively young as a combined organization. We believe we can help management to build upon the strong platform and processes they have established over the past several years and accelerate the company's growth." Synchronous was initially formed in 2002 through Hancock Park Associates' acquisition of Fansteel Schulz Products. Over the succeeding three years, Synchronous grew through six add-on acquisitions, Compass Aerospace, was completed in 2005. Through this series of combinations, the company has broadened its geographic footprint well as its machining, assembly and kitting capabilities, which serve as a key means of differentiation in the marketplace. Synchronous has approximately 650 employees throughout the United States. "Global customers demand that their suppliers manufacture increasingly complicated parts and systems that require multiple competencies," Mark Heasley, president and chief executive officer of Synchronous, said. "Our expertise with complex machining, hard-metal fabrication and specialized assemblies makes Synchronous a key partner to OEMs and Tier I suppliers, as they seek to narrow their supply chains. We look forward to working with our new partners at Littlejohn to leverage our strong customer relationships and drive operational improvements throughout the business to take Synchronous to new heights." In addition to the Synchronous transaction, Littlejohn consummated the acquisitions of CoActive Technologies, the former ITT Switch business, and Van Houtte Inc., one of North America's gourmet coffee roasters, marketers and distributors. About Littlejohn & Co., LLC Headquartered in Greenwich, Connecticut and founded in 1996, Littlejohn & Co. LLC -- http://www.littlejohnllc.com/-- is a control-oriented private equity firm seeking investment opportunities in the middle-market sector that are undergoing a fundamental change in capital structure, strategy, operations or growth that can benefit from its operational and strategic approach. The firm's professionals manage three funds with committed capital of approximately $1.6 billion. The firm is currently investing from Littlejohn Fund III L.P. which has $850 million in capital commitments. About Synchronous Aerospace Group Based in Santa Ana, California, Synchronous Aerospace Group -- http://www.compassaerospace.com/-- supplies aerospace original equipment manufacturers and Tier I suppliers with unique and complementary capabilities at facilities strategically located throughout the United States. Synchronous employs an integrated supply chain structure that provides customers with a wide range of fabricated products and the reliability and accountability of a single source. The company's products are installed on many of the aerospace industry's platforms. * * * As reported in the Troubled Company Reporter on July 27, 2007, Moody's Investors Service assigned a B2 first time rating to Synchronous Aerospace Group's proposed $95 million senior secured credit facility consisting of a $75 million term loan due 2014 and a $20 million revolver due 2013. Also, Moody's assigned to Synchronous a B2 Corporate Family Rating. The rating outlook is stable. TECH DATA: Earns $7.2 Million in Second Quarter Ended July 31 ------------------------------------------------------------- Tech Data Corp. recorded net sales for the second quarter ended July 31, 2007, of $5.6 billion, an increase of 13.6% from $4.9 billion in the prior-year period and a record for the second quarter. The company recorded net income of $7.2 million for the second quarter ended July 31, 2007. This compared to a net loss of $155.5 million for the prior-year period. Results for the second quarter of fiscal 2008 include a $4.3 million charge for the loss on disposal of subsidiaries and $16.6 million in restructuring charges. The loss on disposal of subsidiaries relates to the company's decision to exit its operations in Israel and the United Arab Emirates as part of its ongoing initiatives to optimize profitability and return on capital employed. Six-month Results Net sales for the six-month period ended July 31, 2007 were $11 billion, an increase of 11.4% from $9.89 billion in the six- month period ended July 31, 2006. On a regional basis, net sales in the Americas represented 49% of net sales, and increased 11.5% to $5.4 billion from $4.8 billion in the prior-year period. Europe represented 51% of net sales, and increased 11.3% to $5.6 billion from $5 billion for the six-month period ended July 31, 2006. The company recorded net income of $17.1 million for the six-month period ended July 31, 2007, compared to a net loss of $142.6 million in the prior-year period. As of July 31, 2007, the company had total assets of $4.9 million, total liabilities of $3.1 billion, and total stockholders' equity of $1.8 billion. Management's Comments "We are extremely pleased with our second quarter performance as our focus on execution delivered strong results in both of our geographic regions. Through responsible sales and product management, we achieved record second-quarter net sales - highlighted by very strong growth in the Americas region that outpaced the market," commented Robert M. Dutkowsky, Tech Data's chief executive officer. "We delivered a significant year-over- year turnaround in our operating results in the European region with a 91 basis point improvement on a non-GAAP basis. Tech Data is in a solid position to further leverage our strength in execution to improve our performance in the second half of this fiscal year." Business Outlook For the third quarter ending Oct. 31, 2007, the company anticipates net sales to be in the range of $5.75 billion to $5.9 billion. This assumes year-over-year low double-digit growth in the Americas and flat-to-low single-digit growth in Europe on a local currency basis. The company anticipates an effective tax rate for the third quarter of fiscal 2008 in the range of 34% to 36%. * * * As reported in the Troubled Company Reporter on Aug. 7, 2007, Fitch Ratings has affirmed Tech Data Corp., including Issuer Default Rating (IDR) at 'BB+'; Senior unsecured credit facility at 'BB+'; and 2.75% senior unsecured convertible debentures at 'BB+'. The Rating Outlook is Stable. TOLL BROTHERS: Earns $26.5 Million in Third Quarter 2007 -------------------------------------------------------- Toll Brothers Inc.'s fiscal year 2007 third-quarter net income was $26.5 million, compared to fiscal year 2006's third-quarter results of $174.6 million. In fiscal year 2007, third-quarter net income was reduced by after-tax write-downs of $88.5 million. In fiscal year 2006, third-quarter after-tax write-downs totaled $14.6 million. Fiscal year 2007's nine-month net income was $117.5 million, compared to fiscal year 2006's same period record results of $513.4 million. In fiscal year 2007, nine-month net income was reduced by after-tax write-downs and a first-quarter goodwill impairment totaling $224 million. In fiscal year 2006, nine-month after-tax write-downs totaled $22.7 million. Fiscal year 2007's third-quarter total revenues were $1.21 billion compared to fiscal year 2006's third-quarter total revenues of $1.53 billion. Fiscal year 2007's nine-month total revenues were $3.48 billion compared to the nine-month record of $4.31 billion in fiscal year 2006. Fiscal year 2007's third-quarter-end backlog was $3.67 billion compared to FY 2006's third-quarter-end backlog of $5.59 billion. As of July 31, 2007, the company's balance sheet showed total assets of $7.4 billion, total liabilities of $3.8 billion, and total stockholders' equity of $3.6 billion. Fiscal year 2007's third-quarter net signed contracts were $727 million, as compared to fiscal year 2006's third-quarter total of $1.05 billion. The company ended its third quarter with over $770 million in cash and more than $1.17 billion available under its bank credit facility, which matures in 2011. Its net debt-to-capital ratio at July 31, 2007, stood at 28.6%, compared to 36.8% one year ago. The company, which has continued to renegotiate, and in some cases, reduce its optioned land positions, ended fiscal year 2007's third quarter with about 63,000 lots owned and optioned compared to about 91,200 at its peak at the second-quarter-end of fiscal year 2006. The company ended the third quarter with 315 selling communities, down from 325 at second-quarter-end, and expects to be selling from about 305 communities by fiscal year end 2007. Management's Comments Robert I. Toll, chairman and chief executive officer, stated: "We continue to wrestle with the interrelated challenges of softer demand and excess housing supply in most markets. So far, nearly two years into the current housing slowdown, we have continued to remain profitable and increase stockholders' equity. We believe our build-to-order operating model has helped. In single-family communities, we typically do not start a home until we have a contract in place and a significant non-refundable down-payment. In our multi-family and high-rise communities, although we do pre- sell, it generally is not feasible, nor desirable, to wait for 100% pre-sales before breaking ground. Joel H. Rassman, chief financial officer, stated: "Consistent with our statement in our Aug. 8, 2007 conference call and press release, given the numerous uncertainties surrounding sales paces, the mortgage markets, market direction and the potential for and size of future impairments, in the current environment we are not comfortable providing fourth-quarter guidance at this time or confirming any previous guidance." Robert Toll continued: "We thank our dedicated and loyal associates as, together, we weather these difficult times and remain focused on providing our buyers with the highest standards of quality, value and service." About Toll Brothers Toll Brothers Inc. (NYSE: TOL) -– http://tollbrothers.com/-- builds luxury single-family detached and attached home communities, master planned luxury residential resort-style golf communities and urban low-, mid- and high-rise communities, principally on land it develops and improves. The Company operates its own architectural, engineering, mortgage, title, land development and land sale, golf course development and management and landscape subsidiaries. The Company also operates its own lumber distribution and house component assembly and manufacturing operations. The company began business in 1967 and became a public company in 1986. The company serves move-up, empty-nester, active-adult and second-home home buyers and operates in 22 states: Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, South Carolina, Texas, Virginia and West Virginia. * * * As reported in the Troubled Company Reporter on July 18, 2007, Moody's Investors Service affirmed the ratings of Toll Brothers Inc. and Toll Brothers Finance Corp., including the Baa3 rating on the existing senior note issues and Ba2 rating on the subordinated note issue. The ratings outlook was changed to negative from stable. TRAVELPORT LLC: Moody's Holds "B2" Corporate Family Rating ---------------------------------------------------------- Moody's Investors Service affirmed the ratings of Travelport LLC in response to the closing of its Worldspan LP acquisition. Ratings affirmed include the company's B2 corporate family rating, Ba3 ratings on its secured credit facilities, B3 ratings on its unsecured notes, and Caa1 ratings on both the $500 million subordinated notes and $1.1 billion holding company loan. The rating outlook is stable. The rating affirmation is consistent with Moody's press release dated March 23, 2007, in which it noted that it would likely affirm the Ba3 rating of the company's existing bank facilities once they are increased in conjunction with the financing of the Worldspan acquisition. The affirmation also considers the impact of the $600 million incremental debt raised by Travelport's Orbitz Worldwide Inc, subsidiary, which along with some of the proceeds from the recent IPO of a portion of Orbitz, was applied towards reducing debt at Travelport. Moody's notes that the maturity of the holding company PIK loan is earlier than several of Travelport's debt obligations, including its first lien bank term loan, and is prepayable after eight months from the close of the Worldspan acquisition. The stable outlook assumes Travelport's integration of the Worldspan business is successful, to be evidenced by stable revenues and profitability for the combined entity, and the continued application of free cash flow towards debt reduction. The B2 corporate family rating reflects Travelport's high leverage (Moody's adjusted debt to EBITDA, including $150 million of stand alone Travelport cost synergies, at over 6 times) and modest total interest coverage (less than 2 times). The rating also considers the potential for secular declines in the GDS business as travel bookings continue to shift away from travel agencies to supplier direct distribution, as well as significant pricing concessions in the latest round of contract negotiations with the six major U.S. air carriers. Integration challenges related to the recently acquired B2C international business as well as integration challenges with the Worldspan business are also captured in the B2 rating. The rating is supported by the continued importance of GDS in the global travel industry as online bookings continue to grow, Travelport's strong position in the U.S. GDS market, and its enhanced global footprint through the addition of Worldspan's business and its technology platform. The rating is also underpinned by the reasonable cash flow certainty the company's global GDS business provides by having contracts with all six major U.S. carriers, despite recent pricing concessions. These ratings of Travelport LLC have been affirmed; * Corporate Family Rating - B2; * Probability of default rating - B2; * $300 million revolving credit facility due 2012 - Ba3, LGD2, 23%; * $150 million synthetic letter of credit facility due 2013 - Ba3, LGD2, 23%; * $2.178 billion term loan facility due 2013 - Ba3, LGD2, 23%; * Euro 235 million senior unsecured notes due 2014 - B3, LGD4, 68%; * $150 million floating rate senior unsecured notes due 2014 - B3, LGD4, 68%; * $450 million fixed senior unsecured notes due 2014 - B3, LGD4, 68%; * $300 million subordinated notes due 2016 - Caa1, LGD5, 83%; * Euro 160 million subordinated notes due 2016 - Caa1, LGD5, 83%; * $1.1 billion holding company PIK loan due 2012 - Caa1 (LGD 6,92%); and * Speculative grade liquidity rating of SGL-2. These ratings of Worldspan L.P will be withdrawn: * Corporate Family Rating - B2; * Probability of default rating - B2; * $50 million 1st lien revolver credit facility - Ba3, LGD2, 25%; * $700 million 1st lien term loan facility - Ba3, LGD2, 25%; and * $250 million 2nd lien term loan facility - B3, LGD4, 67%. Headquartered in Parsippany, NJ, Travelport provides travel services, including those through its global distribution system. TYSON FOODS: Moody's Affirms "Ba1" Corporate Family Rating ---------------------------------------------------------- Moody's Investors Service upgraded the speculative grade liquidity rating of Tyson Foods Inc. to SGL-2 (good liquidity) from SGL-3 (adequate liquidity) based on the company's stronger cash flow generating ability given its cost cutting measures and improving protein markets. Tyson's other ratings, including its Ba1 corporate family rating and Ba1 probability of default rating, were affirmed. The rating outlook is negative. Rating upgraded: Tyson Foods, Inc. * Speculative grade liquidity rating to SGL-2 from SGL-3 Ratings affirmed Tyson Foods, Inc. * Corporate family rating at Ba1 * Probability of default rating at Ba1 * $1 billion senior unsecured bank credit agreement, guaranteed by Tyson Fresh Meats, Inc., at Ba1 (LGD3, 44%) * $1 billion 6.06% senior unsecured notes due 2016, guaranteed by Tyson Fresh Meats, Inc., at Ba1 (LGD3, 44%) * Senior unsecured unguaranteed debt at Ba2 (LGD5, 88%) * Senior unsecured unguaranteed shelf at (P)Ba2 (LGD5, 88%) Tyson Fresh Meats, Inc. * Senior unsecured debt, guaranteed by Tyson Foods, Inc., at Ba1 (LGD3,44%) Lakeside Farms Industries Ltd. * $195 million (originally $353 million) senior unsecured term loan, guaranteed by Tyson Foods, Inc. and Tyson Fresh Meats, Inc., at Ba1 (LGD3, 44%) Ratings affirmed, LGD rates adjusted: Tyson Foods, Inc. * Senior secured industrial revenue bonds, guaranteed by Tyson Foods, Inc., at Baa2 (LGD2); LGD rate adjusted to 15% from 14% Tyson Fresh Meats, Inc. * Senior secured industrial revenue bonds, guaranteed by Tyson Fresh Meats, Inc. at Baa2 (LGD2); LGD rated adjusted to 15% from 14% Tyson's earnings and cash flow can be volatile due to its exposure to commodity chicken, beef and pork markets, and due to seasonality. However, noted lead Analyst Elaine Francolino, "Moody's anticipates that the company's free cash flow will more than cover its working capital, capital expenditures, dividends and scheduled debt payments over the next 12 months, although cushion is likely to be modest at seasonal low points." Tyson maintains a $1 billion five year revolving credit facility expiring in September 2010 and two $375 million accounts receivable securitization facilities expiring in August 2008 and August 2010 respectively. The securitization facilities contain a rating trigger stipulating that if Tyson's ratings fall to Ba3 from Moody's or BB- from S&P, then, barring an amended facility, the banks sponsoring the program could refuse to purchase any additional receivables from Tyson and the program could unwind. Moody's expects Tyson to meet its financial covenants, with cushion. Since Tyson's credit facility is unsecured, it could sell a number of operations and facilities to raise cash and improve liquidity if necessary. Tyson's Ba1 corporate family rating incorporates several elements of the company's overall business profile that are very strong - such as its size, diversification, and market share - and consistent with a mid-investment grade rating. However, these elements are more than offset by the severe volatility of the company's earnings and cash flow and its weak, though improving, debt protection measures which score well below investment grade. Although Tyson is making progress towards the credit ratios Moody's has cited for stabilization of its negative rating outlook, it has not yet met these hurdles in full and global protein markets remain highly volatile, while the high cost of corn and other inputs will continue to pressure margins for the industry. Tyson Foods, Inc., headquartered in Springdale, Arkansas, is the world's largest processor of chicken, beef, and pork products with sales of approximately $26.5 billion for the twelve months ended June 30, 2007. UNIFI INC: Says Cost Reduction Plans to Affect 25 Employees ----------------------------------------------------------- Unifi Inc. said it will reorganize certain corporate staff and manufacturing support functions to further reduce costs and achieve its financial goals. Approximately 25 employees will be affected as a result of the current reorganization. Combined with previous cost reductions this quarter, the company expects to reduce its support costs by approximately $8 million in the current fiscal year, $9 million on an annualized basis. The company will accrue a severance expense of approximately $3.6 million for the quarter ended in September, which includes severance of $2.4 million in connection with the termination of its former chief executive officer. "It is imperative that we continue to match our support costs to the size of our current business," William Lowe, Unifi's chief operating officer and chief financial officer, said. "We absolutely must institute a cost-conscious culture. We must minimize our costs at the support level, while maintaining world- class service, product innovation, and quality to successfully compete in our market and reach our goals." "We have a balance sheet that supports our strategies and our recent announcement of outsourcing certain raw materials will provide the flexibility to our polyester production facilities, which has been lacking over the past twelve months," Mr. Lowe continued. "Our overall corporate strategies remain unchanged, and we look forward to driving success that will be reflected in our financial statements." Headquartered in Greensboro, North Carolina, Unifi Inc. (NYSE: UFI) -- http://www.unifi.com/-- is a diversified producer and processor of multi-filament polyester and nylon textured yarns and related raw materials. Key Unifi brands include, but are not limited to: aio(R) - all-in-one performance yarns, Sorbtek(R), A.M.Y.(R), Mynx(R) UV, Repreve(R), Reflexx(R), MicroVista(R), and Satura(R). Unifi's yarns and brands are readily found in home furnishings, apparel, legwear, and sewing thread, as well as industrial, automotive, military, and medical applications. * * * As of Aug. 8, 2007, the company holds Moody's B3 long-term corporate family rating and probability of default rating. The company's senior secured debt is also rated at Caa1. The outlook is stable. WACHOVIA BANK: S&P Holds Low-B Ratings on Six Certificate Classes ----------------------------------------------------------------- Standard & Poor's Ratings Services raised its rating on the class B commercial mortgage pass-through certificates from Wachovia Bank Commercial Mortgage Trust's series 2004-C12 to 'AA+' from 'AA'. Concurrently, S&P affirmed its ratings on 19 other classes from the same series. The raised and affirmed ratings reflect credit enhancement levels that provide adequate support through various stress scenarios. S&P's decision to affirm the rating on the class MAD certificate reflects the full defeasance of the loan previously secured by the 11 Madison Avenue property in Manhattan. The upgrade of the 'B' certificate reflects the defeasance of $125.8 million (12%) in collateral since issuance. As of the Aug. 17, 2007, remittance report, the collateral pool consisted of 96 loans with an aggregate trust balance of $1.046 billion, compared with $1.063 billion with the same number of loans at issuance. The master servicer, Wachovia Bank N.A., reported financial information for 99% of the nondefeased loans. Ninety-six percent of the servicer-reported information was full- year 2006 data. Using this information, Standard & Poor's calculated the weighted average debt service coverage to be 1.71x, up from 1.58x at issuance. All of the loans in the pool are current, and there are no loans with the special servicer. To date, the trust has not experienced any losses. The top 10 loans secured by real estate have an aggregate outstanding balance of $446.6 million (43%) and a weighted average DSC of 1.71x, down slightly from 1.76x at issuance. Two of the top 10 exposures appear on Wachovia's watchlist and are discussed below. Standard & Poor's reviewed property inspections provided by the master servicer for all of the assets underlying the top 10 exposures. All of the properties were characterized as "good." Credit characteristics for the Ernst & Young Plaza, Eastdale Mall loan, and Highland Pinetree Apartments loans are consistent with investment-grade obligations. Details of these loans are as: -- The largest exposure in the pool, the Ernst & Young Plaza loan, has a balance of $123.1 million and is secured by the fee interest in a 909,899-sq.-ft. office property and a 311,874-sq.-ft. retail property in Los Angeles. For the year ended Dec. 31, 2006, the DSC was 1.78x and occupancy was 85%. Standard & Poor's adjusted net cash flow for this loan is down 14% since issuance. -- The sixth-largest exposure in the pool, the Eastdale Mall loan, has a balance of $31.2 million and is secured by the fee interest in 485,772 sq. ft. of a 663,199-sq.-ft. regional mall in Montgomery, Alabama. For the year ended Dec. 31, 2006, the DSC was 1.65x and occupancy was 92%. Standard & Poor's adjusted NCF for this loan is down 6% since issuance. -- The 11th-largest exposure in the pool, the Highland Pinetree Apartments loan, has a balance of $18.2 million and is secured by the fee interest in a 320-unit garden- style multifamily property in Fullerton, California. For the year ended Dec. 31, 2006, the DSC was 3.18x and occupancy was 93%. Standard & Poor's adjusted NCF for this loan is up substantially since issuance. Wachovia reported a watchlist of nine loans ($101.9 million, 10%). The 24 West 57th Street loan is the fifth-largest loan in the pool and the largest loan on the watchlist. The loan has an outstanding balance of $34.5 million (3%) and is secured by a 100,334-sq.-ft. office property in Manhattan. The property was 89% occupied for the year ended Dec. 31, 2006, and the DSC for this loan was 0.94x. The loan appears on the watchlist because the DSC has declined since issuance, which is primarily attributable to the fact that the loan's interest-only period has ended. The One Riverview Square loan is the seventh-largest loan in the pool and the second-largest loan on the watchlist. The loan has an outstanding balance of $29.6 million (3%) and is secured by a 147,917-sq.-ft. office property in Miami, Florida. The property was 86% occupied as of July 2007; however, a new tenant is schedule to take the remaining vacant space in September 2007. For the year ended Dec. 31, 2006, the DSC for this loan was 1.03x. The loan is on the watchlist because of a decrease in the DSC since issuance. Standard & Poor's stressed the loans on the watchlist and other loans with credit issues as part of its analysis. The resultant credit enhancement levels support the raised and affirmed ratings. Rating Raised Wachovia Bank Commercial Mortgage Trust Commercial mortgage pass-through certificates series 2004-C12 Rating ------ Class To From Credit enhancement ----- -- ---- ---------------- B AA+ AA 11.33% Ratings Affirmed Wachovia Bank Commercial Mortgage Trust Commercial mortgage pass-through certificates series 2004-C12 Class Rating Credit enhancement ----- ------ ---------------- A-1 AAA 13.77% A-2 AAA 13.77% A-3 AAA 13.77% A-4 AAA 13.77% A-1A AAA 13.77% C AA- 10.43% D A 8.24% E A- 7.21% F BBB+ 6.05% G BBB 4.89% H BBB- 3.60% J BB+ 3.22% K BB 2.96% L BB- 2.45% M B+ 2.06% N B 1.80% O B- 1.555 IO AAA N/A MAD AAA N/A N/A — Not applicable. WCI COMMUNITIES: Incurs $33.2 Million Net Loss in Second Qtr. 2007 ------------------------------------------------------------------ WCI Communities Inc. reported a net loss of $33.2 million for the three months ended June 30, 2007, compared with a gain of $22.7 million in the second quarter of 2006. During the quarter, the company completed the sale of a non-golf recreation facility for $47.5 million, which generated an after- tax gain of $11.5 million. Revenues for the second quarter of 2007 were $241.8 million, compared with $527.7 million for the second quarter of 2006, a 54.2% decrease. Overall company gross margin for the second quarter of 2007 was negative versus 19% for the second quarter of 2006. For the six month period ended June 30, 2007, the net loss totaled $49 million, compared with a gain of $62.9 million during the first half of 2006. Revenues decreased 47.2% to $580.5 million from $1.1 billion in the year earlier period. Excluding impairments of $37.1 million, gross margin as a percent of revenue totaled 12.1% versus 21.1% in the year earlier period. For the three months ended June 30, 2007, the aggregate value of Traditional and Tower Homebuilding net orders fell 96.2% over the same period a year ago to $9.1 million, while the number of unit orders declined 82.6% to 50. Absent Tower defaults and Traditional Homebuilding cancellations, gross new orders for the period versus a year ago declined 46.5% to 216 with a value of $155.7 million, down 50.1%. Financial Position As of June 30, 2007, the company posted total assets of $3.6 billion, total liabilities of $2.5 billion, and total stockholders' equity of $946.2 million. For the six months ended June 30, 2007, cash flow from operating activities and investing activities totaled $119.8 million -- $86.3 million from operating activities and $33.5 million from investing activities, compared with cash used of $382.0 million in the same period a year ago. As previously announced, on Aug. 17, 2007, WCI amended its credit facility, the term loan agreement and the revolving credit $390 million construction loan. The amendments are intended to provide for, among other things, greater operational flexibility in the current market environment. As of June 30, 2007, the balance on the revolving credit facility was $360.6 million, the balance on the term loan agreement was $300 million, and the balance on the Tower Facility was $353.7 million. Total liquidity, measured as the sum of cash plus available capacity under the revolving facility, totaled about $315 million at Aug. 17, 2007. In addition, letters of credit of $43.6 million were outstanding as of Aug. 17, 2007. "WCI continued to focus on reducing costs and generating cash flow in the second quarter," said Jerry Starkey, resident and chief executive officer of WCI Communities. "Year-to-date, WCI has generated $119.8 million in cash flow from operating and investing activities and expects to end 2007 having generated a combined $530 million to $730 million ($520 million to $720 million from operating activities and $10 million from investing activities), in large part as a result of closing ten towers, including our two largest towers ever constructed." Mr. Starkey continued, "Land sales and recreational amenity conversions are an important part of WCI's business model and we are actively marketing numerous land parcels, including commercial, mixed/use and residential land, as well as recreational assets. We estimate that the aggregate value of these assets range from about $200 million to $300 million. Many of these assets were acquired or developed more than five years ago and are expected to generate significant profits in addition to cash flow. The upper range of our projected cash flow for this year includes approximately $60 million or so from this pool of assets." The company's expected cash flow from operations assume that about 500 to 600 traditional homes close in the second half of the year. The backlog of almost 700 traditional homes as of June 30, 2007 includes about 500 homes scheduled to close by year end. Recent Developments As previously announced, WCI entered into a settlement agreement with the Icahn Group. In connection with the settlement agreement, the WCI Board of Directors approved a slate of nominees which will be submitted for shareholder approval on Aug. 30, 2007. As part of this agreement, the Icahn Group agreed to withdraw its slate of nominees for the Board, effectively ending its proxy contest. Pursuant to the agreement, the company agreed to raise the trigger under its limited duration Shareholder Rights Plan from 15% to 25%. About WCI Communities Headquartered in Florida, WCI Communities Inc. (NYSE: WCI) -- http://www.wcicommunities.com/-- is a home builder catering to primary, retirement, and second-home buyers in Florida, New York, New Jersey, Connecticut, Maryland and Virginia. The company offers both traditional and tower home choices and features a wide array of recreational amenities in its communities. In addition to homebuilding, WCI generates revenues from its Prudential Florida WCI Realty Division and its recreational amenities, as well as through land sales and joint ventures. The company currently owns and controls developable land on which the company plans to build about 20,000 traditional and tower homes. * * * As of Aug. 8, 2007, the company holds Moody's B3 long-term corporate family rating and probability of default rating. Moody's placed the company's senior subordinate rating at Caa2. The outlook is negative. Standard & Poor's also rated the company's long-term foreign and local issuer credits at CCC+. WELLCARE HEALTH: Moody's Lifts Senior Debt Rating to "Ba1" ---------------------------------------------------------- Moody's Investors Service upgraded the senior secured debt rating of WellCare Health Plans Inc. to Ba1 from Ba3 and the insurance financial strength rating of WellCare of Florida, Inc to Baa2 from Ba1. The outlook on the ratings is stable. The rating action concludes the review for possible upgrade that was initiated on June 25, 2007. The rating agency said that the rating action is based on the company's solid earnings results and membership growth and its improving balance sheet and capital position. Moody's also noted the continued, well-managed expansion of WellCare's Medicaid and Medicare businesses, as well as its profitable and strongly- subscribed Medicare Part D product. Moody's added that the company also increased its consolidated risk-based capital (RBC) ratio to over 150% of company action level (CAL) and reduced its debt to EBITDA ratio on a trailing twelve month basis to under 1.0x as of June 30, 2007. Moody's said that WellCare's strengths include its continued leading position in the Florida Medicaid market, along with the financial protection provided by the state for long duration hospital stays and WellCare's contracts with providers, which are tied to the level of reimbursement from the state. Additionally, Moody's noted, the parent company's cash flow needs are well- funded through the activities of a wholly-owned unregulated subsidiary that serves as a third party administrator rather than being reliant on dividends from regulated entities. Moody's added that WellCare's strategy is to expand its Medicaid business in its existing markets while developing Medicare plans and entering new markets through internal growth. The company currently has Medicaid managed care operations in Florida, New York, Connecticut, Ohio, Missouri, Georgia and Illinois. WellCare's Medicare plans include stand-alone prescription drug plans and Medicare Advantage plans, which include both Medicare coordinated care plans and Medicare private fee-for-service plans. As of June 30, 2007, the company offered its MCC plans in Florida, New York, Connecticut, Illinois, Louisiana and Georgia, PFFS plans in 39 states and the District of Columbia, and its PDP plans in all 50 states and the District of Columbia. WellCare's PDP plan with membership of nearly 1 million members is one of the largest plans in the nation. However, despite the number of states where WellCare offers its products, Moody's notes that approximately 75% of the company's medical membership is concentrated in Georgia and Florida. Also offsetting the company's strengths is WellCare's reliance on its Medicaid contracts with the states and Medicare contracts with the Centers for Medicare & Medicaid Services. Moody's points out that these contracts require periodic renewal and that the loss of one of these contracts could place significant strain on WellCare's revenue and income levels. In addition, Moody's believes that there is a risk that political or budgetary changes at the federal or state level could impact the reimbursement levels to companies --such as WellCare-- that provide healthcare services for government programs. Moody's noted that due to the company's concentration in the government segment the opportunity for further upgrades may be somewhat limited. However, Moody's stated that WellCare's ratings could move up if there is significant product diversification outside the government segment along with further geographical expansion, the consolidated NAIC RBC ratio is increased to at least 200% CAL, and if total medical membership increases to 2 million members with consistent annual organic growth of at least 3%. The rating agency added that there would be downward pressure on the ratings if there were a loss or impairment of one or more of WellCare's major Medicaid or Medicare contracts, a reduction in NAIC RBC to below 150% CAL, if annual net margins fell below 2%, or if WellCare made a highly leveraged acquisition. These ratings were upgraded with a stable outlook: * WellCare Health Plans, Inc. -- senior secured debt rating to Ba1 from Ba3; * WellCare of Florida, Inc. -- insurance financial strength rating to Baa2 from Ba1. WellCare Health Plans, Inc. is headquartered in Tampa, Florida. For the first six months of 2007, the company reported approximately $2.6 billion in total revenue. As of June 30, 2007, shareholder's equity was $678 million and total medical membership (excluding Medicare Part D) was 1.3 million members. Moody's insurance financial strength ratings are opinions of the ability of insurance companies to repay punctually senior policyholder claims and obligations. WORLDSPAN LP: Debt Refinancing Cues S&P to Withdraw Ratings ----------------------------------------------------------- Standard & Poor's Ratings Services withdrew all ratings on Worldspan L.P., including the 'B' corporate credit rating. The rating action follows the company's acquisition by Travelport LLC (B/Stable/--) on Aug. 21, 2007. Worldspan is the leading processor of GDS transactions for on-line travel agencies. "Ratings were withdrawn due to refinancing of Worldspan's outstanding rated debt through a $1 billion addition to Travelport's credit facilities in May 2007," said Standard & Poor's credit analyst Betsy Snyder. * ALI-ABA Joins Internet Experts Carole Levitt, et al. ------------------------------------------------------ ALI-ABA has teamed with Internet research experts Carole Levitt, JD, MLS, and Mark Rosch to create a new periodical devoted to help lawyers locate information on the Internet. Published bi-monthly, Internet Fact Finding For Lawyers highlights free and low-cost resources available on the Internet where legal professionals can find information integral to their cases. It includes sites that are useful for investigations, depositions, and trial preparation, as well as company and medical research, gathering competitive intelligence, finding expert witnesses, and fact checking of all kinds. As an added bonus, the four-color newsletter also will include legal technology Web sites, legal research Web sites, search engines, public records, and various tech tips. Each site is presented in a template that allows readers to quickly determine what useful information a site contains, the best ways to extract that information, any idiosyncrasies a site may have, and whether the site is free, requires registration, or is fee-based. The format is based on the authors' book, The Lawyer's Guide to Fact Finding on the Internet (2006 A.B.A.). Levitt and Rosch will serve as the publication's editors and primary contributors. "Attorneys are fact finders, not just legal researchers. They often need to find that one fact to make or break a case or help complete a transactional matter," said Levitt. "Case in point, in a number of recent decisions judges are telling attorneys that they have a duty to Google as part of their due diligence procedure." "Our goal for the newsletter is to help readers learn how to get the accurate information they need on the Internet-fast, and to save money by avoiding unnecessary pay sites," added Rosch. "We specifically choose sites for their usefulness to legal professionals." "Carole and Mark make it easy for legal professionals to stay on top of Web sites that are important to their practices regardless of their technical prowess," said Mark T. Carroll, Director of ALI-ABA's Office of Electronic and Print Publications. "It's the clear, simple language they use in their books and live CLE seminars that led us to develop this new newsletter with them. It's a natural complement to our existing periodicals." The first issue of Internet Fact Finding For Lawyers is available now, and can be viewed online for free. One-year subscriptions are $149. Initial Charter Subscriptions are available in the introductory year for only $99. Individual issues may be purchased for $25. About Levitt and Mark Carole Levitt and Mark Rosch are authors and speakers on the subject of using the internet effectively for research and marketing. The firm is the principal of Internet For Lawyers, a CLE seminar company. About ALI-ABA Located in Philadelphia, PA, ALI-ABA provides post-admission education for the legal profession. The company is dedicated to keep the legal community of current developments and provide practitioners with the resources necessary to enhance their practice. * Atlas Partners Unit Funds a $4.5 Mil. Loan for General DataComm ----------------------------------------------------------------- Atlas Partners LLC reported that its affiliate, Atlas Partners Mortgage Investors LLC, has funded a $4.5 million first mortgage loan for a wholly owned subsidiary of General DataComm Industries Inc. The loan was secured by a first mortgage lien on GDC's headquarters facility, a 340,000 square foot, four-story office and light industrial facility on 11+ acres of land located at 6 Rubber Avenue in downtown Naugatuck, Connecticut. The interest-only loan for a term of two years, with a borrower- option for a third year, was provided by Atlas Partners Mortgage Investors with no financial covenants and no third-party guarantees and is secured by real estate only. The loan proceeds were primarily used by GDC to repay and replace an existing senior secured loan, thereby allowing GDC to take advantage of a $1.5 million loan prepayment incentive. In addition, the new mortgage loan's lower debt service payments will increase available cash flow for GDC's operations. About General DataComm General DataComm Industries Inc. (symbol GNRD.PK) provides networking and telecommunications products and services. About Atlas Partners Atlas Partners -- http://www.atlaspartners.com/-- is a real estate consulting company specializing in process management. The company was created specifically to address the commercial real estate issues faced by private equity sponsors, asset-based lenders, turnaround management consultants, bankruptcy and workout attorneys and corporations with real estate needs. * Groupe Thibault to Merge with Ginsberg Gingras ------------------------------------------------ Two of Quebec's most important trustees in bankruptcy have decided to join forces to create the largest professional insolvency and bankruptcy group in Quebec and one of the largest in Canada. Groupe Thibault Van Houtte et Associes, established in 1986 with major offices in Montreal and Quebec City will join Ginsberg, Gingras & Associates, who recently celebrated 27 years in business and whose head office is located in Ottawa and Gatineau. Together, they operate a network of 25 regional offices in most regions of Quebec and in Eastern Ontario and now employ a team of 110 permanent staffers, of whom 19 are professional trustees in bankruptcy and insolvency, making the new venture Quebec's most important professional resource in the field of insolvency. The new group will now be handling a total of 3,700 cases annually, equivalent to 12 percent of the total business volume in Quebec and four percent of the total number of cases handled in Canada. "This move will allow us to offer our clients better services across Quebec and Ontario and to make available a greater pool of professional expertise in business reorganization and insolvency counseling both to private individuals and families and to businesses throughout Quebec and Ontario," said Claude Gingras, founder and president of Ginsberg, Gingras & Associates. As for Pierre Delisle, president and founding partner of Groupe Thibault Van Houtte et Associes ltee, he is delighted with the transaction which brings together the two partners. "The merger which brings us together will prove to be a winning combination for everyone, but above all, it will benefit our respective clients who will now have access to a completely diversified talent source of insolvency professionals across Quebec and Ontario," Mr. Delisle said. Neither partner is entertaining the prospect of closing offices and neither is considering layoffs as part of their future plans, although they are counting on taking advantage of other economies of scale. They remain open to the possibility of looking into other opportunities for expansion through acquisitions if such opportunities present themselves and if the state of the economy is favorable. The new venture will pursue its professional activity under the existing names of Ginsberg, Gingras and Thibault Van Houtte for the time being. Both these companies are well known in their respective markets not only as professionals in bankruptcy, insolvency and business reorganization, but also for their exemplary contributions to various humanitarian causes and their continued community involvement. Ginsberg, Gingras and Thibault Van Houtte, whose head office will be located in Gatineau, now serves the Greater Quebec City area in Levis, Beauport, Charlesbourg, Baie-St-Paul, St-Raymond (Portneuf), Thetford Mines, St-Georges (Beauce); the Greater Montreal area, in Longueuil, St-Lambert, Blainville, St-Jerôme and Ste-Agathe; the Lower St.Lawrence region, in Rimouski and Riviere- du-Loup; the central region of Quebec, in Trois-Rivieres and Drummondville; the Outaouais region (Western Quebec) and Eastern Ontario, in Ottawa-Gatineau, Buckingham, Orleans and Alfred; and the Abitibi region, in Rouyn-Noranda. * IAIR to Hold Investor-Insurer Summit on Oct. 24 ------------------------------------------------- The International Association of Insurance Receivers will bring together leaders from the capital markets, major insurers and insurance regulators to discuss Emerging Investment Opportunities: Bridging the Gap Between Capital Markets and Troubled Insurers. The meeting will take place on Oct. 24, 2007 at the Ritz Carlton Battery Park in New York. Panel discussions led by industry leaders will feature interplay of regulatory, strategic and financial investment perspectives: The program will open with a conversation between the financial and insurance worlds, J. Christopher Flowers, Eric Dinallo, and Forrest Krutter. Straight Talk from the Street: Investing in the Troubled Insurer Sector will feature Chris McGhee of Guy Carpenter, Inc., David Platter of Credit Suisse and Martin Alderson Smith of the Blackstone Group. Four State Insurance Commissioners, from Illinois, Delaware, Virginia and the District of Columbia, will have a Regulators Roundtable to discuss Bridges and Barriers to Regulatory, Strategic and Investor Synergies. The Track Record: Past Successful and Unsuccessful Approaches will be discussed by Tim Graham of LaSalle Re, Paul Dassenko of aZure Advisors, Inc., and Richard Whatton of Independent Services Group. These interdisciplinary panel discussions will provide approaches to investment, runoff and rehabilitation of troubled insurers through such techniques as acquisitions, sales of assets or claims, bridge financing, securitization. About IAIR The International Association of Insurance Receivers -- http://www.iair.org/-- provides an association to individuals involved with insurance receiverships in order to receive education, promote information exchange, and enhance the standards followed by those who work in this position. * Moody's Cuts Ratings on 120 Securities Originated in 2005 ----------------------------------------------------------- Moody's Investors Service downgraded on 120 securities originated in the second half of 2005 and backed by subprime, first-lien mortgage loans. The actions follow a review of the securities rated in the second half of 2005 and affect securities with an original face value of over $1.5 billion, representing 0.7% of the dollar volume and 4.1% of the securities rated by Moody's in the second-half of 2005 that were backed by subprime, first-lien loans. The actions reflect the higher than anticipated delinquency rates of first-lien subprime mortgage loans securitized in the second half of 2005. These loans were originated in an environment of aggressive underwriting, although not to the same degree as the subprime loans originated in 2006. Aggressive underwriting combined with the prolonged slowdown in the housing market has caused significant loan performance deterioration and is the primary factor in these rating actions. Moody's has noted a persistent negative trend in severe delinquencies for first-lien subprime mortgage loans securitized in late 2005 and 2006. The vast majority of these downgrades impacted securities originally rated Baa or lower. In total 54 securities originally rated Baa and 60 securities previously rated Ba were downgraded. Additionally, 6 tranches originally rated A were downgraded. No action was taken on securities rated Aaa or Aa. In addition to the high rates of early delinquency predicating the actions, Moody's notes that subprime mortgages originated in late 2005 and 2006 that are subject to interest rate reset present an additional cause for credit concern. Subprime borrowers from previous vintages of such collateral avoided "payment shock" and potential default by refinancing. However, with the recent pressure in home price appreciation and tightening of mortgage lending standards, such refinancing opportunities may be more limited. Moody's has noted that transactions issued in the second half of 2005 have begun to exhibit slower prepayment speeds as they near the two-year interest reset than did prior vintages. Moody's is actively surveying loan servicers to evaluate the impact of potential increases in loan modification due to these upcoming resets. The complete rating actions are: Issuer: Accredited Mortgage Loan Trust 2005-4 Cl. M-9; Downgraded to Ba2, previously Baa3 Issuer: ACE Securities Corp. Home Equity Loan Trust, Series 2005- HE5 Cl. M-9; Downgraded to Ba2, previously Baa3 Cl. M-10; Downgraded to B1, previously Ba1 Cl. B-1; Downgraded to B3, previously Ba2 Issuer: ACE Securities Corp. Home Equity Loan Trust, Series 2005- HE6 Cl. M-9; Downgraded to Ba2, previously Baa3 Cl. M-10; Downgraded to B1, previously Ba1 Cl. M-11; Downgraded to B3, previously Ba2 Issuer: ACE Securities Corp. Home Equity Loan Trust, Series 2005- HE7 Cl. M-9; Downgraded to Ba1, previously Baa3 Cl. M-10; Downgraded to Ba3, previously Ba1 Cl. M-11; Downgraded to B2, previously Ba2 Issuer: Aegis Asset Backed Securities Trust 2005-4 Cl. B4; Downgraded to Ba3, previously Ba1 Cl. B5; Downgraded to B1, previously Ba2 Issuer: Aegis Asset Backed Securities Trust 2005-5 Cl. B2; Downgraded to Ba1, previously Baa2 Cl. B3; Downgraded to Ba3, previously Baa3 Cl. B4; Downgraded to B2, previously Ba1 Cl. B5; Downgraded to Caa1, previously Ba2 Issuer: Argent Securities Inc., Series 2005-W5 Cl. M-9; Downgraded to Ba1, previously Baa3 Issuer: Asset Backed Securities Corporation Home Equity Loan Trust 2005-HE6 Cl. M11; Downgraded to B2, previously Ba3 Issuer: Asset Backed Securities Corporation Home Equity Loan Trust NC 2005-HE8 M10; Downgraded to B2, previously Ba1 Issuer: Bear Stearns Asset Backed Securities I Trust 2005-FR1 Cl. M-8; Downgraded to B2, previously Ba2 Issuer: C-BASS Mortgage Loan Asset-Backed Certificates, Series 2005-CB6 Cl. B-5; Downgraded to B2, previously Ba2 Issuer: Citigroup Mortgage Loan Trust, Series 2005-HE3 Cl. M-11; Downgraded to B1, previously Ba2 Issuer: Citigroup Mortgage Loan Trust, Series 2005-HE4 Cl. M-11; Downgraded to B1, previously Ba2 Issuer: CSFB Home Equity Asset Trust 2005-6 Cl. B-3; Downgraded to B2, previously Ba2 Issuer: CSFB Home Equity Asset Trust 2005-7 Cl. B-4; Downgraded to B3, previously Ba2 Issuer: CSFB Home Equity Asset Trust 2005-9 Cl. B-3; Downgraded to B2, previously Ba2 Issuer: CSFB Home Equity Pass-Through Certificates, Series 2005-4 Cl. B-3; Downgraded to B1, previously Ba1 Issuer: CSFB Home Equity Pass-Through Certificates, Series 2005-5 Cl. B-2; Downgraded to Ba2, previously Baa3 Cl. B-3; Downgraded to B2, previously Ba1 Issuer: CWABS Asset-Backed Certificates Trust 2005-13 Cl. BV; Downgraded to Ba2, previously Baa3 Issuer: CWABS Asset-Backed Certificates Trust 2005-16 Cl. BV; Downgraded to Ba1, previously Baa3 Issuer: CWABS Asset-Backed Certificates Trust 2005-17 Cl. BV; Downgraded to Ba1, previously Baa3 Issuer: CWABS Asset-Backed Certificates Trust 2005-AB4 Cl. M-7; Downgraded to Baa3, previously Baa1 Cl. M-8; Downgraded to Ba2, previously Baa2 Cl. B; Downgraded to B2, previously Baa3 Issuer: CWABS Asset-Backed Certificates Trust 2005-AB5 Cl. M-7; Downgraded to Baa3, previously Baa1 Cl. M-8; Downgraded to Ba2, previously Baa2 Cl. B; Downgraded to B3, previously Baa3 Issuer: Fremont Home Loan Trust 2005-2 Cl. B-2; Downgraded to B2, previously Ba2 Issuer: Fremont Home Loan Trust 2005-D Cl. M9; Downgraded to Ba2, previously Baa3 Cl. B1; Downgraded to Ba3, previously Ba1 Cl. B2; Downgraded to B2, previously Ba2 Issuer: Fremont Home Loan Trust 2005-E Cl. M9; Downgraded to Ba1, previously Baa3 Cl. B1; Downgraded to B1, previously Ba1 Cl. B2-A; Downgraded to Caa1, previously Ba2 Cl. B2-B; Downgraded to Caa1, previously Ba2 Cl. B2-C; Downgraded to Caa1, previously Ba2 Cl. B2-D; Downgraded to Caa1, previously Ba2 Issuer: GE-WMC Asset-Backed Pass-Through Certificates, Series 2005-1 Cl. B-3; Downgraded to Ba2, previously Baa3 Cl. B-4; Downgraded to B2, previously Ba1 Cl. B-5; Downgraded to B3, previously Ba2 Issuer: GE-WMC Asset-Backed Pass-Through Certificates, Series 2005-2 Cl. B-3; Downgraded to Ba2, previously Baa3 Cl. B-4; Downgraded to B1, previously Ba1 Cl. B-5; Downgraded to Caa1, previously Ba2 Issuer: GSAMP Trust 2005-AHL2 Cl. B-2; Downgraded to Ba2, previously Baa3 Cl. B-3; Downgraded to B1, previously Ba1 Cl. B-4; Downgraded to B3, previously Ba2 Issuer: GSAMP Trust 2005-HE4 Cl. B-4; Downgraded to Ba3, previously Ba1 Issuer: HSI Asset Securitization Corporation Trust 2005-OPT1 Cl. M-6; Downgraded to Baa3, previously A3 Issuer: IndyMac Home Equity Mortgage Loan Asset-Backed Trust, INABS 2005-C Cl. M-9; Downgraded to Ba2, previously Baa3 Cl. M-10; Downgraded to Ba3, previously Ba1 Cl. M-11; Downgraded to B3, previously Ba2 Issuer: J.P. Morgan Mortgage Acquisition Corp. 2005-FRE1 Cl. M-9; Downgraded to Ba1, previously Baa3 Cl. M-10; Downgraded to Ba3, previously Ba1 Cl. M-11; Downgraded to Caa1, previously Ba2 Issuer: Long Beach Mortgage Loan Trust 2005-3 Cl. M-7; Downgraded to Ba1, previously Baa1 Cl. M-8; Downgraded to Ba2, previously Baa2 Cl. M-9; Downgraded to Ba3, previously Baa3 Cl. M-10; Downgraded to B3, previously Ba1 Issuer: Long Beach Mortgage Loan Trust 2005-WL1 Cl. I/II-B1; Downgraded to B2, previously Ba2 Issuer: Long Beach Mortgage Loan Trust 2005-WL2 Cl. B-1; Downgraded to B2, previously Ba2 Issuer: Long Beach Mortgage Loan Trust 2005-WL3 Cl. B-1; Downgraded to Ba3, previously Ba1 Cl. B-2; Downgraded to B2, previously Ba2 Issuer: MASTR Asset Backed Securities Trust 2005-HE2 Cl. M-9; Downgraded to B1, previously Baa3 Issuer: MASTR Asset Backed Securities Trust 2005-NC2 Cl. M-5; Downgraded to Baa2, previously A2 Cl. M-6; Downgraded to Baa3, previously A3 Cl. M-7; Downgraded to Ba3, previously Baa1 Cl. M-8; Downgraded to B3, previously Baa2 Cl. M-9; Downgraded to Caa1, previously Baa3 Issuer: Meritage Mortgage Loan Trust 2005-3 Cl. M-9; Downgraded to Ba2, previously Baa3 Issuer: New Century Home Equity Loan Trust, Series 2005-B Cl. M-8; Downgraded to Ba2, previously Baa2 Cl. M-9; Downgraded to B1, previously Baa3 Issuer: Nomura Home Equity Loan Trust 2005-FM1 Cl. B-1; Downgraded to B2, previously Ba1 Cl. B-2; Downgraded to Caa1, previously Ba2 Issuer: Option One Mortgage Loan Trust 2005-3 Cl. M-11; Downgraded to B3, previously Ba2 Issuer: Park Place Securities, Inc., Asset-Backed Pass-Through Certificates, Series 2005-WCW3 Cl. M-11; Downgraded to B1, previously Ba2 Issuer: Park Place Securities, Inc., Asset-Backed Pass-Through Certificates, Series 2005-WHQ4 Cl. M-9; Downgraded to B1, previously Baa3 Issuer: RASC Series 2005-AHL1 Trust Cl. M-9; Downgraded to B2, previously Baa3 Issuer: RASC Series 2005-AHL3 Trust Cl. M-6; Downgraded to Baa2, previously A3 Cl. M-7; Downgraded to Ba1, previously Baa1 Cl. M-8; Downgraded to B1, previously Baa2 Cl. M-9; Downgraded to Caa1, previously Baa3 Issuer: RASC Series 2005-KS8 Trust Cl. M-10; Downgraded to Ba3, previously Ba1 Issuer: RASC Series 2005-KS9 Trust Cl. B-2; Downgraded to B1, previously Ba2 Issuer: Securitized Asset Backed Receivables LLC Trust 2005-FR3 Cl. B-2; Downgraded to Ba2, previously Baa2 Cl. B-3; Downgraded to B2, previously Baa3 Cl. B-4; Downgraded to B3, previously Ba1 Issuer: Specialty Underwriting and Residential Finance Series 2005-AB2 Cl. B-2; Downgraded to Ba2, previously Baa3 Cl. B-3; Downgraded to B3, previously Ba2 Issuer: Structured Asset Investment Loan Trust 2005-10 Cl. M7; Downgraded to Baa3, previously Baa1 Cl. M8; Downgraded to Ba1, previously Baa2 Cl. M9; Downgraded to Ba3, previously Baa3 Cl. B1; Downgraded to Caa1, previously Ba1 Issuer: Structured Asset Investment Loan Trust 2005-7 Cl. M9; Downgraded to Ba2, previously Baa3 Cl. B1; Downgraded to B3, previously Ba1 Issuer: Structured Asset Investment Loan Trust 2005-8 Cl. M5; Downgraded to Baa1, previously A2 Cl. M6; Downgraded to Baa3, previously A3 Cl. M7; Downgraded to Ba3, previously Baa3 Cl. M8; Downgraded to B3, previously Ba1 Cl. M9; Downgraded to Caa1, previously B1 Cl. B; Downgraded to Caa3, previously Caa1 Issuer: Structured Asset Investment Loan Trust 2005-9 Cl. M7; Downgraded to Baa3, previously Baa1 Cl. M8; Downgraded to Ba2, previously Baa2 Cl. M9; Downgraded to B3, previously Baa3 Issuer: Structured Asset Investment Loan Trust 2005-HE1 Cl. B1; Downgraded to B1, previously Ba1 Issuer: Structured Asset Investment Loan Trust 2005-HE3 Cl. M9; Downgraded to Ba2, previously Baa3 Cl. M10; Downgraded to B1, previously Ba1 Issuer: Structured Asset Securities Corporation Series 2005-AR1 Cl. B1; Downgraded to B2, previously Ba3 Cl. B2; Downgraded to Caa2, previously B3 Issuer: Wachovia Mortgage Loan Trust 2005-WMC1 Cl. M-11; Downgraded to B1, previously Ba2 * Moody's Takes Rating Actions on Various Obligations ----------------------------------------------------- Moody's Investors Service has taken these rating actions: DOWNGRADES Mainsail II Ltd. STRUCT. Commercial Paper ... to NP from P-1 Putnam Structured Product CDO 2001-1 LTD. US$ 54.00M affected STRUCT. Senior Subordinate ... to A2 from Aa2 STRUCT. Subordinate ... to Ba3 from Baa2 UPGRADES CSFB Commercial Mortgage Trust 2002-CKP1 US$ 26,063,000 -Class D ... to Aaa from Aa1 US$ 14,893,000 -Class E ... to Aa2 from Aa3 US$ 13,652,000 -Class F ... to A1 from A2 US$ 14,893,000 -Class G ... to A2 from A3 Fiat Finance & Trade Ltd. US$ 12.92B affected BACKED Senior Unsecured ... to Ba1 from Ba2 BACKED Senior Unsecured MTN ... to Ba1 from Ba2 Fiat Finance Canada Ltd. US$ 12.60B affected BACKED Senior Unsecured MTN ... to Ba1 from Ba2 Fiat Finance North America Inc. US$ 12.24B affected BACKED Senior Unsecured ... to Ba1 from Ba2 BACKED Senior Unsecured MTN ... to Ba1 from Ba2 Fiat S.p.A. LT Corporate Family Ratings ... to Ba1 from Ba2 First Union National Bank Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2001-C2 US$ 15,023,000 Class G ... to Aa1 from Aa2 US$ 17,527,000 Class H, ... to Aa2 from A2 US$ 12,519,000 Class J ... to A2 from Baa2 US$ 15,023,000 Class K... to Baa1 from Ba1 Russia International Card Finance S.A US$ 300.00M affected STRUCT. Senior Secured ... to Ba2 from Ba3 REVIEW FOR POSSIBLE DOWNGRADE Putnam Structured Product CDO 2001-1 LTD. US$ 18.00M may be affected STRUCT. Subordinate ... Ba3 ASSIGNMENTS ARAMARK Corporation SPECULATIVE GRADE LIQUIDITY RATINGS ... SGL-2 Belarus COUNTRY CEILING RATING ... NP COUNTRY CEILING RATING ... Ba2 COUNTRY CEILING BANK DEP RTG ... B2 COUNTRY CEILING BANK DEP RTG ... NP Belarus, Government of Bel.Ruble ISSUER RATING ... B1 Frgn.Cur. ISSUER RATING ... B1 COMM 2007-C9 Mortgage Trust US$ 0.00M Cl. XS PASS-THRU CTFS due 2049 ... Aaa US$ 7.21M 5.24% Cl. O PASS-THRU CTFS due 2049 ... B1 US$ 7.21M 5.24% Cl. Q PASS-THRU CTFS due 2049 ... B3 US$ 10.82M 5.24% Cl. P PASS-THRU CTFS due 2049 ... B2 US$ 21.64M 6.01% Cl. F PASS-THRU CTFS due 2049 ... A2 US$ 25.25M 6.01% Cl. E PASS-THRU CTFS due 2049 ... A1 US$ 25.25M 6.01% Cl. G PASS-THRU CTFS due 2049 ... A3 US$ 10.82M 5.24% Cl. N PASS-THRU CTFS due 2049 ... Ba3 US$ 14.43M 5.24% Cl. M PASS-THRU CTFS due 2049 ...Ba2 US$ 185.00M Cl. AM-FL PASS-THRU CTFS due 2049 ... Aaa US$ 21.64M 5.24% Cl. L PASS-THRU CTFS due 2049 ... Ba1 US$ 28.86M 6.01% Cl. C PASS-THRU CTFS due 2049 ... Aa2 US$ 32.46M 6.01% Cl. B PASS-THRU CTFS due 2049 ... Aa1 US$ 32.46M 6.01% Cl. D PASS-THRU CTFS due 2049 ... Aa3 US$ 32.46M 6.01% Cl. K PASS-THRU CTFS due 2049 ... Baa3 US$ 36.07M 6.01% Cl. H PASS-THRU CTFS due 2049 ... Baa1 US$ 36.07M 6.01% Cl. J PASS-THRU CTFS due 2049 ... Baa2 US$ 103.55M 5.65% Cl. AM PASS-THRU CTFS due 2049 ... Aaa US$ 26.50M 5.43% Cl. A-1 PASS-THRU CTFS due 2049 ... Aaa US$ 50.00M 5.65% Cl. A-J PASS-THRU CTFS due 2049 ... Aaa US$ 55.70M 6.01% Cl. A-3 PASS-THRU CTFS due 2049 ... Aaa US$ 160.40M 5.81% Cl. A-2 PASS-THRU CTFS due 2049 ... Aaa US$ 64.79M 6.01% Cl. A-AB PASS-THRU CTFS due 2049 ... Aaa US$ 1454.92M 6.01% Cl. A-4 PASS-THRU CTFS due 2049 ... Aaa US$ 257.56M 6.01% Cl. A-1A PASS-THRU CTFS due 2049 ...Aaa CWABS Asset-Backed Certificates Trust 2007-12 US$ 0.00M Cl. A-R PASS-THRU CTFS due 2007 ... Aaa US$ 10.95M Cl. M-7 PASS-THRU CTFS due 2038 ... A3 US$ 21.17M Cl. M-5 PASS-THRU CTFS due 2037 ... A1 US$ 25.55M Cl. M-6 PASS-THRU CTFS due 2038 ... A2 US$ 18.25M Cl. M-4 PASS-THRU CTFS due 2037 ... Aa3 US$ 7.30M Cl. M-9 PASS-THRU CTFS due 2038 ... Baa2 US$ 13.14M Cl. M-8 PASS-THRU CTFS due 2038 ... Baa1 US$ 8.19M Cl. 1-M-2 PASS-THRU CTFS due 2037 ... Aa1 US$ 12.41M Cl. 1-M-1 PASS-THRU CTFS due 2037 ... Aa1 US$ 15.90M Cl. 2-M-2 PASS-THRU CTFS due 2037 ... Aa1 US$ 22.09M Cl. 1-M-3 PASS-THRU CTFS due 2037 ... Aa2 US$ 24.09M Cl. 2-M-1 PASS-THRU CTFS due 2037 ... Aa1 US$ 42.88M Cl. 2-M-3 PASS-THRU CTFS due 2037 ... Aa2 US$ 55.71M Cl. 1-A-2 PASS-THRU CTFS due 2037 ... Aaa US$ 73.47M Cl. 2-A-4 PASS-THRU CTFS due 2037 ... Aaa US$ 84.38M Cl. 2-A-2 PASS-THRU CTFS due 2031 ... Aaa US$ 171.50M Cl. 2-A-3 PASS-THRU CTFS due 2035 ... Aaa US$ 247.94M Cl. 2-A-1 PASS-THRU CTFS due 2029 ... Aaa US$ 501.42M Cl. 1-A-1 PASS-THRU CTFS due 2037 ... Aaa Coventry Health Care, Inc. US$ SHELF due 2010 ... (P)Ba1 US$ 300.00M SR NOTES due 2014 ... Ba1 Imexbank JSCB UAH BANK DEPOSIT RATING ... B3 UAH BANK DEPOSIT RATING ... NP BANK FINANCIAL STRENGTH RATING ... E+ UAH BANK DEPOSIT RATING ... Baa3.ua Frgn.Cur. BANK DEPOSIT RATING ... B3 Frgn.Cur. BANK DEPOSIT RATING ... NP Merrill Lynch Mortgage Investors Trust, Series MLCC 2007-3 US$ 3.64M Cl. I-A-2 PASS-THRU CTFS due 2037 ... Aaa US$ 32.75M Cl. I-A-1 PASS-THRU CTFS due 2037 ... Aaa US$ 20.96M Cl. II-A-2 PASS-THRU CTFS due 2037 ... Aaa US$ 3.82M Cl. III-A-2 PASS-THRU CTFS due 2037 ... Aaa US$ 188.63M Cl. II-A-1 PASS-THRU CTFS due 2037 ... Aaa US$ 34.40M Cl. III-A-1 PASS-THRU CTFS due 2037 ... Aaa ServiceMaster Company (The) SPECULATIVE GRADE LIQUIDITY RATINGS ... SGL-2 Transnet Limited Rand 30000.00M SOUTH AFRICAN MTN/CP PROGRAM ... (P)A2 Rand 30000.00M SOUTH AFRICAN MTN/CP PROGRAM ... (P)A3 Rand 30000.00M SOUTH AFRICAN MTN/CP PROGRAM ... (P)P-1 UBS AG, Jersey Branch - eLevate Series 2007-2 EUR 2.10M Ser. 4921 FLT RT INDEX LKD EURO MTNS due 2009 ... Aaa EUR 15.00M 1.00% Ser. 4764 CONV INDEX LINKED EMTNS due 2010 ... Aaa EUR 75.00M Adjustable Spread Leveraged No COLL NOTES due 2027 ... Aa3 WITHDRAWALS ARAMARK Services, Inc. BACKED Subordinate Shelf ... Formerly (P)B3 BACKED Senior Unsec. Shelf ... Formerly (P)B3 Aramark Corporation (Old) Subordinate Shelf ... Formerly (P)B3 Senior Unsec. Shelf ... Formerly (P)B3 CROWN CLO 2002-1 STRUCT. Senior Secured ... Formerly Aa2 STRUCT. Senior Subordinate ... Formerly A1 STRUCT. Senior Subordinate ... Formerly Ba1 STRUCT. Senior Subordinate ... Formerly Baa2 Citadel Hill 2000 Ltd. STRUCT. Senior Secured ... Formerly Aaa STRUCT. Senior Subordinate ... Formerly A1 STRUCT. Senior Subordinate ... Formerly Ba3 Clearwater Funding CBO 98-A LLC STRUCT. Senior Secured ... Formerly Aaa STRUCT. Senior Subordinate ... Formerly B3 First Dominion Funding II STRUCT. Subordinate ... Formerly Ba3 STRUCT. Senior Secured ... Formerly Aaa STRUCT. Senior Subordinate ... Formerly A3 STRUCT. Senior Subordinate ... Formerly Baa2 Julia CDO, Ltd. STRUCT. Subordinate ... Formerly Baa3 STRUCT. Senior Secured ... Formerly Aa3 STRUCT. Senior Subordinate ... Formerly A2 Special Value Absolute Return Fund, LLC STRUCT. Senior Subordinate ... Formerly A2 Stanfield Arbitrage CDO, Ltd. STRUCT. Subordinate ... Formerly Baa2 STRUCT. Subordinate ... Formerly Ba3 STRUCT. Senior Secured ... Formerly Aaa STRUCT. Senior Subordinate ... Formerly A1 Stockhorn CDO, Limited STRUCT. Subordinate ... Formerly Baa1 STRUCT. Senior Secured ... Formerly Aaa STRUCT. Senior Subordinate ... Formerly Aa3 Triumph Capital CBO I Ltd. STRUCT. Subordinate ... Formerly C STRUCT. Senior Subordinate ... Formerly Ca OUTLOOK ACTIONS Aramark Corporation (Old) To Withdrawn ... from Never Assigned Belarus To Stable ... from Never Assigned Belarus, Government of To Stable ... from Never Assigned Imexbank JSCB To Stable ... from Never Assigned Premium Asset Trust Series 2004-4 To Stable ... from Positive Scottish Annuity & Life Ins Co (Cayman) Ltd To Stable ... from Positive Scottish Holdings Statutory Trust II To Stable ... from Positive Scottish Holdings Statutory Trust III To Stable ... from Positive Scottish Re (U.S.), Inc. To Stable ... from Positive Scottish Re Group Limited To Stable ... from Positive Stingray Pass-Through Trust To Stable ... from Positive POS = Positive NEG = Negative DEV = Developing NOO = No Outlook RUR = Rating(s) Under Review (m) = Multiple outlooks with directional differences exist for this issuer. STA(m) = Stable with directional differences at the asset/issue level. NEG(m) = Negative with directional differences at the asset/issue level. POS(m) = Positive with directional differences at the asset/issue level. DEV(m) = Developing with directional differences at the asset/issue level. RWR = Ratings Withdrawn * New Edition of Bankruptcy Litigation by Steinberg Published ------------------------------------------------------------- An all-new edition of Bankruptcy Litigation, the highly regarded procedural reference and authoritative case study by Irell & Manella LLP partner Howard Steinberg, Esq., has just been published. Considered the most comprehensive and detailed treatment of bankruptcy litigation, the new edition reflects, among other things, the many changes wrought by the 2005 amendments to the U.S. Bankruptcy Code, the most expansive changes to the Code in over 20 years, and covers resulting trends in corporate restructuring that are being broadly felt by both debtors and creditors. The book is published by Thomson West. Given the roles of hedge and equity funds as lenders, and the prevalence of claims trading, Mr. Steinberg said, "The ability of a debtor to rely upon past relationships with lenders and vendors for support during the reorganization process is rare. Chapter 11 liquidating plans are far more common, and absent an aggressive litigation strategy, in many cases unsecured creditors and equity holders generally realize little, if any, recovery." Mr. Steinberg noted that the harsher business landscape, along with layers of new laws, necessitated a major updating of his book, originally published in 1989. "Given the landscape, it was time to give a fresh look at the entire dynamic of bankruptcy disputes," he explained. Expanded to 17 chapters from 14 in the first edition, and with more than 900 new sections, Bankruptcy Litigation remains a practical resource for those engaged in bankruptcy-induced litigation, conceived by an "in-the-trenches" practitioner who is a nationally recognized authority in the field. There are scores of topics that are not addressed in any other treatise. Gaps in the statutes and case law are highlighted in topics such as jurisdiction, discovery, and injunctive relief, which can be used to obtain tactical advantages in litigation. As a bankruptcy litigator, Mr. Steinberg's record is unblemished. In the many cases he has brought to trial, he has never lost, including winning a $36 million judgment in July 2007. For the second edition, Mr. Steinberg worked with a few co-authors, including Irell & Manella partner Roy Geiger, who contributed the chapter on fraudulent transfer litigation. Bankruptcy Litigation has become a classic in its field since its initial publication in 1989. In the intervening years, Mr. Steinberg has written annual supplements, as well as contributed journal articles and chapters to other works -- all focusing on an area of law that, he says, "is being defined all the time in greater detail." A sought-after lecturer on bankruptcy and restructuring, Mr. Steinberg has also taught at UCLA's Anderson School of Management. The recently released 2007 Chambers USA guide, which ranks attorneys and law firms based on objective research criteria as well as peer commentary, credited Mr. Steinberg's long-lasting success to his "remarkable skill set" as well as his "creativity and bankruptcy litigation expertise." In his career he has represented the full spectrum of parties to bankruptcies, including debtors, creditors' committees, trustees, and secured and unsecured creditors, among others. In addition to revisions covering law and procedure, and updated case citations, Bankruptcy Litigation's second edition has a new format: its binder design will allow future supplements to be more easily inserted into each volume, and even entire chapters to be replaced as revisions are issued. Bankruptcy Litigation is roughly divided into two sections. The first, encompassing chapters one through nine, covers procedural issues common to virtually all bankruptcy proceedings. They are: -- Jurisdiction, -- Venue, -- Service of Process Discovery, -- Adversary Proceedings, -- Contested Matters, -- Injunctive Relief, -- Bankruptcy Court Trials, and -- Appeals. The second part, covered in chapters 10 through 17, addresses frequently litigated subject areas. The final three chapters are new and exclusive to the second edition. Chapters 10-17 are entitled: -- Proof of Claim Litigation, -- Litigating Involuntary Bankruptcy Petitions, -- Litigating Relief from Stay Actions, -- Dischargeability of Debt Litigation, -- Denial of Discharge Litigation, -- Strategies and Tactics for Creditors' Committees, -- Preferences, and -- Litigating Fraudulent Conveyance No other book offers such detailed coverage of bankruptcy litigation topics. In keeping with Mr. Steinberg's desire that the volumes remain "case intensive," this book cites thousands of cases - majority and minority opinions, including those from his own experience - from substantive, procedural and tactical viewpoints. Mr. Steinberg said that some bankruptcy court decisions clarify the law while others obfuscate it, adding that "uncertainty has settlement value." Bankruptcy Litigation is rounded out by a Table of Laws and Rules, a Table of Cases, and an index. Mr. Steinberg earned his JD in 1979 from Boston College Law School, where he was editor of the Uniform Commercial Code Reporter Digest. He graduated in 1976 with a BA, magna cum laude, from the University of Massachusetts, where he was a member of Phi Beta Kappa. Irell & Manella LLP -- http://www.irell.com/-- is a full service law firm with approximately 220 attorneys in offices in Los Angeles and Newport Beach, Calif. Founded in 1941, Irell is nationally recognized for its tax, entertainment, intellectual property, corporate and litigation practices. Chambers Global named Irell the number 1 U.S. law firm for intellectual property in 2005 and 2006. The firm's clients include Fortune 500 corporations, universities, and leading-edge entrepreneurial companies in aviation, life sciences and medical devices, telecommunications, gaming, finance, technology and consumer electronics, and entertainment. * BOOK REVIEW: Corporate Debt Capacity: A Study of Corporate Debt Policy and the Determination of Corporate Debt Capacity ----------------------------------------------------------------- Author: Gordon Donaldson Publisher: Beard Books Paperback: 312 pages List Price: $34.95 Order your personal copy at http://www.amazon.com/exec/obidos/ASIN/1587980347/internetbankrupt This book is an important book for corporate financial planners and managers to assist in determining debt financing and the establishment of borrowing limits. This study focuses on how a company determines the wise and proper limitation to borrowing, i.e., the appraisal of risk associated with debt financing and the establishment of borrowing limits. It shows how successful industrial corporations make the choice between debt and equity as the source of long-term capital. The determination of debt capacity is the appropriate limit to the amount of long-term debt outstanding at any point of time. The author explores how the process of making this decision may be improved. ********* 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 R. 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 ***