/raid1/www/Hosts/bankrupt/TCR_Public/071002.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
Tuesday, October 2, 2007, Vol. 11, No. 233
Headlines
ABSC HOME: S&P Junks Rating on 2004-HE4 Class M8 Certificates
ALLIANCE LAUNDRY: Plans to Restate December 2006 Annual Report
ALLIANCE LAUNDRY: S&P Says Ratings Remains on Developing Watch
ALTERNATE FAMILY: Case Summary & 19 Largest Unsecured Creditors
ASHBURY AUTOMOTIVE: Earns $20.6 Million in Quarter Ended June 30
AVANTAIR INC: J.H. Cohn LLP Expresses Going Concern Doubt
BALLY TOTAL: Emerges From Chapter 11 & Closes Harbinger Deal
BAYOU GROUP: Exclusive Plan Filing Period Extended to October 28
BCBG MAX: Founder Considering IPO or Partial Sale
BREK ENERGY: Posts $237,776 Net Loss in Quarter Ended June 30
BRUSHFIELD CDO: Moody's Rates $9.4 Mil. Class B-2L Notes at Ba2
CAPITAL AUTO: Moody's Rates $4.966 Mil. Class D Notes at Ba1
CHRISTINE LARSEN: Case Summary & 13 Largest Unsecured Creditors
CLICKABLE ENTERPRISES: Simontacchi Raises Going Concern Doubt
CLICKABLE ENT: June 30 Balance Sheet Upside-Down by $11 Million
COLONIAL ADVISORY: Fitch Retains Junk Rating on $45.36MM Notes
CONTINENTAL DIVISIONS: Case Summary & 17 Largest Unsec. Creditors
CORPORATE BACKED: S&P Rates Two Class Certificates at B-
CREDIT SUISSE: Stable Performance Cues Fitch to Hold Ratings
CWALT INC: Fitch Assigns Low-B Ratings on Two Cert. Classes
CWMBS INC: Fitch Rates $414,000 Class B-4 Certificates at B
DB KEY: Case Summary & 12 Largest Unsecured Creditors
DECKER COLLEGE: $1.8 Million in Funds Missing
DEL MONTE: Moody's Holds Corporate Family Rating at Ba3
DELPHI CORP: Closes $66 Mil. Sale of Catalyst Biz to Umicore
DOCTOR'S MARKETING: Sells Three Monrovia Properties for $6 Million
DURA AUTOMTIVE: Amends Plan to Tweak Terms of Rights Offering
EL PASO: Completes $879.1 Million Peoples Energy Cash Buyout
ENRON CORP: Distributes More Than $1.7 Billion to Creditors
EUROPEAN AMERICAN: Case Summary & 20 Largest Unsecured Creditors
FLEXTRONICS INT'L: 634,188,636 Solectron Shares Agrees to Exchange
FOXTONS NORTH AMERICA: Cuts Jobs, May File for Bankruptcy
FREEDOM CERTIFICATES: S&P Places B Ratings on Pos. CreditWatch
FREEPORT-MCMORAN: To Pay Quarterly Cash Dividends on November 1
FREMONT GENERAL: Lead Plaintiff Appointment Requests End Nov. 13
GEORGIA GULF: Fitch Lowers Issuer Default Rating to B from BB-
GETTY IMAGES: S&P Upgrades Corporate Credit Rating to BB
GIBSON GUITAR: Moody's Downgrades Corporate Family Rating to B1
GOLDENTREE LOAN: Moody's Rates $33.75 Mil. Class E Notes at Ba2
GSAA HOME: Fitch Puts 'B' Rating on $2.495 Mil. Class B-5 Certs.
GSMPS MORTGAGE: Poor Credit Support Cues S&P to Cut Rating to B
GULF STATES: Court Dismisses EPA's Plea for Cleanup Costs Payment
HOLLINGER INC: Intends to Stay Under Bankruptcy Protection
INDEPENDENCE TAX: Rejects Peachtree's Unsolicited Bid
INNOPHOS HOLDINGS: To Pay $0.17/Share Dividend on October 31
INTERNATIONAL MANAGEMENT: Baker, Laird Want Case Converted
INTERNATIONAL RECTIFIER: Delayed 10-K Filing Prompts NYSE Notice
INTERSTATE BAKERIES: Fails to Reach CBA Changes with Teamsters
JANCY REALTY: Voluntary Chapter 11 Case Summary
JEFFREY PALMER: Case Summary & 20 Largest Unsecured Creditors
JOHN WATSON: Case Summary & 20 Largest Unsecured Creditors
JP MORGAN: Fitch Rates $6.359MM Class N Certificates at BB-
JP MORGAN: Fitch Affirms B- Rating on $10 Million Class P Certs.
KESSLER HOSPITAL: Court Approves Crammer Bishop as Special Counsel
KESSLER HOSPITAL: Taps Colmen Group as Chief Restructuring Officer
KOLORFUSION INT'L: Carver Moquist Raises Going Concern Doubt
LAJITAS RESORT: Court Orders Sale of Assets at October 18 Auction
M/I HOMES: Incurs $42.6 Million Net Loss in Quarter Ended June 30
MATRITECH INC: June 30 Balance Sheet Upside-Down by $5.2 Million
MERITAGE HOMES: Posts $57 Million Net Loss in Qtr. Ended June 30
MERRILL LYNCH: Fitch Affirms Ratings on 20 Certificate Classes
MERRILL LYNCH: Fitch Rates $6.9 Million Class G Certs. at BB+
METAVANTE CORP: Moody's Places Corporate Family Rating at Ba2
METAVANTE CORP: Stable Revenue Cues S&P's BB Credit Rating
MISSION POSSIBLE: Voluntary Chapter 11 Case Summary
MYLAN LABS: Extends 5.75% and 6.375% Notes Offerings to October 2
NASDAQ STOCK: Repayment Cues Moody's to Withdraw Ratings
NEUROBIOLOGICAL TECH: Receives Nasdaq Non-Compliance Notice
NETBANK INC: Eaula Adams Resigns as Director
NETBANK INC: FDIC to Sell $420 Million Division
NEW CENTURY: Board Members Gotschall, Cole and Zona Resign
PACIFIC LUMBER: Files Chapter 11 Plan of Reorganization
PACIFIC LUMBER: BoNY Wants Adequate Protection on Collateral
PACIFIC LUMBER: BoNY Opposes Scopac's Log Purchase Agreement
PACIFICNET INC: Filing of Amended Financials Near Completion
PANTRY INC: Expects Lower Gasoline Gross Margin Per Share in 2007
PEOPLE'S CHOICE: Wants Excl. Plan Filing Period Moved to Nov. 30
PEOPLE'S CHOICE: M. Kvarda Approved as Chief Restructuring Officer
QUAKER FABRIC: Wants University Management to Collect Receivables
QUEBECOR WORLD: Inks Amended $750 Million Bank Credit Facility
QUEBECOR WORLD: Unit Calls for Redemption of $370 Million Notes
QUEBECOR WORLD: Posts $21.1 Million Net Loss in Qtr. Ended June 30
R&G FINANCIAL: Unit Obtains Notices on Mortgage Banking Status
REAL TURF: Case Summary & 20 Largest Unsecured Creditors
REFCO INC: Former Directors Want Axis to Pay Defense Costs
REFCO INC: Axis Says Reimbursement Sought Isn't Part of Coverage
REFCO INC: Class Action Against Thomas H. Lee Partners Dismissed
RELIANT ENERGY: Has Until October 4 to File Schedules & Statement
RELIANT ENERGY: U.S. Trustee Appoints Three-Member Creditors Panel
REMY INT'L: Likely Bankruptcy Filing Cues Moody's C/LD Rating
REVERE INDUSTRIES: S&P Junks Corporate Credit Rating
RIVER VALLEY: Case Summary & Four Largest Unsecured Creditors
ROBERT IKENBERRY: Involuntary Chapter 11 Case Summary
RURAL/METRO: Obtains Notice of Default from Wells Fargo
RURAL/METRO: Reduces Term Loan B Credit Facility by $5 Million
SAINT PAUL PLAZA: Case Summary & 12 Largest Unsecured Creditors
SCO GROUP: Names Ken Nielsen as Interim Chief Financial Officer
SCOTTISH RE: Terry Eleftheriou Named Chief Financial Officer
SEA CONTAINERS: Exclusive Plan-filing Period Extended to Dec. 21
SHAW GROUP: Posts $62 Million Net Loss in Quarter Ended Feb. 28
SHOWCASE INDUSTRIES: Case Summary & 4 Largest Unsecured Creditors
SOLECTRON CORP: 634.19 Million Shares Vote for Exchange
SPECTRUM BRANDS: Agrees to Sell Canadian Home & Garden Division
STANDARD PACIFIC: Posts $165.9 Mil. Net Loss in Qtr. Ended June 30
SWEET TRADITIONS: Court Approves Blackwell Sanders as Counsel
SWEET TRADITIONS: Committee Taps Shughart Thomson as Counsel
T&R FLAGG: Case Summary & 18 Largest Unsecured Creditors
TAL ENTERPRISES: Voluntary Chapter 11 Case Summary
TERWIN MORTGAGE: S&P Lowers Ratings on 35 Class Certificates
TIERRA HOLDINGS: Voluntary Chapter 11 Case Summary
TRW AUTOMOTIVE: Fitch Holds 'BB' Issuer Default Rating
TYSON FOODS: John Tyson to Continue Leading Board of Directors
WBCMT: Fitch Affirms Low-B Rating on Three Class Certificates
WELLS FARGO: Fitch Rates $17.5 Million Class I-B-4 Certs. at BB
WELWIND ENERGY: Posts CDN$1.6 Million in Quarter Ended June 30
WESTMORELAND COAL: Restates Consolidated Financial Statements
WYNN RESORTS: S&P Places BB- Rating Under Positive CreditWatch
* S&P Places Ratings on Ford Related Transactions Under Watch
* Thompson & Knight Elects Two Partners as TADC Directors
* Thompson & Knight Adds 17 New Associates in Three Texas Offices
* 34 Ulmer & Berne Attorneys Recognized as America's Best
* Large Companies with Insolvent Balance Sheets
*********
ABSC HOME: S&P Junks Rating on 2004-HE4 Class M8 Certificates
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on the class
M8 asset-backed pass-through certificates issued by ABSC Home
Equity Loan Trust Series 2004-HE4 to 'CCC' from 'B' and removed it
from CreditWatch, where it was placed with negative implications
on April 10, 2007.
At the same time, S&P affirmed its ratings on 27 classes from this
deal and from Asset Backed Securities Corp.'s series 2002-HE1,
2004-HE2, and 2005-HE2. Of the 27 affirmations, S&P removed the
ratings on two classes from CreditWatch negative.
The downgrade of class M8 from series 2004-HE4 reflects a
reduction in credit enhancement resulting from monthly realized
losses, as well as a high amount of severe delinquencies (90-plus
days, foreclosures, and REOs). Monthly realized losses have
exceeded excess interest during the past six months. As
of the Sept. 25, 2007, remittance date, the average monthly loss
was $962,691 over the past six months, while excess spread
averaged $194,062 for the same period. Overcollateralization has
been depleted completely; however, the M8 class is supported by
two unrated classes with current balances totaling $2,990,259.
The transaction has $10,380,563 in severe delinquencies.
S&P removed the rating on class M8 from series 2004-HE4 from
CreditWatch because it was lowered to 'CCC'. According to
Standard & Poor's surveillance practices, ratings lower than 'B-'
on classes of certificates or notes from RMBS transactions are not
eligible to be on CreditWatch negative.
The affirmations reflect sufficient credit enhancement for the
current ratings. The classes with affirmed ratings have actual
and projected credit support percentages that are in line with
their original levels.
Subordination, overcollateralization, and excess spread provide
credit support for these transactions. The collateral for these
series consists primarily of closed-end, first-lien, fixed- and
adjustable-rate mortgage loans with original terms to maturity of
no more than 30 years.
Rating Lowered and Removed from Creditwatch Negative
ABSC Home Equity Loan Trust Series 2004-HE4
Rating
------
Class To From
----- -- ----
M8 CCC B/Watch Neg
Ratings Affirmed and Removed from Creditwatch Negative
ABSC Home Equity Loan Trust Series 2004-HE4
Rating
------
Class To From
----- -- ----
M7 BB BB/Watch Neg
Asset Backed Securities Corp. Home Equity Loan
Trust 2002-HE1
Rating
------
Class To From
----- -- ----
M2 A A/Watch Neg
Ratings Affirmed
Asset Backed Securities Corp. Home Equity Loan Trust
Series Class Rating
------ ----- ------
2002-HE1 M1 AA
2002-HE1 B CCC
2004-HE2 M1 AA
2004-HE2 M2 A
2004-HE2 M3 A-
2004-HE2 M4 BBB+
2004-HE2 M5A, M5B BBB
2004-HE2 M6 BBB-
2004-HE4 A1 AAA
2004-HE4 M1, M2 AA
2004-HE4 M3 AA-
2004-HE4 M4 A
2004-HE4 M5 A-
2004-HE4 M6 BBB+
2005-HE2 A3 AAA
2005-HE2 M1 AA
2005-HE2 M2 AA-
2005-HE2 M3 A
2005-HE2 M4 A-
2005-HE2 M5 BBB+
2005-HE2 M6 BBB
2005-HE2 M7 BBB-
2005-HE2 M8 BB+
ALLIANCE LAUNDRY: Plans to Restate December 2006 Annual Report
--------------------------------------------------------------
Alliance Laundry Holdings LLC disclosed in a regulatory filing
with the U.S. Securities and Exchange Commission that it will
restate its financial statements for the fiscal year ended
Dec. 31, 2006 and the fiscal quarter ended March 31, 2007 to
address previously disclosed errors in its reconciliation of
unvouched payables related to inventory, which resulted in the
understatement of the company’s accounts payable, inventory and
cost of sales.
The company had previously disclosed these errors and certain
related matters in current reports on Form 8-K previously filed
with the SEC.
Based on its analysis as of Sept. 27, 2007, the company believes
that the aggregate amount of such understatement of cost of sales
is approximately $4.5 million of which approximately $3.9 million
is attributable to the year ended Dec. 31, 2006 and the remainder
of which is attributable to the company’s quarterly fiscal period
ended March 31, 2007. Partially offsetting the 2006 Adjustment
will be a reduction in compensation expense for the year ended
Dec. 31, 2006 of approximately $1.2 million due to a lower
valuation of management’s service stock options resulting from the
aforementioned understatement of cost of sales.
On Sept. 21, 2007, the Audit Committee of the company’s Board of
Directors concluded that the company’s financial statements for
the fiscal year ended Dec. 31, 2006 and the fiscal quarter ended
March 31, 2007, should no longer be relied upon as a result of the
restatement.
Although the company has not yet completed its assessment of the
impact of the errors described above on its internal control over
financial reporting and disclosure controls and procedures,
management, including the company’s Chief Executive Officer and
Chief Financial Officer, concluded that they had a material
weakness in that they had ineffective controls over the
completeness and accuracy of unvouched payables related to
inventory and the related transactions impacting accounts payable,
inventory and cost of sales that contributed to the accounting
error discussed above.
The Audit Committee has discussed these matters with the company’s
independent registered public accounting firm,
PricewaterhouseCoopers LLP.
About Alliance Laundry
Alliance Laundry Holdings LLC is the parent company of Alliance
Laundry Systems LLC -- http://www.comlaundry.com/-- which
designs, manufactures and markets in North America of commercial
laundry equipment used in laundromats, multi-housing laundries and
on-premise laundries. Under the well-known brand names of Speed
Queen(R), UniMac(R), Huebsch(R), IPSO(R), and Cissell(R), the
company produces a full line of commercial washing machines and
dryers with load capacities from 12 to 200 pounds. The company
has operations in Europe.
ALLIANCE LAUNDRY: S&P Says Ratings Remains on Developing Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings on
Ripon, Wisconsin-based Alliance Laundry Systems LLC, including the
'CCC+' corporate credit rating, would remain on CreditWatch with
developing implications. This follows the company's Sept. 27,
2007, announcement that it will restate its financial statements
for the fiscal year ended Dec. 31, 2006, and fiscal quarter ended
March 31, 2007, to address previously disclosed errors in its
reconciliation of unvouched payables related to inventory. These
errors resulted in an understatement of the company's accounts
payable, inventory, and cost of sales.
Although the company has yet to complete its review, Alliance
Laundry now believes that its cost of sales were understated by
$4.5 million.
"Although our immediate liquidity concerns have been partially
mitigated following the Sept. 10, 2007, bank amendment and
waivers, the company has again revised upward its estimated
aggregate amount of understated unvouched payables," said Standard
& Poor's credit analyst Christopher Johnson. "In addition, we
remain concerned about future covenant cushion under the company's
bank financial covenants as these covenants tighten significantly
at the end of 2007."
Standard & Poor's will continue to monitor developments, including
the company's ability to file its June 2007 financial statements.
"We will assess the impact the ultimate amount of the understated
liabilities will have on the company's credit ratios, and will
discuss with management the company's operating plans prior to
resolving the CreditWatch," said Mr. Johnson.
ALTERNATE FAMILY: Case Summary & 19 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Alternate Family Care, Inc.
10001 West Oakland Park Boulevard, Suite 102
Fort Lauderdale, FL 33351
Bankruptcy Case No.: 07-18203
Type of business: The Debtor aims to provide community-based
mental health and educational services to
children with severe emotional and behavioral
impairments and their families, in a variety of
family and residential placement settings.
See http://www.altfam.com/
Chapter 11 Petition Date: September 30, 2007
Court: Southern District of Florida (Fort Lauderdale)
Judge: Raymond B. Ray
Debtor's Counsel: Bradley S. Shraiberg, Esq.
2385 Northwest Executive Center Drive, Suite 300
Boca Raton, FL 33431
Tel: (561) 443-0800
Fax: (561) 998-0047
Estimated Assets: $100,000 to $1 Million
Estimated Debts: $1 Million to $100 Million
Debtor's 19 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Centre for Innovative trade debt $59,450
Solutions
10001 West Oakland Park
Boulevard, Suite 304
Fort Lauderdale, FL 33351
Broward County Revenue real estate tax $16,872
Collector
115 South Andrews Avenue
Fort Lauderdale, FL 33301
Suntrust Bankcard, N.A. trade debt $10,753
P.O. Box 791250
Baltimore, MD 21279
Brevard County Tax Collector real estate tax $7,841
Citicapital trade debt $1,587
Tire Kingdom, Inc. car repairs $1,381
Palm Beach Tax Collector intangible tax $353
Miami-Dade Tax Collector intangible tax $289
St. Lucie Tax Collector intangible tax $87
A.D.P. fee charges $548
Charles Roberts, P.A. lawsuit unknown
Fowler White Boggs Banker lawsuit unknown
Glenn Dawdy, et. al. lawsuit unknown
Greenspoon, Marder, et. al. lawsuit unknown
Internal Revenue Service unknown
Larry Allen Vincent lawsuit unknown
Tomothy McCauliffe lawsuit unknown
Ullman, Bursa, Hoffman & lawsuit unknown
Ragano, L.L.C.
Vincent Strumolo lawsuit unknown
ASHBURY AUTOMOTIVE: Earns $20.6 Million in Quarter Ended June 30
----------------------------------------------------------------
Asbury Automotive Group Inc. reported net income of $20.6 million
for the second quarter ended June 30, 2007, compared with net
income of $19.0 million for the same period last year.
Total revenue for the quarter of approximately $1.51 billion was
essentially unchanged from a year ago. Total gross profit was
$232.4 million, up 4% adjusted for non-operating items.
Income from continuing operations for the second quarter was
$21.2 million, an 8% increase from $19.5 million a year ago.
Results for this year's second quarter include $834,000 in non-
operating expenses related to the completion of the company's debt
refinancing and a secondary stock offering, while the results a
year ago included non-operating items that added $1.2 million to
income from continuing operations. Excluding these items, income
from continuing operations for the second quarter increased 20% to
$22.0 million, from $18.3 million a year ago.
For the first six months of 2007, income from continuing
operations was $23.6 million, compared with $33.2 million in the
corresponding period last year. Non-operating items reduced
earnings by $13.7 million in the first half of 2007, while non-
operating items increased results a year ago by $1.1 million.
Excluding these items, income from continuing operations for the
first half of 2007 increased 16% to $37.3 million.
Total revenue for the first six months of 2007, was $2.92 billion,
compared with $2.86 billion for the same period last year.
President and chief executive officer Charles R. Oglesby said,
"Asbury's excellent results for the second quarter reflect the
fundamental strength of our diversified retail and services
business model, as well as the resourcefulness and flexibility of
our people in the face of a challenging vehicle sales environment.
Retail sales, both new and used, were soft during the quarter, but
thanks to record results in finance and insurance, both in total
revenue and on a PVR basis, and solid results in fixed operations,
we were again able to deliver record earnings per share."
J. Gordon Smith, senior vice president and chief financial
officer, said, "The second quarter marks our 11th consecutive
quarter of improved expenses as a percentage of gross profit, with
70 basis points of improvement on an adjusted basis. In addition,
our EPS growth was further enhanced through two capital markets
events: the repurchase of approximately 4% of our outstanding
common stock at the end of the first quarter of 2007 and the
refinancing of our 9% senior subordinated notes, which was
completed in mid-June."
During the first half of 2007, Asbury acquired three dealerships
with approximately $140 million in annualized revenues. The
company currently expects to exceed its annual growth target of
adding $200 million in annualized revenues through acquisitions
for the full year.
At June 30, 2007, the company's consolidated balance sheet showed
$1.99 billion in total assets, $1.40 billion in total liabilities,
and $587.9 million in total stockholders' equity.
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?23de
About Asbury Automotive Group
Headquartered in New York City, Asbury Automotive Group Inc.
(NYSE: ABG) -- http://www.asburyauto.com/-- is an automobile
retailer in the U.S. Asbury currently operates 88 retail auto
stores, encompassing 115 franchises for the sale and servicing of
33 different brands of American, European and Asian automobiles.
Asbury offers customers an extensive range of automotive products
and services, including new and used vehicle sales and related
financing and insurance, vehicle maintenance and repair services,
replacement parts and service contracts.
* * *
Moody's Investor Services placed Asbury Automotive Group Inc.'s
probability of default and long term corporate family rating at
"B1" in May 2002. The outlook is positive. The rating still
holds to date.
AVANTAIR INC: J.H. Cohn LLP Expresses Going Concern Doubt
----------------------------------------------------------
Jericho, N.Y.-based J.H. Cohn LLP raised substantial doubt about
Avantair, Inc.'s ability to continue as a going concern after
auditing the company's consolidated financial statements for the
year ended June 30, 2007. The auditing firm pointed to the
company's recurring losses resulting and an accumulated deficit of
$56,198,527 as of June 30, 2007. In addition, the company has a
working capital deficiency of $8,407,103 as of June 30, 2007.
The company posted a $21,699,906 net loss on $76,393,232 of total
revenues for the year ended June 30, 2007, as compared with a
$20,747,921 net loss on $48,395,380 of total revenues in the prior
year. The company posted an operating loss of $19,022,627 at
June 30, 2007, compared with a $19,633,292 operating loss in the
prior year.
At June 30, 2007, the company's balance sheet showed $160,490,260
in total assets and $172,449,284 in total liabilities, resulting
in an $11,959,024 stockholders' deficit.
A full-text copy of the company's 2007 annual report is available
for free at http://ResearchArchives.com/t/s?23dd
About Avantair
Based in Clearwater, Florida, Avantair Inc. (OTC BB: AAIR) --
http://www.avantair.com/-- is the exclusive North American
provider of fractional aircraft shares in the Piaggio Avanti P.180
aircraft. Avantair is the fifth largest company in the North
American fractional aircraft industry and the only publicly-traded
standalone fractional operator. The company currently manages a
fleet of 33 planes with another 52 Piaggio Avanti IIs on order.
It also recently announced an order of 20 Embraer Phenom 100s.
Avantair, with operations in 5 states and approximately 270
employees, offers private travel solutions for individuals and
companies at a fraction of the cost of whole aircraft ownership.
BALLY TOTAL: Emerges From Chapter 11 & Closes Harbinger Deal
------------------------------------------------------------
Bally Total Fitness has successfully emerged from Chapter 11 on
Oct. 1, 2007, as a private company just over two months after
filing for bankruptcy protection on July 31, 2007. The
restructuring arrangements funded by Harbinger Capital Partners
Master Fund I, Ltd. and Harbinger Capital Partners Special
Situations Fund L.P. became effective yesterday.
As reported in the Troubled Company Reporter on Sept. 18, 2007,
Harbinger invested approximately $233.6 million in exchange for
100% of the common equity of reorganized Bally. In addition:
-- Senior Noteholders will receive new Senior Second Lien
Notes bearing interest at 13% as well as a consent fee
equal to 2% of the face value of their Notes.
-- Subordinated Noteholders will receive a cash payment of
$123.5 million in the aggregate, with the remaining
balance of the Subordinated Notes satisfied through the
issuance of approximately $200 million in new
subordinated notes of reorganized Bally. The annual
interest rate payable under the new subordinated notes is
15-5/8% as the payment-in-kind interest rate and 14% as
the cash pay interest rate.
-- Existing Bally shareholders and holders of certain
equity-related claims will receive an aggregate
distribution of $16.5 million as soon as practicable
after the Company can determine the maximum amount of the
equity-related claims. That determination cannot be made
until after the Oct. 31, 2007, deadline for submission of
proofs of claim for equity-related claims, and may
require court approval.
In conjunction with its emergence from chapter 11, the company
converted its debtor-in-possession facility to an exit credit
facility.
Morgan Stanley Senior Funding Inc. is the sole lead arranger and
sole bookrunner for the $292 million super-priority secured DIP
and senior secured exit credit facilities.
The company also disclosed that funds which had been deposited in
respect of subscriptions for notes which were to be issued in the
rights offering associated with a noteholder sponsored
restructuring plan, which was not consummated, will be returned
promptly.
About Bally Total Fitness
Based in Chicago, Illinois, Bally Total Fitness Holding Corp.
(Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/-- operates
fitness centers in the U.S., with over 375 facilities located in
26 states, Mexico, Canada, Korea, China and the Caribbean under
the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs
of Canada (R) brands. Bally Total and its affiliates filed for
chapter 11 protection on July 31, 2007 (Bankr. S.D.N.Y. Case No.
07-12396) after obtaining requisite number of votes in favor of
their pre-packaged chapter 11 plan. Joseph Furst, III, Esq., at
Latham & Watkins, L.L.P. represents the Debtors in their
restructuring efforts. As of June 30, 2007, the Debtors had
$408,546,205 in total assets and $1,825,941,54627 in total
liabilities.
The Debtors filed their Joint Prepackaged Plan & Disclosure
Statement on July 31, 2007. On Aug. 13, 2007, they filed an
Amended Joint Prepackaged Plan and on Aug. 17 filed a Modified
Amended Prepackaged Plan.
BAYOU GROUP: Exclusive Plan Filing Period Extended to October 28
----------------------------------------------------------------
The Honorable Adlai S. Hardin Jr. of the U.S. Bankruptcy Court for
the Southern District of New York extended Bayou Group LLC and its
debtor-affiliates' exclusive periods to:
a) file a Chapter 11 plan until Oct. 28, 2007; and
b) solicit acceptances of that plan until Dec. 30, 2007.
As previously reported in the Troubled Company Reporter, the
Debtors filed their Joint Chapter 11 Plan of Reorganization.
However, at a Disclosure Statement hearing, Judge Hardin rejected
the Debtors' Amended Disclosure Statement
Judge Hardin further said that fraudulent conveyance lawsuits
filed by the receiver against investors should continue.
The Debtors disclosed that they withdrew their motion to approve
the Disclosure Statement in light of the complicated legal issues
embodied in the Plan in favor of litigating 119 adversary
proceedings. The Debtors however intend to seek approval of the
Disclosure Statement within the statutory period of exclusivity.
With respect to the ongoing adversary proceedings, the Debtors'
tell the Court that achievements to date include:
* reviewing and analyzing preliminary discovery responses of
defendants in the Adversary Proceedings;
* filing Amended Complaints in 108 adversary proceedings for
the benefit of defrauded creditors;
* defeating motions to dismiss the Amended Complaints filed by
defendants in 95 of the adversary proceedings;
* defeating motions for summary judgment filed by defendants in
24 adversary proceedings;
* entering into court-approved settlement agreements with
defendants in 8 adversary proceedings for the benefit of the
Debtors' estates;
* negotiating pending settlements with defendants in 39
adversary proceedings for the benefit of the Debtors' esates;
* negotiating a discovery schedule for remaining 72 active
adversary proceedings that could result in trial or summary
judgment motions by the end of 2007.
The Debtors anticipate that, given this substantial progress on
these critical issues over the past 15 months, they will be able
to further develop and refine within the forthcoming two months an
appropriate, feasible, and equitable Plan that addresses the
resolution of the pending adversary proceedings and the
distribution of funds to the Debtors' defrauded investor
creditors.
Based in Chicago, Illinois, Bayou Group, LLC, operates and manages
hedge funds. The company and its affiliates filed for chapter 11
protection on May 30, 2006 (Bankr. S.D.N.Y. Case No. 06-22306).
Elise Scherr Frejka, Esq., at Dechert LLP, represents the Debtors
in their restructuring efforts. Joseph A. Gershman, Esq., and
Robert M. Novick, Esq., at Kasowitz, Benson, Torres & Friedman,
LLP, represents the Official Committee of Unsecured Creditors.
When the Debtors filed for protection from their creditors, they
estimated assets and debts of more than $100 million.
BCBG MAX: Founder Considering IPO or Partial Sale
-------------------------------------------------
BCBG Max Azria Group Inc.'s founder, Max Azria, is considering an
initial public offering or a partial sale of the company to a
private equity firm to pool funds for expansion, Suzanne Kapner
writes for Fortune Magazine.
BCBG, according to the report, has signed an employment agreement
in principle with Efthimios Sotos, former chief financial officer
of the Jones Apparel Group, who will help close a better deal for
BCBG.
Both Messrs. Azria and Sotos were not available to comment on the
matter, Ms. Kapner relates.
About BCBG
Vernon, California-based BCBG Max Azria Group Inc. --
http://www.bcbg.com/-- is a private apparel maker. The company
generated revenue of about $1 billion since 2003. It acquired G+G
Retail in February 2006 as well as French retailer Alain Manoukian
and Don Algodon of Spain. The company currently operates 1,077 of
its own retail stores in 33 countries, including 161 locations in
the U.S., under brand names like Max Rave, Herv Leger and
BCBGGirls.
* * *
As reported in the Troubled Company Reporter on July 17, 2007,
Moody's Investors Service downgraded the corporate family rating
of BCBG Maz Azria Group Inc. to B3 from B1 and assigned a negative
outlook.
BREK ENERGY: Posts $237,776 Net Loss in Quarter Ended June 30
-------------------------------------------------------------
Brek Energy Inc. reported a net loss of $237,776 for the second
quarter ended June 30, 2007, compared with a net loss of $244,905
for the same period last year. The decrease in net loss was
primarily due to decreases in depletion, professional fees and due
diligence charges offset by a decrease in revenue and an increase
in lease operating expenses.
Total revenue for the three months ended June 30, 2007, was
$85,356 compared to $119,317 for the three months ended June 30,
2006. The $33,961 decrease in revenue was due to reduced
production and lower prices for gas and oil.
At June 30, 2007, the company's consolidated balance sheet showed
$2.4 million in total assets, $415,526 in total liabilities,
$39,111 in minority interest, and $2.0 million in total
stockholders' equity.
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?23d9
Going Concern Doubt
As reported in the Troubled Company Reporter on May 2, 2007,
Mendoza Berger & Company LLP raised substantial doubt about the
ability of Brek Energy Corporation to continue as a going concern
after auditing the company's financial statements as of Dec. 31,
2006, and 2005. Mendoza Berger pointed to the company's recurring
operating losses and accumulated deficit.
About Brek Energy
Headquartered in Newport Beach, California, Brek Energy
Corporation (Other OTC: BREK.PK) -- http://www.brekenergy.com/--
through its subsidiaries, acquires, operates, and develops
unconventional hydrocarbon prospects primarily in the Rocky
Mountain region of the U.S. It principally acquires leasehold
interests in petroleum and natural gas rights, either directly or
indirectly.
BRUSHFIELD CDO: Moody's Rates $9.4 Mil. Class B-2L Notes at Ba2
---------------------------------------------------------------
Moody's Investors Service assigned these ratings to Notes issued
by Brushfield CDO 2007-1:
-- Aaa to the $62,500,000 Class A-1LB Floating Rate Notes
Due July 2052;
-- Aa2 to the $26,250,000 Class A-2L Floating Rate Notes Due
July 2052;
-- A2 to the $12,500,000 Class A-3L Floating Rate Notes Due
July 2052;
-- Baa2 to the $9,375,000 Class B-1L Floating Rate Notes Due
July 2052; and
-- Ba2 to the $9,375,000 Class B-2L Floating Rate Notes Due
July 2052
The Moody's ratings of the notes address the ultimate cash receipt
of all required interest and principal payments, as provided by
the notes' governing documents, and are based on the expected loss
posed to noteholders, relative to the promise of receiving the
present value of such payments.
The ratings reflect the risks due to the diminishment of cash flow
from the underlying portfolio consisting of High Grade Asset
Backed Securities due to defaults, the transaction's legal
structure and the characteristics of the underlying assets.
Brushfields Capital Management will manage the selection,
acquisition and disposition of collateral on behalf of the issuer.
CAPITAL AUTO: Moody's Rates $4.966 Mil. Class D Notes at Ba1
------------------------------------------------------------
Moody's Investors Service assigned ratings to Capital Auto
Receivables Asset Trust 2007-A. The complete rating actions are
as:
-- $938,671,000 Class A asset-backed notes, rated Aaa, final
scheduled distribution date Feb. 18, 2014
-- $32,282,000 Class B asset-backed notes, rated A1, final
scheduled distribution date Feb. 18, 2014
-- $14,900,000 Class C asset-backed notes, rated Baa2, final
scheduled distribution date Feb. 18, 2014
-- $4,966,000 Class D asset-backed notes, rated Ba1, final
scheduled distribution date Feb. 18, 2014
Capital Auto Receivables Asset Trust 2007-A had a closing date of
Sept. 28, 2007. GMAC LLC is the sponsor and servicer of this
transaction backed by retail auto loans.
CHRISTINE LARSEN: Case Summary & 13 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Christine Renee Larsen
dba Sunset Real Estate
1100 Sawdust Trail
McKinleyville, CA 95519
Bankruptcy Case No.: 07-11234
Chapter 11 Petition Date: September 28, 2007
Court: Northern District of California (Santa Rosa)
Judge: Alan Jaroslovsky
Debtor's Counsel: Christopher G. Metzger, Esq.
Law Offices of Christopher G. Metzger
707 K Street
Eureka, CA 95501
Tel: (707) 441-1185
Fax: (707) 441-8470
Estimated Assets: $1 Million to $100 Million
Estimated Debts: $1 Million to $100 Million
Debtor's list of its 13 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Internal Revenue Service Potential Tax Debt Unknown
Department of Treasury
P.O. Box 21126
Philadelphia, PA 19114
Franchise Tax Board 2003 Income Tax $10,995
P.O. Box 2952, Mail Stop G11
Sacramento, CA 95812-2952
Bank of America Account Balance $8,000
1420 Central Avenue
McKinleyville, CA 95519
California Student Aid Student Loan $5,666
Commission
NCO Financial Account Balance $5,524
Kneaper Electric Account Balance $3,647
Jackie Blevias Security Deposit $1,000
Cox Communications Account Balance $933
Heather Nunez Security Deposit $900
Eel River Disposal Account Balance $526
West Coast Radiology, Inc. Account Balance $495
Six Rivers Emergency Physicians Account Balance $282
Mad River Community Hospital Account Balance $280
Open Door Clinic Account Balance $75
CLICKABLE ENTERPRISES: Simontacchi Raises Going Concern Doubt
-------------------------------------------------------------
Simontacchi & Company, LLP raised substantial doubt about
Clickable Enterprises Inc.'s ability to continue as a going
concern after auditing the company's financial statements for the
year ended March 31, 2007. The auditing firm reported that the
company had a net income of $3,389,153 which includes non-cash
derivative income of $4,903,111; excluding this item there would
have been a net loss of $1,513,958 and a negative cash flow from
operations of $680,020 for the year ended March 31, 2007.
Simontacchi also pointed to the company's stockholders' deficiency
of $5,858,207 at March 31, 2007.
At March 31, 2007, the company's balance sheet showed $2,111,651
in total assets and $6,798,202 in total liabilities. As of March
31, 2007, the company had $2,349,145 of current liabilities and a
$1,188,383 working capital deficit.
The company reported a net income of $3,389,153 on $7,747,044 of
net sales for the year ended March 31, 2007, as compared with a
$4,514,894 net loss on $5,052,237 of net sales in the prior year.
The company also posted an operating loss of $1,296,243 at
March 31, 2007, compared with an operating loss of $1,849,139 in
the prior year.
A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?23da
About Clickable Enterprises
Mount Vernon, New York-based Clickable Enterprises Inc., (OTC BB:
CKEI) -- http://www.clickableoil.com/-- formerly Achievement Tec
Holdings, Inc. through its wholly owned subsidiary ClickableOil,
provides a low cost and efficient means of servicing the heating
oil market utilizing the Internet. ClickableOil is one of the
first Internet-based heating oil companies, replacing the
traditional fuel oil administrative functions and expenses with a
Web-based infrastructure. ClickableOil streamlines the process of
heating oil ordering and delivering by providing a more accessible
point of contact for the customer. CKEI subcontracts with local
delivery companies to deliver the heating oil and services to its
customers.
CLICKABLE ENT: June 30 Balance Sheet Upside-Down by $11 Million
---------------------------------------------------------------
Clickable Enterprises Inc.'s consolidated balance sheet at
June 30, 2007, showed $1.6 million in total assets, $11.4 million
in total liabilities, and $1.2 million in preferred stock,
resulting in an $11.0 million total stockholders' deficit.
The company's consolidated balance sheet at June 30, 2007, also
showed strained liquidity with $686,482 in total current assets
available to pay $2.1 million in total current liabilities.
The company reported a net loss of $5.1 million for the first
quarter ended June 30, 2007, compared with net income of
$1.3 million for the same period ended June 30, 2006. The swing
to a net loss for the three months ended June 30, 2007, is
primarily attributable to a derivative instrument expense of
$4.7 million partially offset by a decrease in selling, general
and administrative expenses.
Total net sales for the three months ended June 30, 2007, were
$1.2 million compared to $969,878 for the three months ended
June 30, 2006. The increase of $226,906, or 23.4%, can be
attributed to a 19.7% increase in gallons sold and a 3.1% increase
in the average selling price per gallon of heating oil.
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?23d8
About Clickable Enterprises
Mount Vernon, New York-based Clickable Enterprises Inc., (OTC BB:
CKEI) -- http://www.clickableoil.com/-- formerly Achievement Tec
Holdings, Inc. through its wholly owned subsidiary ClickableOil,
provides a low cost and efficient means of servicing the heating
oil market utilizing the Internet. ClickableOil is one of the
first Internet-based heating oil companies, replacing the
traditional fuel oil administrative functions and expenses with a
Web-based infrastructure. ClickableOil streamlines the process of
heating oil ordering and delivering by providing a more accessible
point of contact for the customer. CKEI subcontracts with local
delivery companies to deliver the heating oil and services to its
customers.
COLONIAL ADVISORY: Fitch Retains Junk Rating on $45.36MM Notes
--------------------------------------------------------------
Fitch has taken these action on the class B notes of Colonial
Advisory Services CBO I, Ltd., effective immediately:
-- $45,364,887 class B notes remain at 'CC/DR3'.
Colonial CBO is a collateralized bond obligation managed by
Colonial Management Associates. The collateral of Colonial CBO is
composed of high-yield corporate bonds and emerging markets
sovereign debt. Included in this review, Fitch discussed the
current state of the portfolio with the collateral manager and
their portfolio management strategy going forward.
Currently, the class B notes receive all available distributions
of interest and principal on each payment date. As of the Sept.
13, 2007 trustee report, of the nine assets remaining in the
portfolio, six assets totaling $19.5 million with a weighted
average rating of 13.03 (BB+/BB) continue to perform. Interest
proceeds from the assets are currently insufficient to pay all the
interest on the notes. Therefore a portion of the principal is
being used to pay capitalized interest on the notes each period
when principal proceeds are available, with the remaining
principal payments being used to pay down the note balance.
The class B overcollateralization test is currently failing at
62.6% with a trigger of 118%. It is expected that the class B
notes will receive a modest portion of their original principal
balance by maturity in June 2008.
The rating of the classes B notes addresses the likelihood that
investors will receive ultimate interest, as well as the aggregate
outstanding amount of principal by the stated maturity date.
CONTINENTAL DIVISIONS: Case Summary & 17 Largest Unsec. Creditors
-----------------------------------------------------------------
Debtor: Continental Divisions, L.L.C.
660 Southpointe Court
Colorado Springs, CO 80906
Bankruptcy Case No.: 07-21082
Type of business: The Debtor is engaged in the real estate
business.
Chapter 11 Petition Date: September 28, 2007
Court: District of Colorado (Denver)
Judge: A. Bruce Campbell
Debtor's Counsel: Lee M. Kutner, Esq.
Kutner, Miller, Brinen, P.C.
303 East 17th Avenue, Suite 500
Denver, CO 80203
Tel: (303) 832-2400
Estimated Assets: $1 Million to $100 Million
Estimated Debts: $1 Million to $100 Million
Debtor's 17 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Earth Contractors, Inc. trade debt $176,838
8155 Cochise Road
Colorado Springs, CO 80908
Advance Concrete, Inc. trade debt $45,225
5720 Observation Court
Colorado Springs, CO 80916
Hogan & Hartson trade debt $32,737
2 North Cascade Avenue
Colorado Springs, CO 80903
N.E.S., Inc. trade debt $13,836
Indian Hills, H.O.A. trade debt $10,374
Polaris Surveying, Inc. trade debt $8,913
R.&R. Ditching trade debt $7,812
Entech Engineering, Inc. trade debt $7,761
Accordia Insurancea trade debt $5,357
Bond Guarantee Group trade debt $5,108
Rockwell Consulting, Inc. trade debt $3,500
Summit Fence Co. trade debt $2,996
David Krall, Esq. trade debt $2,942
Stockman Kast Ryan Co. trade debt $1,211
The Insco Group trade debt $1,096
Stormwater Enterprises trade debt $525
Colorado Department of trade dent $245
Revenue
CORPORATE BACKED: S&P Rates Two Class Certificates at B-
--------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B-' ratings on
classes A-1 and A-2 from Corporate Backed Trust Certificates
Series 2001-8 Trust on CreditWatch with positive implications.
The rating actions follow the Sept. 26, 2007, placement of the
long-term ratings on General Motors Corp. (GM; B/Watch Pos/B-3) on
CreditWatch with positive implications.
The placement of the long-term ratings on GM and related entities
on CreditWatch positive has no immediate rating impact on the GM-
related asset-backed securities supported by collateral pools of
consumer auto loans, auto leases, or auto wholesale loans.
Corporate Backed Trust Certificates Series 2001-8 Trust is a pass-
through transaction, the ratings on which are based solely on the
ratings assigned to the underlying securities, GM's 8.10%
debentures due June 15, 2024.
The Sept. 26, 2007, placement of the ratings on GM on CreditWatch
positive reflected the announcement that GM and its main union,
the United Auto Workers, have reached a tentative new labor
contract that includes an agreement designed to address the
massive postretirement employment benefit obligations associated
with GM's UAW population.
CREDIT SUISSE: Stable Performance Cues Fitch to Hold Ratings
------------------------------------------------------------
Fitch Ratings affirmed Credit Suisse Commercial Mortgage Trust's
commercial mortgage pass-through certificates, series 2006-C4, as:
-- $60.3 million class A-1 at 'AAA';
-- $92 million class A-2 at 'AAA';
-- $156 million class A-AB at 'AAA';
-- $1.9 billion class A-3 at 'AAA';
-- $150 million class A-4FL at 'AAA';
-- $710.5 million class A-1-A at 'AAA';
-- $427.3 million class A-M at 'AAA';
-- $341.8 million class A-J at 'AAA';
-- Interest only class A-X at 'AAA';
-- Interest only class A-SP at 'AAA';
-- Interest only class A-Y at 'AAA';
-- $26.7 million class B at 'AA+';
-- $64.1 million class C at 'AA';
-- $37.4 million class D at 'AA-';
-- $21.4 million class E at 'A+';
-- $48.1 million class F at 'A';
-- $42.7 million class G at 'A-';
-- $48.1 million class H at 'BBB+';
-- $48.1 million class J at 'BBB';
-- $53.4 million class K at 'BBB-';
-- $10.7 million class L at 'BB+';
-- $16 million class M at 'BB';
-- $16 million class N at 'BB-';
-- $5.3 million class O at 'B+';
-- $10.7 million class P at 'B';
-- $10.7 million class Q at 'B-'.
Fitch does not rate the $53.4 million class S.
The affirmations are the result of stable pool performance and
minimal paydown since issuance. As of the September 2007
distribution date the transaction has paid down 0.24% to
$4.26 billion from $4.27 billion at issuance.
Currently there are two specially serviced loans (0.23%). The
largest specially serviced loan is a multifamily property in
Waterbury, Connecticut (0.15%). The loan is currently 60+ days
delinquent and the special servicer is pursing foreclosure. The
second specially serviced loan is a multifamily property in Fort
Worth, Texas (0.08%). Although the loan is current the special
servicer may acquire the property via a deed-in-lieu of
foreclosure due to valuation concerns regarding the property. The
non-rated class S is sufficient to absorb the Fitch projected
losses on the assets.
Additionally, two loans maintain investment grade credit
assessments based on stable performance. The largest credit
assessed loan is a 1.2 million square foot Class A office property
located at 280 Park Avenue in New York City (7.0%). July 2007
occupancy was 99.8%, a slight increase from 97% at issuance. The
second credit assessed loan is collateralized by the ground and
second floor retail space (17,317 sf) at 828 Madison, New York
City (1.4%). Occupancy as of March 2007 was 100%, the same as at
issuance.
CWALT INC: Fitch Assigns Low-B Ratings on Two Cert. Classes
-----------------------------------------------------------
Fitch has rated CWALT, Inc.'s mortgage pass-through certificates,
Alternative Loan Trust 2007-25 as:
--$621,524,259 classes 1-A-1 through 1-A-8, 1-X, 1-PO, 2-A-1,
2-A-2, 2-X, 2-PO and A-R certificates (senior certificates)
'AAA';
-- $27,213,000 class M certificates 'AA';
-- $8,399,000 class B-1 certificates 'A';
-- $3,359,600 class B-2 certificates 'BBB';
-- $5,711,400 privately offered class B-3 certificates 'BB';
-- $2,351,800 privately offered class B-4 certificates 'B';
The 'AAA' rating on the senior certificates reflects the 7.50%
subordination provided by the 4.05% Class M, the 1.25% Class B-1,
the 0.50% Class B-2, the 0.85% privately offered Class B-3, the
0.35% privately offered Class B-4 and the 0.50% privately offered
Class B-5 (not rated by Fitch). Classes M, B-1, B-2, B-3, and B-4
are rated 'AA', 'A', 'BBB', 'BB', and 'B' based on their
respective subordination only.
Fitch believes the above credit enhancement will be adequate to
support mortgagor defaults. In addition, the rating also reflects
the quality of the underlying mortgage collateral, strength of the
legal and financial structures and the master servicing
capabilities of Countrywide Home Loans Servicing LP, rated RMS2+
by Fitch, a direct wholly owned subsidiary of Countrywide Home
Loans, Inc.
The mortgage pool consists of two loan groups. Loan Group 1
contains 773 loans and consists primarily of 30-year conventional,
fully amortizing mortgage loans totaling $456,238,740 as of the
cut-off date, September 1, 2007, secured by first liens on one-to
four- family residential properties. The mortgage pool, as of the
cut-off date, demonstrates an approximate weighted-average
original-loan-to-value of 74.46%. The weighted average FICO
credit score is approximately 700.
Cash-out refinance loans represent 28.30% of the mortgage pool and
second homes 7.64%. The average loan balance is $590,218. The
four states that represent the largest portion of mortgage loans
are California (30.50%), Florida (9.97%), New York (9.49%) and New
Jersey (5.92%). All other states represent less than 5% of the
cut-off date pool balance.
Loan Group 2 contains 182 loans and consists primarily of 15-year
conventional, fully amortizing mortgage loans totaling $77,919,651
as of the cut-off date, September 1, 2007, secured by first liens
on one-to four- family residential properties. The mortgage pool,
as of the cut-off date, demonstrates an approximate weighted-
average OLTV of 64.61%. The weighted average FICO credit score is
approximately 707. Cash-out refinance loans represent 37.66% of
the mortgage pool and second homes 20.70%.
The average loan balance is $428,130. The four states that
represent the largest portion of mortgage loans are California
(27.65%), New York (11.72%), Florida (8.93%) and Texas(6.61%).
All other states represent less than 5% of the cut-off date pool
balance.
CWALT purchased the mortgage loans from CHL and deposited the
loans in the trust, which issued the certificates, representing
undivided beneficial ownership in the trust. The Bank of New York
will serve as trustee. For federal income tax purposes, an
election will be made to treat the trust fund as one or more real
estate mortgage investment conduits (REMICs).
CWMBS INC: Fitch Rates $414,000 Class B-4 Certificates at B
-----------------------------------------------------------
Fitch rated CWMBS, Inc.'s mortgage pass-through certificates, CHL
Mortgage Pass-Through Trust 2007-18 as:
-- $398,992,219 classes 1-A-1 through 1-A-3, 1-X, 1-PO, 2-A-
1, 2-A-2, 2-X, 2-PO and A-R certificates (senior
certificates) 'AAA';
-- $7,236,000 class M certificates 'AA';
-- $2,894,300 class B-1 certificates 'A';
-- $1,240,400 class B-2 certificates 'BBB';
-- $1,654,000 non-offered class B-3 certificates 'BB';
-- $414,000 non-offered class B-4 certificates 'B'.
The 'AAA' rating on the senior certificates reflects the 3.50%
subordination provided by the 1.75% class M, the 0.70% class B-1,
the 0.30% class B-2, the 0.40% non-offered class B-3, the 0.10%
non-offered class B-4 and the 0.25% non-offered class B-5 (not
rated by Fitch). Classes M, B-1, B-2, B-3, and B-4 are rated 'AA',
'A', 'BBB', 'BB', and 'B' based on their respective subordination
only.
Fitch believes the above credit enhancement will be adequate to
support mortgagor defaults. In addition, the rating also reflects
the quality of the underlying mortgage collateral, strength of the
legal and financial structures and the master servicing
capabilities of Countrywide Home Loans Servicing LP, rated 'RMS2+'
by Fitch, a direct wholly owned subsidiary of Countrywide Home
Loans, Inc. The mortgage pool consists of two separate loan
groups.
Each loan group will consist primarily of 30-year conventional,
fixed rate mortgage loans. All loans are secured by first liens
on one- to four family residential properties. Group 1 consists
of 309 loans. As of the cut-off date, Sept. 1, 2007, the average
mortgage pool balance is $611,726, with an approximate weighted-
average original loan-to-value ratio of 73.68%. The weighted
average FICO credit score is approximately 749.
Cash-out refinance loans represent 11.45% of the mortgage pool and
second homes 4.66%. The states that represent the largest portion
of mortgage loans are California (43.99%) and Virginia (5.84%).
All other states represent less than 5% of the pool as of the cut-
off date. Group 2 consists of 308 loans.
As of the cut-off date, Sept. 1, 2007, the average mortgage pool
balance is $628,132, with an approximate OLTV of 74.69%. The
weighted average FICO credit score is approximately 745. Cash-out
refinance loans represent 18.23% of the mortgage pool and second
homes 7.71%. The states that represent the largest portion of
mortgage loans are California (29.34%), New York (7.30%), Florida
(6.46%), Virginia (5.81%) and Maryland (5.01%).
All other states represent less than 5% of the pool as of the cut-
off date. CWMBS purchased the mortgage loans from CHL and
deposited the loans in the trust, which issued the certificates,
representing undivided beneficial ownership in the trust.
The Bank of New York will serve as trustee. For federal income
tax purposes, an election will be made to treat the trust fund as
one or more real estate mortgage investment conduits (REMICs).
DB KEY: Case Summary & 12 Largest Unsecured Creditors
-----------------------------------------------------
Debtor: D.B. Key Largo, L.L.C.
501 Continental Plaza, 3250 Mary Street
Coconut Grove, FL 33133
Bankruptcy Case No.: 07-18127
Type of business: The Debtor owns and manages real estate.
Chapter 11 Petition Date: September 28, 2007
Court: Southern District of Florida (Miami)
Judge: Laurel M. Isicoff
Debtor's Counsel: Lisa M. Schiller, Esq.
Rice, Pugatch, Robinson & Schiller, P.A.
101 Northeast 3 Avenue, Suite 1800
Fort Lauderdale, FL 33301
Tel: (954) 462-8000
Total Assets: $10,000,000
Total Debts: $14,000,000
Debtor's 12 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Goodkin Consulting reimbursement of $11,326
220 Miracle Mile exp.
Coral Gables, FL 33134
Hershoff, Lupino & Yagel, professional $9,995
L.L.P. services
90130 Old Highway
Tavernier, FL 33070
Monroe County Planning application fee $8,830
Department
Capital Builders Group pre-construction fee $5,302
Department of Environmental vendor $3,432
Protections
J.F.S. Design, Inc. professional services $3,128
Stearns Weaver Miller Wessler professional services $2,063
Guaranteed Fence Company vendor $1,900
Randall E. Stofft Architects professional services $1,028
Perez Engineering & professional services $480
Development
Bryn & Associates professional services $451
Martin L. Schecner, C.P.A., professional services $287
P.A.
DECKER COLLEGE: $1.8 Million in Funds Missing
---------------------------------------------
Around $1.8 million of funds belonging to Louisville, Kentucky-
based Decker College is missing 32WLKY.com reports.
The amount, according to the report, was listed in the school's
assets in schedules filed with the Bankruptcy Court. Decker
College shut down in September 2005.
Citing Della Justice, Esq., at the Kentucky Attorney General's
consumer protection division, the report discloses that the money,
as well as the account it was supposed to in, can't be found. Ms.
Justice believes that the amount was there at the start of
Decker's bankruptcy proceedings.
DEL MONTE: Moody's Holds Corporate Family Rating at Ba3
-------------------------------------------------------
Moody's Investors Service affirmed Del Monte Foods Company's Ba3
corporate family rating, Ba3 probability of default rating and
speculative grade liquidity rating of SGL-2, following the
company's announcement that its board had authorized the
repurchase of up to $200 million of the company's stock over the
next 36 months.
"The affirmation was based on Moody's expectation that share
repurchases, if any, will not require material debt funding given
Del Monte's cash generation ability," said Elaine Francolino, vice
president-senior credit officer. Moody's also assumes that any
share repurchases will not be done on an accelerated basis. The
rating outlook remains stable.
Ratings affirmed:
-- Corporate family rating at Ba3
-- Probability of default rating at Ba3
-- Senior secured revolving credit agreement, Term Loan A
and Term Loan B at Ba2 (LGD3,33%)
-- $250 million 6.75% senior subordinated notes due 2015 and
$450 million 8.625% senior subordinated notes due 2012 at
B2 (LGD5,84%)
-- Speculative grade liquidity rating at SGL-2
Del Monte's Ba3 corporate family rating and Ba3 probability of
default rating incorporate several elements of the company's
overall business profile that are strong -- such as its market
shares, brand portfolio, and profit margin -- and consistent with
a low investment grade rating. However, these elements are more
than offset by debt protection measures which generally score in
the B category and an increasingly aggressive financial policy
that is assessed at Ba.
The company's speculative grade liquidity rating of SGL-2 (good
liquidity) reflects the expectation that Del Monte will generate
relatively stable cash flow despite raw materials cost pressures.
Moody's anticipates that the company's free cash flow will fund
its working capital, capital expenditures, shareholder enhancement
and scheduled debt payments over the next 12 months. However, the
company may have to draw on its revolving credit facility to cover
seasonal working capital swings on an interim basis during the May
to October period when inventory production typically peaks.
Headquartered in San Francisco, California, Del Monte Foods
Company is one of the largest producers, distributors and
marketers of premium quality, branded food and pet products for
the U.S. retail market. Revenues for the twelve months ended
July 29, 2007 were about $3.5 billion.
DELPHI CORP: Closes $66 Mil. Sale of Catalyst Biz to Umicore
------------------------------------------------------------
Delphi Corporation and certain of its affiliates have completed
the sale of the company's original equipment and aftermarket
catalyst business to Umicore for approximately $66 million,
subject to post-closing adjustments, Delphi officials disclosed
yesterday.
As reported in the Troubled Company Reporter on June 7, 2007,
Delphi selected Umicore as the lead bidder, and received
bankruptcy court approval on June 26, 2007, to proceed with the
competitive bidding process for the sale of the catalyst business.
On Aug. 8, 2007, in accordance with bidding procedures approved by
the bankruptcy court, Delphi conducted an auction and selected
Umicore as the successful bidder. On Aug. 16, 2007, Delphi
received approval from the bankruptcy court to proceed with the
sale of assets related to the catalyst business to Umicore.
Although the company has sold its catalyst business, it will
continue to provide full engine management systems, including air
and fuel management, combustion and valvetrain technology, and
exhaust systems technology through its gas EMS product business
unit.
Headquartered in Troy, Mich., 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. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan
of Reorganization and a Disclosure Statement explaining that Plan.
The Court has set a hearing on October 3 to consider the adequacy
of the Disclosure Statement.
DOCTOR'S MARKETING: Sells Three Monrovia Properties for $6 Million
------------------------------------------------------------------
Doctor's Marketing Group LLC sold three properties, formerly known
as the Monrovia Community Hospitals, to Monrovia MOB LLC at a sale
approved by the U.S. Bankruptcy Court for the Central District of
California for $6 million, Janelle Reaves of CoStar reports.
The properties, all located in Monrovia, California, are:
1) a 22,264-square-foot hospital in 319 South Heliotrope
Avenue,
2) a 4,840-square-foo medical office building; and
3) a 1,800-square-foot storage facility in 314 Jasmine Avenue.
Based in Woodland Hills, California, Doctors Marketing Group, LLC,
previously filed for chapter 11 protection on Feb 10, 2006 (Bankr.
C.D. Calif. Case No. 06-10158). On July 3, 2006, the company
filed its second chapter 11 petition (Bankr. C.D. Calif. Case No
06-11037). Glenn Ward Calsada, Esq., in Los Angeles, California
represents the Debtor. When the Debtor filed for protection from
its creditors, it disclosed estimated assets and debts between $1
million and $10 million.
DURA AUTOMTIVE: Amends Plan to Tweak Terms of Rights Offering
-------------------------------------------------------------
DURA Automotive Systems Inc. and its debtor-affiliates amended
their Joint Plan of Reorganization and accompanying disclosure
statement to:
(i) address Pacificor LLC's requirement that Dura become a
privately held company once it exits Chapter 11 and
(ii) provide additional information and update parties-in-
interest on company developments since filing their
original plan on Aug. 22, 2007.
Pacificor, as backstop party, is entitled to buy unsold of shares
of the 39.3% to 42.6% of shares in Reorganized Dura to be issued
in a rights offering available to holders of 8.625% senior
unsecured notes due April 2012, which rights offering is expected
to raise $140,000,000 to $160,000,000. As a substantial holder
of the senior notes, Pacificor will get a share of the 57.4% to
60.7% of the reorganized company allotted to that class of debt
under the proposed reorganization plan.
The Associated Press says that Pacificor hasn't explained why it
wants Dura to be private held. Private-equity investors, however,
according to AP, prefer to take positions in companies that are
outside the purview of securities regulators.
The amendment to the Amended Backstop Rights Purchase Agreement
dated as of August 13, 2007, between Dura and Pacificor, and the
Amended Plan, submitted to the Court on September 28, 2007,
specifically provide that the Reorganized Debtors will be a
private company not required to register the new common stock
under Section 12 of the Securities Exchange Act of 1934. If the
proposal is approved by the Court at the hearing scheduled for
October 3, 2007, Dura will not be required to issue public
financial statements once it's out of bankruptcy.
Dura has warned that if the changes are not approved, it would
unlikely be able to find and negotiate an alternative backstop or
other transaction in sufficient time to permit it to exit
Chapter 11 prior to December 31, 2007, when the $185,000,000
debtor-in-possession term-loan facility and the $115,000,000
revolving credit facility arranged by Goldman Sachs Capital
Partners L.P., and General Electric Capital Corporation are set
to expire.
Companies are generally exempt from U.S. Securities and Exchange
Commission rules if they have fewer than 300 shareholders. In
that light, Dura grouped into to subclasses senior notes claims
aggregating $418,700,000, which holders are expected to recover
55 cents on the dollar on their claims:
(i) Holders of claims for $75,000 or less in Senior Notes
principal amount -- Class 3B Senior Notes Claims -- will
receive the cash equivalent to its pro rata share of the
distribution of the new stock, the price of which is set
at $10 a share; and
(ii) Holders of claims that exceed $75,000 in Senior Notes
principal amount -- Class 3A senior Notes Claims -- will
receive its pro rata distribution of the new stock and
will have the option to purchase shares in the rights
offering. These holders were previously allowed to
purchase shares under the Original Plan
The Plan and the Backstop Deal have contemplated that holders of
the 9% subordinated notes due 2009, which are owed in excess of
$535,600,000, holders of $56,907,500 aggregate principal amount
of its 7 1/2% Convertible Subordinated Debentures due March 31,
2028, and holders of the existing common stock of Dura will
receive zero recovery on their claims and interests, and will not
be entitled to participate in the rights offering.
The absolute priority rule under 11 U.S.C. Sec. 1129(b)(2)(B)(ii)
provides that holders of claims that are junior in rank to a
certain class of claims will receive take nothing under a Chapter
11 plan unless the claimants in the senior class are paid in
full. The 9% Noteholders and holders of other debentures
subordinated by the 8-5/8% Notes, led by U.S. Bank Trust National
Association, and HSBC Bank USA, National Association, have
vigorously opposed the Backstop Deal, which terms were
incorporated in the Reorganization Plan. The 9% Noteholders,
however, failed to obtained support from the Bankruptcy Court and
have appealed the Bankruptcy Court Judge Kevin J. Carey's order
approving the Original Backstop Deal before the U.S. District
Court for the District of Delaware.
Recent Developments
The Amended Plan and the August 13 Backstop Deal have gained
support from the Official Committee of Unsecured Creditors in
Dura's case. The Creditors Committee's support is conditioned,
among other things, to the reimbursement of the reasonable fees
and expenses of U.S. Bank Trust National Association, the trustee
under the Subordinated Notes, and The First National Bank of
Chicago, the trustee under the Subordinated Indentures. The
disclosure statement detailing the terms of the Amended Plan did
not, however, state whether the trustees are supporting the Plan.
As part of their postpetition business plan and operational
restructuring efforts, the Debtors announced that they will exit
certain unprofitable business lines:
(i) On September 23, 2007, the Debtors signed an asset
purchase agreement with Advanced Closure Systems, LLC, to
sell their hinges and latches business for $3,500,000,
subject to higher or better offers. As part of the sale
process, ACS negotiated and successfully resolved a
collective bargaining agreement with the hinges and
latches business' unionized work force. Additionally, ACS
has agreed to assume the majority of the pension
obligation related to the business.
(ii) On August 27, the Debtors closed the sale of Atwood Mobile
Products, Inc.'s assets to Atwood Acquisition Co., LLC,
for $160,200,000 aggregate cash consideration. The
proceeds of the sale were used to pay down a portion of
the funds owed under the DIP Term Loan and the DIP
Revolver. As of August 31, 2007, the outstanding balance
of the DIP Term Loan was $104,200,000, and there were no
borrowings outstanding under the DIP Revolver.
(iii) The Debtors plan to cease all operations in all three
facilities in Canada by December 31, 2007:
-- The Debtors intend to cease their seat-adjuster
business located in Bracebridge, Ontario, by October
and completely close the facility by December 31.
Manufacturing operations are being relocated to the
Debtors' facilities in Gordonsville, Tennessee, and
Stockton, Illinois;
-- The Debtors closed their Brantford, Ontario facility
on May 31. The operations previously located at
Brantford were relocated to other plants in order to
facilitate better customer service, lower freight
costs and improve plant capacity utilization. The
Debtors have contracted to sell the Brantford facility
real estate and improvements to Mareddy Corporation
for CN$1,050,000, subject to seller financing of
CN$800,000 for a period of six months; and
-- The Debtors are in the process of winding up the
Stratford, Ontario facility, which together with the
Brantford facility, was operated by their North
American Shifter Systems and Cables sub-division, and
are soliciting purchasers for the real estate and
improvements. The Debtors' efforts to sell the
Stratford facility remain unsuccessful.
Disclosure Statement Hearing
The Debtors need to obtain the Court's approval of the Disclosure
Statement explaining the terms of their Chapter 11 Plan before
they could begin soliciting votes for their Plan and proceed with
the rights offering.
The Debtors' representative will present at the hearing scheduled
on October 3, 2007, at 2:00 p.m. that the Disclosure Statement
contains "adequate information" necessary for holders of eligible
decision about whether to vote to accept or reject the Plan, as
required by Section 1125(b) of the Bankruptcy Code.
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.
The Debtors' exclusive plan-filing period expired on Sept. 30,
2007. (Dura Automotive Bankruptcy News, Issue No. 31 Bankruptcy
Creditors' Service Inc., http://bankrupt.com/newsstand/or
215/945-7000).
EL PASO: Completes $879.1 Million Peoples Energy Cash Buyout
------------------------------------------------------------
El Paso Corporation has completed the acquisition of Peoples
Energy Production Company through its indirect wholly owned
subsidiary, El Paso E&P Company L.P. The total purchase price was
$879.1 million in cash, which reflected customary closing
adjustments.
As reported in the Troubled Company Reporter on Aug. 21, 2007,
El Paso acquired Peoples Energy Production Company for
$875 million in cash through its wholly owned subsidiary, El Paso
Exploration & Production Company.
The acquisition rationale includes:
-- excellent fit with current El Paso E&P operations;
-- provides significant drilling inventory in current areas
of operations;
-- lengthens reserve life;
-- adds talented staff; and
-- continues E&P portfolio high-grading process.
"We're pleased with the rapid completion of this acquisition, and
we are also very pleased that many of the Peoples employees have
chosen to join Team El Paso," Brent Smolik, president of El Paso
Exploration and Production Company, said. "The Peoples properties
are an excellent strategic and operational fit for our company.
In combination with our existing portfolio, they will improve the
predictability of our future performance and add meaningfully to
our inventory of future drilling projects."
About Peoples Energy Production Company
Headquartered in Houston, Texas, Peoples Energy Production Company
is a subsidiary of Integrys Energy Group (NYSE: TEG), that owns an
estimated 305 billion cubic feet equivalent of proved reserves
with current production of 72 million cubic feet equivalent per
day. The company has proved Reserves of 305 Bcfe as of June 30,
2007, 42% proved developed producing; 94% natural gas; current
production: 72 MMcfe/d. Current R/P: 12 years; inventory: More
than 600 proved and probable locations; location of properties:
ArkLaTex, Texas Gulf Coast, San Juan Basin, Mississippi, and
Arkoma Basin.
About El Paso Corporation
Headquartered in Houston, Texas, El Paso Corporation (NYSE:EP) --
http://www.elpaso.com/-- is an energy company that provides
natural gas and related energy products. The company owns North
America's interstate pipeline system, which has approximately
55,500 miles of pipe. It also owns approximately 470 billion cubic
feet of storage capacity and a liquefied natural gas import
facility with 806 million cubic feet of daily base load send out
capacity. El Paso's exploration and production business is
focused on the exploration for and the acquisition, development
and production of natural gas, oil and natural gas liquids in the
United States, Brazil and Egypt. It operates in three business
segments: Pipelines, Exploration and Production and Marketing. It
also has a Power segment, which holds its remaining interests in
international power plants in Brazil, Asia and Central America.
* * *
Moody's Investor Services placed El Paso Corporation's probability
default and long term corporate family ratings at "Ba3" in March
2007, which still holds to date. The outlook is positive.
ENRON CORP: Distributes More Than $1.7 Billion to Creditors
-----------------------------------------------------------
Enron Creditors Recovery Corp., fka Enron Corp., disclosed its
eighteenth distribution to creditors of Enron Creditors Recovery
Corp. and its affiliated Debtor companies. The distribution to
holders of allowed general unsecured claims and allowed guaranty
claims totals approximately $1,744,800,000, consisting of cash of
approximately $1,670,000,000 and Portland General Electric Company
Common Stock equivalents (in the form of cash) of approximately
$74,800,000.
Since November 2004, Enron Creditor's Recovery Corp. has returned
approximately $13,276,000,000 to Creditors in twice-yearly
distributions, in April and October, as well as in "catch-up"
distributions paid on an interim basis every two months. This
figure represents returns to Enron Corp. creditors that are
greater than 200% of the original estimates in the disclosure
statement. Enron Creditors Recovery Corp. has generated this
positive return through its careful efforts to monetize other
assets and reduce overhead costs, as well as its diligence in
recovering funds that were taken fraudulently.
"Enron Creditors Recovery Corp. is very pleased by the substantial
progress we have made to date in returning funds to creditors,"
John Ray III, President and Chairman of the Board said. "Our
work, however, is not finished, as multi-billion dollar claims
against Citigroup and Deutsche Bank AG remain pending. The trial
on these fraud and bankruptcy claims is set to begin in April 2008
and we are committed to taking all steps necessary to enable Enron
Creditors Recovery Corp. to return billions more to our innocent
creditors."
Beginning with the August 2007 "catch-up" distribution, Enron
Creditors Recovery Corp. is now distributing PGE Common Stock
equivalents in the form of cash. On June 18, 2007, the DCR
Overseers sold all 23,658,106 shares of PGE Common Stock held in
the Disputed Claims Reserve for $25.19 per share, after
application of reasonable and customary underwriting fees and
related expenses, as more fully described in the "Distribution
Disclosure Notice" dated as of Oct. 1, 2007, which is available at
http://www.enron.com/
Enron Creditors Recovery Corp. will continue to make distributions
based on the Plan Currency mix; however, the cash equivalent of
shares that would have been distributed had the sale not occurred
will be distributed. The DCR currently consists of approximately
$4,234,000,000 in cash and $423,000,000 of PGE Common Stock
equivalents valued at the Plan value ($21.008 per share).
Details concerning this distribution are available at the Enron
Creditors Recovery Corp. website -– http://www.enron.com/--
identified as "Distribution Disclosure Notice."
About Enron Corporation
Based in Houston, Texas, Enron Corporation filed for chapter 11
protection on Dec. 2, 2001 (Bankr. S.D.N.Y. Case No. 01-16033)
following controversy over accounting procedures, which caused
Enron's stock price and credit rating to drop sharply. Judge
Gonzalez confirmed the Company's Modified Fifth Amended Plan on
July 15, 2004, and numerous appeals followed. The Debtors'
confirmed chapter 11 Plan took effect on Nov. 17, 2004.
Albert Togut, Esq., at Togut Segal & Segal LLP, Brian S. Rosen,
Esq., Martin Soslan, Esq., Melanie Gray, Esq., Michael P. Kessler,
Esq., Sylvia Ann Mayer, Esq., at Weil, Gotshal & Manges LLP,
Frederick W.H. Carter, Esq., Michael Schatzow, Esq., Robert L.
Wilkins, Esq., at Venable, Baetjer and Howard, LLP, and Mark C.
Ellenberg, Esq., at Cadwalader, Wickersham & Taft, LLP represent
the Debtor. Jeffrey K. Milton, Esq., Luc A. Despins, Esq.,
Matthew Scott Barr, Esq., and Paul D. Malek, Esq., at Milbank,
Tweed, Hadley & McCloy LLP represents the Official Committee of
Unsecured Creditors.
EUROPEAN AMERICAN: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------------
Debtor: European American Realty, Ltd.
3520 Piedmont Road, Northeast, Suite 420
Atlanta, GA 30305
Bankruptcy Case No.: 07-75353
Type of business: The Debtor is engaged in the real estate
business.
Chapter 11 Petition Date: September 21, 2007
Court: Northern District of Georgia (Atlanta)
Debtor's Counsel: J. Robert Williamson, Esq.
Scroggins and Williamson
1500 Candler Building
127 Peachtree Street, Northeast
Atlanta, GA 30303
Tel: (404) 893-3880
Estimated Assets: $1 Million to $100 Million
Estimated Debts: $1 Million to $100 Million
Debtor's 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Harold Gootrad Judgment $4,148,785
c/o Greg Shinall, Esq.
Sperling & Slater, P.C.
55 West Monroe Street,
Suite 3200
Chicago, IL 60603
McGuire Woods $1,382,057
901 East Cary Street
Richmond VA 23286
Norcross Group $461,094
Technology Parkway,
Suite 200
Norcross GA 30092
Merrill Corporation (1) $425,823
1 Merrill Circle
St. Paul, MN 55108
Parker, Hudson, Raines $300,742
& Dobb, L.L.C.
1500 Marquis Two Tower
285 Peachtree Center Avenue
Northeast
Atlanta GA 30303
Preston Partnership, L.L.C. $275,000
Flint & Adler
5505 Interstate North
Parkway, Suite 120
Atlanta GA 30328
Gould & Ratner, L.L.P. $242,981
Gaslowitz Frankel LLC (1) $189,135
Anderson, Kill & Olick, P.C. $145,945
Key Equipment Finance $74,533
Jones, Jensen & Harris $47,421
Summitt $43,047
Baker & McKenzie $27,111
Allied Barton $27,000
N.E.C. Financial Services $24,769
Emmanual, Sheppard & Condon $17,131
NetWork Pathways $15,685
Paragon $14,831
Lowndes Drosdick Doste Kantor & $14,681
Reed, P.A.
Travelers Property Casualty Co. $14,355
FLEXTRONICS INT'L: 634,188,636 Solectron Shares Agrees to Exchange
------------------------------------------------------------------
Computershare Shareholders Services Inc., the exchange agent for
the Flextronics International Ltd. and Solectron Corporation
merger, has calculated preliminary 918,360,722 shares of Solectron
common stock outstanding as of Sept. 27, 2007, the election
deadline, disclosing:
* 634,188,636 of the outstanding Solectron shares have
submitted valid elections to receive Flextronics ordinary
shares;
* 78,459,142 of the outstanding Solectron shares have
submitted valid elections to receive cash; and
* 205,712,944 of the outstanding Solectron shares did not
submit valid elections or submitted elections that are
subject to the guaranteed delivery procedure.
Pursuant to the terms of the merger agreement, Solectron
stockholders were entitled to elect to receive either 0.3450 of a
Flextronics ordinary share or $3.89 in cash for each share of
Solectron common stock, subject to proration due to minimum and
maximum limits on the amount of stock consideration and cash
consideration.
Based on the number of valid elections received by the election
deadline and subject to final determination:
* Solectron stockholders who elected to receive stock
consideration will receive Flextronics ordinary shares
with respect to all of their Solectron shares;
* Solectron stockholders who elected to receive cash
consideration will receive cash with respect to all of
their Solectron shares; and
* Solectron stockholders that failed to submit a valid
election will receive cash with respect to all of their
Solectron shares.
The allocation of the consideration to be received by holders of
Solectron common stock may change based upon the elections that
were made subject to guaranteed delivery. The final allocation
will be disclosed after the close of business, today, Oct. 2,
2007.
Flextronics expects to pay approximately $1.07 billion in cash and
issue approximately 221.8 million Flextronics ordinary shares upon
consummation of the merger. No fractional Flextronics ordinary
shares will be issued in the merger.
Instead, each Solectron stockholder that would otherwise be
entitled to receive Flextronics fractional shares will receive
an amount in cash based on the average of the per share closing
prices of Flextronics ordinary shares reported on the NASDAQ
Global Select Market during the 5 consecutive trading days ending
on the trading day immediately preceding the closing date of the
merger.
As provided by the merger agreement, exchangeable shares of
Solectron Global Services Canada Inc., other than exchangeable
shares owned by Solectron, any of its subsidiaries or their
affiliates, will be automatically exchanged for shares of
Solectron common stock, on a one-for-one basis, prior to the
effective time of the merger.
The merger agreement provides that holders of exchangeable shares
were entitled to elect to receive the same consideration in the
merger, and to participate directly in the merger, as a holder of
shares of Solectron common stock.
Therefore, for all purposes above, references to Solectron
stockholders are intended to also include holders of exchangeable
shares.
Solectron stockholders with questions regarding individual
allocation results should contact Innisfree M&A Incorporated toll
free from within the United States and Canada at 877-825-8971.
About Solectron Corporation
Based in Milpitas, California, Solectron Corporation (NYSE: SLR)
-- http://www.solectron.com/-- provides complete product
lifecycle services. The company offers collaborative design and
new product introduction, supply chain management, lean
manufacturing and aftermarket services such as product warranty
repair and end-of-life support to customers worldwide. The
company works with the providers of networking, computing,
telecommunications, storage, consumer, automotive, industrial,
medical, self-service automation and aerospace and defense
products. The company's Lean Six Sigma methodology provides OEMs
with quality, flexibility, innovation and cost benefits that
improve competitive advantage. Solectron operates in more than 20
countries on five continents.
About Flextronics International
Headquartered in Singapore, Flextronics International Ltd.
(NasdaqGS: FLEX) -- http://www.flextronics.com/-- is an
Electronics Manufacturing Services provider focused on delivering
design, engineering and manufacturing services to automotive,
computing, consumer digital, industrial, infrastructure, medical
and mobile OEMs. Flextronics helps customers design, build, ship,
and service electronics products through a network of facilities
in over 30 countries on four continents.
* * *
As reported in the Troubled Company Reporter on Sept. 21, 2007,
Moody's Investors Service assigned a provisional (P)Ba1 rating to
Flextronics International Ltd.'s proposed $2.5 billion unsecured
term loan that will be used to finance the cash consideration
portion of the pending acquisition of Solectron Corporation. This
provisional rating assumes a corporate family rating of Ba1.
FOXTONS NORTH AMERICA: Cuts Jobs, May File for Bankruptcy
---------------------------------------------------------
Foxtons North America discloses that it could file for bankruptcy
in an effort to shut down its business in an orderly fashion,
various reports say citing company senior vice president and
general counsel, John D. Blomquist, Esq.
Further, reports relates, the company laid off 350 of its 380
employees.
According to Mr. Blomquist, the company has no more liquidity to
operate as a going concern and cited the decline in the real
estate market as the cause.
Headquartered in West Long Branch, New Jersey, Foxtons North
America –- http://foxtons.com/-- is a discount real estate
agency, which sold homes at a 2% commission, instead of the
traditional 6%. The company had realty offices in New York and
Connecticut.
Foxtons North America was part of London-based parent Foxtons Ltd.
until earlier this year, when Foxtons Ltd. accepted a buyout offer
from U.K. firm BC Partners Ltd. Foxtons' U.K. founder Jon Hunt
retained the U.S. branches as part of the transaction.
FREEDOM CERTIFICATES: S&P Places B Ratings on Pos. CreditWatch
--------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'B' ratings on
classes A and X from Freedom Certificates US Autos Series 2004-1
Trust on CreditWatch with positive implications. The rating
actions follow the Sept. 26, 2007, placement of the long-term
corporate credit and senior unsecured debt ratings on Ford Motor
Credit Co. (Ford Credit; B/Watch Pos/B-3), a subsidiary of Ford
Motor Co. (Ford; B/Watch Pos/B-3), on CreditWatch with positive
implications.
The Sept. 26, 2007, placement of the long-term corporate credit
and senior unsecured debt ratings on Ford and related entities on
CreditWatch positive has no immediate rating impact on the Ford-
related asset-backed securities supported by collateral pools of
consumer auto loans or auto wholesale loans.
Freedom Certificates US Autos Series 2004-1 Trust is a pass-
through transaction, the ratings on which are based solely on the
lower of the ratings assigned to the underlying securities, the
7.375% bonds due Feb. 1, 2011, issued by Ford Credit, and the
7.25% notes due March 2, 2011, issued by GMAC LLC (BB+/Negative/B-
1).
The Sept. 26, 2007, placement of the ratings on Ford and Ford
Credit on CreditWatch positive reflects the announcement that
General Motors Corp. and its main union, the United Auto Workers,
have reached a tentative new labor contract that includes an
agreement designed to address the massive postretirement
employment benefit obligations associated with GM's UAW
population.
FREEPORT-MCMORAN: To Pay Quarterly Cash Dividends on November 1
---------------------------------------------------------------
Freeport-McMoRan Copper & Gold Inc. declared these quarterly cash
dividends payable on Nov. 1, 2007, to holders of record as of
Oct. 15, 2007:
* $0.3125 per share of FCX's Common Stock (NYSE: FCX);
* $1.6875 per share of FCX's 6-3/4% Mandatory Convertible
Preferred Stock (NYSE: FCXprM);
* $13.75 per share of FCX's 5-1/2% Convertible Perpetual
Preferred Stock.
Headquartered in Phoenix, Arizona, Freeport-McMoRan Copper & Gold
Inc. (NYSE: FCX) – http://www.fcx.com/-- is an international
mining company that operates large, long-lived, diverse assets
with significant proven and probable reserves of copper, gold and
molybdenum. FCX has a portfolio of operating, expansion and
growth projects in the copper industry and is the producer of
molybdenum.
* * *
As reported in the Troubled Company Reporter on Sept. 28, 2007,
Moody's Investors Service revised Freeport-McMoRan Copper & Gold
Inc.'s outlook to positive and affirmed these ratings: (i) 'Ba2'
corporate family rating; (ii) 'Ba2' probability of default rating;
(iii) 'Ba3, LGD5, 80%' $6 billion senior unsecured notes.
FREMONT GENERAL: Lead Plaintiff Appointment Requests End Nov. 13
----------------------------------------------------------------
Members of the class in a lawsuit filed against Fremont General
Corporation by purchasers of Fremont General's common stock
between May 9, 2006 through Feb. 27, 2007, has no later than Nov.
13, 2007, to request the U.S. District Court for the Central
District of California to appoint them as lead plaintiff of the
class.
The law firm Cohen, Milstein, Hausfeld & Toll, P.L.L.C. is counsel
to the class.
Any member of the purported class may move the Court to serve as
Lead Plaintiff through counsel of their choice or may choose to
remain an absent class member.
The complaint charges Fremont General and several of its officers
and directors during the class period with violations of Sections
10(b) and 20(a) of the Securities Exchange Act of 1934. It is
alleged that defendants omitted or misrepresented material adverse
facts about the company's financial condition, business prospects,
and revenue expectations during the class period. Fremont General
operates as the holding company for Fremont Investment & Loan,
which engages in residential real estate lending business in the
United States.
Specifically, the complaint alleges that, during the class period,
defendants issued numerous materially false and misleading
statements which caused Fremont General's securities to trade at
artificially inflated prices. As alleged in the complaint, these
statements were materially false and misleading because they
misrepresented and failed to disclose that:
(1) the company was operating with management whose policies
were detrimental to FIL;
(2) the company was operating FIL without effective risk
management policies and procedures in place in relation to
FIL's primary line of business of brokered sub-prime
mortgage lending;
(3) the company was operating FIL without effective risk
management policies and procedures in place in relation to
FIL's other primary line of business of commercial real
estate construction lending;
(4) the company was operating with inadequate underwriting
criteria and excessive risk in relation to the kind and
quality of assets held by FIL;
(5) the company was operating with a large volume of poor
quality loans and was engaging in unsatisfactory lending
practices;
(6) the company was operating without an adequate strategic
plan in relation to the volatility of FIL's business lines
and the kind and quality of assets held by FIL and in a
manner as to produce low and unsustainable earnings;
(7) the company was operating with inadequate provisions for
liquidity in relation to the volatility of FIL's business
lines and the kind and quality of assets held by FIL;
(8) the company was marketing and extending adjustable-rate
mortgage products to sub-prime borrowers in an unsafe and
unsound manner that greatly increased the risk that
borrowers would default on the loans or otherwise cause
losses to FIL;
(9) the company was making mortgage loans without adequately
considering the borrower's ability to repay the mortgage
according to its terms; and
(10) the company was operating inconsistently with the Federal
Deposit Insurance Corporation's Interagency Advisory on
Mortgage.
According to the complaint, on Feb. 27, 2007, after the market
closed, Fremont General issued a press release disclosing that it
was delaying the filing of its 2006 10-K with the SEC and that it
"intends to file a Form 12b-25 with the Securities and Exchange
Commission explaining the reasons therefor."
On this news, the company's share price declined $2.84 per share,
or 24%, to close on Feb. 28, 2007, at $8.81 per share, on
unusually heavy trading volume. Then, on March 2, 2007, the
company did in fact file a Form 12b-25 with the SEC and informed
investors that it was unable to timely file its Form 10-K and that
it intended to exit its sub-prime residential real estate lending
business.
Moreover, the company said that Fremont General, FIL, and Fremont
General Credit Corporation would enter into a voluntary cease and
desist order with the FDIC related to allegations of unsafe or
unsound banking practices.
The firm can be reached at:
Steven J. Toll, Esq.
Scott Evans
Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
1100 New York Ave., Northwest
West Tower, Suite 500
Washington, DC 20005
Tel: (888) 240-0775 or (202) 408-4600
Headquartered in Santa Monica, California, Fremont General
Corporation (NYSE: FMT) -- http://www.fremontgeneral.com/--
doing business primarily through its wholly owned industrial bank,
Fremont Investment & Loan, is a financial services holding
company. Fremont Investment & Loan originates non-prime or sub-
prime residential real estate loans through independent brokers on
a wholesale basis, which are primarily sold to third party
investors.
* * *
As reported in the Troubled Company Reporter on Aug. 29, 2007,
Moody's Investors Service downgraded its ratings on Fremont
General Corporation (senior to Caa2 from B3) including its lead
subsidiary, Fremont Investment and Loan (deposits to B2 from B1).
The Bank Financial Strength Rating of Fremont Investment and Loan
was affirmed at E+. The rating on the preferred stock issued by
Fremont General Financing I was lowered to Ca from Caa2.
The downgrades, according to Moody's, are a response to low
capital levels at the bank and increased uncertainty that the
holding company can meet its obligations.
GEORGIA GULF: Fitch Lowers Issuer Default Rating to B from BB-
--------------------------------------------------------------
Fitch Ratings downgraded the issuer default rating, senior secured
credit facility rating, senior unsecured note rating and the
senior subordinated notes of Georgia Gulf Corp. These ratings
affect approximately $1.5 billion of debt.
The Rating Outlook is Stable.
-- Issuer default rating downgraded to 'B' from 'BB-';
-- Senior secured credit facility downgraded to 'BB/RR1' from
'BB+';
-- Senior secured term loan B downgraded to 'BB/RR1' from
'BB+';
-- Senior unsecured notes downgraded to 'B-/RR5' from 'BB-';
-- Senior subordinated notes downgraded to 'CCC+/RR6' from
'B+'.
The downgrade of the IDR to 'B' from 'BB-' is based on weaker than
expected financial results due to the slowdown in the housing
sector and higher debt levels from the Royal Group acquisition.
The level of residential new construction and remodeling activity
in the United States is one of the primary drivers in the demand
for vinyl resins, vinyl compounds, and building and home
improvement products, which comprise the majority of Georgia
Gulf's sales. New housing starts in the United States are
projected to fall from $1.8 million in 2006 to $1.35 million in
2007.
Since the Royal Group Acquisition Georgia Gulf has taken actions
to realize synergies and improvement opportunities within the
Royal Group segments. They have divested a number of
unprofitable, non-core businesses, leveraged the combined raw
materials purchasing power of the two companies, consolidated
manufacturing plants to improve efficiency, and have begun to
utilize Georgia Gulf's leading vinyl resins and vinyl compounds
formulation expertise.
Georgia Gulf has stated that they intend to divest the remaining
non-core businesses in 2007. These actions are expected to help
mitigate the impact of difficult market conditions.
The company's end markets are primarily housing related, and until
these improve, Fitch believes it will be very difficult for
Georgia Gulf to achieve profitability growth and deleveraging.
Georgia Gulf spent a lot of money on the Royal Group assets and
despite asset sales and synergies, Georgia Gulf will have a hard
time during the housing down-turn.
Fitch is expecting that Georgia Gulf will continue to experience
difficult market conditions in both chlorovinyls and building
products for the next 18 to 24 months. Cash generation is weaker
than expected as a result of some working capital builds in the
second quarter. The company has no debt maturities until 2011
when the revolver comes due.
Georgia Gulf does have a sizable market position for building and
home improvement products in Canada, which has been a more stable
construction market than the US. Approximately one-third of Royal
Groups sales in building and home improvement products occur in
Canada which should temper the decline in revenues.
The Stable Rating Outlook indicates that the company's financial
performance is expected to remain well within the 'B' rating
category over the next 12 to 18 months. Some debt reduction is
expected through asset sale proceeds related to non-core
businesses and property.
Based in Atlanta, Georgia Gulf is a commodity chemicals producer.
Its product portfolio includes VCM, PVC resin, vinyl compounds,
cumene, acetone, phenol, window and door profiles and moldings as
well as outdoor building products. Georgia Gulf earned
approximately $178.3 million of EBITDA on sales of $2.8 billion
for the LTM period ended June 30, 2007.
Fitch's Recovery Ratings are a relative indicator of creditor
recovery prospects on a given obligation within an issuers'
capital structure in the event of a default.
GETTY IMAGES: S&P Upgrades Corporate Credit Rating to BB
--------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on Seattle,
Washington-based visual imagery company Getty Images Inc.,
including raising the corporate credit rating to 'BB' from 'B+,
and removed the ratings from CreditWatch. The outlook is
negative.
"The rating action is based on the company becoming current on
required SEC filings and our subsequent review with management,"
explained Standard & Poor's credit analyst Tulip Lim.
S&P originally placed the ratings on CreditWatch with developing
implications on Dec. 4, 2006, after the company had received
notices from bondholders that the delay of its third-quarter 10-Q
filing constituted an event of default. Subsequently, the
CreditWatch was revised to positive from developing on June 13,
2007, following the company's filing of its SEC 10-Q forms for its
first and third quarters, and its 2006 Form 10-K. The outlook is
negative because S&P are concerned about secular pressures and
believe financial policy may become more aggressive. As of June
30, 2007, Getty had $385 million of debt outstanding.
The ratings on Getty Images Inc. reflect its good competitive
position in the niche market for noncommissioned visual imagery,
solid discretionary cash flow generation, and low leverage. These
strengths are partially offset by risks related to its limited
business diversity, its reliance on sales to the cyclical
advertising and publishing industries, the trend of organic
revenue decline, and secular pressures related to the unfavorable
economics of digital migration.
GIBSON GUITAR: Moody's Downgrades Corporate Family Rating to B1
---------------------------------------------------------------
Moody's Investors Service downgraded Gibson Guitar Corp corporate
family rating to B1 and probability of default rating to B2
following moderating operating performance. At the same time,
Moody's downgraded the rating of the first lien senior secured
credit facility to B1 from Ba3.
"The downgrade reflects Gibson's moderating operating performance
amid increased uncertainty in consumer spending," said Kevin
Cassidy vice president/senior credit officer at Moody's Investors
Service. Gibson's consolidated operating margins (EBITA/revenue)
have decreased in the LTM June 2007 to the mid single digits from
high single digits, while operating margins at the "core"
subsidiaries also decreased but not as significantly. "The
downgrade also incorporates Moody's concerns over higher than
expected payments to Gibson's non core subsidiaries," said Mr.
Cassidy.
"The negative outlook principally reflects Moody's concern that
Gibson's moderating operating performance may necessitate a need
for the company to revise its senior secured credit facility and
amend its covenants" said Mr. Cassidy. "The negative outlook also
reflects our concern over slowing consumer spending and that the
company's performance may continue to soften" said Mr. Cassidy.
These ratings/assessments were downgraded:
-- Corporate family rating to B1 from Ba3:
-- Probability-of-default rating to B2 from B1;
-- $50 million senior secured revolving credit facility due
2012 to B1 (LGD3, 30%) from Ba3 (LGD3, 31%);
-- $100 million senior secured term loan B due 2014 to B1
(LGD3, 30%) from Ba3 (LGD3, 31%).
Headquartered in Nashville, Tennessee, Gibson Guitar Corp.
primarily manufactures and markets acoustic and electric guitars
under the Gibson and Epiphone brand names. The company also sells
other stringed instruments and instrument-related accessories such
as amplifiers, speakers, and picks/straps.
GOLDENTREE LOAN: Moody's Rates $33.75 Mil. Class E Notes at Ba2
---------------------------------------------------------------
Moody's Investors Service assigned these ratings to Notes issued
by GoldenTree Loan Opportunities V, Limited:
-- Aaa to the $506,250,000 Class A Senior Secured Floating
Rate Notes due 2021;
-- Aa2 to the $61,875,000 Class B Senior Secured Floating
Rate Notes due 2021;
-- A2 to the $43,125,000 Class C Senior Secured Deferrable
Floating Rate Notes due 2021;
-- Baa2 to the $30,000,000 Class D Senior Secured Deferrable
Floating Rate Notes due 2021; and
-- Ba2 to the $33,750,000 Class E Secured Deferrable
Floating Rate Notes due 2021.
The Moody's ratings of the notes address the ultimate cash receipt
of all required interest and principal payments, as provided by
the notes' governing documents, and are based on the expected loss
posed to noteholders, relative to the promise of receiving the
present value of such payments.
The ratings reflect the risks due to the diminishment of cash flow
from the underlying portfolio consisting of Leveraged Loans and
Debt Securities due to defaults, the transaction's legal structure
and the characteristics of the underlying assets.
GoldenTree Asset Management LP will manage the selection,
acquisition and disposition of collateral on behalf of the Issuer.
GSAA HOME: Fitch Puts 'B' Rating on $2.495 Mil. Class B-5 Certs.
----------------------------------------------------------------
Fitch has rated GSAA Home Equity Trust's residential mortgage
pass-through certificates, series 2007-9, as:
-- $426,462,302 classes A1A, A1B, A2A, A2B, A3A, A3B, A-PO
and A-IO senior certificates 'AAA';
-- $10,662,000 class B-1 'AA';
-- $5,898,000 class B-2 'A';
-- $2,495,000 class B-3 'BBB';
-- $2,949,000 class B-4 'BB';
-- $2,495,000 class B-5 'B.'
The 'AAA' rating on the senior certificates reflects the 6%
subordination provided by the 2.35% class B1, 1.30% class B2,
0.55% class B3, 0.65% privately offered class B4, 0.55% privately
offered class B5, 0.60% privately offered class B6. Class B6 is
not rated by Fitch. The ratings also reflect the quality of the
underlying collateral, the strength of the legal and financial
structures, and the master servicing capabilities of Wells Fargo
Bank, N.A. (rated 'RMS1' by Fitch).
As of the cut-off date (Sept. 1, 2007), the pool of loans consists
of 913 fixed-rate mortgage loans, which have 15-year through 40-
year amortization terms. The mortgage pool has an average unpaid
principal balance of $496,916 and a weighted average FICO score of
727. The weighted average amortized current loan-to-value ratio
is 78.41%. Rate/Term and cash-out refinances represent 18.50 and
36.20%, respectively, of the mortgage loans. The states that
represent the largest geographic concentration of mortgaged
properties are California (35.70%), New York (14.80%) and Florida
(7.90%). All other states comprise fewer than 5% of properties in
the pool. None of the mortgage loans are 'high cost' loans as
defined under any local, state, or federal laws.
GS Mortgage Securities Corp. purchased the mortgage loans from
each seller and deposited the loans in the trust, which issued the
certificates, representing undivided and beneficial ownership in
the trust. For federal income tax purposes, the securities
administrator will cause multiple real estate mortgage investment
conduit (REMIC) elections to be made for the trust. Wells Fargo
Bank, N.A. will act as securities administrator and Citibank, N.A.
will serve as the trustee.
GSMPS MORTGAGE: Poor Credit Support Cues S&P to Cut Rating to B
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on class B4
from GSMPS Mortgage Loan Trust 2003-2 to 'B' from 'BB' and removed
it from CreditWatch, where it was placed with negative
implications on Feb. 6, 2007.
The lowered rating reflects a deterioration in available credit
support, which is provided by subordination, to class B4. As of
the September 2007 remittance period, the six-month average
monthly net loss amount had improved to $54,000, compared with the
12-month average of $138,568. Despite the decline in average
losses over the past six months, current and projected credit
support levels are not sufficient to support the B4 class at the
previous rating level. While this transaction is seasoned 48
months and has paid down to 31.37%, cumulative losses are
$3.94 million, or 0.56% of the original pool principal balance.
Total delinquencies, as a percentage of the current pool balance,
are approximately 46.71%, while serious delinquencies (90-plus
days, foreclosures, and REOs) are approximately 21.35%. The
significant percentage of 90-plus-day delinquencies reflects the
mix of FHA and VA reperforming collateral that makes up the loan
pool.
GULF STATES: Court Dismisses EPA's Plea for Cleanup Costs Payment
-----------------------------------------------------------------
District Court Judge U. W. Clemon rejected the U.S. Environmental
Protection Agency's move to compel Gulf States Steel Inc. to cover
the cost of cleaning up its polluted facility, the American
Bankruptcy Institute reports citing Bankruptcy Law360. Judge
Clemom however didn't close EPA's doors in filing another
complaint, the report adds.
The report discloses that the EPA initially filed a lawsuit
against the company in 1997 alleging that Gulf States violated the
Clean Water Act and wanted the company held accountable for the
cleanup.
The company filed for protection under Chapter 11 of the
Bankruptcy Code in July 1, 1999 and the EPA entered into a
settlement agreement with the company. The settlement however,
was to be part of the company's chapter 11 plan of reorganization.
Thus, when the case was converted to a chapter 7 liquidation
proceeding, the deal died, the report further says.
The company emerged from bankruptcy in December 2006. EPA though
manage to secure $2 million from the company for cleanup costs on
the site, the report relates.
HOLLINGER INC: Intends to Stay Under Bankruptcy Protection
----------------------------------------------------------
Hollinger Inc. says that it intends to do everything to remain
under bankruptcy protection in order to pursue outstanding
lawsuits, the Canadian Press reports.
The Canadian Press, citing CEO Wesley Voorheis, says that the
company wants to pursue legal claims since they are considered as
valuable assets. However, Mr. Voorheis adds that if the company
is forced to go out of bankruptcy protection, then its future
could remain uncertain.
Creditors, according to the report, want the company to be taken
off from protection under the Companies' Creditors Arrangement Act
so that they can collect debts worth around $93 million.
Based in Toronto, Ontario, Hollinger Inc. (TSX: HLG.C)(TSX:
HLG.PR.B) -- http://www.hollingerinc.com/-- owns approximately
70.1% voting and 19.7% equity interest in Sun-Times Media Group
Inc. (formerly Hollinger International Inc.), a media company with
assets which include the Chicago Sun-Times newspaper and
Suntimes.com and a number of community newspapers and websites
serving communities in the Chicago area.
The company, along with two affiliates, 4322525 Canada Inc. and
Sugra Limited, filed separate Chapter 15 petitions on Aug. 1, 2007
(Bankr. D. Del. Case Nos. 07-11029 through 07-11031). Hollinger
also initiated Court-supervised restructuring under the Companies'
Creditors Arrangement Act (Canada) on the same day.
Derek C. Abbott, Esq., and Kelly M. Dawson, Esq., at Morris,
Nichols, Arsht & Tunnell LLP, represents the Debtors in their U.S.
proceedings.
INDEPENDENCE TAX: Rejects Peachtree's Unsolicited Bid
-----------------------------------------------------
Independence Tax Credit Plus L.P. IV responded to an unsolicited
tender offer by Peachtree Partners to purchase up to 4.9% of the
45,844 outstanding limited partnership units of Independence IV at
a price of $80 per unit, less certain reductions to that purchase
price as described in the Offerors' written tender offer materials
dated Sept. 17, 2007. The Offeror is not affiliated with
Independence IV or its general partner.
Independence IV believes that the Offer's price is inadequate and
recommends that its unit holders not tender their units in
response to the Offer. The Offer incorrectly states that "all of
the tax credits of the fund expired in 2004". Although there can
be no assurance as to future events, Independence IV currently
expects to distribute tax credits to its unit holders for tax
years 2007-2009.
Furthermore, Independence IV believes that the aggregate value of
the anticipated future tax credits will substantially exceed the
Offer's $80 price. Accordingly, Independence IV relates, unless a
unit holder has no anticipated need or use for tax credits, or has
some need to liquidate his or her investment in Independence IV
now, unit holders will very likely realize superior economic
results by retaining their units than by selling them in response
to the Offer.
About Independence Tax
Independence Tax Credit Plus L.P. IV and 14 other limited
partnerships own affordable apartment complexes that are
eligible for the low-income housing tax credit, some of these
apartment complexes may also be eligible for the historic
rehabilitation tax credit. The general partner of the Partnership
is Related Independence L.L.C., a Delaware limited liability
company. Through the rights of the Partnership and an affiliate
of the general partner, which affiliate has a contractual
obligation to act on behalf of the Partnership to remove the
general partner of the subsidiary partnerships and to approve
certain major operating and financial decisions, the Partnership
has a controlling financial interest in the subsidiary
partnerships.
As of June 30, 2007, Independence IV's balance sheet showed total
assets of $65,471,554, total liabilities of $51,129,531, minority
interest of $1,813,133 and total partners' capital of $12,528,890.
INNOPHOS HOLDINGS: To Pay $0.17/Share Dividend on October 31
------------------------------------------------------------
Innophos Holdings Inc.'s board of directors has declared a
dividend of $0.17 per share of common stock. The dividend will be
payable on Oct. 31, 2007, to stockholders of record as of the
close of business on Oct. 12, 2007.
Headquartered in Cranbury, New Jersey, Innophos Holdings Inc.
(NASDAQ:IPHS) -- http://www.innophos.com/-- produces chemical
grade phosphates. Innophos offers products used in a variety of
food and beverage, consumer products, pharmaceutical and
industrial applications. Innophos has manufacturing operations in
Nashville, Tennessee; Chicago Heights, Illinois; Chicago
(Waterway), Illinois; Geismar, Los Angeles; Port Maitland,
Ontario; and Coatzacoalcos, Veracruz and Mission Hills, Guanajuato
(Mexico).
* * *
Moody's Investors Service placed Innophos Holdings Inc.'s senior
unsecured debt rating at B3, long term corporate family and
probability of default ratings at B1 in April 2007. These ratings
still hold to date.
INTERNATIONAL MANAGEMENT: Baker, Laird Want Case Converted
----------------------------------------------------------
Scott Baker Family Trust and David Laird Family Trust ask the
United States Bankruptcy Court for the Northern District of
Georgia to convert International Management Associates LLC and its
debtor-affiliates' Chapter 11 cases into Chapter 7 liquidation
proceedings.
Baker and Laird point out the Debtors' continuing loss of the
estate and the absence of reasonable rehabilitation in the their
case. They also point out unnecessary and duplicative
administrative expenses made by the Debtors.
Glen A. Delk, Esq., at Lightmas & Delk Attorneys at Law, says the
Debtors have accrued $3,838,734 in professional fees.
Given the continuing burn rate of professional fees, Mr. Delk
contends, the Debtors' case should be immediately converted into
Chapter 7 proceedings.
Headquartered in Atlanta, Georgia, International Management
Associates, LLC -- http://www.imafinance.com/-- managed hedge
funds for investors. The company and nine of its affiliates filed
for chapter 11 protection on March 16, 2006 (Bankr. N.D. Ga. Case
No. 06-62966). David A. Geiger, Esq., and Dennis S. Meir, Esq.,
at Kilpatrick Stockton LLP, represent the Debtors in their
restructuring efforts. James R. Sacca, Esq., at Greenberg
Traurig, LLP, and Mark S. Kaufman, Esq., at McKenna Long &
Aldridge, LLP, represent the Official Committee of Unsecured
Creditors. When the Debtors filed for protection from their
creditors, they did not state their total assets but estimated
total debts to be more than $100 million.
On April 28, 2006, the Court appointed William F. Perkins as the
Debtors' chapter 11 trustee. Kilpatrick Stockton LLP represents
Mr. Perkins.
INTERNATIONAL RECTIFIER: Delayed 10-K Filing Prompts NYSE Notice
----------------------------------------------------------------
International Rectifier Corporation received a notice from the
NYSE indicating that International Rectifier is not in compliance
with the NYSE listed company manual Section 802.01E due to a delay
in the filing of the company's annual report on Form 10-K for the
fiscal year ended June 30, 2007.
The delay arises from the disclosed investigation conducted by the
audit committee of the board of the directors, and the
reconstruction and restatement of financial statements and other
matters described in the company's public filings with the
Securities and Exchange Commission.
The company plans to file its Form 10-K for the fiscal year ended
June 30, 2007, promptly as practicable after completion of these
matters.
The company's shares remain listed on the NYSE and the company
intends to cooperate with the procedures communicated to the
company by the NYSE.
About International Rectifier Corporation
Based in El Segundo, California, International Rectifier
Corporation (NYSE:IRF) -- http://www.irf.com/-- is a designer,
manufacturer and marketer of power management product devices,
which use power semiconductors. The company's products are used
in a variety of end applications, including computers,
communications networking, consumer electronics, energy-efficient
appliances, lighting, satellites, launch vehicles, aircraft and
automotive diesel injection. Its products consist of Power
Management Integrated Circuits (Power Management ICs), Power
Components and Power Systems. It summarizes its segments in two
groups: Focus Products and Non-Focus Products. The company has
manufacturing facilities in the U.S., Mexico, United Kingdom,
Germany and Italy; and has subsidiaries in Japan and Singapore.
* * *
As reported in the Troubled Company Reporter on Sept. 14, 2007,
Standard & Poor's Ratings Services said that its 'BB' corporate
credit rating on International Rectifier Corp. remains on
CreditWatch with negative implications.
INTERSTATE BAKERIES: Fails to Reach CBA Changes with Teamsters
--------------------------------------------------------------
Interstate Bakeries Corporation has not been able to reach a
mutually acceptable agreement with the International Brotherhood
of Teamsters on modifications to its collective bargaining
agreements necessary to allow a more capable and cost-effective
path-to-market, specific health and welfare concessions, and
increased work rule flexibility.
As reported in yesterday's Troubled Company Reporter, IBC reached
an agreement with the Bakery, Confectionery, Tobacco Workers and
Grain Millers International Union, and that it believed the
ratification process was under way.
The company previously stated that if agreements with its two
principal labor unions were not reached by September 30, it would
seek interim Bankruptcy Court approval for a 30-day extension from
existing exclusivity deadlines to allow sufficient time to
formulate a plan to maximize the value of the bankruptcy estates,
including a sale of the Company and/or its assets in its entirety
or in a series of transactions. A hearing on the matter is
scheduled for tomorrow, Oct. 3, 2007.
The company said that until the Oct. 3 hearing, it remains open to
constructive discussions with the IBT.
The company also said that it is continuing discussions with
prospective investors to secure the financial resources required
to successfully emerge from bankruptcy and implement its business
plan, but that all financing proposals the Company has received to
date require union alignment to the Company's business plan.
If union and financing arrangements are not achieved by Oct. 3,
2007, however, the company will pursue Court approval of the
extension and focus efforts on alternative plans to maximize the
value of the bankruptcy estates.
Headquartered in Kansas City, Missouri, Interstate Bakeries
Corporation is a wholesale baker and distributor of fresh-baked
bread and sweet goods, under various national brand names,
including Wonder(R), Baker's Inn(R), Merita(R), Hostess(R) and
Drake's(R). Currently, IBC employs more than 25,000 people and
operates 45 bakeries, as well as approximately 800 distribution
centers and approximately 800 bakery outlets throughout the
country.
The company and seven of its debtor-affiliates filed for chapter
11 protection on Sept. 22, 2004 (Bankr. W.D. Mo. Case No. 04-
45814). J. Eric Ivester, Esq., and Samuel S. Ory, Esq., at
Skadden, Arps, Slate, Meagher & Flom LLP represent the Debtors in
their restructuring efforts. When the Debtors filed for
protection from their creditors, they listed $1,626,425,000 in
total assets and $1,321,713,000 (excluding the $100,000,000 issue
of 6% senior subordinated convertible notes due Aug. 15, 2014) in
total debts. The Debtors' exclusive period to file a chapter 11
plan expires on Oct. 5, 2007.
JANCY REALTY: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Jancy Realty & Investments, Inc.
19820 North 7th Street, Suite 100
Phoenix, AZ 85024
Bankruptcy Case No.: 07-05007
Chapter 11 Petition Date: September 28, 2007
Court: District of Arizona (Phoenix)
Judge: Randolph J. Haines
Debtor's Counsel: Carolyn J. Johnsen, Esq.
Jennings, Strouss & Salmon, PLC
The Collier Center, 11th Floor
201 East Washington Street
Phoenix, AZ 85004-2385
Tel: (602) 262-5911
Fax: (602) 495-2696
Estimated Assets: $1 Million to $100 Million
Estimated Debts: $1 Million to $100 Million
The Debtor did not file a list of its 20 largest unsecured
creditors.
JEFFREY PALMER: Case Summary & 20 Largest Unsecured Creditors
-------------------------------------------------------------
Debtor: Jeffrey Wescott Palmer
Amy Stack Palmer
16549 Goldenrod Place
Encino, CA 91436
Bankruptcy Case No.: 07-13619
Chapter 11 Petition Date: September 28, 2007
Court: Central District Of California (San Fernando Valley)
Judge: Geraldine Mund
Debtor's Counsel: Marc C. Forsythe, Esq.
Goe & Forsythe, LLP
660 Newport Centre Drive, Suite 320
Newport Beach, CA 92660
Tel: (949) 467-3780
Fax: (949) 721-0409
Estimated Assets: $1 Million to $100 Million
Estimated Debts: $1 Million to $100 Million
Debtor's list of its 20 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Lewis Operating Corp. Prior Balance $2,000,000
P.O. Box 670
Upland, CA 91785
David Palmer Unsecured Note $85,000
5430 La Jolla Boulevard
Unit C101
La Jolla, CA 92037
Duncan Palmer Unsecured Note $75,000
440 North Wabash Avenue
Unit 4305
Chicago, IL 60611
Nancy de Merle Prior Balance $50,000
Wildish and Nialis Legal Fees $25,000
Callahan and Blaine Legal Fees $25,000
American Arbitration Association Prior Balance $21,525
Simpson Deposition Services Prior Balance $2,619
Engineering World Engineering Work $2,133
GFG Landscaping Prior Balance $1,180
California Hospital Medical Medical Service $1,117
Integra Realty Resources Prior Balance $1,012
San Diego Medical Services Medical Services $907
Dean Jones Video Expenses Incurred $882
Bird Rock Dental Dental Bills $585
Peterson and Price Legal Fees $500
ADT Security Services Prior Balance $175
Childrens Primary Medical Medical Services $152
UCSD Emergency Physicians Medical Bills $90
JJR Emergency Medical Medical Services $89
JOHN WATSON: Case Summary & 20 Largest Unsecured Creditors
----------------------------------------------------------
Debtor: John D. Watson
aka John Watson
aka John Douglas Watson
4500 West Hinsdale Avenue
Littleton, CO 80128
Bankruptcy Case No.: 07-21077
Type of business: The Debtor owns Havana Plaza Corp., Walden Pond,
L.L.C., Local Service Corp., Clinton Apartments,
L.L.C. and Skyline Estates.
Chapter 11 Petition Date: September 28, 2007
Court: District of Colorado (Denver)
Debtor's Counsel: Kenneth J. Buechler, Esq.
Sender & Wasserman, P.C.
1999 Broadway, Suite 2305
Denver, CO 80202
Tel: (303) 296-1999
Fax: (303) 296-7600
Total Assets: $28,195
Total Debts: $12,170,270
Debtor's 20 Largest Unsecured Creditors:
Entity Claim Amount
------ ------------
U.S. Bank $2,000,000
401 17th Street
Denver, CO 80202
Alpine Bank $2,000,000
4704 Harlan Street
Denver, CO 80212
Cal-Three, L.L.C. $1,875,000
95 Rio Grande Boulevard
Denver, CO 80223
Key Bank $1,544,000
911 Main Street,
Suite 1500
Kansas City, MO 64105
Jay Weinberg $1,000,000
130 Glen Dee Road
Aspen, CO 81611-3308
Everett Borders $907,955
c/o Sawaya, Rose & Kaplan,
P.C.
1600 Ogden
Denver, CO 80218
Marc Debruyne $800,000
431 Maple
Denver, CO 80211
First United Bank $400,000
P.O. Box 130
Durant, OK 74702
United Bank $352,487
c/o The Law Office of
Glen J. McKie, P.C.
801 South Perry Street
Castle Rock, CO 80104
Folks America $270,681
c/o The Law Office of
Christopher B. Dom
501 South Cherry Street,
Suite 610
Denver, CO 80246
Wells Fargo $250,000
P.O. Box 31557
Billings, MT 59107
Chase $140,162
Washington Mutual Home Loans $134,013
Wells Fargo Servicing Center $100,000
Todd Tenge $60,000
Aspen Equestrian Estates $50,000
Xcel Energy $40,000
Bank of America $37,524
Imperial Savings Bank $25,983
American Express $20,000
JP MORGAN: Fitch Rates $6.359MM Class N Certificates at BB-
-----------------------------------------------------------
Fitch rated J.P. Morgan Chase Commercial Mortgage Securities Trust
2007-CIBC20, commercial mortgage pass-through certificates as:
-- $29,042,000 class A-1 'AAA';
-- $105,103,000 class A-2 'AAA';
-- $208,581,000 class A-3 'AAA';
-- $991,709,000 class A-4 'AAA'
-- $84,435,000 class A-SB 'AAA'
-- $361,383,000 class A-1A 'AAA'
-- $2,457,314,000 class X-2 'AAA' (Notional amount and
interest only)
-- $219,322,000 class A-M 'AAA'
-- $35,000,000 class A-MFL 'AAA'
-- $152,593,000 class A-J 'AAA'
-- $2,543,219,456 class X-1 'AAA' (Notional amount and
interest only)
-- $31,790,000 class B 'AA+';
-- $25,433,000 class C 'AA';
-- $28,611,000 class D 'AA-';
-- $22,253,000 class E 'A+';
-- $22,253,000 class F 'A';
-- $25,432,000 class G 'A-';
-- $34,970,000 class H 'BBB+';
-- $31,790,00 class J 'BBB';
-- $28,611,000 class K 'BBB-';
-- $31,790,000 class L 'BB+';
-- $9,537,000 class M 'BB';
-- $6,359,000 class N 'BB-';
-- $19,074,000 class P 'NR';
-- $3,179,000 class Q 'NR';
-- $9,537,000 class T 'NR';
-- $25,432,456 class NR 'NR'.
Classes A-1, A-2, A-3, A-4, A-SB, A-1A, X-2, A-M, A-MFL, and A-J
are offered publicly, while classes X-1, B, C, D, E, F, G, H, J,
K, L, M, and N are privately placed pursuant to rule 144A of the
Securities Act of 1933. The certificates represent beneficial
ownership interest in the trust, primary assets of which are 143
fixed rate loans having an aggregate principal balance of
approximately $2,543,219,457, as of the cutoff date.
JP MORGAN: Fitch Affirms B- Rating on $10 Million Class P Certs.
----------------------------------------------------------------
Fitch Ratings has affirmed JP Morgan Chase commercial mortgage
pass-through certificates series 2005-LDP4 as:
-- $22.9 million class A-1 at 'AAA';
-- $393.8 million class A-1A at 'AAA';
-- $227.3 million class A-2 at 'AAA';
-- $200 million class A-2FL at 'AAA';
-- $179.9 million class A-3A1 at 'AAA';
-- $75 million class A-3A2 at 'AAA';
-- $580.3 million class A-4 at 'AAA';
-- $130.4 million class A-SB at 'AAA';
-- $267.7 million class A-M at 'AAA';
-- $204.1 million class A-J at 'AAA';
-- Interest-only class X-1 at 'AAA';
-- Interest-only class X-2 at 'AAA';
-- $50.2 million class B at 'AA';
-- $23.4 million class C at 'AA-';
-- $46.8 million class D at 'A';
-- $23.4 million class E at 'A-';
-- $40.2 million class F at 'BBB+';
-- $26.8 million class G at 'BBB';
-- $30.1 million class H at 'BBB-';
-- $10 million class J at 'BB+';
-- $13.4 million class K at 'BB';
-- $13.4 million class L at 'BB-';
-- $6.7 million class M at 'B+';
-- $3.3 million class N at 'B'; and
-- $10 million class P at 'B-'.
Fitch does not rate the $33.5 million class NR.
The rating affirmations reflect stable performance and limited
amortization since issuance. As of the September 2007
distribution date, the transaction has paid down 2.4% to
$2.41 billion from $2.68 billion at issuance. There are currently
no delinquent or specially serviced loans.
Fitch reviewed the servicer provided operating statements of the
two credit assessed loans in the transaction: Plastipak Portfolio
(3.6%) and Embassy Suites (1.4%). Based on their stable
performance, Fitch maintains its investment grade credit
assessments for both loans.
Plastipak Portfolio is secured by 14 industrial/warehouse
properties, comprising 4,447,890 square feet and located across
various cities in eight states. The portfolio remains 100% owner-
occupied by Plastipak Packaging, Inc. and Clean Tech, Inc., both
non-investment-grade rated tenants.
Embassy Suites is a full-service, 318-unit hotel located in
Washington, DC. As of June 30, 2007, occupancy was 86.2% up from
81% at YE 2006. As of June 30, 2007 ADR was $237 up from $213 at
year-end 2006 and RevPar was $204.29 up from $172 at YE 2006.
Fitch has identified eight loans (5%) as Fitch loans of concern
for declines in performance and occupancy. Fitch continues to
monitor the performance of the seventh largest loan (2.4%) in the
pool, an office property in Pittsburgh, PA. In August 2005, the
property experienced a water main break that caused approximately
$10 million of property damage. The loan remains current and
repairs have been completed with the exception of the parking
garage repairs which are expected to be completed by December
2007. Additionally, the loan benefits from an experienced
sponsor, the Hertz Group, which manages over 100 properties.
KESSLER HOSPITAL: Court Approves Crammer Bishop as Special Counsel
------------------------------------------------------------------
The Honorable Judith H. Wizmur the United States Bankruptcy Court
for the District of New Jersey gave Willam B. Kessler Memorial
Hospital Inc. permission to employ Crammer Bishop Marczyk &
O'Brien as its special counsel.
As reported in the Troubled Company Reporter on Aug. 24, 2007, as
the Debtor's special counsel, the firm will protect the Debtor's
interest in connection with the Kimball vs. Reid case.
The Debtor told the Court that it agreed to pay $150 per hour to
the firm for this engagement.
Joseph Marczyk, Esq., a member of the firm, assured 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.
KESSLER HOSPITAL: Taps Colmen Group as Chief Restructuring Officer
------------------------------------------------------------------
William B. Kessler Memorial Hospital Inc. asks the United States
Bankruptcy Court for the District of New Jersey for permission to
employ The Colmen Group as its chief restructuring officer.
As the Debtor's chief restructuring officer, Colmen will:
a. obtain continued post-petition financing;
b. oversee all day to day business, financial and management
matters;
c. assist the Debtor in obtaining funding for a plan of
reorganization;
d. assist the Debtor in developing a plan of reorganization;
e. seek out new business relationships for the Debtor; and
f. act as the CRO for the Hospital.
The Debtor will pay $27,000 per month for this engagement. On the
other hand, the firm will reimburse the Debtor $2,000 per month
for services performed.
Peter C. Colella, Jr., a managing director of the firm, assures
the Court that the firm does not hold any interest adverse to the
Debtor's estate and is a "disinterested person" as defined in
Section 101(14) of the Bankruptcy Code.
Mr. Colella can be reached at:
Peter C. Colella, Jr.
Managing Director
The Colmen Group
487 Devon Park Drive, Suite 216
Wayne, PA 19087
Tel: (610) 964-9020
Fax: (610) 964-9024
http://www.colmengroup.com/
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.
KOLORFUSION INT'L: Carver Moquist Raises Going Concern Doubt
------------------------------------------------------------
Carver Moquist & O’Connor, LLC in Minneapolis, Minnesota,
expressed substantial doubt about Kolorfusion International,
Inc.'s ability to continue as a going concern after auditing the
company's consolidated financial statements for the year ended
June 30, 2007. The auditing firm stated that the company has
suffered recurring losses from operations and its total
liabilities exceed its total assets.
The company posted a $472,329 net income on $1,561,776 of total
revenues for the year ended June 30, 2007, as compared with a
$292,378 net loss on $2,086,758 of total revenues in the prior
year.
At June 30, 2007, the company's balance sheet showed $1,007,790 in
total assets and $1,319,415 in total liabilities, resulting a
$311,625 stockholders' deficit. The company had a working capital
deficit of $719,356 at June 30, 2007.
A full-text copy of the company's annual report is available for
free at http://ResearchArchives.com/t/s?23db
About Kolorfusion International
Centennial, Colorado-based Kolorfusion International Inc. --
http://www.kolorfusion.com/-- develops and markets a patented
system for transferring colors and patterns into coatings on
metal, wood, glass, and directly into plastic products.
LAJITAS RESORT: Court Orders Sale of Assets at October 18 Auction
-----------------------------------------------------------------
The Honorable Ronald King of the U.S. Bankruptcy Court for the
Western District of Texas ordered the sale of Lajitas Resort,
Ltd.'s assets at an auction, the Associated Press reports.
The property has been appraised at around $16 million by Brewster
County Appraisal, the report adds.
The auction is set for Oct. 18, 2007 in San Antonia, Texas.
Based in Lajitas, Texas, Lajitas Resort, Ltd. --
http://www.lajitas.com/-- owns and operates a hotel with a
private club and real estate/property division. The company and
three of its affiliates filed for chapter 11 protection on July 2,
2007 (Bankr. W.D Tex. Case Nos. 07-70143 through 07-70146). Kevin
G. Herd, Esq., at Goodrich, Postnikoff, & Albertson, L.L.P.,
represents the Debtors. When the Debtors filed for protection
from their creditors, they listed estimated assets and debts
between $1 million to $100 million.
M/I HOMES: Incurs $42.6 Million Net Loss in Quarter Ended June 30
-----------------------------------------------------------------
M/I Homes Inc. reported a net loss of $42.6 million in the second
quarter ended June 30, 2007, compared to net income of
$18.3 million in last year's second quarter.
Included in the company's 2007 second quarter loss are pre-tax
charges totaling $72.1 million are:
(i) land-related impairment and abandonment charges of
$64.2 million;
(ii) joint venture investment write-offs of $2.7 million; and
(iii) $5.2 million for the write-off of acquisition intangibles.
Excluding the impact of these charges, the company earned
pre-tax income of $6.9 million.
For the quarter ended June 30, 2007, total revenue decreased
$76.1 million compared to the quarter ended June 30, 2006, to
approximately $235.6 million. This decrease is largely
attributable to a decrease of $74.7 million in housing revenue,
from $301.9 million in 2006 to $227.2 million in 2007.
The company reported a net loss of $40.4 million for the first
half of 2007, compared to net income of $34.7 million in the same
period a year ago.
For the six months ended June 30, 2007, total revenue decreased
$110.7 million compared to the first half of 2006, to
$460.1 million. This decrease is largely attributable to a
decrease of $108.7 million in housing revenue, from $549.9 million
in 2006 to $441.1 million in 2007.
The company delivered 755 homes in the second quarter compared to
987 in same period of 2006, down 24%. Homes delivered for the
six-months ended June 30, 2007, decreased 20% to 1,459 from 1,819
in 2006. The company had 161 active communities at June 30, 2007,
compared to 165 at June 30, 2006.
Management's Comments
Robert H. Schottenstein, chief executive officer and president,
commented, "As I mentioned earlier this month in our units
release, we continue to face challenging conditions in most of our
markets. Increasing inventory of new and existing homes, credit
tightening and weakening consumer sentiment have led to further
price competition and margin compression. Notwithstanding these
conditions, our business, excluding impairments and write-offs,
produced gross margins of 22% and net income of approximately
$7 million in the first half of 2007. We also reduced our owned
lot count from 2006's year-end by 9%. We continue to employ a
predominantly defensive operating strategy to manage through this
downturn."
At June 30, 2007, the company's consolidated balance sheet showed
$1.36 billion in total assets, $683.9 million in total
liabilities, and $675.6 million in total stockholders' equity.
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?23cf
About M/I Homes
Headquartered in Columbus, Ohio, M/I Homes Inc. (NYSE: MHO) --
http://www.mihomes.com/-- is a builder of single-family homes.
The company’s homes are marketed and sold under the trade names
M/I Homes and Showcase Homes. The company has homebuilding
operations in Columbus and Cincinnati, Ohio; Chicago, Illinois;
Indianapolis, Indiana; Tampa, Orlando and West Palm Beach,
Florida; Charlotte and Raleigh, North Carolina; Delaware; and the
Virginia and Maryland suburbs of Washington, D.C.
MATRITECH INC: June 30 Balance Sheet Upside-Down by $5.2 Million
----------------------------------------------------------------
Matritech Inc.'s consolidated balance sheet at June 30, 2007,
showed $5.8 million in total assets, $104,312 in preferred stock,
and $10.9 million in total liabilities, resulting in a
$5.2 million total stockholders' deficit.
The company's consolidated balance sheet at June 30, 2007, also
showed strained liquidity with $4.4 million in total current
assets available to pay $10.2 million in total current
liabilities.
The company reported a net loss of $4.6 million for the quarter
ended June 30, 2007, compared to a net loss of $3.6 million for
the same period last year.
Revenue for the second quarter of 2007 was $3.3 million compared
with $2.8 million for the second quarter of 2006, an increase of
17%. Revenue recognized from sales of the NMP22 BladderChek Test
increased 20% during the quarter to $2.7 million compared to
$2.2 million in the second quarter of 2006.
David L. Corbet, Matritech's president and chief operating officer
remarked, "We are pleased with the year-over-year growth in
BladderChek Test sales in both the U.S. and Germany. In Germany
we are able to report another quarter of sales growth in our
gynecology customer base. While in the U.S., occupational health
testing is gathering momentum; we are seeing increasing support
for using the BladderChek Test to screen individuals in
occupations at risk for bladder cancer. We remain optimistic
about the growth of sales of the BladderChek Test and reaffirm our
2007 guidance on total revenues of between $14.5 and
$15.5 million."
Stephen D. Chubb, Matritech's chairman and chief executive officer
noted, "As we commented in our first quarter earnings
announcement, we must secure further financing in order to meet
our ongoing obligations, including possible cash payments on our
outstanding debt. In June and July, most of our note holders
deferred interest and principal payments due, which has been very
helpful to the company. We are actively exploring financing and
strategic alternatives, but our range of financing options is
restricted by our previously issued securities. We hope to be
able to provide clarifying information about this situation in the
near future."
Going Concern Doubt
As reported in the Troubled Company Reporter on April 5, 2007,
PricewaterhouseCoopers LLP raised substantial doubt about
Matritech Inc.'s ability to continue as a going concern citing
recurring losses and negative cash flows from operations after
auditing the company's financial statements as of Dec. 31, 2006,
and 2005. At June 30, 2007, the company had cash and cash
equivalents of $1.7 million and negative working capital of
$5.8 million.
About Matritech Inc.
Headquartered in Newton, Massachusetts, Matritech Inc. (Amex: MZT)
-- http://www.matritech.com/-- is a marketer and developer of
protein-based diagnostic products for the early detection of
cancer. The company uses its patented proteomics technology to
develop diagnostics for the detection of a variety of cancers.
The company's first two products, the NMP22(R) Test Kit and
NMP22(R) BladderChek(R) Test, have been FDA cleared for the
monitoring and diagnosis of bladder cancer. The company has
discovered other proteins associated with cervical, breast,
prostate, and colon cancer.
MERITAGE HOMES: Posts $57 Million Net Loss in Qtr. Ended June 30
----------------------------------------------------------------
Meritage Homes Corp. reported a net loss for the second quarter
2007 of $57 million, compared to net earnings of $77 million in
the second quarter 2006. The results included pre-tax real
estate-related and joint venture impairments of $80 million and
goodwill-related impairments of $28 million in the second quarter
2007.
The 2007 real estate-related charges stemmed from reduced market
valuations of properties in California, Florida, Nevada and
Arizona. Due to persistent and severe weakness in southwest
Florida, all goodwill and other intangible assets relating to a
February 2005 acquisition in Ft. Myers/Naples were impaired and
written off. These charges, after tax effects, combined to reduce
net earnings from homebuilding operations by $70 million.
Excluding these charges, adjusted net earnings for the second
quarter 2007 were $13 million, compared to $82 million in 2006.
Second quarter home closing revenue was $568 million in 2007,
compared to $903 million in 2006. This 37% revenue decline
reflects an 8% reduction in ASP on 32% fewer home closings.
"Weakened demand and increased price incentives have resulted in
lower margins on homes sold and more write-offs on remaining
inventories," said Steven J. Hilton, chairman and chief executive
officer of Meritage. "Based on lower market values, we adjusted
our inventory valuations and abandoned certain lot purchase
options where previously-negotiated prices won't allow us to
generate a reasonable return at today's lower home selling
prices."
Year-to-date Results
Meritage reported a net loss of $41 million for the first six
months of 2007, compared to net earnings of $157 million for the
first six months of 2006. The 2007 results included pre-tax real
estate-related and joint venture impairments of $97 million and
goodwill-related impairments of $28 million, which combined to
reduce net earnings from homebuilding operations by $81 million
after tax.
Year-to-date home closing revenue for 2007 was $1.1 billion,
generated from 3,654 homes closed at an ASP of approximately
$313,000. First half 2006 home closing revenue was $1.7 billion,
generated from 5,250 homes closed at an ASP of approximately
$333,000.
Inventories of unsold homes increased slightly during the quarter,
ending at 1,387 spec homes, compared to 1,365 specs at the
beginning of the year. Total real estate inventories at June 30,
2007 were $1.6 billion, compared to $1.5 billion at year-end 2006,
due to the slight increase in specs from cancellations, and
closings slowing faster than lot purchases.
Meritage's net debt-to-capital ratio was 47% as of June 30, 2007,
compared to 42% at June 30, 2006, reflecting increases in
inventory levels. Total funds available under Meritage's existing
bank credit facility stood at $516 million at June 30, 2007, after
considering the facility's borrowing base availability and most
restrictive covenants.
At June 30, 2007, the company's consolidated balance sheet showed
$2.22 billion in total assets, $1.26 billion in total liabilities,
and $968.9 million in total stockholders' equity.
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?23d0
Summary and Future Outlook
"Market conditions have become more challenging in the last few
months, as interest rates have increased, mortgage credit has
tightened, and buyers continue to wait for signs that we're near
the bottom, especially in markets where affordability was a
relevant concern," commented Mr. Hilton. "Many believe we're
approaching the bottom in terms of housing demand and buyer
confidence, and we at Meritage are working to help buyers get more
comfortable with their purchase decision. We've increased our
sales training and marketing, and improved our customer
satisfaction ratings, while reducing costs and future commitments
in under-performing markets.
"We expect the remainder of 2007 will be difficult, but take
confidence in our sound strategy, strong organization, proven
record of success, and solid franchise that includes some of the
historically best homebuilding markets in the country. We are
emphasizing value, quality and customer satisfaction, and are
determined to maintain a strong balance sheet that will allow us
to emerge a stronger competitor when the market improves."
About Meritage Homes
Headquartered in Scottsdale, Arizona, Meritage Homes Corporation
(NYSE: MTH) -- http://www.meritagehomes.com/-- is a leader in the
consolidating homebuilding industry. Meritage operates in many of
the historically dominant homebuilding markets of the southern and
western United States, including six of the top 10 single-family
housing markets in the country.
* * *
As reported in the Troubled Company Reporter on Aug. 30, 2007,
Fitch Ratings downgraded Meritage Homes Corporation's Issuer
Default Rating to ratings to 'BB-' from 'BB'. Fitch also revised
Meritage's Rating Outlook to Negative from Stable.
MERRILL LYNCH: Fitch Affirms Ratings on 20 Certificate Classes
--------------------------------------------------------------
Merrill Lynch Mortgage Trust, series 2004-KEY2, commercial
mortgage pass-through certificates are affirmed by Fitch Ratings
as:
-- $21.9 million class A-1 at 'AAA';
-- $260.3 million class A-1A at 'AAA';
-- $193.7 million class A-2 at 'AAA';
-- $92.1 million class A-3 at 'AAA';
-- $345.7 million class A-4 at 'AAA';
-- Interest-only class XC at 'AAA'
-- Interest-only class XP at 'AAA';
-- $26.5 million class B at 'AA';
-- $8.4 million class C at 'AA-';
-- $22.3 million class D at 'A';
-- $12.5 million class E at 'A-';
-- $15.3 million class F at 'BBB+';
-- $11.1 million class G at 'BBB';
-- $15.3 million class H at 'BBB-';
-- $7.0 million class J at 'BB+';
-- $5.6 million class K at 'BB';
-- $4.2 million class L at 'BB-';
-- $2.8 million class M at 'B+';
-- $2.8 million class N at 'B';
-- $5.6 million class P at 'B-'.
The class Q and DA certificates are not rated by Fitch.
The rating affirmations reflect the stable performance and minimal
pay down of the transaction since issuance. As of the September
2007 distribution date, the pool's aggregate collateral balance
has been reduced approximately 4.05% to $1.07 billion from $1.11
billion at issuance. There are currently no specially serviced
loans in the transaction.
The Crossroads Center (8.1%) loan maintains its investment grade
credit assessment based on stable performance since issuance. The
loan is secured by a 775,319 square foot regional mall located in
St. Cloud, MN. Major tenants include J.C. Penney, Target, Sears,
Marshall Fields, and Scheel's All Sports. Occupancy as of March
2007 was 97.2%.
MERRILL LYNCH: Fitch Rates $6.9 Million Class G Certs. at BB+
-------------------------------------------------------------
Fitch Ratings took various rating actions on Merrill Lynch
Mortgage Investors, Inc.'s commercial mortgage pass-through
certificates, series 1997-C2 as:
-- $700,159 class J downgraded to 'C/DR6' from 'C/DR5'.
-- $12.0 million class H downgraded to 'CCC' from 'B-' and
assigns a Distressed Recovery rating of 'DR2';
-- $31.1 million class D affirmed at 'AAA';
-- Intzerest-only class IO affirmed at 'AAA';
-- $37.7 million class F affirmed at 'BBB+';
-- $6.9 million class G affirmed at 'BB+'.
Classes A-1, A-2, B and C have been paid in full. The
$12 million class E is not rated by Fitch.
The lowering of the distressed recovery rating to Class J and the
downgrade and assignment of a distressed recovery rating to class
H is a result of potential losses from the transaction's specially
serviced loan. The affirmations of the senior classes reflect
increased paydown and amortization, offsetting the increasing
concentrations and the adverse selection in the pool. As of the
September 2007 distribution date, the pool's aggregate principal
balance has been reduced 85.4% to $100.4 million from $686.3
million at issuance.
Currently, one asset (2.1%) is in special servicing. The loan is
secured by a 58,705 square foot retail property in Hickory, NC and
is 30 days delinquent. The loan transferred to the special
servicer in June 2004 due to monetary default. Fitch projected
losses on this specially serviced asset are expected to be
absorbed by classes H and J.
Five loans (10.9%) have been identified as Fitch loans of concern
due to declines in occupancy and performance. The largest loan of
concern (3.4%) is secured by a retail property in Lima, OH and is
current.
METAVANTE CORP: Moody's Places Corporate Family Rating at Ba2
-------------------------------------------------------------
Moody's Investors Service assigned to Metavante Corporation a Ba2
Corporate Family Rating and a Ba2 rating to its senior secured
credit facilities in connection with to its proposed spin off from
Marshall & Ilsley Corporation. At the same time, Moody's assigned
the company a speculative grade liquidity rating of SGL-2. The
rating outlook is stable. The ratings are subject to Moody's
review of final documentation upon the closing of the transaction.
As a sponsored spin-off from M&I, Metavante will become an
independent, publicly-traded company, 25% owned by Warburg Pincus
($625 million common equity investment) and 75% owned by current
M&I shareholders. The $1.75 billion Term Loan B will finance a
$1.67 billion dividend to M&I in connection with the transaction
and refinance existing debt. The transaction is expected to close
by December 2007.
The Ba2 corporate family rating is constrained by ongoing
consolidation in the bank processing services industry and banking
industry overall, the company's proclivity for acquisition
spending, its banking client concentration, and significant
financial leverage. The rating is supported by the company's
recurring transaction-fee-based revenues, the high switching costs
associated with its banking software, and the favorable outlook
for electronic payments industry growth.
The SGL-2 liquidity rating reflects the company's plan to have in
place a $250 million revolving credit facility (undrawn at close).
The credit facilities contain a debt to EBITDA financial
maintenance covenant, which Moody's expects the company to
maintain compliance for at least the next twelve months. Cash
balances are expected to total at least $170 million at the end of
the year.
The $250 million revolver and $1.75 billion term loan B are
secured on a first lien basis by substantially all stock and
assets of the company and its subsidiaries. The ratings for the
secured credit facility reflect both the overall probability of
default of the company, to which Moody's assigns a probability of
default rating of Ba3, and a loss given default of LGD 3.
The stable rating outlook reflects Moody's expectation that the
company will achieve steady organic revenue growth (in the mid
single digits) and continued profitable growth. Additional
financial leverage or a decline in profitability, such that debt
to EBITDA would increase to over 4x on a sustained basis, would
put downward pressure on the ratings. The ratings could be
upgraded if Metavante's ratio of debt to EBITDA was sustained at
less than 3x.
These ratings are assigned:
-- Corporate Family Rating -- Ba2
-- Probability of Default -- Ba3
-- $250 million senior secured revolving credit facility
(expires 2013) -- Ba2, LGD 3 (34%)
-- $1.75 billion senior secured Term Loan B (due 2014) --
Ba2, LGD 3 (34%)
Headquartered in Milwaukee, Wisconsin, Metavante Corporation is
one of the leading U.S. providers of bank processing services,
including electronic payments.
METAVANTE CORP: Stable Revenue Cues S&P's BB Credit Rating
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' corporate
credit rating to Milwaukee, Wisconsin-based Metavante Corp. The
outlook is stable.
At the same time, Standard & Poor's assigned its bank loan and
recovery ratings to Metavante's $2 billion senior secured credit
facilities, comprising a $250 million revolving credit facility
maturing in 2013 and a $1.75 billion term loan maturing in 2014.
The facilities are rated 'BB', with a recovery rating of '3',
indicating the expectation for meaningful (50%-70%) recovery in
the event of a payment default.
As part of its spin-off from 'A' rated parent Marshall & Ilsley
Corp., Metavante will use the bank loan proceeds to re-finance
existing debt and pay a special dividend to Marshall & Ilsley
Corp. shareholders.
"The ratings on Metavante reflect its stable recurring revenue
base and good free cash flow generation, offset by a moderately
aggressive capital structure," said Standard & Poor's credit
analyst Phil Schrank.
With revenues exceeding $1.5 billion, Metavante's operations can
be divided into two categories: banking solutions and payment
solutions.
Recent operating performance has been good, and EBITDA margins are
expected to remain in the high-20% area as cost productivity and
volume leverage offset price declines and mix shifts. However,
Metavante has been particularly acquisitive in the past three
years, closing about 17 deals for $1.6 billion. Further growth
opportunities include international markets that are expected to
grow more rapidly than the U.S. markets. S&P expect Metavante to
manage debt leverage at less than the initial 4x pro forma debt to
EBITDA area. Capital expenditures and R&D are moderate at about
$135 million per year, but could increase over the near term as
the company develops its next generation banking platform.
MISSION POSSIBLE: Voluntary Chapter 11 Case Summary
---------------------------------------------------
Debtor: Mission Possible Ministries, Inc.
621 Ridge Drive
Naples, FL 34108
Bankruptcy Case No.: 07-09075
Type of Business: The Debtor is a religious organization.
Chapter 11 Petition Date: September 28, 2007
Court: Middle District of Florida (Fort Myers)
Debtor's Counsel: Jonathan Tolentino, Esq.
Jonathan Tolentino, P.A.
501 Goodlette Road, Suite D-100
Naples, FL 34102
Tel: (239) 793-7788
Debtor's financial condition as of September 28, 2007:
Total Assets: $4,300,000
Total Debts: $3,600,000
The Debtor does not have any creditors who are not insiders.
MYLAN LABS: Extends 5.75% and 6.375% Notes Offerings to October 2
-----------------------------------------------------------------
Mylan Laboratories Inc. has extended the expiration time of each
of its cash tender offers and consent solicitations to 10:00 a.m.,
New York City time, today, Oct. 2, 2007, unless Mylan chooses to
again extend or to terminate any tender offer as provided in the
Offer to Purchase, for its 5.750% Senior Notes due 2010 (CUSIP No.
628530AE7) and 6.375% Senior Notes due 2015 (CUSIP Nos. 628530AF4,
628530AC1).
The offers were made pursuant to the terms and subject to the
conditions described in the Offer to Purchase and Consent
Solicitation Statement and related Letter of Instructions dated
Aug. 31, 2007.
Mylan is making the tender offers in connection with the
consummation of its proposed acquisition of Merck's generic
pharmaceutical business pursuant to a Share Purchase Agreement,
dated May 12, 2007, between Mylan and Merck Generics Holding GmbH,
Merck S.A., Merck Internationale Beteiligung GmbH and Merck KGaA,
and certain financing arrangements being entered into to fund such
acquisition.
The extensions were made because the closing of the Transaction,
which is a condition to the tender offers, is now expected today,
Oct. 2, 2007.
As of 5:00 p.m., New York City time, on Sept. 27, 2007, Mylan had
received tenders of Notes and deliveries of related consents for:
-- approximately $147.5 million in aggregate principal
amount of the 2010 Notes, representing 98.31% of the
outstanding 2010 Notes; and
-- $349.8 million in aggregate principal amount of the 2015
Notes, representing 99.94% of the outstanding 2015 Notes.
Notes tendered may not be withdrawn, and consents given may not be
revoked, unless the applicable tender offer is terminated without
any Notes being purchased.
Mylan's obligation to accept, and pay for, Notes of a series
validly tendered pursuant to a tender offer is conditioned upon
the satisfaction or waiver of various conditions, including
consummation of the Transaction and certain general conditions
described in the Offer to Purchase.
The complete terms and conditions of the tender offers and consent
solicitations are described in the Offer to Purchase, copies of
which may be obtained by contacting Global Bondholder Services
Corporation, the information agent for the tender offers and
consent solicitations, at (866) 804-2200 (toll-free).
Questions regarding the tender offers and consent solicitations
may be directed to the Dealer Managers and Solicitation Agents for
the tender offers and consent solicitations, Merrill Lynch,
Pierce, Fenner & Smith Incorporated, which may be contacted at
(212) 449-4914 (collect) or (888) 654- 8637 (toll-free), and
Citigroup Global Markets Inc., which may be contacted at (212)
723-6106 (collect) or (800) 558-3745 (toll-free).
About Mylan Laboratories Inc.
Headquartered in Canonsburg, Pennsylvania, Mylan Laboratories Inc.
(NYSE:MYL) -- http://www.mylan.com/-- is engaged in developing,
licensing, manufacturing, marketing and distributing generic,
brand and branded generic pharmaceutical products. The company
obtains new generic products primarily through internal product
development. In addition, it licenses or co-develops products
through arrangements with other companies. New generic product
approvals are obtained from the United States Food and Drug
Administration through the Abbreviated New Drug Application
process, which requires the company to demonstrate bioequivalence
to a reference brand product. As of March 31, 2007, Mylan
operated through two segments: Mylan Segment and the Matrix
Segment.
* * *
Moody's Investor Services placed Mylan Laboratories Inc.'s
probability of default and long term corporate family ratings at
"Ba1" in May 2007, which still holds to date.
NASDAQ STOCK: Repayment Cues Moody's to Withdraw Ratings
--------------------------------------------------------
Moody's Investors Service withdrew its ratings on The Nasdaq Stock
Market Inc.'s $750 million Six Year Senior Secured Term Loan,
$335 million Six Year Senior Secured Term, and the Five Year
$75 million Senior Secured Revolving Credit Facility. The credit
facilities have been repaid and terminated.
On Sept. 20, Moody's placed the Ba3 corporate family rating of
NASDAQ on review for upgrade based on the company's agreement to
sell a major portion of its common stock investment in the London
Stock Exchange to Borse Dubai and reduce debt, as well as the
potential business combinations between Borse Dubai, OMX AB and
NASDAQ. The entire LSE stake has now been sold and the proceeds
were used to fully repay the bank debt.
NASDAQ's Ba3 corporate family rating remains on review for a
possible upgrade initiated on September 20. As Moody's said then,
the review will examine the long-term strategic opportunities and
execution risks presented by the combination of the NASDAQ and OMX
franchises. Additionally, Moody's will consider NASDAQ's credit
metrics, financial policy and appetite for leverage in the future.
Finally, Moody's will assess the implications of Borse Dubai's
significant ownership stakes in both NASDAQ and the London Stock
Exchange should all components of the proposed series of
transactions be completed. Given the complexity and uncertainty
of closing this series of transactions, Moody's expects a ratings
review period of roughly six months.
These ratings were withdrawn:
-- $750 million Six Year Senior Term Loan B Facility at Ba3
-- $335 million Six Year Term Loan C Facility at Ba3
-- $75 million Five Year Revolving Credit Facility at Ba3
The Ba3 Corporate Family Rating remains on review for upgrade.
NASDAQ Stock Market Inc. operates a leading US stock exchange and
reported earnings of $74.4 million for the six months ending June
30, 2007.
NEUROBIOLOGICAL TECH: Receives Nasdaq Non-Compliance Notice
-----------------------------------------------------------
Neurobiological Technologies Inc. received a staff determination
letter on Sept. 28, 2007, from the Listing Qualifications
Department of The NASDAQ Stock Market indicating that the company
fails to comply with the market value of listed securities
requirement for continued listing on the NASDAQ Capital Market, as
set forth in NASDAQ Marketplace Rule 4310(c)(3)(B) and therefore
that its securities are subject to potential delisting from the
NASDAQ Capital Market.
The company has requested a hearing to appeal the Staff
Determination. Delisting actions have been stayed pending the
completion of the appeal, which is expected to be heard in 3 to 6
weeks.
There can be no assurance that the hearing panel will grant the
company's request for continued listing.
The company anticipates that it will regain compliance with this
listing requirement if it is able to complete its planned public
offering of up to $65 million of common stock, pursuant to a
registration statement on Form S-1 filed with the SEC on Aug. 13,
2007. This offering is expected to close in October 2007.
About Neurobiological Technologies Inc.
Headquartered in Emeryville, California, Neurobiological
Technologies Inc. (NASDAQ:NTIID) -- http://www.ntii.com-- is a
biotechnology company engaged in the business of acquiring and
developing central nervous system-related drug candidates. The
company is focused on therapies for neurological conditions that
occur in connection with ischemic stroke, brain cancer,
Alzheimer's disease and dementia. NTI has one product candidate
in clinical development, Viprinex. It is developing Viprinex for
the treatment of acute ischemic stroke.
At June 30, 2007, the company's balance sheet showed total assets
of $10,921,087 and total liabilities of $33,014,125, resulting to
a shareholders' deficit of $22,093,038.
Going Concern Doubt
Odenberg Ullakko Muranishi & Co. LLP in San Francisco, California,
raised substantial doubt about Neurobiological Technologies Inc.'s
ability to continue as a going concern, after auditing the
company's financilas statements for periods ending June 30, 2007,
and 2006. The auditors pointed to the company's recurring
operating losses, negative cash flows from operations, negative
working capital position and stockholders' deficit.
NETBANK INC: Eaula Adams Resigns as Director
--------------------------------------------
Eula L. Adams resigned as a member of the Board of Directors of
NetBank Inc. on Sept. 28, 2007. Mr. Adams’ resignation was not
due to any disagreement with the company. Mr. Adams also resigned
as a member of the Audit Committee and Corporate Governance
Committee of the Board effective Sept. 28, 2007.
In addition, the Board appointed Lee N. Katz to serve as Chief
Restructuring Officer of the company, effective upon the filing of
the Chapter 11 petition with the U.S. Bankruptcy Court for the
Middle District of Florida on Sept. 28, 2007.
In connection with the appointment of Mr. Katz, the Board approved
and the company entered into a Professional Services Agreement
dated Sept. 18, 2007, as supplemented by Schedule 1 dated Sept.
25, 2007, with GGG, Inc., pursuant to which GGG has agreed to
provide consulting, advisory and financial services to the
company. Mr. Katz is the Managing Partner of Grisanti, Galef &
Goldress, an affiliate of GGG.
Under the Services Agreement, the company agreed to pay GGG a fee
of $395 per hour for the services of Mr. Katz as Chief
Restructuring Officer. The company also agreed to provide a
retainer to GGG and to pay a fee of $295 per hour for the services
of additional GGG professionals, plus reasonable out-of pocket
expenses. Mr. Katz will not receive any compensation from the
Company directly and will be independently compensated pursuant to
his arrangements with GGG and Grisanti, Galef & Goldress. The
Board has the option of terminating the Services Agreement at any
time.
Mr. Katz, age 58, joined Grisanti, Galef & Goldress, in 1986,
where he has served as Managing Partner since 1997. Mr. Katz has
over 20 years of corporate restructuring and consulting experience
in a broad range of industries and has served as interim chief
executive officer or restructuring officer for both public and
private companies, including serving as the chief executive
officer of Verilink Corporation from April 2006 to February 2007.
Headquartered in Jacksonville, Florida, NetBank Inc. --
http://www.netbank.com/-- is a financial holding company of
Netbank, the nation’s oldest Internet bank serving retail and
business customers in all 50 states. NetBank Inc. does retail
banking, mortgage banking, business finance, and providing ATM and
merchant processing services.
The company filed for Chapter 11 protection on Sept. 28, 2007
(Bankr. M.D. Fla. Case No. 07-04295). Alan M. Weiss, Esq., at
Holland & Knight LLP, represents the Debtor. GGG, Inc., in
Atlanta, Georgia, serves as the Debtor's restructuring manager.
The Debtor's financial condition as of Sept. 25, 2007 shows total
assets of $87,213,942, and total debts of $42,245,857.
NETBANK INC: FDIC to Sell $420 Million Division
-----------------------------------------------
The Federal Deposit Insurance Corporation discloses that NetBank
Business Finance, NetBank Inc.'s $420 million division, is up for
sale and will be offered in two mutually exclusive pools.
A prospective buyer may purchase:
1) all assets and specifically identified liabilities of
NBF; or
2) the commercial loan and lease portfolio approximating
10,900 assets with the gross book value of $510 million,
unearned discounts of $90 million and lease residuals of
$2 million.
Brief Description of Loan Sale Pools
* Net Assets –- All assets and specifically identified
liabilities of NBF (e.g. cash; leases; commercial loans;
FF&E; prepaid and other assets; security deposits,
accounts payable – equipment, property and sales taxes).
* Commercial loans and Leases Only -- 53% of this
$420 million portfolio are secured commercial loans, while
27% are "$1 out" leases and 17% are unsecured loans.
Loan file and asset review will be conducted between the hours of
7:30 a.m. and 6:00 p.m. EDT Monday through Sunday beginning
Wednesday, Oct. 3, 2007.
Prospective buyers are encouraged to schedule due diligence as
soon as possible with FDIC Representatives Bill Rothamel at
(972)761-2933 or Rosa Ruiz at (972)761-8229.
Headquartered in Jacksonville, Florida, NetBank Inc. --
http://www.netbank.com/-- is a financial holding company of
Netbank, the nation’s oldest Internet bank serving retail and
business customers in all 50 states. NetBank Inc. does retail
banking, mortgage banking, business finance, and providing ATM and
merchant processing services.
The company filed for Chapter 11 protection on Sept. 28, 2007
(Bankr. M.D. Fla. Case No. 07-04295). Alan M. Weiss, Esq., at
Holland & Knight LLP, represents the Debtor. GGG, Inc., in
Atlanta, Georgia, serves as the Debtor's restructuring manager.
The Debtor's financial condition as of Sept. 25, 2007 shows total
assets of $87,213,942, and total debts of $42,245,857.
NEW CENTURY: Board Members Gotschall, Cole and Zona Resign
----------------------------------------------------------
New Century Financial Corp. said in a regulatory filing with the
U.S. Securities and Exchange Commission that Edward F. Gotschall,
one of the company’s Class I directors, and Robert K. Cole, one of
the company's Class III directors, resigned from the company’s
Board of Directors on Sept. 25, 2007.
In addition, on Sept. 24, 2007, Richard A. Zona, one of the Class
I directors of New Century Financial Corporation, resigned from
the company’s Board of Directors.
Founded in 1995, Irvine, California-based New Century Financial
Corporation (NYSE: NEW) -- http://www.ncen.com/-- is a real
estate investment trust, providing mortgage products to borrowers
nationwide through its operating subsidiaries, New Century
Mortgage Corporation and Home123 Corporation. The company offers
a broad range of mortgage products designed to meet the needs of
all borrowers.
The company and its debtor-affiliates filed for Chapter 11
protection on April 2, 2007 (Bankr. D. Del. Lead Case No.
07-10416). Suzzanne Uhland, Esq., Austin K. Barron, Esq., and Ana
Acevedo, Esq., at O'Melveny & Myers LLP, and Mark D. Collins,
Esq., Michael J. Merchant, Esq., and Jason M. Madron, Esq., at
Richards, Layton & Finger, P.A., represent the Debtors. The
Official Committee of Unsecured Creditors selected Hahn & Hessen
as its bankruptcy counsel and Blank Rome LLP as its co-counsel.
When the Debtors filed for bankruptcy, they listed total assets of
$36,276,815 and total debts of $102,503,950. The Debtors'
exclusive period to file a plan expires on Nov. 28, 2007.
PACIFIC LUMBER: Files Chapter 11 Plan of Reorganization
-------------------------------------------------------
The Pacific Lumber Company and its subsidiaries, including Scotia
Pacific Company LLC, together with MAXXAM Inc. as co-proponent,
filed on Sept. 30, 2007, a plan of reorganization and disclosure
statement in the U.S. Bankruptcy Court for the Southern District
of Texas, Corpus Christi Division.
The plan, which is subject to the bankruptcy process, including
approval by the Bankruptcy Court, provides for the continued
operations of Pacific Lumber and Scopac as a consolidated company
and the full repayment of all secured and unsecured creditors.
The plan also details a project designed to unlock significant
value from certain portions of Palco's timberlands, while
preserving approximately 6,600 acres of ancient redwood forest for
future generations. Further, the plan affirms the environmental
commitments that arose out of the historic Headwaters Agreement
with the state and federal governments.
>From an operational perspective, the plan contemplates a new
business model for continued operation of the Scotia sawmill and
continued forest operations but at harvest levels that are
significantly lower than current or historical rates. It also
contemplates the sale of Scopac's ancient redwood groves to a
buyer or buyers willing to commit to the permanent environmental
protection of these scarce and valuable old-growth redwood trees.
The plan moreover provides for the creation of a new low density
conservation and preservation oriented real estate development
project under which significant acreage adjoining the old growth
redwood groves would be developed and sold.
A key feature of the plan is the consolidation of Pacific Lumber,
Scopac and other subsidiaries. While the plan envisions a
meaningful reduction in historical harvest rates, the new
operating paradigm and asset sales will provide sufficient cash
flow to meet the current and projected future debt obligations of
the reorganized entity.
To demonstrate its commitment to the success of the reorganized
Pacific Lumber, MAXXAM will make the following important economic
contributions —- valued at more than $150 million -— to the
Debtors:
* Providing its real estate expertise to assist Palco in
"unlocking" the value of the old growth redwood groves and
the adjacent conservation and preservation oriented real
estate development;
* Contributing $25 million toward a fund that will allow
existing note holders to cash out a portion of their
notes.
* Forgiving $40 million of intercompany debt.
* Contributing important tax benefits to Palco with a
projected present value of approximately $85 million.
"This plan saves a 140 year old company and creates a viable
forest products enterprise that can provide excellent long term
jobs and it does so by putting some of the company's most unique
and valuable property to a higher and better use than commercial
forestry" George O'Brien, President and CEO of Pacific Lumber and
Scopac, stated. "The most environmentally sensitive areas will
become permanent preserves, and the adjoining acreage will be
developed as residential and recreational property under strict
environmental guidelines. The effect of this project will be to
preserve the old growth redwood groves, while at the same time
significantly expanding the amount of land dedicated to
conservation and preservation in Humboldt County."
"This is a comprehensive plan to put the company on its feet as a
sustainable operation, fully meet our obligations, and honor the
environmental leadership of Pacific Lumber in protecting old
growth redwoods." Mr. O’Brien said. "I also want to recognize the
leadership shown by MAXXAM in standing alongside us as a co-
proponent of the plan and as a significant economic contributor
which underscores not only the viability of the plan but the
confidence MAXXAM has in our future."
About Pacific Lumber
Headquartered in Oakland, California, The Pacific Lumber Company
-- http://www.palco.com/-- and its subsidiaries operate in
several principal areas of the forest products industry, including
the growing and harvesting of redwood and Douglas-fir timber, the
milling of logs into lumber and the manufacture of lumber into a
variety of finished products.
Scotia Pacific Company LLC, Scotia Development LLC, Britt Lumber
Co., Inc., Salmon Creek LLC and Scotia Inn Inc. are wholly owned
subsidiaries of Pacific Lumber.
Scotia Pacific, Pacific Lumber's largest operating subsidiary, was
established in 1993, in conjunction with a securitization
transaction pursuant to which the vast majority of Pacific
Lumber's timberlands were transferred to Scotia Pacific, and
Scotia Pacific issued Timber Collateralized Notes secured by
substantially all of Scotia Pacific's assets, including the
timberlands.
Pacific Lumber, Scotia Pacific, and four other subsidiaries filed
for chapter 11 protection on Jan. 18, 2007 (Bankr. S.D. Tex. Case
Nos. 07-20027 through 07-20032). Jack L. Kinzie, Esq., at Baker
Botts LLP, is Pacific Lumber's lead counsel. Nathaniel Peter
Holzer, Esq., Harlin C. Womble, Jr., Esq., and Shelby A. Jordan,
Esq., at Jordan Hyden Womble Culbreth & Holzer PC, is Pacific
Lumber's co-counsel. Kathryn A. Coleman, Esq., and Eric J.
Fromme, Esq., at Gibson, Dunn & Crutcher LLP, acts as Scotia
Pacific's lead counsel. John F. Higgins, Esq., and James Matthew
Vaughn, Esq., at Porter & Hedges LLP, is Scotia Pacific's co-
counsel. John D. Fiero, Esq., at Pachulski Stang Ziehl & Jones
LLP, represents the Official Committee of Unsecured Creditors.
When Pacific Lumber filed for protection from its creditors, it
listed estimated assets and debts of more than $100 million.
Scotia Pacific listed total assets of $932,000,000 and total debts
of $765,978,335. The Debtors' exclusive period to file a chapter
11 plan expired on Sept. 30, 2007.
PACIFIC LUMBER: BoNY Wants Adequate Protection on Collateral
------------------------------------------------------------
The Bank of New York Trust Company, N.A., as Indenture Trustee for
the Timber Notes, asks the Hon. Richard Schmidt of the U.S.
Bankruptcy Court for the Southern District of Texas to require
Scotia Pacific Company LLC to provide adequate protection of
collateral.
Zack Clement, Esq., at Fulbright & Jaworski L.L.P., in Houston,
Texas, asserts that the new business set-up between Scopac and
The Pacific Lumber Company, where Scopac will be obligated to pay
for harvesting and log storing costs, has imposed significant new
risks on the collateral securing the Indenture Trustee's claim.
According to Mr. Clement, the Debtors' new business method will:
-- take approximately $6,000,000 of Scopac's cash by the end
of August 2007;
-- drain away all but approximately $300,000 of Scopac's cash
by the end of November 2007;
-- require Scopac and the Indenture Trustee to assume the risk
of maintaining an inventory of cut timber at a newly
created "Scopac Log Deck;" and
-- prevent Scopac from selling the logs to anyone other than
PALCO, which, by its own budget filed with the Court, will
run out of borrowing availability in mid October.
The Indenture Trustee maintains that it needs the detailed
industry standard terms contained in an Adequate Log Purchase
Agreement to deal with the very significant risk presented by the
Debtors' new business set-up, whereby Scopac's logs are now being
held on PALCO's property with no contractual provisions to protect
their physical security.
Mr. Clement adds that these risks are exacerbated by the fact that
the Indenture Trustee is likely to be undersecured, and that the
Debtors are seeking to extend exclusivity to pursue confirmation
of a plan of reorganization based on high values allegedly
providing equity value from Scopac to PALCO.
To deal with these risks, the Indenture Trustee seeks that in
addition to an Adequate Log Purchase Agreement, the Court orders
two additional forms of adequate protection:
1. That any Scopac free cash flow will be paid to the
Indenture Trustee, exclusive of those amounts already
agreed to be paid in the Existing Cash Collateral Order.
2. That the Court rule that the period of time the Indenture
Trustee is required to endure the risks of the Debtors' New
Business Method before a fair and equitable plan of
reorganization is concluded will be as short as reasonably
possible -- a Prompt Equitable Plan.
The Indenture Trustee reminds the Court that it has proposed a
Prompt Equitable Plan. It is confirmable and it provides a
vehicle to make agreements with other creditors in keeping with
the absolute priority rule, Mr. Clement avers.
A full-text copy of the Term Sheet for the Indenture Trustee's
Plan is available for free at http://ResearchArchives.com/t/s?234b
The Indenture Trustee asks the Court to permit it to file its plan
promptly.
Moreover, the Indenture Trustee stands by its offer made in Court
to have its plan considered side by side with the Debtors' plan.
Under this approach, if the Debtors' plan is not confirmed in
February 2008 and the Indenture Trustee's Plan is confirmed, it
will be possible to move promptly with a Section 363 sale of the
Debtors' assets by April 2008, Mr. Clement relates.
Delaying the Plan Confirmation will involve unnecessary expenses
on the parties involved, whereas the Indenture Trustee's simple
Plan could be confirmed this year, with a Disclosure Statement
hearing in early November 2007 and confirmation hearing in early
December, Mr. Clement emphasizes.
Finally, the Indenture Trustee tells the Court that it agrees to
an extension of the Debtors' exclusivity until March 30, 2008 if:
(a) Scopac proposes a plan that can test its high value in the
capital markets; and
(b) permit a Section 363 sale in April 2008 if it is not able
to raise sufficient capital in keeping with its high
valuations.
About Pacific Lumber
Headquartered in Oakland, California, The Pacific Lumber Company
-- http://www.palco.com/-- and its subsidiaries operate in
several principal areas of the forest products industry,
including the growing and harvesting of redwood and Douglas-fir
timber, the milling of logs into lumber and the manufacture of
lumber into a variety of finished products.
Scotia Pacific Company LLC, Scotia Development LLC, Britt Lumber
Co., Inc., Salmon Creek LLC and Scotia Inn Inc. are wholly owned
subsidiaries of Pacific Lumber.
Scotia Pacific, Pacific Lumber's largest operating subsidiary, was
established in 1993, in conjunction with a securitization
transaction pursuant to which the vast majority of Pacific
Lumber's timberlands were transferred to Scotia Pacific, and
Scotia Pacific issued Timber Collateralized Notes secured by
substantially all of Scotia Pacific's assets, including the
timberlands.
Pacific Lumber, Scotia Pacific, and four other subsidiaries filed
for chapter 11 protection on Jan. 18, 2007 (Bankr. S.D. Tex. Case
Nos. 07-20027 through 07-20032). Jack L. Kinzie, Esq., at Baker
Botts LLP, is Pacific Lumber's lead counsel. Nathaniel Peter
Holzer, Esq., Harlin C. Womble, Jr., Esq., and Shelby A. Jordan,
Esq., at Jordan Hyden Womble Culbreth & Holzer PC, is Pacific
Lumber's co-counsel. Kathryn A. Coleman, Esq., and Eric J.
Fromme, Esq., at Gibson, Dunn & Crutcher LLP, acts as Scotia
Pacific's lead counsel. John F. Higgins, Esq., and James Matthew
Vaughn, Esq., at Porter & Hedges LLP, is Scotia Pacific's co-
counsel. John D. Fiero, Esq., at Pachulski Stang Ziehl & Jones
LLP, represents the Official Committee of Unsecured Creditors.
When Pacific Lumber filed for protection from its creditors, it
listed estimated assets and debts of more than $100 million.
Scotia Pacific listed total assets of $932,000,000 and total debts
of $765,978,335. (Scotia/Pacific Lumber Bankruptcy News, Issue
No. 28, http://bankrupt.com/newsstand/or 215/945-7000).
PACIFIC LUMBER: BoNY Opposes Scopac's Log Purchase Agreement
------------------------------------------------------------
Zack A. Clement, Esq., at Fulbright & Jaworski L.L.P., in
Houston, Texas, reiterates that at the August 31 hearing, the U.S.
Bankruptcy Court for the Southern District of Texas directed
Scotia Pacific Company LLC to enter into an industry standard
agreement with The Pacific Lumber Company that would require PALCO
to:
(i) purchase Scopac's logs with increasing rates of purchase
through May 2008, and
(ii) satisfy its monthly log purchase obligations.
If PALCO couldn't meet its obligations, it may arrange for third
parties to purchase the Scopac logs.
Mr. Clement argues that Scopac failed to carry out the Court's
ruling by delivering to the Court on September 12, a one-page
non-industry standard letter agreement that obligates to purchase
logs from Scopac through November 2007.
Scopac's Inadequate Letter Agreement does not provide assurance
that Scopac's log deck and inventory will be reduced over time as
required by the Court, Mr. Clement maintains. Rather, the
Debtors have done the exact thing the Court warned against--
Scopac's survival is now entirely tied to and contingent on
PALCO's performance and survival beyond November 2007, Mr.
Clement says.
Thus, The Bank of New York Trust Company, N.A, as Indenture
Trustee for the Timber Notes, asks Judge Schmidt to:
(a) require Scopac and PALCO to enter into an Adequate Log
Purchase Agreement; or
(b) in the alternative, approve its proposed Supplemental Log
Purchase Agreement, as submitted to the Court on Sept. 11.
Mr. Clement asserts that the BoNY Supplement Log Purchase
Agreement conforms to industry standards, and safeguards Scopac's
inventory and the Indenture Trustee's collateral.
Court Direct Parties to Submit Proposed Orders
At a September 20, 2007 telephonic hearing, the Court directed
the Debtors and the Indenture Trustee to negotiate the form of a
final order for the continued use of Scopac's cash collateral or,
if no agreement could be reached, to submit their own forms of
order.
The Indenture Trustee filed its own proposed order to the Court
on September 21, emphasizing (i) the change in the business
relationship between Scopac and PALCO, and (ii) the
implementation of the BoNY Supplemental Log Purchase Agreement.
The Debtors circulated a stipulation and agreed order on
September 24, providing that if PALCO is unable to accept
delivery of logs from Scopac, Scopac is permitted to sell those
logs to third parties despite any contractual provisions to the
contrary.
Debtors Object to BoNY's Log Purchase Pact
The Debtors maintain that their counsel orally agreed to the
Court's directive at the August 31 hearing that if PALCO is
unable to meet its obligation to purchase logs from Scopac,
Scopac is free to sell those logs to third parties; and
thereafter entered into a written agreement containing those
provisions.
The Indenture Trustee, on the other hand, Shelby A. Jordan, Esq.,
at Jordan, Hyden, Womble Culbreth & Holzer, P.C., in Corpus
Christi, Texas, notes, has asked the Court to enter an order that
would:
(a) require Scopac to install new signage at the Debtors'
Scotia, California facilities;
(b) impose strict new measures governing Scopac's storage of
logs in the Scopac log deck;
(c) hire additional personnel to scale the logs on the
timelines the Indenture Trustee desires; and
(d) grant the Indenture Trustee the right to inspect Scopac's
facilities at 24 hours' notice.
The Indenture Trustee seems to seek an order that would grant it
new substantive rights to meddle in Scopac's business operations,
Mr. Jordan contends.
Mr. Jordan points out that prohibition of the selling of logs to
third party is a provision in the Agreement between Scopac and
the Indenture Trustee, not between Scopac and PALCO. Thus, the
Indenture Trustee is complaining about a restriction that by
itself has the power to waive.
Mr. Jordan relates that Marathon Structured Finance Fund L.P.
consents to the Debtors' stipulated Log Purchase Agreement and
Bank of America is currently considering the proposed order.
The Official Committee of Unsecured Creditors has not responded
to the Debtors' request for comments.
Accordingly, the Debtors asks Judge Schmidt to deny the Indenture
Trustee's proposed Supplemental Log Purchase Agreement, and
instead approve their Stipulation and Agreed Order reflecting the
Court's instructions in the August 31 hearing.
BoNY Talks Back
The Indenture Trustee contends that Scopac's Sept. 24 proposed
order did not incorporate the Court's findings approving the
change in business between Scopac and PALCO. More importantly,
the proposed order did not commit PALCO to buy Scopac timber in
accordance with the projections of the Revised Additional Budget,
Mr. Clement adds.
Mr. Clement argues that Scopac's proposal is unacceptable because
it makes the illusory promise that if Scopac "desires" to sell to
third parties on its own it can do so.
In an attempt to resolve the dispute, the Indenture Trustee made
a counteroffer to resolve its issues with Scopac, according to
Mr. Clement. Pursuant to that offer, if Scopac agree to submit a
form of final order containing the Court's findings from the
August 31 Hearing and that included decretal language directing
Scopac and PALCO to enter into a log purchase agreement,
including provisions providing physical and financial protection
to Scopac and the logs warehousing, then the Indenture Trustee
would agree to that form of order and would agree with the
Debtors to negotiate on the final form of the log purchase
agreement.
Subsequently, in a letter dated September 26 addressed to the
Court, the Debtors ask the Court to hold its ruling with respect
to the Log Purchase Agreement pending the October 2 hearing on
the issue.
The Debtors explain that they would want to cross examine the
Indenture Trustee's witness, a Mr. Kleiner, which supposedly
submitted a 45-page affidavit to the Court on September 25.
About Pacific Lumber
Headquartered in Oakland, California, The Pacific Lumber Company
-- http://www.palco.com/-- and its subsidiaries operate in
several principal areas of the forest products industry,
including the growing and harvesting of redwood and Douglas-fir
timber, the milling of logs into lumber and the manufacture of
lumber into a variety of finished products.
Scotia Pacific Company LLC, Scotia Development LLC, Britt Lumber
Co., Inc., Salmon Creek LLC and Scotia Inn Inc. are wholly owned
subsidiaries of Pacific Lumber.
Scotia Pacific, Pacific Lumber's largest operating subsidiary, was
established in 1993, in conjunction with a securitization
transaction pursuant to which the vast majority of Pacific
Lumber's timberlands were transferred to Scotia Pacific, and
Scotia Pacific issued Timber Collateralized Notes secured by
substantially all of Scotia Pacific's assets, including the
timberlands.
Pacific Lumber, Scotia Pacific, and four other subsidiaries filed
for chapter 11 protection on Jan. 18, 2007 (Bankr. S.D. Tex. Case
Nos. 07-20027 through 07-20032). Jack L. Kinzie, Esq., at Baker
Botts LLP, is Pacific Lumber's lead counsel. Nathaniel Peter
Holzer, Esq., Harlin C. Womble, Jr., Esq., and Shelby A. Jordan,
Esq., at Jordan Hyden Womble Culbreth & Holzer PC, is Pacific
Lumber's co-counsel. Kathryn A. Coleman, Esq., and Eric J.
Fromme, Esq., at Gibson, Dunn & Crutcher LLP, acts as Scotia
Pacific's lead counsel. John F. Higgins, Esq., and James Matthew
Vaughn, Esq., at Porter & Hedges LLP, is Scotia Pacific's co-
counsel. John D. Fiero, Esq., at Pachulski Stang Ziehl & Jones
LLP, represents the Official Committee of Unsecured Creditors.
When Pacific Lumber filed for protection from its creditors, it
listed estimated assets and debts of more than $100 million.
Scotia Pacific listed total assets of $932,000,000 and total debts
of $765,978,335. (Scotia/Pacific Lumber Bankruptcy News, Issue
No. 28, http://bankrupt.com/newsstand/or 215/945-7000).
PACIFICNET INC: Filing of Amended Financials Near Completion
------------------------------------------------------------
PacificNet Inc. disclosed that filing of an amended Annual Reports
on Form 10-K/A with the SEC containing re-audited financial
statements with respect to fiscal years 2004 and 2005 as directed
by the Nasdaq Listing Qualifications Panel is nearing completion.
The company's prior independent public accountants have withdrawn
their audit reports regarding the company's financial statements
for the years 2004 and 2005 resulting in the Nasdaq Listing
Qualification Panel's decision to commence delisting proceedings
with respect to PacificNet's common stock.
The Nasdaq Listing Qualifications Panel had granted, however, the
company's request for continued listing on the Nasdaq Stock
Market, subject to the condition that on or before Sept. 27, 2007,
the company re-file the above years form 10K or face a
determination by the Nasdaq Listing Qualifications Panel whether
or not to grant continued listing.
The majority of the re-audit work is done and the PacificNet and
independent audit teams will work to complete the re-audit
soon as possible.
The Nasdaq Listing and Hearing Review Council notified PacificNet
in August that it has called for a review of the Nasdaq Listing
Qualifications Panel's decision regarding the company and has also
determined to stay the July 2, 2007, decision to suspend the
company's securities from trading pending further action by the
Listing Panel.
The Nasdaq Listing Qualifications Department has until Oct. 19,
2007, to provide the Council with an updated qualifications
summary sheet regarding PacificNet. PacificNet has until October
26 to provide additional information it wants the Listing Counsel
to consider.
The company is unable to predict the duration of the Council's
review or the eventual outcome of the Council's evaluation of the
issues, although it intends to disclose to its shareholders any
further developments in this regard promptly.
About PacificNet Inc.
Headquartered in Beijing, China, PacificNet Inc. (NasdaqGM: PACT)
-- http://www.PacificNet.com/-- is a provider of gaming
technology, e-commerce, and Customer Relationship Management in
China. PacificNet's gaming products are designed for Chinese and
Asian gamers with focus on integrating localized Chinese and Asian
themes and content, advanced graphics, digital sound effects and
popular domestic music, with secondary bonus games and jackpots.
PacificNet's gaming clients include the leading hotels, casinos,
and gaming operators in Macau, Asia, and Europe, while ecommerce
and CRM clients include the leading telecom companies, banks,
insurance, travel, marketing and business services companies and
telecom consumers in Greater China such as China Telecom, China
Mobile, Unicom, PCCW, Hutchison Telecom, Bell24, Motorola, Nokia,
SONY, TCL, Huawei, American Express, Citibank, HSBC, Bank of
China, Bank of East Asia, DBS, TNT, China and Hong Kong
government. PacificNet employs about 1,200 staff in its various
subsidiaries throughout China with offices in Hong Kong, Beijing,
Shanghai, Shenzhen, Guangzhou, Macau and Zhuhai China, USA, and
the Philippines.
Going Concern Doubt
Kabani & Company Inc. in Los Angeles, expressed substantial doubt
about PacificNet Inc.'s ability to continue as a going concern
after auditing the company's consolidated financial statements as
of the year ended Dec. 31, 2006. The auditing firm reported that
during the year ended Dec. 31, 2006, the company incurred net
losses of $20.1 million. In addition, thecCompany had a negative
cash flow in operating activities amounting to $8.9 million in the
year ended Dec. 31, 2006, and the company's accumulated deficit
was $47.7 million as of Dec. 31, 2006. The auditing firm also
reported that the company is in default on its convertible
debenture obligation.
In July 2007, the company failed to timely make scheduled
principal payments under an Amended and Restated Variable Rate
Convertible Debenture due March 2009 in the aggregate amount of
$8 million. Pursuant to the terms of the Amended Debenture, the
company was obligated to make monthly redemption payments
commencing on Jan. 1, 2007, until the Amended Debenture was
redeemed in full. On Aug. 1, 2007, the company made the July
monthly redemption and interest payments to all of the debenture
holders.
PANTRY INC: Expects Lower Gasoline Gross Margin Per Share in 2007
-----------------------------------------------------------------
The Pantry Inc. disclosed Thursday that it expects its gasoline
gross margin and earnings per share for the fiscal year ending
Sept. 27, 2007, to be below its previous targets.
Based on preliminary data, the company expects its retail gasoline
gross margin for the fourth fiscal quarter to be between $0.10 and
$.105 per gallon, bringing its fiscal year 2007 retail gasoline
margin to approximately $0.109 per gallon, substantially below the
approximately $0.115 per gallon that was previously expected. As
a result, the company expects its earnings per share for the
fourth quarter and the full fiscal year to also be below previous
expectations.
Chairman and chief executive officer Peter J. Sodini said, "Our
merchandise business turned in a solid fourth quarter, with
comparable sales above targeted levels and merchandise gross
margins improved from the third quarter. However, we have not
seen the seasonal improvement in gasoline gross margins that we
have usually experienced after Labor Day. To the contrary, our
gas margins have declined this month, reflecting increased oil and
gasoline prices, tight supplies and scattered refinery shutdowns."
In an effort to reduce operating, general and administrative
expenses, the company has implemented a restructuring program
aimed at reducing expenses by at least $6 million in fiscal 2008,
which will necessitate a one-time charge in the fourth quarter of
fiscal 2007. Mr. Sodini commented, "While we certainly regret the
human impact of our restructuring program, we realized we had to
be more proactive in the current challenging environment to ensure
that we can deliver the leverage we need on our operating, general
and administrative expenses."
Fiscal 2008 Outlook
In view of the current near-record oil prices and volatile gas
margins, the company is broadening its target range for retail
gasoline margins in fiscal 2008 to between $0.11 and $0.13 per
gallon. Excluding potential acquisitions, the company expects
merchandise sales to grow about 10% to approximately $1.7 billion
and retail gasoline gallons to grow about 11% to approximately 2.3
billion gallons. These estimates reflect the full-year impact of
2007 acquisitions and targeted comparable store increases in
merchandise sales and gasoline gallons sold of approximately 3%
and 1%, respectively. The merchandise gross margin is expected to
be about 37%. The company expects operating, general and
administrative expenses as a percent of merchandise sales plus
retail gas gallons but not including wholesale gas gallons to
improve from approximately 16.5% in fiscal 2007 to approximately
16.1% in fiscal 2008.
In addition, the company has repurchased about 693,000 shares
pursuant to its previously disclosed share repurchase plan.
About The Pantry
Headquartered in Sanford, North Carolina, The Pantry Inc.
(NASDAQ: PTRY) -- http://www.thepantry.com/-- operates
convenience store chains in the southeastern United States, with
revenues for fiscal 2006 of approximately $6.0 billion. As of
Sept. 20, 2007, the company operated 1,645 stores in eleven states
under select banners, including Kangaroo Express(SM), its primary
operating banner.
* * *
As reported in the Troubled Company Reporter on Aug. 14, 2007,
Moody's stated that an announced share repurchase program by The
Pantry Inc. does not impact the company's ratings (corporate
family rating of B1) or stable rating outlook.
PEOPLE'S CHOICE: Wants Excl. Plan Filing Period Moved to Nov. 30
----------------------------------------------------------------
People's Choice Financial Corp. and its debtor-affiliates seek to
further extend their Exclusive Periods for a period of
approximately two months -- Exclusive Plan Proposal Period to
Nov. 30, 2007, and Exclusive Solicitation Period to Jan. 31, 2008,
and reserve the right to seek further extensions
The U.S. Bankruptcy Court for the Central District of California
had granted the Debtors' previous request to extend their
exclusive period to file a plan to Sept. 28, 2007, and their
exclusive period to solicit and obtain votes to Nov. 30, 2007.
J. Rudy Freeman, Esq., at Pachulski Stang Ziehl & Jones LLP, in
Los Angeles, California, relates that the Debtors, with the
Official Committee of Unsecured Creditors, have expeditiously
marketed their assets for sale and sold those assets in a number
of transactions.
In April and May 2007, the Debtors sold their contractual loan
servicing rights and residual interests to highest and best bidder
after an auction, which took place during April 17 and April 18,
2007.
In July 2007, the Debtors sold their loan servicing and loan
origination platforms. The Debtors have also sold various loan
portfolios owned by the Debtors, as well as miscellaneous assets.
According to Mr. Freeman, combined, the sales have yielded
approximately $45,000,000 in gross proceeds to the Debtors'
estates and resulted in the elimination of thousands of dollars in
potential claims of employees and vendors.
The Debtors timely filed their schedules of assets and liabilities
and statements of financial affairs, and have submitted all
Monthly Operating Reports with the Office of the United States
Trustee.
Mr. Freeman assures the Court that the Debtors are not seeking an
extension of the Exclusivity Periods to extract any improper
concessions from creditors. To the contrary, the Debtors have
worked closely with the Creditors Committee in the prosecution of
the Chapter 11 cases. The Debtors and the Creditors Committee
fully expect to negotiate and prepare a joint plan of liquidation,
he says.
The Debtors must resolve certain tax issues and make
determinations about whether and to what extent consolidation of
the estates is required, Mr. Freeman informs the Court.
The Debtors simply require additional time to pursue their
liquidation strategy for the behalf of all stakeholders and
believe that no party other than the Debtors and the Creditors
Committee could file a viable plan in this instance, Mr. Freeman
avers. Any rogue plan would likely only waste valuable resources
better spent brining the Debtors' Chapter 11 cases to a
conclusion, he adds.
About People's Choice
Headquartered in Irvine, California, People's Choice Financial
Corp. -- http://www.pchl.com/-- is a residential mortgage banking
company, through its subsidiaries, originates, sells, securitizes
and services primarily single-family, non-prime, residential
mortgage loans.
The company and two of its affiliates, People's Choice Home Loan,
Inc., and People's Choice Funding, Inc., filed for chapter 11
protection on March 20, 2007 (Bankr. C.D. Calif. Case No. 07-
10772). J. Rudy Freeman, Esq., at Pachulski, Stang, Ziehl &
Jones, L.L.P., represents the Debtors. Winston & Strawn LLP
represents the Official Committee of Unsecured Creditors. At
March 31, 2006, the Debtors' balance sheet showed total assets of
$4,711,747,000 and total debts of $4,368,966,000. (People's
Choice Bankruptcy News, Issue No. 16; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
PEOPLE'S CHOICE: M. Kvarda Approved as Chief Restructuring Officer
------------------------------------------------------------------
The U.S. Bankruptcy Court for the Central District of California
has considered People's Choice Financial Corp. and its debtor-
affiliates' supplemental application, and authorizes the Debtors
to employ Matthew E. Kvarda and Sven Johnson as officers,
effective as of Sept. 10, 2007.
The Debtors are authorized to renew, replace or obtain, and pay
premiums and other costs, without further Court order, a
directors' and officers' liability insurance policy that would
insure officers for at least $5,000,000 in coverage, with an
expiration date no earlier than Feb. 10, 2008, on the condition
that the cost of the policy is acceptable to each relevant Board
and the Official Committee of Unsecured Creditors.
In the event that a renewed or new directors' and officers'
liability policy is not obtained before the expiration of the
existing policy, each of Messrs. Kvarda and Johnson would be
deemed to have resigned as an oficer of the Debtors unless he
agrees with the Debtors in writing to continue his respective
employment, and each one would alternatively be deemed to resign
upon the effective date of a confirmed Chapter 11 plan in the
Debtors' cases.
As reported in the Troubled Company Reporter on Sept. 19, 2007,
Mr. Kvarda will serve as the Debtors' chief restructuring officer
while Mr. Johnson will act as assistant chief restructuring
officer.
People's Choice related that Messrs. Kvarda and Johnson are
currently the Managing Director and the Director of A&M who have
been and actively working with the Debtors. The appointment will
enable the Debtors to execute their duties in light of the
prepetition resignation of their chief executive officer,
executive vice president of finance, and senior vice president of
finance.
Messrs. Kvarda and Johnson will take on duties as financial
officers of People's Choice and make business decisions on behalf
of the Debtors, subject to the direction of the company's Board of
Directors.
Messrs. Kvarda and Johnson will be paid on an hourly basis
according to Alvarez & Marsal's rate.
Messrs. Kvarda and Johnson will be entitled to indemnification and
are covered under a directors' and officers' liability insurance
policy.
The Debtors are currently seeking to renew or replace their
policy. The Debtors intend to obtain a policy that would insure
their officers, including Messrs. Kvarda and Johnson, for at least
$5,000,000, with an expiration date of not earlier than Feb. 10,
2008.
The Debtors' existing policy expires by its terms October 10.
In the event that approval of Messrs. Kvarda and Johnson's
engagement would not be obtained prior to the expiration of the
existing policy, Messrs. Kvarda and Johnson may resign as an
officer of the Debtor unless otherwise Messrs. Kvarda or Johnson
agrees to continue his employment. Messrs. Kvarda and Johnson are
deemed to resign upon the effective date of a Chapter 11 plan in
the Debtors' cases.
The Debtors believe that the employment of Messrs. Kvarda and
Johnson is the best and most cost-efficient option to maximize the
value of the Debtors' assets consistent with the obligations
imposed in the Bankruptcy Code.
About People's Choice
Headquartered in Irvine, California, People's Choice Financial
Corp. -- http://www.pchl.com/-- is a residential mortgage banking
company, through its subsidiaries, originates, sells, securitizes
and services primarily single-family, non-prime, residential
mortgage loans.
The company and two of its affiliates, People's Choice Home Loan,
Inc., and People's Choice Funding, Inc., filed for chapter 11
protection on March 20, 2007 (Bankr. C.D. Calif. Case No. 07-
10772). J. Rudy Freeman, Esq., at Pachulski, Stang, Ziehl &
Jones, L.L.P., represents the Debtors. Winston & Strawn LLP
represents the Official Committee of Unsecured Creditors. At
March 31, 2006, the Debtors' balance sheet showed total assets of
$4,711,747,000 and total debts of $4,368,966,000. (People's
Choice Bankruptcy News, Issue No. 16; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
QUAKER FABRIC: Wants University Management to Collect Receivables
-----------------------------------------------------------------
Quaker Fabric Corp. and Quaker Fabric Corporation of Fall River
ask The U.S. Bankruptcy Court for the District of Delaware for
authority to employ University Management Associates & Consultant
Corporation/Atwell, Curtis & Brooks, Ltd. to collect their
accounts receivable.
The Debtors relate to the Court that as of Aug. 14, 2007, their
accounts receivable have an aggregate face value of about
$4.2 million and each of which has an individual face value of
about $50,000. The Debtors tell the Court that they need to
expedite and maximize the collection of their receivables. The
Debtors further tell the Court that UMAC/ACB's help will result in
a faster and greater liquidation of the Debtors' assets.
The Debtors will pay UMAC/ACB on a weekly basis to a maximum
amount of $210,000 in aggregate, subject to the Court's approval.
To the best of the Debtors' knowledge, the firm does not hold or
represent any interest adverse to the Debtors or their estates and
is "disinterested" as the term is defined in the Bankruptcy Code.
The firm can be reached at:
Paul Rome, President
University Management Associates & Consultants
Corp./Atwell, Curtis & Brooks, Ltd.
223 B Stiger Street, Suite 12
P.O. Box 913
Hackettstown, NJ 07840
Tel: (908) 979-9007
http://www.umacnj.com/
http://www.acbltd.com/
Based in Fall River, Mass., Quaker Fabric Corp. (NASDAQ: QFAB)
-- http://www.quakerfabric.com-- designs, manufactures, and
markets woven upholstery fabrics primarily for residential
furniture manufacturers and jobbers. It also develops and
manufactures specialty yarns, including chenille, taslan, and spun
products for use in the production of its fabrics, as well as for
sale to distributors of craft yarns, and manufacturers of
homefurnishings and other products. The company is one of the
largest producers of Jacquard upholstery fabrics.
Quaker Fabric sells its products through sales representatives
andindependent commissioned sales agents in the United States,
Canada, Mexico, and internationally.
The company and its affiliate, Quaker Fabric Corporation of Fall
River, filed for chapter 11 protection on Aug. 16, 2007 (Bankr. D.
Del. Case No. 07-11146). John D. Sigel, Esq. at Wilmer Cutler
Pickering Hale and Dorr LLP and Joel A. Waite, Esq. at Young
Conaway Stargatt & Taylor LLP are co-counsels to the Debtors.
Epiq Bankruptcy Solutions is the Debtors' claims agent. The
Official Committee of Unsecured Creditors has selected Shumaker,
Loop & Kendrick, LLP, as its bankruptcy counsel and Benesch,
Friedlander, Coplan & Aronoff, LLP, as co-counsel. The Debtors'
had total assets of $155,243,945 and total debts of $60,407,158 as
of June 2, 2007.
QUEBECOR WORLD: Inks Amended $750 Million Bank Credit Facility
--------------------------------------------------------------
Quebecor World Inc. has agreed to new terms in its syndicated bank
credit facility. The amendment includes modification of the terms
to provide financial flexibility through to maturity of the
agreement in January 2009.
As part of the new agreement, the company:
-- has agreed to a $750 million facility, of which a
portion will be secured by a lien on assets;
-- has committed to reduce the facility to $500 million by
July 1, 2008; and
-- has agreed to certain restrictions on the use of proceeds
and terms of repayment.
Quebecor World believes the modified credit facility, combined
with other financing initiatives currently underway, should
provide the company with the required liquidity to execute its
business plan.
About Quebecor World
Headquartered in Montreal, Quebec, Quebecor World Inc. (TSX: IQW)
(NYSE: IQW) -- http://www.quebecorworld.com/-- provides print
solutions to publishers, retailers, catalogers and other
businesses with marketing and advertising activities. Quebecor
World has about 29,000 employees working in more than 120 printing
and related facilities in the U.S., Canada, Argentina, Austria,
Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico,
Peru, Spain, Sweden, Switzerland and the U.K.
* * *
As reported in the Troubled Company Reporter on Aug. 30, 2007,
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating to 'B' from 'B+' ratings on Quebecor World Inc.
Moody's Investors Service downgraded Quebecor World Inc.'s
corporate family rating to B3 from B2 and the senior unsecured
ratings for subsidiary companies, Quebecor World Capital
Corporation and Quebecor World Capital ULC, also to B3 from B2.
QUEBECOR WORLD: Unit Calls for Redemption of $370 Million Notes
---------------------------------------------------------------
Quebecor World Capital Corporation, a wholly owned subsidiary of
Quebecor World Inc., calls for redemption of approximately
$370 million of:
-- all of its outstanding 8.42% Senior Notes, Series A, due
July 15, 2010;
-- 8.52% Senior Notes, Series B, due July 15, 2012;
-- 8.54% Senior Notes, Series C, due Sept. 15, 2015; and
-- 8.69% Senior Notes, Series D, due Sept. 15, 2020.
The redemption price includes 100% of the outstanding principal
amount of the Notes, plus the accrued and unpaid interest on the
Notes to the Redemption Date plus the applicable Make-Whole Amount
determined for the Redemption Date with respect to the outstanding
principal amount of the Notes. The redemption will take place on
Oct. 29, 2007.
Quebecor World Capital Corporation is giving written notice of the
redemption to all Noteholders in whose name the Notes are
registered.
About Quebecor World
Headquartered in Montreal, Quebec, Quebecor World Inc. (TSX: IQW)
(NYSE: IQW) -- http://www.quebecorworld.com/-- provides print
solutions to publishers, retailers, catalogers and other
businesses with marketing and advertising activities. Quebecor
World has about 29,000 employees working in more than 120 printing
and related facilities in the U.S., Canada, Argentina, Austria,
Belgium, Brazil, Chile, Colombia, Finland, France, India, Mexico,
Peru, Spain, Sweden, Switzerland and the U.K.
* * *
As reported in the Troubled Company Reporter on Aug. 30, 2007,
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating to 'B' from 'B+' ratings on Quebecor World Inc.
Moody's Investors Service downgraded Quebecor World Inc.'s
corporate family rating to B3 from B2 and the senior unsecured
ratings for subsidiary companies, Quebecor World Capital
Corporation and Quebecor World Capital ULC, also to B3 from B2.
QUEBECOR WORLD: Posts $21.1 Million Net Loss in Qtr. Ended June 30
------------------------------------------------------------------
Quebecor World Inc. reported a net loss from continuing operations
of $21.1 million for the second quarter ended June 30, 2007,
compared to a net loss from continuing operations of $6.5 million
for the same period ended June 30, 2006.
Including discontinued operations, net loss was $21.1 million
for the quarter ended June 30, 2007, compared to a net loss of
$7.2 million for the same period last year.
Second quarter 2007 results incorporate impairment of assets,
restructuring and other charges, net of taxes, of $26.3 million
compared to $27.0 million in 2006. Excluding impairment of
assets, restructuring and other charges, adjusted operating income
was $33.9 million compared to $50.4 million during the second
quarter last year. The company attributes this shortfall to
temporary inefficiencies and volume reductions caused by the
retooling, restructuring, and press start-up activity as well as
market conditions.
Consolidated revenues for the quarter were $1.36 billion compared
to $1.45 billion in the second quarter of 2006.
"In North America, we are achieving significant improved earnings
in our business groups where the retooling and restructuring is
essentially complete, such as our Book and Magazine Divisions",
commented Wes Lucas, president and chief executive officer,
Quebecor World Inc. "In addition, results improved year-over-year
in several business groups, such as Targeted Marketing, Premedia,
and Retail. However, these improved performances were offset by
those divisions that are in the middle of retooling and
restructuring, such as the significant new press start-ups and
plant closures in the Catalog and Directory Divisions, as well as
the Canada Division. These elements contributed to a slight net
increase in the North America adjusted EBITDA and adjusted EBIT
margins in the quarter. In addition, we were pleased with our
Latin America division where we achieved sales growth adjusted for
foreign exchange of more than 8% and a three-fold increase in
EBIT."
"However, as expected, the acceleration of our re-tooling efforts
and the challenging market conditions in some segments, especially
in Europe, negatively impacted our financial results," added Mr.
Lucas. "In Europe, to meet the difficult European market
conditions, we successfully started-up what is considered to be
Europe's most advanced gravure printing facility with state-of-
the-art technology and low cost automation in Charleroi, Belgium."
In the second quarter, restructuring activities included the
closure of the Phoenix, Ariz. facility, the announcement of the
shutdown of one of the Vancouver, B.C. facilities and the
installation of four new or relocated presses across the platform.
In the second quarter, Quebecor World generated adjusted EBITDA of
$114.0 million compared to $130.6 million in the second quarter of
2006.
During the quarter, the company redeemed all of its 6% Convertible
Senior Subordinated Notes due on Oct. 1, 2007, for a redemption
price of 100.6% of the outstanding principal amount of the Notes,
plus the accrued and unpaid interest.
For the first six months of 2007, Quebecor World reported a net
loss from continuing operations of $59.2 million, compared to
2006's net loss from continuing operations of $200,000 for the
same period.
Consolidated revenues for the first half of 2007 were
$2.75 billion compared to $2.92 billion in the same period of
2006.
At June 30, 2007, the company's consolidated balance sheet showed
$5.74 billion in total assets, $3.46 billion in total liabilities,
$351.1 million in future income taxes, $164.3 million in preferred
shares, $1.2 million in minority interest, and $1.77 billion in
total stockholders' equity.
The company's consolidated balance sheet at June 30, 2007, further
showed $889.1 million in total current assets available to pay
$1.096 billion in total current liabilities.
About Quebecor World
Headquartered in Montreal, Quebec, Canada, Quebecor World Inc.
(TSX: IQW) (NYSE: IQW) -- http://www.quebecorworld.com/--
provides marketing and advertising solutions to leading retailers,
catalogers, branded-goods companies and other businesses with
marketing and advertising activities, as well as complete, full-
service print solutions for publishers. The company's major
product categories include advertising inserts and circulars,
catalogs, direct mail products, magazines, books, directories,
digital premedia, logistics, mail list technologies and other
value-added services. Quebecor World has approximately 27,500
employees working in more than 120 printing and related facilities
in the United States, Canada, Argentina, Austria, Belgium, Brazil,
Chile, Colombia, Finland, France, India, Mexico, Peru, Spain,
Sweden, Switzerland and the United Kingdom.
* * *
As reported in the Troubled Company Reporter on Aug. 30, 2007,
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating to 'B' from 'B+' ratings on Quebecor World Inc.
Moody's Investors Service downgraded Quebecor World Inc.'s
corporate family rating to B3 from B2 and the senior unsecured
ratings for subsidiary companies, Quebecor World Capital
Corporation and Quebecor World Capital ULC, also to B3 from B2.
R&G FINANCIAL: Unit Obtains Notices on Mortgage Banking Status
--------------------------------------------------------------
R&G Mortgage Corporation, R&G Financial Corporation's subsidiary
has received a number of notices regarding the status of its
mortgage banking authorizations from certain of the government
agencies and government-sponsored entities with whom it has
mortgage business relationships, due to its lack of audited
financial statements:
-- United States Department of Housing and Urban
Development notified of the immediate withdrawal of its
status as a HUD-FHA Title II approved lender. R&G
Mortgage has appealed this withdrawal to HUD.
-- Government National Mortgage Association notified that it
was withdrawing authority to act as a GNMA issuer and as
a servicer of GNMA mortgage pools.
-- GNMA is extending until Oct. 9, 2007, its authority to
act as a servicer of GNMA mortgage pools. However, the
company cannot issue GNMA guaranteed mortgage-backed
securities.
-- Federal National Mortgage Association placed certain
conditions and limitations on R&G Mortgage's selling and
servicing relationship with FNMA.
FNMA also will requie R&G Mortgage to sell its servicing portfolio
to another FNMA-approved servicer if FNMA does not approve the
application which has been made by the company's Puerto Rican
banking subsidiary, R-G Premier Bank of Puerto Rico, as a FNMA
Seller/Servicer and the transfer of servicing to R-G Premier.
FNMA servicing constituted approximately 2% of R&G Mortgage's
total servicing portfolio as of June 30, 2007. R&G Mortgage
remains a Seller/Servicer with the Federal Home Loan Mortgage
Corporation. FHLMC servicing amounts to approximately 40% of R&G
Mortgage's servicing portfolio as of June 30, 2007.
R&G Financial is taking steps to address the issues posed by the
foregoing actions of government agencies and GSEs. R-G Premier is
seeking to obtain authorizations from the foregoing agencies and
GSEs. R-G Premier has received approval from HUD to act as a HUD-
FHA approved Title II lender. As a HUD-FHA approved lender, R-G
Premier will be able to offer FHA- insured loans by R&G Mortgage.
R&G Financial anticipates that R-G Premier will apply to GNMA for
approval to become a GNMA Issuer/Servicer. In addition, R-G
Premier has received approval from FHLMC to act as a FHLMC
Seller/Servicer and has applied to FNMA for authorization to serve
as a FNMA Seller/Servicer.
If R-G Premier obtains approvals from GNMA and FNMA, it is R&G
Financial's intent to have R&G Mortgage transfer its existing
servicing operations, including its servicing contracts and
rights, to R-G Premier.
This transfer will require regulatory approval from the Federal
Reserve and the FDIC and other approvals from GNMA, GSEs and third
parties.
While R-G Premier believes that it should be able to obtain all
approvals, no assurances can be given that R-G Premier will be
successful in obtaining GNMA and FNMA authorizations or the
required approvals for the transfer of the servicing rights or the
mortgage banking business. If R&G Financial is not successful in
these efforts, such failure would have a material adverse effect
on R&G Financial.
Credit Facilities
R&G Financial has two principal short-term warehousing and working
capital credit facilities entered into by R&G Mortgage with two
financial institutions. These facilities are fully and
unconditionally guaranteed by R&G Financial and are collateralized
with mortgage loans and servicing
rights.
One of these credit facilities consists of a credit agreement that
terminated on Sept. 30, 2007, pursuant to which amounts borrowed
are repayable at any time upon demand by the lender or by the
termination date.
Under this credit agreement, R&G Mortgage has $59.8 million
outstanding under a warehousing facility and $6.7 million
outstanding under a working capital facility. The other credit
facility consists of two credit agreements that terminate on Oct.
31, 2007, pursuant to which amounts borrowed are repayable by the
termination date.
Under these credit agreements, R&G Mortgage has $36.8 million
outstanding under a warehousing facility and $18.2 million
outstanding under a working capital facility.
Under the credit agreements for these facilities, R&G Mortgage is
required to maintain its mortgage banking licenses and is subject
to certain financial covenants. In addition, both the company and
R&G Mortgage are required to deliver audited financial statements
to the lenders.
R&G Financial and R&G Mortgage have failed to comply with some of
these requirements, including delivery of audited financial
statements. During the restatement process, R&G Mortgage has
obtained certain waivers of default and extensions of both of
these credit facilities.
At this time, R&G Mortgage has waivers of the defaults under the
credit agreements until their expiration dates. The lenders have
continued making advances under the warehousing facilities, but
R&G Mortgage has agreed not to make any
further draws under the working capital facilities at this time.
R&G Mortgage is in the process of selling a mortgage loan
portfolio, and has indicated to the lenders that the proceeds of
the sale would be used to pay down a substantial portion of these
facilities. R&G Mortgage expects to close this transaction prior
to Sept. 30, 2007, and would then renegotiate with the lenders an
extension of the credit facilities.
R&G Financial can give no assurance, however, that R&G
Mortgage will be able:
-- to consummate the transaction by said dat;
-- R&G Mortgage will be able to obtain extensions under
either or both of the credit facilities;
-- to obtain the further waiver the company would need if it
is able to obtain an extension of the credit agreements.
If the lenders under either of the credit agreements cease making
advances under the warehousing facilities, accelerate or
demand payment of any outstanding amounts or fail to renew the
credit facilities beyond their termination dates, the consequences
would be material to the company's liquidity and operating
flexibility.
Impairment Charges
R&G Financial has experienced deterioration in certain of its real
estate-construction and development loans and has reassessed a
number of its lending relationships with developers and
homebuilders in the Central/North Florida area.
The housing market in the Central/North Florida area continues to
show weak demand for housing and high inventory levels which
are significantly affecting the financial position and operations
of many homebuilders and developers.
As a result, on Sept. 12, 2007, R&G Financial determined that it
would record a provision for loan and lease losses for the quarter
ending Sept. 30, 2007. R&G Financial is in the loan review
process to determine the amount of the provision, but
cannot provide an estimate of the amount or a range of the amount
of such provision at this time.
The reduced liquidity in the secondary mortgage market has
impacted the market value of R&G Financial's mortgage loans held-
for-sale, held by R&G Mortgage. As a result, on Sept. 12, 2007,
R&G Financial determined that it would record a valuation
allowance to its mortgage loans held-for-sale for the quarter
ending Sept. 30, 2007.
However, it cannot estimate the amount or a range of the amount of
the allowance. These impairment charges do not affect R-G
Premier, which remains well capitalized as of Aug. 31, 2007.
About R&G Financial
Headquartered in San Juan, Puerto Rico, R&G Financial Corp.
(PNK: RGFC.PK) -- http://www.rgonline.com/-- is a financial
holding company with operations in Puerto Rico and the
United States, providing banking, mortgage banking, investments,
consumer finance and insurance through its wholly owned
subsidiaries, R-G Premier Bank, R-G Crown Bank, R&G Mortgage
Corporation, Puerto Rico's second largest mortgage banker, R-G
Investments Corporation, the company's Puerto Rico broker- dealer,
and R-G Insurance Corporation, its Puerto Rico insurance agency.
At June 30, 2006, the company operated 37 bank branches in Puerto
Rico, 35 bank branches in the Orlando, Tampa/St. Petersburg and
Jacksonville, Florida and Augusta, Georgia markets, and 49
mortgage offices in Puerto Rico, including 37 facilities located
within R-G Premier Bank's banking branches.
* * *
As reported in the Troubled Company Reporter on Sept. 26, 2007,
Fitch has downgraded the long-term issuer default rating of R&G
Financial Corporation to 'CCC' from 'BB-'. Further, R&G has been
placed on rating watch negative. In addition, the long-term IDR
of R-G Premier Bank has been downgraded to 'B' from 'BB-'.
REAL TURF: Case Summary & 20 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: Real Turf and Putting Greens, Inc.
301 Wyoming Boulevard Northeast
Albuquerque, NM 87123
Bankruptcy Case No.: 07-12422
Type of business: The Debtor is a synthetic turf installation
company. See http://www.realturf.com/
Chapter 11 Petition Date: September 29, 2007
Court: District of New Mexico (Albuquerque)
Judge: Mark B. McFeeley
Debtor's Counsel: Bonnie Bassan Gandarilla, Esq.
Moore, Berkson & Gandarilla, P.C.
P.O. Box 216
Albuquerque, NM 87103-0216
Tel: (505) 242-1218
Fax: (505) 242-2836
Estimated Assets: $100,000 to $1 Million
Estimated Debts: $1 Million to $100 Million
Debtor's 20 Largest Unsecured Creditors:
Entity Claim Amount
------ ------------
Richard L. Wickens $2,009,803
9043 Guadalupe Trail
Northwest
Albuquerque, NM 87114
Controlled Products $398,000
P.O. Box 1964
Dalton, GA 30722-1964
Richard B. Wickens $100,000
2305 Agua Fria Drive
Northeast
Rio Rancho, NM 87144
Internal Revenue Service $100,000
Lumber, Inc. $71,000
American International Group $68,000
Rothstein & Donatelli, P.C. $47,000
Specialty Loaders $26,449
David Deballo $21,000
Sanchez Mowrer & Desiderio, P.C. $15,000
R.E.D.W. $14,472
Chevron $13,087
Cheshire Wickens Trust $13,005
Bernalillo County Treasurer $13,000
J.N.A./Spherion $12,538
Richard B. Wickens $12,000
Haythqam Kahlil (Tom) $11,000
Robert Simons $10,000
E.C.C. Ellen Equipment $10,000
Blue Cross Blue Shield $9,726
REFCO INC: Former Directors Want Axis to Pay Defense Costs
----------------------------------------------------------
Leo R. Breitman, Nathan Gantcher, David V. Harkins, Scott L.
Jaeckel, Thomas H. Lee, Ronald L. O'Kelley, and Scott A. Schoen,
former directors of Refco, Inc., ask the U.S. Bankruptcy Court for
the Southern District of New York to issue a declaratory judgment
requiring Axis Reinsurance Company to advance defense costs to
them, as incurred, pursuant to the terms of the excess directors
and officers liability insurance policy issued by Axis to Refco.
The "tower" of D&O Insurance Policies consists of a primary policy
and five excess policies, issued by The U.S. Specialty Insurance
Company, Lexington Insurance Company, Axis, as primary, first
excess, and second excess policies.
The Directors, as well as other former Refco officers and
directors, have been named as defendants in various civil and
criminal proceedings relating to Refco's collapse.
Michael F. Walsh, Esq., at Weil, Gotshal & Manges, LLP, in New
York, reminds the Court that the Directors have requested
advancement of their defense costs, in accordance with the terms
of the Axis Policy, which Axis has refused to do.
According to Mr. Walsh, Axis had sought a declaration that the
claims asserted by the Insureds were not covered by the Axis
Policy. The Court dismissed the complaint, stating that the
issues determining coverage overlap the factual issues to be
adjudicated, and directed Axis to make the advancement to the
Insureds, but not including the Directors.
Mr. Walsh discloses that the Insureds have already exhausted the
primary and first excess D&O Policies, and are incurring costs as
the litigation proceeds towards trial.
Accordingly, the Directors ask the Court to require Axis to
advance defense costs, in accordance with the Axis Policy, and to
award their reasonable attorneys' fees and expenses in connection
with the Action, as well as the adversary proceeding commenced by
Axis against Refco.
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in 14
countries and an extensive global institutional and retail client
base. Refco's worldwide subsidiaries are members of principal
U.S. and international exchanges, and are among the most active
members of futures exchanges in Chicago, New York, London and
Singapore. In addition to its futures brokerage activities, Refco
is a major broker of cash market products, including foreign
exchange, foreign exchange options, government securities,
domestic and international equities, emerging market debt, and OTC
financial and commodity products. Refco is one of the largest
global clearing firms for derivatives.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported $16.5 billion in assets and $16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its direct and indirect subsidiaries,
including Refco Capital Markets Ltd. and Refco F/X Associates LLC,
on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006.
Refco Commodity's exclusive period to file a chapter 11 plan
expired on Feb. 13, 2007. (Refco Bankruptcy News, Issue No. 69;
Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/
or 215/945-7000).
REFCO INC: Axis Says Reimbursement Sought Isn't Part of Coverage
----------------------------------------------------------------
In response to the Declaratory Judgment Motion filed by former
directors of Refco, Inc., Wayne E. Borgeest, Esq., at Kaufman
Borgeest & Ryan LLP, in Valhalla, New York, states, behalf of Axis
Reinsurance Company, that the Axis Policy entitles reimbursement
to the Insureds, only when the covered defense costs have been
established.
Mr. Borgeest tells the Hon. Robert Drain of the U.S. Bankruptcy
Court for the Southern District of New York that Axis intends to
litigate the coverage issue, to determine that those costs sought
to be advanced by the Insured Parties are not covered by the Axis
Policy.
The Axis Policy, Mr. Borgeest explains, does not cover claims
arising from circumstances, transactions, or events on which any
Insured Party has knowledge and information.
Mr. Borgeest asserts that Axis had determined, through Refco's
filings in the Securities and Exchange Commission, as well as the
Examiner's Report, that the Insured Parties did have relevant
knowledge and information on the issues being litigated.
Axis thus seeks summary judgment against all the insured parties,
and a declaration that, to the extent that the Court orders the
advancement of the defense costs, and later determines that those
costs are not covered by the Axis Policy, the Debtors will repay
the non-covered costs.
In response, the Directors insist that the Court should enter a
summary judgment in their favor, and against Axis. The Directors
maintain that the Debtors have paid all premiums, and the
Directors, as well as other insured parties, have performed all
terms and conditions with respect to the Axis Policy.
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in 14
countries and an extensive global institutional and retail client
base. Refco's worldwide subsidiaries are members of principal
U.S. and international exchanges, and are among the most active
members of futures exchanges in Chicago, New York, London and
Singapore. In addition to its futures brokerage activities, Refco
is a major broker of cash market products, including foreign
exchange, foreign exchange options, government securities,
domestic and international equities, emerging market debt, and OTC
financial and commodity products. Refco is one of the largest
global clearing firms for derivatives.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported $16.5 billion in assets and $16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its direct and indirect subsidiaries,
including Refco Capital Markets Ltd. and Refco F/X Associates LLC,
on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006.
Refco Commodity's exclusive period to file a chapter 11 plan
expired on Feb. 13, 2007. (Refco Bankruptcy News, Issue No. 69;
Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/
or 215/945-7000).
REFCO INC: Class Action Against Thomas H. Lee Partners Dismissed
----------------------------------------------------------------
The United States Bankruptcy Court for the District of Delaware
has dismissed the securities class action lawsuit commenced by
brokerage customers of Refco Capital Markets, Ltd., against Thomas
H. Lee Partners, controlling owner of Refco, Inc., and Grant
Thornton LLP, auditor of RCM.
"The complaint must be dismissed because it fails sufficiently to
allege deceptive conduct," District Judge Gerard E. Lynch said in
his 27-page opinion, entered Sept. 13, 2007.
Judge Lynch said that the RCM Customers Plaintiffs failed to
explain how T.H. Lee and the other defendants "created a false
impression" about the handling of customer assets. The judge
found that the suit needed more details about the agreements
between RCM and its brokerage clients.
Judge Lynch did not rule on the merits of the case, saying that
the RCM Customers Plaintiffs did not allege enough facts to go
forward.
The Opinion addresses certain motions to dismiss filed by
defendants Tone N. Grant, Joseph J. Murphy, William M. Sexton,
Gerald M. Sherer, Philip Silverman, Robert C. Trosten, Phillip R.
Bennett, Grant Thornton and the THL Defendants.
Judge Lynch has granted leave to replead as to all defendants,
except Messrs. Silverman, Sexton, Murphy and Sherer. The clerk of
the District Court will mark the case closed as to those
defendants.
As previously reported, the RCM Customers Plaintiffs, as
represented by Kirby, McInerney & Squire, LLP, entrusted, at any
time from October 17, 2000, to October 17, 2005, securities to RCM
and/or Refco Securities, LLC, directly or indirectly, as custodian
and broker for safe-keeping, and continued to hold positions with
RCM on the Petition Date or thereafter.
The Complaint charges Refco, 14 of Refco's senior officers and
directors, Refco's controlling shareholders, Refco's auditor, and
19 financial institutions that underwrote the company's common
stock and bond offerings with violations of Sections10(b) and
20(a) of the Securities Exchange Act of 1934, and Rule 10b-5
promulgated thereunder.
In the lawsuit against Thomas H. Lee, and Grant Thornton, the RCM
Customers Plaintiffs asserted that the "brokerage secretly sold
their securities and 'diverted' the proceeds to other Refco
entities," according to Bloomberg News.
The RCM Customers Plaintiffs will advise the District Court by
Oct. 8, 2007, as to whether they intend to file an amended
complaint. If so, the parties are directed to meet and confer
regarding a schedule for the filing of an amended complaint and
subsequent motions to dismiss, and to submit a stipulated
schedule, or competing proposed schedules, to the District Court
by Oct. 22.
Counsel to the RCM Customers Plaintiffs told Bloomberg News that
it is "likely" that a new complaint will be filed.
About Refco Inc.
Based in New York, Refco Inc. -- http://www.refco.com/-- is a
diversified financial services organization with operations in 14
countries and an extensive global institutional and retail client
base. Refco's worldwide subsidiaries are members of principal
U.S. and international exchanges, and are among the most active
members of futures exchanges in Chicago, New York, London and
Singapore. In addition to its futures brokerage activities, Refco
is a major broker of cash market products, including foreign
exchange, foreign exchange options, government securities,
domestic and international equities, emerging market debt, and OTC
financial and commodity products. Refco is one of the largest
global clearing firms for derivatives.
The Company and 23 of its affiliates filed for chapter 11
protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006).
J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom
LLP, represent the Debtors in their restructuring efforts. Luc
A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP,
represents the Official Committee of Unsecured Creditors. Refco
reported $16.5 billion in assets and $16.8 billion in debts
to the Bankruptcy Court on the first day of its chapter 11
cases.
The Court confirmed the Modified Joint Chapter 11 Plan of
Refco Inc. and certain of its direct and indirect subsidiaries,
including Refco Capital Markets Ltd. and Refco F/X Associates LLC,
on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006.
Refco Commodity's exclusive period to file a chapter 11 plan
expired on Feb. 13, 2007. (Refco Bankruptcy News, Issue No. 69;
Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/
or 215/945-7000).
RELIANT ENERGY: Has Until October 4 to File Schedules & Statement
-----------------------------------------------------------------
The Honorable Mary F. Walrath of the United States Bankruptcy
Court for the District of Delaware extended, until Oct. 4, 2007,
the period within which Reliant Energy Channel View LP and its
debtor-affiliates must file their schedules of assets and
liabilities and statement of financial affairs.
The Debtors told the Court that they need more time to gather
information from books, records, documents and transactions to
complete and file the required schedules and statements.
Based in Houston, Reliant Energy Channelview L.P. owns a power
plant located near Houston, and is an indirect wholly owned
subsidiary of Reliant Energy Inc. -- http://www.reliant.com/--
The company and its three affiliates, Reliant Energy Channelview
(Texas) LLC, Reliant Energy Channelview (Delaware) LLC, and
Reliant Energy Services Channelview LLC filed for chapter 11
protection on Aug. 20, 2007 (Bankr. D. Del. Lead Case No.
07-11160). Jason M. Madron, Esq., Lee E. Kaufman, Esq., Mark D.
Collins, Esq., Paul Noble Heath, Esq., Richards, Robert J. Stearn
Jr., Esq., at Layton & Finger P.A., and Timothy P. Cairns,
Pachulski Stang Ziehl & Jones represent the Debtors. When the
Debtors filed for protection from their creditors, they listed
total assets of $362,000,000 and total debts of $342,000,000.
RELIANT ENERGY: U.S. Trustee Appoints Three-Member Creditors Panel
------------------------------------------------------------------
Kelly Beaudin Stapleton, the United States Trustee for Region 3,
appointed five creditors to the Official Committee of Unsecured
Creditors in Reliant Energy Channelview L.P. and its debtor-
affiliates chapter 11 cases.
The Creditors Committee members are:
(1) Equistar Chemicals L.P.
1221 McKinney Street
Houston, TX 77010
Attn: J. Donald Hamilton
Tel: (713) 309-4980
Fax: (713) 652-4542
(2) Ice Solv L.L.C.
160 N. Forge Road
Palmyra, PA 19678
Attn: Paul Leblanc
Tel: (717) 838-0400
Fax: (717) 838-0405
(3) Siemens Power Generation Inc.
4400 Alafaya Trail
Orlando, FL 23826
Attn: Ron McNutt
Tel: (407) 736-5710
Fax: (704) 736-3442
Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at the Debtor's
expense. They may investigate the Debtor's business and financial
affairs. Importantly, official committees serve as fiduciaries to
the general population of creditors they represent. Those
committees will also attempt to negotiate the terms of a
consensual chapter 11 plan -- almost always subject to the terms
of strict confidentiality agreements with the Debtors and other
core parties-in-interest. If negotiations break down, the
Committee may ask the Bankruptcy Court to replace management with
an independent trustee. If the Committee concludes reorganization
of the Debtor is impossible, the Committee will urge the
Bankruptcy Court to convert the Chapter 11 cases to a liquidation
proceeding.
Based in Houston, Reliant Energy Channelview L.P. owns a power
plant located near Houston, and is an indirect wholly owned
subsidiary of Reliant Energy Inc. -- http://www.reliant.com/--
The company and its three affiliates, Reliant Energy Channelview
(Texas) LLC, Reliant Energy Channelview (Delaware) LLC, and
Reliant Energy Services Channelview LLC filed for chapter 11
protection on Aug. 20, 2007 (Bankr. D. Del. Lead Case No.
07-11160). Jason M. Madron, Esq., Lee E. Kaufman, Esq., Mark D.
Collins, Esq., Paul Noble Heath, Esq., Richards, Robert J. Stearn
Jr., Esq., at Layton & Finger P.A., and Timothy P. Cairns,
Pachulski Stang Ziehl & Jones represent the Debtors. When the
Debtors filed for protection from their creditors, they listed
total assets of $362,000,000 and total debts of $342,000,000.
REMY INT'L: Likely Bankruptcy Filing Cues Moody's C/LD Rating
-------------------------------------------------------------
Moody's Investors Service lowered the Probability of Default
Ratings of Remy International Inc. to C/LD from Ca/LD, and
confirmed the Corporate Family Rating at Ca.
In a related action, Moody's raised the ratings on the second-
priority senior secured floating rate notes, to B3 from Caa3;
confirmed the rating on the senior unsecured notes at Ca; and
confirmed the ratings of the senior subordinated notes at C. The
outlook is negative. The Probability of Default rating of C/LD
reflects the expectation that Remy will file for Chapter 11
shortly after the Oct. 1, 2007 deadline for the solicitation of
votes for a prepackaged plan of reorganization from Remy's
unsecured noteholders.
The raised rating on the second priority senior secured floating
rating rate notes reflects an increased certainty within the LGD
Methodology of a higher recovery contemplated by a consensual
financial restructuring previously agreed upon by about 80% of the
unsecured noteholders and the company.
As part of the unsecured noteholder plan support agreement, the
consenting noteholders have agreed, subject to certain conditions,
to backstop a rights offering of new preferred stock to be issued
under the prepackaged plan of reorganization that will provide
about $85 million of new capital to fund the prepackaged plan of
reorganization and the company's post- emergence operations.
The prepackaged plan includes full cash repayment of the second
priority senior secured floating rate notes. The superior
recovery for this security results in the rating upgrade. Recovery
for the remaining instruments will be at levels consistent with
the current ratings: the company's existing 8 5-8% senior
unsecured notes will be exchanged for $100 million of new third-
lien payment-in-kind notes and about $55 million in cash which
includes a $10 million consent fee; and the existing senior
subordinated notes will be converted into 100% of the common
equity of the reorganized company.
Upon the company's filing of it prepackaged Chapter 11, Moody's
will lower the Probability of Default Rating to D and withdraw the
ratings.
Ratings lowered:
-- Probability of Default Rating, to C/LD from Ca/LD;
Ratings raised:
-- $125 million of guaranteed second-priority senior secured
floating rate notes, to B3 (LGD2, 12%) from Caa3 (LGD3,
49%);
Ratings confirmed:
-- $145 million of 8.625% guaranteed senior unsecured notes
at Ca (LGD4, 52%);
-- $150 million of 9.375% guaranteed senior subordinated
notes at C (LGD6, 99%);
-- $165 million of 11% guaranteed senior subordinated notes
at C (LGD6, 99%);
-- Corporate Family Rating, Ca;
The last rating action was on May 17, 2007 when the ratings were
lowered.
The $80 million senior secured term loan and the senior secured
asset based revolving credit facility are not rated by Moody's.
Remy International, Inc. is headquartered in Anderson, Indiana.
The company is a leading global manufacturer and remanufacturer of
aftermarket and original equipment electrical components for
automobiles, light trucks, heavy duty trucks and other heavy duty
vehicles. Remy International is privately owned in the following
approximate percentages by affiliates of Citicorp Venture Capital
(70%); Berkshire Hathaway (20%); and management/miscellaneous
other investors (10%). Annual revenues over the last twelve
months approximated $1.1 billion.
REVERE INDUSTRIES: S&P Junks Corporate Credit Rating
----------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Westfield, Indiana-based Revere Industries LLC to 'CCC+'
from 'B-'. Ratings remain on CreditWatch with negative
implications.
"The downgrade reflects that the company has not yet obtained a
satisfactory amendment to its credit facilities, as well as
concern about the company's operational prospects," said Standard
& Poor's credit analyst Robert Wilson.
S&P will continue to monitor Revere's efforts to achieve
sufficient relief and enhance earnings. S&P could lower the
ratings further if the company fails to receive satisfactory
relief, or if the company's liquidity or operating performance
deteriorate further.
RIVER VALLEY: Case Summary & Four Largest Unsecured Creditors
-------------------------------------------------------------
Lead Debtor: River Valley Ranch Estates, LLC
P.O. Box 183
Granby, CO 80446
Bankruptcy Case No.: 07-20949
Debtor-affiliates filing separate Chapter 11 petitions:
Entity Case No.
------ --------
Hidden Valley Depot, L.L.C. 07-20951
D.W.R., L.L.C. 07-20953
Type of business: The Debtor owns and manages real estate.
Chapter 11 Petition Date: September 27, 2007
Court: District of Colorado (Denver)
Judge: Howard R. Tallman
Debtors' Counsel: Thomas F. Quinn, Esq.
1600 Broadway, Suite 2350
Denver, CO 80202
Tel: (303)832-4323
Fax: (303)672-8281
Estimated Assets Estimated Debts
---------------- ---------------
River Valley Ranch $2,975,600 $4,118,787
Estates, L.L.C.
Hiden Valley Depot, L.L.C. $1,266,400 $3,800,918
D.W.R., L.L.C. $3,118,080 $3,502,787
Debtors' Consolidated List of their Four Largest Unsecured
Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Dennis W. Krueger, Raydean promissory note; $2,825,000
M. Acevedo and Walter I. value of security:
Jenkins $1,860,000
c/o Richmond, Sprouse &
Murphy, L.L.C.
P.O. Box 280
Frisco, CO 80443
Centennial Contractors, road construction $528,287
L.L.C. and related services
6178 Highway 125
Granby, CO 80446
Aspen Ridge, L.L.C. trade debt $100,000
P.O. Box 183
Granby, CO 80446
Grand Junction Pipe & culvert provided on $49,500
Supply Company open account
2868 I-70 Business Loop
Grand Junction, CO 81502
ROBERT IKENBERRY: Involuntary Chapter 11 Case Summary
-----------------------------------------------------
Alleged Debtor: Robert Dallas Ikenberry
20772 Ash Drive
Spiro, OK 74959
Case Number: 07-73118
Involuntary Petition Date: September 28, 2007
Court: Western District of Arkansas (Fort Smith)
Judge: Ben T. Barry
Petitioner's Counsel: David L. Dunagin, Esq.
Law Office of David L. Dunagin
P.O. Box 41
Fort Smith, AR 72902
Tel: (479) 573-0299
Fax: (479) 573-0307
-- and --
Kevin Hickey, Esq.
Law Office of Kevin Hickey
523 Garrison Avenue, Suite 300
Fort Smith, AR 72901
Tel: (479) 494-3002
Petitioner Nature of Claim Claim Amount
----------- --------------- ------------
Jennifer A. Lynn Judgment $237,185
3621 Coventry Lane
Fort Smith, AR 72908
Tel: (479) 649-1901
RURAL/METRO: Obtains Notice of Default from Wells Fargo
-------------------------------------------------------
Rural/Metro Corporation has received a notice of default from
Wells Fargo Bank N.A., the Trustee with respect to the company's
9.875% Senior Subordinated Notes due 2015 and its 12.75% Senior
Discount Notes due 2016, that it has not yet met the timely filing
requirement within the Indentures for its Annual Report on Form
10-K for the fiscal year ended June 30, 2007.
Under the Indentures, the company has a 60-day cure period, or
until Nov. 23, 2007, to regain compliance by filing the Annual
Report.
As reported in the Troubled Company Reporter on Sept. 24, 2007,
the company said that it wasn't able to file its Annual Report on
Form 10-K for the fiscal year ended June 30, 2007 by the
prescribed due date of Sept. 13, 2007. The company declared that
it is continuing to complete a review of its current year-end and
historical financial statements
The company and its Audit Committee also determined that it needed
to restate the company's previously issued consolidated financial
statements and financial data covering these years or periods:
* Consolidated financial statements for each of the fiscal
years ended June 30, 2005 and 2006;
* Selected consolidated financial data for each of the fiscal
years ended June 30, 2003 through 2006; and,
* Interim consolidated financial information for each of the
first three quarters and the related interim periods in the
fiscal years ended June 30, 2006 and 2007.
The company expects to file the restated historical financial
statements and current Annual Report within the 60-day cure period
provided under the Indentures.
Approximately $193.6 million aggregate principal amount of the
notes is outstanding under the Indentures, and all required
interest and principal payments have been made on a timely basis.
A failure by the company to observe any covenant under the
Indentures also constitutes an event of default under the
company's credit facility and could lead to an acceleration of
unpaid principal and accrued interest.
Approximately $83 million remains outstanding under the credit
facility, and all required interest and principal payments have
been made on a timely basis.
About Rural/Metro
Headquartered in Scottsdale, Arizona, Rural/Metro Corporation
(Nasdaq:RURL) -- http://www.ruralmetro.com/-- provides emergency
and non-emergency medical transportation, fire protection, and
other safety services in 23 states and approximately 400
communities throughout the United
States.
* * *
As reported in the Troubled Company Reporter on Sept. 21, 2007,
Standard & Poor's Ratings Services revised its outlook on
Rural/Metro Corp. to negative from stable. S&P also affirmed the
ratings on Rural/Metro, including the 'B' corporate credit
rating. The outlook revision reflects S&P's increased concern
with the company's limited liquidity.
RURAL/METRO: Reduces Term Loan B Credit Facility by $5 Million
--------------------------------------------------------------
Rural/Metro Corporation has made a $5 million unscheduled
principal payment to further reduce debt under its Term
Loan B credit facility.
As part of its ongoing commitment to improve leverage, reduce
interest expense and effectively manage its capital, the company
has made a total of $52 million in unscheduled principal payments,
representing total annual interest savings of approximately
$386,000 at Sept. 28's rates, since the credit facility was issued
in March 2005.
After this payment, the outstanding principal balance of the
credit facility is $83 million.
"We remain highly committed to our strategy to reduce the
company's debt levels and are pleased to continue to generate
consistent cash flows to support this objective," Jack Brucker,
president and chief executive officer, said.
About Rural/Metro
Headquartered in Scottsdale, Arizona, Rural/Metro Corporation
(Nasdaq:RURL) -- http://www.ruralmetro.com/-- provides emergency
and non-emergency medical transportation, fire protection, and
other safety services in 23 states and approximately 400
communities throughout the United States.
* * *
As reported in the Troubled Company Reporter on Sept. 21, 2007,
Standard & Poor's Ratings Services revised its outlook on
Rural/Metro Corp. to negative from stable. S&P also affirmed the
ratings on Rural/Metro, including the 'B' corporate credit rating.
The outlook revision reflects S&P's increased concern with the
company's limited liquidity.
SAINT PAUL PLAZA: Case Summary & 12 Largest Unsecured Creditors
---------------------------------------------------------------
Debtor: Saint Paul Plaza, L.L.C.
5817 Allentown Way
Temple Hills, MD 20748
Bankruptcy Case No.: 07-19151
Chapter 11 Petition Date: September 21, 2007
Court: District of Maryland (Greenbelt)
Judge: Wendelin I. Lipp
Debtor's Counsel: Stanton J. Levinson, Esq.
P.O. Box 1746
Silver Spring, MD 20915
Tel: (301) 649-7888
Estimated Assets: $1 Million to $100 Million
Estimated Debts: $1 Million to $100 Million
Debtor's 12 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Eddie J. Johnson Contractor $252,124
8911 Croom Acres Road
Upper Marlboro, MD 20772
Dynamerica Corp. Trade $14,771
3105 Mt. Pleasant Street,
Southwest
Washington, DC 20010
P.E.P.C.O. Utility $9,569
701 9th Street, N.W.
Washington, DC 20068
All Weather Heating Trade $9,265
And Air Conditioning
Texcom, Inc. Trade $4,500
McCormick Paints Trade $3,475
Capitol Building Supply Trade $3,332
Southern Maryland Metal Trade $2,253
Products
G.&C. Concrete, Inc. Trade $2,126
Childcraft Trade $2,093
Atlantic Waste Systems Trade $1,125
Precision Doors Trade $677
SCO GROUP: Names Ken Nielsen as Interim Chief Financial Officer
---------------------------------------------------------------
The SCO Group, Inc. has appointed Ken R. Nielsen as Chief
Financial Officer, effective Oct. 1, 2007. Mr. Nielsen will
initially fill the position in an interim capacity and report to
Darl McBride, President and CEO for The SCO Group.
"Over the past three years, SCO has focused on building a next-
level future for its UNIX platform with exciting new applications
and operating systems for its core enterprise business and
emerging mobile business," said Mr. McBride. "Ken, with his
proven track record of consumer-based experiences, will support
the strategic direction and growth of our consumer- and prosumer-
driven mobility business. He will also bring a wealth of
experience in SEC compliance to SCO, which will prove invaluable
as he directs our regulatory filings through the Chapter 11
reorganization process."
Most recently, Mr. Nielsen was Chief Finance Officer at Forward
Foods, LLC where he developed systems and tools, which directly
increased cash flow for the business. Before that, he worked with
Mrs. Fields' Companies, Inc. for six years, where his strategic
leadership led to improved year-over-year same store sales and
increased international revenue by 25%. He also streamlined the
financial management and reporting infrastructure of Mrs. Fields'
20 business entities while ensuring that the company met all
lender and SEC requirements. Prior to that, he spent time in a
number of senior positions with Echopass, Ernst & Young, Sprint
PCS and Price Waterhouse.
"The SCO Group has a unique opportunity to become a leading
applications provider for the mobile marketplace," said Ken
Nielsen, Chief Financial Officer for The SCO Group. "As an avid
mobile user from my time with Sprint, I am eager to work alongside
Darl to drive this business forward, while supporting the
continued success of SCO's traditional UNIX business."
Mr. Nielsen replaces Bert Young who has left The SCO Group to
pursue new opportunities.
Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq: SCOX)
fka Caldera International Inc. -- http://www.sco.com/-- provides
software technology for distributed, embedded and network-based
systems, offering SCO OpenServer for small to medium business and
UnixWare for enterprise applications and digital network services.
The company and its affiliate filed for Chapter 11 protection on
Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). James E.
O'Neill, Esq. and Laura Davis Jones, Esq. of Pachulski, Stang,
Ziehl & Jones LLP represent the Debtors in their restructuring
efforts. As of Sept. 10, 2007, the Debtors' reported total assets
of $14,800,000 and total debts of $7,500,000.
SCOTTISH RE: Terry Eleftheriou Named Chief Financial Officer
------------------------------------------------------------
Scottish Re Group Limited appointed Terry Eleftheriou as Executive
Vice President and Chief Financial Officer, effective Nov. 12,
2007. Mr. Eleftheriou will be based at the company's Hamilton,
Bermuda headquarters and will join the company in October 1. He
will serve in a transition role until he assumes the CFO position
in November 12.
Terry Eleftheriou, 48, was most recently a group finance executive
with XL Capital where he was responsible for leading a number of
strategic global initiatives to transform and integrate finance
operations and enhance business processes and related controls.
He was also a member of XL's global Finance Executive Council and
Executive Management Group and worked closely with XL's executive
management team and Board of Directors. Prior to joining XL
Capital in November 2003, Mr. Eleftheriou was the CFO of Sage
Insurance Group International and previously was the finance
leader for the retirement services segment of American General
Financial Group. He also occupied a variety of leadership roles
spanning a 15 year career with Ernst & Young where he specialized
in providing assurance and advisory services to insurance and
financial services companies in North America, Europe, and Asia.
Terry Eleftheriou is a Fellow of the Institute of Chartered
Accountants in England and Wales and a member of the Connecticut
Society of Certified Public Accountants. He holds a Bachelor of
Science in Economics from the City University in London, England.
As Scottish Re's Chief Financial Officer, Mr. Eleftheriou will
lead the company's global finance function and will be responsible
for its financial operations, including accounting and reporting,
financial planning and analysis, taxation, audit, and investor and
rating agency relations.
In welcoming Terry Eleftheriou to Scottish Re, George Zippel,
President and Chief Executive Officer, noted, "[Mr. Eleftheriou]
is a proven insurance financial executive who has led and managed
change in dynamic environments across the globe. He will be a
strong business partner for me and the senior leadership team of
Scottish Re. I'm confident Terry will have an immediate and
positive impact as we work to improve our financial, operating and
risk management disciplines and drive profitable growth."
Terry Eleftheriou commented, "I'm excited to be joining Scottish
Re at this juncture in its development and look forward to working
with George Zippel and the rest of the team in re-establishing the
company as a leader in the global life reinsurance industry. We
will build on the existing capabilities of the Company to deliver
against the needs and expectations of our various stakeholders in
order to grow shareholder value."
About Scottish Re
Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a
global life reinsurance specialist. Scottish Re has operating
businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the
United Kingdom, United States, and Singapore. Its flagship
operating subsidiaries include Scottish Annuity & Life Insurance
Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re
Capital Markets, Inc., a member of Scottish Re Group Ltd., is a
registered broker dealer that specializes in securitization of
life insurance assets and liabilities.
On June 30, 2007, Scottish Re reported total assets of
$13.6 billion and shareholder's equity of $1.2 billion.
* * *
As reported in the Troubled Company Reporter on Aug. 24, 2007,
Moody's Investors Service affirmed the ratings of Scottish Re
Group Limited, with the outlook changed to stable from positive,
including its Senior unsecured shelf of (P)Ba3; its subordinate
shelf of (P)B1; its junior subordinate shelf of (P)B1; its
preferred stock of B2; and its preferred stock shelf of (P)B2.
SEA CONTAINERS: Exclusive Plan-filing Period Extended to Dec. 21
----------------------------------------------------------------
The U.S. Bankruptcy Court for the District of Delaware has
extended Sea Containers Ltd.'s exclusive periods to file a Chapter
11 plan through and including Dec. 21, 2007, and solicit
acceptances of that plan through and including Feb. 19, 2008.
Prior to the Court's entry of its order, the Official Committee of
Unsecured Creditors of Sea Containers Services Ltd. reserved its
right to seek termination of the exclusivity period prior to its
expiration, and the right to object to any future requests for
extensions of exclusivity.
"Although the SCSL Committee does not object per se to the Debtors
maintaining exclusivity at this time, the SCSL Committee believes
the circumstances may soon warrant a termination of exclusivity,"
counsel for SCSL Committee, Evelyn J. Meltzer, Esq., at Pepper
Hamilton LLP, in Wilmington, Delaware, told the Court.
As previously reported, Sea Containers informed Judge Carey that
these outstanding issues currently prevent them from filing a
confirmable Chapter 11 plan:
(1) obtaining and analyzing information from the discovery
process necessary to value the Debtors' interests in GE
SeaCo SRL;
(2) gaining better clarity on the validity of GE SeaCo's and
GE Capital Corporation's significant claims against the
estates, including determining whether to estimate the
claims in the bankruptcy court pending an arbitrator's
decision; and
(3) reaching a global settlement among the Debtors, the
Unsecured Committees of Sea Containers Ltd. and Sea
Container Services Ltd. regarding various intercompany
issues and pension and other claims asserted against SCL
and SCSL.
About Sea Containers
Based in Hamilton, Bermuda, Sea Containers Ltd. --
http://www.seacontainers.com/-- provides passenger and freight
transport and marine container leasing. Registered in Bermuda,
the company has regional operating offices in London, Genoa, New
York, Rio de Janeiro, Sydney, and Singapore. The company is
owned almost entirely by United States shareholders and its
primary listing is on the New York Stock Exchange (SCRA and
SCRB) since 1974. On Oct. 3, the company's common shares and
senior notes were suspended from trading on the NYSE and NYSE
Arca after the company's failure to file its 2005 annual report
on Form 10-K and its quarterly reports on Form 10-Q during 2006
with the U.S. Securities and Exchange Commission.
Through its GNER subsidiary, Sea Containers Passenger Transport
operates Britain's fastest railway, the Great North Eastern
Railway, linking England and Scotland. It also conducts ferry
operations, serving Finland and Estonia as well as a commuter
service between New York and New Jersey in the U.S.
Sea Containers Ltd. and two subsidiaries filed for chapter 11
protection on Oct. 15, 2006 (Bankr. D. Del. Case No. 06-11156).
Edmon L. Morton, Esq., Edwin J. Harron, Esq., Robert S. Brady,
Esq., Sean Matthew Beach, Esq., and Sean T. Greecher, Esq., at
Young, Conaway, Stargatt & Taylor, represent the Debtors in
their restructuring efforts.
The Official Committee of Unsecured Creditors and the Financial
Members Sub-Committee of the Official Committee of Unsecured
Creditors of Sea Containers Ltd. is represented by William H.
Sudell, Jr., Esq., and Thomas F. Driscoll, Esq., at Morris,
Nichols, Arsht & Tunnell LLP. Sea Containers Services, Ltd.'s
Official Committee of Unsecured Creditors is represented by
attorneys at Willkie Farr & Gallagher LLP. In its schedules filed
with the Court, Sea Containers disclosed total assets of
$62,400,718 and total liabilities of $1,545,384,083. (Sea
Containers Bankruptcy News, Issue No. 27; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
SHAW GROUP: Posts $62 Million Net Loss in Quarter Ended Feb. 28
---------------------------------------------------------------
The Shaw Group Inc. filed its financial results for the quarter
ended Feb. 28, 2007, with the U.S. Securities and Exchange
Commission on Sept. 28, 2007.
The company reported a $62.5 million net loss on $1.2 billion
revenues for the quarter ended Feb. 28, 2007, compared with a
$21.8 million net income on $1.2 billion revenues for the same
quarter of 2006.
The company recognized an operating loss of $41.5 million and a
net loss of $62.6 million for the three months ended Feb. 28,
2007.
In addition to the company's operating loss, Shaw's net income
also includes:
* a $44.5 million ($26.7 million net of taxes) impairment of
military housing privatization entities; and
* a $13.1 million (including tax expense of $8.6 million)
net income by our Investment in Westinghouse segment.
At Feb. 28, 2007, the company's balance sheet total assets of
$3.5 billion and total liabilities of $2.3 billion, resulting in a
$1.2 billion stockholders' equity.
As of Feb. 28, 2007 and Aug. 31, 2006, the company had restricted
and escrowed cash of $39.2 million and $43.4 million,
respectively, which consisted of:
* $30.3 million and $40.2 million, respectively, in
connection with a power project with which the company has
joint authority with another party to the contract. The
project was substantially completed in 2006. The company
has reached tentative settlements on claims and disputed
amounts with the owner and major subcontractors;
* $1.1 million in each period related to deposits designated
to fund remediation costs associated with a sold property;
and
* The remaining $7.8 million as of Feb. 28, 2007 and
$2.1 million as of Aug. 31, 2006 is related to escrow
amounts contractually required by various other projects.
A full-text copy of the regulatory filing is available for free at
http://ResearchArchives.com/t/s?23d6
About Shaw Group
Based in Baton Rouge, Louisiana, The Shaw Group Inc. (NYSE: SGR)
-- http://www.shawgrp.com/-- provides services to the
environmental, infrastructure and homeland security markets,
including consulting, engineering, construction, remediation and
facilities management services to governmental and commercial
customers. It is also a vertically integrated provider of
engineering, procurement, pipe fabrication, construction and
maintenance services to the power and process industries. The
company segregates its business activities into four operating
segments: Environmental & Infrastructure; Energy & Chemicals;
Maintenance, and Fabrication, Manufacturing & Distribution. In
January 2005, the company sold substantially all of the assets of
its Shaw Power Technologies, Inc. and Shaw Power Technologies
International, Ltd. units to Siemens Power Transmission and
Distribution Inc., a unit of Siemens AG.
The company has operations in Chile, China, Malaysia, the United
Kingdom and, Venezuela, among others.
* * *
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit rating on The Shaw Group Inc. and removed it from
CreditWatch, where it was placed with negative implications in
October 2006. S&P said the outlook is stable.
In addition, 'BB' senior secured debt rating was affirmed after
the $100 million increase to the company's revolving credit
facility.
SHOWCASE INDUSTRIES: Case Summary & 4 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Showcase Industries, Inc.
dba Showcase Beverage
dba Magnolia Ridge Condos
602 Senators Ridge Drive
Dallas, GA 30132
Bankruptcy Case No.: 07-42420
Type of Business: The Debtor's president, Narinder K. Gupta,
filed for Chapter 11 protection on
April 30, 2007 (Bankr. N.D. Ga. Case No.
07-41020).
Chapter 11 Petition Date: September 28, 2007
Court: Northern District of Georgia (Rome)
Judge: Mary Grace Diehl
Debtor's Counsel: James R. McKay, Esq.
Fuller & McKay
P.O. Box 1654
Rome, GA 30162-1654
Tel: (706) 295-1300
Estimated Assets: Less than $10,000
Estimated Debts: $1 Million to $100 Million
Debtor's list of its Four Largest Unsecured Creditors:
Entity Claim Amount
------ ------------
Zions Bank $917,000
P.O. Box 26304
Salt Lake City, UT 84126-0304
First Charter Bank $476,962
P.O. Box 37927
Charlotte, NC 28237-7927
Capital Partners $587,000
c/o John Fowler
2255 Cumberland Parkway
Suite 1200
Atlanta, GA 30339
BB&T $599,000
P.O. Box 580362
Charlotte, NC 28258
SOLECTRON CORP: 634.19 Million Shares Vote for Exchange
-------------------------------------------------------
Computershare Shareholders Services Inc., the exchange agent for
the Flextronics International Ltd. and Solectron Corporation
merger, has calculated preliminary 918,360,722 shares of Solectron
common stock outstanding as of Sept. 27, 2007, the election
deadline, disclosing:
* 634,188,636 of the outstanding Solectron shares have
submitted valid elections to receive Flextronics ordinary
shares;
* 78,459,142 of the outstanding Solectron shares have
submitted valid elections to receive cash; and
* 205,712,944 of the outstanding Solectron shares did not
submit valid elections or submitted elections that are
subject to the guaranteed delivery procedure.Flextronics
Pursuant to the terms of the merger agreement, Solectron
stockholders were entitled to elect to receive either 0.3450 of a
Flextronics ordinary share or $3.89 in cash for each share of
Solectron common stock, subject to proration due to minimum and
maximum limits on the amount of stock consideration and cash
consideration.
Based on the number of valid elections received by the election
deadline and subject to final determination:
* Solectron stockholders who elected to receive stock
consideration will receive Flextronics ordinary shares
with respect to all of their Solectron shares;
* Solectron stockholders who elected to receive cash
consideration will receive cash with respect to all of
their Solectron shares; and
* Solectron stockholders that failed to submit a valid
election will receive cash with respect to all of their
Solectron shares.
The allocation of the consideration to be received by holders of
Solectron common stock may change based upon the elections that
were made subject to guaranteed delivery. The final allocation
will be disclosed after the close of business, today, Oct. 2,
2007.
Flextronics expects to pay approximately $1.07 billion in cash and
issue approximately 221.8 million Flextronics ordinary shares upon
consummation of the merger. No fractional Flextronics ordinary
shares will be issued in the merger.
Instead, each Solectron stockholder that would otherwise be
entitled to receive Flextronics fractional shares will receive
an amount in cash based on the average of the per share closing
prices of Flextronics ordinary shares reported on the NASDAQ
Global Select Market during the 5 consecutive trading days ending
on the trading day immediately preceding the closing date of the
merger.
As provided by the merger agreement, exchangeable shares of
Solectron Global Services Canada Inc., other than exchangeable
shares owned by Solectron, any of its subsidiaries or their
affiliates, will be automatically exchanged for shares of
Solectron common stock, on a one-for-one basis, prior to the
effective time of the merger.
The merger agreement provides that holders of exchangeable shares
were entitled to elect to receive the same consideration in the
merger, and to participate directly in the merger, as a holder of
shares of Solectron common stock.
Therefore, for all purposes above, references to Solectron
stockholders are intended to also include holders of exchangeable
shares.
Solectron stockholders with questions regarding individual
allocation results should contact Innisfree M&A Incorporated toll
free from within the United States and Canada at 877-825-8971.
About Flextronics International
Headquartered in Singapore, Flextronics International Ltd.
(NasdaqGS: FLEX) -- http://www.flextronics.com/-- is an
Electronics Manufacturing Services provider focused on delivering
design, engineering and manufacturing services to automotive,
computing, consumer digital, industrial, infrastructure, medical
and mobile OEMs. Flextronics helps customers design, build, ship,
and service electronics products through a network of facilities
in over 30 countries on four continents.
About Solectron Corporation
Based in Milpitas, California, Solectron Corporation (NYSE: SLR)
-- http://www.solectron.com/-- provides complete product
lifecycle services. The company offers collaborative design and
new product introduction, supply chain management, lean
manufacturing and aftermarket services such as product warranty
repair and end-of-life support to customers worldwide. The
company works with the providers of networking, computing,
telecommunications, storage, consumer, automotive, industrial,
medical, self-service automation and aerospace and defense
products. The company's Lean Six Sigma methodology provides OEMs
with quality, flexibility, innovation and cost benefits that
improve competitive advantage. Solectron operates in more than 20
countries on five continents.
* * *
Moody's Investor Services placed Solectron Corporation's long term
corporate family and probability of default ratings at'B1' in June
2007.
In December 2006, Standard & Poor's assigned a 'BB-' rating on the
company's long term foreign and local issuer credit which still
hold to date. The outlook is stable.
SPECTRUM BRANDS: Agrees to Sell Canadian Home & Garden Division
---------------------------------------------------------------
Spectrum Brands, Inc., has signed a definitive agreement to sell
the Canadian division of its Home & Garden business segment, which
operates under the name Nu-Gro, to a new company formed by RoyCap
Merchant Banking Group and Clarke Inc. This division is a leading
supplier in the Canadian Home & Garden industry, with FY 2006
sales of approximately $100 million across a broad range of
product categories, including fertilizer, grass seed, controls and
ice melt, under brand names such as CIL, Wilson, and Alaskan Ice
Melter. The transaction is anticipated to close by Oct. 31, 2007,
subject to certain regulatory approvals. Financial terms were not
disclosed.
"The Canadian division of our Home & Garden business segment is a
valuable business that enjoys strong consumer recognition, a
national distribution network and a broad and loyal customer base,
and we are pleased to have found in the RoyCap/Clarke partnership
a buyer that is a good fit for this asset," Kent Hussey, Spectrum
Brands' Chief Executive Officer, commented. "Following the sale
of this division, which was not a profit contributor in our most
recent fiscal year, Spectrum's remaining U.S.-based Home & Garden
business will be a more sharply focused company with improved
operating margins and returns on invested capital."
Net proceeds from the sale will be utilized to reduce outstanding
debt, a key strategic priority for Spectrum Brands. The company
currently estimates that the sale will reduce FY 2008 peak
seasonal borrowing needs by approximately $45 million as a result
of cash proceeds from the transaction and the elimination of the
working capital requirement for the Canadian Home & Garden
business in the 2008 lawn and garden selling season.
National Bank Financial Inc. and Sutherland, Asbill & Brennan LLP
served as advisors to Spectrum Brands on the transaction.
About Spectrum Brands Inc.
Headquartered in Atlanta, Georgia, Spectrum Brands Inc. (NYSE:
SPC) -- http://www.spectrumbrands.com/-- is a consumer products
company and a supplier of batteries and portable lighting, lawn
and garden care products, specialty pet supplies, shaving and
grooming and personal care products, and household insecticides.
Spectrum Brands' products are sold by the world's top 25 retailers
and are available in more than one million stores in 120 countries
around the world. The company has manufacturing and distribution
facilities in China, Australia and New Zealand, and sales offices
in Melbourne, Shanghai, and Singapore. The company has
approximately 8,400 employees worldwide.
* * *
Moody's Investor Services placed Caa1 on Spectrum Brands Inc.'s
long term corporate family rating and probability of default on
March 2007. The outlook is stable.
Standard and Poor's assigned CCC+ on its long term foreign and
local issuer credit on Feb 2007. The outlook is negative.
STANDARD PACIFIC: Posts $165.9 Mil. Net Loss in Qtr. Ended June 30
------------------------------------------------------------------
Standard Pacific Corp. reported a net loss of $165.9 million for
the quarter ended June 30, 2007, compared to net income of
$96.5 million in the year earlier period.
Homebuilding revenues for the 2007 second quarter were
$694.8 million versus $1.0 billion last year. The company's
results for the 2007 second quarter include non-cash pretax
impairment charges of $306.0 million, of which $223.2 million
related to consolidated real estate inventories, $48.1 million
related to the company's share of joint venture inventory
impairment charges, $5.3 million related to land deposit write-
offs and $29.4 million related to goodwill impairments.
"Challenging market conditions across most of the country continue
to put pressure on our operating results," commented Stephen J.
Scarborough, chairman, chief executive officer and president of
the company. "High levels of new and existing home inventory on
the market, increasing mortgage interest rates, a tightening of
lending standards and reduced housing affordability in many
markets have all contributed to weak new home sales. This
environment has resulted in significant price competition leading
to margin erosion and further impairments of the company's
inventory holdings."
"During the quarter, net new home orders were down 9% year-over-
year companywide. Orders were up 23% in California, while down
15% in the Southwest and down 22% in the Southeast. Our
cancellation rate for the second quarter was 28% compared to 36%
last year."
"In an ongoing effort to strengthen our balance sheet we continued
to focus on closing our backlog, reducing our speculative home
inventory and lowering our supply of owned and controlled land
companywide, with the goal of reducing inventories, generating
cash and paying down debt. During the quarter, we were able to
reduce our spec homes under construction by 28% year-over-year and
lower our total lot position by 24% from the year-ago level
resulting in a continued reduction in our revolver borrowings,
which are down $340 million over the last three quarters."
The 31% decrease in homebuilding revenues for the 2007 second
quarter was primarily attributable to a 38% decrease in new home
deliveries, exclusive of joint ventures, and a 7% decrease in the
company's consolidated average home price to $349,000. These
decreases were partially offset by a $108.9 million year-over-year
increase in land sale revenues. Land sales totaled $111.7 million
for the quarter and represented the sale of approximately 2,400
lots.
The company's number of completed and unsold homes, excluding
joint ventures, as of June 30, 2007, increased 47% compared to the
year earlier period while decreasing 19% from the 2007 first
quarter. At the same time, the number of homes under construction
as of June 30, 2007, decreased 47%, exclusive of joint ventures,
from the year earlier period to 3,655 units in response to the
company's increased focus on managing the level of its speculative
inventory and its desire to better match new construction starts
with the lower sales volume.
In the 2007 second quarter, the company's financial services
subsidiary generated a nominal pretax profit of $187,000 compared
to $744,000 in the year earlier period. The decrease in
profitability was driven primarily by a 19% lower level of loan
sales and a decrease in margins, in basis points, on loans sold.
The decrease in loan sales was primarily the result of a 38%
decrease in consolidated new home deliveries which was partially
offset by increased capture rates.
At June 30, 2007, the company's consolidated balance sheet showed
$4.02 billion in total assets, $2.40 billion in total liabilities,
$57.6 million in minority interests, and $1.56 billion in total
stockholders' equity.
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?23dc
About Standard Pacific
Headquartered in Irvine, California, Standard Pacific Corp. (NYSE:
SPF) -- http://www.standardpacifichomes.com/-- is a homebuilder.
The company operates in many of the largest housing markets in the
country with operations in major metropolitan areas in California,
Florida, Arizona, the Carolinas, Texas, Colorado, Nevada and
Illinois. The company provides mortgage financing and title
services to its homebuyers through its subsidiaries and joint
ventures, Standard Pacific Mortgage, Inc., Home First Funding, SPH
Home Mortgage, Universal Land Title of South Florida and SPH
Title.
* * *
As reported in the Troubled Company Reporter on Sept. 27, 2007,
Standard & Poor's Ratings Services assigned its 'B+' rating to the
$100 million 6% convertible senior subordinated notes due 2012
issued by Standard Pacific Corp.
SWEET TRADITIONS: Court Approves Blackwell Sanders as Counsel
-------------------------------------------------------------
The U.S. Bankruptcy Court for the Eastern District of Missouri
gave Sweet Traditions, L.L.C. and Sweet Traditions of Illinois,
L.L.C., permission to employ Blackwell Sanders LLP as their
bankruptcy counsel.
Blackwell Sanders is expected to:
a. advise the Debtors with respect to their rights and
obligations as the Debtors-in-possession and regarding other
matters of bankruptcy law;
b. prepare and file on behalf of the Debtors any schedules,
asset sale pleadings, plans, or other pleadings and
documents which may be required in the proceedings;
c. represent the Debtors at the first meeting of creditors, and
any other hearings in the cases;
d. represent the Debtors in adversary proceedings and other
contested bankruptcy matters; and
e. represent the Debtors in the above matters, and any other
matter that may arise in connection with the Debtors'
reorganization proceedings and their business operations.
The firm will bill the Debtors at hourly rates ranging from $90 to
$450 for attorneys and paraprofessionals. David A. Warfield's,
Esq., a partner at Blackwell Sanders, will bill $435 per hour for
this engagement.
To the best of the Debtors' knowledge, the firm has not
represented any creditors of the Debtors in connection with any
matters related or adverse to the Debtors.
The firm can be reached at:
David A. Warfield, Esq.
Blackwell Sanders LLP
720 Olive Street, Suite 2400
St. Louis, MO 63101
Tel: 314-345-6000
Fax: 314-345-6060
http://www.blackwellsanders.com/
Saint Louis, Missouri-based Sweet Traditions, L.L.C. --
http://www.sweettraditions.com/-- and its debtor-affiliate, Sweet
Traditions of Illinois, L.L.C., are franchisees of Krispy Kreme
Doughnuts, Inc, which owns, operates and franchises specialty
retail stores offering doughnuts.
The Debtors filed for Chapter 11 bankruptcy protection on Sept. 4,
2007 (E.D. Missouri Case Nos. 07-45787 and 07-45789). The
Debtors' schedules disclose total assets of $9,391,175 and total
liabilities of $51,552,132.
SWEET TRADITIONS: Committee Taps Shughart Thomson as Counsel
------------------------------------------------------------
The Official Joint Committee of Unsecured Creditors of Sweet
Traditions, L.L.C. and Sweet Traditions of Illinois, L.L.C. asks
the U.S. Court for the Eastern District of Missouri for permission
to employ Shughart Thomson & Kilroy, PC as committee counsel.
Shughart Thomson will:
a. provide legal advice to the Committee with respect to its
duties and powers in the case along with advising the
Committee on local practices and procedures in the district;
b. assist the Committee in its investigation of the acts,
conduct, assets, liabilities and financial condition of the
Debtors, the operation of the Debtors' businesses, the
disposition of the Debtors' assets, and any other matter
relevant to the case or to the confirmation of a plan of
reorganization;
c. participate in the process for any sale of assets and
confirmation of any plan of reorganization;
d. assist and advise the Committee in its examination and
analysis of the conduct of the Debtors' affairs and the
causes of its insolvency;
e. assist and advise the Committee with regard to its
communications to the general creditor body regarding the
Committee's recommendations on any material developments and
decisions in the case;
f. review and analyze all applications, motions, pleadings,
disclosure statements and plans of reorganization filed with
the Court by the Debtors or other third parties;
g. prosecute or defend claims or causes of action that are
in
the interest of unsecured creditors; and
h. perform other legal services as may be required in the
interest of unsecured creditors.
The firm will bill the Debtor based on the firm's applicable
hourly rates. Lead counsel for the Committee will be Jonathan
Margolies, Esq., whose current hourly rate is $325.
To the best of the Committee's knowledge, the firm does not
represent any other entity having an adverse interest in
connection with the case.
The firm can be reached at:
Jonathan Margolies, Shareholder
Shughart Thomson & Kilroy, PC
12 Wyndotte Plaza, 120 West 12th Street
Kansas City, MO 64105
Tel: (816) 421-3355
Fax: (816) 374-0509
http://www.stklaw.com/
Saint Louis, Missouri-based Sweet Traditions, L.L.C. --
http://www.sweettraditions.com/-- and its debtor-affiliate, Sweet
Traditions of Illinois, L.L.C., are franchisees of Krispy Kreme
Doughnuts, Inc, which owns, operates and franchises specialty
retail stores offering doughnuts.
The Debtors filed for Chapter 11 bankruptcy protection on Sept. 4,
2007 (E.D. Missouri Case Nos. 07-45787 and 07-45789). David A.
Warfield, Esq. and Laura Toledo, Esq. at Blackwell Sanders, L.L.P.
represent the Debtors in their restructuring efforts. The
Debtors' schedules disclose total assets of $9,391,175 and total
liabilities of $51,552,132.
T&R FLAGG: Case Summary & 18 Largest Unsecured Creditors
--------------------------------------------------------
Debtor: T.&R. Flagg Logging, Inc.
53 Diamond Road
Livermore Falls, ME 04254
Bankruptcy Case No.: 07-20858
Chapter 11 Petition Date: September 21, 2007
Court: District of Maine (Portland)
Debtor's Counsel: Richard J. O'Brien, Esq.
Linnell, Choate & Webber, L.L.P.
83 Pleasant Street, P.O. Box 190
Auburn, ME 04212
Tel: (207) 784-4563
Estimated Assets: $1 Million to $100 Million
Estimated Debts: $1 Million to $100 Million
Debtor's 18 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
Milton Cat Trade debt $60,604
100 Quarry Drive
Milford, MA 01757
Hall & Smith Energy, L.L.C. Trade debt $24,374
Main Street, P.O. Box 659
Jackman, ME 04945
Chadwick-BaRoss Trade debt $9,429
160 Warren Avenue
Wetsbrook, ME 04098
Jackman Equipment, Inc. Trade debt $8,922
Motor Supply Co. Trade debt $8,325
Fabian Oil Trade debt $6,883
Pitcher Perfect Tire Service Trade debt $6,676
Kennebec Service Center Trade debt $4,593
Center
West Mount, Inc. Trade debt $4,457
Brake Service & Parts, Inc. Trade debt $3,680
Paradise Auto Parts Trade debt $3,571
Maine Commercial Tire, Inc. Trade debt $2,333
Shelley's Garage Trade debt $1,886
Complete Hydraulics, Inc. Trade debt $1,584
R.H. Foster Energy, L.L.C. Trade debt $902
Atlantic Communications, Trade debt $806
Inc.
Verizon Trade debt $236
N.H. Bragg & Sons Trade debt $105
TAL ENTERPRISES: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: TAL Enterprises, LLC
1505 Southwest 28th Terrace
Cape Coral, FL 33914
Bankruptcy Case No.: 07-09014
Type of Business: The Debtor offers supervisory services
of on-shore drilling rigs, as well as
oil and gas planning, permitting, and
production.
Chapter 11 Petition Date: September 28, 2007
Court: Middle District of Florida (Fort Myers)
Judge: Alexander L. Paskay
Debtor's Counsel: Richard Johnston, Jr.
Kiesel Hughes & Johnston
P.O. Box 1000
Fort Myers, FL 33902
Tel: (239) 337-3900
Fax: (239) 337-7968
Total Assets: $13,100,000
Total Debts: $8,621,635
The Debtor does not have any creditors who are not insiders.
TERWIN MORTGAGE: S&P Lowers Ratings on 35 Class Certificates
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on 35 of
the classes from four Terwin Mortgage Trust transactions issued in
2006.
The downgrades reflect the poor performance of all seven loan
group structures from these transactions, six of which are backed
by 30-year closed-end second-lien mortgages; the remaining loan
group, series 2006-1 loan group 1, is backed by subprime
collateral. Monthly net losses for all seven structures have
continued to exceed the monthly excess cash flow and have
deteriorated available credit support. Subordination,
overcollateralization, and excess interest cash flow provide
credit support for these transactions.
S&P lowered its 'AAA' ratings on three classes from series 2006-6,
loan group 2, to 'AA-'. This CES structure experienced its first
loss four months after issuance. Since that time, losses have
continued to build and have steadily deteriorated available credit
support, preventing O/C from reaching its target of $5.2 million.
This transaction currently has no O/C. In addition, as a result of
losses, the class II-B-5 and II-B-6 balances were reduced to zero
and class II-B-4 has incurred a principal write-down. As of the
August 2007 remittance period, cumulative losses were $8.09
million, or 8.09% of the original principal balance, and the pool
had paid down to
$63.19 million.
S&P lowered its ratings to 'D' on three of the affected classes
because they incurred principal write-downs during the August 2007
remittance period.
As of the August 2007 distribution period, total delinquencies on
all four transactions ranged from approximately 10.45% (series
2006-6, loan group 1) to 23.21% (series 2006-1, loan group 1) of
the current principal balances, while severe delinquencies (90-
plus days, foreclosures, and REOs) ranged from approximately 5.22%
(series 2006-1, loan group 2) to 16.39% (series 2006-1, loan group
1). Cumulative losses continue to increase on all deals and
ranged from approximately 0.68% (series 2006-1, loan group 1) to
8.09% (series 2006-6, loan group 2) of the respective original
principal balances.
Ratings Lowered
Terwin Mortgage Trust
Rating
------
Series Class To From
------ ----- -- ----
2006-1 I-B-2 BB+ BBB+
2006-1 I-B-3 BB BBB
2006-1 I-B-4, I-B-5 B BBB-
2006-1 II-B-1 BB+ BBB-
2006-1 II-B-2 B BB
2006-1 II-B-3 CCC B
2006-6 I-B-1 BBB- A-
2006-6 I-B-2 B+ BBB+
2006-6 I-B-3 CCC BBB
2006-6 I-B-4 CCC B
2006-6 I-B-6 D CCC
2006-6 II-A-1, II-A-2, II-G AA- AAA
2006-6 II-M-1a, II-M-1b BBB- AA
2006-6 II-M-2 BB A
2006-6 II-M-3 CCC BB+
2006-6 II-B-1 CCC B
2006-8 I-M-3 A A+
2006-8 I-B-1 BB+ A-
2006-8 I-B-2 CCC BB+
2006-8 I-B-3 CCC B
2006-8 I-B-4 CCC B
2006-8 I-B-6 D CCC
2006-8 II-M-1 A AA
2006-8 II-M-2 BB A
2006-8 II-M-3 B BB+
2006-8 II-B-1 CCC B
2006-8 II-B-2 CCC B
2006-4SL B-1 BBB+ A-
2006-4SL B-2 BB BBB+
2006-4SL B-3 CCC BB+
2006-4SL B-6 D CCC
TIERRA HOLDINGS: Voluntary Chapter 11 Case Summary
--------------------------------------------------
Debtor: Tierra Holdings, Ltd.
218 East Bearss Avenue, Suite 409
Tampa, FL 33613
Bankruptcy Case No.: 07-08989
Chapter 11 Petition Date: September 28, 2007
Court: Middle District of Florida (Tampa)
Judge: Paul M. Glenn
Debtor's Counsel: David W. Steen, Esq.
602 South Boulevard
Tampa, FL 33606-2630
Tel: (813) 251-3000
Estimated Assets: $1 Million to $100 Million
Estimated Debts: $1 Million to $100 Million
The Debtor did not file a list of its 20 largest unsecured
creditors.
TRW AUTOMOTIVE: Fitch Holds 'BB' Issuer Default Rating
------------------------------------------------------
Fitch Ratings affirmed these ratings on TRW Automotive Holdings
Corp. and TRW Automotive Inc.:
TRW Automotive Holdings Corp.
-- Issuer Default Rating at 'BB'.
TRW Automotive Inc.
-- Issuer Default Rating at 'BB';
-- Senior secured revolving credit facility at 'BB+';
-- Senior secured term loan A facility at 'BB+';
-- Senior secured term loan B facility at 'BB+';
-- Senior unsecured notes at 'BB-'.
Fitch's rating actions affect approximately $3 billion in total
debt. The Rating Outlook is Stable.
Fitch's ratings reflect TRW's relatively diverse customer base,
global manufacturing presence, the company's technology-driven
products and healthy liquidity. A substantial book of business
outside of North America and continued healthy demand for safety
related products partially offsets significant declines in North
American OEM customers' volumes as well as industry cost
challenges. While the company's margins have declined versus
year-ago results, profitability remains above average for an
automotive supplier but is at the low end of the credit category.
The Stable Rating Outlook is based on TRW's healthy liquidity
position, which should provide the company with a buffer if
industry fundamentals were to erode materially. In addition,
current credit market conditions should have little direct impact
on TRW's liquidity as the company refinanced its bonds in March
and its bank facility in May.
Rating concerns include debt levels, margin pressures from price
competition and raw materials, customers' production volumes, the
potential for increased capital expenditures as customers reduce
product cycle times and the risk of work stoppages due to a
financially stressed base of suppliers other than TRW. In
addition, Fitch expects the company to generate limited free cash
flow through at least 2008, enabling only modest debt reduction.
For 2005 and 2006, TRW's Free Cash Flow was $9 million and
$54 million, respectively. Given recent margin erosion, the
working capital investment of a growing business and average
annual capital expenditure increases of approximately 4%, Fitch
believes TRW's ability to generate Free Cash Flow is limited
through at least 2008. Even though 4% average annual growth in
capital expenditures is on par for TRW, capital investment may be
subject to increase as D3 customers could succeed in reducing
product development cycle times. While this has been a stated
objective of the D3 for many years with only limited success
relative to the leaps that Japanese competitors have produced, the
D3's objective to deliver quality new products more frequently may
come to fruition. However, since the company has significant
exposure to Toyota, Honda and Nissan, TRW already has experience
with more advanced product development cycle times.
Including the premiums from the recent refinancing, Total Adjusted
Debt levels have increased slightly versus Fitch's previous
expectations. In addition, both coverage and leverage metrics are
at the lower end of the rating category. Trailing twelve-month
free cash flow was -$157 million, largely due to working capital
investment. TRW's Total Adjusted Debt levels over the same period
increased by $134 million. However, the company successfully
refinanced its entire capital structure in the first half of 2007.
Because of the refinancing, but also due to lower Operating EBITDA
margin, coverage ratios have improved modestly while leverage
ticked slightly higher. Given Fitch's limited Free Cash Flow
expectations, debt reduction over the next 18 months is likely to
be only modest.
In March of this year, TRW Automotive Inc. replaced its existing
senior unsecured and senior subordinated debt with new senior
unsecured notes. TRW also replaced $2.5 billion in existing bank
facilities with the same amount in new facilities. The new bank
lines closed on May 9, 2007. The new capital structure provides
TRW with a lower cost of capital, extended maturities, and
loosened covenants providing greater financial flexibility.
At the end of the second quarter of 2007, TRW had approximately
$1.4 billion of committed availability, including $1.1 billion
under its $1.4 billion revolver and $300 million in committed
securitization programs. Under TRW's U.S. securitization
facility, all $209 million of receivables were eligible and
available for funding and there was $127 million outstanding at
the end of the quarter. In addition, approximately 122 million
euros of its EUR155 million programs and all of the 25 million
British pounds program were available under the European
facilities. As of June 29, TRW had nothing outstanding on any of
its European A/R programs. Including the cash and marketable
securities balance of $284 million, total liquidity at the end of
the second quarter of 2007 was approximately $1.7 billion.
As of June 29, the company had $1.3 billion in secured bank debt,
$1.5 billion in senior unsecured notes, and $0.2 billion in short
term debt, stub debt after tender offers and capital leases, all
totaled equaling $3 billion of debt which is nearly unchanged from
the year ago period. TRW has no major maturities until 2012. The
company was well within its financial covenants at the end of the
second quarter.
TRW has one of the more diverse customer bases in the Fitch
supplier universe. The company supplies more than 40 major
vehicle manufacturers and 250 nameplates and holds leading
positions in all of its primary product categories. In 2006,
sales to customers other than Ford and General Motors accounted
for 74.3% of total revenue. Only 14.6% and 11.1% of the company's
2006 revenue was attributable to Ford and General Motor's,
respectively. Revenue attributable to North America was only
about one-third of TRW's total in 2006. Europe accounted for 57%
while Asia and South America represented 7% and 3% of 2006
revenue, respectively.
Demand remains strong for components and systems relating to
safety and fuel economy. Consumer advocacy groups, the National
Highway Transportation and Safety Administration and other
industry groups as well as government legislation spur demand for
TRW's safety related products. Higher gasoline prices and clean
air legislation creates demand for the company's engine
components. As a result, the company's revenue has grown since
2001 while Ford and GM unit volumes have suffered significant
declines.
TRW does not provide a booked new business sales number as several
of its peers do but the company does guide to 4% long term
annualized sales growth. By comparison, the compound annualized
growth rate of TRW's sales was 6.1% over the last 5 years.
Automotive suppliers generally have some degree of revenue
visibility given the nature of the business, e.g. long-term
contracts, long product lead times and the tendency of the
automakers to use the incumbent suppliers of a current vehicle
program for the successor program. Assuming the normal price
reductions of the industry at around 3%, plus vehicle program
attrition, TRW's 4% long-term revenue growth guidance implies that
the company benefits from a consistent, significant book of new
business. Fitch views annualized revenue growth of 4% as
reasonable for TRW. Fitch expects to see sales growth continue due
to increasing penetration of foreign automakers, demand for
products that address safety and emissions legislation, higher
sales of complete modules and TRW's product innovation.
TYSON FOODS: John Tyson to Continue Leading Board of Directors
--------------------------------------------------------------
Tyson Foods, Inc., disclosed that John Tyson will continue as the
company's Chairman of the Board, but has made the decision to
serve in a non-executive capacity.
Building on the succession planning started last year when the
duties of CEO were turned over to Richard L. "Dick" Bond, John
Tyson will discontinue his remaining responsibilities as an
executive officer of the company. This includes having senior
executives who have been reporting to him, including the company's
General Counsel and the Senior Vice President of External
Relations, now report to the CEO.
As part of the change in responsibilities, John Tyson will provide
advisory services to the company under the terms of a new
contract, which took effect on Sept. 28, 2007. This replaces,
four months early, his previous contract that was scheduled to
expire in February 2008 as well as the commitment to enter into a
ten year senior executive employment agreement, and enables the
company to begin the new fiscal year under this revised
organizational structure. The new contract makes some adjustments
in John Tyson's compensation, which Tyson Foods officials believe
are both favorable to and in the best interests of the company.
"The decision to relinquish my duties as an executive officer is
part of the evolution of the company's succession planning," John
Tyson said. "I have full confidence in Dick Bond and the rest of
the management team to continue to move this company forward. As
Chairman of the Board of Tyson Foods I will remain involved in
overseeing the strategic direction of the company."
"I thank John for his leadership and the foundation he's
established as Chairman," Mr. Bond said. "I personally appreciate
the support he's given me as CEO and look forward to continuing to
work with him as Chairman of our Board. Because of the hard work
of the entire Tyson team, the company returned to profitability in
fiscal 2007, which ends this week, and we look forward to even
more improvement in the year ahead."
John Tyson, 54, joined the company's board of directors in 1984.
After serving in various executive capacities, Mr. Tyson became
Chairman in 1998. He served as Chairman, President and CEO
beginning in 2000 and served as Chairman and CEO from 2001 to
2006.
Based in Springdale, Arkansas, Tyson Foods, Inc. (NYSE:TSN) --
http://www.tysonfoods.com/-- is a processor and marketer of
chicken, beef, and pork. The company produces a wide variety of
protein-based and prepared food products, which are marketed
under the "Powered by Tyson(TM)" strategy. The company has
operations in China, Japan, Singapore, South Korea, Taiwan, and
the United Kingdom.
* * *
As reported in the Troubled Company Reporter on Aug. 24, 2007,
Moody's Investors Service affirmed Tyson Foods Inc.'s ratings,
including its Ba1 corporate family rating and Ba1 probability of
default rating. The rating outlook is negative.
WBCMT: Fitch Affirms Low-B Rating on Three Class Certificates
-------------------------------------------------------------
Fitch Ratings upgraded Wachovia's (WBCMT) commercial mortgage
pass-through certificates, series 2003-C3, as:
-- $12.9 million class E to 'AAA' from 'AA+';
-- $10.5 million class F to 'AA+' from 'AA';
-- $12.9 million class G to 'AA-' from 'A+'.
In addition, Fitch affirmed these classes:
-- $163.8 million class A-1 at 'AAA';
-- $477.8 million class A-2 at 'AAA';
-- $841.9 million class IO-I at 'AAA';
-- $553.7 million class IO-II at 'AAA';
-- $36.3 million class B at 'AAA';
-- $12.9 million class C at 'AAA';
-- $25.8 million class D at 'AAA';
-- $12.9 million class H to at 'A';
-- $22.3 million class J at 'BBB+';
-- $9.4 million class K at 'BBB';
-- $7.0 million class L at 'BBB-';
-- $2.3 million class M at 'BB+';
-- $7.0 million class N at 'BB';
-- $4.7 million class O at 'B+'.
Fitch does not rate the $23.4 million class P certificates.
The rating upgrades reflect increased subordination levels due to
scheduled amortization, payoffs, as well as the additional
defeasance of twelve loans (10.4%) since Fitch's last rating
action. As of the September 2007 distribution date, the pool's
aggregate certificate balance has decreased 10.2% to
$841.9 million from $937.3 million. To date, twenty-one loans
(20.2%) have defeased, including the Residence Inn Portfolio
(3.7%), a credit-assessed loan.
Currently, there is one specially serviced loan (0.6%) in the
pool. The loan (0.6%) is collateralized by a 30-unit apartment
building in Hoboken, NJ. The loan transferred to special
servicing in October 2006 due to delinquency, however, the
borrower has since brought the loan current. Fitch does not
currently project losses.
WELLS FARGO: Fitch Rates $17.5 Million Class I-B-4 Certs. at BB
---------------------------------------------------------------
Fitch rated Wells Fargo's mortgage pass-through certificates,
series 2007-14, as:
Group I:
-- $4,825,242,729 classes I-A-1 through I-A-57, I-A-R, and I-
A-PO senior certificates 'AAA';
-- $92,505,000 class I-B-1 'AA';
-- $32,502,000 class I-B-2 'A';
-- $12,500,000 class I-B-3 'BBB';
-- $17,501,000 class I-B-4 'BB';
-- $7,501,000 class I-B-5 'B'.
Group II:
-- $550,669,278 classes II-A-1 through II-A-3 and II-A-PO
senior certificates 'AAA'.
The 'AAA' ratings on the Group I senior certificates reflect the
3.50% subordination provided by the 1.85% class I-B-1, 0.65% class
I-B-2, 0.25% class I-B-3, 0.35% privately offered class I-B-4,
0.15% privately offered class I-B-5 and 0.25% privately offered
class I-B-6. The ratings on the class I-B-1, I-B-2, I-B-3, I-B-4,
and I-B-5 certificates are based on their respective
subordination. Class I-B-6 is not rated by Fitch. The 'AAA'
ratings on the Group II senior certificates reflect the 1.75%
subordination provided by the 1.0% non-offered class II-B-1, 0.35%
non-offered class II-B-2, 0.10% non-offered class II-B-3, 0.15%
non-offered class II-B-4, 0.05% non-offered class II-B-5 and 0.10%
non-offered class II-B-6. Classes II-B-1 through II-B-6 are not
rated by Fitch.
This transaction contains certain classes designated as
Exchangeable REMIC certificates and Exchangeable Certificates.
Exchangeable REMIC Certificates: I-A-3 through I-A-26, II-A-2 and
II-A-3.
Exchangeable Certificates: I-A-1, I-A-2, I-A-27 through I-A-57 and
II-A-1.
All other classes are regular certificates.
All or a portion of certain classes of offered exchangeable REMIC
certificates may be exchanged for a proportionate interest in the
related exchangeable certificates. All or a portion of the
exchangeable certificates may also be exchanged for the related
offered exchangeable REMIC certificates in the same manner. This
process may occur repeatedly. The classes of offered exchangeable
REMIC certificates and of exchangeable certificates that are
outstanding at any given time, and the outstanding principal
balances and notional amounts of these classes, will depend upon
any related distributions of principal, as well as any exchanges
that occur. Offered exchangeable REMIC certificates and
exchangeable certificates in any combination may be exchanged only
in the proportions shown in the governing documents. Holders of
exchangeable certificates will be the beneficial owners of a
proportionate interest in the certificates in the related
combination group and will receive a proportionate share of the
distributions on those certificates.
With respect to any distribution date, the aggregate amount of
principal and interest distributable to, and amount of principal
and interest losses and interest shortfalls on, all of the
exchangeable certificates in any exchangeable combination on such
distribution date will be identical to the aggregate amount of
principal and interest distributable to, and amount of principal
and interest losses and interest shortfalls on, all of the
exchangeable REMIC certificates in the related REMIC combination
on such distribution date. Fitch believes the amount of credit
enhancement available will be sufficient to cover credit losses.
The ratings also reflect the high quality of the underlying
collateral, the integrity of the legal and financial structures,
and the primary servicing capabilities of Wells Fargo Bank, N.A.
(WFB; rated 'RPS1' by Fitch).
Group I consists of 8,107 fixed interest rate, first lien mortgage
loans, with an original weighted average term to maturity of
approximately 30 years. The aggregate unpaid principal balance of
the pool is $5,000,252,383 as of Sept. 1, 2007, and the average
principal balance is $616,782. The weighted average original
loan-to-value ratio of the loan pool is approximately 72.93%. The
weighted average coupon of the mortgage loans is 6.514%, and the
weighted average FICO score is 750. The states that represent the
largest geographic concentration are California (27.97%), New York
(10.08%), Virginia (7.66%), and Maryland (5.01%). All other
states represent less than 5% of the outstanding balance of the
pool.
Group II consists of 863 fixed interest rate, first lien mortgage
loans, with an original WAM of approximately 15 years. The
aggregate unpaid principal balance of the pool is $560,478,014 as
of the cut-off date, and the average principal balance is
$649,453. The weighted average OLTV of the loan pool is
approximately 63.26%. The WAC of the mortgage loans is 6.031%,
and the weighted average FICO score is 752. The states that
represent the largest geographic concentration are California
(21.43%), New York (5.13%), and New Jersey (5.11%). All other
states represent less than 5% of the outstanding balance of the
pool.
All of the mortgage loans were generally originated in conformity
with underwriting standards of WFB. WFB sold the loans to Wells
Fargo Asset Securities Corporation, a special purpose corporation,
who deposited the loans into the trust. The trust issued the
certificates in exchange for the mortgage loans. WFB will act as
servicer and custodian, and HSBC Bank USA, National Association
will act as trustee. Elections will be made to treat the trust as
two separate real estate mortgage investment conduits (REMICs) for
federal income tax purposes.
WELWIND ENERGY: Posts CDN$1.6 Million in Quarter Ended June 30
--------------------------------------------------------------
Welwind Energy International Corporation reported a net loss of
CDN$1,645,820 for the second quarter ended June 30, 2007, compared
with a net loss of CDN$667,525 for the same period last year.
Revenue increased to CDN$48,861 for the second quarter of 2007,
compared with revenues of CDN$33,353 for the same period in 2006.
General and administrative expenses incurred during the three
months ended June 30, 2007, totaled CDN$1,592,894.
At March 31, 2007, the company's consolidated balance sheet showed
CDN$2,889,561 in total assets, CDN$514,438 in total liabilities,
and CDN$2,375,123 in total stockholders' equity.
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?23d7
Going Concern Doubt
Manning Elliott LLP, in Vancouver, Canada, expressed substantial
doubt about Welwind Energy International Corporation'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
significant operating losses and the need for additional
equity/debt financing to sustain operations.
About Welwind Energy
Headquartered in Maple Ridge, British Columbia, Canada, Welwind
Energy International Corp., fka Vitasti Inc., (OTC BB: WWEI) was
founded in 2005 to build, own and operate wind farms on
an international scale. Its current projects include bridging the
North America-China link by building wind farms in China along the
South China Sea.
WESTMORELAND COAL: Restates Consolidated Financial Statements
-------------------------------------------------------------
Westmoreland Coal Company determined that it will restate its
consolidated financial statements for the year ended Dec. 31,
2006, to correct an error in the computation of post-retirement
medical benefit liabilities.
The determination to restate was approved by the company's board
of directors on Sept. 17, 2007, upon the recommendation of the
company's management. The audit committee of the company's board
of directors and the company's board of directors have discussed
this matter with the company's independent registered public
accounting firm, KPMG LLP.
The company found that a group of 131 retirees eligible for post-
retirement medical benefits had been omitted from census data used
to calculate the liability.
The error was discovered by the company's actuaries and management
during a routine review of one of the company's post-retirement
plans.
The company estimates that the error results in an understatement
of its post-retirement medical liability and shareholders' deficit
at Dec. 31, 2006, of:
-- approximately $31.4 million and an understatement of
expenses by approximately $1.5 million in 2006;
-- $1.3 million in 2005 and $1.4 million in 2002.
Accordingly, the financial statements for the years ended
Dec. 31, 2006, 2005, and 2004, and the independent auditors'
report relating to such periods included in the company's 2006
Annual Report on Form 10-K and the related financial information
included in that report, along with the company's Quarterly Report
on Forms 10-Q for the quarters ended March 31, 2007, and June 30,
2007, should no longer be relied upon.
The company is working to complete its restatement, file an
amendment to the company's Annual Report on Form 10-K for the year
ended Dec.. 31, 2006, and the company”s Quarterly Report on Forms
10-Q for the quarters ended March 31, 2007, and June 30, 2007, and
file its Quarterly Report on Form 10-Q for the quarter ended Sept.
30, 2007, promptly as possible.
The company's proposed rights offering, which was approved by
shareholders in August, will be delayed pending completion of the
restatement. It is the intent of the company that the offering
commence as promptly as possible following the filing of the third
quarter Form 10-Q.
In connection with the rights offering, the company entered into
an amended standby purchase agreement with Tontine Capital
Partners, L.P. and Silverhawk Capital Partners GP, LLC as standby
purchasers, pursuant to which the standby purchasers agreed to
provide the company with a "backstop" commitment to purchase any
and all shares offered in the rights offering that are not
purchased by other stockholders, subject to certain ownership
limitations.
If the rights offering has not closed by Nov. 15, 2007, the
company and each of the standby purchasers may terminate their
respective rights and obligations under the standby purchase
agreement. Given the delay in completing the rights offering
caused by the restatement, well as the financial impact of the
restatement on the company, the company has entered into
discussions with the standby purchasers concerning amending the
terms of the standby purchase agreement.
"We continue to believe that raising additional equity capital is
the best course available to finance the company's continued
growth and satisfy its obligations," Keith E. Alessi, commented
Westmoreland Coal Company's president and CEO. "Proceeding with
the offering will be a priority once the restatement work is
complete."
About Westmoreland
Based in Colorado Springs, Colorado, Westmoreland Coal Company
(AMEX: WLB) -- http://www.westmoreland.com/-- is the oldest
independent coal company in the United States and a developer of
independent power projects. The company's coal operations include
coal mining in the Powder River Basin in Montana and lignite
mining operations in Montana, North Dakota and Texas. Its current
power operations include ownership and operation of the two-unit
ROVA coal-fired power plant in North Carolina, an interest in a
natural gas-fired power plant in Colorado, and the operation of
four power plants in Virginia.
At June 30, 2007, the company's balance sheet showed total assets
of $764 million, and total liabilities of $885.2 million,
resulting to a total shareholders' deficit of $121.2 million.
WYNN RESORTS: S&P Places BB- Rating Under Positive CreditWatch
--------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings, including
its 'BB-' corporate credit rating, on Wynn Resorts Ltd. and its
wholly owned subsidiary, Wynn Las Vegas LLC, on CreditWatch with
positive implications. The CreditWatch listing follows Wynn's
announcement that it plans a public offering of 3,750,000 newly
issued shares of its common stock at a price of $158 per share.
The proposed offering, which also includes an option to issue
an additional 562,500 shares to cover over-allotments, would yield
gross proceeds of $592.5 million (increasing to $681.4 million if
the over-allotment is exercised). The CreditWatch listing also
reflects solid operating performance at each of Wynn's properties,
Wynn Las Vegas and Wynn Macau.
"Given the size of Wynn's current pipeline of development
opportunities, along with the likelihood that this pipeline will
expand over time as opportunities arise in new markets," said
Standard & Poor's credit analyst Ben Bubeck, "if an upgrade is the
outcome of our review, it would likely be limited to one notch."
* S&P Places Ratings on Ford Related Transactions Under Watch
-------------------------------------------------------------
Standard & Poor's Ratings Services placed its ratings on nine U.S.
repack transactions related to Ford Motor Co. (Ford; B/Watch
Pos/B-3) on CreditWatch with positive implications.
The Sept. 26, 2007, placement of the long-term corporate credit
and senior unsecured debt ratings on Ford and related entities on
CreditWatch positive has no immediate rating impact on the Ford-
related asset-backed securities supported by collateral pools of
consumer auto loans or auto wholesale loans.
All of the transactions with ratings placed on CreditWatch
positive are pass-through transactions, and the ratings are based
solely on the senior unsecured rating assigned to the underlying
collateral. The underlying collateral consists of securities
issued by Ford, as indicated below.
The Sept. 26, 2007, placement of the ratings on Ford on
CreditWatch positive reflects the announcement that General Motors
Corp. (GM; B/Watch Pos/B-3) and its main union, the United Auto
Workers, have reached a tentative new labor contract that includes
an agreement designed to address the massive postretirement
employment benefit obligations associated with GM's UAW
population.
Ratings Placed on Creditwatch Positive
Corporate Backed Trust Certificates Ford Motor Co.
Debenture-Backed Series 2001-36 Trust
Rating
------
Class To From Underlying collateral
----- -- ---- -------------------
A-1 CCC+/Watch Pos CCC+ 7.7% deb due 05/15/2097
A-2 CCC+/Watch Pos CCC+ 7.7% deb due 05/15/2097
Corporate Backed Trust Certificates Ford Motor Co.
Note-Backed Series 2003-6 Trust
Rating
------
Class To From Underlying collateral
----- -- ---- -------------------
A-1 CCC+/Watch Pos CCC+ 7.45% Global Landmark
Secs (GlobLS)
notes due 07/16/2031
CorTS Trust for Ford Debentures
Rating
------
Class To From Underlying collateral
----- -- ---- -------------------
Certs CCC+/Watch Pos CCC+ 7.4% deb due 11/01/2046
CorTS Trust II for Ford Notes
Rating
------
Class To From Underlying collateral
----- -- ---- -------------------
Certs CCC+/Watch Pos CCC+ 7.45% Global Landmark
Secs (GlobLS)
notes due 07/16/2031
PPLUS Trust Series FMC-1
Rating
------
Class To From Underlying collateral
----- -- ---- -------------------
Certs CCC+/Watch Pos CCC+ 7.45% Global Landmark
Secs (GlobLS)
notes due 07/16/2031
PreferredPLUS Trust Series FRD-1
Rating
------
Class To From Underlying collateral
----- -- ---- -------------------
Certs CCC+/Watch Pos CCC+ 7.4% deb due 11/01/2046
Public STEERS Series 1998 F-Z4 Trust
Rating
------
Class To From Underlying collateral
----- -- ---- --------------------
A CCC+/Watch Pos CCC+ 7.7% deb due 05/15/2097
B CCC+/Watch Pos CCC+ 7.7% deb due 05/15/2097
SATURNS Trust No. 2003-5
Rating
------
Class To From Underlying collateral
----- -- ---- -------------------
Units CCC+/Watch Pos CCC+ 7.45% Global Landmark
Secs (GlobLS)
notes due 07/16/2031
Trust Certificates (TRUCs) Series 2002-1 Trust
Rating
------
Class To From Underlying collateral
----- -- ---- --------------------
A-1 CCC+/Watch Pos CCC+ 7.7% deb due 05/15/2097
* Thompson & Knight Elects Two Partners as TADC Directors
---------------------------------------------------------
Thompson & Knight LLP elected Greg W. Curry as Executive Vice
President and Jackie Robinson as Director at Large of the Texas
Association of Defense Counsel for 2007-2008.
Mr. Curry is a Partner in Thompson & Knight's Trial Practice Group
and focuses his practice on general commercial, oil and gas, and
environmental litigation matters. He has an active trial
practice, having secured high-value settlements and judgments for
plaintiffs and defending numerous complex cases with multi-million
dollar claims. He is actively involved in numerous professional
and civic organizations. He received a J.D., magna cum laude, from
Texas Tech University School of Law in 1989 and a B.B.A. in
Petroleum Land Management from the University of Oklahoma in 1983.
Mr. Robinson is also a Partner in Thompson & Knight's Trial
Practice Group and has practiced in state and federal courts and
tried more than 70 cases to verdict. Although the dominant
portion of his practice involves the defense of premises liability
and products liability claims, he has represented clients in a
number of contexts, including highway construction, airline
safety, workers' compensation and non-subscriber litigation, and
general tort litigation. He is involved in several local and
national professional organizations. He received a J.D. from the
University of Houston Law Center in 1986 and a B.A. from Morehouse
College in 1978.
About The TADC
The Texas Association of Defense Counsel, Inc. --
http://www.tadc.org/-- is an organization of Texas civil trial
attorneys in private practice whose purpose it to bring together
by association, communication, and organization, lawyers of Texas
who devote a substantial amount of their professional time to the
handling of litigated civil cases. TADC members must be in good
standing with the State Bar of Texas; engaged in civil
litigation/trial practice other than representing plaintiffs in
personal injury cases; and not be a member of any plaintiff or
claimant oriented association, group, or firm.
About Thompson & Knight
Since 1887, Thompson & Knight LLP, -- http://www.tklaw.com/--
with its practice focused on the energy industry, the firm has
extensive resources in litigation, tax, insolvency, and
international energy matters. The firm has approximately 420
attorneys, and has offices and alliances in North America, South
America, Europe, and Africa. Thompson & Knight represents
companies, government entities, and individuals in local,
regional, and national markets around the world.
* Thompson & Knight Adds 17 New Associates in Three Texas Offices
-----------------------------------------------------------------
Thompson & Knight LLP disclosed the addition of 17 new associates
in its Dallas, Fort Worth, and Houston offices.
The firm discloses that although the new associates are not
licensed to practice law in the State of Texas, admission is
anticipated in Winter 2007.
Dallas Office
Julie Abernethy joined the firm's Trial Practice Group in Dallas.
She received a B.A. in Psychology, summa cum laude, from
Vanderbilt University in 2004 and a J.D., cum laude, from SMU
Dedman School of Law in 2007.
Adesola "Ade" Adeyemi joined the firm's Tax Practice Group in
Dallas. She received a B.S. in Information Systems and
Operations, summa cum laude, from the University of Texas at
Arlington in 2004 and a J.D. from the University of Houston Law
Center in 2007.
Roselene Alexis joined the firm's Real Estate and Banking Practice
Group in Dallas. She received a B.A. in English, magna cum laude,
from Jackson State University in 2003 and a J.D., summa cum laude,
from Thurgood Marshall School of Law in 2007.
Mateo S. Barnstone joined the firm's Finance Practice Group in
Dallas. He received a B.A. in History from the University of
California at Los Angeles in 1990 and a J.D., with honors, from
The University of Texas School of Law in 2007.
Kara M. Blanco joined the firm's Tax Practice Group in Dallas.
She received a B.BA. in Accounting, summa cum laude, from Texas
Tech University in 2003 and a J.D., summa cum laude, from Texas
Tech University School of Law in 2007.
Janelle L. Davis joined the firm's Trial Practice Group in Dallas.
She received a B.S. in Criminal Justice, cum laude, from Texas
Christian University in 2004 and a J.D., summa cum laude, from
Pepperdine University School of Law in 2007.
Spencer Fielding joined the firm's Corporate and Securities
Practice Group in Dallas. He received a B.A. in Economics from
Brigham Young University in 2004 and a J.D. from Duke University
School of Law in 2007.
Angela Hough joined the firm's Real Estate and Banking Practice
Group in Dallas. She received a B.A. in French and Russian, summa
cum laude, from Texas Tech University in 2000, an M.A. in French,
summa cum laude, from Texas Tech University in 2003, and a J.D.,
summa cum laude, from Texas Tech University School of Law in 2007.
R. Reece Norris joined the firm's Corporate and Securities
Practice Group in Dallas. He received a B.B.A in Finance, magna
cum laude, from Baylor University in 2003 and a J.D., with honors,
from The University of Texas School of Law in 2007.
Jennifer Gadd Snow joined the firm's Trial Practice Group in
Dallas. She received a B.A., summa cum laude, in Letters from the
University of Oklahoma in 2003 and a J.D, magna cum laude, from
SMU Dedman School of Law in 2007.
Carolyn S. Mulvey joined the firm's Corporate and Securities
Practice Group in Dallas. She received a B.A., summa cum laude,
in Public Relations from Texas Tech University in 2002 and a J.D.,
summa cum laude, from the Texas Tech University School of Law in
2007.
Kurt Summers joined the firm's Finance Practice Group in Dallas.
He received a B.B.A. in Marketing from The University of Texas in
1998, an M.B.A. from Texas Tech University in 2007, and a J.D.,
summa cum laude, from Texas Tech School of Law in 2007.
Kelli A. Tieken joined the firm's Oil and Gas Practice Group in
Dallas as a Staff Associate. She received a B.A. in Psychology
from The University of the Texas at Austin in 2003 and a J.D. from
the University of Houston Law Center in 2007.
Fort Worth Office
Kristen Smith joined the firm's Trial Practice Group in Fort
Worth. She received a B.A. in History, summa cum laude, from Texas
Christian University in 2004 and a J.D., with honors, from The
University of Texas School of Law in 2007.
Houston Office
Cody Carper joined the firm's Oil and Gas Practice Group in
Houston. He received a B.A. in Government from The University of
Texas at Austin in 2004 and a J.D. from South Texas School of Law
in 2007.
Kevin Kushner joined the firm's Real Estate and Banking Practice
Group in Houston. He received a B.A. in Journalism from The
University of Texas at Austin in 2004 and a J.D. from Tulane
University School of Law in 2007.
Nicholas Tsai joined the firm's Corporate and Securities Practice
Group in Houston. He received a B.S.B.A. in Finance and
Accounting from Washington University in 2003 and a J.D., with
honors, from The University of Texas School of Law in 2007.
About Thompson & Knight
Since 1887, Thompson & Knight LLP, -- http://www.tklaw.com/--
with its practice focused on the energy industry, the firm has
extensive resources in litigation, tax, insolvency, and
international energy matters. The firm has approximately 420
attorneys, and has offices and alliances in North America, South
America, Europe, and Africa. Thompson & Knight represents
companies, government entities, and individuals in local,
regional, and national markets around the world.
* 34 Ulmer & Berne Attorneys Recognized as America's Best
---------------------------------------------------------
Ulmer & Berne LLP disclosed that 34 of its attorneys have been
recognized by The Best Lawyers in America. This number represents
nearly 20% of Ulmer & Berne's attorneys.
This year's publication is based entirely on the peer reviews of
"over two million detailed evaluations of lawyers by other
lawyers," according to The Best Lawyers in America.
Ulmer & Berne attorneys receiving honors this year include:
Lewis T. Barr, Esq. Brian M. O'Neill, Esq.
Barton A. Bixenstine, Esq. Thomas W. Ostrowski, Esq.
Joseph A. Castrodale, Esq. Jeffrey F. Peck, Esq.
Harold E. Friedman, Esq. Kip Reader, Esq.
Bill J. Gagliano, Esq. Gina M. Saelinger, Esq.
John C. Goheen, Esq. Isaac Schulz, Esq.
Frances Floriano Goins, Esq. Patricia A. Shlonsky, Esq.
James A. Goldsmith, Esq. J. Gregory Smith, Esq.
Richard G. Hardy, Esq. William K. Smith, Esq.
Ronald H. Isroff, Esq. Michael D. Stovsky, Esq.
Scott P. Kadish, Esq. Michael J. Suffern, Esq.
Ronald L. Kahn, Esq. Stuart R. Susskind, Esq.
Robert J. Karl, Esq. Joseph P. Thomas, Esq.
Marvin L. Karp, Esq. Michael S. Tucker, Esq.
Murray K. Lenson, Esq. Michael N. Ungar, Esq.
David L. Lester, Esq. F. Thomas Vickers, Esq.
Stephen A. Markus, Esq. Frederick N. Widen, Esq.
Three of these attorneys – Lewis T. Barr, Harold E. Friedman and
Marvin L. Karp have been listed in The Best Lawyers in America for
20 years or longer. John C. Goheen and Ronald L. Kahn have been
listed for 10 years or longer.
Ulmer & Berne LLP, established in 1908, is one of Ohio's largest
law firms. The firm was recently recognized in The BTI Consulting
Group's most recent survey of corporate counsel as one of only 85
firms nationally that "delivers the best value for the dollar."
Also, in a survey of Fortune 500 companies by Corporate Counsel
magazine, Ulmer & Berne has been chosen as a Go-To Law Firm(R).
Less than one-half of one percent of all the law firms in the U.S.
and abroad received this distinction.
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Shareholders Total Working
Equity Assets Capital
Company Ticker ($MM) ($MM) ($MM)
------- ------ ------------ ------ -------
Absolute Softwre ABT (1) 63 22
AFC Enterprises AFCE (31) 158 3
Alaska Comm Sys ALSK (23) 562 19
Apex Silver Mine SIL (131) 1,385 146
AthenaHealth Inc ATHN (18) 1,072 (2)
Authentic Inc AUTH (4) 22 0
Bare Escentuals BARE (162) 196 68
Bearingpoint Inc BE (338) 1,836 133
Blount International BLT (89) 471 141
CableVision System CVC (5,064) 10,072 17
Carrols Restaurant TAST (18) 459 (36)
Cell Therapeutic CTIC (85) 90 21
Centennial Comm CYCL (1,078) 1,322 20
Cheniere Energy CQP (181) 1,935 145
Choice Hotels CHH (72) 332 (33)
Cincinnati Bell CBB (744) 1,953 (2)
Claymont Stell PLTE (41) 152 72
Compass Minerals CMP (49) 674 139
Corel Corp. CRE (16) 261 (31)
Crown Holdings CCK (90) 6,793 428
Crown Media HL CRWN (588) 749 63
CV Therapeutics CVTX (129) 308 226
Cyberonics CYBX (17) 135 (28)
Dayton Superior DSUP (99) 337 95
Deluxe Corp DLX 0 1,410 (164)
Demantec Inc DMAN (10) 60 (7)
Denny's Corporation DENN (207) 439 (54)
Domino's Pizza DPZ (1,434) 474 87
Dun & Bradstreet DNB (425) 1,418 (268)
Einstein Noah Re BAGL (46) 136 (3)
Emeritus Corp. ESC (111) 950 (62)
Enzon Pharmaceutical ENZN (57) 355 166
Extendicare Real EXE-U (16) 1,331 146
Foamex Intl FMXI (257) 566 146
Ford Motor Co F (1,422) 287,939 (4,704)
Gencorp Inc. GY (31) 1,082 74
General Motors GM (2,290) 186,527 (4,638)
Graftech International GTI (4) 788 260
Healthsouth Corp. HLS (1,292) 2,402 (463)
I2 Technologies ITWO (6) 195 39
ICO Global C-New ICOG (116) 628 146
IDEARC Inc IAR (8,575) 1,576 326
IMAX Corp IMX (64) 220 12
IMAX Corp IMAX (64) 220 12
Incyte Corp. INCY (120) 309 250
Indevus Pharma IDEV (75) 156 14
Intermune Inc ITMN (68) 241 181
ITC Deltacom Inc ITCD (49) 409 9
Koppers Holdings KOP (44) 699 196
Linear Tech Corp LLTC (708) 1,219 681
Lockerbie & Hole LH (3) 123 (25)
McMoran Exploration MMR (50) 446 (1)
Mediacom Comm MCCC (120) 3,624 (278)
National Cinemed NCMI (559) 446 40
Navisite Inc NAVI (14) 116 11
New River Pharma NRPH (110) 152 (19)
Nexstar Broadcasting NXST (81) 704 (20)
NPS Pharm Inc NPSP (226) 150 (107)
ON Semiconductor ONNN (118) 1,428 322
Primedia Inc PRM (426) 1,233 770
Protection One PONN (4) 678 (302)
Qwest Communication Q (1,556) 20,389 (1,263)
Radnet Inc. RDNT (49) 393 38
Ram Energy Resources RAME (1) 203 (8)
Regal Entertainment RGC (96) 2677 (89)
Riviera Holdings RIV (24) 443 28
RSC Holdings Inc RRR (129) 3,430 (202)
Rural Cellular RCCC (602) 1,260 14
Sealy Corp. ZZ (145) 1,017 49
Sipex Corp SIPX (18) 44 2
Sirius Satellite SIRI (539) 1,688 (176)
St. John Knits Inc. SJKI (52) 213 80
Station Casinos STN (167) 3,745 (62)
Stelco Inc STE (108) 2,734 726
Town Sports Int. CLUB (12) 459 (52)
Unisys Corp. UIS (2) 3,832 40
VMWare Inc-CL A VMW (138) 1,422 23
Voyager Learning VLCY (53) 917 (637)
Weight Watchers WTW (991) 1,046 (85)
Western Union WU (86) 5,328 945
Westmoreland Coal WLB (115) 764 (51)
Worldspace Inc. WRSP (1,683) 424 (20)
WR Grace & Co. GRA (390) 3,706 922
XM Satellite XMSR (597) 1,813 (153)
Xoma Ltd XOMA (14) 68 23
*********
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, Joseph Medel C.
Martirez, 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.
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