/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/071010.mbx T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, October 10, 2007, Vol. 11, No. 240 Headlines 200 SOUTH: Case Summary & Largest Unsecured Creditor 360 GLOBAL: Selects Sichenzia Ross as Special Counsel ADVENTURE PARKS: Files Disclosure Statement in Georgia ADVENTURE PARKS: Disclosure Statement Hearing Slated for Nov. 15 AEGIS MORTGAGE: Wants Court to Dismiss Units' Chapter 11 Cases AEGIS MORTGAGE: Wants To Sell Office Equipment for $330,000 AIRPORT EXECUTIVE: Hearing on M.A.M.C. Settlement Resumes Oct. 16 AK STEEL: To Contribute $468 Million to Retiree's VEBA Trust AMERICAN COLOR: June 30 Balance Sheet Upside-Down by $250 Mil. AMERICAN COLOR: Proposed Merger with Vertis Inc. Terminated AMERICAN COLOR: Terminated Merger Cues S&P to Retain Neg. Watch AMERICAN HOME: Committee Selects BDO Seidman as Advisors AMERICAN HOME: Picks WL Ross' Bid for Mortgage Servicing Rights AMERICAN HOME: Prosecutors Conduct Probe on Possible Fraud ATARI INC: Majority Stockholder Removes 5 Members from Board AVADO BRANDS: US. Trustee Appoints Three-Member Creditors Panel AVAYA INC: Stockholders Approve Silver Lake Merger Agreement BARNERT HOSPITAL: Wants to Hire Teich Groh as Conflicts Counsel CATALINA MARKETING: Moody's Puts Corporate Family Rating at B2 CENTAUR LLC: Moody's Places Corporate Family Rating at B3 CHILDREN'S PARACLETE: Voluntary Chapter 11 Case Summary CHRYSLER LLC: UAW Strike Deadline Looms, Contract Talks Stall CLOROX CO: Prices $750 Million Senior Notes Offering COAST FOUNDRY: Wants to Hire Help-U-Sell as Real Estate Broker CREDIT SUISSE: Moody's Assigns Low-B Ratings on Six Certs. Classes CREST 2003-2: Moody's Holds Ba1 Ratings on Two Cert. Classes CROSSWINDS AT ARROYO: Files List of Largest Unsecured Creditors DYNEGY INC: Earns $76 Million in Second Quarter Ended June 30 EMPIRE BEEF: Gets $4 Million Interim DIP Financing EMPIRE BEEF: Wants JC Jones & Associates as Financial Advisors FALCON BARNETT: Voluntary Chapter 11 Case Summary FEDDERS CORP: Gets Final Approval on $79.4 Million DIP Financing FGX INT'L: S&P Holds 'B' Rating and Revises Outlook to Stable FLEETWOOD ENT: Posts $2.3 Million Net Loss in Qtr. Ended July 29 FLEXTRONICS INT'L: Solectron Global to Redeem 8% Senior Notes GARDNER DENVER: Earns $44.8 Million in Quarter Ended June 30 GREAT CIRCLE: Section 341(a) Meeting Scheduled on October 25 GREAT CIRCLE: U.S. Trustee Names Seven-Member Creditors Panel HALO TECHNOLOGY: Court Approves Zeisler & Zeisler as Counsel HALO TECHNOLOGY: U.S. Trustee Names Three-Member Creditors Panel HALO TECHNOLOGY: Creditors Panel Wants Pepe & Hazard as Counsel HERCULES INC: Earns $34.5 Million in Second Quarter Ended June 30 IMAX CORP: Will Restate Financial Records on Real Estate Leases INTREPID TECHNOLOGY: Jones Simkins Raises Going Concern Doubt JERUSALEM BAPTIST: Case Summary & 3 Largest Unsecured Creditors KKR ATLANTIC: Nonpayment of Notes Cues Fitch to Cut Ratings KNOLL INC: Moody's Withdraws Ba3 Corporate Family Rating LAKE TRAVIS: Files List of Four Largest Unsecured Creditors LEVIATHAN ENTERPRISES: Case Summary & 3 Largest Unsec. Creditors LKQ CORP: Affirms $48/Share Offer to Buy Keystone Automotive LYONDELL CHEMICAL: Board Declares Quarterly Dividend MORTGAGE ASSET: Moody's Holds B+ Rating on Class 15-B-5 Notes MORTGAGE LENDERS: Countrywide Wants to Foreclose on 11 Properties MORTGAGE LENDERS: Wants Until January 31 to File Chapter 11 Plan NATIONAL EASTERN: Section 341(a) Meeting Scheduled on Oct. 22 NEFF CORP: Posts $45.1 Million Net Loss in Quarter Ended June 30 NETBANK INC: FDIC Sets Jan. 2 as Bar Date to File Proofs of Claim NEWCOMM WIRELESS: Court Confirms Chapter 11 Liquidation Plan NEW CENTURY: Court Okays Inclusion of NCWC in Richards Retention NRG ENERGY: Earns $149 Million in Second Quarter Ended June 30 PATCH INTERNATIONAL: KPMG LLP Raises Going Concern Doubt PETROQUEST ENERGY: Gets $70.7MM in 6.875% Pref. Stock Offering PIER 1: Zero Debt Cues Moody's to Withdraw Rating PRIMA CAPITAL: Moody's Holds Low-B Ratings on Two Cert. Classes PROPEX INC: High Leverage Cues Moody's to Cut Ratings PROPEX INC: S&P Places 'B-' Rating Under Negative CreditWatch QUALITY HOME: U.S Trustee Appoints Three-Member Creditors Panel QUALITY HOME: Wants Court Approval on Countrywide Settlement Pact REMY WORLDWIDE: Files Pre-Packaged Bankruptcy in Delaware REMY WORLDWIDE: Case Summary and 30 Largest Unsecured Creditors ROADHOUSE GRILL: Case Summary & 24 Largest Unsecured Creditors SEA CONTAINERS: Wants to Allocate Funds to Two Non-Debtor Units SECURITY WITH: Closes $3.6 Mil. Funding from Warant Conversion SENTINEL MANAGEMENT: Quinn Emanuel Okayed as Committee's Counsel SENTINEL MANAGEMENT: Court Okays DLA Piper as Panel's Co-Counsel SENTINEL MANAGEMENT: U.S. Trustee Appoints Nine-Member Committee SOUEIDAN GAS: Files List of Seven Largest Unsecured Creditors SPACEHAB INC: NASDAQ Says Bid Price and Net Income Non-Compliant TERWIN MORTGAGE: Poor Credit Support Cues S&P to Downgrade Ratings TXU CORP: Fitch Downgrades Issuer Default Rating to B U.S. AIRWAYS: Flight Attendants to Hold Rally on October 16 U.S. DRY: Buying Team Enterprises & Bell Hop Assets for $6.13 Mil. VERTIS COMMS: June 30 Balance Sheet Upside-Down by $594 Million VERTIS COMMS: Terminates LOI to Merge with American Color VERTIS INC: S&P Revises CreditWatch from Negative to Developing VICTORY MEMORIAL: DASNY DIP Financing Pact Gets Final Court Okay * Buccino & Associates Names Robert Sundius as Senior VP * Lawrence R. Plotkin Joins Chadbourne & Parke-NY as Partner * Mayer Brown Launches Subprime Lending Response Team * Upcoming Meetings, Conferences and Seminars ********* 200 SOUTH: Case Summary & Largest Unsecured Creditor ---------------------------------------------------- Debtor: 200 South Calhoun Street, L.L.C. 200 South Calhoun Street Baltimore, MD 21223 Bankruptcy Case No.: 07-19843 Type of business: The Debtor owns and manages a three-story commercial building. Chapter 11 Petition Date: October 8, 2007 Court: District of Maryland (Baltimore) Judge: James F. Schneider Debtor's Counsel: Marc Robert Kivitz, Esq. 201 North Charles Street, Suite 1330 Baltimore, MD 21201 Tel: (410) 625-2300 Fax: (410) 576-0140 Total Assets: $1,400,010 Total Debts: $273,800 Debtor's Largest Unsecured Creditor: Entity Nature of Claim Claim Amount ------ --------------- ------------ Mayor and City Council of $3,800 Baltimore Department of Finance Bureau of Treasury Management 200 Holliday Street Baltimore, MD 21202 360 GLOBAL: Selects Sichenzia Ross as Special Counsel ----------------------------------------------------- 360 Global Wine Company and its debtor-affiliate, Viansa LLC, ask the United States Bankruptcy Court for the District of Nevada for permission to employ Sichenzia Ross Friedman Ference LLP as their special counsel, nunc pro tunc Sept. 15, 2007. Sichenzia Ross will: a. review and draft general corporate documents; b. communicate with corporate officers and consultants; c. prepare, draft and file the Debtors' Form 10-KSBs,10-QSBs and 8-Ks reports with the Securities and Exchange Commission; d. prepare, draft and file the Debtors' proxy statement in connection with its annual meetings of shareholers; and e. render other and additional services as may be necessary and appropriate with the firm's expertise in connection with its services as special SEC counsel. The Debtors agreed to pay $14,000 per month to the firm for this engagement. To the best of the Debtors' knowledge the firm does not hold any interest adverse to the Debtors' estate and is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Headquartered in Los Angeles, California, 360 Global Wine Company and 360 Viansi LLC -- http://www.360wines.com/-- are small, diversified marketers of wine and alcoholic beverages. The company filed for Chapter 11 protection on March 7, 2007 (Bankr. Nev. Case No. 07-50205). Brett A. Axelrod, Esq., at Beckley Singleton, Chartered, represents the Debtors in their restructuring efforts. David A. Honig, Esq., at Winston & Strawn LLP, represents the Official Committee of Unsecured Creditors. When the Debtors sought protection from their creditors, they listed total assets of $43 million and total debts of $39 million. ADVENTURE PARKS: Files Disclosure Statement in Georgia ------------------------------------------------------ Adventure Parks Group LLC and its debtor-affiliates filed with the United States Bankruptcy Court for the Middle District of Georgia a Disclosure Statement explaining their Chapter 11 Plan of Liquidation dated Sept. 30, 2007. The Plan contemplates the complete liquidation of the Debtors' remaining assets and the appointment of a liquidating trustee, who will manage the liquidation process. On Sept. 27, 2007, the Court approved the sale of the Debtors' assets to Herschend Family Entertainment Corporation and Land South Holdings LLC. The Debtors paid $310,031 to First State Bank and Trust Company of Valdosta's first lien claim, with an additional $590,000 in disputed claim, from the proceeds of the sale. In addition, the Debtors applied $15,579,826 to its postpetition debt under the Court's debtor-in-possession financing order. The Debtors tell the Court that they estimated approximately 217 transferees who received at least $10,000, that may qualify as preferential transfers. Accordingly, the Debtors will file adversary complaints against various transferees, who have not substantiated valid reason to the liquidating trustee. Treatment of Claims Under the Plan, Administrative and Priority Claims will be paid in full, in cash on the effective date of the Plan. At the option of the liquidating trustee, holders of Secured Claims will, either: i. receive cash equal to their liens, together with post- confirmation interest from the effective date; or ii. retain any lien securing the claim. Non-Tax Priority Claims will receive, either: i. cash, in full, on the effective date; ii. deferred cash payments, equal to the amount of the claim; or iii. other treatment in accordance with the Bankruptcy Code. Convenience Class Claims against the Debtors will receive at least $500 on the effective date. Holders of General Unsecured and Subordinated Claims are entitled to receive pro rata of the net distributable proceeds on hand; provided, if general fund is insufficient on the initial distribution date. Equity Interest holders will not receive or retain any property on account of their interests under the Plan. A full-text copy of Adventure Parks' Disclosure Statement is available for free at: http://www.researcharchives.com/bin/download?id=071008225836 Based in Valdosta, Georgia, Adventure Parks Group LLC is the holding company of Wild Adventures and Cypress Gardens. Wild Adventures operates an amusement park in Valdosta, Georgia, while Cypress operates an amusement park in Winter Haven, Florida. The company, along with Wild Adventures and Cypress Gardens, filed for chapter 11 protection on Sept. 11, 2006 (Bankr. M.D. Ga. Case Nos. 06-70659 through 06-70661). George H. McCallum, Esq., James P. Smith, Esq., and Ward Stone, Jr., Esq., at Stone & Baxter, LLP, represent the Debtors. Mark J. Wolfson, Esq., at Foley & Lardner LLP and James C. Frenzel, Esq., at James C. Frenzel P.C. in Georgia represent the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they estimated assets and debts between $50 million and $100 million. ADVENTURE PARKS: Disclosure Statement Hearing Slated for Nov. 15 ---------------------------------------------------------------- The United States Bankrutpcy Court for the Middle District of Georgia will convene a hearing on Nov. 15, 2007, 10:00 a.m., at Columbus Courthouse, to consider the adequacy of Adventure Parks Group LLC and its debtor-affiliates' Disclosure Statement explaining ther Chapter 11 Plan of Liquidation. Based in Valdosta, Georgia, Adventure Parks Group LLC is the holding company of Wild Adventures and Cypress Gardens. Wild Adventures operates an amusement park in Valdosta, Georgia, while Cypress operates an amusement park in Winter Haven, Florida. The company, along with Wild Adventures and Cypress Gardens, filed for chapter 11 protection on Sept. 11, 2006 (Bankr. M.D. Ga. Case Nos. 06-70659 through 06-70661). George H. McCallum, Esq., James P. Smith, Esq., and Ward Stone, Jr., Esq., at Stone & Baxter, LLP, represent the Debtors. Mark J. Wolfson, Esq., at Foley & Lardner LLP and James C. Frenzel, Esq., at James C. Frenzel P.C. in Georgia represent the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they estimated assets and debts between $50 million and $100 million. AEGIS MORTGAGE: Wants Court to Dismiss Units' Chapter 11 Cases -------------------------------------------------------------- Aegis Mortgage Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to dismiss the bankruptcy cases of Aegis Loan Servicing L.P. and AMC Insurance of Texas Inc. James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, said that the dismissal of the cases is necessary to give Selene Ventures, LLC, the designee of Ranieri & Co., the full benefit of the transfer of the issued stock of Aegis Loan and AMC Insurance. As reported in the Troubled Company Reporter on Sept. 26, 2007, the Debtors, after obtaining Court approval, sold to Selene loan servicing platform assets from their facilities located in Houston, Texas, pursuant to the terms of the amended Asset Purchase Agreement. The assets included: * all of the issued and outstanding stock of Aegis Loan Servicing, LP; * all of the issued and outstanding stock of AMC Insurance, including its licenses to underwrite and sell insurance policies; and * all documentation and files relating to the mortgage and insurance licenses, and bonds for entities that were part of the transaction. The Debtors also obtained the Court's approval to execute the amended Asset Purchase Agreement, which provided that concurrent with the closing of the sale, Aegis Mortgage Corporation will cause the pending bankruptcy proceedings with respect to Aegis Loan and AMC Insurance to be dismissed expeditiously. The sale of assets closed on Sept. 28, 2007. Aegis Loan and AMC Insurance already filed their respective statement of financial affairs and schedules on the same day, Mr. O'Neill disclosed. Mr. O'Neill further said that Aegis Loan and AMC Insurance have only one potential creditor each, which had already been informed about the Debtors' request. He added that Aegis Loan and AMC Insurance only hold liability to certain potential de minimus tax claims and regulatory fee claims. Headquartered in Houston, Texas, Aegis Mortgage Corporation -- http://www.aegismtg.com/-- offers a variety of mortgage loan products to brokers through its subsidiaries. The company together with 10 affiliates filed for chapter 11 protection on Aug. 13, 2007 (Bankr. D. Del. Case No. 07-11119) Curtis A. Hehn, Esq., James E. O'Neill, Esq., Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski, Stang, Ziehl, & Jones, L.L.P., serve as counsel to the Debtors. When the Debtors filed for bankruptcy, they listed assets and debts of more than $100 million. The Debtors' exclusive period to file a plan expires on Dec. 11, 2007. Aegis Bankruptcy News, Issue No. 8, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AEGIS MORTGAGE: Wants To Sell Office Equipment for $330,000 ----------------------------------------------------------- Aegis Mortgage Corp. and its debtor-affiliates seek the authority of the U.S. Bankruptcy Court for the District of Delaware to sell free and clear of all liens, claims and encumbrances: * certain computer equipment from their facility located at 10049 North Reiger Road, Baton Rouge, Los Angeles, California, to TekSavers for $302,000; * certain cell phones and blackberries from their facility at 3250 Briarpark, Suite 400, Houston, Texas, to eCycle Blackberres for $28,080; and * miscellaneous used computer equipment, including 100 desktop and laptop computers, 100 monitors and related accessories, to employees. The Debtors expect to generate net proceeds of $330,080 from the sale. James E. O'Neill, Esq., at Pachulski Stang Ziehl & Jones, LLP, in Wilmington, Delaware, said that the sale is appropriate and in the best interest of the estate because the Debtors have no use for the equipment. Mr. O'Neill disclosed that the Debtors anticipate closing and vacating the Baton Rouge facility and their location at 9990 Richmond Avenue, in Houston, Texas, by the end of October. He adds that Teksavers and eCycle Blackberres offered the highest bids for the computer equipment and cellphones. Mr. O'Neill further said that the Debtors will sell miscellaneous computer equipment to employees at prices not below those used by Dell Managed Services for recovery of used equipment. If the Debtors did not make the sales to employees, the equipment would be sold for the same or lower prices to used equipment vendors, he added. The Debtors do not believe that any party asserts a security interest or any other interest in the properties. According to Mr. O'Neill, the Debtors requested that the order approving the sale be deemed effective immediately by providing that the 10-day stay under Rule 6004(h) of the Federal Rules of Bankruptcy Procedure is waived. He said that a waiver of the stay will allow the Debtors time to consummate the sale and reject the leases for the Baton rouge facility and another lease location in Texas before the end of October. Headquartered in Houston, Texas, Aegis Mortgage Corporation -- http://www.aegismtg.com/-- offers a variety of mortgage loan products to brokers through its subsidiaries. The company together with 10 affiliates filed for chapter 11 protection on Aug. 13, 2007 (Bankr. D. Del. Case No. 07-11119) Curtis A. Hehn, Esq., James E. O'Neill, Esq., Laura Davis Jones, Esq., and Timothy P. Cairns, Esq., at Pachulski, Stang, Ziehl, & Jones, L.L.P., serve as counsel to the Debtors. When the Debtors filed for bankruptcy, they listed assets and debts of more than $100 million. The Debtors' exclusive period to file a plan expires on Dec. 11, 2007. Aegis Bankruptcy News, Issue No. 8, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/ or 215/945-7000). AIRPORT EXECUTIVE: Hearing on M.A.M.C. Settlement Resumes Oct. 16 ----------------------------------------------------------------- The U.S. Court for the Southern District of Florida will continue the hearing to consider the approval of Airport Executive Commerce Park LLC's proposed settlement agreement with M.A.M.C. Inc. on Oct. 16, 2007, at 10:30 a.m. The proposed settlement, the Debtor says, will resolve the disputes it has with its secured creditor, represented by M.A.M.C., and permit it to finish the construction of its real property, obtain necessary financing and propose a plan to reorganize. Settlement and Compromise The Debtor had initially proposed that on or before Oct. 1, 2007, it will ask a third party or a transferee to acquire the Debtor's loan and judgment for the sum of $5,800,000. Within five days of the secured creditor's receipt of the sum from the transferee, the secured creditor will give the Debtor one-half of the remaining loan reserve of $132,667 that the secured creditor presently holds in escrow. The balance will be retained by the secured creditor as compromise payment. If the transferee cannot pay the judgment sum to the secured creditor, the secured creditor will give a notice of default. However, the default is curable within 10 calendar days after the notice is sent. With the completion of the terms in the settlement agreement, the parties will exchange mutual releases and the secured creditor will withdraw its motion to dismiss the Debtor's Chapter 11 case. As reported on the Troubled Company Reporter on Sept. 5, 2007, M.A.M.C., as servicing agent for a group of lenders through Berman Mortgage Corporation, had asked the Court to dismiss Airport Executive's Chapter 11 bankruptcy case, or in the alternative, relief from automatic stay. M.A.M.C. contends that the Debtor violated the six Phoenix Picadilly factors. M.A.M.C. told the Court that the Debtor's bankruptcy case stems from a foreclosure action on a real property located in Miami-Dade County, Florida. M.A.M.C. argued that the Debtor defaulted on the terms of a first priority mortgage and security agreement and promissory note when the Debtor filed for bankruptcy. On July 2, 2007, Berman was granted an agreed final judgment of foreclosure against the Debtor's assets. Pursuant to the judgment, the Debtor owed the secured creditor about $7,227,797 with interest accruing at 11% per annum. About MAMC Inc. Mortgage Asset Management Corporation specializes in short term real estate-secured loans including: bridge, construction, development, land acquisition, and raw land. MAMC primarily provides individuals, trusts, pension plans and IRAs with the opportunity to participate as undivided percentage lenders in privately funded mortgages. The loans are collateralized by mortgages on real property located anywhere in the United States, however, MAMC's current concentration is on the booming real estate market in Florida. There may be completed commercial or non-owner occupied residential buildings on the property, but the collateral may also consist of real property with buildings under construction or undeveloped land. MAMC originates, underwrites, funds, closes and manages the mortgage loans. About Airport Executive Airport Executive Commerce Park LLC is based in Miami, Florida. The Debtor filed for Chapter 11 protection on Aug. 21, 2007 (Bankr. S.D. Fl. Case No. 07-16691). Robert A. Schatzman, Esq. at Adorno & Yoss LLP represents the Debtor in its restructuring efforts. When the Debtor filed for bankruptcy, it listed total assets of $10,000,252 and total debts of $7,593,239. AK STEEL: To Contribute $468 Million to Retiree's VEBA Trust ------------------------------------------------------------ AK Steel Corp. has reached agreement with a group of retirees from its Middletown (Ohio) Works to settle a lawsuit stemming from the company's initiatives in 2006 to reduce its retiree health care costs in order to improve its competitiveness. The company said the settlement agreement covers about 4,600 current Middletown Works retirees. Under terms of the agreement, AK Steel will transfer all of its health care obligations for the covered retirees to a Voluntary Employees Beneficiary Association trust, which will be managed solely by the retirees' designees, and will be utilized to fund the retirees' covered benefits. AK Steel will initially fund the VEBA trust with a contribution of $468 million, with three subsequent annual contributions of $65 million each, for a total of $663 million. In exchange for this funding, AK Steel will have no further liability related to the Middletown Works retirees covered by the agreement. The company said that it intends to fund the initial $468 million trust contribution through one or more sources, including its existing cash balances and credit facilities; and possibly the capital markets. The company said it expects the initial trust contribution to occur in the first quarter of 2008. As of June 30, 2007, AK Steel's total OPEB liability was approximately $2.1 billion, of which approximately one-half was related to the Middletown Works retirees covered by the settlement. AK Steel said the agreement is subject to approval by the U.S. District Court, Southern District of Ohio, Western Division, in Cincinnati. About AK Steel Corp. Headquartered in Middletown, Ohio, AK Steel Corp. (NYSE: AKS) -- http://www.aksteel.com/-- produces flat-rolled carbon, stainless and electrical steels, as well as tubular steel products for the automotive, appliance, construction and manufacturing markets. * * * As reported in the Troubled Company Reporter on Aug. 15, 2007, Moody's Investors Service upgraded AK Steel Corporation's corporate family rating to Ba3 from B1. In a related action, Moody's upgraded the rating on the company's $550 million senior unsecured notes due 2012 to B1 from B2 and the rating on its remaining $150 million senior unsecured notes due 2009 to B1 from B2. The outlook is stable. Standard and Poor's rated the company's long term foreign and local issuer credit B+ on July 2003. The outlook is stable. AMERICAN COLOR: June 30 Balance Sheet Upside-Down by $250 Mil. -------------------------------------------------------------- American Color Graphics Inc., a wholly owned subsidiary of ACG Holdings Inc., reported financial results for the quarter ended June 30, 2007. At June 30, 2007, the company's balance sheet showed total assets of $223.8 million and total liabilities of $474.5 million, resulting in a $250.7 million stockholders' deficit. Deficit for the same period last year was $244.9 million. The company disclosed a net loss of $6.6 million on $105.8 million of sales, compared with a net loss of $2.7 million on $110.0 million sales. Gross profit for the quarter ended June 30, 2007, was $10.8 million, compared with last year's $12.4 million. During the 2007 Three-Month Period, the company used net borrowings from the 2005 Revolving Credit Facility of $4.7 million, net borrowings from the Receivables Facility of $7.8 million and $0.1 million in proceeds from the sale of fixed assets primarily to fund: * $7.7 million of operating activities; * $2.5 million in cash capital expenditures; and * $2.3 million to service other indebtedness (including repayment of capital lease obligations of $1.0 million and payment of deferred financing costs of $1.3 million). Scheduled repayments of existing capital lease obligations during Fiscal Year 2008 are approximately $2.4 million. Interest on the company's 10% Notes is payable semiannually in cash on each June 15 and December 15. Going Concern Doubt Ernst & Young LLP, in Nashville, Tennessee, raised substantial doubt about the American Color Graphic Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended March 31, 2007 and 2006. The auditing firm disclosed that the company has incurred recurring net losses and has a working capital deficiency. In addition, while the company has obtained waivers of certain reporting requirement violations under its 2005 Credit Agreement and Receivables Facility for periods ending on or prior to March 31, 2007, management does not believe that it is probable that the company will remain in compliance with certain covenants under such debt facilities during the fiscal year ending March 31, 2008. About American Color Graphics Headquartered in Brentwood, Tennessee, American Color Graphics Inc. -- http://www.americancolor.com/-- is engaged in printing of advertising inserts and newspaper products in the United States. The company is a wholly owned subsidiary of ACG Holdings Inc. The company operates in two segments: print and premedia services. Customers for its print services include about 230 national and regional retailers and approximately 155 newspapers. The premedia services segment provides its customers with a solution for the preparation and management of materials for printing, including the design, creation and capture; manipulation; storage; transmission, and distribution of images. AMERICAN COLOR: Proposed Merger with Vertis Inc. Terminated ----------------------------------------------------------- Vertis Communications fka Vertis Inc. terminated a July 21, 2007 letter of intent, as amended on Aug. 14, 2007, with ACG Holdings Inc. relating to the proposed merger between Vertis Communications and ACG Holdings Inc. As reported in the Troubled Company Reporter on July 25, 2007, Vertis Communications and American Color signed a letter of intent to merge the operations of ACG into Vertis' nationwide marketing and printing services platform. The owners of ACG would have received 10% of the combined company's common equity and 8% of the mezzanine subordinated notes of Vertis Holdings. The agreement of Sept. 13, 2007, between Vertis Inc., American Color Graphics Inc., and ACG Holdings Inc. and certain Consenting Noteholders expired by its terms on Sept. 29, 2007. Vertis conveyed an offer with a deadline of midnight on Sept. 30, 2007 and received no affirmative response. Vertis therefore terminated the letter of intent, but is prepared to entertain further discussions. About Vertis Communications Vertis Communications, fka Vertis Inc., a wholly owned subsidiary of Vertis Holdings -- http://www.vertisinc.com/-- is a marketing partner to a number of clients, including several Fortune 500 companies. The company offers consulting, creative, research, direct mail, media, technology and production services. It also provides print advertising, direct marketing solutions, and similar services to America's retail and consumer services companies. About American Color Graphics Headquartered in Brentwood, Tennessee, American Color Graphics Inc. -- http://www.americancolor.com/-- is engaged in printing of advertising inserts and newspaper products in the United States. The company is a wholly owned subsidiary of ACG Holdings Inc. The company operates in two segments: print and premedia services. Customers for its print services include about 230 national and regional retailers and approximately 155 newspapers. The premedia services segment provides its customers with a solution for the preparation and management of materials for printing, including the design, creation and capture; manipulation; storage; transmission, and distribution of images. AMERICAN COLOR: Terminated Merger Cues S&P to Retain Neg. Watch --------------------------------------------------------------- Standard & Poor's Ratings Services said its 'CC' corporate credit rating on American Color Graphics Inc. remains on CreditWatch with negative implications. "Vertis Inc. announced that it has terminated the letter of intent to merge with ACG Holding Inc., American Color Graphics' parent," explained Standard & Poor's credit analyst Guido DeAscanis. In addition, the agreement to restructure debt securities of Vertis and its affiliates and American Color Graphics expired by its terms on Sept. 29, 2007. ACG announced on Oct. 4, 2007 that its board would conduct a review of strategic alternatives, which could include the exchange of some or all of the company's $280 million senior secured second-priority notes, seeking waivers or amendments from lenders under the company's credit facilities and notes, refinancing its credit facilities, or a sale of part or all of the company. Ratings downside could result from an inability to complete actions that would avoid default, or from an exchange offer for the company's notes that represents less than full and timely payment. AMERICAN HOME: Committee Selects BDO Seidman as Advisors -------------------------------------------------------- The Official Committee of Unsecured Creditors in American Home Mortgage Investment Corp. and its debtor-affiliates' chapter 11 cases asks the U.S. Bankruptcy Court for the District of Delaware for authority to retain BDO Seidman LLP as its financial advisors, effective as of August 14, 2007. The Creditors Committee tells the Court that BDO is well qualified to represent it because: -- BDO is thoroughly familiar with and experienced in Chapter 11 practice and the representation of creditors' committees; -- BDO is knowledgeable concerning the financial issues peculiar to debtor mortgage originators and servicers; and -- BDO is capable of investigating the Debtors prepetition acts and conduct. Specifically, the Committee need BDO to: (a) analyze the prepetition and postpetition financial operations of the Debtors, as necessary; (b) analyze the financial ramifications of any proposed transactions for which the Debtors seek Court approval; (c) perform claims analysis for the Committee; (d) verify assets and liabilities, as necessary, and their values; (e) assist the Committee in its review of monthly statements of operations to be submitted by the Debtors; (f) assist the Committee in its evaluation of cash flow and other projections prepared by the Debtors; (g) scrutinize cash disbursements on an on-going basis for the period subsequent to the commencement of the case; (h) analyze the transactions with insiders, related and affiliated companies; (i) analyze transactions with the Debtors' financing institutions; (j) analyze the Debtors' real property interests, including lease assumptions and rejections, and potential real property asset sales; (k) attend meetings of creditors and conference with representatives of the creditor groups and their counsel; (l) review the work performed by the Debtors' investment bankers, monitor the sale or liquidation of the the Debtors and analyze and evaluate bids received to determine the best alternative for unsecured creditors; (m) attend auctions of the Company's assets; (n) perform forensic investigating services, as requested by the Committee and counsel, regarding prepetition activities of the Debtors in order to identify potential causes of action; (o) assist the Committee in its review of the financial aspects of a plan of reorganization to be submitted by the Debtors, or in arriving at a proposed reorganization plan; (p) review of tax issues, as deemed necessary; and (q) perform other necessary services as the Committee or the Committee's counsel may request from time to time with respect to the financial, business and economic issues that may arise. In addition, the Committee also asks the Court for authority to retain BDO's investment banking affiliate, Trenwith Securities LLC. The Committee needs Trenwith to: (1) monitor and assess the sales process; (2) introduce potential bidders to the auction who may have been overlooked or excluded by the Debtors; (3) assist the Committee with advice on capital market matters during the auction; and (4) advise the Committee on other matters upon request. BDO will be compensated at its customary rate for services rendered and for actual expenses incurred. Trenwith will include its requests for compensatioin and reimbursement of expenses as part of BDO's fee application. BDO and Trenwith professionals will be paid according to these hourly rates: Partners/Managing Directors $400 to $775 Directors & Sr. Managers $300 to $600 Managers $225 to $375 Seniors $175 to $275 Staff $125 to $200 William K. Lenhardt, a partner of BDO, assures the Court that his firm has not been previously employed by any party in the Debtors cases and therefore does not have any interest adverse to the Committee or to the estate. He also gives his assurance that Trenwith has no adverse interests. Based in Melville, New York, American Home Mortgage Investment Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investing in mortgage-backed securities and mortgage loans resulting from the securitization of residential mortgage loans originated and serviced by its subsidiaries. American Home Mortgage and seven affiliates filed for chapter 11 protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047 through 07-11054). James L. Patton, Jr., Esq., Joel A. Waite, Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt & Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC acts as the Debtors' claims and noticing agent. The Official Committee of Unsecured Creditors has selected Hahn & Hessen LLP as its counsel. As of March 31, 2007, American Home Mortgage's balance sheet showed total assets of $20,553,935,000, total liabilities of $19,330,191,000. The Debtors' exclusive period to file a plan expires on Dec. 4, 2007. (American Home Bankruptcy News, Issue No. 9, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN HOME: Picks WL Ross' Bid for Mortgage Servicing Rights --------------------------------------------------------------- American Home Investment Corp., an affiliate of American Home Mortgage Investment Corp., has selected the stalking horse bid of AH Mortgage Acquisition Co., an entity sponsored by WL Ross & Co. LLC, as the highest and best offer for American Home's mortgage servicing platform and mortgage servicing rights. The sale of the servicing business is subject to the approval of the U.S. Bankruptcy Court for the District of Delaware. A sale approval hearing is scheduled for Oct. 15, 2007. Financial closing of the transaction is anticipated by the end of October. The purchase price payable under the agreement is based on a formula, tied to the amount of unpaid principal loan balances and outstanding servicing advances as of the financial closing date. American Home estimates, based on current account balances and certain other assumptions, that the total purchase price will be approximately $500 million. Based in Melville, New York, American Home Mortgage Investment Corp. (OTC:AHMIQ) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investing in mortgage-backed securities and mortgage loans resulting from the securitization of residential mortgage loans originated and serviced by its subsidiaries. American Home Mortgage and seven affiliates filed for chapter 11 protection on Aug. 6, 2007 (Bankr. D. Del. Lead Case No. 07-11047). James L. Patton, Jr., Esq., Joel A. Waite, Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt & Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC acts as the Debtors' claims and noticing agent. The Official Committee of Unsecured Creditors has selected Hahn & Hessen LLP as its counsel. As of March 31, 2007, American Home Mortgage's balance sheet showed total assets of $20,553,935,000, total liabilities of $19,330,191,000. The Debtors' exclusive period to file a plan expires on Dec. 4, 2007. AMERICAN HOME: Prosecutors Conduct Probe on Possible Fraud ---------------------------------------------------------- Robert E. Kessler and Daniel Wagner of newsday.com, citing several sources, reported that federal prosecutors and the U.S. Federal Bureau of Investigation have opened an investigation into whether criminal misconduct was involved in the collapse of Melville-based American Home Mortgage. According to the report, the prosecutors are investigating whether various federal criminal statutes have been violated that resulted in the company's Chapter 11 filing on August 6, 2007. "Among the statutes are conspiracy, securities, mail and wire fraud, and money laundering, the sources said," according to newsday. American Home, previously one of the United States' 10 largest mortgage lenders, were among the many companies that were severely affected by the collapse of the secondary loan mortgage industry. More than 40 lenders and originators have shut down or filed for bankruptcy in the past year, according to data compiled by National Mortgage News. Michael Strauss, chairman, chief executive officer, and president of American Home, had previously stated that the company was adversely affected by announcements from many mortgage originators concerning lowered earnings and credit stress. Those writedowns, Mr. Strauss said, led to significant margin calls with respect to American Home's credit facilities. As of late July, American Home became unable to meet the margin calls, and as consequence, most of American Home's warehouse lenders provided notices of default and notified the company that they intend to exercise their rights, including the right to sell the mortgage loans financed under the credit facilities and offset the proceeds against the company's obligations. American Home is already facing several class action lawsuits filed on behalf of parties who acquired American Home shares during a one-year period ended July 27, 2007. The lawsuits charged American Home and its officers and directors violated Securities and Exchange Commission rules by overstating its financial results, failing to write-down the value of certain of the loans in its portfolio as the loans had declined substantially in value. Based in Melville, New York, American Home Mortgage Investment Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investing in mortgage-backed securities and mortgage loans resulting from the securitization of residential mortgage loans originated and serviced by its subsidiaries. American Home Mortgage and seven affiliates filed for chapter 11 protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047 through 07-11054). James L. Patton, Jr., Esq., Joel A. Waite, Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt & Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC acts as the Debtors' claims and noticing agent. The Official Committee of Unsecured Creditors has selected Hahn & Hessen LLP as its counsel. As of March 31, 2007, American Home Mortgage's balance sheet showed total assets of $20,553,935,000, total liabilities of $19,330,191,000. The Debtors' exclusive period to file a plan expires on Dec. 4, 2007. (American Home Bankruptcy News, Issue No. 9, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ATARI INC: Majority Stockholder Removes 5 Members from Board ------------------------------------------------------------ Atari Inc.'s majority stockholder, California U.S. Holdings Inc., a wholly owned subsidiary of Infogrames Entertainment S.A., has removed James Ackerly, Ronald C. Bernard, Michael G. Corrigan, Denis Guyennot, and Ann E. Kronen from the Board of Directors of Atari via written stockholder consent effective as of October 5, 2007. The Board is left with Infogrames Chief Operating Officer Thomas Schmider, Deputy Operating Chief Jean-Michel Perbet and Infogrames board member Evence-Charles Coppee, Kevin Kingsbury of The Wall Street Journal relates. Headquartered in New York, Atari Incorporated, (NASDAQ: ATAR) -- http://www.atari.com-- together with its subsidiaries, publishes, develops, and distributes video game software in North America. It offers games for various platforms. Its portfolio of games includes action, adventure, strategy, role-playing, and racing. Atari distributes its video game software in the United States, Canada, and Mexico through mass merchants, retail outlets, online outlets, specialty retailers, and distributors. The company, founded in 1992, was formerly known as Infogrames Inc. and GT Interactive Software Corp. It changed its name to Atari Incorporated in 2003 and is a subsidiary of Infogrames Entertainment SA. Going Concern Doubt As reported in the Troubled Company Reporter on Sept. 26, 2007, New York-based Deloitte & Touche LLP expressed substantial doubt about Atari's ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended March 31, 2007. The auditing firm pointed to the company's significant operating losses. The company posted a $69,711,000 net loss on $122,285,000 of total revenues for the year ended March 31, 2007, as compared with a $68,986,000 net loss on $206,796,000 of total revenue in the prior year. The company also posted an operating loss of $77,644,000 in fiscal 2007 as compared to a $62,977,000 in the prior year. AVADO BRANDS: US. Trustee Appoints Three-Member Creditors Panel --------------------------------------------------------------- The U.S. Trustee for Region 16 appointed three creditors to the Official Committee of Unsecured Creditors in the Chapter 11 case of Avado Brands Inc. The Committee members are: 1. The Boelter Companies, Inc. Attn: David C. Schulz P.O. Box 1637 N22 W23685 Ridgeview Parkway West Waukesha, WI 53187 Tel: (262) 523-6076 Fax: (262) 523-6077 2. National Contracting Services Attn: Dennis Bennett 2900 Bristol Street, Building G, Suite 106 Costa Mesa, CA 92626 Tel: (888) 209-8383 Fax: (888) 209-8388 3. General Growth Properties, Inc. Attn: Samuel B. Garber, Assistant General Counsel 110 North Wacker Drive Chicago, IL 60606 Tel: (312) 960-5079 Fax: (312) 442-6374 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' 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. Madison, Georgia-based Avado Brands, Inc., aka Applesouth, -- http://www.avado.com/-- operates about 120 casual dining restaurants under the banners Don Pablo's Mexican Kitchen and Hops Grillhouse & Brewery. The restaurants are located in 22 states in the U.S. As of Sept. 5, 2007, the Debtors employed about 9,970 people. For the year ended July 31, 2007, the Debtors generated about $227.8 million in revenues and a negative EBITDA of $7.8 million. The Debtor filed for chapter 11 protection on Feb. 4, 2004 (Bankr. N.D. Tex. Case No. 04-1555). On April 26, 2005, Judge Steven Felsenthal confirmed Avado's Modified Plan of Reorganization and that Plan became effective on May 19, 2005. On Sept. 5, 2007, Avado filed a voluntary chapter 22 petition (Bankr. D. Del. Case No. 07-11276) to complete an orderly sale of its assets, via Section 363 of the Bankruptcy Code. About 10 of Avado's affiliates also filed for bankruptcy protection on the same date (Bankr. D. Del. Case Nos. 07-11277 through 07-11286). Klee, Tuchin, Bogdanoff & Stern LLP represents the Debtors in their latest restructuring efforts. Donald J. Detweiler, Esq. and Sandra G.M. Selzer, Esq. at Greenberg Traurig, LLP serves as the Debtors' local counsel. In their second filing, the Debtors disclosed estimated assets and debts between $1 million to $100 million. AVAYA INC: Stockholders Approve Silver Lake Merger Agreement ------------------------------------------------------------ Avaya Inc.'s stockholders voted to adopt the merger agreement providing for the company's acquisition by affiliates of Silver Lake Partners and TPG, two private equity firms. Avaya has also disclosed that all regulatory approvals required to complete the transaction have been obtained, including the receipt of clearance from the European Commission. On June 4, 2007, Avaya entered into a definitive agreement with an entity formed by Silver Lake Partners and TPG providing for the acquisition of the company. The transaction is expected to be completed by the end of October 2007, subject to the satisfaction or waiver of certain closing conditions. Under the terms of the merger agreement, Avaya stockholders will be entitled to receive $17.50 per share in cash for each share of the company's common stock, without interest. Headquartered in Basking Ridge, New Jersey, Avaya, Inc. (NYSE:AV) -- http://www.avaya.com/-- designs, builds and manages communications networks for more than one million businesses worldwide, including more than 90% of the FORTUNE 500(R). Avaya is a world leader in secure and reliable Internet Protocol telephony systems and communications software applications and services. Avaya has locations in Malaysia, Argentina and the United Kingdom. * * * As reported in the Troubled Company Reporter on June 7, 2007, Standard & Poor's Ratings Services lowered its corporate credit rating on Basking Ridge, New Jersey-based Avaya Inc. two notches to 'B+', and placed the rating on CreditWatch with negative implications. BARNERT HOSPITAL: Wants to Hire Teich Groh as Conflicts Counsel --------------------------------------------------------------- Nathan and Miriam Barnert Memorial Hospital Association asks permission from the U.S. Bankruptcy Court for the District of New Jersey to employ Teich Groh as its conflicts counsel. The Debtor has determined that in certain circumstances, its primary counsel, McCarter & English LLP, may have potential or actual conflicts of interest on matters that arise in this case. To ensure that it receives seamless legal representation to the extent any actual or potential legal conflicts arise, the Debtor has asked Teich Groh to represent it as conflicts counsel during the pendency of its Chapter 11 case. Barry W. Frost, Esq., a member at Teich Groh, tells the Court that the firm's professionals bill: Designation Hourly Rate ----------- ----------- Attorneys $350 - $435 Paraprofessionals $125 Mr. Frost assures the Court that the firm is "disinterested" within the meaning of Section 101(14) of the U.S. Bankruptcy Code. Mr. Frost can be contacted at: Barry W. Frost, Esq. Teich Groh 691 Highway 33 Trenton, New Jersey 07619 Tel: (609) 890-1500 Fax: (609) 890-6961 http://www.teichgroh.com/ About Barnert Hospital Nathan and Miriam Barnert Memorial Hospital Association, dba Barnert Hospital, owns and operates a 256 bed general acute care community hospital located at 680 Broadway in Paterson, New Jersey. The company filed for chapter 11 protection on Aug. 15, 2007 (Bankr. D. N.J. Case No. 07-21631). David J. Adler, Esq., at McCarter & English LLP represents the Debtor. When the Debtor filed for protection from its creditors, it listed estimated assets and debts between $1 million and $100 million. CATALINA MARKETING: Moody's Puts Corporate Family Rating at B2 -------------------------------------------------------------- Moody's Investors Service assigned Catalina Marketing Corporation a B2 Corporate Family Rating, and B2 Probability of Default rating in conjunction with the leveraged buyout by Hellman & Friedman LLC announced April 17, 2007. The proceeds from $1.15 billion of newly issued debt and the about $516 million of common equity contributed by H&F and management was used to fund the $1.7 billion cash purchase price, including the refinancing of existing debt and fees. This is the first time that Moody's has rated Catalina. Moody's has also assigned a Ba3 rating to Catalina's proposed $760 million guaranteed senior secured credit facility, a Caa1 rating to the proposed $330 million guaranteed senior unsecured pay-in- kind toggle bridge facility, and a Caa1 rating to the proposed $160 million guaranteed senior subordinate bridge facility. The senior secured facilities are comprised of a $660 million seven year term loan B, and a $100 million six year revolving credit facility. Both facilities are secured by a first priority claim on the assets of the company and substantially all U.S. subsidiaries, the stock of U.S. subsidiaries, and 65% of the stock of first-tier foreign subsidiaries. The rating outlook is stable. Assignments: Issuer: Catalina Marketing Corporation -- Corporate Family Rating, Assigned B2 -- Probability of Default Rating, Assigned B2 -- Senior Secured Bank Credit Facility, Assigned Ba3/LGD2-28 -- Senior Unsecured Regular Bond/Bridge Credit Facility, Assigned Caa1/LGD5-77 -- Senior Subordinated Regular Bond/Bridge Credit Facility, Assigned Caa1/LGD6-93 Catalina's B2 CFR reflects the company's high leverage and vulnerability to cyclical advertising spending. Catalina's leading market position and scale in POP marketing services, good operating margins and growth opportunities from the addition of new retailers to its marketing networks are strengths that position the company favorably within the B2 CFR rating level. Moody's anticipates debt-to-EBITDA (about 7.6x pro forma LTM June 30, 2007, incorporating Moody's standard adjustments) would decline to a 6.3 -- 6.5x range over the next 18-24 months in a favorable economic environment largely through earnings growth. Moody's expects Catalina will generate only modest free cash flow through 2009 as the company completes the rollout of its color coupon printing capacity and seeks to expand the retailer base, although such spending on new retailers is success-based and would enhance long-term cash flow potential. Revenue is concentrated with large and price-sensitive consumer product and pharmaceutical companies and vulnerable to cyclical advertiser spending and shifts by consumers of spending online or to retailers that are not participants in Catalina's marketing networks. The company could grow modestly in a cyclical advertising downturn through the addition of new retailers to its network, but leverage would likely be higher than the aforementioned levels. The stable rating outlook reflects Moody's expectation that price increases related to the new color printing capability, steady increase in the volume of coupon/newsletter prints, and continued expansion of Catalina's retail network beyond the traditional grocery store base will drive moderate growth in revenue and EBITDA. Catalina Marketing Corporation, headquartered in St. Petersburg, Florida, is the leader in point-of-purchase promotional marketing services. The company operates in three business segments: Catalina Marketing Services (61% LTM June 30, 2007 revenue) provides in-store POP coupons at grocery and other retail checkout counters; Catalina Health Resources (21%) provides pharmacy consumers with POP prescription and health condition-specific information; and Catalina Marketing International (18%), which provides the CMS service outside the U.S. Annual consolidated revenue about $477 million. CENTAUR LLC: Moody's Places Corporate Family Rating at B3 --------------------------------------------------------- Moody's Investors Service assigned a B3 corporate family rating and stable rating outlook to Centaur LLC. A B1 (LGD-3, 30%) rating was assigned to the company's $630 million first lien 5- year bank facilities. A Caa1 (LGD-5, 75%) rating was assigned to Centaur's $130 million second lien 6-year term loan. Proceeds from the credit facilities, along with a $200 million 7- year participating PIK subordinated note (not-rated) issued to MH Private Equity Fund LLC will be used to fund the development of racino facilities in greater Indianapolis, IN and Western, Pennsylvania. The B3 corporate family rating considers that Centaur's racino development projects will be entirely debt-financed and that the capitalized interest reserve will only cover the interest requirement through the Hoosier Park development. Centaur is relying mostly on the cash flow from Hoosier Park (June 2008 opening) to cover the interest requirement during the development of Valley View Downs (July 2009 opening). The rating also reflects the development and ramp-up risks inherent in the company's planned racinos with a combined development budget totaling about $830 million (including capitalized interest and a liquidity reserve). Additionally, the rating acknowledges that although Centaur was granted one of two slot licenses awarded to racetracks in Indiana, there is already a significant amount of competition from existing casino facilities in the state, and that Indiana Downs, the other racetrack awarded a slot license, plans to construct and open a competing racino facility in the state within the next two years. Positive ratings consideration is given to the established nature and favorable demographics of the Indiana gaming market along with the strong win per unit results reported by several Pennsylvania racinos already operating. Despite the debt-financed nature of the development, at current slot win per unit rates for both Indiana and Pennsylvania, debt/EBITDA at the end of 2010 could be below 5 times. Recognition is also given to the casino development and operating history of Centaur's management team, and to a lesser degree, the annual EBITDA contribution from the Fortune Valley Hotel & Casino, at less than $10 million annually. The stable rating outlook anticipates that the Indiana project will be up and operating by the expected completion date and will generate a sufficient return to meet debt service requirements and provide cash flow to support the Valley View racino development. The outlook also considers that while the capitalized interest reserve will only cover the interest requirement through the Hoosier Park development, Centaur will have an additional $11 million liquidity reserve and a $25 million of revolver availability, both of which can be used in the event that the ramp-up of Hoosier Park is slower than expected and cash flow from the project is lower than expected. Completion of the Hoosier Park racino on time and on budget along with initial ramp-up indications that meet or exceed current projections could result in an positive rating action. In addition, completion of Valley View Downs on-time and on-budget along with good initial ramp-up indications at that property could result in a further positive rating action. Centaur LLC, is a wholly-owned subsidiary of Centaur Gaming, LLC which, in turn, is a wholly-owned subsidiary of Centaur, Inc. Centaur Inc. owns Hoosier Park, LP, Centaur Colorado, LLC, and Valley View Downs, LP. CHILDREN'S PARACLETE: Voluntary Chapter 11 Case Summary ------------------------------------------------------- Debtor: Children's Paraclete, Inc. 326 Roaring Run Road Boswell, PA 15531 Bankruptcy Case No.: 07-71123 Chapter 11 Petition Date: October 8, 2007 Court: Western District of Pennsylvania (Johnstown) Debtor's Counsel: David J. Novak, Esq. Spence, Custer, Saylor, Wolfe & Rose 400 U.S. Bank Building, P.O. Box 280 Johnstown, PA 15907 Tel: (814) 536-0735 Estimated Assets: $100,000 to $1 Million Estimated Debts: $1 Million to $100 Million The Debtor does not have any creditors who are not insiders. CHRYSLER LLC: UAW Strike Deadline Looms, Contract Talks Stall ------------------------------------------------------------- The United Auto Workers union's deadline to rally against Chrysler LLC draws near as contract negotiations between the parties stall on over wages, health care and other issues, various papers report citing sources familiar with the matter. As reported in yesterday's Troubled Company Reporter, Chrysler has until 11 a.m. today, Wednesday, Oct. 10, 2007, to close its contract negotiations with the UAW, otherwise 49,000 union members will hold a strike against the company. Chrysler employees, sources say, are wary of the track record of new owner Cerberus Capital Management LP, who have less experience with the UAW. As previously reported, Cerberus Capital doesn't want to be burdened with the cost of transferring retiree health care administration to the UAW. Chrysler indicated that it opts to use more convertible bonds, and less cash in a union-administered fund, the Wall Street Journal relates. The company is also reluctant to agree to a deal preventing outsourcing jobs to UAW workers and committing product lines beyond the next contract. Various papers report that the car maker is likely to displace 1,500 non-union workers, probably through early retirement or buyout offers. The lay-offs add to the 11,000 hourly and 2,000 salaried jobs Chrysler had planned to cut over three years, before it was bought by private-equity firm Cerberus Capital Management LP from DaimlerChrysler AG nka Daimler AG. In February 2007, DaimlerChrysler intended to cut 10,000 factory jobs and shut down at least two plants at Chrysler Group to return the U.S.-based division to profitability, Reuters reports citing the Detroit News as its source. According to the report, a hidden restructuring plan called "Project X" aims to transform Chrysler into a smaller, more efficient automaker. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * On Oct. 1, 2007, Standard & Poor's Ratings Services placed its corporate credit ratings on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC on CreditWatch with positive implications. As reported in the Troubled Company Reporter on Aug. 8, 2007, Standard & Poor's Ratings Services revised its loan and recovery ratings on Chrysler LLC's (B/Negative/--) $10 billion senior secured first-lien term loan facility due 2013, following various changes to terms and conditions prior to closing. The $10 billion first-lien term loan now consists of a $5 billion "first-out" tranche and a $5 billion "second-out" tranche, so the aggregate amount of first-lien debt remains unchanged. Accordingly, S&P assigned a 'BB-' rating to the $5 billion "first- out" first-lien term loan tranche. This rating, two notches above the corporate credit rating of 'B' on Chrysler LLC, and the '1' recovery rating indicate S&P's expectation for very high recovery in the event of payment default. S&P also assigned a 'B' rating to the $5 billion "second-out" first-lien term loan tranche. This rating, the same as the corporate credit rating, and the '3' recovery rating indicate S&P's expectation for a meaningful recovery in the event of payment default. Moody's Investors Service has affirmed Chrysler Automotive LLC's B3 Corporate Family Rating, and the Caa1 rating of the company's $2 billion senior secured, second lien term loan in connection with Monday's closing of DaimlerChrysler AG's sale of a majority interest of Chrysler Group to Cerberus Capital Management LLC. CLOROX CO: Prices $750 Million Senior Notes Offering ---------------------------------------------------- The Clorox Company has priced the offering of $750 million aggregate principal amount of its senior notes in an underwritten registered public offering. The senior notes consist of $400 million aggregate principal amount of 5.95% senior notes due 2017, and $350 million aggregate principal amount of 5.45% senior notes due 2012. The offering was made pursuant to an effective shelf registration statement filed by The Clorox Company with the U.S. Securities and Exchange Commission on Oct. 3, 2007. The offering is expected to close on Oct. 9, 2007, subject to customary closing conditions. J.P. Morgan Securities Inc., Citigroup Global Markets Inc. and Goldman, Sachs & Co. acted as joint lead book-running managers. Clorox has filed a prospectus supplement and an accompanying prospectus with the Securities and Exchange Commission in connection with the offering of the senior notes. Copies of these materials are available by contacting: J.P Morgan Securities Inc. 270 Park Ave. New York NY 10017 Tel: (212) 834-4533 Citigroup Global Markets Inc. 388 Greenwich St. New York, NY 10013, Tel. (877) 858-5407 -- or -- Goldman, Sachs & Co. 85 Broad St. New York, NY 10004 Tel: (866) 471-2526 Electronic copies of the prospectus supplement and accompanying prospectus are available at http://www.sec.gov/ Clorox intends to use the net proceeds from the offering to retire commercial paper issued in connection with its repurchase of its common stock under an accelerated stock repurchase agreement entered into on Aug. 10, 2007. About Clorox Company Headquartered in Oakland, California, The Clorox Company (NYSE: CLX) -- http://www.thecloroxcompany.com/-- provides household cleaning products and reaches beyond bleach. Although best known for bleach (leader worldwide), Clorox makes laundry and cleaning items (Formula 409, Pine-Sol, Tilex), cat litter (Fresh Step), car care products (Armor All, STP), the Brita water- filtration system (in North America), and charcoal briquettes (Kingsford). The company has locations worldwide, including the Philippines, South Korea, Hungary, Russia and the United Kingdom. At Dec. 31, 2006, Clorox's balance sheet showed total assets of $3,624 million and total liabilities of $3,657 million resulting in a stockholders' deficit of $33 million. The company reported a stockholders' deficit of $156 million at June 30, 2006. COAST FOUNDRY: Wants to Hire Help-U-Sell as Real Estate Broker -------------------------------------------------------------- Coast Foundry & Manufacturing Co. asks the U.S. Bankruptcy Court for the Central District of California for permission to employ Help-U-Sell Flint Realty as its real estate broker. Help-U-Sell will help the Debtor sell its property at 2696 East First Street in LaVerne, California, which the Debtor says, it no longer uses since July 2006. The property includes a big and small building formerly used as a foundry and eating area. Pursuant to a listing agreement, the Debtor will pay the firm a commission of 1.5% of the purchase price of the property. Also under the listing agreement, the buyer's broker will get 2.5% of the purchase price. The Debtor has not paid Help-U-Sell any retainer. The Debtor assures the Court that the firm does not hold or represent any interest adverse to the estate. The firm can be reached at: Help-U-Sell Flint Realty 3495 Concours, Unit B Ontario, CA 91764 Tel: (909) 980-6162 Founded in 1946, Coast Foundry & Manufacturing Co., -- http://www.coastfoundrymfg.com/-- formerly Pacific Castings & Manufacturing Co., designs, manufactures and assembles component parts for bathroom fixtures and toilets. It has one facility at Pomona, California and owns a non-operating foundry at LaVerne, California. The company produces about 115,000 fill valves and flappers combined per day, not counting a line of brass fill valves, flush valves, urinal spud fittings, and trip lever handles. There are 112 different product variations on flush valves and fill valves alone. The Debtor filed for Chapter 11 bankruptcy protection on Aug. 20, 2007 (Bankr. C.D. Calif. Case No. 07-17245). Marcus A. Tompkins, Esq. at SulmeyerKupetz, P.C. represents the Debtor in its restructuring efforts. When it filed for bankruptcy, the Debtor had total assets of $7,366,859 and total debts of $20,375,426. CREDIT SUISSE: Moody's Assigns Low-B Ratings on Six Certs. Classes ------------------------------------------------------------------ Moody's Investors Service assigned definitive ratings to securities issued by Credit Suisse Commercial Mortgage Trust Series 2007-C4. The provisional ratings issued on September 5, 2007 have been replaced with these definitive ratings: -- Class A-1, $25,500,000, rated Aaa -- Class A-2, $219,200,000, rated Aaa -- Class A-3, $333,792,000, rated Aaa -- Class A-AB, $36,935,000, rated Aaa -- Class A-4, $566,172,000, rated Aaa -- Class A-1-A, $275,286,000, rated Aaa -- Class A-M, $50,000,000, rated Aaa -- Class A-1-AM, $158,126,000, rated Aaa -- Class A-J, $50,000,000, rated Aaa -- Class A-1-AJ, $61,868,000, rated Aaa -- Class B, $23,414,000, rated Aa1 -- Class C, $28,618,000, rated Aa2 -- Class D, $23,414,000, rated Aa3 -- Class E, $18,211,000, rated A1 -- Class F, $18,211,000, rated A2 -- Class G, $20,813,000, rated A3 -- Class H, $20,812,000, rated Baa1 -- Class J, $26,016,000, rated Baa2 -- Class K, $28,618,000, rated Baa3 -- Class L, $20,812,000, rated Ba1 -- Class M, $7,805,000, rated Ba2 -- Class N, $5,203,000, rated Ba3 -- Class O, $5,203,000, rated B1 -- Class P, $5,203,000, rated B2 -- Class Q, $7,805,000, rated B3 -- Class A-X, $2,081,264,493*, rated Aaa *Approximate notional amount CREST 2003-2: Moody's Holds Ba1 Ratings on Two Cert. Classes ------------------------------------------------------------ Moody's Investors Service affirmed the ratings of 11 classes of Crest 2003-2 Ltd., Collateralized Debt Obligations, Series 2003-2 as: -- Class A-1, $115,832,998, affirmed at Aaa -- Class A-2, $6,799,421, affirmed at Aaa -- Class A-3, $20,000,000, affirmed at Aaa -- Class B-1, $2,000,000, affirmed at Aaa -- Class B-2, $46,750,000, affirmed at Aaa -- Class C-1, $2,000,000, affirmed at Aa2 -- Class C-2, $27,250,000, affirmed at Aa2 -- Class D-1, $3,875,000, affirmed at A3 -- Class D-2, $25,375,000, affirmed at A3 -- Class E-1 $250,000, affirmed at Ba1 -- Class E-2, $17,625,000, affirmed at Ba1 As of the Sept. 28, 2007 remittance statement, the transaction's aggregate bond balance has decreased by about 1.1% to $321.4 million from $325 million at securitization. The notes are collateralized by all or a portion of 70 subordinate classes from 39 fixed rate CMBS pools (87% of the transaction), debt securities from five REITs (6.8%), eight credit tenant lease securities (3.5%), one CDO certificate (1.6%) and two B Notes (1%). The decrease in the note balance is primarily due to amortization of the CTL securities and the pay down of the B Notes. Moody's is affirming all classes due to stable pool performance. Of the 49 CMBS classes rated by Moody's, one class has been upgraded since last review. Moody's reviewed the shadow ratings of the 21 CMBS classes not rated by Moody's and upgraded the shadow rating of 12 classes and downgraded the shadow rating of one class. Moody's uses a weighted average rating factor as an overall indicator of the credit quality of a CDO transaction. Based on Moody's analysis, the current WARF has increased slightly to 1,090 compared to 1,065 at last review and compared to 1,142 at securitization. The distribution of ratings (actual and shadow ratings) is: Aaa - A3 (9.9% compared to 6% at last review), Baa1 - Baa3 (25.4% compared to 28.8% at last review), Ba1 - Ba3 (57.3% compared to 58.7% at last review), B1 - B3 (6.8% compared to 6.6% at last review) and Caa1 - Caa3 (0.7% compared to 0% at last review). The CMBS certificates are from pools securitized between 1997 and 2003. The largest vintage exposures are 2003 (52.2%), 2002 (29.7%) and 2001 (9.8%). The largest CMBS exposures are GSMS 2003-C1 (4.76%), GMACC 2003-C2 (4.64%), WBCMT 2003-C5 (4.64%), JPMCC 2003- ML1A (4.64%) and LBUBS 2003-C1 (4.64%). CROSSWINDS AT ARROYO: Files List of Largest Unsecured Creditors --------------------------------------------------------------- Crosswinds at Arroyo Seco LLC filed with the U.S. Bankruptcy Court for the District of Arizona a list of its five largest unsecured creditors. Entity Claim Amount ------ ------------ Mountain Funding $1,000,000 c/o Bradley E. Pearce 401 South Tryon Street, #2600 Charlotte, NC 28202 Territories West Management, $260,000 Inc. Attn: Howard Utter 3531 North Sonoran Heights Mesa, AZ 85207 CMX, LLC $158,695 Attn: Darrell Wilson 7740 North 16th Street Phoenix, AZ 85020 Fennemore Craig, P.C. $13,411 Southwest Ground-Water $3,575 Based in Buckeye, Arizona, Crosswinds at Arroyo Seco, LLC -- http://www.crosswindsus.com/national/CrosswindsAZ.htmNational/ -- is a real estate development firm. The company is developing "Arroyo Seco", a planned community located next to Verrado, a 7,000 home upscale master-planned golf-community. As master developer, the company is currently in the process of final engineering and obtaining entitlement. A preliminary plant has been approved and Crosswinds plans to offer lots to builders upon final plat approval. The Debtor filed for bankruptcy protection on Aug. 22, 2007 (Bankr. D. Ariz. Case No. 07-04162). Steven N. Berger, Esq. at Engelman Berger, P.C. represents the Debtor in its restructuring efforts. When the Debtor filed for bankruptcy, it listed assets and debts between $1 million and $100 million. DYNEGY INC: Earns $76 Million in Second Quarter Ended June 30 ------------------------------------------------------------- Dynegy Inc. reported net income of $76 million for the second quarter ended June 30, 2007. This compares to a net loss of $207 million for the second quarter of 2006. Second quarter 2007 financial results included $33 million of after-tax mark-to-market gains, of which $26 million relates to positions expected to settle in 2007, and $7 million relates to positions expected to settle in 2008 and beyond. Second quarter 2007 financial results included the following significant after-tax items: -- $20 million gain related to the Kendall toll settlement; -- $19 million gain associated with changes in value of interest rate swaps; and -- $16 million charge related to Illinois rate relief. Second quarter 2006 financial results included the following significant after-tax items: -- $179 million in charges related to liability management activities; and -- $11 million charge related to legal and settlement charges. "During the second quarter 2007, we benefited from the addition of approximately 8,000 megawatts of new operating assets, which today contribute to the diversity and earnings power of our generation business," said Bruce A. Williamson, chairman and chief executive officer of Dynegy Inc. "Also, our commercial and operational focus on being prepared to capture market opportunities enabled us to capitalize on higher electricity demand and attractive energy prices. These factors enabled us to provide positive quarterly results for our investors and reliable, economic energy for the markets we serve. "We also placed $1.65 billion of long-term, unsecured bonds during the second quarter, the proceeds of which were used to repay project debt assumed through the LS Power combination and to eliminate the associated cash flow sweeps," Williamson added. "As such, free cash flow from these assets can now go to the highest and best use for our stockholders. Given the company's solid financial foundation, combined with improving market fundamentals in our key regions, we anticipate the continued strong performance of our well-positioned, diversified power generation assets." Interest expense and debt conversion costs totaled $84 million for the second quarter 2007, compared to $354 million for the second quarter 2006. 2006 results included debt conversion and transaction costs of $247 million and acceleration of financing costs of $33 million resulting from the company's liability management program executed in the second quarter 2006. The second quarter 2007 income tax expense from continuing operations was $30 million, compared to an income tax benefit from continuing operations of $117 million for the second quarter 2006. Balance Sheet At June 30, 2007, the company's consolidated balance sheet showed $13.92 billion in total assets, $8.73 billion in total liabilities, ($16 million) in minority interest, and $5.20 billion in total stocholders' 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?2420 Liquidity As of June 30, 2007, Dynegy's liquidity was approximately $1.0 billion. This consisted of $323 million in cash on hand and $710 million in unused availability under the company's credit facility. In August 2007, cash on hand was utilized to repay the drawn portion of the revolving credit facility, which totaled $275 million. As of August 7, cash on hand was $577 million and unused availability under the company's credit facility was $1.04 billion, resulting in liquidity of approximately $1.6 billion. Cash Flow Cash flow from operations, including working capital changes, totaled an inflow of $157 million for the second quarter 2007. Cash outflows from investing activities for the second quarter 2007 totaled $873 million. This consisted of capital expenditures and business acquisition and transaction costs, net of cash acquired, of $153 million and $126 million, respectively, and changes in restricted cash and other of $594 million. The increase in a restricted cash account of $650 million was funded by borrowings which were reflected as a financing cash inflow. For the second quarter 2007, Dynegy's free cash flow was an outflow of $716 million. About Dynegy Inc. Headquartered in Houston, Texas, Dynegy Inc. (NYSE: DYN) -- http://www.dynegy.com/-- produces and sells electric energy, capacity and ancillary services in key U.S. markets. The company's power generation portfolio consists of more than 12,800 megawatts of baseload, intermediate and peaking power plants fueled by a mix of coal, fuel oil and natural gas. * * * As reported in the Troubled Company Reporter on May 18, 2007, Moody's Investors Service affirmed the ratings of Dynegy Holdings, Inc., including the company's Corporate Family Rating at B1, its senior unsecured rating at B2, its Bank Loan Rating at Ba1, and its Speculative Grade Liquidity Rating at SGL-3. Moody's also assigned a B2 rating to the company's planned issuance of $1.1 billion in senior unsecured notes, and upgraded DHI's second lien notes to Ba1 from Ba2. EMPIRE BEEF: Gets $4 Million Interim DIP Financing -------------------------------------------------- Empire Beef Co. obtained authority, on an interim basis, from the U.S. Bankruptcy Court for the Western District of New York to obtain additional credit using a prepaid inventory cap of $4 million rather than the $2 million prepaid inventory cap contained in the Debtor's debtor-in-possession credit agreement with Bank of America NA. Bank of America agreed to provide the Debtor up to $29.5 million in postpetition financing. Steven Levine, Lori Levine and 15 McFadden, Inc. serve as limited guarantors of the loan. As adequate protection, the Debtor grants Bank of America superpriority claims payable from all prepetition and postpetition property of the Debtor's estate and its proceeds. The Debtor will use the funds to: a) satisfy working capital and operational needs; b) maintain relationships with vendors, suppliers and customers; and c) fund payroll. Headquartered in Rochester, New York, Empire Beef Co. -- http://www.empirebeef.com/-- is a wholesaler of meat and foodservice distributor. The company filed for Chapter 11 protection on Sept. 6, 2007 (Bankr. W. D. NY Case No. 07-22226). Garry M. Graber, Esq., at Hodgson Russ LLP represents the Debtor. Peter Scribner, Esq. is counsel to the Official Committee of Unsecured Creditors. When the Debtor filed for protection from its creditors, it listed assets between $1 million to $100 million. EMPIRE BEEF: Wants JC Jones & Associates as Financial Advisors -------------------------------------------------------------- Empire Beef Co. Inc. asks the U.S. Bankruptcy Court for the Western District of New York for authority to employ JC Jones & Associates LLC as its financial advisors and turnaround managers. The firm will: (a) develop and implement cash management processes and strategies including coordination with DIP provider and supply vendors; (b) prepare financial information for court, creditors, and parties-of-interest including required filings and requested information; (c) assist the Debtor, Debor's professionals and other parties-of-interest in preparation of any documents to be filed with the Court or executed in connection with the Debtor's bankruptcy case; (d) provide communications to parties of interest on an needed basis, including attending meetings of official commmittees appointed in the bankruptcy case; (e) identify and help implement short-term liquidity generating initiatives; (f) testify at hearings in connection with the case; (g) develop and provide supporting analyses, to revised business plans reacting to changes in circumstances in the market, competition, and product supply; (h) prepare information and analyses necessary for confirmation of the Plan and disclosure statement; (i) provide support or operational efficiency in marketing and sales, order fulfillment, supply chain procurement, logistics and inventory control; and (j) provide general business advice and consulting to management and the Debtor's professionals as requested and consistent with the above outlined services. Ronald S. Castor, Esq., a partner in the JC Jones, tells the Court of the professionals' hourly rates: Designation Hourly Rates ----------- ------------ Managing Partner $275 - $400 Professional Consultants $225 - $350 Support Personnel $100 - $150 Mr. Castor relates that these individuals are specifically assigned to work on this engagement and their hourly rates are: Professional Hourly Rates ------------ ------------ Jeffrey Jones, Managing Partner $275 Ronald Castor, Consultant-Lead $245 John Bellardini, Consultant $225 Michelle Burnett, Consultant $225 Administrative Assistant, Support Personnel $100 Mr. Castor assures the Court that the firm is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Rochester, New York, Empire Beef Co. -- http://www.empirebeef.com/-- is a wholesaler of meat and foodservice distributor. The company filed for Chapter 11 protection on Sept. 6, 2007 (Bankr. W. D. NY Case No. 07-22226). Garry M. Graber, Esq., at Hodgson Russ LLP represents the Debtor. Peter Scribner, Esq. is counsel to the Official Committee of Unsecured Creditors. When the Debtor filed for protection from its creditors, it listed assets between $1 million to $100 million. FALCON BARNETT: Voluntary Chapter 11 Case Summary ------------------------------------------------- Debtor: Falcon Barnett Drilling, L.L.C. 2220 San Jacinto Boulevard, Suite 250 Denton, Tx 76205 Tel: (940) 241-2396 Bankruptcy Case No.: 07-42322 Chapter 11 Petition Date: October 7, 2007 Court: Eastern District of Texas (Sherman) Debtor's Counsel: John Y. Bonds, III, Esq. Shannon, Gracey, Ratliff & Miller 777 Main Street, Suite 1500, U.P.R. Plaza Fort Worth, TX 76102-0999 Tel: (817) 336-9333 Fax: (817)336-3735 -- and -- Leonard H. Simon, Esq. Pendergraft & Simon L.L.P. The Riviana Building, Suite 800 2777 Allen Parkway Houston, TX 77019 Tel: (713) 528-8555 Fax: (832) 202-2810 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor does not have any creditors who are not insiders. FEDDERS CORP: Gets Final Approval on $79.4 Million DIP Financing ---------------------------------------------------------------- Fedders Corporation has received final approval from the U.S. Bankruptcy Court for the District of Delaware to obtain debtor-in-possession financing from Goldman Sachs Credit Partners L.P., subject to certain conditions and limitations. Under the terms of the financing agreement, Goldman Sachs Credit Partners will provide a $33 million senior secured revolving facility. This facility is in addition to the existing $46.4 million term loan from Goldman Sachs, which will remain in place. "We are pleased to report the Court granted final approval of the financing agreement," Michael Giordano, Fedders' President and Chief Executive Officer, said. "The financing will provide the Company with sufficient liquidity as we move forward in the reorganization process." In August 2007, Fedders obtained interim Court approval to borrow under the DIP Facility, which the Official Committee of Unsecured Creditors opposed, contending that it costs too much and that its terms permit calling a default any time. Headquartered in Liberty Corner, New Jersey and founded in 1896, Fedders Corporation (OTC: FJCC) -- http://www.fedders.com/-- manufactures air treatment products, including air conditioners, furnaces, air cleaners and humidifiers for residential, commercial and industrial markets. The company filed for Chapter 11 protection on Aug. 22, 2007 (Bankr. D. Del. Case No. 07-11182). Sixteen debtor-affiliates filed separate chapter 11 petitions. On Aug. 23, 2007, the Court consolidated the cases in Fedders North America's case (Bankr. D. Del. Case No. 07-11176). Norman L. Pernick, Esq. of Saul, Ewing, Remick & Saul LLP represents the Debtors in their restructuring efforts. Dennis A. Meloro, Esq., and Donald J. Detweiler, Esq., at Greenberg Traurig LLP serve as counsel to the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed total assets of $186,300,000 and total debts of $322,000,000. FGX INT'L: S&P Holds 'B' Rating and Revises Outlook to Stable ------------------------------------------------------------- Standard & Poor's Ratings Services revised its ratings outlook on Smithfield, Rhode Island-based optical accessories designer and marketer FGX International Inc. to stable from negative. At the same time, Standard & Poor's affirmed its ratings on the company, including the 'B' corporate credit rating. "The outlook revision reflects the company's improving operating trends and credit protection measures," said Standard & Poor's credit analyst Susan Ding. Sales for the six months ended June 20, 2007, increased by 29%, reflecting growth in both sunglasses and optical readers. The company is also benefiting from a better product mix and cost controls, resulting in improved margins. Leverage has also declined. Total debt to EBITDA was 4.2x, down from a high point of 5.4x at the end of fiscal 2005. FGX is the holding company that owns the FosterGrant and Magnavision businesses. The company enjoys significant market share in the sunglass and nonprescription reading glass segments of the mass channel, and is the largest supplier of popular-priced eyewear ($30 retail and less). Because both brands are mature, FGX acquired several other new brands (both owned and licensed) that will provide entry into the premium-priced segment of the market through the specialty and department store channels. "We expect the company to improve financial measures and reduce leverage as it grows," said Ms. Ding. FLEETWOOD ENT: Posts $2.3 Million Net Loss in Qtr. Ended July 29 ---------------------------------------------------------------- Fleetwood Enterprises Inc. reported a net loss of $2.3 million for the first quarter ended July 29, 2007, compared with a net loss of $411,000 for the first quarter of last year. The tax provision for the quarter includes a $2.8 million non-cash charge related to a reduction in the carrying value of the deferred tax assets. Results for the comparable quarter of the prior year included a pretax gain of $18.5 million and a related deferred tax charge of $3.6 million, generated by the repurchase of one million shares of Fleetwood's 6% convertible trust preferred securities in July 2006. The company reported consolidated revenues from continuing operations of $510.2 million, down 4% from $529.8 million in the prior year. Revenues in the company's primary businesses declined 3% for the RV Group and 1% for the Housing Group. Fleetwood generated operating income of $6.0 million in the first quarter despite the decline in revenues, compared to an operating loss of $8.2 million in the prior year. Operating income for the quarter included a $5.3 million gain from the sale of an idle RV facility, partially offset by an $800,000 impairment charge related to another idle RV facility, while last year's operating loss included a gain of $2.1 million from the sale of two idle housing plants. "All of our operating units except the travel trailer division were profitable for the quarter," said Elden L. Smith, president and chief executive officer. "Fleetwood's financial progress demonstrates the viability of our efforts to enhance efficiencies and cut costs, despite having experienced no improvement in industry conditions over the last twelve months." Balance Sheet At July 29, 2007, the company's consolidated balance sheet showed $687.1 million in total assets, $603.9 million in total liabilities, and $83.2 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended July 29, 2007, are available for free at http://researcharchives.com/t/s?2421 Second Quarter Outlook "If conditions remain stable throughout the second quarter, we would expect to see results similar to those of the first quarter," Smith concluded. "However, uncertainty in the real estate market has spread to the financial markets, which, in turn, could negatively impact consumer confidence. Because all of our businesses are affected by these factors, we remain cautious in our outlook. At this time, backlogs are healthy in most areas, and we believe we are making the right moves in each of our business segments to improve the competitiveness of our products, increase our share of revenues, minimize costs, and improve capacity utilization and profitability." About Fleetwood Enterprises Headquartered in Riverside, California, Fleetwood Enterprises, Inc. (NYSE: FLE) -- http://www.fleetwood.com/-- produces recreational vehicles and manufactured homes. Fleetwood operates facilities strategically located throughout the nation, including recreational vehicle, manufactured housing and supply subsidiary plants. * * * As reported in the Troubled Company Reporter on Oct. 3, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit, 'CCC+' senior subordinated debt, and 'CCC' trust preferred securities ratings on Fleetwood Enterprises Inc. The affirmations affect $260 million in securities. The outlook is negative. FLEXTRONICS INT'L: Solectron Global to Redeem 8% Senior Notes ------------------------------------------------------------- Flextronics International Ltd. has announced that, in connection with its acquisition of Solectron Corporation on Oct. 1, 2007, Solectron Global Finance Ltd. notified holders of its outstanding 8.00% Senior Subordinated Notes due 2016 (8% Notes) that it is exercising its right to redeem the 8% Notes prior to maturity pursuant to the optional redemption procedures provided for under the indenture governing the 8% Notes. The 8% Notes will be redeemed at 100% of the principal amount of the 8% Notes, plus (i) accrued and unpaid interest to, but not including, the date of redemption, and (ii) the make-whole premium provided for under the indenture. The redemption date will be Oct. 31, 2007. Separately, Solectron Global Finance Ltd. has notified holders of the 8% Notes that it will repurchase any 8% Notes delivered for repurchase pursuant to a change of control offer to repurchase at a price of 101% of their aggregate principal amount, plus accrued and unpaid interest to the date of repurchase. Solectron Global Finance Ltd. will repurchase all 8% Notes tendered pursuant to this offer on Oct. 31, 2007. Any 8% Notes that are not repurchased pursuant to the repurchase offer will be redeemed on Oct. 31, 2007. U.S. Bank National Association is acting as the paying agent for the repurchase offer for the 8% Notes and the redemption agent for the redemption. As a result of Flextronics's acquisition of Solectron, Flextronics intends to deliver notice on Oct. 31, 2007 of a change in control purchase offer for all of Solectron's outstanding 0.50% Convertible Senior Notes due 2034 and Solectron's 0.50% Convertible Senior Notes Series B due 2034 in accordance with the procedures set forth in the indentures governing the Convertible Notes. It is expected that any Convertible Notes tendered pursuant to these change of control purchase offers will be repurchased on or about Dec. 14, 2007. All Convertible Notes tendered will be repurchased at a price equal to 100% of their outstanding principal amount, plus accrued and unpaid interest to, but excluding, the date of repurchase. 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 including Brazil, Mexico, Hungary, Sweden, United Kingdom, among others. * * * As reported in the Troubled Company Reporter on Oct. 4, 2007, Fitch Ratings has completed its review of Flextronics International Ltd. following the company's acquisition of Solectron Corp. and resolved Flextronics' Rating Watch Negative status by affirming these ratings: Issuer Default Rating at 'BB+'; and Senior unsecured credit facility at 'BB+'. Fitch also rated Flextronics' new senior unsecured Term B loan at 'BB+'. Additionally, Fitch has downgraded the rating on Flextronics' senior subordinated notes from 'BB' to 'BB-'. The Rating Outlook is Negative. At the same time, Moody's Investors Service confirmed the ratings of Flextronics International Ltd. with a negative outlook and assigned a Ba1 rating to the company's new $1.75 billion delayed draw unsecured term loan in response to the closing of the Solectron acquisition. The initial draw on the term loan ($1.1 billion) will finance the cash portion of the merger consideration. GARDNER DENVER: Earns $44.8 Million in Quarter Ended June 30 ------------------------------------------------------------ Gardner Denver Inc. reported that net income for the three months ended June 30, 2007, was $44.8 million, compared to net income of $33.0 million for the same period last year. For the six-month period of 2007, net income was $87.6 million, compared with net income of $63.5 million for the firts six months of 2006. Diluted earnings per share for the three months ended June 30, 2007, were $0.83, 34% higher than the comparable period of 2006. For the six-month period of 2007, diluted EPS were $1.63, 37% higher than the comparable period of the previous year. Revenues increased $43.6 million to $459.9 million for the three months ended June 30, 2007, compared to the same period of 2006. Revenues for the first six months of 2007 increased $85.7 million to $901.3 million, compared to $815.6 million in the same period of 2006. Interest expense decreased $2.7 million to $6.9 million for the three months ended June 30, 2007, compared to the same period of 2006, while interest expense decreased $6.2 million to $13.6 million in the six-month period of 2007, compared to the same period of 2006, due to lower average borrowings. "Gardner Denver achieved a new record in revenues and net income during the second quarter," said Ross J. Centanni, chairman, president and chief executive officer of Gardner Denver. "Year- over-year, we continued to expand the company's total segment operating earnings as a percentage of revenues and net income grew more than three times faster than revenues. We continued to realize the benefit of some of our integration activities and have initiated additional cost reduction programs in Europe. I believe reductions in inventory will be realized in the second half of 2007 as we continue our focus on lean manufacturing initiatives and business process improvements. "In the second quarter of 2007, Compressor and Vacuum Products segment revenues grew 9% compared to the second quarter of 2006. Sequentially, organic growth accelerated as we resolved some manufacturing inefficiencies associated with our acquisition integration initiatives. We continued to see strong demand outside of the United States, particularly in Europe and Asia, while year-over-year orders and revenues were relatively flat in the United States, as expected, primarily due to lower demand for transportation applications. "Fluid Transfer Products segment revenues grew 16% in the second quarter of 2007, compared with the second quarter of 2006.," said Mr. Centanni. "Orders grew 13% in the second quarter due to our receipt of certain contracts for liquid natural gas and compressed natural gas loading arms to be shipped in the first half of 2008. These orders more than offset the expected decline in orders for drilling pumps, compared to the same period of the previous year." Commenting on profitability initiatives, Mr. Centanni stated, "Our previously announced integration projects remain substantially on schedule, while additional profitability improvement projects were initiated in the second quarter. Our product line transfers from Nuremberg, Germany to China and Brazil were substantially completed during the second quarter. Labor productivity and supply chain efficiencies are now being realized, which are expected to result in annualized savings of approximately $3 million. Approximately $300,000 of this benefit was realized in the second quarter of 2007. Liquidity Sources and Debt Cash provided by operating activities was approximately $54 million in the six-month period of 2007, compared to approximately $23 million in the same period of 2006. The increase in cash provided by operating activities primarily reflects higher net income. The company invested approximately $17.9 million in capital expenditures during the six-month period of 2007, compared to $16.1 million in the same period of 2006. Total debt as of June 30, 2007 was $367.7 million, $39.5 million less than total debt as of Dec. 31, 2006. As of June 30, 2007, debt to total capital was 27.4%, compared to 32.3% on Dec. 31, 2006, and 42.0% on June 30, 2006. Balance Sheet At June 30, 2007, the company's consolidated balance sheet showed $1.83 billion in total assets, $857.8 million in total liabilities, and $974.9 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?241e About Gardner Denver Headquartered in Quincy, Illinois, Gardner Denver Inc. (NYSE: GDI) -- http://www.gardnerdenver.com/-- is a worldwide manufacturer of reciprocating, rotary and vane compressors, liquid ring pumps and blowers for various industrial and transportation applications, pumps used in the petroleum and industrial markets, and other fluid transfer equipment serving chemical, petroleum, and food industries. * * * As reported in the Troubled Company Reporter on Sept. 10, 2007, Moody's Investors Service affirmed Gardner Denver Inc.'s Ba2 corporate family rating and the B1 rating on its $125 million senior subordinated notes due 2013. The outlook was changed to positive from stable. GREAT CIRCLE: Section 341(a) Meeting Scheduled on October 25 ------------------------------------------------------------ The U.S. Trustee for Region 16 will convene a meeting of creditors of Great Circle Family Foods, LLC on Oct. 25, 2007, at 10:00 a.m., at Room 1-159, 411 West Fourth Street in Santa Ana, California. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible officer of the Debtors under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Based in Fullerton, California, Great Circle Family Foods, LLC -- http://www.gcff.com/-- is a Krispy Kreme Doughnuts franchisee with about a dozen stores operating in Southern California. The company and five of its affiliates filed for chapter 11 protection on Aug. 22, 2007 (Bankr. C.D. Calif. Lead Case No. 07-12600). Kim Tung, Esq., Monica Y. Kim, Esq., and Ron Bender, Esq., at Levene, Neale, Bender, Rankin & Brill, L.L.P., represent the Debtors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts between $1 million and $10 million. GREAT CIRCLE: U.S. Trustee Names Seven-Member Creditors Panel ------------------------------------------------------------- The U.S. Trustee for Region 16 appointed seven creditors to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Great Circle Family Foods, LLC and its debtor-affiliates. The Committee members are: 1. The Rancho Mirage Trust Daryl L. Bishop P.O. Box 6157 Beverly Hills, CA 90212 Tel: (310) 273-9540 Fax: (310) 276-7590 2. MKM Oceanside, LLC and Piege Company Mai Agahan c/o Marc Smith, Esq. Krane & Smith 16255 Ventura Boulevard, Suite 600 Encino, CA 91436 Tel: (818) 382-4000 Fax: (818) 382-4001 3. Krispy Kreme Doughnut Corp. Darryl Marsch, Assistant General Counsel 370 Knollwood Street Winston-Salem, NC 27103 Tel: (336) 726-8822 4. Bakemark USA LLC Carol Shokraee 7351 Crider Avenue Pico Rivera, CA 90660 Tel: (562) 949-1054 Fax: (562) 949-2279 5. Paul A. Laufer P.O. Box 3553 Beverly Hills, CA 90212 Tel: (323) 851-8535 Fax: (323) 851-9161 6. Nudnicks LLC Kamprath See Co., LLC c/o Pale Capital Bert Cohen 650 5th Avenue, 6th Floor New York, NY 10019 Tel: (917) 287-8555 Fax: (340) 774-3828 7. Carol Karlovich 2052 Via Casa Alta La Jolla, CA 92037-5732 Tel: (858) 456-4097 Fax: (858) 454-2869 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' 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 Fullerton, California, Great Circle Family Foods, LLC -- http://www.gcff.com/-- is a Krispy Kreme Doughnuts franchisee with about a dozen stores operating in Southern California. The company and five of its affiliates filed for chapter 11 protection on Aug. 22, 2007 (Bankr. C.D. Calif. Lead Case No. 07-12600). Kim Tung, Esq., Monica Y. Kim, Esq., and Ron Bender, Esq., at Levene, Neale, Bender, Rankin & Brill, L.L.P., represent the Debtors. When the Debtors filed for protection from their creditors, they listed estimated assets and debts between $1 million and $10 million. HALO TECHNOLOGY: Court Approves Zeisler & Zeisler as Counsel ------------------------------------------------------------ Halo Technology Holdings Inc. and its debtor-affiliates obtained authority from the U.S. Bankruptcy Court for the District of Connecticut to employ Zeisler & Zeisler P.C. as their bankruptcy counsel. The firm is expected to: (a) advise the Debtors of their rights, powers and duties as Debtors and Debtors-in-Possession continuing to operate and manage their business and property; (b) advise the Debtors concerning, and assisting in the negotiation and documentation of, financing agreements, debt restructuring, cash collateral orders and related transactions; (c) review the nature and validity of liens asserted against the property of the Debtors and advise the Debtors concerning the enforceability of such liens; (d) advise the Debtors concerning the actions that they might take to collect and to recover property for the benefit of their respective estates; (e) prepare on behalf of the Debtors certain necessary and appropriate applications, motions, pleadings, draft orders, notices, schedules and other documents, and review all financial and other reports to be filed in the Debtors chapter 11 cases; (f) advise the Debtors concerning, and prepare responses to, applications, motions, pleadings, notices and other papers which may be filed and served in this Chapter 11 case; (g) counsel the Debtors in connection with the formulation, negotiation and promulgation of a plan of reorganization and related documents; and (h) perform all other legal services for and on behalf of each of the Debtors which may be necessary or appropriate in the administration of their Chapter 11 cases. The Debtors tell the Court that the firm will charge for its legal services on an hourly basis in accordance with its ordinary and customary hourly rates in effect on the date services are rendered. The Debtors further disclose that the firm received a $62,468 retainer prior to their filing for bankruptcy. James Berman, Esq., a principal at Zeisler & Zeisler, assures the Court that his firm does not represent any interest adverse to the Debtors or their estate. Mr. Berman can be reached at: James Berman, Esq. Zeisler & Zeisler, P.C. 558 Clinton Avenue Bridgeport, CT 06605-0186 Tel: (203) 368-4234 Fax: (203) 367-9678 http://www.zeislaw.com/ Greenwich, Conn.-based Halo Technology Holdings, Inc. -- http://www.haloholdings.com/-- fka Warp Technology Holdings Inc., is a holding company whose subsidiaries operate enterprise software and information technology businesses. The company and its affiliates filed for chapter 11 protection on Aug. 20, 2007 (Bankr. D. Conn. Lead Case No. 07-50480). At March 31, 2007, the company reported total assets of $47,344,373 and total liabilities of $45,494,297. HALO TECHNOLOGY: U.S. Trustee Names Three-Member Creditors Panel ---------------------------------------------------------------- The U.S. Trustee for Region 2 appointed three creditors to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Halo Technology Holdings Inc. and its debtor-affiliates. The Committee members are: 1. Bowne of New York City LLC Salvatore Astuto, Credit Manager 55 Water Street New York, NY 10041 Tel: (212) 658-5452 Fax: (212) 658-5496 2. RR Donnelley Receivables Inc. Daniel Pevonka, Senior Credit Manager 3075 Highland Parkway Downers Grove, IL 60515 Tel: (630) 322-6931 Fax: (630) 322-6052 3. Unify Corporation Todd Wille, CEO 2101 Arena Boulevard, Suite 100 Sacramento, CA 95834 Tel: (916) 928-6400 Fax: (916) 928-6408 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' 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. Greenwich, Conn.-based Halo Technology Holdings, Inc. -- http://www.haloholdings.com/-- fka Warp Technology Holdings Inc., is a holding company whose subsidiaries operate enterprise software and information technology businesses. The company and its affiliates filed for chapter 11 protection on Aug. 20, 2007 (Bankr. D. Conn. Lead Case No. 07-50480). At March 31, 2007, the company reported total assets of $47,344,373 and total liabilities of $45,494,297. HALO TECHNOLOGY: Creditors Panel Wants Pepe & Hazard as Counsel --------------------------------------------------------------- The Official Committee of Unsecured Creditors of Halo Technology Holdings Inc. and its debtor-affiliates asks the U.S. Bankruptcy Court for the District of Connecticut for permission to retain Pepe & Hazard LLP as its bankruptcy counsel. As the Committee's counsel, Pepe & Hazard will: a. participate in certain meetings of the Committee; b. meet with representative of the Debtors and the Debtors' professionals; c. advise the Committee regarding proceedings in the Court; d. prepare and file certain pleadings and participate in hearings in the Court; e. monitor the Debtors' activities; f. assist the Committee in maximizing the value to be realized for the unsecured creditors from the Debtors' assets, by sale or otherwise; g. assist the Committee in the formulation and negotiation of a Chapter 11 plan and advise creditors of the Committee's recommendation with respect to any plan; and h. prosecute all possible causes of action. The Committee tells the Court that Kristin B. Mayhew, Esq., a partner at the firm, will bill $360 per hour for this engagement. James C. Graham, Esq., also a partner, bills $430 per hour. To the best of the Committee's knowledge, the firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. The firm's attorneys can be reached at: Kristin B. Mayhew, Esq. Pepe & Hazard LLP 30 Jelliff Lane Southport, CT 06890 Tel: (203) 319-4022 Fax: (203) 319-4034 http://www.pepehazard.com/ --- and --- James C. Graham, Esq. Pepe & Hazard LLP 225 Asylum Street Hartford, CT 06103 Tel: (860) 241-2677 Fax: (860) 522-2796 http://www.pepehazard.com/ Greenwich, Conn.-based Halo Technology Holdings, Inc. -- http://www.haloholdings.com/-- fka Warp Technology Holdings Inc., is a holding company whose subsidiaries operate enterprise software and information technology businesses. The company and its affiliates filed for chapter 11 protection on Aug. 20, 2007 (Bankr. D. Conn. Lead Case No. 07-50480). At March 31, 2007, the company reported total assets of $47,344,373 and total liabilities of $45,494,297. HERCULES INC: Earns $34.5 Million in Second Quarter Ended June 30 ----------------------------------------------------------------- Hercules Incorporated reported net income for the quarter ended June 30, 2007, of $34.5 million as compared to a net loss of $52.3 million for the second quarter of 2006. Net sales in the second quarter of 2007 were $549.0 million, an increase of 10% from the same period last year. Net sales for the six months ended June 30, 2007 were $1.05 billion, an increase of 10% from the prior year, excluding the impact of the FiberVisions transaction. For the second quarter, volume and pricing increased by 7% and 1%, respectively. Rates of exchange increased sales by 3% during the quarter, while mix was 1% unfavorable. Net sales in the second quarter of 2007 increased in all major regions of the world versus the prior year. Sales increased 4% in North America, 18% in Latin America, 15% in Europe, and 11% in Asia Pacific. Reported profit from operations in the second quarter of 2007 was $74.5 million, an increase of 14% compared with $65.6 million for the same period in 2006. Cash flow from operations for the six months ended June 30, 2007, was $140.5 million as compared to $64.0 million for the same period last year. The company has now received $221.7 million, including $23.2 million in July, of a total $240 million in expected federal and state tax refunds. The company also paid $124 million in May 2007 in connection with the Vertac litigation. "The second quarter results demonstrate continued strong sales, earnings and cash flow growth," said Craig A. Rogerson, president and chief executive officer. "Both business franchises, Aqualon and Paper Technologies and Ventures, continue to deliver solid performance." Interest and debt expense was $17.8 million in the second quarter of 2007, an increase of $1.1 million or 7% compared with the second quarter of 2006, reflecting increased variable short term rates, partially offset by lower outstanding debt balances and improved debt mix. Net debt was $721.2 million at June 30, 2007, a decrease of $102 million from year-end 2006. Cash and cash equivalents were $237.9 million at June 30, 2007, as compared to $171.8 million at year-end 2006. Capital spending was $53.8 million for the first six months of the year as compared to $22.9 million in the same period last year. The increase in spending is directed toward growth and expansion projects in our businesses globally. Balance Sheet At June 30, 2007, the company's consolidated balance sheet showed $2.77 billion in total assets, $2.36 billion in total liabilities, and $403.5 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?241f About Hercules Inc. Headquartered in Wilmington, Delaware, Hercules Inc. (NYSE: HPC) -- http://www.herc.com/-- manufactures and markets chemical specialties globally for making a variety of products for home, office and industrial markets. The company has its regional headquarters in China and Switzerland, and a production facility in Brazil. * * * As reported in the Troubled Company Reporter on June 29, 2007, Standard & Poor's Ratings Services revised its outlook on Hercules Inc. to positive from stable and affirmed the existing 'BB' corporate credit rating. IMAX CORP: Will Restate Financial Records on Real Estate Leases --------------------------------------------------------------- IMAX Corporation plans to file a Form 10-K/A for fiscal 2006 to amend its Annual Report on Form 10-K for 2006, which was filed on July 20, 2007. The Form 10- K/A will restate financial statements relating to the company's accounting for certain terms of 7 real estate leases for its owned and operated theatres and corporate facilities, with most of the income statement impact being from 1997 - 2002. The company plans to file a Form 10-Q/A to amend its Form 10-Q filings for the first and second quarters of 2007 for the same reason. Previously, the company had recorded rent reductions received in connection with certain real property leases in the years such reductions were received, rather than on a straight-line basis over the remaining lease term. These reductions included rent holidays and abatements. In addition, the company did not properly record certain leasehold improvements funded by landlord construction allowances. The aggregate amount of the charge at issue is approximately $5.5 - $6.5 million, with approximately $5 million relating to the 1997 – 2002 period. The $5.5 - $6.5 million deferred rent credit will be amortized into income over the remaining terms of the applicable real estate leases. The company emphasized that this restatement is not expected to impact its cash or liquidity or relate to revenue recognition in connection with theatre system or film revenue. Because of the error, management and the Audit Committee have cautioned that the company's prior-filed financial statements on Forms 10-K and 10-Q should not be relied upon until the financial statements are restated, which the company expects to occur within 35 days. In addition, the company's Forms 10-K/A and 10-Q/A will include certain additional and enhanced narrative disclosure in response to comments received by the company from the U.S. Securities and Exchange Commission. About IMAX Corporation Based in New York City and Toronto, Canada, IMAX Corporation (NASDAQ:IMAX) -- http://www.imax.com/-- is an entertainment technology company, with emphasis on film and digital imaging technologies including 3D, post-production and digital projection. IMAX is a fully-integrated, out-of-home entertainment enterprise with activities ranging from the design, leasing, marketing, maintenance, and operation of IMAX(R) theatre systems to film development, production, post-production and distribution of large-format films. IMAX also designs and manufactures cameras, projectors and consistently commits significant funding to ongoing research and development. IMAX has locations in Guatemala, India, Italy, among others. At June 30, 2007, the company's balance sheet showed total assets of $220.2 million and total liabilities of $284 million, resulting to a total shareholders' deficit of $63.8 million. The company recorded a net loss of $4.9 million for the first quarter of fiscal 2007, compared to a restated net loss of $3.7 million for the first quarter of fiscal 2006. Net loss for the fiscal year 2006 was $16.9 million, compared to a net income of $7.8 million for the fiscal year 2005. INTREPID TECHNOLOGY: Jones Simkins Raises Going Concern Doubt ------------------------------------------------------------- Logan, Utah-based Jones Simkins PC expressed substantial doubt about Intrepid Technology and Resources 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 noted that the company has incurred recurring losses, has negative working capital, and has negative cash flows from operations. The company reported a $1,626,817 net loss on $254,560 of net revenues for the year ended June 30, 2007, as compared with a $1,990,079 net loss on $447,300 of net revenue in the prior year. The company also posted an operating loss of $1,341,530 at June 30, 2007, compared with a $1,655,323 operating loss in the prior year. At June 30, 2007, the company's balance sheet showed $15,016,606 in total assets and $13,779,517 in total liabilities, resulting in $1,237,089 stockholders' equity. The company also reported $ 2,476,177 in total current assets and $2,487,446 in total current liabilities, resulting in $11,269 working capital deficit in its June 30, 2007, balance sheet. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?23cb About Intrepid Technology Headquartered in Idaho, Intrepid Technology and Resources Inc. (OTC BB: IESV.OB) -- http://www.intrepid21.com/-- specializes in development of biofuel production projects. JERUSALEM BAPTIST: Case Summary & 3 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Jerusalem Fundamental Baptist Church, Inc. 2800 Broadway Fort Myers, FL 33901 Bankruptcy Case No.: 07-09409 Type of business: The Debtor owns and runs a church. Chapter 11 Petition Date: October 8, 2007 Court: Middle District of Florida (Fort Myers) Debtor's Counsel: Stephen R. Leslie, Esq. Stichter, Riedel, Blain & Prosser, P.A. 110 East Madison Street, Suite 200 Tampa, FL 33602-4700 Tel: (813) 229-0144 Estimated Assets: $2,773,000 Estimated Debts: $1,372,700 Debtor's Three Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Duncan & Tardif $3,000 1601 Jackson Street Fort Myers, FL 33916 Direct Cooling $1,700 Second Haitian Baptist undetermined Church 2800 Broadway Fort Myers, FL 33901 KKR ATLANTIC: Nonpayment of Notes Cues Fitch to Cut Ratings ----------------------------------------------------------- Fitch Ratings downgraded the short-term rating of the secured liquidity notes issued by KKR Atlantic Funding Trust to 'D'. The downgrade reflects KKR Atlantic's nonpayment of the SLNs in accordance with the original terms of the SLNs. Beginning Aug. 20, 2007, parties to the program executed a series of standstill agreements. The standstill agreements waived the overcollateralization test, suspended the requirement for collateral liquidation, pushed back the expected maturity dates and the final maturity dates on all SLNs, and waived the obligations of KKR Financial and the affiliated depositor corporation under the repurchase agreements. Fitch views the existing standstill agreements and the proposed restructuring of the existing SLNs as a distressed debt exchange under its criteria. The rating withdrawal reflects the effective replacement of the existing notes with amended notes with differing terms. On Aug. 15, 2007, Fitch downgraded the SLN short-term ratings of KKR Atlantic to 'B' from 'F1+' and placed the ratings on Rating Watch Evolving. On Aug. 27, 2007, Fitch revised the rating watch to negative. Oct. 5, 2007 would have been the date KKR Atlantic's first SLN reached its final maturity date based on its original terms. The 'D' rating reflects the nonpayment of the SLNs based on the original terms. KKR has indicated that a program default, as defined in the documents, has been avoided through the standstill agreements and the potential restructuring. However, under its criteria, Fitch views the standstill and potential restructuring as a distressed debt exchange. Fitch's short-term ratings reflect the likelihood of full and timely repayment of an obligation in accordance with the original terms and does not incorporate the level of recovery prospects. KKR Atlantic is a special purpose, bankruptcy-remote Delaware limited liability company established to issue SLNs and use the proceeds to enter into repurchase agreements with KKR Financial Corporation or the affiliated depositor corporation. The repurchase agreements are collateralized by 'AAA' rated residential mortgage-backed securities. As of Oct. 1, 2007, KKR Atlantic had about $2.453 billion of outstanding principal balance of SLNs. The asset balance reported (used for the purpose of the OC test) was about $2.452 billion. KNOLL INC: Moody's Withdraws Ba3 Corporate Family Rating -------------------------------------------------------- Moody's withdrew the ratings of Knoll, Inc. for business reasons, because Knoll has no rated debt outstanding. This rating was withdrawn: -- Corporate family rating of Ba3 Knoll is a leading designer, manufacturer and distributor of a comprehensive portfolio of branded office furniture products, textiles and accessories. Revenue for the LTM ended June 2007 estimated $1 billion. LAKE TRAVIS: Files List of Four Largest Unsecured Creditors ----------------------------------------------------------- Lake Travis Development Group Ltd. filed with the U.S. Bankruptcy Court for the Western District of Texas a list of its four largest unsecured creditors. Entity Claim Amount ------ ------------ The Robin Family Limited $48,000 Partnership Secured value: 2206 London Ln. $1,215,000 Cedar Park, TX 78613 Dawn Brown $15,000 601 Wild Rose Trail Cedar Park, TX 78613 John Kuykendall $15,000 100 Lido Circle #C-1 Austin, TX 78734 Equity Secured Capital, LP $9,000 Secured value: $1,215,000 Lakeway, Texas-based Lake Travis Development Group, Ltd., filed for Chapter 11 bankruptcy protection on Aug. 14, 2007 (Bankr. W.D. Texas Case No. 07-11488). Gray Byron Jolink, Esq. represents the Debtor in its restructuring efforts. When the Debtor filed for bankruptcy, it listed assets between $500,000 to $1 million and debts between $1 million to $10 million. LEVIATHAN ENTERPRISES: Case Summary & 3 Largest Unsec. Creditors ---------------------------------------------------------------- Debtor: Leviathan Enterprises Group, Inc. 4703 Wild Horse Court Missouri City, TX 77459 Bankruptcy Case No.: 07-37000 Chapter 11 Petition Date: October 8, 2007 Court: Southern District of Texas (Houston) Debtor's Counsel: John L. Green, Esq. 4888 Loop Central Drive, Suite 445 Houston, TX 77081 Tel: (713) 660-7400 Fax: (713) 660-9921 Total Assets: $5,500,171 Total Debts: $3,400,000 Debtor's Three Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Joy of Running Ministries, loan $1,200,000 Inc. 4703 Wild Horse Court Missouri City, TX 77459 Alvie T. Merrill loan $250,000 124 Poinciana Lake Jackson, TX 77566 Joy Quality Builders loan $250,000 4703 Wild Horse Court Missouri City, TX 77459 LKQ CORP: Affirms $48/Share Offer to Buy Keystone Automotive ------------------------------------------------------------ LKQ Corporation affirmed its offer to purchase Keystone Automotive Industries Inc. for $48 per share in cash and stated that it would not raise the offer. In a Sept. 5 press statement, LKQ Corporation disclosed a public offering of 10,000,000 shares of its common stock. The common stock offered will consist of 8,500,000 shares to be issued and sold by LKQ and 1,500,000 shares to be sold by certain selling stockholders of LKQ. LKQ said that it will not receive any of the proceeds from the sale of shares by the selling stockholders. LKQ expects to grant the underwriters an option to purchase up to 1,500,000 additional shares of common stock solely to cover over-allotments, if any. LKQ's proceeds from the offering will be used to repay existing indebtedness and to fund a portion of the purchase price for the Keystone acquisition. The offering was made through an underwriting group led by Robert W. Baird & Co., Deutsche Bank Securities Inc., BB&T Capital Markets, and Raymond James. "We are making good progress toward the consummation of our acquisition of Keystone," Joseph M. Holsten, president and chief executive officer of LKQ, said. "Once the approval of Keystone's shareholders is received, we will be able to move quickly to close this significant transaction." The Keystone shareholder meeting is scheduled for Oct. 10, 2007. Assuming approval by the Keystone shareholders, the acquisition is scheduled to close Friday, Oct. 12, 2007. "The negotiations with Keystone leading up to execution of the merger agreement lasted more than four months," Mr. Holsten said. "During that time, Keystone's board pursued alternative buyers and convinced us to raise our price five times. The final price of $48 per share represents a 50% premium over the price at which Keystone traded immediately before our discussions began." "Keystone retained JPMorgan as its financial advisor throughout the process, Mr. Holsten said. "Prior to Keystone entering into the merger agreement, JPMorgan advised the Keystone board that $48 per share was fair, from a financial point of view, to Keystone shareholders." "The unique strategic fit of LKQ and Keystone allowed LKQ to offer a substantial premium to acquire Keystone that we believe no other buyer can match," Mr. Holsten stated. "The transaction has been public for over 75 days, and no other offers, nor any indications of interest, have materialized. We are not going to raise the price. Moreover, the terms of our credit commitment do not permit any increase to the purchase price." "LKQ completed an equity offering in which we raised approximately $350 million of net proceeds to help fund the Keystone acquisition," Mr. Holsten added. "While we would be disappointed if the Keystone shareholders ultimately decided to reject the merger, in the event that it is not approved, we intend to use the proceeds and the amount available under our existing credit facility to, among other things, expand our network of aftermarket facilities to complement our recycling operations." Copies of the prospectus supplement and related prospectus may be obtained from the offices of: Robert W. Baird & Co No. 777 East Wisconsin Avenue, 28th Floor Milwaukee, Wisconsin 53202-5391 or Deutsche Bank Securities Prospectus Department No. 100 Plaza One Jersey City, NJ 07311 About Keystone Automotive Industries Inc. Headquartered in Pomona, Califonia, Keystone Automotive Industries Inc. (NASDAQ:KEYS)-- http://www.keystone-auto.com/ -- is a distributor of aftermarket collision replacement parts produced by independent manufacturers for automobiles and light trucks. Keystone is distributing its products to collision repair shops through its 137 distribution facilities, of which 22 serve as regional hubs, located in 39 states and Canada. It also recycles and produces chrome plated and plastic bumper, and remanufactures alloy and steel wheels. The company's product lines consist of automotive body parts, bumpers and remanufactured alloy wheels, light truck accessories, well as paint and other materials used in repairing a damaged vehicle. As of March 30, 2007, Keystone offered more than 22,000 stock keeping units to over 25,000 collision repair shop customers. About LKQ Corporation Based in Chicago, Illinois, LKQ Corporation (NASDAQ:LKQX) -- http://www.lkqcorp.com/-- is a provider of recycled light vehicle original equipment manufacturer products and related services. The company is also a provider of aftermarket collision replacement products and refurbished wheels. LKQ Corporation operates over 100 facilities offering its customers a range of replacement systems, components and parts to repair light vehicles. It participates in the market for recycled OEM products, well as the market for collision repair aftermarket products. LKQ Corporation obtains aftermarket products and salvage vehicles from a variety of sources. * * * As reported in the Troubled Company Reporter on Sept. 28, 2007, Moody's Investors Service assigned these ratings to LKQ Corporation: (i) corporate family rating, Ba3; (ii) senior secured revolving credit, Ba3; (iii) senior secured term loan, Ba3; and (iv) speculative liquidity rating, SGL-2. Additionally, as reported Troubled Company Reporter on Oct. 1, 2007, Standard & Poor's Ratings Services assigned its 'BB-' corporate credit rating to LKQ Corp., which is acquiring the operations of unrated Keystone Automotive Industries Inc. for $811 million. The outlook is stable. The transaction should close in the fourth quarter of 2007. LYONDELL CHEMICAL: Board Declares Quarterly Dividend ---------------------------------------------------- Lyondell Chemical Company's Board of Directors declared a conditional quarterly dividend of $0.225 per share of common stock to stockholders of record as of the close of business at 5 p.m. EST on Nov. 26, 2007. On July 17, 2007, Basell and Lyondell entered into a definitive merger agreement that would result in each holder of Lyondell common stock receiving $48 per share in cash merger consideration and Lyondell becoming a wholly owned subsidiary of Basell. A special meeting of Lyondell shareholders has been called for Nov. 20, 2007, to vote on the merger proposal. While the closing date of the merger has yet to be determined, we are working toward a completion date in the fourth quarter of 2007, although there can be no assurance regarding the exact timing. The dividend will be payable on Dec. 17, 2007, only if the merger has not closed on or prior to the Record Date. If the closing of the merger occurs after the Record Date, the dividend will be paid on the Payment Date to persons who were holders of record on the Record Date, even if the closing were to occur before the Payment Date. If the merger closes on or prior to the Record Date, Lyondell shareholders will receive the merger consideration, but no dividend will be paid. Headquartered in Houston, Texas, Lyondell Chemical Company (NYSE: LYO) -- http://www.lyondell.com/-- is North America's third- largest independent, publicly traded chemical company. Lyondell manufacturers basic chemicals and derivatives including ethylene, propylene, titanium dioxide, styrene, polyethylene, propylene oxide and acetyls. It also refines heavy, high-sulfur crude oil and produces gasoline-blending components. It operates on five continents and employs approximately 11,000 people worldwide. The company also has locations in Austria, France, Italy, The Netherlands, Belgium, Germany, Spain, United Kingdom, Brazil, China, Japan, Taiwan, India and Singapore. * * * As reported in the Troubled Company Reporter on July 19, 2007, Moody's Investors Service placed the ratings of Lyondell Chemical Company, Equistar Chemical Company LP and Millennium Chemicals Inc. (Corporate Family Ratings of Ba3) under review for possible downgrade following the announcement that Lyondell agreed to be acquired by Basell AF SCA (Ba3 CFR under review for possible downgrade) in a transaction worth roughly $19 billion including the assumption of debt. MORTGAGE ASSET: Moody's Holds B+ Rating on Class 15-B-5 Notes ------------------------------------------------------------- Fitch Ratings affirmed these Mortgage Asset Securitization Transactions, Inc. mortgage pass-through certificates: Series 2002-8: -- Class A affirmed at 'AAA'; -- Class B-1 affirmed at 'AAA'; -- Class B-2 affirmed at 'AAA'; -- Class B-3 affirmed at 'AAA'; -- Class B-4 affirmed at 'AA-'; -- Class B-5 affirmed at 'BBB+' Series 2003-6, Pools 3 & 4: -- Class A affirmed at 'AAA'; -- Class 15-B-2 affirmed at 'AA-'; -- Class 15-B-5 affirmed at 'B+' The affirmations, affecting about $279 million of the outstanding certificates, reflect a stable relationship between credit enhancement and expected loss. The collateral of the above transactions consists primarily of 15- year and 30-year, fixed-rate, prime mortgage loans secured by first liens on one- to four-family residential properties. The loans were originated by various originators. Series 2002-8 has a pool factor (current mortgage loans outstanding as a percentage of the initial pool) of 10% and is seasoned 58 months. Series 2003-6 has a pool factor of 35% and is seasoned 51 months. MORTGAGE LENDERS: Countrywide Wants to Foreclose on 11 Properties ----------------------------------------------------------------- Aurora Loan Services, c/o Countrywide Home Loans Inc., asks the U.S. Bankruptcy Court for the District of Delaware, in separate requests, to terminate the automatic stay in Mortgage Lenders Network USA Inc.'s chapter 11 case, to exercise its rights against certain real properties located at: -- 27855 Ventura Drive, in Cathedral City, California 92234; -- 5384 E. Tulare Avenue, in Fresno, California 93727; -- 137 N. College Avenue, in Fresno, California 93701; -- 3620 South Barcelona Street #9, in Spring Valley, California 91977; -- 236 W. Wabash Avenue, in Eureka, California 95501; -- 1557 West Valencia Street, in Rialto, California 92376; -- 2255 West Avenue, in Santa Rosa, California 95407; -- 10368 Hite Circle, in Elk Grove, California 95757; -- 4715 Polk Avenue, in San Diego, California 92105; -- 5535 Don Octavio Court, in San Jose, California 95123; and -- 23197 Spring Meadow Drive, in Murrieta, California 90562. Adam Hiller, Esq., at Draper & Goldberg, PLLC, in Wilmington, Delaware, relates that Countrywide is the current holder of the Properties' mortgages and notes. He adds that review of the Properties' titles shows that the Debtor may hold a lien junior to the Mortgages. Mr. Hiller informs the Court that the obligors of the Properties are currently in default under the Notes, thus, Countrywide seeks to exercise its non-bankruptcy rights and remedies with respect to the Notes, including the enforcement of its rights against the Mortgages. Because the Debtor's Junior Mortgages are subordinate to Countrywide's Mortgages, the Debtor has no equity in the Properties, Mr. Hiller says. In addition, because the Junior Mortgages add little or no value to the bankruptcy estate, the Properties are not necessary for the Debtor's reorganization, Mr. Hiller tells the Court. Hence, Mr. Hiller contends, relief from the automatic stay is appropriate under Section 362(d)(2) of the Bankruptcy Code to permit Countrywide to exercise its rights and remedies with respect to the Mortgages. A continued stay of Countrywide's action against the Obligors and the Properties will cause significant prejudice to Countrywide, Mr. Hiller notes. Therefore, "cause" exists to terminate the automatic stay. Middletown, Conn.-based Mortgage Lenders Network USA Inc. -- http://www.mlnusa.com/-- is a privately held company offering a full range of Alt-A/Non-Conforming and Conforming loan products through its retail and wholesale channels. The company filed for chapter 11 protection on Feb. 5, 2007 (Bankr. D. Del. Case No. 07-10146). Pachulski Stang Ziehl Young Jones & Weintraub LLP represents the Debtor. Blank Rome LLP represents the Official Committee of Unsecured Creditors. In the Debtor's schedules of assets and liabilities filed with the Court, it disclosed total assets of $464,847,213 and total debts of $556,459,464. (Mortgage Lenders Bankruptcy News, Issue No. 18; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000). MORTGAGE LENDERS: Wants Until January 31 to File Chapter 11 Plan ---------------------------------------------------------------- Mortgage Lenders Network USA Inc. asks the U.S. Bankruptcy Court for the District of Delaware to extend its exclusive periods to: (a) file a plan of reorganization through January 31, 2008; and (b) solicit and obtain acceptances of that plan through April 2, 2008. Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, relates that subsequent to the Petition Date, the Debtor has directed substantially all of its efforts towards the liquidation of its hard assets and remaining servicing operations to maximize the value of the assets while minimizing the expenses associated with maintaining them. Ms. Jones says that the Debtor has incorporated the data retention and retrieval service previously provided by Fidelity National Information Services, Inc., into the Debtor's own information technology network allowing the rejection of the existing Fidelity contract and resulting in the savings of approximately $165,000 per month in administrative expenses to the bankruptcy estate. She adds that the Debtor has moved to a smaller facility during the wind-down of the estate permitting the rejection of the existing lease for the larger facility and resulting in savings of approximately $60,000 per month. The Debtor has also engaged in numerous contested matters and adversary proceedings to protect its rights as debtor-in- possession and to maximize the value of its estate for the benefit of its creditors, Ms. Jones tells the Court. Since the Petition Date, adversary litigations include: -- the defense of a complaint filed by Residential Funding Company, LLC, seeking the turnover of $9,100,000 in funds held by the estate in certain escrow accounts; -- the negotiation and settlement of several relief from stay requests related to loans that had been sold by the Debtor prepetition; -- the filing of a complaint against Wells Fargo Bank, National Association, to recover $2,274,265 in advances made by the Debtor prior to the transfer of servicing obligations and seeking to avoid any unrecorded ownership interests in certain properties to which the Debtor had legal title as of the Petition Date; -- the defense and settlement of an adversary proceeding commenced by L&R Title, Inc., a broker that alleged that the Debtor was withholding borrower payments on a loan that was unfunded as of the Petition Date; and -- the defeat of a relief from stay request from St. Paul Fire and Marine Insurance Company, and St. Paul Mercury Insurance Company through which the insurers sought to cancel the financial bond and computer crime policy held by the Debtor. Ms. Jones also discloses that the Debtor is currently engaged in comprehensive settlement discussions with its largest secured creditor, RFC, and the Official Committee of Unsecured Creditors to resolve numerous issues in the bankruptcy case without the need for protracted litigation. Ms. Jones asserts that "cause" exists in the Debtor's case for extending the Exclusive Periods because the case has involved wind-down and liquidation of assets of a company engaged in complex financial transactions. She notes that since Petition Date, the Debtor has sold more than $400,000,000 worth of mortgage loans and transferred over $12,000,000,000 of mortgage servicing assets and liquidated the vast majority of its other hard assets. The brief extensions of the Exclusive Periods sought in the request will not harm or prejudice the Debtor's creditors or other parties-in-interest, Ms. Jones argues. The Debtor believes that Section 1121 will afford a debtor with a meaningful and reasonable opportunity to negotiate with creditors and to propose and confirm a consensual plan. The Debtor is not seeking the extensions to delay administration of its case or to pressure creditors to accept unsatisfactory plans of reorganization, Ms. Jones points out. On the contrary, she adds, the request is intended to facilitate an orderly, efficient, and cost-effective plan process for the benefit of all creditors. Judge Walsh will convene a hearing on October 24, at 4:00 p.m., Eastern Time, to consider the Debtor's request. Pursuant to Del.Bankr.LR 9006-2, the Debtor's Exclusive Periods is automatically extended until the conclusion of that hearing. Middletown, Conn.-based Mortgage Lenders Network USA Inc. -- http://www.mlnusa.com/-- is a privately held company offering a full range of Alt-A/Non-Conforming and Conforming loan products through its retail and wholesale channels. The company filed for chapter 11 protection on Feb. 5, 2007 (Bankr. D. Del. Case No. 07-10146). Pachulski Stang Ziehl Young Jones & Weintraub LLP represents the Debtor. Blank Rome LLP represents the Official Committee of Unsecured Creditors. In the Debtor's schedules of assets and liabilities filed with the Court, it disclosed total assets of $464,847,213 and total debts of $556,459,464. (Mortgage Lenders Bankruptcy News, Issue No. 18; Bankruptcy Creditors' Service Inc. http://bankrupt.com/newsstand/or 215/945-7000). NATIONAL EASTERN: Section 341(a) Meeting Scheduled on Oct. 22 ------------------------------------------------------------- The U.S. Trustee for Region 2 scheduled a meeting for National Eastern Corp.'s creditors on Oct. 22, 2007, 10:00 a.m., at the Bankruptcy Meeting Room, One Century Tower, 265 Church Street, Suite 1104 in New Haven, Connecticut. This is the first meeting of creditors pursuant to Section 341(a)of the Bankruptcy Code. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Headquartered in Plainville, Connecticut, National Eastern Corp. fabricates steel. The Debtor filed for Chapter 11 protection on Sept. 17, 2007, (Bankr. D. CT. Case No. 07-21290). Anthony S. Novak, Esq. of the Chorches & Novak PC represents the Debtor in its restructuring efforts. When the company filed for bankruptcy, it listed total assets of $20,786,808 and total debts of $15,398,616. NEFF CORP: Posts $45.1 Million Net Loss in Quarter Ended June 30 ---------------------------------------------------------------- Neff Corp. reported a net loss of $45.1 million on total revenues of $80.4 million for the second quarter ended June 30, 2007, compared with net income of $8.4 million on total revenues of $83.8 million for the same period last year. Rental revenues for the three months ended June 30, 2007, decreased to $69.0 million from $70.6 million for the three months ended June 30, 2006. Equipment sales revenue for the three months ended June 30, 2007, decreased to $7.7 million from $9.4 million for the three months ended June 30, 2006. Revenues from the sales of parts and service for the three months ended June 30, 2007, decreased to $3.6 million from $3.8 million for the three months ended June 30, 2006. Gross profit for the three months ended June 30, 2007, decreased to $37.4 million or 46.6% of total revenues from $41.3 million or 49.3% of total revenues for the three months ended June 30, 2006. The decrease in gross profit was primarily due to a decrease in rental revenue gross profit of $3.0 million. Income from operations for the three months ended June 30, 2007, decreased to $3.4 million from $21.5 million for the three months ended June 30, 2006, primarily as a result of the aforementioned reduction in gross profit, a $3.7 million increase in stock-based compensation expense, and $7.3 million in transaction-related operating costs. Interest expense for the three months ended June 30, 2007, increased to $14.1 million from $12.6 million for the three months ended June 30, 2006. The increase was primarily due to increased borrowings incurred as a result of the definitive merger agreement under which affiliates of Lightyear Capital LLC, a private equity firm, and certain other investors agreed to acquire all of the outstanding shares of the Neff Corp. The transaction closed on May 31, 2007. Transaction-related financing costs were $57.8 million for the three months ended June 30, 2007. There were no transaction- related financing costs recorded in 2006. Amortization of debt issue costs for the three months ended June 30, 2007, increased to $1.9 million from $485,000 for the three months ended June 30, 2006. At June 30, 2007, the company's consolidated balance sheet showed $1.01 billion in total asssets, $816.5 million in total liabilities, and $198.2 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?2422 Liquidity and Capital Resources During the six months ended June 30, 2007, operating activities provided net cash flow of $55.7 million as compared to $39.9 million for the six months ended June 30, 2006. The increase is attributable primarily to increases in working capital. Cash used in investing activities was $425.5 million for the combined six months ended June 30, 2007, as compared to $101.6 million for the six months ended June 30, 2006. Net cash provided by financing activities was $371.2 million for the six months ended June 30, 2007, compared to $61.8 million for the six months ended June 30, 2006. The increase in cash from financing activities was primarily related to the debt financing incurred as a result of the merger. On May 31, 2007, the company issued $230.0 million in aggregate principal amount of the 10% Senior Notes due 2015. The 10% Notes are unsecured senior indebtedness and are guaranteed by the company's domestic subsidiaries that also guarantee borrowings under the Senior Secured Credit Facilities. As of June 30, 2007, borrowings under the Second Lien Facility totaled $290.0 million and borrowings under Credit Facility totaled $211.0 million, leaving an $123.2 million available for additional borrowings. About Neff Corporation Headquartered in Miami, Neff Corp. -- http://www.neffrental.com/ -- is an equipment rental company in the United States. Through its 66 branches located primarily in the Sunbelt states, the company rents a broad variety of construction and industrial equipment, including earthmoving, material handling, aerial, compaction and related equipment. The company derives its revenue from equipment rentals, selling new and used equipment, parts and supplies, and from related maintenance. * * * Moody's Investors Service rates Neff Corporation's corporate family rating at 'B3'. The outlook is stable. Neff Corporation also carries Standard & Poor's Ratings Services' 'B+' corporate credit rating. NETBANK INC: FDIC Sets Jan. 2 as Bar Date to File Proofs of Claim ----------------------------------------------------------------- Federal Deposit Insurance Coproration, the receiver for NetBank Inc.'s assets, has set Jan. 2, 2008 as the deadline for all NetBank's creditors to submit their proofs of claim against the Debtor. All proofs of claim must be sent to: FDIC as Receiver of NetBank Attn: Jeff Quick 1910 Pacific Avenue Dallas, TX 75201 In addition, FDIC has arranged for the transfer of the insured deposits from the Debtor to another insured depository institution, ING Bank. Insured deposit holders may leave their deposits in the new institution, but must take action to claim ownership of their respective deposits. FDIC says this arrangement should minimize the inconvenience of the insured deposit holder as a result of the Debtor's closing. Deposit holders should claim their deposits at ING Bank on or before March 28, 2009. Funds will be transferred back to FDIC if the deposits are not claimed. About NetBank 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. NEWCOMM WIRELESS: Court Confirms Chapter 11 Liquidation Plan ------------------------------------------------------------ The United States Bankruptcy Court for the District of Puerto Rico confirmed Newcomm Wireless Services Inc.'s Chapter 11 Plan of Liquidation. As reported in the Troubled Company Reporter on Sept. 6, 2007, the Plan provides for the orderly distribution of the proceeds from the sale of its assets to PRWireless Inc. for $158,636,874. Newcomm received proofs of claim totaling $250 million. A fundamental component of the Plan is the Telefonica Settlement Agreement, which resolves several inter-related complex litigations. Each group of claimants will receive distribution under the plan. Treatment of Claims and Interests Under the Debtor's plan, $1.7 million of allowed administrative and $1 million of priority claims will be paid in full. Tax claims will be satisfied in accordance with Section 507(a)(8) of the Bankruptcy Code. Secured claims amounting to $100,000 will be unimpaired, meaning, holders will be paid in full. General unsecured creditors, holding an aggregate $10 million in claims, will receive cash in satisfaction of whatever part of their claims will be deemed "allowed." The Debtor's equity holders will receive a share on the sale proceeds up to $17.5 million in accordance with the terms of the Telefonica Settlement Agreement. Telefonica Settlement Agreement On May 7, the Debtor reached a compromise with the Telefonica Group in full settlement of its claims against Newcomm. As part of the compromise and settlement, pursuant to the terms of the Plan and subject to the occurrence of the Effective Date: i) all claims filed by the Telefonica Group in the Chapter 11 case will be voluntarily subordinated to the Allowed Claims of the Debtor's other unsecured creditors; ii) the unsecured claim filed by ClearComm will be disallowed for all purposes; iii) the Equity Group Equity Interests will share in $17,500,000 after payment of: a) Allowed Secured Claims b) Allowed Claims of Holders of Administrative Claims; c) Allowed Priority Tax Claims; d) Allowed Priority Non-Tax Claims; e) Allowed Non-DIP Facility Secured Claims; and f) all Allowed General Unsecured Claims (with the exception of the claims filed by the Telefonica Group and ClearComm); and iv) the balance of the Residual Amount -- estimated at $12,500,000 -- will be distributed to the Holders of the Telefonica Group Equity Interests in full satisfaction of all Claims voluntarily subordinated as well as all Interests held by any member of the Telefonica Group. Based in Guaynabo, Puerto Rico, NewComm Wireless Services Inc. is a PCS company that provides wireless service to the Puerto Rico market. The company is a joint venture between ClearComm, L.P. and Telefonica Larga Distancia. The company filed for chapter 11 protection on Nov. 28, 2006 (Bankr. D. P.R. Case No. 06-04755). Carmen D. Conde Torres, Esq., at C. Conde & Assoc. and Peter D. Wolfston, Esq., at Sonnenschein Nath & Rosenthal LLP represent the Debtor in its restructuring efforts. Mark J. Wolfson, Esq. at Foley & Lardner LLP and Sergio A. Ramirez de Arellano, Esq., at Sergio Ramirez de Arrelano Law Office represent the Official Committee of Unsecured Creditors. In its schedules, the Debtor disclosed total assets of $111,652,190 and total debts of $190,695,559. NEW CENTURY: Court Okays Inclusion of NCWC in Richards Retention ---------------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware has approved the request of New Century Financial Corp. and its debtor-affiliates to expand the scope of Richards Layton & Finger P.A. retention, to include New Century Warehouse Corporation, a wholly owned subsidiary of New Century Financial Corp., nunc pro tunc to Aug. 3, 2007. As reported in the Troubled Company Reporter on May 1, 2007, the Court approved the employment of Richard Layton as Debtors' local counsel for Delaware, nunc pro tunc to April 2, 2007. Richards Layton will be compensated in accordance with the procedures in Section 330 and 331 of the Bankruptcy Code. The prepetition retainer paid by NCWC, and not expended for services and disbursements will be added to the evergreen retainer, under the Richards Layton Retention Order, as a security through the Debtors' chapter 11 cases, until its fees and expenses are awarded on a final basis. Founded in 1995, Irvine, Calif.-based New Century Financial Corporation (NYSE: NEW) -- http://www.ncen.com/-- is a real estate investment trust, providing mortgage products to borrowers nationwide through its operating subsidiaries, New Century Mortgage Corporation and Home123 Corporation. The company offers a broad range of mortgage products designed to meet the needs of all borrowers. The company and its debtor-affiliates filed for Chapter 11 protection on April 2, 2007 (Bankr. D. Del. Lead Case No. 07-10416). Suzzanne Uhland, Esq., Austin K. Barron, Esq., and Ana Acevedo, Esq., at O'Melveny & Myers LLP, and Mark D. Collins, Esq., Michael J. Merchant, Esq., and Jason M. Madron, Esq., at Richards, Layton & Finger, P.A., represent the Debtors. The Official Committee of Unsecured Creditors selected Hahn & Hessen as its bankruptcy counsel and Blank Rome LLP as its co-counsel. When the Debtors filed for bankruptcy, they listed total assets of $36,276,815 and total debts of $102,503,950. The Debtors' exclusive period to file a plan expires on Nov. 28, 2007. (New Century Bankruptcy News, Issue No. 23; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). NRG ENERGY: Earns $149 Million in Second Quarter Ended June 30 -------------------------------------------------------------- NRG Energy Inc. reported net income for the three months ended June 30, 2007, of $149 million, as compared to net income of $203 million for the same period last year. These results include a $35 million non-cash, pre-tax charge related to the completion of the $4.4 billion refinancing of the company's Senior Credit Facility in conjunction with the company's Comprehensive Capital Allocation Plan, while the 2006 period benefited from $15 million in pre-tax settlement agreements. Quarterly operating income improved to $436 million from $410 million in 2006. Second quarter 2007 results included $36 million in net development costs for the RepoweringNRG program. Operating income for the three months ended June 30, 2007, were favorably impacted by increased gas generation and pricing in the Northeast region. Net income from continuing operations for the first half of this year was $214 million, compared to $217 million for the same period last year. Operating income for the first six months of 2007 improved to $709 million from $619 million in 2006. First half results were favorably impacted by the inclusion of an additional month for NRG Texas as this business was acquired on Feb. 2, 2006, and higher generation and pricing in the Northeast region. Cash flow from operations for the first six months of 2007 was $459 million, after the posting of $103 million of net collateral outflows, versus adjusted cash flow from operations of $604 million, including the benefit of $272 million of net collateral inflows, during the same period last year. "Through RepoweringNRG and FORNRG we have our business well positioned for the future, while the strong execution of our commercial and plant operations has put us in a position to exceed the financial goals we had announced at the beginning of the year," commented David Crane, NRG president and chief executive officer. "The quarter also marked the timely completion of construction at Long Beach, our first repowering, and demonstrates how quickly and capably we can act upon a type of project which will become increasingly prevalent as reserve margins tighten in all of our core markets." Balance Sheet At June 30, 2007, the company's consolidated balance sheet showed $18.94 billion in total assets, $13.36 billion in total liabilities, $1 million in minority interest, $247 million in 3.625% redeemable perpetual preferred stock, and $5.33 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?2424 Liquidity and Capital Resources Liquidity at June 30, 2007, was approximately $1.85 billion, down $373 million since Dec. 31, 2006, and $123 million since June 30, 2006. The reduction in current liquidity is mainly due to the $200 million reduction in synthetic letter of credit capacity as part of the recent restructuring of the first lien credit facility. Outlook The company is raising 2007 adjusted EBITDA guidance to $2.20 billion from $2.15 billion and cash flow from operations to $1.42 billion from $1.40 billion to reflect its strong first half performance, its fully hedged baseload position for the balance of the year and the expected reduction in second half operating expenses. About NRG Energy Hearquartered in Princeton, New Jersey, NRG Energy Inc. (NYSE: NRG) -- http://www.nrgenergy.com/-- owns and operates a diverse portfolio of power-generating facilities, primarily in Texas and the Northeast, South Central and West regions of the U.S. Its operations include baseload, intermediate, peaking, and cogeneration and thermal energy production facilities. NRG also has ownership interests in generating facilities in Australia, Germany and Brazil. * * * Standard & Poor's Ratings Services rates NRG Energy Inc.'s $4.7 billion unsecured bonds at 'B'. In addition, Standard & Poor's rates NRG Energy Inc.'s corporate credit rating at 'B+'. The outlook is stable. PATCH INTERNATIONAL: KPMG LLP Raises Going Concern Doubt -------------------------------------------------------- Calgary, Canada-based KPMG LLP expressed substantial doubt about Patch International Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended May 31, 2007. The auditing firm stated that the company has suffered recurring losses from operations and has a net capital deficiency. The company reported a $18,622,212 net loss on $15,581 of revenues for the year ended May 31, 2007, as compared with a $2,687,112 net income on $43,668 of revenues in the prior year. At May 31, 2007, the company's balance sheet showed $46,621,844 in total assets and $53,328,701 in total liabilities, resulting in a $6,706,857 stockholders' deficit. The company has a $7.7 million flow-through share commitment, which if not met by January 2009, will require the company to reimburse the subscribers for any tax payable as a result of its failure to meet its flow-through share commitment. The company currently anticipates spending its existing funds in the current fiscal year to maintain operations and additional funding will be required to meet the flow-through share commitment and for expenditures connected with the acquisition, exploration and appraisal of new and existing oil and gas projects. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?23cd About Patch International Patch International -- http://www.patchenergy.com/-- is a junior oil and gas producer that currently earns oil revenue from 19 oil wells. These wells provide the company with both short-term and long-term cash flow. It is anticipated that these wells will have a life of over 15 years. PTII has properties in North America, and is exploring opportunities in North Africa, South America, and Ukraine. Praxis Pharmaceuticals Inc. acquired Patch International through a stock-for-stock transaction on March 15, 2004. As a result of the acquisition, the Company is a wholly owned subsidiary of Praxis. PETROQUEST ENERGY: Gets $70.7MM in 6.875% Pref. Stock Offering -------------------------------------------------------------- PetroQuest Energy Inc. disclosed the sale of an additional 195,000 shares of its 6.875% Series B cumulative convertible perpetual preferred stock at a price of $50 per share pursuant to the over- allotment option granted to the underwriters in connection with the public offering of 1,300,000 shares of 6.875% Series B cumulative convertible perpetual preferred stock. PetroQuest has received in the aggregate approximately $70.7 million of proceeds from the offering, net of underwriting discounts and expenses. J.P. Morgan Securities Inc. acted as sole book-running manager and Howard Weil Incorporated, Johnson Rice & Company L.L.C. and Coker & Palmer, Inc. acted as co-managers for the offering. PetroQuest intends to use the net proceeds from the offering to repay its borrowings outstanding under its bank credit facility and for other general corporate purposes. PetroQuest intends to continue to borrow under the credit facility to fund its 2007 capital expenditures, including the acceleration of its drilling and leasing activities in its longer lived areas in Arkansas, Oklahoma and East Texas. Copies of the prospectus supplement and the accompanying prospectus may be obtained from: J.P. Morgan Securities Inc. No. 4 Chase Metrotech Center, CS Level, Brooklyn, New York 11245. About PetroQuest Energy Inc. Headquartered in Lafayette, Louisiana, PetroQuest Energy Inc. (Public, NYSE:PQ) -- http://www.petroquest.com/-- is an independent oil and gas company. The company is engaged in the exploration, development, acquisition and operation of oil and gas properties in Texas, Oklahoma, well as onshore and in the shallow waters offshore the Gulf Coast Basin. As of Dec. 31, 2006, the company owned working interests in 16 gross (10 net) producing oil wells and 571 gross (217 net) producing gas wells. PetroQuest sells its natural gas and oil production under fixed or floating market contracts. * * * In September 2006, Moody's Investor Services placed PetroQuest Energy Inc.'s long term corporate family and probability of default ratings at 'Caa1', which still hold to date. In addition, the company continues to carry Moody's 'Caa2' rating on its senior unsecured debt. PIER 1: Zero Debt Cues Moody's to Withdraw Rating ------------------------------------------------- Moody's withdrew the ratings of Pier 1 for business reasons, because Pier 1 has no rated debt outstanding. This rating was withdrawn: -- Corporate family rating of Caa1 Pier 1 is a specialty retailer, headquartered in Fort Worth, Texas, which operates principally through its Pier 1 Imports stores. Sales for the LTM ended June 2007, estimated $1.6 billion. PRIMA CAPITAL: Moody's Holds Low-B Ratings on Two Cert. Classes --------------------------------------------------------------- Moody's Investors Service upgraded the ratings of two classes and affirmed the ratings of seven classes of Prima Capital CDO 2005-1 Ltd., Collateralized Debt Obligations, Series 2005-1 as: -- Class A-1, $12,008,012, affirmed at Aaa -- Class A-2, $177,152,000, affirmed at Aaa -- Class B, $13,305,000, upgraded to Aaa from Aa1 -- Class C, $12,281,000, upgraded to Aa2 from Aa3 -- Class D, $12,896,000, affirmed at A3 -- Class E, $24,563,000, affirmed at Baa2 -- Class F, $8,597,000, affirmed at Baa3 -- Class G, $12,281,000, affirmed at Ba2 -- Class H, $9,211,000, affirmed at B2 As of the Sept. 19, 2007 distribution date, the transaction's aggregate bond balance has decreased by about 28.4% to $282.3 million from $394.3 million at securitization. The certificates are collateralized by 33 fixed rate classes of CMBS securities from nine transactions (44.5%), eight whole loans (18.2%), two B Notes (11.9%) and two mezzanine loans (25.4%). One whole loan (475 School Street; 3.7% of the pool) and a mezzanine loan (885 Third Avenue; 11.8%) have defeased and are collateralized by U.S. Government securities. Moody's reviewed the ratings or shadow ratings of all the collateral supporting the certificates. Moody's is upgrading Classes B and C due to increased credit support from principal amortization and payoffs and improved overall pool performance since Moody's last full review in April 2006. There have been no losses in the underlying collateral since securitization. Moody's has upgraded five CMBS classes from four transactions since last review. Moody's has also upgraded the shadow ratings for three CMBS classes, six whole loans and one mezzanine loan since last review. No ratings or shadow ratings have been downgraded. Moody's uses a weighted average rating factor as an overall indicator of the credit quality of a CDO transaction. Based on Moody's analysis, the WARF is 2,031 compared to 2,870 at securitization. The distribution of ratings (actual and shadow ratings) is: Aaa -- Aa3 (34.8% compared to 19.4% at last review), A1-A3 (9.6% compared to 13.5%), Baa1-Baa3 (5.1% compared to 8.7%); Ba1-Ba3 (20.4% compared to 9.7%); B1-B3 (2.5% compared to 10.7%) and Caa1-NR (27.6% compared to 39.1%). The CMBS certificates are from pools securitized between 1997 and 2002. The largest vintage exposures are 1999 (31.1%), 2002 (28.6%), 1998 (21.5%) and 1997 (17.3%). The largest CMBS exposures are CAMC 2002-CAM2 (12.7%) and MSC 1999-CAM1 (10.1%). PROPEX INC: High Leverage Cues Moody's to Cut Ratings ----------------------------------------------------- Moody's Investors Service downgraded the Corporate Family Rating of Propex Inc.'s to Caa1 from B2, reflecting very high leverage in recent quarters and expectations of very weak internal cash flow generation in relation to debt obligations in the near term. The outlook for the ratings, which had been negative since January 2007, is stable. Moody's took thee rating actions: -- Downgraded the Corporate Family Rating to Caa1 from B2; -- Downgraded the Probability of Default Rating to Caa1 from B2; -- Downgraded to B2 (LGD2, 29%) from Ba3 (LGD 3, 30%) the senior secured credit facilities consisting of a $50 million revolver due 2011, and the original $260 million term loan due 2012; -- Downgraded to Caa2 (LGD 5, 81%) from Caa1 (LGD 5, 82%) the $150 million senior unsecured notes due 2012; The ratings outlook is stable. The stable outlook reflects the high likelihood of a continuing core level of demand for the company's products, company's leading position in its markets, indications of progress with cost cutting efforts and the company's relatively low capital expenditure requirements in the medium term. The downgrade reflects Moody's expectation of weak interest coverage at least through 2008 (defined as EBITDA less capital expenditures divided by interest expense) in line with the Caa1 rating category and long-term structural industry trends which include overcapacity and competitive pressures. The ratings also take into account the long-term effects of the backward integration into carpet backing by the larger carpet manufacturers that took place in 2005 and 2006. These longer term threats are exacerbated by cyclical but ongoing weakness in residential construction and its effect on demand for carpet backing and other end products, potential for adverse raw material fluctuations and the need for error-free execution to navigate this period. Propex's ratings are supported by leadership positions in its principal markets and aggressive moves to cut costs. Notwithstanding the company's likely non-compliance with financial covenants as of Sept. 30, 2007, Moody's believes that covenant relief will be provided by the lender group at levels which recognize current cyclical weakness in the company's principal end markets and the temporary nature of some of the expense drivers. Failure to obtain such relief will result in an immediate downgrade. The Speculative Grade Liquidity Rating was also downgraded to SGL- 4 from SGL-2, subject to covenant relief. Propex Inc., based in Chattanooga, Tennessee is the world's largest independent producer of primary and secondary carpet backing and a leading manufacturer and marketer of woven and nonwoven polypropylene fabrics and fibers used in geosynthetic applications and a variety of other industrial applications such as fabric bags/containers, fabric protective coverings and concrete fiber reinforcement. Revenues for the twelve months ended July 1, 2007 were $685 million. PROPEX INC: S&P Places 'B-' Rating Under Negative CreditWatch ------------------------------------------------------------- Standard & Poor's Services placed its 'B-' corporate credit and its senior secured and senior unsecured ratings on Chattanooga, Tennessee-based Propex Inc. on CreditWatch with negative implications. "The CreditWatch listing reflects ongoing concerns that difficult operating conditions are likely to forestall Propex's ability to meaningfully improve its highly leveraged financial profile," said Standard & Poor's credit analyst Henry Fukuchi. Recent operating challenges at a key production facility, weak residential construction activity and the possibility for further declines in the domestic housing markets could cause earnings and cash flow to deteriorate to a level inconsistent with the current ratings. In addition, Propex announced that it is unlikely to be in compliance with the financial covenants contained within its credit agreement as of the reporting date for its Sept. 30, 2007, quarter end. While Propex's liquidity position is bolstered by decent cash balances and credit facility availability, the probably of a covenant violation is a concern. "We expect that Propex will take steps to negotiate relief so that it will preserve acceptable liquidity while it implements plans to restore operating results to acceptable levels," Mr. Fukuchi said. "We will resolve the CreditWatch upon indication that the risk of covenant violations has been addressed and after reviewing the company's prospects for improving its subpar financial profile. Further indication that weak operating results will extend into 2008 or failure to obtain covenant relief could result in a downgrade this year." Propex is a leading producer of polypropylene fabrics and fibers used in primary and secondary carpet backing, among other things. QUALITY HOME: U.S Trustee Appoints Three-Member Creditors Panel --------------------------------------------------------------- The U.S. Trustee for Region 16 appointed three creditors to the Official Committee of Unsecured Creditors in the Chapter 11 cases of Quality Home Loans and its debtor-affiliates. The Committee members are: 1. First California Bank 300 East Esplanade Drive, Suite 102 Oxnard, CA 93036 Attn: Richard R. Glass Tel: (805) 485-6682 2. Clear Capital.com 6030 Orchard Avenue Richmond, CA 94804 Attn: Cy Epstein Tel: (510) 684-5400 3. CountryWide Home Loans, Inc. 4500 Park Granada Calabasas, CA 91302 Attn: David Sobul Tel: (818) 225-3132 Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' 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 Agoura Hills, California, Quality Home Loans -- http://www.qualityhomeloans.com-- is engaged in the business of loan origination and servicing operations, and also acquires and sells mortgages, services mortgages, and manages trust deed investments for investors. The company also provides an alternative source of financing available for borrowers who fails to meet traditional underwriting criteris due to reasons such as prior credit difficulty, above-average debt load, low FICO score, the inability to fully document income, a past foreclosure, or the need to finance non-conforming property. The company and three of its affiliates filed for chapter 11 protection on Aug. 21, 2007 (Bankr. C.D. Calif. Case No. 07-13006). Mike D. Neue, Esq., at Irell & Manella, L.L.P., represent the Debtors. When the Debtors filed for protection from their creditors, they lsited estimated assets between $1 million and $100 million and debts of more than $100 million. QUALITY HOME: Wants Court Approval on Countrywide Settlement Pact ----------------------------------------------------------------- Quality Home Loans asks the U.S. Bankruptcy Court for the Central District of California to approve a settlement agreement entered by the Debtor with Countrywide Home Loans Inc. and Countrywide Securities Corporation. The Debtor tells the Court that periodically, after a certain number of loans had been originated, it either sells a pool of whole loans to the highest bidder or use Countrywide Loans to securitize a pool of loans using a real estate mortgage investment conduit. Stay Relief Motion The Debtor relates that on Sept. 12, 2007, Countrywide Loans and Countrywide Securities asked the Court for relief from automatic stay stating: a. prior to the Debtors' bankruptcy filing, Countrywide Loans purchased loans from the Quality Home on a servicing- released basis although the Debtor agreed to perform, on an interim basis, the servicing of the Mortgage Loans; b. although Countrywide Loans agreed to use its commercially reasonable best efforts to securitize certain of the Mortgage Loans in a mortgage-backed securities offering, Countrywide Loans informed the Debtor that it had terminated its obligation to complete the Countrywide Securitization and informed the Debtor that Countrywide Loans would proceed to sell the Countrywide Whole Loans in the whole loan market; and c. On July 31, 2007, Countrywide Securities completed a mortgage-backed securities offering, Deal Name CWABS Asset- Backed Certificates Trust 2007-QX1, Asset-Backed Certificates, Series 2007-QX1, which are comprised of Mortgage Loans previously purchased by Countrywide Loans from the Debtor. Approximately $22,003,000 of the Securities remain to be sold. As reported in the Troubled Company Reporter on Aug. 9, 2007, Moody's Investors Service assigned an Aaa rating to the senior certificates issued by CWABS Asset-Backed Certificates Trust 2007- QX1 and ratings ranging from Aa1 to Ba2 to the subordinate certificates in the deal. Moody's expects collateral losses to range from 7.50% to 8%. Thus, Countrywide asked for relief from automatic stay to permit Countrywide to: (1) complete an immediate transfer of the servicing for the Mortgage Loans from the Debtor to Countrywide Loans, (2) market and sell the Countrywide Whole Loans, and (3) market and sell the remaining QX1 Securities. A final hearing on Countrywide's request has been set for Oct. 19, 2007. Settlement Agreement The Debtor and Countrywide entered into a Settlement Agreement dated Sept. 25, 2007, pursuant to which: * Countrywide Whole Loans (a) Countrywide is recognized to be the owner of the Countrywide Whole Loans; (b) Countrywide grants the Debtor an option to repurchase the Countrywide Whole Loans from Countrywide through Oct. 26, 2007, and agrees not to sell the Countrywide Whole Loans during the option period absent the approval of the Debtor; (c) If the Debtor, on behalf of its debtor-affiliates, exercises the option to repurchase the Countrywide Whole Loans: -- the Debtor, on behalf of its debtor-affiliates, will then be the owner of the Countrywide Whole Loans, -- Countrywide will give the Debtor a $72,923.50 credit against the purchase price, and -- Countrywide will have a lien on the net proceeds or future appreciation of the Countrywide Whole Loans to secure payment of the prepetition Trust Deficiency Amount; (d) if the Debtor does not exercise the option to repurchase the Countrywide Whole Loans: -- Countrywide will be granted immediate relief from the automatic stay to take any and all actions with respect to the Countrywide Whole Loans, including selling the Countrywide Whole Loans, and -- the Debtor will take all steps necessary to transfer the servicing for the Countrywide Whole Loans to Countrywide * QX1 Laons and QX1 Securities (a) The Debtor will complete the transfer of the servicing for all of the QX1 Loans to Countrywide by Sept. 28, 2007; (b) Countrywide can sell the remaining QX1 Securities to any party, but any sale to the Debtor will be at Countrywide's "take-down" price; (c) Countrywide will pay the Debtor any net sale proceeds for the remaining QX1 Securities otherwise payable to the Debtor, provided, however, that Countrywide can set off the prepetition Trust Deficiency Amount against any such net sale proceeds; (d) Countrywide will remit to the Debtor any distribution received by Countrywide in connection with the Countrywide Net Interest margin Fixed Rate Notes, Series 2007-QX1N; and (e) the Debtor will ratify all prior sales of the QX1 Securities. * Trust Funds (a) The Debtor will prepare a reconciliation of all mortgage loans trust funds received by the Debtor in connection with the QX1 Loans and any other Mortgage Loans serviced by the Debtor and will remit the Trust Funds to Countrywide in two installments, (b) Countrywide will have a claim for any deficiency between the amount of Trust Funds remitted to Countrywide and the actual amount of Trust Funds that should have been deposited on a prepetition basis into trust accounts for Countrywide's benefit, which Countrywide can pursue in accordance with the Agreement, and (c) Countrywide will also have a superpriority administrative lien claim for any deficiency in the Trust Funds resulting from the Debtor's postpetition use of the Trust Funds. About Quality Home Headquartered in Agoura Hills, California, Quality Home Loans -- http://www.qualityhomeloans.com-- is engaged in the business of loan origination and servicing operations, and also acquires and sells mortgages, services mortgages, and manages trust deed investments for investors. The company also provides an alternative source of financing available for borrowers who fails to meet traditional underwriting criteris due to reasons such as prior credit difficulty, above-average debt load, low FICO score, the inability to fully document income, a past foreclosure, or the need to finance non-conforming property. The company and three of its affiliates filed for chapter 11 protection on Aug. 21, 2007 (Bankr. C.D. Calif. Case No. 07-13006). Mike D. Neue, Esq., at Irell & Manella, L.L.P., represent the Debtors. When the Debtors filed for protection from their creditors, they lsited estimated assets between $1 million and $100 million and debts of more than $100 million. REMY WORLDWIDE: Files Pre-Packaged Bankruptcy in Delaware --------------------------------------------------------- Remy Worldwide Holdings Inc. on Monday said that in response to the overwhelming support received for its previously announced prepackaged plan of reorganization from holders of its 8-5/8% Senior Notes, 9-3/8% Senior Subordinated Notes and 11% Senior Subordinated Notes, the company has elected to commence voluntary proceedings for itself and its domestic subsidiaries under chapter 11 of the U.S. Bankruptcy Code to seek confirmation of the plan. The company filed its voluntary chapter 11 petitions and plan of reorganization in the U.S. Bankruptcy Court for the District of Delaware in Wilmington. Specifically, in excess of 99.9% in dollar amount and 98.1% in number of holders of Senior Notes and 100% in dollar amount and 100% in number of holders of Subordinated Notes that voted on the prepackaged plan, voted to approve the plan. "[Mon]day's action enables us to efficiently restructure our debt and create a capital structure that will provide a foundation for future profitability," said John Weber, Remy's Chief Executive Officer. "Over the last several months, we have worked closely with our stakeholders to develop and now implement our plan to position Remy to meet the challenges of our industry." During the reorganization process, which is expected to conclude within 60 days, Remy will continue normal business operations. The company anticipates that it will receive court authority to pay employee wages and benefits without interruption and continue to pay trade creditors and suppliers in the ordinary course of business. Remy's international operations are excluded from the filing and will not be directly affected. The key elements of the prepackaged plan include: -- Repayment of the company's secured creditors in full. -- Raise $85 million in preferred equity through a backstopped rights offering to be made to holders of the Company's Senior Notes and Senior Subordinated Notes. -- Total debt reduction of $360 million through: * Exchange of the Company's $145 million of existing 8-5/8% Senior Notes for $100 million of New Third-Lien Notes and $45 million in cash (plus an amount of cash equal to the accrued but unpaid interest through the filing date (estimated to be $10 million) and up to $2 million of new preferred stock in respect of postpetition interest). In addition, these noteholders will receive a $10 million consent fee for agreeing to the overall restructuring. * Reduction of the company's unsecured debt obligations by $315 million by converting the 9-3/8% Senior Subordinated Notes and 11% Senior Subordinated Notes into 100% of the common equity of the reorganized company. -- Cancellation of all of the Company's existing equity interests. As previously disclosed, Remy has obtained a binding commitment from Barclays Capital, the investment banking division of Barclays Bank PLC, to provide debtor-in-possession financing for up to $225 million and up to $330 million of long-term exit financing. "This is excellent news for our customers, suppliers and employees worldwide because it paves the way for a promising future for Remy and its long-term viability," said Mr. Weber. "We are extremely grateful for the support of all of our constituents and look forward to completing our financial restructuring in the coming months." Based in Anderson, Indiana, Remy Worldwide Holdings Inc. acts as a holding company of all the outstanding capital stock of Remy International Inc. Remy International --http://www.remyinc.com/ -- manufactures, remanufactures and distributes Delco Remy brand heavy-duty systems and Remy brand starters and alternators, locomotive products and hybrid power technology. The company also provides a worldwide components core-exchange service for automobiles, light trucks, medium and heavy-duty trucks and other heavy-duty, off-road and industrial applications. Remy has operations in the United Kingdom, Mexico and Korea, among others. REMY WORLDWIDE: Case Summary and 30 Largest Unsecured Creditors --------------------------------------------------------------- Lead Debtor: Remy Worldwide Holdings, Inc. 2902 Enterprise Drive Anderson, IN 46013 Bankruptcy Case No.: 07-11481 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Ballantrae Corporation 07-11482 HSG I, Inc. 07-11483 HSG II, Inc. 07-11484 International Fuel Systems, Inc. 07-11485 iPower Technologies, Inc. 07-11486 M. & M. Knopf Auto Parts, L.L.C. 07-11487 Marine Corporation of America 07-11488 NABCO, Inc. 07-11489 Power Investments Marine, Inc. 07-11490 Power Investments, Inc. 07-11491 Powrbilt Products, Inc. 07-11492 Publitech, Inc. 07-11493 Reman Holdings, L.L.C. 07-11494 Remy Alternators, Inc. 07-11495 Remy India Holdings, Inc. 07-11496 Remy International, Inc. 07-11497 Remy International Holdings, Inc. 07-11498 Remy Korea Holdings, LLC 07-11499 Remy Logistics, L.L.C. 07-11500 Remy Powertrain, L.P. 07-11501 Remy Reman, L.L.C. 07-11502 Remy Sales, Inc. 07-11503 Remy, Inc. 07-11504 Unit Parts Company 07-11505 Western Reman Industrial , Inc. 07-11506 Western Reman Industrial, LLC 07-11507 World Wide Automotive, L.L.C. 07-11508 World Wide Automotive Distributors, Inc. 07-11509 Type of business: Remy Worldwide acts as a holding company of all the outstanding capital stock of Remy International Inc. Remy International manufactures, remanufactures and distributes Delco Remy brand heavy-duty systems and Remy brand starters and alternators, locomotive products and hybrid power technology. The company also provides a worldwide components core-exchange service for automobiles, light trucks, medium and heavy-duty trucks and other heavy-duty, off-road and industrial applications. Remy has operations in the United Kingdom, Mexico and Korea, among others. See http://www.remyinc.com/ Chapter 11 Petition Date: October 8, 2007 Court: District of Delaware (Delaware) Debtors' Counsel: Douglas P. Bartner, Esq. Fredric Sosnick, Esq. Michael H. Torkin, Esq. Shearman & Sterling LLP 599 Lexington Avenue New York, NY 10022 Tel: (212) 848-4000 Fax: (212) 848-7179 http://www.shearman.com/ Debtors' Co-Counsel: Pauline K. Morgan, Esq. Edmon L. Morton, Esq. Kenneth J. Enos, Esq. Young Conaway Stargatt & Taylor, LLP The Brandywine Building 1000 West Street, 17th Floor Wilmington, DE 19801 Tel: (302) 571-6600 Fax: (302) 571-6600 http://www.ycst.com/ Debtors' Claims Agent: Kurtzman Carson Consultants LLC 2335 Alaska Avenue El Segundo, CA 90245 Tel: (866) 381-9100 Special Corporate Counsel: Greenberg Traurig, LLP Auditor: Ernst & Young, LLP Restructuring Advisor: AlixPartners, LLC At Sept. 30, 2006, Remy International's balance sheet showed: Total Assets: $919,736,000 Total Debts: $1,265,648,000 Debtors' Consolidated List of 30 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ U.S. Bank N.A. Bond Issuance $165,000,000 60 Livingston Avenue St. Paul, MN 55107-2292 Tel: (651) 495-3959 Fax: (651) 495-8100 Attn: Timothy Sandell U.S. Bank N.A. Bond Issuance $150,000,000 60 Livingston Avenue St. Paul, MN 55107-2292 Tel: (651) 495-3959 Fax: (651) 495-8100 Attn: Timothy Sandell The Bank of New York Bond Issuance $145,000,000 2 north LaSalle Street Suite 1020 Chicago, IL 60602 Tel: (312) 827-8548 Fax: (312) 827-8542 Attn: Linda Garcia U.S. Custom and Border Promissory Note $7,279,286 Protection Revenue Division 6650 Telecom Drive Indianapolis, IN 46278 Attn: Robert B. Hamilton Director Bocar S.A. de C.V. Trade $3,452,641 Cruz Verde NO 169-1A Mexico City, DF 04330 Tel: (+52) 722 279-6600 Fax: (+52) 555 422-2434 Attn: Raymundo Rodriguez REA Magnet Wire Inc. Trade $2,751,713 3600 East Pontiac Street Ft. Wayne, IN 46803 Tel: (260) 421-7452 Fax: (260) 421-7349 Attn: Mike Hughes A&E Auto Electric Trade $2,246,049 P.O. Box 5418 Spartanburg, SC 29304 Tel: (864) 463-3257 Fax: (864) 464-7333 Attn: Nicole Miller Osar (Italy) Trade $1,720,719 One Technology Ct. Turin, Italy 10070 Tel: (390) 1192-41078 Fax: (390) 1192-41097 Attn: Paolo Salvi Kolektor Group Trade $1,686,398 Vaolkova 10 5280 Idrija Idrija 29644 Tel: (412) 279-2980 Fax: (864) 409-8781 Attn: Rok Vodnik Sankaku (Xiamen) Trade $1,570,019 Auto Parts NO 58-26 Wenyuan Road Xiamen X 361004 Tel: 011-865922044010 Attn: Crystal Hu Wells Manufacturing Corp. Trade $1,526,938 26 South Brooke Street Fond Du Lac, WI 54936-0070 Tel: (920) 929-6263 Fax: (920) 922-3585 Attn: Pedro Vila Auto Electric Suppliers Trade $1,514,492 3233 Commerce Parkway Miramar, FL 33025 Tel: (800) 327-2258 Fax: (954) 435-0028 Attn: Mike Clausman American Auto Parts Trade $1,403,171 7007 North Austin Avenue Niles, IL 60714-4601 Tel: (847) 647-7090 Fax: (847) 647-7581 Attn: Julie O'Reilly Monopac SD Trade $1,272,675 17502 Jalan 4 Selangor, Malaysia Tel: (60-3) 6318-6200 Fax: (60-3) 6138-6206 Attn: Danny Ng Gary Barut Electro-Motive Diesel Trade $1,208,085 P.O. Box 70530 Chicago, IL 60673 Tel: (800) 255-5355 Fax: (708) 387-6626 Attn: Tim Standish Wetherill Associates Inc. Trade $1,175,825 P.O. Box 827063 Philadelphia, PA 19182-7063 Tel: (800) 877-3340 Fax: (800) 948-6121 Attn: Sandy Huggens Actron Technology Corp. Trade $1,158,502 1F, No 12, Sec2 Nan-Kan Road Luchu Hsiang Taoyuan, Taiwan ROC Tel: (886-3) 311-5555 Fax: (886-3) 311-9977 Attn: Jessie Chen Lone Star Container Trade $1,153,997 700 North Wildwood Drive Irving, TX 75061 Tel: (972) 579-1551 Fax: (972) 554-6081 Attn: Jerry Hardison Korea Delphi Automotive Trade $990,981 Systems 408-1 ma Buk-Ri Guseong-Eup Youngin-Si Gyeonggi-Do 449912 Tel: (82-3) 189-98612 Fax: (82-2) 761-9494 Attn: Ws Kang Industrias Kirkwood Trade $955,608 Calle 4 Norte No. 100 Ampliacion Parque Toluca De Lerdo, Mexico 50200 Tel: (52) 722 265-7564 Fax: (52) 722 265-7569 Attn: Norma Medina BPS - Allied Parts Trade $891,300 1122 Milledge Street East Point, GA 30344 Tel: (404) 559-8571 Fax: (404) 559-8584 Attn: Jerry Boles Quality Parts Supply Trade $733,746 15844 South Interstate Highway 35 Bruceville, TX 76630 Tel: (254) 857-4629 Fax: (254) 857-3527 Attn: Pat Patton Caterpillar, Inc. Trade $680,018 100 northeast Adams Street Peoria, IL 61629 Tel: (309) 675-5592 Fax: (309) 675-9135 Attn: Mary Buck Swift Transportation Trade $608,761 2200 South 75th Avenue Phoenix, AZ 85043 Tel: (602) 269-9700 Fax: (623) 907-7503 Attn: Ginnie Henkels Hitachi Metals America Trade $608,009 2101 South Arlington Heights Road, Suite 116 Arlington Heights, IL 60005 Tel: (847) 364-7200 Fax: (847) 364-7279 Attn: Heather Kozlowski Industrial Molding Corp. Trade $603,539 616 East Slaton Road Lubbock, TX 79404 Tel: (806) 474-1066 Fax: (806) 474-1168 Attn: Paula Olbham HTG - Tiffin Trade $603,125 1988 County Road #593 Tiffin, OH 44883 Tel: (419) 447-2221 Fax: (419) 447-2842 Attn: Betty Hall S&S Enterprises Trade $584,854 (c/o Simmons) 3rd Floor Froebel Center 90-2 Seoul 135-10 Tel: (822) 501-2848 Fax: (956) 712-1409 Attn: Ben Lee Andrea Kim Andra, LLC Promissory Note Not Stated 714 East 8th Street Anderson, IN 46012 Mobile: (765) 621-1053 Office: (765) 644-2803 Residence: (765) 649-2701 Fax: (765) 644-6675 Attn: William Surbaugh Eagle I, LLC Promissory Note Not Stated 714 East 8th Street Anderson, IN 46012 Mobile: (765) 621-1053 Office: (765) 644-2803 Residence: (765) 649-2701 Fax: (765) 644-6675 Attn: William Surbaugh ROADHOUSE GRILL: Case Summary & 24 Largest Unsecured Creditors -------------------------------------------------------------- Lead Debtor: Roadhouse Grill, Inc. 1750 North Florida Mango Road, Suite 102 West Palm Beach, FL 33409 Bankruptcy Case No.: 07-18410 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- R.H.G. Acquisition Corporation 07-18414 Type of business: The Debtor owned 57 restaurants and franchised 12 branches to five other companies. See http://www.roadhousegrill.com Chapter 11 Petition Date: October 8, 2007 Court: Southern District of Florida (West Palm Beach) Judge: Paul G. Hyman, Jr. Debtors' Counsel: Craig I. Kelley, Esq. Kelley & Fulton, P.A. 1665 Palm Beach Lakes Boulevard, Suite 1000 West Palm Beach, FL 33401 Tel: (561) 491-1200 Estimated Assets Estimated Debts ---------------- --------------- Roadhouse Grill, Inc. $1 Million to $1 Million to $100 Million $100 Million R.H.G. Acquisition $1 Million to $1 Million to Corporation $100 Million $100 Million A. Roadhouse Grill, Inc's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Prime Gaming Philippines, unsecured note $3,596,164 Inc. Berjaya Group (Cayman) Ltd./Berjaya Corp. Berhad/ Level 12/Berjaya Times Square/No. 1 Jalam Imbi 55100 Kuala Lumbur Malaysia C.O.I. Food Service trade debt $3,262,827 P.O. Box 538135 Atlanta, GA 30353-8135 CORSAIR Special Situations unsecured note $1,786,542 Funds 747 3rd Avenue, 36th Floor New York, NY 10017 C.N.L. Funding 2000-A, L.P. unsecured loan $454,421 C.N.L. A.P.F. Partners, L.P. 8377 East Hartford Drive, Suite 200 Scottsdale, AZ 85255 Auto-Chlor System trade debt $178,099 Wachovia Insurance Services trade debt $178,099 First Insurance Funding trade debt $169,491 Corp. T.W.C. Corp. (Florida) trade debt $41,060 Anchor Restaurant Supply trade debt $40,246 Mr. Greenjeans Produce trade debt $36,057 Tarantino Food Service trade debt $35,196 B.F.I. of North America, Inc. trade debt $33,500 First Choice Produce trade debt $32,376 Standard Coffee Co. trade debt $29,260 Global Restaurant Equipment trade debt $28,938 Advo, Inc. trade debt $27,851 Phoenix Wholesale Foods trade debt $27,525 NuCo2, Inc. trade debt $24,052 Express Scripts, Inc. trade debt $22,317 Yankee Produce Co. trade debt $21,694 B. R.H.G. Acquisition Corporation's Four Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Prime Gaming Philippines, unsecured note $3,596,164 Inc. Berjaya Group (Cayman) Ltd./Berjaya Corp. Berhad/ Level 12/Berjaya Times Square/No. 1 Jalam Imbi 55100 Kuala Lumbur Malaysia Tonto Capital Partners, G.P. trade debt $26,901 c/o Ayman Sabi 1440 SOuth Ocean Boulevard, Apartment 11-B Pompano Beach, FL 33062 American Stock Transfer & $4,854 Trust 59 Maiden Lane, Plaza Level New York, NY 10038 Steve Saterbo unknown SEA CONTAINERS: Wants to Allocate Funds to Two Non-Debtor Units --------------------------------------------------------------- Sea Containers Ltd. and its debtor-affiliates ask the U.S Bankruptcy Court for the District of Delaware for permission to allocate: (a) $300,000 of the funds remaining in the Finnjet Reserve; (b) $100,000 of the funds received by SC Treasury from SC Opera; and (c) $500,000 of the funds remaining in the Contingency Reserve, to their non-debtor subsidiaries, Periandros S.A. and Pualista Containers Maratismos Ltda. The $900,000 requested allocation will be used to fund $400,000 worth of repair and maintenance costs incurred by Periandros and $500,000 worth of land taxes and associated legal costs incurred by Paulista, Sean T. Greecher, Esq., at Young Conaway Stargatt & Taylor, in Wilmington, Delaware, says. Mr. Greecher relates that the allocation of funds to Periandros and Paulista will allow them to satisfy certain of their outstanding liabilities, which in turn allow them to maintain the operation of their businesses for a sufficient time to allow for the marketing and maximization of the sale or disposal value of the businesses to the ultimate benefit of the Debtors' estates and creditors. Headquartered 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. The Debtors' exclusive period to file a chapter 11 plan expires on Dec 21, 2007. (Sea Containers Bankruptcy News, Issue No. 27; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). SECURITY WITH: Closes $3.6 Mil. Funding from Warant Conversion -------------------------------------------------------------- Security With Advanced Technology has closed on $3.6 million in funding from a warrant conversion, generating funds to be used for marketing, promotions, inventory, tooling, working capital and general corporate expenses. "This funding is a great boost for the company and will assist our efforts towards our goals and objectives and to support our business plans," Scott Sutton, president and CEO of Security With Advanced Technology, said. "We are also very happy with the USPTO's decision to re-examine PepperBall's patents and believe it is a positive step in the defense of our lawsuit." The holders of approximately 1,165,000 "B" Warrants originally issued in connection with SWAT's October 2006 private placement agreed to exercise their warrants at $3.20 each, generating gross proceeds to SWAT of approximately $3,606,000. The "B" Warrants were originally exercisable for a maximum of 1,492,500 shares of SWAT's common stock at $4.75 per share. Pursuant to the Warrant Conversion Agreements entered into in connection with the offering, SWAT issued an aggregate of approximately 305,000 shares of its Common Stock and an aggregate of 860,000 shares of its Series A Preferred Stock upon exercise of the "B" Warrants. The closing of the Warrant Conversion Agreements was completed effective Sept. 28, 2007. The Series A Preferred Stock is non- voting, pays no dividends, contains no liquidation preference and is convertible into one share of Common Stock for each share of Series A Preferred Stock owned. As part of the Warrant Conversion Agreements, each holder of "B" Warrants that exercised its "B" Warrants also received "B" Replacement Warrants equal to the number of "B" Warrants exercised at $3.20 per share. Accordingly, an aggregate of 1,165,500 "B" Replacement Warrants were issued by SWAT to such holders. The "B" Replacement Warrants are exercisable for shares of SWAT's Common Stock at $4.30 per share commencing six months from the date of issuance of the "B" Replacement Warrants and ending on the three year anniversary of such date. Further, the "B" Replacement Warrants may be exercised on a cashless basis beginning one year following the date of issuance of the "B" Replacement Warrants. The terms of the "B" Replacement Warrants contain terms that are substantially identical to the terms of the original "B" Warrants. On Sept. 28, 2007, Security With Advanced Technology received communications from the USPTO concerning SWAT's request that two patents issued to PepperBall (US Patent Nos. 6,393,992 and 7,194,960) be re-examined by the USPTO in connection with the patent infringement lawsuit initiated by PepperBall on April 13, 2007. The USPTO granted Security With Advanced Technology's requests to re-examine these two patents based upon 12 of 13 substantial new questions of patentability submitted to the USPTO by Security With Advanced Technology. About Security With Advanced Technology Inc. Security With Advanced Technology Inc. (Nasdaq: SWAT) -- http://www.swat-systems.com/-- provides critical, high-tech security products and services, which include non-lethal protection devices, tactical training services, surveillance and intrusion detection systems and mobile digital video surveillance solutions. SWAT's products and services are designed for government agencies, military and law enforcement, in addition to transportation, commercial facilities and non-lethal personal protection segments. Going Concern Doubt GHP Horwath P.C. expressed substantial doubt about Security With Advanced Technology Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2006. The auditing firm reported that the company did not generate significant revenues in 2006, reported a net loss of approximately $9,347,000 and consumed cash in operating activities of approximately $5,651,000 for the year ended Dec. 31, 2006. The company incurred a net loss and utilized net cash in operating activities of $8.6 million and $5 million, respectively, for the six months ended June 30, 2007. SENTINEL MANAGEMENT: Quinn Emanuel Okayed as Committee's Counsel ---------------------------------------------------------------- The Official Committee of Unsecured Creditors of Sentinel Management Group Inc. obtained permission from the United States Bankruptcy Court for the Northern District of Illinois to retain Quinn Emanuel Urquhart Oliver & Hedges LLP as its bankruptcy counsel. As the Committee's counsel, Quinn Emanuel is expected to: a. advise the Committee with respect to its rights, powers, and duties in the Debtor's bankruptcy proceedings; b. assist and advise the Committee in its consultations with the Debtor and the Trustee regarding administration of the case; c. assist the Committee in analyzing the claims of Sentinel's creditors and in negotiating with these creditors; d. assist with the Committee's investigation of the acts, conduct, assets, liabilities, and financial condition of Sentinel, and the operation of its business; e. assist the Committee in its analysis of, and negotiations with, the Debtor, the Trustee, or any third party concerning matters relates to, among other things, the terms of a chapter11 plan for the Debtor; f. assist and advise the Committee with respect to its communications with the general creditor body regarding significant matters in the case; g. represent the Committee at all hearing and other proceedings, unless attendance by the Committee's co- counsel would be more efficient; h. review and analyze all applications, orders, statements of operations, and schedules filed with the Court and advise the Committee as to their propriety; i. assist the Committee in preparing pleading and applications as may be necessary in furtherance of the Committee interests and objectives; and j. perform other legal services as may be required and are deemed to be in the interests of the Committee in accordance with the Committee's powers and duties set forth in the Bankruptcy Code. The Committee tells the Court that partners of the firm bill between $615 to $875 per hour. Other attorneys bill between $365 and $875 per hour while legal assistants hourly rates range from $235 to $260. Susheel Kirpalani, Esq., a parent at Quinn Emanuel, assures the Court that his firm is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Kirpalani can be reached at: Susheel Kirpalani, Esq. Quinn Emanuel Urquhart Oliver & Hedges, LLP 51 Madison Avenue New York, NY 10010 Tel: (212) 849-7000 Fax: (212) 849-7100 http://www.quinnemanuel.com/ Based in Northbrook, Illinois, Sentinel Management Group Inc. -- http://www.sentinelmgi.com/-- is a full service firm offering a variety of security solutions. The company filed a chapter 11 petition on August 17, 2007 (Bankr. N.D. Ill. Case No. 07-14987). Ronald Barliant, Esq., Randall Klein, Esq., and Kathryn A. Pamenter, Esq., at Goldberg, Kohn, Bell & Black Rosenbloom & Moritz, Ltd. represent the Debtor. When the Debtor sought bankruptcy protection, it listed assets and debts of more than $100 million. The Debtor's exclusive period to file a plan expires on Dec. 17, 2007. In Aug. 28, 2007, the Court approved Frederick Grede as the Debtor's Chapter 11 Trustee. Mr. Grede selected Catherine L. Steege, Esq., Christine L. Childers, Esq., and Vincent E. Lazar, Esq., at Jenner & Block LLP as his counsels. SENTINEL MANAGEMENT: Court Okays DLA Piper as Panel's Co-Counsel ---------------------------------------------------------------- The Official Committee of Unsecured Creditors of Sentinel Management Group Inc. obtained permission from the United States Bankruptcy Court for the Northern District of Illinois to retain DLA Piper US LLP as its bankruptcy co-counsel. The firm will: a. advise the Committee on local practice, Court and Trustee procedures and concerning administration of these cases; b. appear at all court hearings, as requested by the Committee and prepare and review pleadings, motions and correspondence in connection with the bankruptcy proceedings; c. consult with the Trustee and his counsel on general case administration, budgets and retention of professionals; d. act as local counsel and handle appropriate filings and service; e. monitor regulatory investigations of the Debtor by the SEC, CFTC, NFA and advise the Committee on the impact of creditors or customers; and f. provide the Committee with other services as may be requested by the Committee provided that these services are not duplicative of services being rendered by Quinn Emanuel Urquhart Oliver & Hedges, LLP, the Committee's counsel. The Committee discloses that professionals of the firm bill between $80 to $550 per hour. The Committee further discloses Mark A. Berkoff, Esq., will bill $640 per hour for this engagement while Marc I. Fenton, Esq., will bill $550. To the best of the Committee's knowledge, the firm is disinterested as that term is defined in Section 101(14) of the Bankruptcy Code. The firm's attorneys can be reached at: Mark A. Berkoff, Esq. DLA Piper US LLP 203 North LaSalle Street, Suite 1900 Chicago, Illinois 60601-1293 Tel: (312) 368-7090 Fax: (312) 630-7314 http://www.dlapiper.com/ --- and --- Marc I. Fenton, Esq. DLA Piper US LLP 203 North LaSalle Street, Suite 1900 Chicago, Illinois 60601-1293 Tel: (312) 368-7082 Fax: (312) 630-5348 http://www.dlapiper.com/ Based in Northbrook, Illinois, Sentinel Management Group Inc. -- http://www.sentinelmgi.com/-- is a full service firm offering a variety of security solutions. The company filed a chapter 11 petition on August 17, 2007 (Bankr. N.D. Ill. Case No. 07-14987). Ronald Barliant, Esq., Randall Klein, Esq., and Kathryn A. Pamenter, Esq., at Goldberg, Kohn, Bell & Black Rosenbloom & Moritz, Ltd. represent the Debtor. When the Debtor sought bankruptcy protection, it listed assets and debts of more than $100 million. The Debtor's exclusive period to file a plan expires on Dec. 17, 2007. In Aug. 28, 2007, the Court approved Frederick Grede as the Debtor's Chapter 11 Trustee. Mr. Grede selected Catherine L. Steege, Esq., Christine L. Childers, Esq., and Vincent E. Lazar, Esq., at Jenner & Block LLP as his counsels. SENTINEL MANAGEMENT: U.S. Trustee Appoints Nine-Member Committee ---------------------------------------------------------------- The U.S. Trustee for Region 11 appointed three creditors to the Official Committee of Unsecured Creditors in the Chapter 11 case of Sentinel Management Group Inc. The Committee members are: 1. Discus Master Ltd. CraigMuir Chambers P.O. Box 71 Road Town, Tortola British Virgin Islands Representative: Philippe Jordan 2. Jump Trading 600 West Chicago Avenue #825 Chicago, IL 60610 Representative: William DiSomma 3. Penson GHCO 600 West Chicago Avenue, Suite 775 Chicago, IL 60610 Representative: Carl Gilmore 4. Rotchford Barker 40 County Road 2AC P.O. Box 2080 Cody, WY 82414 Representative: Rotchford Barker 5. JEM Commodity Relative Value Fund LP 28 Southwest 1st Avenue, Suite 420 Portland, OR 97201 Representative: John Moody 6. Vision Financial Markets LLC 4 High Ridge Park, Suite 100 Stamford, CT 06905 Representative: Michael Doherty 125 South Wacker, Suite 2000 Chicago, IL 60606 7. BC Capital Fund A, LLC 2813 Northwood Circle Corning, NY 14830 Representative: Timothy Currie 8. Kottke Associates LLC 141 West Jackson, Suite 1220 Chicago, IL 60604 Representative: Carmen Soldato 9. FC Stone LLC 141 West Jackson, Suite 2730 Chicago, IL 60604 Representative: Clarence C. Delbridge, III Official creditors' committees have the right to employ legal and accounting professionals and financial advisors, at the Debtors' expense. They may investigate the Debtors' 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 Northbrook, Illinois, Sentinel Management Group Inc. -- http://www.sentinelmgi.com/-- is a full service firm offering a variety of security solutions. The company filed a chapter 11 petition on August 17, 2007 (Bankr. N.D. Ill. Case No. 07-14987). Ronald Barliant, Esq., Randall Klein, Esq., and Kathryn A. Pamenter, Esq., at Goldberg, Kohn, Bell & Black Rosenbloom & Moritz, Ltd. represent the Debtor. When the Debtor sought bankruptcy protection, it listed assets and debts of more than $100 million. The Debtor's exclusive period to file a plan expires on Dec. 17, 2007. In Aug. 28, 2007, the Court approved Frederick Grede as the Debtor's Chapter 11 Trustee. Mr. Grede selected Catherine L. Steege, Esq., Christine L. Childers, Esq., and Vincent E. Lazar, Esq., at Jenner & Block LLP as his counsels. SOUEIDAN GAS: Files List of Seven Largest Unsecured Creditors ------------------------------------------------------------- Soueidan Gas & Mini Mart Inc. filed with the U.S. Bankruptcy Court for the Eastern District of Michigan a list of its seven largest unsecured creditors. Entity Claim Amount ------ ------------ Business Loan Center $3,097,462 1633 Broadway, 39th Floor (1,700,000 New York, NY 10019 secured) Moussa and Hala Soueidan $140,000 529 Gulley Dearborn Heights, MI 48127 City of Southgate $39,649 Oscar Larson $37,000 Western Union $24,905 City of Southgate $14,000 DTE Energy $13,000 Headquartered in Southgate, Michigan, Soueidan Gas & Mini Mart Inc. offers car washing services. The company filed for Chapter 11 protection on Aug. 14, 2007 (Bankr. E.D. Mich. Case No. 07-55957). When the Debtors filed for protection from its creditors, it listed assets and debts between $1 million and $100 million. SPACEHAB INC: NASDAQ Says Bid Price and Net Income Non-Compliant ---------------------------------------------------------------- SPACEHAB Incorporated received a NASDAQ Staff Determination letter on Oct. 2, 2007, indicating that the company fails to comply with NASDAQ Marketplace Rules 4310(c)(4) and 4310(c)(3), and that its securities are, therefore, subject to delisting from The NASDAQ Capital Market. Marketplace Rule 4310(c)(4) requires that the company maintain a $1 bid price. After earlier notices of non-compliance with the requirement, the company was granted a grace period, which expired on Oct. 1, 2007. On Sept. 28, 2007, the company is also not in compliance with Marketplace Rule 4310(c)(3) which requires the company to have $500,000 of net income from continuing operations for the recently completed fiscal year or two of the three most recently completed fiscal years; or $35,000,000 market value of listed securities; or $2,500,000 in stockholders' equity. The company plans to request a hearing before a NASDAQ Listing Qualifications Panel to present its plan of compliance and request continued listing pending the completion of the plan. However, there can be no assurance the Panel will grant the company's request for continued listing. About Spacehab Incorporated Headquartered in Webster, Texas SPACEHAB Incorporated – http://www.spacehab.com/-- provides commercial space products and services to NASA, International space agencies, Department of Defense, and private customers worldwide. It develops and operates space flight hardware assets, and provides manned and unmanned payload processing services. The company operates in three segments: SPACEHAB Flight Services, Astrotech Space Operations, and SPACEHAB Government Services. At June 30, 2007, the company's balance sheet showed $72,475,000 in total assets and $85,606,000 in total liabilities, resulting a $13,131,000 stockholders' equity. The company had a working capital deficit of $5,545,000 at June 30, 2007. The company posted a $16,292,000 net loss on $52,762,000 of total revenues for the year ended June 30, 2007, as compared with a $12,397,000 net loss on $50,746,000 of total revenues in the prior year. The company also posted an operating loss of $12,830,000 at June 30, 2007, compared with a $7,191,000 operating loss in the prior year. Going Concern Doubt As reported in the Troubled Company Reporter on Oct. 1, 2007, PMB Helin Donovan LLP in Houston, Texas, expressed substantial doubt about Spacehab 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 that the company has sustained recurring losses and negative cash flow from operations. TERWIN MORTGAGE: Poor Credit Support Cues S&P to Downgrade Ratings ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its ratings on the class B-2 and B-3 asset-backed certificates from Terwin Mortgage Trust Series TMTS 2004-11HE. S&P downgraded class B-2 to 'BB' from 'BBB' and downgraded class B-3 to 'B' from 'BBB-'. S&P also removed our rating on class B-3 from CreditWatch, where it was placed with negative implications on May 25, 2007. The lowered ratings reflect the recent deterioration of available credit support. As of the September 2007 remittance period, the current and projected credit support levels were not sufficient for the previous ratings. The six- and 12-month average losses for this series were approximately $109,000 and $106,000, respectively, and have outpaced monthly excess interest for most of the past 12 months. This transaction is 36 months seasoned and has realized $1.87 million in cumulative losses. While this deal is passing its triggers, overcollateralization will most likely step down during the next distribution period and further erode available support. Total and serious delinquencies are 16.30% and 12.23%, respectively, of the current principal balance. The collateral backing this transaction consists of subprime, fixed- and adjustable-rate, first-lien mortgage loans. TXU CORP: Fitch Downgrades Issuer Default Rating to B ----------------------------------------------------- Fitch downgraded the long-term issuer default rating of TXU Corp. to 'B' from 'BB+' and has taken various rating actions on TXU subsidiaries. The ratings actions reflect the financial structure that will be put in effect to fund the pending acquisition of TXU Corp. in a leveraged transaction. The IDR of Texas Competitive Electric Holdings LLC is also downgraded to 'B' from 'BBB-'. The IDR of TXU's regulated transmission and distribution utility subsidiary, Oncor Electric Delivery is affirmed at 'BBB-' as a result of the ring-fencing mechanisms that provides a reasonable measure of insulation to Oncor from the rest of the TXU group. However, the senior unsecured rating of Oncor was lowered by one notch to 'BBB-' as a result of management's intent to convert the substantial majority of Oncor's existing unsecured debt to secured debt. The rating watch negative is removed from all TXU group issuers and the Rating Outlook is Stable for TXU, Oncor and TCEH. About $47 billion of debt and credit facilities are affected by today's ratings actions. The downgrade of TXU and its indirect subsidiary to 'B' reflects the significant debt leverage and weak cash flow coverage ratios that will result from completion of the LBO merger transaction that is scheduled to close on Oct. 10, 2007. TXU is being acquired for approximately $46 billion by a limited partner sponsor group lead by affiliates of Kohlberg, Kravis and Roberts and Texas Pacific Group. The significant amounts of debt that will result from closing of the LBO and aggressive financial strategy are Fitch's most significant rating concerns. The consolidated ratio of (FFO + Interest)/Interest is forecasted to be about 1.4x as of Dec. 31, 2008, with consolidated debt forecasted at more than 8:1 x trailing 12 months EBITDA at that date. Additional rating concerns include: the risk of retail customer loss or margin reduction; construction risk related to three new lignite plants; commodity price fluctuations to the extent not covered by financial hedges, and risks associated with any adverse changes in the Texas retail or wholesale electric market structure or environmental regulation. Although much of the price risk associated with the expected energy output of baseload generation units is hedged through forward sales of natural gas for the next five years, TCEH retains some commodity price risk associated with the use of gas derivatives to hedge electric power output and fluctuation in the market implied heat rate. Electricity prices in TCEH's market are largely driven by natural gas prices because of the dependence on gas-fired generation. On balance, TXU's business portfolio benefits from high prices; however, in Fitch's view, continuation of high and volatile power prices would increase the risk that politicians may become pressured to pass laws to cap rates or change the market structure. Post-merger liquidity of TXU and TCEH is considered satisfactory. There is a considerable amount of availability under various long term secured credit facilities at TCEH that may be drawn to supplement internal cash flow. In addition, the pay-in-kind toggle feature of the new TCEH and TXU notes can be utilized to preserve liquidity. TCEH will have about $3.95 billion of committed revolving and letter of credit facility availability at closing and also will have a collateral facility to provide 'right-way' collateral support for certain hedge transactions with no dollar cap. In addition, there will be about $2 billion of availability under the $4.1 billion delayed draw term loan for funding construction costs of the three lignite units that are scheduled to enter commercial operation in 2009 and 2010 as well as environmental compliance investments. TXU's ratings are supported by: ownership of lignite and nuclear base-load generation assets in the tightening Electric Reliability Council of Texas market where prices are set by natural gas for about 90% of the hours each year: strong wholesale generation and utility operations; above average growth of the market; and the cash flow stability of the regulated transmission and distribution operations. Fitch anticipates a continued tightening of capacity reserve margins in Texas, which is favorable for cash flow prospects. The ownership of lignite reserves and mine-mouth production assure relatively stable and low unit costs of production and limit TCEH's dependence on long-distance transportation of fuels. The individual issue ratings at TXU and TCEH are notched above or below the 'B' IDR of these issuers as a result of their relative recovery prospects based on an enterprise valuation in a hypothetical default scenario. Individual plant valuations were derived using Fitch's wholesale power market model verified by comparison with transaction values per unit of capacity in transactions. The valuations of Oncor and the retail business were based on a stressed EBITDA multiple. Fitch used conservative valuation assumptions for the retail electric provider business given the limited history, intense competition, lack of comparable transactions, and weak earnings history of retail. Even under Fitch's below-market energy pricing assumptions, ($6 natural gas price) the senior secured credit facilities at TCEH have outstanding recovery prospects and as a result the senior secured issues are rated 'BB', three notches above the IDR. The new unsecured notes at TXU are rated 'B+', indicating above- average recovery prospects, which results from indirect ownership of Oncor's equity and the relatively stable enterprise value of that business. As a result of their respective guarantees, the new unsecured cash-pay and PIK toggle notes at TXU and TCEH are relatively superior to the unsecured debt without guarantees incurred by these issuers prior to the LBO. Consequently, issue ratings for those outstanding issues without guarantees have been profoundly downgraded, reflecting their low recovery prospects in a Fitch's default scenario. The 'BBB-' IDR of Oncor reflects its investment grade standalone credit metrics. Oncor and its owners will implement several ring- fencing mechanisms to insulate Oncor from the rest of the TXU group. In Fitch's hypothetical TXU default scenario, Fitch did not presume an Oncor default. Oncor creditors would obtain full recovery and the residual equity value would enhance the recovery prospects of TXU creditors. The ring-fencing stems from management policies, regulatory ring- fencing initiatives that are incorporated in a settlement agreement filed with the Public Utilities Commission of Texas, and covenants in Oncor's new $2 billion revolving credit facility. While the ring-fencing is considered sufficient to retain investment grade ratings, it is imperfect; rating linkage stems from shared tax filings, pension, operational linkage and counter- party accounts receivable risk. New Ratings: TXU Corp: -- New senior unsecured debt (guaranteed) 'B+'/RR3. Texas Competitive Electric Holdings (formerly known as TXU Energy Co LLC): -- Various senior secured facilities 'BB/RR1'; -- New senior unsecured debt (guaranteed) 'B+/RR3'. Oncor Electric Delivery Company (formerly known as TXU Electric Delivery Co): -- Secured bank facility and secured notes 'BBB'. Fitch downgraded these ratings: TXU Corp. -- IDR to 'B' from 'BB+'; -- Senior unsecured debt to 'CCC+'/RR6 from 'BB+' (non- guaranteed). TXU US Holdings Inc.: -- IDR to 'B' from 'BB+'; -- Secured debt to 'CCC+/RR6' from 'BB+' -- Unsecured debt to 'CCC+'/RR6 from 'BB+' Texas Competitive Electric Holdings (formerly known as TXU Energy Co LLC): -- IDR to 'B' from 'BBB-'; -- Senior unsecured debt (non-guaranteed) consisting of various pollution control bonds issued by the Brazos River Authority, Sabine River Authority, and Trinity River Authority for TXU projects to 'B-/RR5' from 'BBB-'; Oncor Electric Delivery Company (formerly known as TXU Electric Delivery Co): -- Senior unsecured notes to 'BBB-' from 'BBB' Fitch affirmed these ratings: Oncor Electric Delivery Company (formerly known as TXU Electric Delivery Co): -- Long term IDR affirmed at 'BBB-'; -- Short term IDR affirmed at 'F3'. These ratings have been withdrawn: TXU Corp: -- Commercial Paper/Short term IDR 'B'. Texas Competitive Electric Holdings: -- Short-term rating downgraded to 'B' from 'F3' and withdrawn. U.S. AIRWAYS: Flight Attendants to Hold Rally on October 16 ----------------------------------------------------------- Flight attendants of US Airways Group Inc., America West Airlines Inc. and Mesa Air Group Inc., both in the middle of negotiations, will rally at the Phoenix Sky Harbor International Airport on Oct. 16, 2007, 12:00 p.m. to 2:00 p.m. to demand contract improvements. With the support of hundreds of fellow flight attendants from 20 carriers, all represented by the Association of Flight Attendants-CWA, US Airways, America West and Mesa Air flight attendants will send a strong, resounding message to the airlines' management that it is time to move negotiations forward and agree to fair contracts. After years of concessionary agreements and stalling by management, flight attendants across the industry have had enough and are ready to fight back. Now they are coming together in a show of unity and strength. Due to Mesa's poverty level wages, flight attendant turnover at the airline is skyrocketing, only adding to the airline's operational problems. However, while management should be focused on retaining employees and providing them with a living wage, Mesa management is taking company profits and sending them to China where they are in the process of building a new foreign airline. For over a year, while the company has been making money, management continues to try and force the flight attendants into accepting a concessionary agreement similar to those seen during the bankruptcy process. At the newly merged US Airways, flight attendants are demanding contract improvements. Flight attendants from America West (US Airways West) have not seen a pay increase in over four years. US Airways flight attendants continue to work under a concessionary agreement put in place during the last bankruptcy, which eroded pay scales, terminated pensions and slashed benefits. Passengers have been exposed to poor operations, short staffing, delays, and merger related system failures. Yet while employee and passenger relations continue to decline, US Airways management has reaped millions in bonuses. In addition to Mesa and US Airways flight attendants, there will be over 200 flight attendants from carriers across the country, as well as local political and labor officials. About US Airways Based in Tempe, Arizona, US Airways Group Inc.'s (NYSE: LCC) - http://www.usairways.com/-- primary business activity is the ownership of the common stock of US Airways, Inc., Allegheny Airlines, Inc., Piedmont Airlines, Inc., PSA Airlines, Inc., MidAtlantic Airways, Inc., US Airways Leasing and Sales, Inc., Material Services Company, Inc., and Airways Assurance Limited, LLC. Under a Chapter 11 plan declared effective on March 31, 2003, USAir emerged from bankruptcy with the Retirement Systems of Alabama taking a 40% equity stake in the deleveraged carrier in exchange for $240 million infusion of new capital. US Airways and its subsidiaries filed another chapter 11 petition on Sept. 12, 2004 (Bankr. E.D. Va. Case No. 04-13820). Brian P. Leitch, Esq., Daniel M. Lewis, Esq., and Michael J. Canning, Esq., at Arnold & Porter LLP, and Lawrence E. Rifken, Esq., and Douglas M. Foley, Esq., at McGuireWoods LLP, represent the Debtors in their restructuring efforts. In the Company's second bankruptcy filing, it lists $8,805,972,000 in total assets and $8,702,437,000 in total debts. The Debtors' Chapter 11 plan for its second bankruptcy filing became effective on Sept. 27, 2005. The Debtors completed their merger with America West on the same date. * * * US Airways Group Inc.'s $1.6 billion secured credit facility due 2014, currently being syndicated, carries Standard & Poor's Ratings Services 'B' rating. That rating was assigned in March 2007. U.S. DRY: Buying Team Enterprises & Bell Hop Assets for $6.13 Mil. ------------------------------------------------------------------ U.S. Dry Cleaning Corporation together with its subsidiaries, USDC Fresno Inc. and USDC Fresno 2 Inc., entered into a master purchase agreement, pursuant to the company acquiring substantially all the assets and certain liabilities of Team Enterprises Inc., Bell Hop Cleaners of California Inc., Team Equipment Inc. and Fabricare Services Inc., including 18 dry cleaning stores in Fresno, California and 2 dry cleaning stores in Arizona, for approximately $6.13 million, subject to the terms and conditions. Under the purchase agreement, the company will purchase these assets through $3,067,000 in cash and $3,067,000 shares of the company's common stock, subject to a maximum price of $3.50 per share. At the acquisition closing date, the company will deposit with an escrow agent $2,000,000 of the company's common stock as partial satisfaction of the purchase price and will enter into an Escrow Agreement with Andrew B. Jones, as Shareholders' Agent, and the Escrow Agent. The board of directors of the company, Fresno Sub, Fresno 2 Sub, Team Enterprises, Bell Hop, Team Equipment and FSI have unanimously approved the Purchase Agreement and the parties have made customary representations, warranties and covenants in the Purchase Agreement for a transaction of this type. The survival period of the representations and warranties made by the parties is 24 months. Team Enterprises, Bell Hop, Team Equipment and FSI will indemnify the company for any breaches of their representations and warranties and covenants up to a maximum amount of the Escrow Shares deposited into escrow. The company, Fresno Sub and Fresno 2 Sub will only assume equipment leases and other specified liabilities of Team Enterprises, Bell Hop, Team Equipment and FSI in the acquisition, and will not assume any indebtedness for borrowed money. Fresno Sub has agreed to enter into a three year Employment Agreement with Tom Jones as district president - Fresno. The Employment Agreement will provide for base compensation and severance through the term of the Employment Agreement in the event Mr. Jones is terminated by the company without cause. Fresno Sub and Fresno 2 Sub will enter into a Non-Compete Agreement with each of the Shareholders for a five year term, subject to the terms and conditions. About US Dry Cleaning Headquartered in Palm Springs, California, US Dry Cleaning Corporation (OTC:UDRY) fka First Virtual Communications Inc. -- http://www.usdrycleaning.com/-- is engaged in laundry and dry cleaning business and operates in Honolulu and Palm Springs. Incorporated in October 1993, U.S. Dry Cleaning is focused on acquiring profitable businesses that hold a leading share in their individual markets. Going Concern Doubt On Nov. 14, 2006, Squar Milner Miranda & Williamson LLP, in Newport Beach, California, expressed substantial doubt about US Dry Cleaning Corporation's ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Sept. 30, 2006. The auditors pointed to the company's recurring losses from operations and an accumulated deficit of approximately $6.9 million. VERTIS COMMS: June 30 Balance Sheet Upside-Down by $594 Million --------------------------------------------------------------- Vertis Communications fka Vertis Inc. reported financial results with the U.S. Securities and exchange Commission for three months and six months ended June 30, 2007. Vertis Communications' June 30 balance sheet showed total assets of $798.9 million and total liabilities of $1.4 billion, resulting in a $594.9 million stockholders' deficit. Revenue for the second quarter of 2007 was $332.1 million versus $350.5 million in the second quarter of 2006. The 5.2% decline was primarily the result of a continuing weakness in Advertising Inserts. Revenue in the Direct Mail segment was up slightly. On a year-to-date basis, revenue was $662.8 million, a decrease of $35.8 million or 5.1%, from revenue of $698.6 million in the first half of 2006. The decrease was driven by revenue declines in Advertising Inserts and our "Other" segment, which were somewhat offset by revenue growth in Direct Mail. Net loss during the quarter grew to $19.7 million from $5.0 million in the same quarter one year ago. Through June 30, 2007, the net loss amounted to $44.9 million versus $26.6 million in the corresponding period in the prior year. The decline in revenues was the main driver of the increased loss. Cash and Liquidity The company ended the six month period with $6.0 million in cash and debt of $1,124.3 million. In addition, the off-balance sheet Accounts Receivable facility stood at $110.1 million. The company ended the six month period with $92.6 million available on its $250 million senior credit facility. Last 12-month Adjusted EBITDA calculated for covenant purposes was $144.1 million or $19.1 million above the minimum requirement. Management Comments "Although the environment remains challenging, our overall second quarter and first half financial results were, for the most part, in-line with our expectations," Mike DuBose, Chairman and Chief Executive Officer commented. "During the second quarter we continued to pursue our key turnaround initiatives focused on aggressively addressing the root causes of the quality, performance and customer service issues which impacted the Company in previous years. In addition, we further upgraded the organizations and infrastructure necessary to drive profitable growth into the future. Our initiatives are beginning to yield results in our quality, customer service and operating efficiency. "In several cases our performance improvements in these areas have been noted by our customers, as significant. We have also made improvements in our selling, pricing and new business capture processes. We continue to see opportunities to improve efficiency and lower costs while simultaneously capturing new profitable business as well as providing additional value added products and services to our existing customers. While much work remains to be done, we are pleased overall with the progress and confident that we are positioning Vertis for a stronger future." A full-text copy of the regulatory filing is available for free at http://ResearchArchives.com/t/s?2423 About Vertis Communications Vertis Communications, fka Vertis Inc., a wholly owned subsidiary of Vertis Holdings -- http://www.vertisinc.com/-- is a marketing partner to a number of clients, including several Fortune 500 companies. The company offers consulting, creative, research, direct mail, media, technology and production services. It also provides print advertising, direct marketing solutions, and similar services to America's retail and consumer services companies. VERTIS COMMS: Terminates LOI to Merge with American Color --------------------------------------------------------- Vertis Communications fka Vertis Inc. terminated a July 21, 2007 letter of intent, as amended on Aug. 14, 2007, with ACG Holdings Inc. relating to the proposed merger between Vertis Communications and ACG Holdings Inc. As reported in the Troubled Company Reporter on July 25, 2007, Vertis Communications and American Color signed a letter of intent to merge the operations of ACG into Vertis' nationwide marketing and printing services platform. The owners of ACG would have received 10% of the combined company's common equity and 8% of the mezzanine subordinated notes of Vertis Holdings. The agreement of Sept. 13, 2007, between Vertis Inc., American Color Graphics, Inc., and ACG Holdings, Inc. and certain Consenting Noteholders expired by its terms on Sept. 29, 2007. Vertis conveyed an offer with a deadline of midnight on Sept. 30, 2007 and received no affirmative response. Vertis therefore terminated the letter of intent, but is prepared to entertain further discussions. About American Color Graphics Headquartered in Brentwood, Tennessee, American Color Graphics Inc. -- http://www.americancolor.com/-- is engaged in printing of advertising inserts and newspaper products in the United States. The company is a wholly owned subsidiary of ACG Holdings Inc. The company operates in two segments: print and premedia services. Customers for its print services include about 230 national and regional retailers and approximately 155 newspapers. The premedia services segment provides its customers with a solution for the preparation and management of materials for printing, including the design, creation and capture; manipulation; storage; transmission, and distribution of images. About Vertis Communications Vertis Communications, fka Vertis Inc., a wholly owned subsidiary of Vertis Holdings -- http://www.vertisinc.com/-- is a marketing partner to a number of clients, including several Fortune 500 companies. The company offers consulting, creative, research, direct mail, media, technology and production services. It also provides print advertising, direct marketing solutions, and similar services to America's retail and consumer services companies. VERTIS INC: S&P Revises CreditWatch from Negative to Developing --------------------------------------------------------------- Standard & Poor's Ratings Services revised its CreditWatch implications for its 'CC' corporate credit rating on Vertis Inc. to developing from negative. "[The rating] action follows Vertis's announcement that it had terminated the letter of intent to merge with American Color Graphics Inc.'s parent ACG Holding Inc.," explained Standard & Poor's credit analyst Guido DeAscanis. In addition, the agreement to restructure debt securities of Vertis and its affiliates and American Color Graphics expired by its terms on Sept. 29, 2007. Vertis stated that it had offered to extend the deadline but received no response from ACG. However, Vertis also stated that it would be prepared to entertain further discussions with ACG. At the same time, Standard & Poor's said its 'CCC' ratings on Vertis's $350 million senior secured second-lien notes and $350 million senior unsecured notes remain on CreditWatch with negative implications, where they were originally placed on April 4, 2007. The CreditWatch developing status of the corporate credit rating on Vertis means the rating could go up or down, depending on whether the parties restart merger discussions and an agreement is reached for another debt exchange offer. Rating downside pressure would result if any future exchange offer for any one of Vertis's debt issues does not represent full and timely payment. Otherwise, rating upside would likely result following a reassessment by Standard & Poor's of Vertis's restructuring plan and its impact on Vertis's credit profile. The ratings on the notes remain on CreditWatch with negative implications, reflecting the existence of priority debt in the capital structure that will continue to result in a two-notch differential between Vertis's corporate credit rating and the ratings on these notes. If the corporate credit rating is raised to 'B-' (the level prior to the ACG merger announcement) the notes ratings will be affirmed. If the corporate credit rating remains below 'B-', the ratings on these notes will be lowered to maintain the two-notch differential. VICTORY MEMORIAL: DASNY DIP Financing Pact Gets Final Court Okay ---------------------------------------------------------------- The Honorable Carla E. Craig of the United States Bankruptcy Court for the Eastern District of New York gave Victory Memorial Hospital and its debtor-affiliates authority, on a final basis, to access the debtor-in-possession credit facility provided to it by Dormitory Authority of The State of New York. The Court specifically allowed the Debtors to borrow the remaining $650,000 from the $2,000,000 loan DASNY committed to the Debtors pursuant to a Nov. 20, 2006 credit agreement. The Debtors will use the funds to provide general working capital and for payment of fees and expenses incurred. As adequate protection, the Debtors grant DASNY superpriority administrative expense treatment of its claims under the DIP Agreement, fully perfected junior priority liens on the Debtors' real properties not otherwise encumbered by DASNY's first mortgage. Based in Brooklyn, New York, Victory Memorial Hospital is a non-profit, full service acute care voluntary hospital with approximately 241 beds and a skilled nursing unit with 150 beds. Victory Hospital provides a full range of medical services with a focus on community care and a program of community outreach to the Brooklyn community. Victory Ambulance Services, Inc. a for-profit subsidiary, provides Victory Hospital with ambulance services. Victory Pharmacy, Inc., a for-profit subsidiary, does not have any employees or assets. The company and its two-subsidiaries filed for chapter 11 protection on Nov. 15, 2006 (Bankr. S.D.N.Y. Case Nos. 06-44387 through 06-44389). Timothy W. Walsh, Esq., and Jeremy R. Johnson, Esq., at DLA Piper US LLP, represent the Debtors. Craig E. Freeman, Esq., and Martin G Bunin, Esq., at Alston & Bird LLP, represent the Official Committee of Unsecured Creditors. When the Debtors filed for protection from their creditors, they listed assets and debts between $1 million and $100 million. * Buccino & Associates Names Robert Sundius as Senior VP -------------------------------------------------------- Buccino & Associates Inc. has appointed Robert W. Sundius, Jr. as a senior vice president and managing director of the New York office. Bob has over 25 years experience as a corporate executive and business/financial advisor providing strategic direction, decision support and execution. During the last twelve years he has led restructurings, turnarounds and acquisition & divestiture transactions, and served as debtor and creditor advisor. He has significant experience leading, managing and interacting with boards of directors, investors and professional advisors. Bob was executive vice president and chief financial officer of Cornerstone Propane Partners LP, Bob led restructuring activities, finance/accounting operations, cash management, planning and analysis, tax reporting/compliance, risk management and corporate administration. He oversaw Cornerstone's legal matters and litigations including its response to the SEC investigation of its prior financial statements and related disclosures. Prior to Cornerstone, Bob was chief financial officer of Family Golf Centers Inc. Earlier in his career at The Thomson Corporation, Bob led strategic and acquisition initiatives. He also held positions in corporate development and finance at The Dun & Bradstreet Corporation. Bob began his career in public accounting serving a diverse client base including manufacturers, utilities, law firms, real estate partnerships and investment companies. Bob is a CPA, and has been awarded the CIRA and CMA designations. "We are very pleased to have attracted Bob to Buccino & Associates Inc.," Gerald P. Buccino, chairman & CEO of Buccino & Associates Inc., said. "Bob clearly has relevant experience as a practitioner and advisor in turnarounds, workouts and restructurings. Bob's expertise and experience will be invaluable to our clients on both the national and international level." About Buccino & Associates Headquartered in New York, Buccino & Associates Inc. -- http://www.buccinoassociates.com/--provides advisory services to enhance cash flow and position companies for long-term profitability. The company's services include strategic and financial assessment of business operations; turnaround consulting; financial advisory services to lenders, creditors and other economic stakeholders; crisis and interim management; valuation; insolvency and reorganization services; corporate restructuring; forensic analysis; litigation support and expert testimony. * Lawrence R. Plotkin Joins Chadbourne & Parke-NY as Partner ------------------------------------------------------------ Lawrence R. Plotkin has joined Chadbourne & Parke LLP as a partner in the real estate practice in New York. "Larry combines experience as a practicing lawyer with a keen business focus that will serve our clients well," Charles O'Neill,Chadbourne managing partner, said. "He knows the real estate landscape, both literally and figuratively, and is an outstanding addition to the Firm." Mr. Plotkin, 46, joins Chadbourne from Willkie Farr & Gallagher LLP in New York. Earlier in his career, Mr. Plotkin combined legal, real estate and other business roles at a consumer-products retailer with operations across the United States. He holds a B.A. in economics from the State University of New York at Albany and a J.D., cum laude, from Brooklyn Law School. Chadbourne's real estate lawyers handle financings, acquisitions, sales, leasing, construction and development, joint ventures, bankruptcy and loan- workout matters. The practice assists clients with all aspects of property ownership, including the negotiation of financing documents, construction contracts, architect's agreements, brokerage agreements, ground leases, option agreements and easements. About Chadbourne & Parke LLP Headquartered in New York City, Chadbourne & Parke LLP -- http://www.chadbourne.com/-- is a law firm that provides a full range of legal services, including mergers and acquisitions, securities, project finance, private funds, corporate finance, energy, communications and technology, commercial and products liability litigation, securities litigation and regulatory enforcement, special investigations and litigation, intellectual property, antitrust, domestic and international tax, insurance and reinsurance, environmental, real estate, bankruptcy and financial restructuring, employment law and ERISA, trusts and estates and government contract matters. Major geographical areas of concentration include Central and Eastern Europe, Russia and the CIS, and Latin America. The firm has offices in New York, Washington, DC, Los Angeles, Houston, Moscow, St. Petersburg, Warsaw (through a Polish partnership), Kyiv, Almaty, Tashkent, Beijing, and a multinational partnership, Chadbourne & Parke, in London. * Mayer Brown Launches Subprime Lending Response Team ----------------------------------------------------- Mayer Brown LLP has formed a Subprime Lending Response Team to help clients address the issues resulting from the continuing distress in the subprime lending market. Mayer Brown stated that the impact of the subprime lending markets is reverberating and regulatory scrutiny in the U.S. and Europe is increasing. Recognizing the nature of the problem, Mayer Brown has assembled an interdisciplinary team of lawyers from the company's offices in the U.S., the UK, and Germany whose practices include securitization, banking, real estate, securities, and litigation. The firm has class expertise with the securitization and collateralized debt obligation markets across multiple industries and national borders and its lawyers comprise one of the largest groups in the world in this area. The Subprime Lending Response Team will enhance the firm's recognized position as legal adviser in these markets by also offering dispute management and regulatory services to clients facing the increased risks of litigation and regulatory inquiry. "It's clear that the impact of foreclosures and defaults in the subprime lending market will present a variety of challenges," Dan Brown, Mayer Brown litigation partner, said. "That means participants in these volatile markets need advisers with insight into a wide range of related topics -- including securitization, government investigations, real estate, litigation and regulatory practices -- well as local expertise in the U.S. and internationally." "The organization of the interdisciplinary Subprime Lending Response Team represents Mayer Brown's continued commitment to serving its current and future clients with best in class service and expertise across all practice areas," Jon Van Gorp, Mayer Brown finance and securitization partner, said. "We are confident that we have brought together a team with expertise and depth of experience in these issues as strong as any in the legal marketplace," he added. "Our global platform and worldwide network of offices and affiliates enables us to provide clients with comprehensive advice and a strong, coordinated response to any challenges arising from the fallout in subprime lending," James D. Holzhauer, Mayer Brown's chairman, said. "Our global leadership in finance and securitization gives us the ideal platform to provide the broad counsel our clients need now." About Mayer Brown LLP Headquartered in Chicago, Illinois, Mayer Brown LLP -- www.mayerbrown.com/ -- is among the largest law firms in the world with more than 1,500 lawyers in seven U.S. cities (Charlotte, Chicago, Houston, Los Angeles, New York, Palo Alto and Washington), six European cities (Berlin, Brussels, Cologne, Frankfurt, London and Paris) and Hong Kong. Additionally, Mayer Brown is currently in the process of establishing its first South American office in Sao Paulo, Brazil. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Oct. 9-10, 2007 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION IWIRC Annual Fall Conference Orlando, Florida Contact: http://www.iwirc.org/ Oct. 10-13, 2007 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES 81st Annual National Conference of Bankruptcy Judges Contact: http://www.ncbj.org/ Oct. 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Oct. 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Winn Dixie Bankruptcy University Club, Jacksonville, Florida Contact: 561-882-1331 or http://www.turnaround.org/ Oct. 11, 2007 TURNAROUND MANAGEMENT ASSOCIATION Chuck Bauer - Client Satisfaction Dallas Country Club, Dallas, Texas Contact: http://www.turnaround.org/ Oct. 12, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Meeting Westin Buckhead, Atlanta, Georgia Contact: 678-795-8103 or http://www.turnaround.org/ Oct. 12, 2007 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION Presentation by George F. Will: The Political Argument Today Orlando, Florida Contact: http://www.ardent-services.com/ Oct. 12, 2007 AMERICAN BANKRUPTCY INSTITUTE ABI Educational Program at NCBJ Orlando World Marriott, Orlando, Florida Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 16-19, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Copley Place Boston, Massachussets Contact: 312-578-6900; http://www.turnaround.org/ Oct. 17, 2007 BEARD AUDIO CONFERENCES The Subprime Sector Meltdown: Legal Developments and Latest Opportunities Contact: 240-629-3300; http://www.beardaudioconferences.com/ Oct. 17, 2007 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS AIRA Presents Lifetime Achievement Awards to Charles C. Crumley and William G. Hays, Jr. Cherokee Town Club, Atlanta, Georgia Contact: http://www.airacira.org/ Oct. 21-24, 2007 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS Restructuring and Investing Conference Portman Ritz Carlton, Shanghai, China Contact: http://www.airacira.org/ Oct. 22-23, 2007 STRATEGIC RESEARCH INSTITUTE 9th Annual Distressed Debt - West Venetian Resort Hotel Casino, Las Vegas, Nevada Contact: http://www.almevents.com/ Oct. 23, 2007 BEARD AUDIO CONFERENCES Partnerships in Bankruptcy Contact: 240-629-3300; http://www.beardaudioconferences.com/ Oct. 24, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Event - TBA McCormick & Schmick's Fresh Seafood Restaurant, Las Vegas, Nevada Contact: 702-952-2480 or http://www.turnaround.org/ Oct. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION LI Turnaround Member Social Davenport Press, Mineola, New York Contact: 631-261-6296 or http://www.turnaround.org/ Oct. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION Capital Markets Case Study Seattle, Washington Contact: http://www.turnaround.org/ Oct. 25, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ Oct. 26, 2007 AMERICAN BANKRUPTCY INSTITUTE International Insolvency Symposium Hotel Adlon Kempinski, Berlin, Germany Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Monthly Luncheon, Carolinas Chapter - Topic TBA Sheraton Greensboro Hotel, Greensboro, North Carolina Contact: http://www.turnaround.org/ Oct. 29, 2007 FINANCIAL RESEARCH ASSOCIATES LLC 6th Annual Distressed Debt Summit The 3 West Club, New York, New York Contact: http://www.frallc.com/ Oct. 30, 2007 BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite M&A and Insolvency Proceedings Contact: 240-629-3300; http://www.beardaudioconferences.com/ Oct. 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon Centre Club, Tampa, Florida Contact: 561-882-1331; http://www.turnaround.org/ Oct. 30, 2007 TURNAROUND MANAGEMENT ASSOCIATION Crisis Communications With Employees, Vendors and Media Centre Club, Tampa, Florida Contact: http://www.turnaround.org/ Nov. 1, 2007 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS Claims Trading - Issues and Implications New York, New York Contact: http://www.airacira.org/ Nov. 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Event Carnelian Room, San Francisco, California Contact: 510-346-6000 ext 226 or http://www.turnaround.org/ Nov. 1, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Breakfast TBD, Hackensack, New Jersey Contact: 908-575-7333; http://www.turnaround.org/ Nov. 5, 2007 TURNAROUND MANAGEMENT ASSOCIATION 2007 Newsmaker Dinner with Jean Chretien Fairmont Royal York Hotel, Toronto, Ontario Contact: http://www.turnaround.org/ Nov. 7, 2007 TURNAROUND MANAGEMENT ASSOCIATION Lenders Forum Milleridge Cottage, Jericho, New York Contact: http://www.turnaround.org/ Nov. 12, 2007 AMERICAN BANKRUPTCY INSTITUTE Consumer Bankruptcy Conference Marriott, Troy, Michigan Contact: 1-703-739-0800; http://www.abiworld.org/ Nov. 13-14, 2007 TURNAROUND MANAGEMENT ASSOCIATION 6th Annual Distressed Debt Symposium Jumeirah Carlton Tower, London, United Kingdom Contact: http://www.turnaround.org/ Nov. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Holiday Mixer McCormick & Schmick's, Las Vegas, Nevada Contact: 702-952-2480 or http://www.turnaround.org/ Nov. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Aloha Airlines Story Bankers Club, Miami, Florida Contact: http://www.turnaround.org/ Nov. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Australia 4th Annual Conference and Gala Dinner Hilton, Sydney, Australia Contact: http://www.turnaround.org/ Nov. 14, 2007 TURNAROUND MANAGEMENT ASSOCIATION Dinner TBA, South Florida Contact: 561-882-1331 or http://www.turnaround.org/ Nov. 15, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Portland Holiday Party University Club, Portland, Oregon Contact: 206-223-5495; http://www.turnaround.org/ Nov. 16, 2007 TURNAROUND MANAGEMENT ASSOCIATION Meeting with Chapter President, Bruce Sim Westin Buckhead, Atlanta, Georgia Contact: http://www.turnaround.org/ Nov. 22, 2007 TURNAROUND MANAGEMENT ASSOCIATION Networking Mixer TBA, Vancouver, British Columbia Contact: 206-223-5495; http://www.turnaround.org/ Nov. 27, 2007 TURNAROUND MANAGEMENT ASSOCIATION Luncheon - Real Estate Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ November 26-27, 2006 BEARD GROUP AND RENAISSANCE AMERICAN MANAGEMENT Fourteenth Annual Conference on Distressed Investing Maximizing Profits in the Distressed Debt Market The Jumeirah Essex House, New York, NY Contact: 800-726-2524; 903-595-3800; http://beardconferences.com Nov. 29, 2007 INTERNATIONAL WOMEN'S INSOLVENCY & RESTRUCTURING CONFEDERATION Holiday Gala Yale Club, New York, New York Contact: http://www.iwirc.org/ Nov. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Special Speaker TBD, New Jersey Contact: 908-575-7333; http://www.turnaround.org/ Nov. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION Special Speaker Hilton, Sydney, Australia Contact: http://www.turnaround.org/ Nov. 29, 2007 TURNAROUND MANAGEMENT ASSOCIATION TMA Arizona Chapter Meeting Contact: http://www.turnaround.org/ Dec. 5, 2007 TURNAROUND MANAGEMENT ASSOCIATION Joint Holiday Networking Event with TMA/CFA TBA, Philadelphia, Pennsylvania Contact: 215-657-5551 or http://www.turnaround.org/ Dec. 6, 2007 TURNAROUND MANAGEMENT ASSOCIATION Seattle Holiday Party Athletic Club, Seattle, Washington Contact: 206-223-5495; http://www.turnaround.org/ Dec. 6-8, 2007 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Westin Mission Hills Resort, Rancho Mirage, California Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 10, 2007 TURNAROUND MANAGEMENT ASSOCIATION Holiday Party Guy Anthony's Restaurant, Merrick, New York Contact: 631-251-6296 or http://www.turnaround.org/ Dec. 13, 2007 TURNAROUND MANAGEMENT ASSOCIATION Holiday Extravaganza - TMA & CFA Georgia Aquarium, Atlanta, Georgia Contact: 678-795-8103 or http://www.turnaround.org/ Dec. 13, 2007 TURNAROUND MANAGEMENT ASSOCIATION Holiday Extravaganza - TMA & CFA Georgia Aquarium, Atlanta, Georgia Contact: 678-795-8103 or http://www.turnaround.org/ Dec. 19, 2007 TURNAROUND MANAGEMENT ASSOCIATION South Florida Dinner TBA, South Florida Contact: 561-882-1331; http://www.turnaround.org/ Jan. 10, 2008 TURNAROUND MANAGEMENT ASSOCIATION Luncheon University Club, Jacksonville, Florida Jan. 11, 2008 TURNAROUND MANAGEMENT ASSOCIATION Annual Lenders Panel Westin Buckhead, Atlanta, Georgia Contact: http://www.turnaround.org/ Feb. 7, 2008 TURNAROUND MANAGEMENT ASSOCIATION PowerPlay Philips Arena, Atlanta, Georgia Contact: 678-795-8103 or http://www.turnaround.org/ Feb. 7, 2008 TURNAROUND MANAGEMENT ASSOCIATION Breakfast Event Carnelian Room, San Francisco, California Contact: 510-346-6000 ext 226 or http://www.turnaround.org/ Feb. 14-16, 2008 AMERICAN BANKRUPTCY INSTITUTE 13th Annual Rocky Mountain Bankruptcy Conference Westin Tabor Center, Denver, Colorado Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 23-26, 2008 NORTON INSTITUTES ON BANKRUPTCY LAW Bankruptcy Litigation Seminar I Park City, Utah Contact: http://www.nortoninstitutes.org/ Feb. 26, 2008 TURNAROUND MANAGEMENT ASSOCIATION Retail Panel Citrus Club, Orlando, Florida Contact: http://www.turnaround.org/ Mar. 6-8, 2008 ALI-ABA Fundamentals of Bankruptcy Law Mandalay Bay Resort, Las Vegas, Nevada Contact: http://www.ali-aba.org/ Mar. 25-29, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference Ritz Carlton Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ Mar. 27-30, 2008 NORTON INSTITUTES ON BANKRUPTCY LAW Bankruptcy Litigation Seminar II Las Vegas, Nevada Contact: http://www.nortoninstitutes.org/ Apr. 3-6, 2008 AMERICAN BANKRUPTCY INSTITUTE 26th Annual Spring Meeting The Renaissance, Washington, District of Columbia Contact: http://www.abiworld.org/ Apr. 25-27, 2008 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Spring Seminar Eldorado Hotel & Spa, Santa Fe, New Mexico Contact: http://www.nabt.com/ May 1-2, 2008 AMERICAN BANKRUPTCY INSTITUTE Debt Symposium Hilton Garden Inn, Champagne/Urbana, Illinois Contact: 1-703-739-0800; http://www.abiworld.org/ June 4-7, 2008 ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS 24th Annual Bankruptcy & Restructuring Conference J.W. Marriott Spa and Resort, Las Vegas, Nevada Contact: http://www.airacira.org/ June 12-14, 2008 AMERICAN BANKRUPTCY INSTITUTE 15th Annual Central States Bankruptcy Workshop Grand Traverse Resort and Spa, Traverse City, Michigan Contact: http://www.abiworld.org/ June 19-21, 2008 ALI-ABA Partnerships, LLCs, and LLPs: Uniform Acts, Taxation, Drafting, Securities, and Bankruptcy Omni Hotel, San Francisco, California Contact: http://www.ali-aba.org/ June 26-29, 2008 NORTON INSTITUTES ON BANKRUPTCY LAW Western Mountains Bankruptcy Law Seminar Jackson Hole, Wyoming Contact: http://www.nortoninstitutes.org/ July 10-13, 2008 TURNAROUND MANAGEMENT ASSOCIATION 16th Annual Northeast Bankruptcy Conference Ocean Edge Resort Brewster, Massachussets Contact: http://www.turnaround.org/ July 31 - Aug. 2, 2008 AMERICAN BANKRUPTCY INSTITUTE 4th Annual Mid-Atlantic Bankruptcy Workshop Hyatt Regency Chesapeake Bay Cambridge, Maryland Contact: http://www.abiworld.org/ Aug. 16-19, 2008 AMERICAN BANKRUPTCY INSTITUTE 13th Annual Southeast Bankruptcy Workshop Ritz-Carlton, Amelia Island, Florida Contact: http://www.abiworld.org/ Aug. 20-24, 2008 NATIONAL ASSOCIATION OF BANKRUPTCY JUDGES NABT Convention Captain Cook, Anchorage, Alaska Contact: http://www.nabt.com/ Sept. 24-27, 2008 NATIONAL CONFERENCE OF BANKRUPTCY JUDGES National Conference of Bankruptcy Judges Scottsdale, Arizona Contact: http://www.ncbj.org/ Oct. 28-31, 2008 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott New Orleans, Louisiana Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2008 AMERICAN BANKRUPTCY INSTITUTE 20th Annual Winter Leadership Conference Westin La Paloma Resort & Spa Tucson, Arizona Contact: http://www.abiworld.org/ May 7-10, 2009 AMERICAN BANKRUPTCY INSTITUTE 27th Annual Spring Meeting Gaylord National Resort & Convention Center National Harbor, Maryland Contact: http://www.abiworld.org/ June 21-24, 2009 INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY & BANKRUPTCY PROFESSIONALS 8th International World Congress TBA Contact: http://www.insol.org/ Sept. 10-12, 2009 AMERICAN BANKRUPTCY INSTITUTE 17th Annual Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nevada Contact: http://www.abiworld.org/ Oct. 5-9, 2009 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Desert Ridge, Phoenix, Arizona Contact: 312-578-6900; http://www.turnaround.org/ Dec. 3-5, 2009 AMERICAN BANKRUPTCY INSTITUTE 21st Annual Winter Leadership Conference La Quinta Resort & Spa, La Quinta, California Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 4-8, 2010 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention JW Marriott Grande Lakes, Orlando, Florida Contact: http://www.turnaround.org/ BEARD AUDIO CONFERENCES 2006 BACPA Library Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com; http://researcharchives.com/t/s?20fa BEARD AUDIO CONFERENCES BAPCPA One Year On: Lessons Learned and Outlook Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Calpine's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Carve-Out Agreements for Unsecured Creditors Contact: 240-629-3300;http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changes to Cross-Border Insolvencies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Changing Roles & Responsibilities of Creditors' Committees Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES China's New Enterprise Bankruptcy Law Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Clash of the Titans -- Bankruptcy vs. IP Rights Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Coming Changes in Small Business Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Dana's Chapter 11 Filing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Deepening Insolvency – Widening Controversy: Current Risks, Latest Decisions Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Diagnosing Problems in Troubled Companies Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Claims Trading Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Market Opportunities Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Distressed Real Estate under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Employee Benefits and Executive Compensation under the New Code Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Equitable Subordination and Recharacterization Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Fundamentals of Corporate Bankruptcy and Restructuring Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Handling Complex Chapter 11 Restructuring Issues Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Healthcare Bankruptcy Reforms Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES High-Yield Opportunities in Distressed Investing Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Homestead Exemptions under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Hospitals in Crisis: The Insolvency Crisis Plaguing Hospitals Across the U.S. Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES IP Rights In Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES KERPs and Bonuses under BAPCPA Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Non-Traditional Lenders and the Impact of Loan-to-Own Strategies on the Restructuring Process Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Partnerships in Bankruptcy: Unwinding The Deal Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Privacy Rights, Protections & Pitfalls in Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Real Estate Bankruptcy Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Reverse Mergers—the New IPO? Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Second Lien Financings and Intercreditor Agreements Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Surviving the Digital Deluge: Best Practices in E-Discovery and Records Management for Bankruptcy Practitioners and Litigators Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Technology as a Competitive Advantage For Today's Legal Processes Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES The Subprime Sector Meltdown: Legal Developments and Latest Opportunities Contact: 240-629- 3300;http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Twenty-Day Claims Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Using Virtual Data Rooms to Expedite M&A and Insolvency Proceedings Contact: 240-629- 3300;http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES Validating Distressed Security Portfolios: Year-End Price Validation and Risk Assessment Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ BEARD AUDIO CONFERENCES When Tenants File -- A Landlord's BAPCPA Survival Guide Audio Conference Recording Contact: 240-629-3300; http://www.beardaudioconferences.com/ The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Marie Therese V. Profetana, Shimero R. Jainga, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Jason A. Nieva, Melanie C. Pador, Ludivino Q. Climaco, Jr., Loyda I. Nartatez, Tara Marie A. Martin, John Paul C. Canonigo, 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. *** End of Transmission ***