/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/071126.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, November 26, 2007, Vol. 11, No. 280 Headlines 1775 AQUA: Submits Schedules of Assets and Liabilities 1775 AQUA: U.S. Trustee Will Not Appoint Creditors Panel 1775 AQUA: Wants Court Approval for Scott Orth as Counsel ADVANCED MEDICAL: Names Richard Meier as President AFFILIATED COMPUTER: Inks $18.5 Million Deal with Idaho Medicaid ALERIS INTERNATIONAL: Selling US Zinc Business for $295 Million BELL CANADA: To Redeem $850 Million of Debt on December 28 BCE INC: Gets Requisite Tenders for Preferred Share Conversions BODISEN BIOTECH: Posts $2.9 Million Net Loss in Third Quarter BROTMAN MEDICAL: Committee Balks at CapSource's DIP Financing CABLE & WIRELESS: Excessive Executive Payout Angers Investors CATHOLIC CHURCH: Murphy Named as UCR in Davenport's Case CATHOLIC CHURCH: Murphy Selects AlixPartners as Financial Advisor CHANCELLOR GROUP: Sept. 30 Balance Sheet Upside-Down by $573,157 COWCAT ENTERPRISES: Voluntary Chapter 11 Case Summary DELTA AIR: Pardus Urges Stock-for-Stock Merger with UAL EARTH BIOFUELS: Sept. 30 Balance Sheet Upside-Down by $20.5 Mil. EXPRESS FINANCIAL: Case Summary & 40 Largest Unsecured Creditors FASHION HOUSE: Sept. 30 Balance Sheet Upside-Down by $16.1 Million FEDERAL-MOGUL: To Issue $305,236,000 in Senior Notes FEDERAL-MOGUL: Thornwood to Own 25% of Reorganized Debtors' Stock GLO-TEX INTERNATIONAL: Involuntary Chapter 11 Case Summary IONICA PLC: Plan Supervisors To Pay Dividend on November 30 JOAN FABRICS: Court Converts Bankruptcy Case to Chapter 7 JOHN FRANCIS QUINN: Chapter 15 Petition Summary JOYCE DON ASSOCIATES: Court Approves Wolff Hill as Attorney LAFAYETTE NEIGHBORHOOD: Wants Court Permission to Sell Four Lots LAFAYETTE NEIGHBORHOOD: Wants to Hire Kim Davis as Broker LAFAYETTE NEIGHBORHOOD: U.S. Trustee Forms Seven-Member Committee LEVITT AND SONS: Court Okays AP Services as Crisis Managers LEVITT AND SONS: Gets Court OK to Close On Pre-Bankr. Home Sales LEVITT AND SONS: Court Oks Return of Escrowed Homebuyers' Deposits LEVITZ FURNITURE: Alters Retention Request for Rodman & Renshaw LEVITZ FURNITURE: Section 341(a) Meeting Scheduled on January 8 LYONDELL CHEMICAL: Launches Cash Tender Offer for $4 Billion Notes LYONDELL CHEMICAL: Shareholders Approve Basell Merger Plan MAJESTIC STAR: Setp. 30 Balance Sheet Upside-Down by $157.4 Mil. MARSHALL HOLDINGS: Posts $711,208 Net Loss in Third Quarter MATTRESS USA OF VA: Case Summary & 20 Largest Unsecured Creditors MORRIS LUMBER: Case Summary & 20 Largest Unsecured Creditors MYSTIQUE ENERGY: Posts CDN$3.3 Mil. Net Loss in Third Quarter 2007 NETBANK INC: Court OKs GGG Inc. as Crisis & Restructuring Managers NETBANK INC: U.S. Trustee Appoints Six-Member Creditors Committee NEXTPHASE WIRELESS: Sept. 30 Balance Sheet Upside-Down by $3 Mil. PROVIDENCE SERVICE: Earns $3.2 Million in Quarter Ended Sept. 30 QUEBECOR WORLD: Moody's Puts B3 Corp. Family Rating Under Review SECURITY WITH: Scott Sutton Resigns as President and Director SECURITY WITH ADVANCED: Posts $6.1 Mil. Net Loss in Third Quarter SEYCHELLE ENV'L: Aug. 31 Balance Sheet Upside-Down by $316,506 SHAFFER & SON: Voluntary Chapter 11 Case Summary SIENA TECH: Sept. 30 Balance Sheet Upside-Down by $3.5 Million SPECIALTY ORIENT: Voluntary Chapter 11 Case Summary STANDARD DRILLING: Posts $9,674,651 Net Loss in Third Quarter TAL ENTERPRISES: Judge Paskay Dismisses Chapter 11 Case TEN GRAND: Case Summary & 13 Largest Unsecured Creditors TEXHOMA ENERGY: June 30 Balance Sheet Upside-Down by $3,122,566 TEXHOMA ENERGY: March 31 Balance Sheet Upside-Down by $3,115,823 THOMAS KICINSKI: Case Summary & 11 Largest Unsecured Creditors TOPPS MEAT: Liquidates Under Chapter 7 with New Jersey Court TRUEYOU.COM: Amper Politziner Expreses Going Concern Doubt UAL CORP: Pardus Urges Stock-for-Stock Merger with Delta VISION DEVELOPMENT: Can Access Cash Collateral from CORUS Bank VISION DEVELOPMENT: Court Approves Greenberg as Special Counsel WATERFORD WEDGWOOD: Cost-Cutting Measures to Affect 1,400 Jobs WESTBANK CHRISTIAN: Voluntary Chapter 11 Case Summary WILLIAM STREET: Case Summary & 18 Largest Unsecured Creditors * BOND PRICING: For the Week of November 19 - November 23, 2007 ********* 1775 AQUA: Submits Schedules of Assets and Liabilities ------------------------------------------------------ 1755 Aqua Vista II LLC submitted to the U.S. Bankruptcy Court for the Southern District of Florida its schedules of assets and liabilities, disclosing: Name of Schedule Assets Liabilities ---------------- ---------- ----------- A. Real Property $14,000,000 B. Personal Property C. Exempt Property D. Creditors Holding $4,520,000 Secured Claims E. Creditors Holding Unsecured Priority Claims F. Creditors Holding $1,620,958 Unsecured Non-Priority Claims ----------- ---------- TOTAL $14,000,000 $6,140,958 North Miami, Florida-based 1755 Aqua Vista II LLC owns and develops real estate in North Bay Village in Miami-Dade County, Florida. The Debtor filed for chapter 11 bankruptcy on Oct. 24, 2007 (Bankr. S.D. Fl. Case No. 07-19056). The Debtor's exclusive period to file a chapter 11 plan expires on Feb. 21, 2008. 1775 AQUA: U.S. Trustee Will Not Appoint Creditors Panel -------------------------------------------------------- The United States Trustee informed the U.S. Bankruptcy Court for the Southern District of Florida that until further notice, it will not appoint members to the Official Committee of Unsecured Creditors in the bankruptcy case of 1755 Aqua Vista II LLC. About 1755 Aqua Vista North Miami, Florida-based 1755 Aqua Vista II LLC owns and develops real estate in North Bay Village in Miami-Dade County, Florida. The Debtor filed for chapter 11 bankruptcy on Oct. 24, 2007 (Bankr. S.D. Fl. Case No. 07-19056). The Debtor's exclusive period to file a chapter 11 plan expires on Feb. 21, 2008. 1775 AQUA: Wants Court Approval for Scott Orth as Counsel --------------------------------------------------------- 1755 Aqua Vista II LLC asks the U.S. Bankruptcy Court for the Southern District of Florida for permission to employ the Law Offices of Scott Alan Orth, PA, as its counsel. Scott Orth will: a. advise the Debtor with respect to its powers and duties as debtors and the continued management of business operations; b. advise the Debtor with respect to its responsibilities in complying with the United States Trustee's operating guidelines and reporting requirements and with the rules of the Court; c. prepare motions, pleadings, orders, applications adversary proceedings, and other legal documents necessary in the administration of the case; d. protect the interest of the Debtor in all matters pending before the Court; and e. represent the Debtor in negotiations with its creditors in the preparation of sale papers and a chapter 11 plan. The Debtor has agreed to pay Scott Alan on an hourly basis: Professional Rate ------------ ---- Scott Orth, Esq. $325 John Penson, Esq. $265 Other attorneys and paralegals will render services to the Debtor as needed. The Debtor relates to the Court that its principal has paid Scott Orth a $10,000 retainer. The the best of the Debtor's knowledge, Scott Orth does not represent any interest adverse to it or its estate. The firm can be reached at: Scott Alan Orth, Esq. The Law Offices of Scott Alan Orth, PA 9999 Northeast, 2 Avenue #204 Miami Shores, FL 33138 Tel: (305) 757-3300 About 1755 Aqua Vista North Miami, Florida-based 1755 Aqua Vista II LLC owns and develops real estate in North Bay Village in Miami-Dade County, Florida. The Debtor filed for chapter 11 bankruptcy on Oct. 24, 2007 (Bankr. S.D. Fl. Case No. 07-19056). The Debtor's exclusive period to file a chapter 11 plan expires on Feb. 21, 2008. ADVANCED MEDICAL: Names Richard Meier as President -------------------------------------------------- Advanced Medical Optics Inc. has appointed Richard (Randy) A. Meier as its president. He retains his existing chief operating officer title and responsibilities, which include leadership of the company's eye care and cataract/implant businesses, global customer services and manufacturing operations. James V. Mazzo who remains the company's chairman and chief executive officer previously held the title of president at AMO. "Randy has assumed increasingly broad leadership roles since our spin-off in 2002 and, over that time, has played an integral role in the growth and development of our company," said Mr. Mazzo. "I am confident in his ability to serve as president, continuing to work closely with me and the AMO leadership team to execute our strategy and deliver on our operational and financial goals." Mr. Meier joined AMO in 2002 as corporate vice president and chief financial officer. He subsequently held various positions, including executive vice president, operations and president, eye care business. In February 2007, he was named chief operating officer and chief financial officer, a position he held until October 2007, when Michael Lambert, 45, joined the company as chief financial officer. Headquartered in Santa Ana, California, Advanced Medical Optics -- http://www.amo-inc.com/-- develops, manufactures and markets ophthalmic surgical and contact lens care products. Sales for the twelve months ended June 24, 2005 were approximately US$921 million. The company has operations in Germany, Japan, Ireland, Puerto Rico and Brazil. * * * As reported in the Troubled Company Reporter on Oct. 12, 2007, Moody's Investors Service downgraded Advanced Medical Optics, Inc.'s Corporate Family Rating and Probability of Default Rating to B2 from B1. The rating outlook was revised to stable. These rating actions conclude the review process for possible downgrade, which began on May 29, 2007. AFFILIATED COMPUTER: Inks $18.5 Million Deal with Idaho Medicaid ---------------------------------------------------------------- Affiliated Computer Services, Inc. disclosed a contract with the Idaho Department of Health and Welfare to provide pharmacy benefits management services for its Medicaid program. The contract has a length of up to 10 years and a total value of $18.5 million, if a three-year option is exercised. This contract extends a relationship that originated in 2002, when Affiliated Computer first implemented SmartPA(R), an automated prior authorization solution. The company will provide several pharmacy benefits management solutions, including pharmacy claims processing, automated prior authorizations using SmartPA, help desk support, Prospective Drug Utilization Review, Retrospective Drug Utilization Review, federal and supplemental drug rebate administration using the company's Drug Rebate Analysis and Management System, and reporting using CyberFormance(TM). "We are pleased to have the opportunity to expand and continue our successful pharmacy benefits management partnership with the Department of Health and Welfare," said Government Healthcare Solutions senior vice president and managing director, Christopher T. Deelsnyder. "This partnership demonstrates that we work closely with our clients to help ensure the success of their vision for providing patients with the best care possible through innovative clinical and technology solutions." About Affiliated Computer Services Headquartered in Dallas, Affiliated Computer Services Inc. (NYSE: ACS) -- http://www.AffiliatedComputer-inc.com/-- provides business process outsourcing and information technology solutions to world-class commercial and government clients. The company has more than 58,000 employees supporting client operations in nearly 100 countries. The company has global operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland, and Singapore. * * * As reported in the Troubled Company Reporter on Nov. 6, 2007, Standard & Poor's Ratings Services kept its 'BB' corporate credit and senior secured ratings on Dallas-based Affiliated Computer Services Inc. on CreditWatch with negative implications, where they were placed on March 20, 2007. ALERIS INTERNATIONAL: Selling US Zinc Business for $295 Million --------------------------------------------------------------- Aleris International, Inc., has entered into a definitive agreement to sell its Zinc business, which operates under the name US Zinc, to affiliates of Votorantim Metais Ltda. for $295 million with certain adjustments for working capital and other items. Closing is subject to regulatory approvals and customary closing conditions. "The sale of US Zinc will allow Aleris to focus on our core Aluminum business," Aleris's Chairperson and Chief Executive Officer, Steven J. Demetriou said. "We plan to use the net sale proceeds to reduce leverage. I would like to thank the US Zinc team for their significant contributions to Aleris." US Zinc recycles zinc metal for use in the manufacture of galvanized steel and produces value-added zinc products, primarily zinc oxide and zinc dust, which are used in the vulcanization of rubber products, the production of corrosion-resistant paint and in other specialty chemical applications. US Zinc operates six zinc facilities in the United States and a newly built zinc oxide facility located outside of Shanghai, China. About Aleris Headquartered in Beachwood, Ohio, Aleris International Inc. (NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled aluminum products and offers aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The company operates 42 production facilities in the United States, Brazil, Germany, Mexico and Wales, and employs approximately 4,200 employees. * * * As reported in the Troubled Company Reporter on Sept. 21, 2007, Standard & Poor's Ratings Services revised its outlook on Aleris International Inc. to negative from stable. At the same time S&P affirmed its 'B+' corporate credit rating and the other ratings on the company. Concurrently, S&P assigned a 'B-' rating to the company's recent $105 million 9% senior notes due 2014, which are an add-on to the company's existing $600 million 9% senior notes due 2014. BELL CANADA: To Redeem $850 Million of Debt on December 28 ---------------------------------------------------------- Bell Canada, a wholly owned subsidiary of BCE Inc., will redeem, prior to maturity, $850 million of debt on Dec. 28, 2007, as it is advantageous for the company to redeem debt that would otherwise be maturing over the next six months. This redemption will include all of Bell Canada's outstanding $700 million principal amount of 6.25% Series M-10 MTN Debentures due Jan. 18, 2008, and all of Bell Mobility Inc.'s outstanding $150 million principal amount of 6.55% Series F Senior Unsecured Debentures due June 2, 2008. The Series M-10 Debentures will be redeemed at a price equal to $1,000.901 per $1,000 of principal amount of debentures plus $27.911 for accrued and unpaid interest to the date of redemption. The Series F Debentures will be redeemed at a price to be determined in accordance with their terms and conditions as calculated on Nov. 28, 2007. Registered holders of Series M-10 Debentures and Series F Debentures will be sent notices providing the respective details of these redemptions, including where to present their debentures for payment. Headquartered in Montreal, Bell Canada -- http://www.bell.ca/-- is a communications company, providing consumers with solutions to all their communications needs, including telephone services, wireless communications, high-speed Internet, digital television and voice over IP. Bell also offers integrated information and communications technology services to businesses and governments, and is the Virtual Chief Information Officer to small and medium businesses. Bell is proud to be a Premier National Partner and the exclusive Communications Partner to the Vancouver 2010 Olympic and Paralympic Winter Games. Bell is wholly owned by BCE Inc. (TSX/NYSE: BCE). * * * As reported in the Troubled Company Reporter on Sept. 26, 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit ratings on BCE Inc. and wholly owned subsidiary Bell Canada to 'BB-' from 'A-'. BCE INC: Gets Requisite Tenders for Preferred Share Conversions --------------------------------------------------------------- BCE Inc. disclosed that 6,991,775 of its 8,852,620 Cumulative Redeemable First Preferred Shares, Series Z have been tendered for conversion, on a one-for-one basis, into Cumulative Redeemable First Preferred Shares, Series Y. In addition, 12,825 of its 1,147,380 Series Y Preferred Shares have been tendered for conversion, on a one-for-one basis, into Series Z Preferred Shares. Consequently, on Dec. 1, 2007, BCE will have 8,126,330 Series Y Preferred shares and 1,873,670 Series Z Preferred shares issued and outstanding. The Series Y Preferred Shares and the Series Z Preferred Shares will continue to be listed on the Toronto Stock Exchange under the symbols BCE.PR.Y and BCE.PR.Z respectively. The Series Y Preferred Shares will pay a monthly floating adjustable cash dividend for the five-year period beginning on Dec. 1, 2007, as and when declared by the Board of Directors of BCE. The Series Z Preferred Shares will pay on a quarterly basis, for the five-year period beginning on Dec. 1, 2007, as and when declared by the Board of Directors of BCE, a fixed dividend based on an annual dividend rate of 4.331%. Under and subject to the terms and conditions of a definitive agreement entered into by BCE Inc. in connection with its acquisition by an investor group led by Teachers' Private Capital, the private investment arm of the Ontario Teachers' Pension Plan, Providence Equity Partners Inc. and Madison Dearborn Partners, LLC, the purchaser has agreed to purchase all outstanding Series Y Preferred Shares for a price of $25.50 per share, together with accrued but unpaid dividends to the Effective Date. The purchaser has also agreed, on and subject to the terms and conditions of the Definitive Agreement, to purchase all outstanding Series Z Preferred Shares for a price of $25.25 per share, together with accrued but unpaid dividends to the Effective Date. The Board of BCE Inc. has received opinions as to the fairness, from a financial point of view, of the consideration to be paid for the preferred shares from BCE Inc.'s financial advisors. Headquartered in Montreal, Quebec, BCE Inc. (TSX/NYSE: BCE) -- http://www.bce.ca/-- is a communications company, providing comprehensive and innovative suite of communication services to residential and business customers in Canada. Under the Bell brand, the company's services include local, long distance and wireless phone services, high-speed and wireless Internet access, IP-broadband services, information and communications technology services (or value-added services) and direct-to-home satellite and VDSL television services. Other BCE holdings include Telesat Canada and an interest in CTVglobemedia. * * * As reported in the Troubled Company Reporter on Sept. 26, 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit ratings on BCE Inc. and wholly owned subsidiary Bell Canada to 'BB-' from 'A-'. BODISEN BIOTECH: Posts $2.9 Million Net Loss in Third Quarter ------------------------------------------------------------- Bodisen Biotech Inc. reported a net loss of $2.9 million on net revenue of $2.3 million for the third quarter ended Sept. 30, 2007, compared with net income of $3.2 million on net revenue of $12.7 million in the same period in 2006. At Sept. 30, 2007, the company's consolidated balance sheet showed $77.4 million in total assets, $1.1 million in total liabilities, and $76.3 millionin total stockholders' equity. The significant decrease in revenue was due to the much smaller customer base in the three months ended Sept. 30, 2007, as compared to Sept. 30, 2006, as a result of the loss of customers following the company's delisting from the American Stock Exchange, as well as, to a lesser extent, a storm and drought, which affected crop plantings in the three-month period and decreased the use of fertilizers. Net operating expenses increased to $3.5 million for the three months ended Sept. 30, 2007, from $1.7 million for the three months ended Sept. 30, 2006. The significant increase is due to a loss of approximately $1.7 million due to storm damage in August 2007. Excluding the effects of the storm damage, operating expenses increased slightly, primarily due to increased labor costs. The company had total non-operating expense of $557,842 for the three months ended Sept. 30, 2007, compared to total non-operating income of $28,817 for the three months ended Sept. 30, 2006. Other expense amounted to $639,729 for the three months ended Sept. 30, 2007, compared to $31,771 for three months ended Sept. 30, 2006. The increase is primarily the result of a foreign currency transaction loss. Going Concern Doubt As reported in the Troubled Company Reporter on May 8, 2007, Kabani & Company Inc., in Los Angeles, expressed substantial doubt about Bodisen Biotech Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to certain lawsuits filed by investors against the company and the company being subject to potential claims from certain investors who have a right to receive the company's shares. Lawsuits filed by Shareholders In late 2006, various shareholders of the company filed eight purported class actions in the U.S. District Court for the Southern District of New York against the company and certain of its officers and directors, asserting claims under the federal securities laws. The complaints contain general and non-specific allegations about prior financial disclosures and its internal controls and a prior, now-terminated relationship with a financial advisor. The eight actions are Stephanie Tabor vs. Bodisen Inc., et al., Case No. 06-13220 (filed November 2006), Fraser Laschinger vs. Bodisen Inc., et al., Case No. 06-13254 (filed November 2006), Anthony DeSantis vs. Bodisen Inc., et. al., Case No. 06-13454 (filed November 2006), Yuchen Zhou vs. Bodisen Inc., et. al., Case No. 06-13567 (filed November 2006), William E. Cowley vs. Bodisen Inc., et. al., Case No. 06-13739 (filed December 2006), Ronald Stubblefield vs. Bodisen Inc., et. al., Case No. 06-14449 (filed December 2006), Adam Cohen vs. Bodisen Inc., et. al., Case No. 06- 15179 (filed December 2006) and Lawrence M. Cohen vs. Bodisen Inc., et. al., Case No. 06-15399 (filed December 2006). The court has consolidated each of the actions into a single proceeding. The time for the company to respond formally to these lawsuits has not come and thus, the company has not done so. The complaints do not specify an amount of damages that plaintiffs seek. About Bodisen Biotech Headquartered in Shaanxi province, China, Bodisen Biotech Inc. (Other OTC: BBCZ.PK) -- http://www.bodisen.com/-- is a Delaware corporation which manufactures liquid and organic compound fertilizers, pesticides, insecticides and agricultural raw materials certified by the Petroleum Chemical Industry Administrative office of China, Shaanxi provincial government and Chinese government. BROTMAN MEDICAL: Committee Balks at CapSource's DIP Financing ------------------------------------------------------------- The Official Committee of Unsecured Creditors ask the United States Bankruptcy Court for the Central District of California to deny Brotman Medical Center Inc. access to CapSource Finance LLC's postpetion financing. In its objection, the Committee argued that the financial covenants contained in the DIP agreement the Debtor entered into with CapitalSource could create an undue risk of default. The Committee points out, among others, that the permitted variance should be 10% rather than 5% as set forth in the agreement, which will provide the Debtor opportunity to comply. The Committee said that CapSource seeks to deny the Debtor's unsecured creditors and the estates basic bankruptcy rights to which both are entitled. As a result, CapSource obtained advantage at the expense of the unsecured creditors, according to the Committee. The Committee listed provisions prejudicial to unsecured creditors and the estate, among others: a) fire sale process ensuring generation of less than the maximum value; b) waiver of the estate's rights to seek use of cash collateral if CapSource ceases to fund; c) abbreviated period during which the Committee may investigate and challenge CapSource's prepetiton claims and liens; d) automatic relief from stay upon default with no hearing or further Court order; and e) waiver of the estate's right to contest any demand made by CapSource in connection with the DIP financing. As reported in the Troubled Company Reporter on Nov. 8, 2007 the Debtor obtained authority, on an interim basis, from the Court to access up to $19,875,000 in postpetition financing from CapitalSource Finance LLC. The Debtor told the Court that before the bankruptcy filing CapitalSource made certain loans, revolving credit and other financial accomodations available to the Debtor. The DIP financing facility was designed to permit the hospital to fund its working capital needs during the chapter 11 case, including obligations to its employees, trade vendors, suppliers and service providers. The Debtor granted in favor of the DIP lender security interest and liens and superiority claims status pursuant to Section 364 of the Bankruptcy Code, as adequate protection. In addition, the DIP lender will be entitled to receive adequate protection payments equal to a rate of prime plus 5.5% per annum on the outstanding amount due under the credit facility. The Court will convene a hearing on Nov. 28, 2007, at 10:00 a.m., to consider final approval of the Committee's request. Headquartered in Culver City, California, Brotman Medical Center Inc. -- http://www.brotmanmedicalcenter.com/-- provides range of inpatient and outpatient services, as well as rehabilitation, psychiatric care and chemical dependency. The company filed for Chapter 11 protection on Oct. 25, 2007 (Bankr. C.D. Calif. Case No. 07-19705). The Debtor has selected Kurtzman Carson Consultants LLC as its claims and noticing agent. Thomas E. Patterson, Esq., David A. Fidler, Esq., Stacia A. Neeley, Esq., and Courtney E. Pozmantier, Esq., at Klee, Tuchin, Bogdanoff & Stern LLP, represent the Debtor. The Official Committee of Unsecured Creditors has selected Benjamin S. Seigel, Esq., and Paul S. Arrow, Esq., at Buchalter Nemer, as its counsel. When the Debtor filed for protection against its creditors, it listed assets and debts between $1 million and $100 million. The Debtor's exclusive period to file a chapter 11 plan expires on Feb. 22, 2008. CABLE & WIRELESS: Excessive Executive Payout Angers Investors ------------------------------------------------------------- Cable & Wireless plc is facing yet another dispute with investors and unions over excessive executive rewards following a management shake-up, the Times reports. On Nov. 13, 2007, C&W implemented changes to the management of its International business in preparation for driving the next phase of its value creation. Harris Jones is to step down as chief executive of International and as a director, and leave the business towards the end of 2007 once handover is complete. As disclosed, Mr. Jones will receive his contractual entitlement on leaving, including GBP4.3 million for his pro-rated share in the Long Term Incentive Plan having delivered value creation on behalf of shareholders from International of over GBP1 billion since he joined in November 2004, of which three quarters of a billion has been created since the commencement of the LTIP on April 1, 2006. There will be no additional charge to shareholders for the LTIP regarding this management change as there is a finite pool of units in the plan. However, according to investors, Mr. Jones' departure came amid a weakening performance in the company's international division, the Times relates. John Pluthero is to become executive chairman of International with immediate effect, while continuing his similar role for Europe, Asia & US. Mr. Pluthero will receive 50% of Mr. Jones' LTIP units for the remaining life of the LTIP after deduction of the LTIP payment above to Mr. Jones. Peter Montagnon, the Association of British Insurers' director of investment affairs, told the Times it would go over the latest revisions of the C&W's remuneration scheme, which he describes as "quite unusual". At its Annual General Meeting on July 20, 2007, C&W recommended the removal of the GBP20 million cap on the amount that can be received by an individual within the LTIP, which angered investors, Elizabeth Judge writes for the Times. Headquartered in London, England, Cable & Wireless Plc -- http://www.cw.com/new/-- provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and Internet services. The company has operations are in the United Kingdom, India, China, the Cayman Islands and the Middle East. * * * In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Telecommunications, Media and technology sector, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for Cable & Wireless Plc. Moody's also assigned a Ba3 Probability-of-Default rating to the company. CATHOLIC CHURCH: Murphy Named as UCR in Davenport's Case -------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Iowa approved the request of The Diocese of Davenport and the Official Committee of Unsecured Creditors and appointed Michael Murphy of Alix Partners LLP, as the Unknown Claims Representative. As reported in the Troubled Company Reporter on Oct. 9, 2007, the Debtor and the Committee continued their ongoing discussions regarding the structure of a joint and consensual plan of reorganization. According to Richard A. Davidson, Esq., at Lane & Waterman LLP, in Davenport, Iowa, one of the key elements of the plan is the appointment of an unknown claims representative to represent the interests of unknown claimants and minors, specifically individuals: a. under the age of 18 as of the bankruptcy filing; b. who recovered their repressed memories of sexual abuse after the bankruptcy filing; c. who had not, as of the Petition Date, discovered both the injury and the causal relationship between the injury and the sexual abuse; and d. whose mental illness -- including but not necessarily limited to, depression, post-traumatic stress disorder, and anxiety -- tolled the statute of limitations applicable under Iowa law for bringing a claim of sexual abuse. The Diocese believes that the claimants in the four categories hold current claims by virtue of past acts of abuse, even though the claims may be unknown as of the present time. Thus, the Debtor proposes that the individual appointed be called an "Unknown Claims Representative" and that those persons, if any, holding the claims be referred to as "Unknown Claimants". "It is necessary for the Diocese to be able to confirm a plan of reorganization that deals with current claims (disclosed or not), and any claims that might legitimately arise in the future based on the prepetition conduct of the Debtor," Mr. Davidson told Judge Jackwig. It is necessary that all constituencies who assert or might assert claims against the Diocese arising out of sexual abuse by clergy or other workers associated with the Diocese have an opportunity to be heard in the Reorganization Case, he added. Mr. Davidson noted that the Diocese and the Committee recognize that the appointment of an Unknown Claims Representative is akin to the appointment of another committee to represent the interests of persons holding Tort Claims. However, the Diocese and the Committee do not expect that the Unknown Claims Representative will materially increase the administrative cost of the estate, Mr. Davidson said. Instead, the Diocese expects that the parties will work cooperatively where the interests of their clients are similar, to avoid unnecessary and unreasonable duplication of efforts and to preserve assets of the estate. The Diocese has a very limited set of resources upon which it can draw to satisfy the present and unknown claims resulting from the sexual abuse by clergy and others in the Diocese, Mr. Davidson explained. The main source of recovery for all creditors is from the insurance carriers. For the process to work, the insurance carriers must accept their liability for the claims and an Unknown Claims Representative must be appointed to represent the interests of the Unknown Tort Claimants, Mr. Davidson maintained. About Diocese of Davenport The Diocese of Davenport in Iowa filed for chapter 11 protection (Bankr. S.D. Ia. Case No. 06-02229) on October 10, 2006. Richard A. Davidson, Esq., at Lane & Waterman LLP, represents the Davenport Diocese in its restructuring efforts. Hamid R. Rafatjoo, Esq., and Gillian M. Brown, Esq., of Pachulski Stang Zhiel Young Jones & Weintraub LLP represent the Official Committee of Unsecured Creditors. In its schedules of assets and liabilities, the Davenport Diocese reported $4,492,809 in assets and $1,650,439 in liabilities. The Debtor was unable to file a Chapter 11 Plan of Reorganization when its exclusive plan-filing period expired on Nov. 16, 2007. (Catholic Church Bankruptcy News, Issue No. 108; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CATHOLIC CHURCH: Murphy Selects AlixPartners as Financial Advisor ----------------------------------------------------------------- Michael Murphy, the Unknown Claims Representative in the Chapter 11 case of The Diocese of Davenport, obtained authority from the U.S. Bankruptcy Court for the Southern District of Iowa to retain AlixPartners, LLC, s his financial advisors in performing his duties as FCR, nunc pro tunc to Aug. 28, 2007 AlixPartners has been retained by the Official Committee of Unsecured Creditors as its Internet Web site administrator, and as claims agent for the Diocese. Mr. Murphy informs the Court that AlixPartners is nationally recognized in providing financial advisory and consultative services in restructurings and reorganizations on behalf of debtors, creditors, and special interest parties throughout the United States. He says that its experience in bankruptcy makes it particularly qualified to act as advisors to the FCR. As financial advisors, AlixPartners will: -- prepare an estimation of future claims while reviewing historical patterns and recent developments in law and the claims environment of other Chapter 11 cases; -- determine the amount of future claims liability and confirm the propriety of future settlements process by validating the Diocese's financial ability to meet future obligations, as well as underlying process, like funding and annuity; -- identify and address impact of important qualitative factors, including impact of current and prospective state laws and the Bankruptcy Code, as well as recent developments in other similar Chapter 11 cases; -- confirm abuse reports and abuse claims including date- ranges, ages of individuals involved, prior and pending settlements, current claim status and other critical factors; and -- render other advice and services as required by Mr. Murphy. AlixPartners will be paid an hourly rate of $350, and will be reimbursed for its expenses according to its customary reimbursement policies. AlixPartners will only bill the bankruptcy estate for travel expenses and will not bill for its non-working travel time. Mr. Murphy, as managing director of AlixPartners, assures the Court that the firm is a "disinterested person" under applicable sections of the Bankruptcy Code. About Diocese of Davenport The Diocese of Davenport in Iowa filed for chapter 11 protection (Bankr. S.D. Ia. Case No. 06-02229) on October 10, 2006. Richard A. Davidson, Esq., at Lane & Waterman LLP, represents the Davenport Diocese in its restructuring efforts. Hamid R. Rafatjoo, Esq., and Gillian M. Brown, Esq., of Pachulski Stang Zhiel Young Jones & Weintraub LLP represent the Official Committee of Unsecured Creditors. In its schedules of assets and liabilities, the Davenport Diocese reported $4,492,809 in assets and $1,650,439 in liabilities. The Debtor was unable to file a Chapter 11 Plan of Reorganization when its exclusive plan-filing period expired on Nov. 16, 2007. (Catholic Church Bankruptcy News, Issue No. 108; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CHANCELLOR GROUP: Sept. 30 Balance Sheet Upside-Down by $573,157 ---------------------------------------------------------------- Chancellor Group Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $5,698,702 in total assets and $6,271,859 in total liabilities, resulting in a $573,157 total shareholders' deficit. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $313,185 in total current assets available to pay $863,515 in total current liabilities. The company reported a net loss of $3,752 on oil and natural gas sales of $1,058,486 for the third quarter ended Sept. 30, 2007, compared with a net loss of $17,612 on $-0- of revenues for the same period last year. The company had no production operations in calendar year 2006. Oil production operations began April 16, 2007. During the three month period ending Sept. 30, 2007, the company produced and sold 9,131 barrels of oil and produced and sold 23,689 mcf gas, generating $1,048,032 revenues after royalties, with a one month lag in receipt of revenues for the prior months sales. Start up expenditures, included debt origination expenditures, and the required prepaid hedge were $251,456. The company had 84 wells actually producing oil and gas on April 16 and restored an additional 82 wells by September 30. On Oct. 30, 2007, due to notices of default received from Western National Bank and CapWest Resources Inc., the company filed a bankruptcy petition under Chapter 11 of the United States Bankruptcy Code, and the company's operating subsidiaries, Gryphon Production Company LLC and Gryphon Field Services LLC, filed bankruptcy petitions under Chapter 11 of the Code on Oct. 29, and Oct. 30, 2007, respectively. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?25aa About Chancellor Group Headquartered in Pampa, Texas, Chancellor Group Inc. (PNK: CHAG.PK) -- http://www.thechancellorgroup.net/-- is in the business of acquisition, exploration, and development of natural gas and oil properties. The company and two of its debtor- affiliates filed for Chapter 11 protection on Oct. 30, 2007 (Bankr. N.D.Tex. lead Case No. 07-20512). Bill Kinkead, Esq. represents the Debtors in their restructuring efforts. When the Debtors filed for protection against its creditors, they listed total assets of $5,649,018 and total debts of $6,228,336 COWCAT ENTERPRISES: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Cowcat Enterprises, Inc. 555 Southwest 148th Avenue Fort Lauderdale, FL 33325 Bankruptcy Case No.: 07-20282 Chapter 11 Petition Date: November 21, 2007 Court: Southern District of Florida (Fort Lauderdale) Judge: Raymond B Ray Debtor's Counsel: Edward J. Peterson III, Esq. Stichter, Riedel, Blain & Prosser, P.A. 110 East Madison Street, Suite 200 Tampa, FL 33602 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. DELTA AIR: Pardus Urges Stock-for-Stock Merger with UAL ------------------------------------------------------- Pardus Capital Management LP, a New York hedge fund with more than $3,000,000,000 in assets, urged United Airlines and Delta Air Lines to merge next year in a stock-for-stock transaction, according to reports. The Chicago Tribune says former Continental Airlines Inc. CEO Gordon Bethune, an adviser to Pardus, led the 1 1/2-hour presentation for Delta and United's major shareholders. The meeting was hosted by Merrill Lynch & Co. According to The Wall Street Journal, Pardus, which purportedly owns 5,600,000 shares of UAL and 7,000,000 shares of Delta, said a combination of the No. 2 and No. 3 U.S. carriers by traffic, makes sense at a time when high fuel prices are threatening to wipe out U.S. carriers' newfound profitability. Combining United and Delta would create a global network that would be favored by business travelers and save about $585,000,000 a year by 2012, Pardus added, reports Bloomberg News. This is slightly less than the carriers' combined projected earnings of $629,000,000, says Chicago Business News. A United-Delta merger ideal also would steer more Delta passengers onto United's Pacific routes and more United passengers onto Delta's Latin American destinations, Chicago Business notes. "We believe it is imperative that you seek to enter into a merger transaction with another carrier given the rapid rise in fuel prices and the increased risk to the business as a stand-alone entity," Pardus President Karim Samii and Shane Larson, a principal, told Delta in a letter, reports Bloomberg. Pardus apparently studied mergers involving Delta and three other carriers before recommending United as "the most attractive and practical combination," Bloomberg adds. No Merger Talks "We appreciate receiving Pardus' views on the best course for Delta's future," Delta Air Lines CEO Richard Anderson said in a statement. "We have been consistent in our public statements that Delta believes that the right consolidation transaction could generate significant value for our shareholders and employees and that strategic options should be evaluated. With oil at over $90 a barrel, this analysis takes on a heightened importance as we factor those prices into our long-term planning process." However, Mr. Anderson denied reports ran by The Associated Press that it engaged in merger talks with United Airlines in early November. The AP, in its report, said, part of the United and Delta merger talks was a plan to keep the United name and corporate headquarters in Chicago. "There have been no talks with United regarding any type of consolidation transaction and there are no such ongoing discussions," Mr. Anderson said. "Delta will not speculate on possible airline consolidation and has reiterated its position on the issue." United Spokeswoman Jean Medina said, "We do not respond to wholly inaccurate statements made by people who claim to have knowledge when they clearly do not," reports Bloomberg. Moreover, the United Master Executive Council has established that there are no such talks between the two carriers, said Captain Mark Bathurst, Chairman of the United Master Executive Council. "The United pilots have made a significant investment in the future of our airline and have made it abundantly clear to management that we will be opposed to any transaction that does not fully recognize our sacrifices and contributions," said Captain Bathurst. "We will protect the interests and the future of United pilots. All interested parties should understand that any plans to merge or consolidate with Delta or any other carrier will not be met with a rubber stamp from this pilot group. "We also remind management -- and Wall Street -- that it is the pilots and other employees who have suffered under this management group. Interested parties need to recognize that the true assets of this corporation are the pilots and other employees and we will not sacrifice again to facilitate consolidation," Captain Bathurst added. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. At Sept. 30, 2007, the company's balance sheet showed total assets of $25,608,000,000 and total liabilities of $22,968,000,000. About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. As of Sept. 30, 2007, the company's balance sheet showed total assets of $32.7 billion and total liabilities of $23 billion, resulting in a US$9.7 billion stockholders' equity. At Dec. 31, 2006, deficit was $13.5 billion. * * * As reported in the Troubled Company Reporter Oct. 18, 2007, Standard & Poor's Ratings Services affirmed its ratings on Delta Air Lines Inc. (B/Positive/--) and revised the rating outlook to positive from stable. The outlook revision is based on continued strong earnings, cash flow generation, and debt reduction. EARTH BIOFUELS: Sept. 30 Balance Sheet Upside-Down by $20.5 Mil. ---------------------------------------------------------------- Earth Biofuels Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $87.2 million in total assets and $107.7 million in total liabilities, resulting in a $20.5 million total stockholders' deficit. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $7.4 million in total current assets available to pay $107.7 million in total current liabilities. The company reported a net loss of $35.2 million on sales revenue of $6.5 million for the third quarter ended Sept. 30, 2007, compared with a net loss of $15.7 million on sales revenue of $16.6 million in the same period last year. The decrease in total revenue is primarily the result of decreased sales of biodiesel. Of the net loss for the three months ended Sept. 30, 2007, approximately $6.6 million related to losses on investments deemed impaired, and approximately $27.3 million related to interest expense on short term convertible debts and long term debts. A gain totaling $22.8 million was recorded in 2006 relating to convertible debts and securities. Compensation for three months ended Sept. 30, 2007, decreased approximately $25.3 million and related primarily to shares issued to consultants for employees and consulting services in 2006. Other selling, general and administrative expenses for three months ended Sept. 30, 2007, decreased approximately $4 million from approximately $5.8 million for the same period in 2006. Total revenue for the nine months ended Sept. 30, 2007, decreased $12.5 million, or 39%, to approximately $19.9 million from approximately $32.4 million in 2006. The company incurred net losses and negative cash flows from operations of approximately $94.0 million and $15.6 million, respectively, for the nine months ended Sept. 30, 2007. Of the net losses for the nine months ended Sept. 30, 2007, approximately $10.9 million related to the impairment of goodwill and intangibles, $15.5 million related to losses on investments deemed impaired, and accrued interest and penalties totaling $51.7 million. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?25b0 Liquidity and Capital Resources The company had approximately $63,000 in cash and cash equivalents at Sept. 30, 2007. Net cash used in operating activities was approximately $15.6 million for nine months ended Sept. 30, 2007, compared to net cash used in operating activities of approximately $18.7 million for the same period in 2006. The decrease in net cash flow used in operating activities relates to decreasing operating costs as a result of reducing production of biodiesal fuels due to current economic prices of feedstock. Net cash used in investing activities was approximately $6.7 million for nine months ended Sept. 30, 2007, compared to net cash used in investing activities of approximately $34.1 million for the same period in 2006. The decrease in net cash used in investing activities related to purchases of fixed assets of $6.8 million during 2006 for the Durant facility, and a decrease of $22.8 million related to investments and advances related to letters of intent and investments the company has entered into to own and operate biodiesel and ethanol facilities during 2006. Net cash provided by financing activities was $22.1 million for nine months ended Sept. 30, 2007, compared to net cash provided by financing activities of approximately $47.9 million for the same period in 2006. Cash flows provided by financing activities during nine months ended Sept. 30, 2007, relate primarily to new credit facilities totaling $30 million, less the repayment of prior debts of $9.4 million. Settlement Agreement with Creditors On Nov. 14, 2007, Earth Biofuels Inc. negotiated and executed a settlement agreement with the group of creditors who had petitioned for an involuntary bankruptcy against the company on July 11 of this year. The agreement requires the creditors to dismiss their petition of bankruptcy. Under the terms of the agreement, the company will grant certain security interests to the creditors and will execute a restructuring plan within 120 days. As reported in the Troubled Company Reporter on Nov. 22, 2007, Bill Rochelle of Bloomberg News reports that a hearing has been scheduled for Dec. 10, 2007. Going Concern Doubt As reported in the Troubled Company Reporter on May 24, 2007, Malone & Bailey P.C., in Houston, Texas, expressed substantial doubt about Earth Biofuels Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring operating losses and working capital deficit. About Earth Biofuels Headquartered in Dallas, Texas, Earth Biofuels Inc. -- http://www.earthbiofuels.com/-- (OTC BB: EBOF) engages in the production, distribution, and sale of renewable fuels, with a focus on biodiesel fuel, in the United States. The company produces pure biodiesel fuel (B100) through the utilization of vegetable oils, such as soy and canola oil as raw material. The company distributes petroleum/biodiesel blended fuel, such as B20 through wholesale distributors, truck stops, and fueling stations. Earth Biofuels also produces and markets liquefied natural gas. On July 11, 2007, five creditors with claims of around $33 million filed an involuntary chapter 7 petition against the company (Bankr. D. Del. Case. No. 07-10928). Adam G. Landis, Esq., and Kerri K. Mumford, Esq., at Landis Rath & Cobb LLP, represent the petitioners. A hearing to consider approval of an interim settlement agreement entered into by the company and its creditors is set for Dec. 10, 2007. The agreement provides for the dismissal of the involuntary chapter 7 petition in exchange for the Debtor admitting its liability under a $52 million loan. EXPRESS FINANCIAL: Case Summary & 40 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Express Financial Services, Inc. Nine Parkway Center, Suite 275 875 Greentree Road Pittsburgh, PA 15220 Bankruptcy Case No.: 07-27374 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Express Title Services of Ohio, Inc. 07-27377 Type of Business: The Debtors provide title insurance, appraisal and settlement service. See http://www.efstitle.com/common/about.asp Chapter 11 Petition Date: November 21, 2007 Court: Western District of Pennsylvania (Pittsburgh) Debtor's Counsel: Paul J. Cordaro, Esq. Campbell & Levine LLC 1700 Grant Building Pittsburgh, PA 15219 Tel: (412) 261-0310 Fax: (412) 261-5066 Estimated Assets Estimated Debts ---------------- --------------- Express Financial $1 Million to $1 Million to Services, Inc. $100 Million $100 Million Express Title Services Less than $10,000 $50,000 to of Ohio, Inc. $100,000 A. Express Financial Services, Inc.'s list of its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Morton H. Lowe Stock Redemption $800,000 1300 Bower Hill Road Claim Apartment 1401 Pittsburgh, PA 15243 Stewart Title Guaranty Company Title Premium $132,230 1980 Post Oak Boulevard Suite 800 Houston, TX 77056 Greentree Parkway Associates Trade Creditor $104,908 875 Greentree Road Seven Parkway Center, Suite 750 Pittsburgh, PA 15220 Kramer, Thompson & Associates Accounting Services $91,979 AT&T Trade Creditor $77,498 Countrywide Title & Settlement Trade Creditor $56,268 Fed-Ex Trade Creditor $55,292 UPS Trade Creditor $36,651 McNamee Hosea Trade Creditor $29,894 CBRE ITF 51 Trade Creditor $28,261 Duane Morris Trade Creditor $27,697 Office Depot Trade Creditor $27,244 Alacrity Appraisal Associates Trade Creditor $25,975 Chesterbrook Partners Trade Creditor $24,622 Orion Appraisal and Trade Creditor $23,005 Management Services First American Title Trade Creditor $22,924 Insurance Co. Liberty Property Trade Creditor $22,634 Hoffman Appraisal Services Inc. Trade Creditor $22,265 Blue Edge, Inc. Trade Creditor $22,025 Brian A. Cohee Trade Creditor $21,945 B. Express Title Services of Ohio, Inc.'s list of its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Triangle Real Estate Trade Creditor $17,120 Services, Inc. 470 Olde Worthington Road Suite 100 Westerville, OH 43082 Stewart Title Guarantee Co. Title Premium $10,800 1980 Post Oak Boulevard Suite 800 Houston, TX 77056 Kramer, Thompson & Associates Accounting Services $10,270 Nine Parkway Center, Suite 275 875 Greentree Road Pittsburgh, PA 15220 Byers Research Trade Creditor $6,173 Biela Title Services, LLC Trade Creditor $5,562 HUB Properties Trust Trade Creditor $4,935 Iron Mountain Trade Creditor $4,899 Records Management AT&T Trade Creditor $4,447 DHL Express (USA) Inc. Trade Creditor $4,272 George Pritsolas Trade Creditor $3,966 Beate Graves Trade Creditor $2,491 Fed-Ex Trade Creditor $2,385 BRM Trade Creditor $1,730 Swift Closing Services Trade Creditor $1,515 Office Depot Trade Creditor $1,275 Reinhardt & Associates, Inc. Trade Creditor $1,168 Darrin Sacket Trade Creditor $1,100 Century Business Graphics Trade Creditor $1,098 JLK Exams Trade Creditor $1,076 Accelerated Abstract Trade Creditor $1,025 FASHION HOUSE: Sept. 30 Balance Sheet Upside-Down by $16.1 Million ------------------------------------------------------------------ The Fashion House Holdings Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $3.5 million in total assets and $19.6 million in total liabilities, resulting in a $16.1 million total shareholders' deficit. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $3.1 million in total current assets available to pay $15.6 million in total current liabilities. The company reported a net loss of $4.0 million on net sales of $1.8 million for the third quarter ended Sept. 30, 2007, compared with a net loss of $1.7 million on net sales of $3.3 million in the same period in 2006. The net sales decrease was primarily attributable to late product deliveries from the company's overseas factories. The late deliveries were caused by late payments to the factories due to the company's continuing cash flow issues. The increase in net loss was primarily as a result of accounting for derivatives. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?25a9 Going Concern Doubt As reported in the Troubled Company Reporter on April 23, 2007, KMJ Corbin & Company LLP, in Irvine, California, expressed substantial doubt about about The Fashion Holdings Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statemenets for the year ended Dec. 31, 2006. The auditing firm reported that the company has incurred recurring losses and has a working capital deficit of $5,187,040. About Fashion House Headquartered in Los Angeles, The Fashion House Holdings Inc. (OTC BB: FHHI) -- http://www.thefashionhouseinc.com/-- designs, develops, and markets a diversified selection of women's dress and casual fashion footwear. The company's licensed brands include Richard Tyler Couture, Tyler Richard Tyler, Oscar by Oscar de la Renta and O Oscar by Oscar de la Renta. FEDERAL-MOGUL: To Issue $305,236,000 in Senior Notes ---------------------------------------------------- Pursuant to the requirements of the Trust Indenture Act of 1939, Federal-Mogul Corp. discloses in a regulatory filing with the U.S. Securities and Exchange Commission that it intends to issue certain Senior Subordinated Third Priority Secured Notes due 2018 on the Effective Date of the Fourth Amended Joint Plan of Reorganization. Federal-Mogul anticipates exiting from bankruptcy in December 2007. Reorganized Federal-Mogul plans to initially issue $305,236,000 in Notes under the Fourth Amended Plan, Federal-Mogul Corp. Senior Vice President and General Counsel Robert L. Katz relates. The Notes will be issued under an indenture among Reorganized Federal-Mogul, certain guarantors, and U.S. Bank National Association, as trustee, Mr. Katz says. A full-text copy of the form of Indenture is available for free at the Securities and Exchange Commission at: http://ResearchArchives.com/t/s?25ba Among the Indenture Guarantors are these Debtors: * Carter Automotive Company, Inc. * F-M UK Holding Limited * Federal-Mogul Dutch Holdings Inc. * Federal-Mogul FAP Inc. * Federal-Mogul FX, Inc. * Federal-Mogul Global B.V. * Federal-Mogul Global Inc. * Federal-Mogul Global Properties, Inc. * Federal-Mogul Growth B.V. * Federal-Mogul Ignition Company * Federal-Mogul Mystic, Inc. * Federal-Mogul Piston Rings, Inc. * Federal-Mogul Powertrain, Inc. * Federal-Mogul Products, Inc. * Federal-Mogul Technical Center, LLC * Federal-Mogul U.K. Holdings Inc. * Federal-Mogul Venture Corporation * Federal-Mogul World Wide, Inc. * Felt Products Mfg. Co. * Ferodo America, Inc. * Ferodo Holdings Inc. * Gasket Holdings Inc. * McCord Sealing, Inc. * T&N Industries Inc. Pursuant to the Plan, holders of Allowed Bank Claims and Allowed Surety Claims will receive the Notes in partial satisfaction of their claims. The Notes will be executed on behalf of Federal-Mogul by two officers or an officer and an assistant secretary. A Note will be valid only if the Trustee manually signs the certificate of authentication on the Note, Mr. Katz clarifies. If an Officer whose signature is on a Note no longer holds that office at the time the Trustee authenticates the Note or at any time thereafter, the Note will be valid nevertheless, Mr. Katz says. Federal-Mogul, Mr. Katz adds, will not receive any proceeds from the issuance of the Notes because the Notes will be issued as part of an exchange, as provided in the Plan. The Debtors aver that the issuance of the Notes is exempt from the registration requirements of the Securities Act of 1933, as amended, pursuant to Section 1145(a)(1) of the Bankruptcy Code. Outstanding Capital Securities As of October 31, 2007, Federal-Mogul's authorized and outstanding capital stock and debt securities are at these amounts: Title of Class Amount Authorized Amount Outstanding -------------- ----------------- ------------------ Common Stock 260,000,000 shares 89,496,493 shares Series C ESOP Convertible Preferred Stock 1,000,000 shares 439,937 shares Notes due 2004 (7.5% issued in 1998) $250,000,000 $239,800,000 Notes due 2006 (7.75% issued in 1998) $400,000,000 $391,900,000 Notes due 2006 (7.375% issued in 1999) $400,000,000 $394,000,000 Notes due 2009 (7.5% issued in 1999) $600,000,000 $562,200,000 Notes due 2010 (7.875% issued in 1998) $350,000,000 $340,400,000 Medium-Term Notes due between 2002 & 2005 (average rate of 8.8% issued in 1994 & 1995) $84,000,000 $84,000,000 Senior Notes due 2007 (8.8% issued in 1997 $125,000,000 $103,300,000 7.0% Convertible Junior Subordinated Debentures $575,000,000 $74,300,000 According to Mr. Katz, Reorganized Federal-Mogul will have capital stock and debt securities authorized and outstanding at these amounts as of the Effective Date: Title of Class Amount Authorized Amount Outstanding -------------- ----------------- ------------------ Class A Common Stock par value $0.01 400,000,000 shares 49,900,000 shares Class B Common Stock par value $0.01 50,100,000 shares 50,100,000 shares Preferred Stock par value $0.01 90,000,000 shares - Senior Subordinated Third Priority Secured Notes due 2018 $305,236,000 $305,236,000 About Federal-Mogul Based in Southfield, Michigan, Federal-Mogul Corporation -- http://www.federal-mogul.com/-- is an automotive parts company with worldwide revenue of some $6 billion. Federal-Mogul also has operations in Mexico and the Asia Pacific Region, which includes, Malaysia, Australia, China, India, Japan, Korea, and Thailand. The Company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl & Jones, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $10.15 billion in assets and $8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan. They submitted a Disclosure Statement explaining that plan on April 21, 2003. They submitted several amendments and on June 6, 2004, the Bankruptcy Court approved the Third Amended Disclosure Statement for their Third Amended Plan. On July 28, 2004, the District Court approved the Disclosure Statement. The estimation hearing began on June 14, 2005. The Debtors submitted a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006, and the Bankruptcy Court approved that Disclosure Statement on Feb. 6, 2007. The Bankruptcy Court confirmed the Fourth Amended Plan on Nov. 8, 2007. On Nov. 13, 2007, the Bankruptcy Court's confirmation of the Fourth Amended Plan was affirmed by the District Court. (Federal-Mogul Bankruptcy News, Issue No. 154; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). FEDERAL-MOGUL: Thornwood to Own 25% of Reorganized Debtors' Stock ----------------------------------------------------------------- On the Effective Date of Federal-Mogul Corp. and its debtor- affiliates' Fourth Amended Joint Plan of Reorganization, existing voting securities of will be canceled. As set forth in the Plan, Reorganized Federal-Mogul will issue, on the Effective Date, new Class A Common Stock, new Class B Common Stock and $305,236,000 in Senior Subordinated Third Priority Secured Notes due 2018 pursuant to an indenture. Voting securities in Reorganized Federal-Mogul will consist of the New Common Stock. The Fourth Amended Plan provides that a trust for the benefit of the holders of Asbestos Personal Injury Claims will receive 50.1% of the shares of Common Stock to be issued by Reorganized Federal-Mogul. The remaining shares will be distributed pro rata to holders of Allowed Noteholder Claims, Allowed Convertible Subordinated Debenture Claims, and Allowed Class H Unsecured Claims against the U.S. Debtors. There are no persons owning 10% or more of Federal-Mogul's voting securities as of November 20, 2007, Federal-Mogul Corp. Senior Vice President and General Counsel Robert L. Katz discloses in a regulatory filing with the Securities and Exchange Commission. However, the Debtors anticipate that on the Effective Date, Thornwood Associates Limited Partnership and the Asbestos Personal Injury Trust will own more than 10% of Reorganized Federal-Mogul's voting securities: Percentage of Total Voting Entity Class Ownership Securities Owned ------ --------------- ---------------- Asbestos PI Trust $50,100,000 in Class B Common Stock 50.1% Thornwood $25,898,100 in Class A Common Stock 25.9% Dependent upon the occurrence of certain conditions, the Plan grants Thornwood two options to acquire additional shares of Class B Common Stock. If exercised by Thornwood, the Options will reduce the Trust's ownership of voting securities to zero, Mr. Katz notes. Thornwood is a Delaware limited partnership, the general partner of which is Barberry Corp., the sole shareholder of which is Carl Icahn, an individual. Thornwood is headquartered at 445 Hamilton Avenue, Suite 1210, in White Plains, New York. About Federal-Mogul Based in Southfield, Michigan, Federal-Mogul Corporation -- http://www.federal-mogul.com/-- is an automotive parts company with worldwide revenue of some $6 billion. Federal-Mogul also has operations in Mexico and the Asia Pacific Region, which includes, Malaysia, Australia, China, India, Japan, Korea, and Thailand. The Company filed for chapter 11 protection on Oct. 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan Esq., James F. Conlan Esq., and Kevin T. Lantry Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones Esq., at Pachulski, Stang, Ziehl & Jones, P.C., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $10.15 billion in assets and $8.86 billion in liabilities. Federal-Mogul Corp.'s U.K. affiliate, Turner & Newall, is based at Dudley Hill, Bradford. Peter D. Wolfson, Esq., at Sonnenschein Nath & Rosenthal; and Charlene D. Davis, Esq., Ashley B. Stitzer, Esq., and Eric M. Sutty, Esq., at The Bayard Firm represent the Official Committee of Unsecured Creditors. On March 7, 2003, the Debtors filed their Joint Chapter 11 Plan. They submitted a Disclosure Statement explaining that plan on April 21, 2003. They submitted several amendments and on June 6, 2004, the Bankruptcy Court approved the Third Amended Disclosure Statement for their Third Amended Plan. On July 28, 2004, the District Court approved the Disclosure Statement. The estimation hearing began on June 14, 2005. The Debtors submitted a Fourth Amended Plan and Disclosure Statement on Nov. 21, 2006, and the Bankruptcy Court approved that Disclosure Statement on Feb. 6, 2007. The Bankruptcy Court confirmed the Fourth Amended Plan on Nov. 8, 2007. On Nov. 13, 2007, the Bankruptcy Court's confirmation of the Fourth Amended Plan was affirmed by the District Court. (Federal-Mogul Bankruptcy News, Issue No. 154; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). GLO-TEX INTERNATIONAL: Involuntary Chapter 11 Case Summary ---------------------------------------------------------- Alleged Debtor: Glo-Tex International, Inc. aka Glo-Tex Chemical 25 Stan Oerkins Road Spartanburg, SC 29307 Case Number: 07-06449 Type of Business: The Debtor is a specialty chemical company committed to providing quality solutions to global companies through innovative chemistry and service. See http://www.glotex.com/ Involuntary Petition Date: November 21, 2007 Court: District of South Carolina (Spartanburg) Judge: John E. Waites Petitioner's Counsel: Randy A. Skinner, Esq. Skinner and Associates Law Firm, L.L.C. P.O. Box 1843 Greenville, SC 29602 Tel: (864) 232-2007 Fax: (864) 232-8496 Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ Crescent Bay Builders, L.L.C. labor and materials $1,004,081 110 Edgeworth Street Greenville, SC 29607 Delta Electrical Contractors labor and materials $662,511 of South Carolina, Inc. 600 Apple Valley Road Duncan, SC 29334 Southland Steel Erectors, labor and materials $483,717 Inc. P.O. Box 967 Greer, SC 29652 IONICA PLC: Plan Supervisors To Pay Dividend on November 30 ----------------------------------------------------------- The scheme supervisors of Ionica Plc's Scheme of Arrangement intend to pay a dividend of 1.115 pence in sterling pounds to satisfy the admitted claims against the Debtor. Dividends on the admitted scheme claims in respect of the holders of the 13-1/2% senior notes due 2006, and the 15% senior discount notes due 2007, will be paid to the indenture trustees, the Bank of New York, and HSBC Bank USA, N.A., respectively, on Nov. 30, 2007. Further information on the dividend pay-out can be obtained from: Julle Altken A J Kett Joint Scheme Supervisor Tel: +44 (0) 207 212-4862 About Ionica Plc Ionica Plc's parent company, Ionica Group Plc, provides telecommunication services in the U.K. Ionica Plc entered into administration on Oct. 29, 1998. The Debtor previously filed a complaint against its parent group, Ionica Group PLC. At that time, the company's unsecured creditors were owed at least GBP220 million. The company filed for Chapter 11 protection on Dec. 11, 1998, with the U.S. Bankruptcy Court for the Southern District of New York, since most of its creditors are located in the U.S. JOAN FABRICS: Court Converts Bankruptcy Case to Chapter 7 --------------------------------------------------------- The Hon. Christopher S. Sontchi of the U.S. Bankruptcy Court for the District of Delaware converted the chapter 11 case of Joan Fabrics Corporation and Madison Avenue Designs LLC, to chapter 7 liquidation, The Associated Press reports. The Debtors asked for the conversion after being barred from using their lenders' cash collateral subsequent to an Oct. 28, 2007 expiration date, AP relates, citing court documents. Presently, the Debtors hold about $2.88 million cash, AP notes. Under chapter 7, AP relates, the Debtors will be able to mitigate administrative expenses. Based in Tyngsboro, Massachusetts, Joan Fabrics Corporation manufactures automotive and furniture upholstery fabrics. The company has a manufacturing facility in North Carolina and an affiliate entity in Mexico. The Debtor and its affiliate, Madison Avenue Designs LLC, filed for Chapter 11 protection on April 10, 2007 (Bankr. D. Del. Case Nos. 07-10479 and 07-10480). Curtis A. Hehn, Esq., Laura Davis Jones, Esq., and Michael Seidl, Esq., at Pachulski Stang Ziehl Young Jones & Wein represent the Debtors in their restructuring efforts. Bradford J. Sandler, Esq., at Benesch Friedlander Coplan & Aronoff and David A. Matthews, Esq., at Shumaker, Loop & Kendrick, LLP represent the Official Committee of Unsecured Creditors. The Debtors' exclusive period to file a plan expired on Aug. 8, 2007. The Debtors' schedules of assets and liabilities disclose total assets of $48,896,091 and total debts of $80,190,872. JOHN FRANCIS QUINN: Chapter 15 Petition Summary ----------------------------------------------- Petitioner: Hardie & Kelly, Inc. 206, 5800 2nd Street Southwest Calgary, AB T2H0H2 CANADA Debtor: John Francis Quinn Calgary, Alberta, Canada Case No.: 07-11346 Type of Business: The Debtor is a dependent adult. Dawn T. Quinn is his only surviving child, his court-appointed guardian and sole beneficiary of his estate. On April 23, 2007, Hardie & Kelly, Inc. was appointed as the Debtor's receiver and manager without security. Chapter 15 Petition Date: November 21, 2007 Court: Middle District of Florida (Tampa) Petitioner's Counsel: W. Gregory Golson 1724 East 5th Avenue Tampa, FL 33605 Tel: (813) 241-0900 Fax: (813) 241-0910 Estimated Assets: Unstated Estimated Debts: Unstated JOYCE DON ASSOCIATES: Court Approves Wolff Hill as Attorney ----------------------------------------------------------- Joyce Don & Associates Inc. obtained authority from the United States Bankruptcy Court for the Middle District of Florida to employ Wolff, Hill, McFarlin & Herron P.A. as its attorney. Wolff Hill is expected to: i) advise and counsel the debtor-in-possession concerning the operations of its business in compliance with Chapter 11 and orders of the Court; ii) defend any causes of action of behalf of the debtr-in- possession; iii) prepare, on behalf of the debtor-in-possession, all necessary applications, motions, reports, and other legal papers in the Chapter 11 case; iv) assist in the formulation of a plan of reorganization and preparation of a disclosure statement; v) provide all services of a legal nature in the field of bankruptcy law. The Debtor tells the Court that Narcarta Holding, a company owned by Donna R. Daniels and Osmond Decouteau, stockholders of the Debtor, paid $5,000 to the firm. Document filed with the Court did not disclose the firm's compensation rates for this engagement. David R. McFarlin, Esq., an attorney of the firm, assures the Court that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Based in Orlando, Florida, Joyce, Don & Associates, Inc., filed for chapter 11 protection on Oct. 11, 2007 (Bankr. M.D. Fla. Case No. 07-04878). When the Debtor filed for protection from its creditors, it listed total assets of $18 million and total debts of $78 million. LAFAYETTE NEIGHBORHOOD: Wants Court Permission to Sell Four Lots ---------------------------------------------------------------- Lafayette Neighborhood Housing Services asks the U.S. Bankruptcy Court for the Northern District of Indiana for authority to sell four lots free and clear of liens. The lot at 105 Park Avenue, Belt Railway, Addn Lot 2, Block 14 will be bought by Mark and Krista Cory for $66,000. The lot at 2011 Hall Street, Monon, Addn Lot 183 will be bought by Deborah Bradford for $45,000. The lot at 715 South, 28th Street, Belt Railway, Addn Lot 19, Block 42 will be bought by IQ Homes for $31,000. The lot at 807 South, 29th Street will also be bought by IQ Homes for $51,000. The Debtor informs the Court that only lien on the real estate is judgment in favor of Salin Bank entered July 17, 2007. The Debtors also relates that it will hold in a segregated account the proceeds of the sale, less closing expenses and broker's fee, subject to further Court order. The Debtor assure the Court that the four buyers are non-insiders and that the purchase prices for the properties are fair. The Debtor adds that it does not require the real properties being sold for an effective reorganization. Headquartered Lafayette, Indiana, Lafayette Neighborhood Housing Services -- http://www.nhslaf.org/-- is a community based, non- profit partnership with many programs designed to benefit the residents of Lafayette. LNHS filed for chapter 11 protection on Oct. 12, 2007 (Bankr. N.D. Ind. Case No. 07-40572). David A. Rosenthal, Esq., in Lafayette, Indiana, represents the Debtor. When the Debtor filed for protection from its creditors, it listed total assets of $7,318,668 and total debts of $16,875,249. The Debtor's exclusive period to file a chapter 11 plan expires on Feb. 9, 2008. LAFAYETTE NEIGHBORHOOD: Wants to Hire Kim Davis as Broker --------------------------------------------------------- Lafayette Neighborhood Housing Services asks the U.S. Bankruptcy Court for the Northern District of Indiana for authority to employ Kim Davis as its broker in the sale of four lots. Mr. Davis will receive 6% commission for the sale. The Debtor informs the Court that it already has a contract to sell the real properties to various non-insiders for purchase prices ranging from $31,000 to $66,000 per lot. The Debtor relates that Kim Davis has served on the board of Lafayette Neighborhood Housing Services without compensation. Headquartered Lafayette, Indiana, Lafayette Neighborhood Housing Services -- http://www.nhslaf.org/-- is a community based, non- profit partnership with many programs designed to benefit the residents of Lafayette. LNHS filed for chapter 11 protection on Oct. 12, 2007 (Bankr. N.D. Ind. Case No. 07-40572). David A. Rosenthal, Esq., in Lafayette, Indiana, represents the Debtor. When the Debtor filed for protection from its creditors, it listed total assets of $7,318,668 and total debts of $16,875,249. The Debtor's exclusive period to file a chapter 11 plan expires on Feb. 9, 2008. LAFAYETTE NEIGHBORHOOD: U.S. Trustee Forms Seven-Member Committee ----------------------------------------------------------------- Nancy J. Gargula, the United States Trustee for Region 10 appointed seven members to the Official Committee of Unsecured Creditors in the bankruptcy case of Lafayette Neighborhood Housing Services. The creditor members are: 1. Tim Gray - Acting Committee Chair Grasshopper's Lawn Care Service, Inc. 15 S. 30th St. Lafayette, IN 47904 Tel: (765) 446-8212 2. George Kygler Let George Do It! 8431 W. 6505 West Point, IN 47992 Tel: (765) 572-2728 3. Richard Pendleton Pendleton Heating and A/C of Lafayette 64235 300 E. Lafayette, IN 47909 Tel: (765) 474-2604 4. Rob Griffith Griffith Group, Inc. 703 Widewater Dr. Lafayette, IN 47904 Tel: (765) 742-3225 5. Mike Cummings MC Services 12453 W. Poplar Hills Dr. Monticello, IN 47960 Tel: (574) 870-2142 6. Rachel Bandy A Clean Touch 1109 Wells St. Lafayette, IN 47905 Tel: (765) 477-6758 7. Glen Vick Journal and Courier 217 W. 6th St. Lafayette, IN 47901 Tel: (765) 420-5282 Headquartered Lafayette, Indiana, Lafayette Neighborhood Housing Services -- http://www.nhslaf.org/-- is a community based, non- profit partnership with many programs designed to benefit the residents of Lafayette. LNHS filed for chapter 11 protection on Oct. 12, 2007 (Bankr. N.D. Ind. Case No. 07-40572). David A. Rosenthal, Esq., in Lafayette, Indiana, represents the Debtor. When the Debtor filed for protection from its creditors, it listed total assets of $7,318,668 and total debts of $16,875,249. The Debtor's exclusive period to file a chapter 11 plan expires on Feb. 9, 2008. LEVITT AND SONS: Court Okays AP Services as Crisis Managers ----------------------------------------------------------- The Honorable Raymond B. Ray of the U.S. Bankruptcy Court for the Southern District of Florida approved, on an interim basis, the employment of AP Services, LLC, to provide interim management and restructuring services to the Debtors, nunc pro tunc to the Debtors' bankruptcy filing. If no objection is timely filed by Dec. 4, 2007, the order will become final for all purposes, and the application approved in all respects. In addition, the Debtors designated Lawrence E. Young as chief restructuring officer, and appointed John Dischner as executive vice president to the Debtors. Seth Wise, the Debtors' president, told the Court that Messrs. Young and Dreschner have over 15, and 10, years of experience in crisis management and business reorganizations, and have demonstrated expertise assisting companies with financial restructurings, operational improvement plans and cash management. APS is expected to provide restructuring management services, including providing Mr. Young to serve as CRO and Mr. Dischner to serve as EVP. APS will also: -- assist the Debtors in evaluating and implementing strategic and tactical options through the restructuring process; -- provide certain additional temporary staff to assist the Debtors in their restructuring efforts; -- assist with the preparation of the statement of financial affairs, schedules and other regular reports required by the Bankruptcy Code or the Court or which are customarily issued by the chief financial officer; -- assist in preparing for and filing of bankruptcy cases for the Debtors, coordinating and providing administrative support for the cases and developing a plan of reorganization or other appropriate case resolution, if necessary; and -- management of the claim and claim reconciliation processes. APS and Messrs. Young and Dischner will be paid in accordance to the firm's hourly rates, subject to changes: Professionals Hourly Rates ------------- ------------ Lawrence Young, Esq. $725 John Dischner, Esq. $575 Michelle Campbell, Esq. $550 Barry Folse, Esq. $700 Drew Lockard, Esq. $420 Pat Murray, Esq. $350 Jason Kilpela, Esq. $350 Colin Keenan, Esq. $350 Omar Zaidi, Esq. $350 Michelle Smith, Esq. $350 APS has received a $1,500,000 retainer from the Debtors, to be applied against fees and expenses in the Debtors' Chapter 11 cases. If APS wants to augment its professional staff with independent contractors, it will file, and require the Independent Contractor to file, 2014 affidavits indicating that the Independent Contractor has reviewed the list of the interested parties in the Debtors' Chapter 11 cases. The Independent Contractor must remain disinterested during the time APS is involved in providing services on behalf of the Debtors, and represent that he will not work for the Debtors or other interested parties during the time APS is involved in providing services to the Debtors. Mr. Wise noted that it is APS' standard practice to charge for an Independent Contractor's services at the APS' rate for an employee of comparable skill and experience, which rate typically exceeds the compensation provided by APS to the Independent Contractor. APS employees serving as officers of the Debtors, including the CRO and EVP, will be entitled to receive whatever indemnities are made available, during the term of ASP's engagement, to other -- non-APS affiliated -- officers of the Debtors. Nonetheless, Mr. Young ascertained that the firm holds no adverse interest as to matter for which it has been employed by the Debtors. About Levitt and Sons Based in Fort Lauderdale, Florida, Levitt and Sons LLC -- http://www.levittandsons.com/-- is the homebuilding subsidiary of Levitt Corporation (NYSE:LEV). Levitt Corp. -- http://www.levittcorporation.com/-- together with its subsidiaries, operates as a homebuilding and real estate development company in the southeastern United States. The company operates in two divisions, homebuilding and land. The homebuilding division primarily develops single and multi-family homes for adults and families in Florida, Georgia, Tennessee, and South Carolina. The land division engages in the development of master-planned communities in Florida and South Carolina. Levitt and Sons LLC and 38 of its homebuilding affiliates filed for Chapter 11 protection on Nov. 9, 2007 (Bankr. S.D. Fla. Lead Case No. 07-19845). Paul Singerman, Esq. and Jordi Guso, Esq., at Berger Singerman, P.A., represent the Debtors in their restructuring efforts. The Debtors chose AP Services, LLC as their crisis managers, and Kurtzman Carson Consultants, LLC as their claims and noticing agent. Levitt Corp., the Debtors' parent company, did not file for Chapter 11 protection. The Debtors' latest consolidated financial condition as of Sept. 30, 2007 reflect total assets of $900,392,000, and total liabilities of $780,969,000. The Debtors' exclusive period to file a chapter 11 plan expires on March 8, 2008. (Levitt and Sons Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). LEVITT AND SONS: Gets Court OK to Close On Pre-Bankr. Home Sales ---------------------------------------------------------------- Levitt and Sons LLC and its debtor-affiliates obtained authority from the Honorable Raymond B. Ray of the U.S. Bankruptcy Court for the Southern District of Florida to close on certain pre- bankruptcy home sale contracts. The Debtors are authorized, but not directed to: -- close on sales of encumbered homes once construction is finished and all other requirements are met; -- honor certain existing pre-bankruptcy contract obligations to homebuyers and others, including payment of commissions due to current or former employees under the Company Sales and Design Incentive Plans, which are due upon the closing of an Encumbered Home to the Debtors' workforce and persons who have or might assert mechanic's liens against the Encumbered Home to be sold; and -- sell Encumbered Homes postpetition in the ordinary course of business. Any title insurance company is authorized to close on the sale of any Encumbered Home of the Debtors pursuant to the terms of the order, upon its receipt of a release or partial release of mortgage, as the case may be, from the applicable lender. The procedures with respect to asserting mechanic's lien claims will not apply to the sale of homes that are not subject to prepetition mortgage liens of the Debtors' prepetition lenders. The Debtors may sell Unencumbered Homes in the ordinary course of business without further order of the Court. Judge Ray also overruled Kenneth and Sandra Schroeder's objection to the Debtors' request for the closing of home sale transactions. They earlier contended that their home building contract with the Debtor constitutes an executory contract in accordance with Section 365 of the U.S. Bankruptcy Code. They said that with the Debtors' request for home sales consummation, the Debtors are seeking to circumvent the requirements of Section 365 by couching the fulfillment of certain unidentified contracts as ordinary course of business transactions. Yavers Seek Contract Rejection & Deposit Return Eugene M. Yaver and Andrea I. Yaver, files a joinder to Kenneth and Sandra Schroeder's objection to the Debtors' request for authorization to perform certain contractual obligations in the ordinary course of business. The Yavers also seek: -- rehearing of the order granting the Motion; as well as, -- entry of an order compelling Debtor Levitt and Sons at Tradition, LLC, to reject the agreement between LST and the Yavers for the sale and purchase of a certain parcel of real property, and directing LST to return to the Yavers their deposit amounts. Jason E. Slatkin, Esq., at Slatkin & Reynolds, P.A., in Fort Lauderdale, Florida, relates that the Yavers are named purchasers in a certain Purchase and Sale Agreement -- Seasons at Traditions with LST, dated Feb. 7, 2007, pertaining to Lot No. 262 of the community known as Seasons at Tradition. In accordance with the Agreement, the Yavers placed with the escrow agent, the law firm, Broad and Cassel, deposit monies totaling $34,090. As of November 15, LST has not completed the subject property and its amenities. Other than the deposit, the Yavers have not paid the remaining amounts due under the agreement. Thus, the Agreement is executory in nature, Mr. Slatkin tells the Court. Although the Debtors assert that the authority for relief sought in the motion is also found in Sections 363(c)(1) and 1108 of the Bankruptcy Code, it is not, as Section 363(c)(1) concerns the ability of a trustee or debtor-in-possession to enter into postpetition transactions, and Section 1108 is merely a provision of general applicability and is not that which specifically addresses executory contracts, such as the agreement, which the Yavers assume is one of the agreements that are subject of the Motion, Mr. Slatkin states. "Thus, the relief sought by way of the Motion, to the extent there is any authority of such, can only be found in [Section] 105 of the Bankruptcy code, which. . . is a provision of last resort," Mr. Slatkin says. The Yavers assert that the Debtors should be required to comply with the provisions of Section 365 of the Bankruptcy Code, and "not be allowed to circumvent the requirements of Section 365 by disguising their intent under the cover of Sections 105, 363 and 1108." The Yavers did not receive due process in the granting of the Motion. The Yavers did not have proper notice of the hearing and were not able to appear at the hearing and object. The Court should grant rehearing, at least to the extent of the Yavers' objection, Mr. Slatkin asserts. Mr. Slatkin avers that there does not appear to be any chance that LST will ever be able to fulfill all of its obligations under the agreement. Accordingly, the Yavers ask the Court to compel LST to immediately reject the agreement. Upon rejection, the Yavers will be entitled to a return of their deposit, which the Debtors acknowledge is not property of any of the bankruptcy estates because the deposit is being held in escrow. About Levitt and Sons Based in Fort Lauderdale, Florida, Levitt and Sons LLC -- http://www.levittandsons.com/-- is the homebuilding subsidiary of Levitt Corporation (NYSE:LEV). Levitt Corp. -- http://www.levittcorporation.com/-- together with its subsidiaries, operates as a homebuilding and real estate development company in the southeastern United States. The company operates in two divisions, homebuilding and land. The homebuilding division primarily develops single and multi-family homes for adults and families in Florida, Georgia, Tennessee, and South Carolina. The land division engages in the development of master-planned communities in Florida and South Carolina. Levitt and Sons LLC and 38 of its homebuilding affiliates filed for Chapter 11 protection on Nov. 9, 2007 (Bankr. S.D. Fla. Lead Case No. 07-19845). Paul Singerman, Esq. and Jordi Guso, Esq., at Berger Singerman, P.A., represent the Debtors in their restructuring efforts. The Debtors chose AP Services, LLC as their crisis managers, and Kurtzman Carson Consultants, LLC as their claims and noticing agent. Levitt Corp., the Debtors' parent company, did not file for Chapter 11 protection. The Debtors' latest consolidated financial condition as of Sept. 30, 2007 reflect total assets of $900,392,000, and total liabilities of $780,969,000. The Debtors' exclusive period to file a chapter 11 plan expires on March 8, 2008. (Levitt and Sons Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). LEVITT AND SONS: Court Oks Return of Escrowed Homebuyers' Deposits ------------------------------------------------------------------ The Honorable Raymond B. Ray of the U.S. Bankruptcy Court for the Southern District of Florida gave authority to Levitt and Sons LLC and its debtor-affiliates to return to home buyers the deposits received from and after Aug. 29, 2007, and held in escrow. The Debtors had publicly announced that land development activities were being suspended. Shortly thereafter, the Debtors curtailed, and later stopped, all houseline construction. Accordingly, the Debtors placed in escrow accounts purchase deposits made by certain homebuyers that were received from and after Aug. 29, 2007. As of the date of bankruptcy, the Debtors held roughly $793,746 in deposit escrows. Upon receipt of the deposits: -- each of the contracts they entered into with the Homebuyers will be deemed terminated; and -- the home buyers will be deemed to have waived the right to assert any claims against the Debtors and their estates under or pertaining to those contracts. Paul Steven Singerman, Esq., at Berger Singerman, P.A., proposed counsel to the Debtors, told the Court that the Debtors do not hold an equitable interest in the deposits, only bare legal title. The equitable interest in the deposits is held by the Homebuyers, according to Mr. Singerman. If the Debtors, in their business judgment, elect not to complete construction of these homes, they should be authorized to return the deposits to the homebuyers, he says. Mr. Singerman notes that a bankruptcy estate includes all legal or equitable interests of the debtor as of the commencement of the case. Under Section 541(a)(1) of the Bankruptcy Code, however, property in which a debtor holds, as of the filing of a bankruptcy case, only legal title and not an equitable interest, becomes property of the estate only to the extent of legal title, Mr. Singerman says. Under Section 541(d), property, in the nature of the escrowed funds like Deposits, held for the benefit of third parties like the home buyers, does not constitute property of the estate, Mr. Singerman states, citing: 1. Begier v. I.R.S., 496 U.S. 53, 67 (1990) (taxes such as excise taxes, FICA taxes, and withholding taxes are property held by debtor in trust for another and, as such, do not constitute property of the estate); 2. United States v. Whiting Pools, Inc., 462 U.S. 198, 205 n.10 (1983) (noting that "Congress plainly excluded property of others held by the debtor in trust at the time of the filing of the petition."); and 3. T&B Scottdale Contractors, Inc. v. United States, 866 F.2d 1372 (11th Cir. 1989) (holding that funds in debtor's account held for third party did not constitute property of the debtor's estate). If the contracting Debtors, in their business judgment, elect not to complete the construction of the homes, they are authorized to return the deposits to the home buyers whose contracts are terminated. The contracting debtors will not return any deposit to a home buyer relating to a completed home without the consent of the respective lender or further Court order, if the lender objects. About Levitt and Sons Based in Fort Lauderdale, Florida, Levitt and Sons LLC -- http://www.levittandsons.com/-- is the homebuilding subsidiary of Levitt Corporation (NYSE:LEV). Levitt Corp. -- http://www.levittcorporation.com/-- together with its subsidiaries, operates as a homebuilding and real estate development company in the southeastern United States. The company operates in two divisions, homebuilding and land. The homebuilding division primarily develops single and multi-family homes for adults and families in Florida, Georgia, Tennessee, and South Carolina. The land division engages in the development of master-planned communities in Florida and South Carolina. Levitt and Sons LLC and 38 of its homebuilding affiliates filed for Chapter 11 protection on Nov. 9, 2007 (Bankr. S.D. Fla. Lead Case No. 07-19845). Paul Singerman, Esq. and Jordi Guso, Esq., at Berger Singerman, P.A., represent the Debtors in their restructuring efforts. The Debtors chose AP Services, LLC as their crisis managers, and Kurtzman Carson Consultants, LLC as their claims and noticing agent. Levitt Corp., the Debtors' parent company, did not file for Chapter 11 protection. The Debtors' latest consolidated financial condition as of Sept. 30, 2007 reflect total assets of $900,392,000, and total liabilities of $780,969,000. The Debtors' exclusive period to file a chapter 11 plan expires on March 8, 2008. (Levitt and Sons Bankruptcy News, Issue No. 4; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). LEVITZ FURNITURE: Alters Retention Request for Rodman & Renshaw --------------------------------------------------------------- As previously reported, the U.S. Bankruptcy Court for the Southern District of New York gave PLVTZ Inc., dba Levitz Furniture Inc., and its debtor-affiliates interim approval to employ Rodman & Renshaw LLC as its financial advisors. Paul D. Leake, Esq., at Jones Day in New York, explains that pursuant to a letter agreement between the Debtors and Rodman & Renshaw, a "Going Concern Transaction" is a transaction or series or combination of transactions whereby the purchaser or investor: (a) intends to operate the acquired business as Levitz Furniture on a going forward basis; and (b) acquires at least 20 store locations of the Debtor. Mr. Leake clarifies that a Going Concern Transaction is not a: (1) liquidation of inventory of the Debtors; (2) sale of leasehold interests that will be used to operate other, non-Levitz Furniture businesses, or a sale pertaining to locations the Debtor intends to close; or (3) any other transaction duplicative of that for which Asset Disposition Advisors LLC has been retained by the Debtors. Alternatively, Rodman & Renshaw will serve as placement agent "for any offering of securities of the Debtors or if another source of financing is sought by the Debtors on a best efforts basis in connection with any such offer and placement," Mr. Leake tells Judge Gerber. Amended Compensation For its efforts in pursuing a Going Concern Transaction, Rodman & Renshaw will receive a minimum fee of $100,000, whether or not a Going Concern Transaction is consummated, states Mr. Leake. If a Going Concern Transaction is consummated with any party other than (i) YA Global Investments, L.P. or its affiliates, (ii) Prentice Capital Management or its affiliate, or (iii) Harbinger Capital Partners or its affiliates -- the Prior Relationship Parties -- the Debtor will pay to Rodman & Renshaw a cash fee equal to 3% of the aggregate consideration received by the Debtor, solely on account of the Going Concern Transaction, Mr. Leake tells the Court. The Minimum Fee will be credited against the Going Concern Fee. To the extent that any of the Prior Relationship Parties is the sole party to a Going Concern Transaction, Rodman & Renshaw will not be entitled to the Going Concern Fee for the transaction, Mr. Leake clarifies. If any of the Prior Relationship Parties is a party to a Going Concern Transaction together with another party other than a party proposing to liquidate some or all of the Debtor's assets in connection with the transaction, or to acquire the assets in a non-going concern fashion, the Debtor will pay to Rodman & Renshaw a cash fee equal to 3% of the Aggregate Consideration received by the Debtor from, or contributed by, the non- Prior Relationship Parties party solely on account of the Going Concern Transaction portion. The Debtor will also pay Rodman & Renshaw a fee equal to 3% of the amount lent, or, if greater, the maximum credit line provided for in connection with the issuance of non-equity-linked securities, or other indebtedness incurred by the Debtor provided by or from any of the parties identified on Schedule A of the Letter Agreement or any of their affiliates, Mr. Leake states. The Debtor will reimburse Rodman & Renshaw for all reasonable out-of-pocket expenses incurred in connection with the Letter Agreement, for up to a maximum of $50,000, unless the Debtor provides prior written approval. To the extent not otherwise previously paid in the Debtor's Chapter 11 case, the Minimum Fee and reimbursement of expenses will be paid from the carve-out for professionals contained in the Court-approved stipulation and interim and proposed final order authorizing the use of cash collateral and granting adequate protection, dated Nov. 9, 2007, and any final order authorizing the use of cash collateral. To the extent consistent with the Cash Collateral Orders, any future orders of the Court on the use of cash collateral or any other orders of the Court, the Rodman & Renshaw Payment will be made to the firm within three business days of the Court order granting Rodman & Renshaw's final fee application. About Levitz Furniture Based in New York City, Levitz Furniture Inc., nka PVLTZ Inc. -- http://www.levitz.com/-- is a specialty retailer of furniture, bedding and home furnishings in the United States. It has 76 locations in major metropolitan areas, principally in the Northeast and on the West Coast of the United States. Levitz Furniture Inc. and 11 affiliates filed for chapter 11 on Sept. 5, 1997. In December 2000, the Court confirmed the Debtors' Plan and Levitz emerged from chapter 11 on February 2001. Levitz Home Furnishings Inc. was created as the new holding company as a result of the emergence. Levitz Home Furnishings and 12 affiliates filed for chapter 11 protection on Oct. 11, 2005 (Bankr. S.D.N.Y. Lead Case No. 05- 45189). In their second filing, the Debtors disclosed about $245 million in total assets and $456 million in total debts. Nicholas M. Miller, Esq., and Richard H. Engman, Esq., at Jones Day represented the Debtors. Jeffrey L. Cohen, Esq., Jay R. Indyke, Esq., and Cathy Hershcopf, Esq., at Cooley Godward Kronish LLP served as counsel to the Official Committee of Unsecured Creditors. During this period, the Debtors closed around 35 stores in the Northeast, California, Minnesota and Arizona. PLVTZ Inc., a company created by Prentice Capital Management LP, and Great American Group purchased substantially all the assets of Levitz Home Furnishings in December 2005. Initially, Prentice owned all of the equity interests in PLVTZ. On July 6, 2007, PLVTZ was converted into a Delaware corporation, and Harbinger Capital Partners Special Situations Fund, LP, Harbinger Capital Partners Master Fund I, Ltd., and their affiliates became minority shareholders. Great American's stake in the acquisition was in running the going-out-of-business sales for some 27 Levitz units. PLVTZ, dba Levitz Furniture, continued to face decline in financial performance since December 2005. Liquidity issues and the inability to obtain additional capital prompted PLVTZ to seek protection under chapter 11 on Nov. 8, 2007 (Bankr. S.D.N.Y. Lead Case No. 07-13532). Paul D. Leake, Esq., and Brad B. Erens, Esq., at Jones Day represents the Debtors in their restructuring efforts. Kurtzman Carson Consultants LLC serves as the Debtors' claims and noticing agent. PLVTZ's balance sheet at Sept. 30. 2007, showed total assets of $177,883,000 and total liabilities of $152,476,000. The Debtors' exclusive period to file a chapter 11 plan expires on March 7, 2008. (Levitz Bankruptcy News, Issue No. 30; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). LEVITZ FURNITURE: Section 341(a) Meeting Scheduled on January 8 --------------------------------------------------------------- Diana G. Adams, the United States Trustee for Region 2, will convene on January 8, 2008, at 2:30 p.m., an official creditors' meeting for the chapter 11 case of PLVTZ Inc., dba Levitz Furniture Inc., pursuant to Section 341 of the Bankruptcy Code. The meeting will be held at 80 Broad Street, 4th Floor, in New York. All creditors are invited, but not required to attend. The Official Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question under oath a responsible officer of the Debtor. About Levitz Furniture Based in New York City, Levitz Furniture Inc., nka PVLTZ Inc. -- http://www.levitz.com/-- is a specialty retailer of furniture, bedding and home furnishings in the United States. It has 76 locations in major metropolitan areas, principally in the Northeast and on the West Coast of the United States. Levitz Furniture Inc. and 11 affiliates filed for chapter 11 on Sept. 5, 1997. In December 2000, the Court confirmed the Debtors' Plan and Levitz emerged from chapter 11 on February 2001. Levitz Home Furnishings Inc. was created as the new holding company as a result of the emergence. Levitz Home Furnishings and 12 affiliates filed for chapter 11 protection on Oct. 11, 2005 (Bankr. S.D.N.Y. Lead Case No. 05- 45189). In their second filing, the Debtors disclosed about $245 million in total assets and $456 million in total debts. Nicholas M. Miller, Esq., and Richard H. Engman, Esq., at Jones Day represented the Debtors. Jeffrey L. Cohen, Esq., Jay R. Indyke, Esq., and Cathy Hershcopf, Esq., at Cooley Godward Kronish LLP served as counsel to the Official Committee of Unsecured Creditors. During this period, the Debtors closed around 35 stores in the Northeast, California, Minnesota and Arizona. PLVTZ Inc., a company created by Prentice Capital Management LP, and Great American Group purchased substantially all the assets of Levitz Home Furnishings in December 2005. Initially, Prentice owned all of the equity interests in PLVTZ. On July 6, 2007, PLVTZ was converted into a Delaware corporation, and Harbinger Capital Partners Special Situations Fund, LP, Harbinger Capital Partners Master Fund I, Ltd., and their affiliates became minority shareholders. Great American's stake in the acquisition was in running the going-out-of-business sales for some 27 Levitz units. PLVTZ, dba Levitz Furniture, continued to face decline in financial performance since December 2005. Liquidity issues and the inability to obtain additional capital prompted PLVTZ to seek protection under chapter 11 on Nov. 8, 2007 (Bankr. S.D.N.Y. Lead Case No. 07-13532). Paul D. Leake, Esq., and Brad B. Erens, Esq., at Jones Day represents the Debtors in their restructuring efforts. Kurtzman Carson Consultants LLC serves as the Debtors' claims and noticing agent. PLVTZ's balance sheet at Sept. 30. 2007, showed total assets of $177,883,000 and total liabilities of $152,476,000. The Debtors' exclusive period to file a chapter 11 plan expires on March 7, 2008. (Levitz Bankruptcy News, Issue No. 30; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). LYONDELL CHEMICAL: Launches Cash Tender Offer for $4 Billion Notes ------------------------------------------------------------------ Lyondell Chemical Company and its subsidiaries Equistar Chemicals, LP and Equistar Funding Corporation have commenced cash tender offers for an aggregate of approximately $4.01 billion of outstanding debt securities issued by Lyondell and Equistar Issuers, as applicable. In conjunction with each of the Offers, Lyondell or the Equistar Issuers, as applicable, are soliciting consents from holders of the applicable series of Notes to effect certain proposed amendments to the indenture governing such series of Notes, including elimination of substantially all of the restrictive covenants. The Offers and Consent Solicitations are conducted in connection with the proposed merger of Lyondell with BIL Acquisition Holdings Limited, a Delaware corporation and wholly owned subsidiary of Basell AF S.C.A., a Luxembourg company. The Offer for each series of Notes will expire at 12:01 a.m. EST on Dec. 20, 2007, unless extended or earlier terminated by Lyondell or the Equistar Issuers, as applicable, in their sole discretion. The Consent Solicitation for each series of Notes will expire at or prior to 5 p.m. EST, on Dec. 5, 2007, unless extended or earlier terminated by Lyondell or the Equistar Issuers, as applicable, in their sole discretion. Holders may not tender their Notes without also delivering consents and may not deliver consents without also tendering their Notes. Holders that validly tender their Notes pursuant to the Offers will be deemed to have validly delivered their consents related to such Notes. Tendered Notes may not be withdrawn, and consents may not be revoked, after Dec. 5, 2007. The total consideration per $1,000 principal amount of the Notes validly tendered and not validly withdrawn at or prior to Dec. 5, 2007 (Total Consideration) will be an amount equal to the sum of: -- the present value on Dec. 20, 2007, of the applicable Next Redemption Price on the applicable Next Redemption Date, and -- the present value on Dec. 20, 2007, of the amount of interest that would accrue from the last date on which interest has been paid until the applicable Next Redemption Date minus: -- accrued and unpaid interest from the last date on which interest has been paid up to, but not including, Dec. 20, 2007. The discount rate for calculating the present value is based on a fixed spread of 50 basis points over the yield as of 2 p.m. EST on Dec. 5, 2007, (Price Determination Date) of the applicable United States Treasury Security. The Total Consideration, payable on or about Dec. 20, 2007, includes a consent payment of $30 per $1,000 principal amount of the Notes to holders who validly tender the Notes, and thereby validly deliver consents related to the Notes, at or prior to Dec. 5, 2007. Holders whose Notes are validly tendered after Dec. 5, 2007, and accepted for purchase will receive the Total Consideration minus the $30 consent payment per $1,000 principal amount of the Notes promptly after Dec. 20, 2007. In addition, accrued and unpaid interest from the last interest payment date to, but not including, the applicable payment date will be paid on all validly tendered and accepted Notes. Each Offer and Consent Solicitation is made independently of the other Offers and Consent Solicitations. Lyondell and the Equistar Issuers reserve the right to terminate, withdraw or amend any Offer and Consent Solicitation, as applicable, independently of the other Offers and Consent Solicitations at any time and from time to time. The completion of the Offers and Consent Solicitations is not a condition to completion of the Merger, but the completion of the Merger is a condition, among other things, to the obligations of Lyondell or the Equistar Issuers, as applicable, to accept and pay for the Notes pursuant to the Offers and Consent Solicitations. The complete terms and conditions of the Offers and Consent Solicitations are set forth in the Offer to Purchase and Consent Solicitation Statement dated Nov. 20, 2007, which is being sent to holders of the Notes. Holders are urged to carefully read the Offer and Consent Statement and related materials. Goldman, Sachs & Co. and Merrill Lynch & Co. are the dealer managers for the Offers and solicitation agents for the Consent Solicitations. Questions regarding the Offers and Consent Solicitations may be directed to Goldman, Sachs & Co. at (877) 686-5059 (toll-free) [(212) 357-0775 (collect)] and Merrill Lynch & Co. at (888) 654-8637 (toll-free) [(212) 449-4914 (collect)]. Copies of the Offer and Consent Statement and related materials may be obtained from the Information Agent, D. F. King & Co., Inc. at (800) 290-6429 (U.S. toll free) and (212) 269-5550 (Banks and Brokers). About Lyondell 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. LYONDELL CHEMICAL: Shareholders Approve Basell Merger Plan ---------------------------------------------------------- Lyondell Chemical Company's shareholders approved, at a Special Meeting of Shareholders held Nov. 20, 2007, the Agreement and Plan of Merger, dated as of July 16, 2007, among Basell AF, BIL Acquisition Holdings Limited and Lyondell pursuant to which Basell will acquire all of Lyondell's outstanding common shares for cash consideration of $48 per share. In the final vote count by the independent inspectors of election, 168,008,513 Lyondell common shares (approximately 66.2% of the outstanding common shares) were represented at the Meeting, in person or by proxy, and the Agreement and Plan of Merger was approved by 65.8% of the shares outstanding. The closing of the transaction is anticipated to occur on or about Dec. 20, 2007. 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. MAJESTIC STAR: Setp. 30 Balance Sheet Upside-Down by $157.4 Mil. ---------------------------------------------------------------- The Majestic Star Casino, LLC released financial results for the three- and nine-month periods ended Sept. 30, 2007. The Majestic Star Casino, LLC and its subsidiaries operate two adjacent dockside gaming facilities located in Gary, Indiana, and two Fitzgeralds brand casinos located in Tunica, Mississippi and Black Hawk, Colorado. At Sept. 30, 2007, the company's balance sheet showed total assets of $509.3 million and total liabilities of $666.7 million, resulting in a stockholders' deficit of $157.4 million. Deficit at Dec. 31, 2006, was $139.5 million. The company expects to report a net loss of $7.1 million compared to a net loss of $5.8 million for the same period in 2006. The $1.3 million increase in net loss from the three months ended Sept. 30, 2006 was mainly due to increased operating expenses totaling $4.5 million, primarily from casino, food and beverage, advertising and promotion, and general and administrative expenses, offset by the increased net revenue discussed above and by a decline in gaming taxes. The company's net revenues for the three-month period ended Sept. 30, 2007 were $89.9 million, an increase of $3.5 million, or 4.0%, from the same period in 2006. Casino revenues decreased $4.8 million, or 5.0%, to $90.1 million. The Majestic Properties contributed an increase in net revenues of $4.0 million and a decrease in casino revenues of $2.7 million. At Fitzgeralds Tunica, we experienced higher net revenues of $0.3 million and lower casino revenues of $1.4 million, and at Fitzgeralds Black Hawk, net and casino revenues decreased by $0.8 million and $0.7 million, respectively. The company expects to report a net loss of $15.7 million compared to a net loss of $4.8 million for the same period in 2006. The $10.9 million increase in net loss was again primarily due to increased operating expenses of $12.4 million, with the principal increases coming in the areas of casino, food and beverage, and advertising and promotional expenses, and a loss on sale and write-down of slot machines. A $1.2 million increase in interest expense also contributed to the company's net loss. Partially offsetting the increased expenses was the $2.6 million increase in net revenues, and a $1.1 million decline in gaming taxes. The company's net revenues for the nine-month period ended Sept. 30, 2007 were $274.5 million, an increase of $2.6 million, or 1.0%, from the same period in 2006. Casino revenues decreased $7.3 million, or 2.5%, to $281.3 million. The Majestic Properties contributed an increase in net and casino revenues of $4.5 million and $0.4 million, respectively. At Fitzgeralds Tunica, net revenues increased $0.2 million, while casino revenues declined $5.6 million from the prior year, and at Fitzgeralds Black Hawk, we experienced lower net and casino revenues of $2.2 million and $2.1 million, respectively. Total cash and cash equivalents at Sept. 30, 2007 was $31.1 million as compared to $25.5 million at Dec. 31, 2006. Total debt outstanding at Sept. 30, 2007 and Dec. 31, 2006 was $541.7 million and $546.0 million, respectively, exclusive of $56.0 million and $51.1 million, respectively, of discount notes "pushed-down" to the company from its parent, Majestic Holdco, LLC, pursuant to the guidelines of SEC Staff Accounting Bulletin 73 Topic 5(J). The company had $38.5 million available on its $80.0 million credit facility at Sept. 30, 2007. About Majestic Star Headquartered in Las Vegas, Nevada, Majestic Star Casino LLC -- http://www.majesticstar.com/-- directly and indirectly owns and operates riverboat casinos in Gary, Indiana; Tunica, Mississippi; and Black Hawk, Colorado. Majestic Star Holdco LLC, owns 100% of Majestic Star Casino LLC. Mr. Barden indirectly holds 100% of the company's membership interests. * * * As reported in the Troubled Company Reporter on Nov. 15, 2007, Moody's Investors Service lowered Majestic Holdco, LLC's B2 corporate family and B2 probability of default rating to B3 while its 12-1/2% discount notes were lowered to Caa2 (LGD-6, 95%) from Caa1 (LGD-6, 95%). Majestic Holdco's rating outlook is negative. The Majestic Star Casino, LLC's senior secured note rating was lowered to B2 (LGD-3, 34%) from B1 (LGD-3, 33%) while its senior unsecured note rating was lowered to Caa2 (LGD-5, 80%) from Caa1 (LGD-5, 80%). As reported in the Troubled Company Reporter on Oct. 29, 2007, Standard & Poor's Ratings Services lowered its corporate credit rating on Majestic Star Casino LLC to 'B-' from 'B'. This and other ratings on the company were removed from CreditWatch, where they were placed Sept. 10, 2007 with negative implications. The rating outlook is negative. At the same time, Standard & Poor's lowered its issue-level rating on Majestic Star's $80 million senior secured revolving credit facility to 'B+' from 'BB-'. The recovery rating on this debt remains at '1', indicating the expectation for very high (90% to 100%) recovery in the event of a payment default. In addition, the rating on Majestic Star's 9.75% senior unsecured notes and parent holding company Majestic Holdco LLC's senior discount notes was lowered to 'CCC' from 'CCC+'. The rating on the company's 9.5% senior secured notes was affirmed at 'B+' to reflect Standard & Poor's revisions to its recovery rating scale and issue-level rating framework, which were announced earlier this year. The recovery rating on this secured debt also remains at '1'. MARSHALL HOLDINGS: Posts $711,208 Net Loss in Third Quarter ----------------------------------------------------------- Marshall Holdings International Inc. reported a net loss of $711,208 on sales of $454,649 for the third quarter ended Sept. 30, 2007, compared with a net loss of $841,957 on sales of $1.6 million in the same period last year. The decrease in sales mainly reflects the company's inability to fill orders due to the lack of operating capital. The decrease in net loss primarily attributable to a decrease in selling, general and administrative expenses for the period. The company's consolidated balance sheet at Sept. 30, 2007, showed $14.5 million in total assets, $13.4 million in total liabilities, and $1.1 million in net stockholders' equity. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $5.2 million in total current assets available to pay $11.3 million in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?25b3 Going Concern Doubt As reported in the Troubled Company Reporter on May 2, 2007, Madsen & Associates CPA's Inc. expressed substantial doubt about Marshall Holdings International Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements as of the year ended Dec. 31 2006. The auditing firm pointed to the company's significant recurring losses, negative cash flows from operations, and working capital deficiency. About Marshall Holdings Headquartered in Las Vegas, Nevada, Marshall Holdings International Inc. fka Gateway Distributors Ltd. (OTC BB: MHII.OB) -- http://www.mhii.net/-- is a distributor of vitamins, nutritional supplements, whole health foods and skin care products mainly in the United States of America and Canada, with some sales in Russia and Indonesia. MATTRESS USA OF VA: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Mattress USA of Virginia, LLC c/o Christopher T. Farrar, Treasurer 9632 Kingscroft Drive Glen Allen, VA 23060 Bankruptcy Case No.: 07-72769 Chapter 11 Petition Date: November 21, 2007 Court: Eastern District of Virginia (Norfolk) Judge: David H. Adams Debtor's Counsel: Harry W. Jernigan, III, Esq. Harry Jernigan CPA Attorney, P.C. 258 North Witchduck Road, Suite C Virginia Beach, VA 23462 Tel: (757) 490-2200 Fax: (757) 490-0280 Estimated Assets: $100,000 to $1 Million Estimated Debts: $1 Million to $100 Million Debtor's list of its 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Serta Mattress Co. $288,754 8415 Ardmore Road Hyattsville, MD 20785 Spears Mattress Company $152,881 195 Chatillion Road Rome, GA 30161 Paramount Industrial Companies $50,777 1112 Kingwood Avenue Norfolk, VA 23502 Wachovia Bank $50,000 United Sleep Products $46,615 Consolidated Bedding, Inc. $43,119 Sinclair Communications $39,686 Commonwealth Associates Lynnhaven, LLC $38,335 East Coast Investment Co. $31,711 Goodman Properties, Inc. $30,159 The Simmons Manufacturing Co., LLC $26,351 Daily Press $19,550 Protecta-A-Bed North America $17,855 Bowlin Court, LLC $15,894 Radio Disney $14,718 WAFX $13,600 L&P Financial Services $12,205 Virginia Department of Taxation $11,000 Latex International $9,632 SL Nusbaum Realty Co. $7,604 MORRIS LUMBER: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Morris Lumber Company, Inc. 318 Midland Street Somerville, TN 38068 Bankruptcy Case No.: 07-13801 Chapter 11 Petition Date: November 21, 2007 Court: Western District of Tennessee (Jackson) Judge: G. Harvey Boswell Debtor's Counsel: Michael T. Tabor, Esq. 203 South Shannon P.O. Box 2877 Jackson, TN 38302-2877 Tel: (731) 424-3074 Total Assets: $583,950 Total Debts: $1,132,400 Debtor's list of its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Bancorp South 1995 GMC 2 Ton $470,000 16225 Highway 64 Dump Truck Secured: Somerville, TN 38068 $7,500 Boise Building Solutions $55,475 P.O. Box 120001 Department 0640 Dallas, TX 75312-0640 Central Woodwork, Inc. $32,139 P.O. Box 1819 Memphis, TN 38101-1819 Georgia Pacific Corporation $27,847 Somerville Bank & Trust $26,905 Raney Truss $20,145 Moore-Handley, Inc. $19,587 General Shale Brick $16,482 MW Manufacturers, Inc. $13,124 Benjamin Moore Paints $11,709 Camco Roofing Supplies $9,025 First Equity Card $6,316 Sears $5,196 Wells Fargo $4,877 Materials Packing Corp. $3,851 Southern Fastening $3,833 Home Depot Credit Services $3,677 Southern Concrete Products $2,565 Industrial Products Co. $2,143 Office Depot Credit Plan $1,920 MYSTIQUE ENERGY: Posts CDN$3.3 Mil. Net Loss in Third Quarter 2007 ------------------------------------------------------------------ Mystique Energy Inc. reported its financial and operational results for the three month and nine month periods ended Sept. 30, 2007. The company had a negative cash flow of CDN$178,600 in the third quarter of 2007, compared to CDN$427,000 for the third quarter of 2006. It incurred a net loss of CDN$3,381,800, compared to $81,800 for the second quarter of 2006. Revenues for the third quarter of 2007 were CDN$362,167,000, as compared with CDN$930,091,000 for the third quarter of 2006. As of Sept. 30, 2007, the company had total assets of CDN$10,993,271, total liabilities of CDN$10,683,760, resulting in total stockholders' equity of CDN$309,511. Mystique has a working capital deficiency of CAD712,889 at the end of the third quarter 2007, compared to a working capital deficiency of CDN$19,484,605 at the end of the same period for 2006. As a result of selling all of the remaining petroleum and natural gas properties in the third quarter the company paid the remaining amount of the revolving loan facility, as compared to CDN$6,341,571 for the same period 2006. As of Nov. 23, 2007, there are 59,840,682 shares outstanding. Developments in the Third Quarter 2007 During the third quarter the company executed a letter of intent for a business combination with a private company. The company also filed a plan of arrangement on Nov. 19, 2007, with Alberta Court of Queen's Bench pursuant to an order granted by the Court on April 24, 2007 for creditor protection under the Companies' Creditors Arrangement Act. The initial Court order granting creditor protection under CCAA was extended until Jan. 31, 2008. Mystique will present the Plan to creditors for consideration on Dec. 19, 2007. A complete copy of the financial and operating results is downloadable for free at http://ResearchArchives.com/t/s?25b4 About Mystique Energy Headquartered in Alberta, Canada, Mystique Energy Inc. -- http://www.mystiqueenergy.ca/-- (TSXV: MYS) is a junior oil & gas company focused on exploration and development of petroleum and natural gas reserves, with production in western Alberta. From April 24, 2007 and until Oct 15, 2007, the company was under the Companies Creditors Arrangement Act, R.S.C. 1985, c. C-36, as Amended. The Court appointed Ernst & Young Inc. to act as officer of the Court to monitor the business and affairs of the company until discharged by the Court. NETBANK INC: Court OKs GGG Inc. as Crisis & Restructuring Managers ------------------------------------------------------------------ The United States Bankruptcy Court for the Middle District of Florida gave NetBank Inc. permission to employ GGG Inc. as its crisis and restructuring managers. As the Debtor's crisis and restructuring managers, GGG Inc. is expected to: a) review and evaluate the Debtor's operations, business plans and financial projections with the objective of assisting the Debtor to improve operating performance and enhance enterprises values; b) assist management in designing and implementing programs to manage or divest assets, improve operations, reduce costs and restructure as necessary with the objective of rehabilitating the Debtor's business; c) assist the Debtor and it counsel in negotiation with significant creditors or interested third parties regarding debtor-in-possession financing, use of cash collateral or other form of financing; d) assist in the preparation of the Debtor's schedules of assets and liabilities and statement of financial affairs; e) advise the Debtor concerning interfacing with statutory committees, their constituencies and their professionals, including the preparation of financial and operating information required by the parties, the Court or both; f) advise and assist management in the development of a plan(s) of reorganization and underlying business plans, including the related assumptions and rationale, along with other information to be included in the disclosure statement; g) advise and assist the Debtor in forecasting, planning, controlling and other aspects of managing cash; h) advise the Debtor with respect to resolving claims disputes and otherwise managing the claims process; i) render, as requested, expert testimony concerning the feasibility of a plan(s) of reorganization and other matters that may arise in the case; j) assist with the marketing of the Debtor's assets, including but not limited to its affiliate, MG Reinsurance Company; and k) provide other services as may be required by Debtor. The Debtor tells the Court that the firm was previously retained to analyze its prospects for an operating and financial rehabilitation and recommend strategies for maximizing returns to creditors before it filed for bankruptcy. The Debtor further says that the firm received $27,500 retainer for the initial assessment services. In addition, the firm also received a $100,000 retainer for professional fees and $10,000 for expenses. Lee N. Katz, the firm's managing partner, bills $395 per hour for this engagement, while the firm's other professionals charge $295 per hour for service rendered. Mr. Katz assures the Court that the firm does not hold any interest adverse to the Debtor's estate and is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Mr. Katz can be reached at: Lee N. Katz Managing Partner GGG, Inc. (Grisanti, Galef & Goldress) 333 Sandy Springs Circle Suite 106 Atlanta, GA 30328 Tel: (404) 256-0003 Fax: (404) 256-4555 http://www.gggmgt.com/ Headquartered in Jacksonville, Florida, NetBank Inc. -- http://www.netbank.com/-- is a financial holding company of Netbank, the United States' 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. As of Sept. 25, 2007, Debtor listed total assets at $87,213,942 and total debts at $42,245,857. NETBANK INC: U.S. Trustee Appoints Six-Member Creditors Committee ----------------------------------------------------------------- The U.S. Trustee for Region 21 appointed six creditors to serve on an Official Committee of Unsecured Creditors for NetBank Inc.'s Chapter 11 bankruptcy case. The Creditors Committee members are: a) Jerald W. McCoy 4429 Swilcan Bridge Lane Jacksonville, FL 32224 Tel: (904) 535-3205 Fax: (866) 422-0010 b) William M. Ross 2701 Forest Circle Jacksonville, FL 32257 Tel: (904) 864-5323 Fax: (347) 823-5085 c) Theodore Brauch 24541 Indian Midden Way Ponte Vedra Beach, FL 32082 Tel: (904) 285-6796 d) Chip S. Register 208 White Birch Circle Columbia, SC 29233 Tel: (303) 968-8039 Fax: (303) 790-9784 e) Wilmington Trust Company c/o James J. McGinley 520 Madison Avenue, 33rd Floor New York, NY 10022 Tel: (212) 415-0522 Fax: (212) 415-0513 f) Wells Fargo Bank c/o James R. Lewis 45 Broadway, 14th Floor New York, NY 10006 Tel: (212) 515-5258 Fax: (866) 524-4681 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. Headquartered in Jacksonville, Florida, NetBank Inc. -- http://www.netbank.com/-- is a financial holding company of Netbank, the United States' 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. As of Sept. 25, 2007, Debtor listed total assets at $87,213,942 and total debts at $42,245,857. NEXTPHASE WIRELESS: Sept. 30 Balance Sheet Upside-Down by $3 Mil. ----------------------------------------------------------------- NextPhase Wireless Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $2,023,605 in total assets and $5,060,729 in total liabilities, resulting in a $3,037,124 total shareholders' deficit. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $336,349 in total current assets available to pay $5,031,496 in total current liabilities. The company reported a net loss of $705,012 on total revenue of $511,454 for the second quarter ended Sept. 30, 2007, compared with a net loss of $411,968 on total revenue of $636,426 in the same period ended Sept. 30, 2006. The operating loss for the company for the three months ended Sept. 30, 2007, was $708,388 versus $342,062 for the same period in the prior year. This was an increase of $366,326 of which $205,152 of the increase was for non-cash items. Gain on settlement of liabilities was $70,282 during the three months ended Sept. 30, 2007. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?25ae Going Concern Doubt KMJ Corbin & Company LLP in Irvine, California, expressed substantial doubt about NextPhase Wireless' ability to continue as a going concern after auditing the the company's consolidated financial statements for the year ended March 31, 2007. The auditing firm pointed to the company's working capital deficiency and losses from operations. About NextPhase Wireless Headquartered in Anaheim, California, NextPhase Wireless Inc. (OTC BB: NXPW) -- http://www.npwireless.com/-- currently provides wireless broadband coverage in California and Nevada and Internet Service Provider coverage in 19 states throughout the Unites States. PROVIDENCE SERVICE: Earns $3.2 Million in Quarter Ended Sept. 30 ---------------------------------------------------------------- The Providence Service Corporation reported financial results for the third quarter ended Sept. 30, 2007. Net income was $3.2 million in the quarter ended Sept. 30, 2007, in line with guidance issued in conjunction with the release of second quarter results. In the year ago quarter ended Sept. 30, 2006, net income was $2.7 million. For the third quarter of 2007, the company reported revenue of $63.7 million, an increase of 35% from $47.1 million for the comparable period in 2006 and up sequentially from $62.3 million in the second quarter of 2007 despite the seasonal loss of approximately $1.0 million per month of school based revenue. Operating income was $5.5 million in the quarter, a 27% increase over $4.3 million in the year ago period. Providence's direct client census grew to over 46,000 at Sept. 30, 2007 from nearly 22,000 at Sept. 30, 2006. The number of direct contracts increased to 455 at Sept. 30, 2007 from 341 at Sept. 30, 2006. The company continued to report 100% contract renewal for the period, although certain contracts that renewed beginning on July 1 were consolidated, leading to the decline in the number of direct contracts from June 30, 2007, but not the associated census. Managed entity revenue, which represents revenue of the not-for- profit social services organizations the Company provides management and/or administrative services to in return for a negotiated management fee, increased 13% to $54.4 million for the quarter ended Sept. 30, 2007 from $48.0 million for the prior year period. Managed entity revenue is presented to provide investors with an additional measure of the size of the operations under Providence's management or administration and can help investors understand trends in management fee revenue. Managed client census grew to nearly 24,000 at Sept. 30, 2007 as compared to approximately 23,000 at Sept. 30, 2006. Contracts of managed entities grew from 300 to 318 year over year. For the first nine months of 2007, revenue increased 37% to $186.5 million from $135.9 million for the year ago period. Operating income gained 17% to $16.8 million for the nine month period compared to $14.4 million in the first nine months of 2006. Net income was $10.1 million for the nine month period ended Sept. 30, 2007, compared to net income of $8.7 million for the nine months ended Sept. 30, 2006. Managed entity revenue was $165.1 million and $137.2 million in the first nine months of 2007 and 2006, respectively. "This quarter's performance was in line with where we thought we would be and we remain on track for the full year," Fletcher McCusker Chairman and CEO, said. "We are thrilled with our 100% contract renewal rate in the quarter and our performance getting contracts negotiated and signed during the July fiscal year transition. We are happy to report that we have renewed all of our school based business and added approximately $2 million of additional organic growth from the July procurement cycle. Also, since the end of the last quarter we acquired substantially all of the assets of Family & Children's Services, Inc. in Pennsylvania and acquired WCG International Consultants Ltd in Canada, the integration of which are going as planned. And we announced the signing of a merger agreement and arrangement of financing for our largest acquisition ever, which we believe will create a significant platform for growth in 2008 and beyond." At Sept. 30, 2007, the company's balance sheet showed total assets of $218.1 million and total liabilities of $47.5 million, resulting in a stockholders' equity of $170.6 million. Equity at Dec. 31, 2006, was $192.3 million. Headquartered in Tucson, Arizona, Providence Service Corporation (Nasdaq: PRSC) -- http://www.provcorp.com/-- provides and manages government sponsored social services. * * * As reported in the Troubled Company Reporter on Nov. 15, 2007, Moody's Investors Service assigned a B2 Corporate Family Rating to Providence Service Corporation. Concurrently, Moody's also assigned a B1 to the company's proposed senior secured credit facilities comprised of these: $40 million senior secured revolver, $173 million senior secured term loan and a $40 million delayed draw term loan. Additionally, Moody's assigned a B2 Probability of Default Rating and an SGL-2 Speculative Grade Liquidity Rating. The outlook for the ratings is stable. Standard & Poor's Ratings Services assigned its 'B+' corporate credit rating to Tucson, Arizona-based home- and community-based social services provider Providence Service Corp. The outlook is stable. At the same time, Standard & Poor's assigned its bank loan and recovery ratings to Providence's proposed first-lien credit facilities, consisting of a $40 million revolving credit facility, a $173 million term loan, and a $40 million delayed-draw term loan. The credit facilities are rated 'BB', with a recovery rating of '1', indicating the expectation for very high (90%-100%) recovery in the event of a payment default. QUEBECOR WORLD: Moody's Puts B3 Corp. Family Rating Under Review ---------------------------------------------------------------- Moody's Investors Service placed Quebecor World Inc.'s long term debt ratings on review for possible downgrade and downgraded the company's speculative grade liquidity rating to SGL-4 (indicating poor liquidity). The rating action responds to the company's Nov. 20 announcement that "adverse current financial market conditions" had caused it to withdraw "its refinancing plan involving an offer of approximately CDN$250 million of its equity shares, an offer on a private placement basis of an aggregate of $500 million of new debt securities and amendments to the Company's secured credit facilities". In combination with the benefits of a pending partial divestiture of its European operations, these steps would have significantly improved the company's liquidity position. With the refinancing transaction having been cancelled, the company's financing arrangements require prompt attention in order to assure ongoing orderly operations, and Moody's considers near term default risk and, therefore, QWI's long term debt ratings, to be inextricably linked to the company's ability to normalize its financing arrangements. Moody's intends to review the company's financing/liquidity plans in short order, with any resulting rating action being based on likely effectiveness and prospects for timely execution. With QWI appearing to be on the verge of generating modest positive cash flow as the cash drain related to its extensive retooling exercise nears completion, presuming that the company's financing/liquidity plans are viable, Moody's would affirm the existing B3 corporate family rating and Caa1 instrument ratings. Should this not be the case, downwards ratings actions are likely. Downgrades: Issuer: Quebecor World, Inc. -- Speculative Grade Liquidity Rating, Downgraded to SGL-4 from SGL-3 -- Senior Unsecured Regular Bond/Debenture, (unchanged at Caa1) Downgraded to LGD4, 66 from LGD4, 60 Issuer: Quebecor World Capital Corporation -- Senior Unsecured Regular Bond/Debenture, (unchanged at Caa1) Downgraded to LGD4, 66 from LGD4, 60 Issuer: Quebecor World Capital ULC -- Senior Unsecured Regular Bond/Debenture, (unchanged at Caa1) Downgraded to LGD4, 66 from LGD4, 60 On Review for Possible Downgrade: Issuer: Quebecor World, Inc. -- Corporate Family Rating, Placed on Review for Possible Downgrade, currently B3 -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Caa1 -- Probability of Default Rating, Placed on Review for Possible Downgrade, currently B3 Issuer: Quebecor World Capital Corporation -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Caa1 Issuer: Quebecor World Capital ULC -- Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Caa1 Outlook Actions: Issuer: Quebecor World, Inc. -- Outlook, Changed to Rating Under Review from Stable Issuer: Quebecor World Capital Corporation -- Outlook, Changed to Rating Under Review from Stable Issuer: Quebecor World Capital ULC -- Outlook, Changed to Rating Under Review from Stable Withdrawals: Issuer: Quebecor World, Inc. -- Senior Unsecured Regular Bond/Debenture, Withdrawn, previously rated Caa1 (LGD4, 60) In addition, QWI noted it "will continue to evaluate financing alternatives, including the issuance of equity and debt securities when conditions are more favourable, asset sales and sale leaseback transactions and explore other alternatives. To that effect, the Board will hire independent financial advisors." QWI's major shareholder, Quebecor Inc., (holds 85% of the voting rights and 35.6% of QWI's economic equity) has indicated that it "will cooperate in the exploration of other alternatives that will be examined by the Quebecor World board." This has raised conjecture of QWI being sold. Moody's is not aware that any such activities are being pursued. Irrespective, while a sale may have an impact on QWI's future ratings, until a transaction becomes certain, it will have no immediate ratings' impact. In the interim, developments will be monitored and assessed as they occur. In addition to the above matters, Moody's withdrew the instrument ratings related to the cancelled debt issue and implemented minor revisions to loss given default ratings. Headquartered in Montreal, Quebec, Canada, Quebecor World Inc. is one of the world's largest commercial printers. SECURITY WITH: Scott Sutton Resigns as President and Director ------------------------------------------------------------- Security With Advanced Technology Inc., in a regulatory filing with the Securities and Exchange Commission dated Nov. 21, 2007, disclosed that Scott Sutton, president and a director the company, delivered on Nov. 16, 2007, written notice indicating that he was resigning his positions with the company effective Dec. 21, 2007. On Nov. 21, 2007, the company accepted Mr. Sutton's resignations effective immediately, although the company has agreed, subject to certain conditions, to pay Mr. Sutton's base salary and provide Mr. Sutton with benefits under the terms of his employment agreement through Dec. 21, 2007. Although Mr. Sutton's notice stated that he was resigning for "good reason", as such term is defined in Mr. Sutton's employment agreement, the company disagrees that there is any basis for such a termination and has so notified Mr. Sutton. Accordingly, following Dec. 21, 2007, the company does not expect to have any material ongoing obligations to Mr. Sutton. The company does not have immediate plans to fill Mr. Sutton's positions as the president and a director of the company. About Security With Headquartered in Westminster, Colorado, 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 reported a net loss of $6.1 million for the third quarter ended Sept. 30, 2007, compared with a net loss of $1.6 million in the same period last year. SECURITY WITH ADVANCED: Posts $6.1 Mil. Net Loss in Third Quarter ----------------------------------------------------------------- Security With Advanced Technology Inc. reported a net loss of $6.1 million on net sales of $421,601 for the third quarter ended Sept. 30, 2007, compared with a net loss of $1.6 million on net sales of $18,629 in the same period last year. The increase in sales between 2007 and 2006 is attributable to an increase in the revenues from the ShiftWatch division in 2007 of approximately $96,000, in addition to sales from Vizer and Avurt, acquired in 2007, that totaled approximately $307,100, for the three months ended Sept. 30, 2007. The net loss for the three months ended Sept. 30, 2007, included $381,404 in stock based compensation and $3.1 million in interest accretion on the convertible note offering completed in March and April 2007. Cost of sales for the three months ended Sept. 30, 2007, totaled $746,400, which is a $505,900 increase as compared to the 2006 period. The change in cost of sales primarily resulted from $325,600 of additional costs associated with the issues related to the ShiftWatch(TM) TVS DVR unit installation, testing and re-work costs that were incurred in 2007. The company's consolidated balance sheet at Sept. 30, 2007, showed $14.1 million in total assets, $2.9 million in total liabilities, and $11.2 million in total shareholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?25b1 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. About Security With Headquartered in Westminster, Colorado, 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. SEYCHELLE ENV'L: Aug. 31 Balance Sheet Upside-Down by $316,506 -------------------------------------------------------------- Seychelle Environmental Technologies Inc.'s consolidated balance sheet at Aug. 31, 2007, showed $1,058,562 in total assets and $1,375,068 in total liabilities, resulting in a $316,506 total shareholders' deficit. The company's consolidated balance sheet at Aug. 31, 2007, also showed strained liquidity with $893,803 in total current assets available to pay $900,893 in total current liabilities. The company reported a net loss of $225,483 on sales of $150,375 for the second quarter ended Aug. 31, 2007, compared with a net loss of $283,782 on sales of $219,024 in the same period ended Aug. 31, 2006. The decrease in sales is attributable to a decrease in sales to Wellness Enterprises during the quarter. Sales to Wellness Enterprises during the three-month period ended Aug. 31, 2007, approximated $1,000 compared to $91,000 in sales for the three- month period ended Aug. 31, 2006. The decrease in net loss was primarily due to a decrease in interest expense which was partly offset by an increase in general and administrative expenses. Full-text copies of the company's consolidated financial statements for the quarter ended Aug. 31, 2007, are available for free at http://researcharchives.com/t/s?25b2 About Seychelle Environmental Based in San Juan Capistrano, California, Seychelle Environmental Technologies Inc. (PNK: SYEV.PK) -- http://www.seychelle.com/-- designs and manufactures state-of-the-art ionic adsorption micron filters that remove up to 99.99% of all pollutants and contaminants found in any fresh water source. Patents or trade secrets cover all proprietary products. SHAFFER & SON: Voluntary Chapter 11 Case Summary ------------------------------------------------ Debtor: Shaffer & Son, Inc. P.O. Box 710 Hershey, PA 17033-0710 Bankruptcy Case No.: 07-03724 Type of Business: The Debtor builds and remodels townhouses, single- and multi-family homes, and residential developments. See http://www.shafferandson.com/ Chapter 11 Petition Date: November 21, 2007 Court: Middle District of Pennsylvania (Harrisburg) Debtor's Counsel: Leslie David Jacobson, Esq. 8150 Derry Street, Suite A Harrisburg, PA 17111 Tel: (717) 909-5858 Fax: (717) 909-7788 Estimated Assets: $1 Million to $100 Million Estimated Debts: $1 Million to $100 Million The Debtor did not file a list of its 20 largest unsecured creditors. SIENA TECH: Sept. 30 Balance Sheet Upside-Down by $3.5 Million -------------------------------------------------------------- Siena Technologies Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $9.9 million in total assets and $13.4 million in total liabilities, resulting in a $3.5 million total stockholders' deficit. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $2.0 million in total current assets available to pay $3.5 million in total current liabilities. The company reported a net loss of $799,124 on sales of $2.2 million for the third quarter ended Sept. 30, 2007, compared with a net loss of $954,853 on sales of $4.2 million in the same period of 2006. The decrease in sales primarily reflects the final sales that were recorded in the three months ended Sept. 30, 2006, on an $8.0 million contract. In addition, many of the new business prospects the company has been pursuing have either cancelled or delayed their construction projects in Las Vegas. Operating expenses for the three months ended Sept. decreased to $887,093 compared to $1.3 million for the three months ended Sept. 30, 2006. Other expenses for the three months ended Sept. 30, 2007, totaled $299,982 compared to $684,430 for the three months ended Sept. 30, 2006. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?25af Going Concern Doubt Jaspers + Hall PC, in Denver, Colorado, expressed substantial doubt about Siena Technologies Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm reported that the company has an accumulated deficit of $32.3 million at Dec. 31, 2006, and is generating losses from operations. The continuing losses have adversely affected the liquidity of the company. About Siena Technologies Headquartered in Las Vegas, Siena Technologies (OTC BB: SIEN.OB) through its subsidiary, Kelley Communication Company Inc., engages in the design, development, and integration of automated system networks primarily for the gaming, entertainment, and luxury residential markets in the United States. Its systems networks include data, telecommunications, audio and video components, casino surveillance, security and access control systems, entertainment audio and video, special effects, and multi-million dollar video conference systems. The company also designs and fabricates servers, routers, and other control equipment that run the systems. In addition, it provides consulting, design, and project management services to its customers. SPECIALTY ORIENT: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Specialty Orient Foods, Inc. 20 Viscaya Court Wayne, NJ 07470 Bankruptcy Case No.: 07-27149 Type of Business: The Debtor is engaged in the food business. Chapter 11 Petition Date: November 20, 2007 Court: District of New Jersey (Newark) Judge: Donald H. Steckroth Debtor's Counsel: Lawrence Morrison, Esq. 220 East 72nd Street New York, NY 10021 Tel: (212) 861-1224 Fax: (212) 809-0333 Estimated Assets: $1 Million to $100 Million Estimated Debts: $50,000 to $100,000 The Debtor did not file a list of its 20 largest unsecured creditors. STANDARD DRILLING: Posts $9,674,651 Net Loss in Third Quarter ------------------------------------------------------------- Standard Drilling Inc. reported a net loss of $9,674,651 for the third quarter ended Sept. 30, 2007, compared with a net loss of $1,443,556 in the same period last year. For the three months ended Sept. 30, 2007, the company had no revenues. Due to the its inability to obtain additional financing, the company has ceased all ongoing operations and are evaluating financing alternatives and strategic options. The increase in net loss is primarily attributable to the loss on sale of assets associated with the purchase and sale agreement for Rig 1 with Romfor and the September 24 Asset Purchase Agreement with PBT Capital Partners. At Sept. 30, 2007, the company's consolidated balance sheet showed $1,454,539 in total assets, $164,657 in total liabilities, and $1,289,882 in total shareholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?25ac Going Concern Doubt Moore & Associates, in Las Vegas, expressed substantial doubt about Standard Drilling 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 has commitments for the purchase of equipment that exceed available funds, has no revenues, and has generated operating losses since inception. About Standard Drilling Headquartered in Washington, D.C., Standard Drilling Inc. (OTC BB: STDRE.OB) was organized to provide contract land drilling services to independent and major oil and gas exploration and production companies. As of Sept. 30, 2007, the company ceased all ongoing operations and is evaluating financing alternatives and strategic options. On Sept. 24, 2007, Standard Drilling Inc. entered into an Asset Purchase Agreement with PBT Capital Partners LLC. Under the terms of the Asset Purchase Agreement, PBT Capital Partners LLC will assume substantially all of the company's assets and associated and contingent liabilities. TAL ENTERPRISES: Judge Paskay Dismisses Chapter 11 Case ------------------------------------------------------- The Honorable Alexander L. Paskay of the United States Bankruptcy Court for the Middle District of Florida dismissed TAL Enterprises LLC's Chapter 11 case. Richard Johnston, Jr., Esq., at Kiesel Hughes, & Johnston, points out that the issues underlying the Debtor's bankruptcy case have been resolved and there are no unsecured creditors who would benefit from the reorganization. Headquartered in Cape Coral, Florida, TAL Enterprises LLC ffers supervisory services of on-shore drilling rigs, as well as oil and gas planning, permitting, and production. The Company filed for Chapter 11 protection on Sept. 28, 2007 (Bankr. Case No. 07-09014). Richard Johnston, Jr., Esq., at Kiesel Hughes & Johnston, represents the Debtor in its restructuring efforts. When the Debtor filed for protection against its creditors, it listed total assets at $13,100,000 and total debts at $8,621,635. TEN GRAND: Case Summary & 13 Largest Unsecured Creditors -------------------------------------------------------- Debtor: Ten Grand Investment, Inc. 608 North Judd Street Honolulu, HI 96817 Bankruptcy Case No.: 07-01232 Chapter 11 Petition Date: November 20, 2007 Court: District of Hawaii (Honolulu) Judge: Robert J. Faris Debtor's Counsel: Stuart T. Ing, Esq. Law Office of Stuart T. Ing 345 Queen Street, Suite 900 Honolulu, HI 96813 Tel: (808) 778-3895 Fax: (808) 356-0256 Estimated Assets: $10,000 to $100,000 Estimated Debts: $1 Million to $100 Million Debtor's list of its 13 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ First Hawaiian Bank Bank Loan $688,000 Loan Recovery Department P.O. Box 4070 Honolulu, HI 96812 McCully Associates Promissory Note $500,000 1960 Kapiolani Boulevard Suite B-1 Honolulu, HI 96826 County of Kauai Trade Debt $9,000 Finance Department 444 Rice Street, Suite 463 Lihue, HI 96766-1340 First Fire & Casualty Insurance Trade Debt $8,500 Shea & Co., CPAs Trade Debt $3,000 Grace Morioka Trade Debt $2,000 Department of Taxation Trade Debt $1,500 State of Hawaii Clyde Hori Trade Debt $300 Puhi Sewer and Water Trade Debt $286 Kauai Island Utility Cooperative Trade Debt $220 Department of Water Trade Debt $216 Masato Hori Trade Debt $200 Kauai Publishing Company Trade Debt $150 TEXHOMA ENERGY: June 30 Balance Sheet Upside-Down by $3,122,566 --------------------------------------------------------------- Texhoma Energy Inc.'s consolidated balance sheet at June 30, 2007, showed $6,507,304 in total assets and $9,629,870 in total liabilities, resulting in a $3,122,566 total shareholders' deficit. The company's consolidated balance sheet at June 30, 2007, also showed strained liquidity with $1,049,118 in total current assets available to pay $1,474,590 in total current liabilities. The company reported a net loss of $445,023 on revenues of $500,531 for the third quarter ended June 30, 2007, compared with a net loss of $2,736,843 on revenues of $710,758 in the same period ended June 30, 2006. As a result of the continued Black Scholes modeling the company recognized a $151,000 reduction in related stock accretion expense at June 30, 2007, as compared with an expense of $1,459,000 for the quarter ended June 30, 2006, as stock warrants were issued during the quarter ended June 30, 2006. Going Concern Doubt GLO CPAs LLP, in Houston, expressed substantial doubt about Texhoma Energy Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Sept. 30, 2006, and 2005. The auditing firm reported that the company has recurring operating losses, negative working capital and is dependent on financing to continue operations. About Texhoma Energy Headquartered in Dallas, Texhoma Energy Inc. (Other OTC: TXHE.PK) engages in the exploration and production of crude oil and natural gas. It has a 6% participation agreement for the exploration and development of an area in Louisiana. TEXHOMA ENERGY: March 31 Balance Sheet Upside-Down by $3,115,823 ---------------------------------------------------------------- Texhoma Energy Inc.'s consolidated balance sheet at March 31, 2007, showed $6,460,403 in total assets and $9,576,226 in total liabilities, resulting in a $3,115,823 total shareholders' deficit. The company's consolidated balance sheet at March 31, 2007, also showed strained liquidity with $728,111 in total current assets available to pay $1,383,434 in total current liabilities. The company reported a net loss of $151,930 on revenues of $437,537 for the second quarter ended March 31, 2007, compared with a net loss of $153,302 on revenues of $466,137 in the same period in 2006. As a result of the continued Black Scholes modeling the company recognized a $273,000 reduction in related stock accretion expense at March 31, 2007, as compared with $-0- for the quarter ended March 31, 2006, as stock warrants were issued after the quarter ended March 31, 2006. The company incurred interest expense of $291,000 for the three months ended March 31, 2007, in connection with the payment of the Laurus Note as compared with interest expense of $13,000 for the three months ended March 31, 2006, reflecting the issuance of the note on March 28, 2006. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?25ab Going Concern Doubt GLO CPAs LLP, in Houston, expressed substantial doubt about Texhoma Energy Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Sept. 30, 2006, and 2005. The auditing firm reported that the company has recurring operating losses, negative working capital and is dependent on financing to continue operations. About Texhoma Energy Headquartered in Dallas, Texhoma Energy Inc. (Other OTC: TXHE.PK) engages in the exploration and production of crude oil and natural gas. It has a 6% participation agreement for the exploration and development of an area in Louisiana. THOMAS KICINSKI: Case Summary & 11 Largest Unsecured Creditors -------------------------------------------------------------- Debtors: Thomas P. Kicinski Carol O'Neal Kicinski 235 Edgewater Drive Dunedin, FL 34698 Bankruptcy Case No.: 07-11362 Chapter 11 Petition Date: November 21, 2007 Court: Middle District of Florida (Tampa) Judge: K. Rodney May Debtors' Counsel: Buddy D. Ford, Esq. Buddy D. Ford, P.A. 115 North MacDill Avenue Tampa, FL 33609 Tel: (813) 877-4669 Fax: (813) 877-5543 Total Assets: $1,321,539 Total Debts: $1,922,158 Debtors' list of its 11 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Regions Mftg. Homestead $480,711 fka AmSouth Secured: P.O. Box 18001 $550,000 Hattiesburg, MS 39404 Senior Lien: $130,000 William & Susan Karnowsky Loan $100,000 5012 Atlanta Street Anderson, IN 46013 Bank of America - Wilmington Credit Card $99,445 P.O. Box 15184 Wilmington, DE 19850-5184 Terry Johnston Loan $83,527 American Express Delta Credit Card $41,667 EMC Condominium A $47,516 Tampa, Florida Secured: $550,000 Senior Lien: $130,000 Condominium B $47,516 Tampa, Florida Secured: $210,000 Senior Lien: $190,959 Citibank Credit Card $36,326 Advanta Bank Corp. Fab Eventz $27,989 Florida Property $23,298 Pros Bank of America - Greensboro Credit Card $21,537 Chase Credit Card $19,400 Bank of America Credit Card $15,758 Discover Card Credit Card $14,566 Wells Fargo Credit Card $14,144 First Equity Card Credit Card $11,377 Chase (Hess) Credit Card $9,062 First National Bank - Omaha Credit Card $7,490 TOPPS MEAT: Liquidates Under Chapter 7 with New Jersey Court ------------------------------------------------------------ Topps Meat Company LLC filed for chapter 7 liquidation on Nov. 21, 2007, with the United States Bankruptcy Court for the District of New Jersey. The company disclosed assets and debts between $1 million to $100 million, various reports relate, citing documents filed with the Court. As reported in the Troubled Company Reporter on Oct. 8, 2007, Topps Meat was forced to close its Elizabeth plant and go out of business effective Oct. 5, 2007, due to the economic impact of the second-largest beef recall in U.S. history involving more than 21.7 million pounds of ground beef products. "This is tragic for all concerned," said Anthony D'Urso, Chief Operating Officer. "In one week we have gone from the largest U.S. manufacturer of frozen hamburgers to a company that cannot overcome the economic reality of a recall this large. We sincerely regret the impact this will have on our employees, our customers and suppliers, and the community. Most of all, we regret that our products have been linked by public health agencies to recently reported illnesses. We hope and pray for the full recovery of those individuals." A small number of the 87 employees will remain at the Elizabeth plant for an indefinite time to assist the U.S. Department of Agriculture in its ongoing investigation and to handle administrative matters, including ensuring the effectiveness of the recall. About Topps Meat Headquartered in Elizabeth, New Jersey, Topps Meat Company -- http://www.toppsmeat.com/-- manufactures and supplys branded frozen hamburgers and other portion controlled meat for supermarkets and merchandisers. TRUEYOU.COM: Amper Politziner Expreses Going Concern Doubt ----------------------------------------------------------- Edison, N.J.-based Amper, Politziner & Mattia, PC, raised substantial doubt about the ability of TrueYou.Com, Inc., to continue as a going concern after auditing the company's consolidated financial statements for the year ended June 30, 2007. The auditing firm pointed to the company's incurred operating losses and negative cash flows from operations since inception, and working capital deficit. TrueYou.Com posted a net income of $122,428,000 on $3,596,000 of net revenues for the year ended June 30, 2007, as compared with a net loss of $171,705,000 on $2,678,000 of net revenues in the prior year. At June 30, 2007, the company's balance sheet showed $15,295,000 in total assets and $86,767,000 in total liabilities, resulting in stockholders' deficit of $71,472,000. The company's consolidated balance sheet at June 30, 2007, also showed strained liquidity with $13,879,000 in total current assets available to pay $86,767,000 in total current liabilities. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?25ad About TrueYou.Com Inc. Headquartered in Norwalk, Conn., TrueYou.Com Inc., (Other OTC: TUYU.PK) -- http://www.klinger.com-- offers both medical and non- medical services and products to customers. The company co-brands its trade name with the trade names of the salons and spas that it acquired. The company offers its Cosmedicine skin care products at retail through its own location and at wholesale through Sephora stores and the internet. The company is developing and testing the Klinger 360A� Best Practices Aesthetics System(TM), a comprehensive software and hardware practice management system that facilitates the delivery of evidenced based "best practices" aesthetic services. UAL CORP: Pardus Urges Stock-for-Stock Merger with Delta -------------------------------------------------------- Pardus Capital Management LP, a New York hedge fund with more than $3,000,000,000 in assets, urged United Airlines and Delta Air Lines to merge next year in a stock-for-stock transaction, according to reports. The Chicago Tribune says former Continental Airlines Inc. CEO Gordon Bethune, an adviser to Pardus, led the 1 1/2-hour presentation for Delta and United's major shareholders. The meeting was hosted by Merrill Lynch & Co. According to The Wall Street Journal, Pardus, which purportedly owns 5,600,000 shares of UAL and 7,000,000 shares of Delta, said a combination of the No. 2 and No. 3 U.S. carriers by traffic, makes sense at a time when high fuel prices are threatening to wipe out U.S. carriers' newfound profitability. Combining United and Delta would create a global network that would be favored by business travelers and save about $585,000,000 a year by 2012, Pardus added, reports Bloomberg News. This is slightly less than the carriers' combined projected earnings of $629,000,000, says Chicago Business News. A United-Delta merger ideal also would steer more Delta passengers onto United's Pacific routes and more United passengers onto Delta's Latin American destinations, Chicago Business notes. "We believe it is imperative that you seek to enter into a merger transaction with another carrier given the rapid rise in fuel prices and the increased risk to the business as a stand-alone entity," Pardus President Karim Samii and Shane Larson, a principal, told Delta in a letter, reports Bloomberg. Pardus apparently studied mergers involving Delta and three other carriers before recommending United as "the most attractive and practical combination," Bloomberg adds. No Merger Talks "We appreciate receiving Pardus' views on the best course for Delta's future," Delta Air Lines CEO Richard Anderson said in a statement. "We have been consistent in our public statements that Delta believes that the right consolidation transaction could generate significant value for our shareholders and employees and that strategic options should be evaluated. With oil at over $90 a barrel, this analysis takes on a heightened importance as we factor those prices into our long-term planning process." However, Mr. Anderson denied reports ran by The Associated Press that it engaged in merger talks with United Airlines in early November. The AP, in its report, said, part of the United and Delta merger talks was a plan to keep the United name and corporate headquarters in Chicago. "There have been no talks with United regarding any type of consolidation transaction and there are no such ongoing discussions," Mr. Anderson said. "Delta will not speculate on possible airline consolidation and has reiterated its position on the issue." United Spokeswoman Jean Medina said, "We do not respond to wholly inaccurate statements made by people who claim to have knowledge when they clearly do not," reports Bloomberg. Moreover, the United Master Executive Council has established that there are no such talks between the two carriers, said Captain Mark Bathurst, Chairman of the United Master Executive Council. "The United pilots have made a significant investment in the future of our airline and have made it abundantly clear to management that we will be opposed to any transaction that does not fully recognize our sacrifices and contributions," said Captain Bathurst. "We will protect the interests and the future of United pilots. All interested parties should understand that any plans to merge or consolidate with Delta or any other carrier will not be met with a rubber stamp from this pilot group. "We also remind management -- and Wall Street -- that it is the pilots and other employees who have suffered under this management group. Interested parties need to recognize that the true assets of this corporation are the pilots and other employees and we will not sacrifice again to facilitate consolidation," Captain Bathurst added. About Delta Air Based in Atlanta, Georgia, Delta Air Lines Inc. (NYSE:DAL) -- http://www.delta.com/-- is the world's second-largest airline in terms of passengers carried and the leading U.S. carrier across the Atlantic, offering daily flights to 328 destinations in 56 countries on Delta, Song, Delta Shuttle, the Delta Connection carriers and its worldwide partners. Delta flies to Argentina, Australia and the United Kingdom, among others. The company and 18 affiliates filed for chapter 11 protection on Sept. 14, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-17923). Marshall S. Huebner, Esq., at Davis Polk & Wardwell, represents the Debtors in their restructuring efforts. Timothy R. Coleman at The Blackstone Group L.P. provides the Debtors with financial advice. Daniel H. Golden, Esq., and Lisa G. Beckerman, Esq., at Akin Gump Strauss Hauer & Feld LLP, provide the Official Committee of Unsecured Creditors with legal advice. John McKenna, Jr., at Houlihan Lokey Howard & Zukin Capital and James S. Feltman at Mesirow Financial Consulting, LLC, serve as the Committee's financial advisors. The Debtors filed a chapter 11 plan of reorganization and disclosure statement explaining that plan on Dec. 19, 2007. On Jan. 19, 2007, they filed revisions to the plan and disclosure statement, and submitted further revisions to the plan on Feb. 2, 2007. On Feb. 7, 2007, the Court approved the Debtors' disclosure statement. In April 2007, the Court confirmed the Debtors' plan. That plan became effective on April 30, 2007. The Court entered a final decree closing 17 cases on Sept. 26, 2007. As of Sept. 30, 2007, the company's balance sheet showed total assets of $32.7 billion and total liabilities of $23 billion, resulting in a US$9.7 billion stockholders' equity. At Dec. 31, 2006, deficit was $13.5 billion. About UAL Corp. Based in Chicago, Illinois, UAL Corporation (NASDAQ: UAUA) -- http://www.united.com/-- is the holding company for United Airlines, Inc. United Airlines is the world's second largest air carrier. The airline flies to Brazil, Korea and Germany. The company filed for chapter 11 protection on Dec. 9, 2002 (Bankr. N.D. Ill. Case No. 02-48191). James H.M. Sprayregen, Esq., Marc Kieselstein, Esq., David R. Seligman, Esq., and Steven R. Kotarba, Esq., at Kirkland & Ellis, represented the Debtors in their restructuring efforts. Fruman Jacobson, Esq., at Sonnenschein Nath & Rosenthal LLP represented the Official Committee of Unsecured Creditors before the Committee was dissolved when the Debtors emerged from bankruptcy. Judge Wedoff confirmed the Debtors' Second Amended Plan on Jan. 20, 2006. The company emerged from bankruptcy protection on Feb. 1, 2006. At Sept. 30, 2007, the company's balance sheet showed total assets of $25,608,000,000 and total liabilities of $22,968,000,000. * * * The company continues to carry Fitch Ratings' B- Issuer Default Rating. VISION DEVELOPMENT: Can Access Cash Collateral from CORUS Bank -------------------------------------------------------------- Vision Development Group of Broward County LLC obtained authority from the United States Bankruptcy Court for the Southern District of Florida for authority to use the cash collateral securing repayment of their obligations to CORUS Bank N.A. As reported in the Troubled Company Reporter on Nov. 7, 2007, the Debtor told the Court that it owed CORUS Bank approximately $9.2 million as of Aug. 20, 2007. The Debtor added that the bank asserts first priority liens and security interest in substantially all of the Debtor's assets. The Debtor will use the cash collateral to fund business, payroll payments and insurance expenses. As adequate protection, the Debtor will grant the bank replacement liens on postpetition collection, including, among others, rent generated by the Debtor's property. Headquartered in Sunrise, Florida, Vision Development Group of Broward County L.L.C. is a real estate developer. The company filed for Chapter 11 on Sept. 20, 2007 (Bankr. S.D. Fla. Case No. 07-17778). Peter D. Russin, Esq., Meland, Russin & Budwick P.A., represents the Debtor in its restructuring efforts. When the Debtor filed for protection against its creditors, it listed assets and debts of $1 million and $100 million. The Debtor's exclusive period to file a chapter 11 plan expires on Jan. 18, 2008. The Debtor's managing member, Isadore M. Cohen, also filed a voluntary chapter 11 petition on Sept. 20, 2007 (Bankr. S.D. Fla. Case No. 07-17779). VISION DEVELOPMENT: Court Approves Greenberg as Special Counsel --------------------------------------------------------------- The U.S. Bankruptcy Court for the Southern District of Florida gave authority to Vision Development Group of Broward County LLC authority to employ Greenberg Traurig LLP as its special counsel nunc pro tunc Sept. 20, 2007. As the Debtors' special counsel, Greenberg Traurig is expected to assist the Debtors with respect to these certain cases: i) Chelsey Funding LLC and TMG Sunrise LLC, Index No. 601301/06 pending in the Supreme Court of the State of New York, County of New York; ii) Chelsey Funding LLC and TMG Sunrise LLC, pending before the American Arbitration Association in Ft. Lauderdale, Florida; and iii) Madison Capital Group LLC, Timothy Martorella, and Russell Caplin, Case No. 06-17909CA31 currently pending in the Circuit Court of the Eleventh Judicial Circuit in and for Miami-Dade, Florida. Leslie D. Corwin, Esq., an attorney at Greenberg Traurig, tells the Court that the firm will bill the Debtor according to these rates: Professional Hourly Rate ------------ ----------- Leslie D. Corwin, Esq. $700 Senior Associate $450 Junior Associate $295 Mr. Corwin also said that the firm holds a pre-petition claim in the amount of $212,486.47 against the Debtor. Payments in the total amount of $50,458.09 have been received by the Debtor or on behalf of the Debtor within the 90 days prior to the Debtors' bankruptcy filing. To the best of the Debtor's knowledge the firm does not hold any interest adverse to the Debtor and its estate and is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Sunrise, Florida, Vision Development Group of Broward County L.L.C. is a real estate developer. The company filed for Chapter 11 on Sept. 20, 2007 (Bankr. S.D. Fla. Case No. 07-17778). Peter D. Russin, Esq., Meland, Russin & Budwick P.A., represents the Debtor in its restructuring efforts. When the Debtor filed for protection against its creditors, it listed assets and debts of $1 million and $100 million. The Debtor's exclusive period to file a chapter 11 plan expires on Jan. 18, 2008. The Debtor's managing member, Isadore M. Cohen, also filed a voluntary chapter 11 petition on Sept. 20, 2007 (Bankr. S.D. Fla. Case No. 07-17779). WATERFORD WEDGWOOD: Cost-Cutting Measures to Affect 1,400 Jobs -------------------------------------------------------------- Waterford Wedgwood Plc confirmed on Nov. 21, 2007, that it is cutting 490 jobs at its crystal plant in Waterford, Ireland, in an attempt to cut costs as expenses rise and the U.S. dollar drops, published reports say. According to Reuters, the move is part of a wider cost-cutting program across the company's operations worldwide that will lead to 1,400 jobs being cut. In an e-mailed statement to Bloomberg News, Jim Foley, head of the Waterford Crystal unit, said that manufacturing at the company's crystal plant became "untenable" due to high costs and unfavorable currency movements. "While I regret the loss of 490 jobs, it is imperative that we continue to focus on our remaining cost-competitive capabilities to secure the future of manufacturing in Ireland," Mr. Foley told Bloomberg. "I am confident it can be re-energized to achieve sustained profitability." Waterford Wedgwood spokesman Michael Dennehy did not disclose specific details on the job cuts, although he noted that the company was still working on raising cash to fund the job-cutting program. Chairman Tony O'Reilly said last month that Waterford would sell EUR100 million of preference shares, Bloomberg relates. Waterford Wedgwood, which owns china brands such as Wedgwood, Rosenthal and Royal Doulton as well as Waterford crystal, relies on the U.S. for about 40% of group sales, Reuters relates. Headquartered in Waterford, Ireland, Waterford Wedgwood plc -- http://www.waterfordwedgwood.com/-- manufactures premium- priced goods including crystal, ceramics and cookware. The company has leading positions in its key markets in the US, Europe and Japan. At Sept. 30, 2007, the Group's consolidated balance sheet showed EUR683.2 million in total assets, EUR767.7 million in total liabilities, and EUR84.5 million in stockholders' deficit. * * * Fitch Ratings has affirmed Waterford Wedgwood plc's Long-term Issuer Default Rating at 'CCC' and Short-term IDR at 'C'. The Outlook for the Long-term IDR is Negative. At the same time, the agency affirmed the senior secured debt rating at 'B-'/'RR2'. The mezzanine notes are affirmed at 'CC'/'RR6'. Waterford Wedgwood's 9-7/8% notes due 2010 carry junk ratings from Moody's Investors' Service's (Caa2), Standard & Poor's (CCC-), and Fitch Ratings (CC). These ratings apply to date. WESTBANK CHRISTIAN: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Westbank Christian Center, Inc. 16 Westbank Expressway Gretna, LA 70053 Tel: (985) 652-5087 Bankruptcy Case No.: 07-12297 Type of Business: The Debtor owns and operates a preschool. Chapter 11 Petition Date: November 21, 2007 Court: Eastern District of Louisiana (New Orleans) Judge: Jerry A. Brown Debtor's Counsel: Kerry D. Brown, Esq. 578 Belle Terre Boulevard LaPlace, LA 70068 Tel: (985) 652-5087 Fax: (985) 651-5087 Estimated Assets: $1 Million to $100 Million Estimated Debts: $100,000 to $1 Million The Debtor did not file a list of its 20 largest unsecured creditors. WILLIAM STREET: Case Summary & 18 Largest Unsecured Creditors ------------------------------------------------------------- Debtor: William Chris Street aka WM Chris Street aka William C. Street fdba Camelot Cleaners dba Mt Juliet Cleaners dba Kustom Cleaners 12184 Old Hickory Boulevard Hermitage, TN 37076 Bankruptcy Case No.: November 21, 2007 Type of Business: The Debtor filed for Chapter 11 protection on March 18, 2005 (Bankr. M.D. Tenn. Case No. 05-03329). Chapter 11 Petition Date: November 21, 2007 Court: Middle District of Tennessee (Nashville) Judge: Marian F. Harrison Debtor's Counsel: Steven L. Lefkovitz, Esq. Law Offices Lefkovitz & Lefkovitz 618 Church Street, Suite 410 Nashville, TN 37219 Tel: (615) 256-8300 Fax: (605) 250-4926 Estimated Assets: $10,000 to $100,000 Estimated Debts: $1 Million to $100 Million Debtor's list of its 18 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Capital Bank & Trust $470,579 1820 West End Avenue Nashville, TN 37203 Countrywide Home Loans $236,721 SVB-314, P.O. Box 5170 Simi Valley, CA 93062 Internal Revenue Service $140,000 801 Broadway MDP146 Nashville, TN 37203 William Street $80,000 Tennessee Dept. Economic $60,234 Com. Dev. Colonial Pacific Leasing Equipment $56,000 William S. Easley, Trustee $40,640 Bank One Visa $33,222 Financial Pacific Leasing LLC $29,148 Cooke Properties/C Cooke $22,900 Metro Trustee Personality Trustee $9,118 Wilson Bank and Trust $8,000 AmSouth Bank $6,600 Coupon Mint $2,097 State Auto Insurance $250 Wilson Co. Chancery Court Court Costs Owed $95 Bank of America Unknown Clark Shaw, Esq. Unknown * BOND PRICING: For the Week of November 19 - November 23, 2007 --------------------------------------------------------------- Issuer Coupon Maturity Price ------ ------ -------- ----- ABC Rail Product 10.500% 01/15/04 0 ABC Rail Product 10.500% 12/31/04 0 Acme Metals Inc 12.500% 08/01/02 0 Alesco Financial 7.625% 05/15/27 67 Allegiance Tel 11.750% 02/15/08 52 Alltel Corp 6.800% 05/01/29 71 Ambac Inc 6.150% 02/15/37 71 Amer & Forgn Pwr 5.000% 03/01/30 63 Amer Color Graph 10.000% 06/15/10 66 Amer Pad & Paper 13.000% 11/15/05 0 Americredit Corp 0.750% 09/15/11 69 Americredit Corp 2.125% 09/15/13 67 Americredit Corp 2.125% 09/15/13 67 Ames True Temper 10.000% 07/15/12 72 Antigenics 5.250% 02/01/25 62 Archibald Candy 10.000% 11/01/07 0 Ashton Woods USA 9.500% 10/01/15 75 At Home Corp 4.750% 12/15/06 0 Ata Holdings 12.125% 06/15/10 0 Atherogenics Inc 1.500% 02/01/12 17 Atherogenics Inc 4.500% 03/01/11 36 Bank New England 8.750% 04/01/99 9 Bank New England 9.500% 02/15/96 14 Bank New England 9.875% 09/15/99 9 BankUnited Cap 3.125% 03/01/34 67 BBN Corp 6.000% 04/01/12 0 Bearingpoint Inc 2.500% 12/15/24 74 Bearingpoint Inc 2.750% 12/15/24 71 Beazer Homes USA 4.625% 06/15/24 74 Beazer Homes USA 6.500% 11/15/13 75 Beazer Homes USA 6.875% 07/15/15 75 Beyond.com 7.250% 12/01/03 0 Big City Radio 11.250% 03/15/05 0 Borden Inc 7.875% 02/15/23 73 Bowater Inc 6.500% 06/15/13 75 Buffets Inc 12.500% 11/01/14 52 Burlington North 3.200% 01/01/45 54 Calpine Gener Co 11.500% 04/01/11 38 Charter Comm Inc 6.500% 10/01/27 66 CIH 9.920% 04/01/14 68 CIH 10.000% 05/15/14 68 CIH 11.125 01/15/14 73 CIT Group Inc 6.100% 03/15/67 74 Clark Material 10.750% 11/15/06 0 Claire's Stores 10.500% 06/01/17 71 Clear Channel 5.500% 12/15/16 75 Collins & Aikman 10.750% 12/31/11 1 Complete Mgmt 8.000% 08/15/03 0 Complete Mgmt 8.000% 12/15/03 0 Compucredit 3.625% 05/30/25 57 CompuCredit 5.875% 11/30/35 51 Constar Intl 11.000% 12/01/12 70 Countrywide Finl 6.000% 03/16/26 73 Countrywide Finl 6.000% 02/08/36 68 Countrywide Finl 6.200% 07/16/29 69 Countrywide Finl 6.250% 05/15/16 72 Curagen Corp 4.000% 02/15/11 69 Dana Corp 9.000% 08/15/11 70 Decode Genetics 3.500% 04/15/11 67 Decode Genetics 3.500% 04/15/11 68 Delta Air Lines 8.000% 12/01/15 70 Delta Mills Inc 9.625% 09/01/07 15 Delphi Corp 6.197% 11/15/33 57 Delphi Corp 6.500% 08/15/13 73 Delphi Corp 8.250% 10/15/33 44 Duquesne Light 6.250% 08/15/35 74 Dura Operating 8.625% 04/15/12 30 Dura Operating 9.000% 05/01/09 1 Eagle Food Centr 11.000% 04/15/05 0 Empire Gas Corp 9.000% 12/31/07 0 Encysive Pharma 2.500% 03/15/12 62 Epix Medical Inc 3.000% 06/15/24 72 Exodus Comm Inc 11.625% 07/15/10 0 Fedders North Am 9.875% 03/01/14 16 Finova Group 7.500% 11/15/09 17 Ford Motor Co 6.375% 02/01/29 70 Ford Motor Co 6.625% 02/15/28 69 Ford Motor Co 6.625% 10/01/28 69 Ford Motor Co 7.125% 11/15/25 70 Ford Motor Co 7.400% 11/01/46 70 Ford Motor Co 7.500% 08/01/26 73 Ford Motor Co 7.700% 05/15/97 73 Ford Motor Co 7.750% 06/15/43 71 Ford Motor Cred 6.150% 01/20/15 74 Ford Motor Cred 6.250% 03/20/15 74 General Motors 6.750% 05/01/28 71 General Motors 7.375% 05/23/48 72 GMAC 5.250% 01/15/14 74 GMAC 5.900% 01/15/19 73 GMAC 5.900% 02/15/19 70 GMAC 5.900% 10/15/19 66 GMAC 6.000% 02/15/19 69 GMAC 6.000% 02/15/19 68 GMAC 6.000% 02/15/19 67 GMAC 6.000% 03/15/19 70 GMAC 6.000% 03/15/19 69 GMAC 6.000% 03/15/19 70 GMAC 6.000% 03/15/19 74 GMAC 6.000% 03/15/19 69 GMAC 6.000% 04/15/19 67 GMAC 6.000% 09/15/19 72 GMAC 6.000% 09/15/19 71 GMAC 6.050% 08/15/19 70 GMAC 6.050% 08/15/19 72 GMAC 6.050% 10/15/19 67 GMAC 6.100% 09/15/19 66 GMAC 6.125% 10/15/19 75 GMAC 6.150% 08/15/19 66 GMAC 6.150% 09/15/19 73 GMAC 6.150% 10/15/19 67 GMAC 6.200% 04/15/19 68 GMAC 6.250% 12/15/18 70 GMAC 6.250% 01/15/19 72 GMAC 6.250% 04/15/19 72 GMAC 6.250% 05/15/19 70 GMAC 6.300% 08/15/19 71 GMAC 6.300% 08/15/19 70 GMAC 6.350% 04/15/19 68 GMAC 6.400% 12/15/18 71 GMAC 6.400% 11/15/19 71 GMAC 6.400% 11/15/19 70 GMAC 6.500% 06/15/18 74 GMAC 6.500% 11/15/18 73 GMAC 6.500% 02/15/20 75 GMAC 6.600% 08/15/16 72 GMAC 6.600% 05/15/18 75 GMAC 6.600% 06/15/19 72 GMAC 6.600% 06/15/19 70 GMAC 6.650% 06/15/18 71 GMAC 6.650% 10/15/18 70 GMAC 6.700% 06/15/18 72 GMAC 6.700% 06/15/18 75 GMAC 6.700% 11/15/18 73 GMAC 6.700% 06/15/19 71 GMAC 6.750% 05/15/17 73 GMAC 6.750% 03/15/18 70 GMAC 6.750% 07/15/18 74 GMAC 6.750% 09/15/18 75 GMAC 6.750% 10/15/18 75 GMAC 6.750% 05/15/19 74 GMAC 6.750% 05/15/19 71 GMAC 6.750% 06/15/19 71 GMAC 6.750% 06/15/19 73 GMAC 6.750% 03/15/20 74 GMAC 6.800% 09/15/18 74 GMAC 6.800% 10/15/18 74 GMAC 6.900% 07/15/18 74 GMAC 7.000% 02/15/18 74 GMAC 7.000% 06/15/22 74 GMAC 7.000% 11/15/23 71 GMAC 7.000% 11/15/24 69 GMAC 7.000% 11/15/24 70 GMAC 7.000% 11/15/24 69 GMAC 7.050% 03/15/18 75 GMAC 7.150% 03/15/25 69 GMAC 7.250% 01/15/25 71 GMAC 7.250% 02/15/25 74 GMAC 7.250% 03/15/25 71 GMAC 7.300% 01/15/18 75 GMAC 7.375% 04/15/18 75 Gulf States STL 13.500% 04/15/03 0 Harrahs Oper Co 5.625% 06/01/15 75 Harrahs Oper Co 5.750% 10/01/17 72 Herbst Gaming 8.125% 06/01/12 75 Hines Nurseries 10.250% 10/01/11 75 HNG Internorth 9.625% 03/15/06 19 Ion Media 11.000% 07/31/13 69 Iridium LLC/CAP 10.875% 07/15/05 3 Iridium LLC/CAP 11.250% 07/15/05 3 Iridium LLC/CAP 13.000% 07/15/05 1 Iridium LLC/CAP 14.000% 07/15/05 3 K Hovnanian Entr 6.000% 01/15/10 74 K Hovnanian Entr 6.250% 01/15/16 73 K Hovnanian Entr 6.250% 01/15/16 73 K Hovnanian Entr 6.375% 12/15/14 74 K Hovnanian Entr 6.500% 01/15/14 74 K Hovnanian Entr 7.500% 05/15/16 75 K Hovnanian Entr 7.750% 05/15/13 68 K Hovnanian Entr 8.875% 04/01/12 68 Kaiser Aluminum 9.875% 02/15/02 5 Kaiser Aluminum 12.750% 02/01/03 6 Kimball Hill Inc 10.500% 12/15/12 51 Kmart Corp 9.350% 01/02/20 5 Kmart Corp 9.780% 01/05/20 0 KMart Funding 8.800% 07/01/10 10 KMart Funding 9.440% 07/01/18 60 Knight Ridder 6.875% 03/15/29 75 Lehman Bros Holding 11.000% 10/25/17 75 Liberty Media 3.750% 02/15/30 58 Liberty Media 4.000% 11/15/29 64 Lifecare Holding 9.250% 08/15/13 64 LTV Corp 8.200% 09/15/07 0 McSaver Financl 7.400% 02/15/02 5 McSaver Financl 7.600% 08/01/07 5 McSaver Financl 7.875% 08/01/03 5 MediaNews Group 6.375% 04/01/14 73 MHS Holdings Co 16.875% 09/22/04 0 Morris Publish 7.000% 08/01/13 74 Mosler Inc 11.000% 04/15/03 0 Movie Gallery 11.000% 05/01/12 27 Muzak LLC 9.875% 03/15/09 53 National Steel Corp 8.375% 08/01/06 0 Neff Corp 10.000% 06/01/15 67 New Orl Grt N RR 5.000% 07/01/32 62 Northern Pacific RY 3.000% 01/01/47 52 Northern Pacific RY 3.000% 01/01/47 52 Northpoint Comm 12.875% 02/15/10 0 Northwest Steel & Wire 9.500% 06/15/01 0 NTK Holdings Inc 10.750% 03/01/14 61 Nutritional Src 10.125% 08/01/09 5 Oakwood Homes 7.875% 03/01/04 13 Oakwood Homes 8.125% 03/01/09 3 Oscient Pharma 3.500% 04/15/11 58 Oscient Pharma 3.500% 04/15/11 55 Outboard Marine 9.125% 04/15/17 5 Pac-West Telecom 13.500% 02/01/09 4 Pac-West Telecom 13.500% 02/01/09 2 Pegasus Satellite 13.500% 03/01/07 0 Piedmont Aviat 10.250% 01/15/49 0 Pixelworks Inc 1.750% 05/15/24 74 Polaroid Corp 11.500% 02/15/06 0 Pope & Talbot 8.375% 06/01/13 36 Pope & Talbot 8.375% 06/01/13 33 Primus Telecom 3.750% 09/15/10 65 Primus Telecom 8.000% 01/15/14 56 Propex Fabrics 10.000% 12/01/12 49 PSInet Inc 10.000% 02/15/05 0 Radian Group 5.375% 06/15/15 75 Radnor Holdings 11.000% 03/15/10 0 Rait Financial 6.875% 04/15/27 70 Rayovac Corp 8.500% 10/01/13 67 Read-Rite Corp 6.500% 09/01/04 0 Residential Cap 6.000% 02/22/11 64 Residential Cap 6.375% 06/30/10 65 Residential Cap 6.500% 06/01/12 64 Residential Cap 6.500% 04/17/13 63 Residential Cap 6.875% 06/30/15 64 Rite Aid Corp 6.875% 12/15/28 68 Rite Aid Corp 7.700% 02/15/27 73 RJ Tower Corp. 12.000% 06/01/13 2 Saint Acquisition 12.500% 05/15/17 62 ServiceMaster Co 7.100% 03/01/18 73 ServiceMaster Co 7.250% 03/01/38 70 ServiceMaster Co 7.450% 08/15/27 69 Six Flags Inc 4.500% 05/15/15 67 Six Flags Inc 9.625% 06/01/14 72 Six Flags Inc 9.750% 04/15/13 74 SLM Corp 5.000% 06/15/28 74 SLM Corp 5.050% 03/15/23 73 SLM Corp 5.250% 03/15/28 73 SLM Corp 5.250% 12/15/28 71 SLM Corp 5.350% 06/15/28 73 SLM Corp 5.400% 06/15/30 71 SLM Corp 5.500% 06/15/29 72 SLM Corp 5.500% 06/15/29 71 SLM Corp 5.500% 06/15/29 68 SLM Corp 5.500% 03/15/30 71 SLM Corp 5.500% 06/15/30 71 SLM Corp 5.500% 12/15/30 71 SLM Corp 5.500% 12/15/30 70 SLM Corp 5.550% 03/15/29 72 SLM Corp 5.600% 03/15/29 73 SLM Corp 5.600% 06/15/29 75 SLM Corp 5.600% 12/15/29 71 SLM Corp 5.600% 12/15/29 72 SLM Corp 5.650% 03/15/29 73 SLM Corp 5.650% 12/15/29 72 SLM Corp 5.650% 12/15/29 72 SLM Corp 5.650% 09/15/30 74 SLM Corp 5.700% 03/15/29 74 SLM Corp 5.700% 03/15/29 70 SLM Corp 5.700% 12/15/29 75 SLM Corp 5.700% 03/15/30 70 SLM Corp 5.750% 03/15/29 73 SLM Corp 5.750% 03/15/29 72 SLM Corp 5.750% 09/15/29 74 SLM Corp 5.750% 09/15/29 75 SLM Corp 5.750% 12/15/29 73 SLM Corp 5.750% 12/15/29 72 SLM Corp 5.750% 12/15/29 72 SLM Corp 5.750% 12/15/29 72 SLM Corp 5.750% 03/15/30 73 SLM Corp 5.800% 12/15/29 71 SLM Corp 5.850% 09/15/29 75 SLM Corp 5.850% 12/15/31 73 SLM Corp 5.900% 09/15/29 74 SLM Corp 6.000% 12/15/26 75 SLM Corp 6.000% 09/15/29 73 SLM Corp 6.000% 12/15/31 72 SLM Corp 6.050% 12/15/31 74 Spacehab Inc 5.500% 10/15/10 54 Spansion LLC 2.250% 06/15/16 66 Special Devices 11.375% 12/15/08 66 Spectrum Brands 7.375% 02/01/15 73 Standard Pac corp 6.000% 10/01/12 61 Standard Pac Corp 6.250% 04/01/14 67 Standard Pacific 6.500% 08/15/10 73 Standard Pac Corp 6.875% 05/15/11 73 Standard Pac corp 7.000% 08/15/15 66 Standard Pacific 7.750% 03/15/13 73 Standard Pacific 9.250% 04/15/12 51 Stanley-Martin 9.750% 08/15/15 69 Tekni-Plex Inc 12.750% 06/15/10 52 Teligent Inc 11.500% 12/01/07 0 Tenet Healthcare 6.875% 11/15/31 72 Times Mirror Co 6.610% 09/15/27 59 Times Mirror Co 7.250% 11/15/96 58 Times Mirror-New 7.500% 07/01/23 65 Tom's Foods Inc 10.500% 11/01/04 1 Tousa Inc 7.500% 03/15/11 9 Tousa Inc 7.500% 01/15/15 35 Tousa Inc 9.000% 07/01/10 43 Tousa Inc 10.375% 07/01/12 7 Toys R Us 7.375% 10/15/18 75 Trans Mfg Oper 11.250% 05/01/09 60 TransTexas Gas 15.000% 03/15/05 0 Tribune Co 5.250% 08/15/15 66 True Temper 8.375% 09/15/11 58 TXU Corp 6.500% 11/15/24 72 TXU Corp 6.550% 11/15/34 71 United Air Lines 9.200% 03/22/08 49 United Air Lines 9.350% 04/07/16 30 United Air Lines 9.560% 10/19/18 54 United Air Lines 10.020% 03/22/14 49 United Air Lines 10.850% 02/19/15 30 Universal Stand 8.250% 02/01/06 0 US Air Inc. 10.700% 01/01/49 0 Venture Holdings 12.000% 06/01/09 0 Vesta Insur Grp 8.750% 07/15/25 2 Vicorp Restaurant 10.500% 04/15/11 60 Wachovia Corp 9.250% 04/10/08 59 Wachovia Corp 15.500% 12/05/07 63 WCI Communities 6.625% 03/15/15 61 WCI Communities 7.875% 10/01/13 63 WCI Communities 9.125% 05/01/12 69 William Lyon 7.500% 02/15/14 61 William Lyon 7.625% 12/15/12 60 William Lyon 10.750% 04/01/13 65 Wimar Opco/Fin 9.625% 12/15/14 71 Winstar Comm Inc 10.000% 03/15/08 0 Winstar Comm Inc 12.750% 04/15/10 0 Wornick Co 10.875% 07/15/11 69 Ziff Davis Media 12.000% 08/12/09 56 ********* 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, 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 ***