T R O U B L E D C O M P A N Y R E P O R T E R
Monday, February 18, 2008, Vol. 12, No. 41
Headlines
1ST FINANCIAL: Moody's Puts Ba3 Ratings on Review for Possible Cut
AAMES MORTGAGE: Moody's Junks Rating on Class B Certificates
ACQUICOR MANAGEMENT: Case Summary & 4 Largest Unsecured Creditors
ADELPHIA COMMS: Former Headquarters Goes Back on Auction Block
ADVANCED CELL: Plans Private Offer of $3 Million Convertible Notes
AGAPE CHRISTIAN: Will Likely Emerge from Bankruptcy This Month
AMR CORPORATION: Mulls Potential Tie-up with Continental Airlines
ALTERNATIVE LOAN: S&P Downgrades Ratings on 20 Classes
AMBAC FINANCIAL: In Talks to Separate Muni Bond Insurance Unit
AMBAC FINANCIAL: Appoints David W. Wallis as Chief Risk Officer
AMERICAN HOME: Home Loan Borrowers Must File Claims by April 30
ART CDO: Moody's Junks Ratings on Three Classes of Notes
ASARCO LLC: Bondholders Want Fee Increase Deferred Until Case Ends
ASPEN TECH: Nasdaq to Delist, Suspend Securities Trading Tuesday
BAYOU GROUP: Co-founder Gets 51 Months in Prison for Fraud
BUFFETS HOLDINGS: DIP Facility Hearing Scheduled for February 22
BUFFETS HOLDINGS: To Pay Priority Vendor Claims Up To $35 Million
BEACH HOUSE: Case Summary & 20 Largest Unsecured Creditors
BUFFETS HOLDINGS: Closes 52 Restaurants, Cuts 2,300 Jobs
CALPINE CORP: New Stock Starts Trading the "Regular Way"
CHASE FUNDING: S&P Slashes Rating on Class IIB to 'B' From 'BBB'
CHEMTURA CORP: Expects to Post $2MM Net Income in 2007 Fourth Qtr.
CIT HOME: S&P Junks Class BF Certs. Due to Adverse Performance
CITIFINANCIAL MORTGAGE: S&P Maintains 'B' Rating on Class MV-4
CONTINENTAL AIRLINES: In Talks with AMR Corp. on Potential Tie-Up
CONTINENTAL SALES: Case Summary & 18 Largest Unsecured Creditors
COUNTRYWIDE FINANCIAL: Agrees to Release Documents to Homeowner
CREDIT SUISSE: S&P Cuts Ratings of Three Classes of Certs. to 'D'
CREST AT MADISON: Voluntary Chapter 11 Case Summary
CSFB ABS: S&P Maintains 'B' Rating on Class M-2 Mortgage Certs.
DANA CORP: NewCo Registers Post-Bankruptcy Common Stock
DANA CORP: $1.35 Billion Term Loan Trades on Secondary Market
DANA HOLDING: Moody's Confirms Low-B Ratings with Stable Outlook
DEL LABS: Coty Acquisition Prompts Moody's to Withdraw B3 Rating
DIOGENES CDO: S&P Junks Tranches' Ratings on Liquidation Plan
EMCOR GROUP: Moody's Puts 'Ba1' Rating on $375 Mil. Sr. Facility
ENTERCOM RADIO: Moody's Chips Rating to 'Ba3' on High Leverage
EQUA-CHLOR: Case Summary & 14 Largest Unsecured Creditors
FEDDERS CORP: Sells Emerson Assets to Elco For $13,250,000
FEDDERS CORP: Completes Sale of Addison Unit to Roberts-Gordon LLC
FGIC CORP: Plans to Separate Muni Bond Insurance Unit
FIELDSTONE MORTGAGE: Can Pay $400,000 in Bonuses to Employees
FINANCE AMERICA: S&P Cuts Cert. Ratings to D Due to Losses
FIRST FRANKLIN: Realized Losses Cue S&P's 14 Rating Downgrades
FOAMEX LP: S&P Chips Corp. Rating to B- on Declining Performance
FORESIDE MANAGEMENT: Case Summary & Eight Largest Unsec. Creditors
FREESCALE SEMICONDUCTOR: Appoints Rich Beyer as CEO and Chairman
FRIEDMAN'S INC: Section 341(a) Meeting Scheduled for February 29
FRIEDMAN'S INC: U.S. Trustee Appoints 7-Member Creditors Committee
FRIEDMAN'S INC: Taps Kilpatrick Stockton as Bankruptcy Counsel
GLOBAL VISION: Court Allows Examiner to File Reports on April 8
GMAC LL: Cerberus' Stephen Feinberg Warns of Difficulty Ahead
GOODMAN GLOBAL: Completes Merger Deal With Hellman & Friedman LLC
GOODMAN GLOBAL: S&P Withdraws Rating on Hellman & Friedman Merger
GOLD CENTER: Case Summary & 20 Largest Unsecured Creditors
HARRY'S LOBSTER: Case Summary & Two Largest Unsecured Creditors
HAVEN HEALTHCARE: Court OKs $50 Million DIP Loan on Final Basis
HEALTHY DIRECTIONS: S&P Junks Corporate Credit Rating
HSI ASSET: S&P's Rating on Class M-10 Tumbles to 'D' From 'CC'
ICEWEB INC: December 31 Balance Sheet Upside-Down by 1 Million
INGRAM MICRO: Moody's Maintains 'Ba1' Corporate Family Rating
JACK HICKS: Case Summary & 18 Largest Unsecured Creditors
KLEROS REAL: Moody's Junks Rating on $60 Million Notes From 'Aaa'
LEGENDS GAMING: Moody's Junks Corp. Rating on Covenant Violations
LEVITT & SONS: Deposit Holders Panel Hires Charbonneau as Counsel
LEVITT & SONS: River Hall Panel Allowed to File $10MM Claims
MACKLOWE PROPERTIES: Deutsche Bank and Fortress Waive Loan Default
MASTR ASSET: M-10 Classes Get S&P's 'D' Rating on Losses
MAXUM PETROLEUM: S&P Junks Rating on $155 Million Term Loan B
MEDICAL CENTER AT LANCASTER: North Tex. Hospital to End Operation
MEDICOR LTD: In Talks on Sale of All European Assets
MERRILL LYNCH: Fitch Maintains Low- B Ratings on 10 Classes
MOVIE GALLERY: Court Okays 2nd Amendment to $150MM DIP Financing
MOVIE GALLERY: Panel Gets Deadline Extension to Challenge Liens
NBTY INC: Moody's Keeps 'Ba2' Rating; Changes Outlook to Positive
NEILL DEVELOPMENT: Voluntary Chapter 11 Case Summary
OGLEBAY NORTON: Moody's Withdraws Ratings After Carmeuse Merger
OGLEBAY NORTON: S&P Withdraws Ratings After Carmeuse Acquisition
ORTHOFIX INT'L: Weak Cash Flow Spurs Moody's Low-B Rating Reviews
OWENS-ILLINOIS: S&P Upgrades Corporate Credit Rating to 'BB'
PATRIOT'S POINTE: Administrator Asks Lenders to Serve in Committee
PATRIOT'S POINTE: Administrator Asks Lenders to Serve in Committee
PATRIOT'S POINTE: Section 341(a) Meeting Slated for March 3
PATRIOT'S POINTE: Select Ivey McClellan as Bankruptcy Counsel
PLASTECH ENGINEERED: Wants to Obtain DIP Financing Until Feb. 27
PLASTECH ENGINEERED: Taps Conway Mackenzie as Financial Advisors
POPE & TALBOT: Committee Taps Davies Ward as Canadian Counsel
POPE & TALBOT: Committee Taps Nathanson Schachter as B.C. Counsel
PRICELINE.COM INC: Earns $32.9 Mil. in Quarter Ended December 31
RICHARD RANDALL: Case Summary & 10 Largest Unsecured Creditors
RPM INT'L: S&P Assigns 'BB' Preliminary Preferred Stock Ratings
SEA CONTAINERS: Wants to Extend Plan-Filing Period to April 15
SHAW GROUP: S&P Changes Outlook to Positive; Confirms 'BB' Rating
SIRVA INC: Feb. 25 Hearing on Protocol Restricting Equity Trading
SITEL WORLDWIDE: Moody's Puts Outlook at Neg; Holds 'B2' Rating
STRUCTURED ASSET: S&P's Rating on Class B5 Certs. Tumbles to 'D'
SUMMIT GLOBAL: Court OKs Asset Sale; Fortress to Provide Financing
TALECRIS BIOTHERAPEUTICS: S&P Chips Corporate Credit Rating to 'B'
TARGUS GROUP: Moody's Revises Outlook to Stable; Holds Junk Rating
TEKNI-PLEX INC: Inks Forbearance Agreement Extension to March 17
THREE 60: Case Summary & 15 Largest Unsecured Creditors
TOUSA INC: U.S. Trustee Appoints Seven-Member Creditors Committee
TOUSA INC: Wants to File Schedules & Statements under Seal
TP EMERALD: Seeks Court Nod to Appoint Johnston Moore as Counsel
UNUM GROUP: Moody's Revises Outlook on 'Ba1' Debt Rating to Stable
U.S. ENERGY: Inks Pact with Major Shareholder to Appoint Directors
VICTOR PLASTICS: Inks LOI Selling Assets to Riverbend Industries
VISTEON CORP: Posts $43 Mil. Net Loss in Quarter Ended December 31
WENDY'S INT'L: S&P Ratings Unaffected by Trian's Board Expansion
WESTSHORE GLASS: Taps GrayRobinson as Counsel Under Gen. Retainer
WILSONS LEATHER: Closes 160 Mall Stores as Cost Cutting Initiative
WINDSTREAM CORP: S&P Rating Unmoved by $400 Mil. Equity Repurchase
* S&P Lowers 49 Tranches' Ratings From Seven Cash Flows and CDOs
* S&P Puts 79 CDO Tranches' Ratings on Negative CreditWatch
* S&P Upgrades Ratings on 31 Classes of RMBS From 11 Transactions
* New Tax Breaks for Homeowners Under MFDR Act of 2007
* December Home Sales Fall; Home Prices Rising -- Realtors Study
* Subprime Mortgage Litigation Outpaces Savings-and-Loan Crisis
* FTI Consulting Wecomes Four Senior Managing Directors
* Seventeen Partners Join Seyfarth Shaw
* BOND PRICING: For the Week of Feb. 11 - Feb. 15, 2008
*********
1ST FINANCIAL: Moody's Puts Ba3 Ratings on Review for Possible Cut
------------------------------------------------------------------
Moody's Investors Service placed under review for possible
downgrade the Ba3 ratings on three classes of subordinated notes
issued from the 1st Financial Credit Card Master Note Trust and
1st Financial Credit Card Master Note Trust II.
The complete rating actions are:
Under Review For Possible Downgrade
Issuer: 1st Financial Credit Card Master Note Trust
-- $7,500,000 Fixed Rate Asset-Backed Notes, Series 2005-1,
Class B, rated Ba3
Issuer: 1st Financial Credit Card Master Note Trust II
-- $7,500,000 Fixed Rate Asset-Backed Notes, Series 2005-A,
Class B, rated Ba3
-- $7,500,000 Fixed Rate Asset-Backed Notes, Series 2005-B,
Class B, rated Ba3
Rationale
This review follows the recent rating actions taken by Moody's and
other rating agencies on a number of monoline financial
guarantors, including those insuring the Trust's senior notes. In
Moody's view, early amortization triggers tied to the rating
downgrade of one or more of these financial guarantors make it
more likely that a significant portion of 1st Financial's
securitized transactions would begin to amortize before their
scheduled maturity.
In its review, Moody's will assess 1st Financial's ability to
finance cardholder's new purchases on their credit cards (i.e.,
maintain card utility). Moody's will also assess 1st Financial's
ability to execute on contingency funding plans.
The wrapped, senior notes benefit from financial guarantee
insurance policies. Ambac Assurance Corporation is currently
rated Aaa (rating under review) and Financial Security Assurance,
Inc. is currently rated Aaa (stable outlook).
The performance of the collateral backing these transactions is
within Moody's expectations and is not a factor in the ratings
review.
Background
The Trusts consist of approximately $860 million of credit card
receivables originated and serviced by 1st Financial Bank, a South
Dakota Bank.
AAMES MORTGAGE: Moody's Junks Rating on Class B Certificates
------------------------------------------------------------
Moody's Investors Service downgraded or placed on review eleven
classes of certificates issued by Aames Mortgage Trust in 2002,
2004 and 2005. The actions are based on the analysis of the
credit enhancement provided by subordination,
overcollateralization (OC) and excess spread relative to expected
losses.
Aames Mortgage Investment Trust 2002-1 is backed by subprime,
fixed and adjustable-rate mortgage loans, and have lost credit
enhancement provided by subordination due to stepdown. As of
January 2008, the deal had a pool factor of 14%, with OC of less
than $1 million for $2.4 million in Foreclosure and REO. Aames
Mortgage Investment Trusts 2004-1 and 2005-1 had pool factors of
13% and 17% respectively as of January 2008. The stepping down
and continuous losses have left these two deals with thin credit
enhancement levels and made them more vulnerable to pool
deterioration in the tail ends of the deals' lives.
Complete rating actions are:
Issuer: Aames Mortgage Trust 2002-1
-- Class M-2, downgraded from Baa1 to Baa2;
-- Class B, downgraded from B1 to Caa2;
Issuer: Aames Mortgage Investment Trust 2004-1
-- Class M-6, current rating A3, under review for possible
downgrade;
-- Class M-7, current rating Baa1, under review for possible
downgrade;
-- Class M-8, current rating Baa2, under review for possible
downgrade;
-- Class M-9, current rating Baa3, under review for possible
downgrade;
Issuer: Aames Mortgage Investment Trust 2005-1
-- Class M-5, current rating A2, under review for possible
downgrade;
-- Class M-6, current rating A3, under review for possible
downgrade;
-- Class M-7, current rating Baa1, under review for possible
downgrade;
-- Class M-8, current rating Baa2, under review for possible
downgrade;
-- Class M-9, current rating Baa3, under review for possible
downgrade.
ACQUICOR MANAGEMENT: Case Summary & 4 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Acquicor Management LLC
4321 Jamboree Road
M/S H01-120
Newport Beach, California 92660
Bankruptcy Case No.: 08-10700
Chapter 11 Petition Date: February 14, 2008
Court: Central District of California (Santa Ana)
Judge: Robert Kwan
Debtor's Counsel: Robert P. Goe, Esq.
Goe & Forsythe, LLP
660 Newport Center Drive, Suite 320
Newport Beach, California 92660
Tel: (949) 467-3780
Fax: (949) 721-0409
Estimated Assets: $1,000,001 to $10 million
Estimated Debts: $1,000,001 to $10 million
Debtor's list of its 4 Largest Unsecured Creditors:
Entity Nature of Claim Claim Amount
------ --------------- ------------
L. Dave Hergenreder, CPA accountant's $5,000
7700 Irvine Center Drive fees
Suite 800
Irvine, CA 92618
Law Offices of George S. Burns attorney's unknown
4100 MacArthur Boulevard services
Suite 305
Newport Beach, CA 92660
CRT Capital Group, LLC unknown
262 Harbor Drive
Stamford, CT 06902
CT Corporation System
ADELPHIA COMMS: Former Headquarters Goes Back on Auction Block
--------------------------------------------------------------
After all of the buzz and excitement surrounding the online
auction of Adelphia Communications Corp.'s former headquarters,
the class A office building is back on the "virtual" auction
block.
Although having sold and closed more than 60 other properties in
Adelphia's real estate portfolio, the LFC Group of Companies is
auctioning Adelphia's 'crown jewel,' once again, on its Web site
LFC Online -- http://www.LFC.com/715R2-- as the original winning
bidder/buyer has defaulted. The minimum bid for the property is
$3,000,000, just a fraction of the $30,000,000 value recorded on a
recent appraisal document, ordered by the previous buyer.
Built in 2002, the 72,000-square-foot, three-story office building
has a fully finished basement and 80,000 square feet of paved
parking space. Just off of Route 6 connecting Coudersport to
eastern and western Pennsylvania, the building is fully networked
to house more than 275 employees.
"It's quite an ironic story actually," comments Jack Ukropina,
senior auction manager. "After bidding closed the first time
around, we had numerous investors and other interested buyers step
forward with offers. They came to realize what a steal this
property was and wanted to buy it, but by then, it was too late.
Now their wish has come true. These prospective buyers have
another chance, but they better move quickly as the bid deadline
is approaching," continues Mr. Ukropina.
About the LFC Group of Companies
For more than 30 years, the LFC Group of Companies --
http://www.LFC.com/-- has served numerous Fortune 500 companies,
real estate developers, investors, financial institutions and
government agencies by auction marketing thousands of commercial,
industrial, land and residential properties with an aggregate
value well in excess of $5,000,000,000
About the Adelphia Recovery Trust
The Adelphia Recovery Trust is a Delaware Statutory Trust that
was formed pursuant to the ACOM Debtors' First Modified Fifth
Amended Joint Plan of Reorganization, which became effective
Feb. 13, 2007. The ART holds certain litigation claims
transferred pursuant to the Plan against various third parties
and exists to prosecute the causes of action transferred to it
for the benefit of holders of ART interests.
About Adelphia Comms
Based in Coudersport, Pennsylvania, Adelphia Communications
Corporation (OTC: ADELQ) -- http://www.adelphia.com/--
is a cable television company. Adelphia serves customers in 30
states and Puerto Rico, and offers analog and digital video
services, Internet access and other advanced services over its
broadband networks. The company and its more than 200
affiliates filed for Chapter 11 protection in the Southern
District of New York on June 25, 2002. Those cases are jointly
administered under case number 02-41729. Willkie Farr &
Gallagher represents the Debtors in their restructuring efforts.
PricewaterhouseCoopers serves as the Debtors' financial advisor.
Kasowitz, Benson, Torres & Friedman, LLP, and Klee, Tuchin,
Bogdanoff & Stern LLP represent the Official Committee of
Unsecured Creditors.
Adelphia Cablevision Associates of Radnor, L.P., and 20 of its
affiliates, collectively known as Rigas Manged Entities, are
entities that were previously held or controlled by members of
the Rigas family. In March 2006, the rights and titles to these
entities were transferred to certain subsidiaries of Adelphia
Cablevision LLC. The RME Debtors filed for chapter 11
protection on March 31, 2006 (Bankr. S.D.N.Y. Case Nos. 06-10622
through 06-10642). Their cases are jointly administered under
Adelphia Communications and its debtor-affiliates' chapter 11
cases. The Bankruptcy Court confirmed the Debtors' Modified
Fifth Amended Joint Chapter 11 Plan of Reorganization on
Jan. 5, 2007. That plan became effective on Feb. 13, 2007.
(Adelphia Bankruptcy News, Issue No. 184; Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).
ADVANCED CELL: Plans Private Offer of $3 Million Convertible Notes
------------------------------------------------------------------
Advanced Cell Technology disclosed in a regulatory filing dated
Feb. 14, 2008 that subject to market conditions, the company plans
to privately offer up to $3,000,000 of convertible promissory
notes. The timing of the closing of the offering will be subject
to market conditions. The company plans to use the net proceeds
to fund working capital, including costs associated with planned
clinical trials.
The financing is expected to be in the form of up to $3,000,000
principal amount of convertible promissory notes.
The offering will be conducted as a private placement made only to
accredited buyers in accordance with Section 4(2) of the
Securities Act.
About Advanced Cell Technology Inc.
Headquartered in Alameda, California, Advanced Cell Technology
Inc. (OTCBB:ACTC) -- http://www.advancedcell.com/-- is a
biotechnology company focused on developing and commercializing
human stem cell technology in the emerging field of regenerative
medicine. It has developed and maintained a portfolio of patents
and patent applications that form the proprietary base for its
embryonic stem cell research and development. The company
operates facilities in Alameda, California and Worcester,
Massachusetts.
* * *
As reported in the Troubled Company Reporter on March 26, 2007,
Stonefield Josephson Inc. in Los Angeles, California, raised
substantial doubt about the ability of Advanced Cell Technology
Inc. to continue as a going concern after auditing the company's
financial statements as of Dec. 31, 2006. The auditing firm
pointed to the company's minimal sources of revenue, substantial
losses, substantial monetary liabilities in excess of monetary
assets and accumulated deficits as of Dec. 31, 2006.
As of Sept. 30, 2007, the company has a substantial stockholders'
deficit of $26.5 million. The company expects that it will not be
able to continue as a going concern and fund cash requirements for
operations through June 30, 2008, with current cash reserves.
AGAPE CHRISTIAN: Will Likely Emerge from Bankruptcy This Month
--------------------------------------------------------------
Agape Christian Fellowship in Arlington is expected to emerge from
bankruptcy this month, after a year of facing litigations against
its former pastor, Nathaniel Jones writes for the Star-Telegram,
citing people familiar with the case.
The U.S. Bankruptcy Court for the Northern District of Texas is
set to approve the church's chapter 11 plan of reorganization on
Feb. 26, 2008.
The church owes an undisclosed amount of money for sexual
misconduct lawsuit settlements and owes debts to about 100
creditors. A church spokesman declined to comment this week on the
hearing. The judge has sealed details of the lawsuits.
Creditors must vote on the church's plan before the judge approves
it, said Davor Rukavina, a Dallas bankruptcy attorney hired by the
church.
Background of Bankruptcy Filing
As reported in the Troubled Company Reporter on Mar 8, 2007,
Agape Christian Fellowship filed for chapter 11 protection on
March 5, 2007.
The church was put into turmoil last year after its founder and
former pastor, Terry Hornbuckle, was convicted of raping three
women, including two church members. Mr. Hornbuckle was sentenced
to serve 15 years in prison.
Davor Rukavina, Esq., Agape's bankruptcy counsel said that the
church is currently facing seven civil lawsuits and the bankruptcy
filing was done "to reorganize and to address the suits and
creditors in an organized process." Mr. Rukavina stated, "The
church's finances are solid."
The pending cases include three civil lawsuits filed by Mr.
Hornbuckle's victims, two former employees and two others.
Developments in October 2007
The church's plan to raise funds by selling a real property, plus
oil and gas leases to Chesapeake Energy was approved by the Court
in October 2007.
The judge handling the case has kept the details of the lawsuits
against Pastor Hornbuckle in private. Also in October 2007, Renee
Hornbuckle, the wife of Pastor Hornbuckle, was appointed as head
pastor in the church.
Star Telegram relates that the church has started to recover
financially as members continue to give their support through
tithes and offerings, as proven by court filings filed in October
2007.
About Agape Christian Fellowship
Arlington, Texas-based Agape Christian Fellowship was started as
Victory Temple Bible Church in a former Dairy Queen building in
Irving in the mid-1980s. The church was renamed Agape Christian
Fellowship in 1992. The church once had 2,500 members at its
42,000-square-foot facility before the trial. The church filed
for chapter 11 bankruptcy on March 5, 2007 (Bankr. N.D. Tex. Case
No. 07-40983). Davor Rukavina, Esq., at Munsch, Hardt, Kopf &
Harr PC represents the Debtor in its restructuring efforts. When
the Debtor filed for bankruptcy, it listed assets and debts
between $1 million and $100 million. The church's Web site --
http://agapecf.org/-- is currently under construction.
AMR CORPORATION: Mulls Potential Tie-up with Continental Airlines
-----------------------------------------------------------------
American Airlines' parent AMR Corp. is deliberating over a likely
consolidation with Continental Airlines Inc., according to Susan
Carey of The Wall Street Journal, citing people familiar with the
primary talks of the two carriers.
As reported in the Troubled Company Reporter on Feb. 8, 2008,
United Airlines Inc. could end up marrying Continental Airlines in
the event of a merger, instead of with Delta Air Lines. According
to WSJ, exploratory merger talks between United and Continental
have grown serious. Moreover, the merger talks between Delta Air
and Northwest Airlines Corp. have intensified that could lead
to an agreement in the next two weeks. However, key details of
the Delta-Northwest deal have yet to be hammered out and
negotiations could still fall apart.
About Continental Airlines
Continental Airlines Inc. (NYSE: CAL) -- http://continental.com/
-- is the world's fifth largest airline. Continental, together
with Continental Express and Continental Connection, has more than
2,900 daily departures throughout the Americas, Europe and Asia,
serving 144 domestic and 139 international destinations. More
than 500 additional points are served via SkyTeam alliance
airlines. With more than 45,000 employees, Continental has hubs
serving New York, Houston, Cleveland and Guam, and together with
Continental Express, carries approximately 69 million passengers
per year.
About AMR Corporation
Headquartered in Forth Worth, Texas, AMR Corporation (NYSE:
AMR) operates with its principal subsidiary, American Airlines
Inc. -- http://www.aa.com/-- a worldwide scheduled passenger
airline. At the end of 2006, American provided scheduled jet
service to about 150 destinations throughout North America, the
Caribbean, Latin America, Europe and Asia. American is also a
scheduled airfreight carrier, providing freight and mail services
to shippers throughout its system.
Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two
regional airlines, American Eagle Airlines Inc. and Executive
Airlines Inc., and does business as "American Eagle." American
Beacon Advisors Inc., a wholly owned subsidiary of AMR, is
responsible for the investment and oversight of assets of AMR's
U.S. employee benefit plans, as well as AMR's short-term
investments.
* * *
As reported in the Troubled Company Reporter on Nov. 30, 2007,
following the announcement by AMR Corp. that it intends to divest
its American Eagle Holding Corp. subsidiary in 2008, Fitch expects
no near-term impact on the debt ratings of AMR and its principal
operating subsidiary, American Airlines Inc. Fitch affirmed both
entities' Issuer Default Ratings at 'B-' on Nov. 13, 2007, while
revising the Rating Outlook for AMR to Positive.
ALTERNATIVE LOAN: S&P Downgrades Ratings on 20 Classes
------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on 20
classes from 15 Alternative Loan Trust transactions originated
between 1998 and 2004 and removed four of these ratings from
CreditWatch with negative implications. Concurrently, S&P
affirmed its ratings on 871 classes from 71 Alternative Loan Trust
transactions and removed five of the affirmed ratings from
CreditWatch with negative implications.
Most of the 71 Alternative Loan Trust transactions originated
between 1998 and 2004 that S&P reviewed were performing better
than the 2005-2007 vintages from the same issuer. However, a few
are experiencing an uptick in delinquencies. This rise in
delinquent loans leads us to believe that losses will continue to
compromise the available credit support (subordination, excess
interest, and overcollateralization) for the 20 downgraded
classes.
The affirmations reflect current credit support percentages that
are sufficient to maintain the ratings on these securities and
protect them from actual and projected losses.
The collateral for these transactions consists primarily of Alt-A,
fixed- or adjustable-rate, first-lien mortgage loans secured by
one- to four-family residential properties.
Ratings Lowered and Removed From CreditWatch Negative
Alternative Loan Trust
Rating
------
Series Class To From
------ ----- -- ----
2003-5T2 B-3 B BB/Watch Neg
2004-5CB B-4 CCC B/Watch Neg
2004-32CB B-4 B- B/Watch Neg
2004-J6 B-4 CCC B/Watch Neg
Ratings Lowered
Alternative Loan Trust
Rating
------
Series Class To From
------ ----- -- ----
2003-22CB B-4 CCC B
2003-21T1 B-4 CCC B
2004-33 I-B-2 BBB- BBB
2004-33 I-B-3 B BB
2004-33 I-B-4 CCC B
2004-6CB M-1 A AA
2004-6CB M-2 BB A
2004-6CB M-3 CCC BBB
2004-25CB B-4 CCC B
2004-27CB B-4 CCC B
2004-36CB B-4 CCC B
2004-J5 B BB BBB
2004-J6 B-3 B+ BB
2004-J8 B-2 BB BBB
2004-7T1 B-4 CCC B
2004-35T2 B-2 BB BBB
Ratings Affirmed and Removed From CreditWatch Negative
Alternative Loan Trust
Rating
------
Series Class To From
------ ----- -- ----
2003-12CB B-4 B B/Watch Neg
2003-J1 B-3 BB BB/Watch Neg
2003-15T2 B-4 B B/Watch Neg
2003-16T1 B-3 BB BB/Watch Neg
2004-2CB B-4 B B/Watch Neg
Ratings Affirmed
Alternative Loan Trust
Series Class Rating
------ ----- ------
1998-4 I-A-1 AAA
1998-4 II-A-3 AAA
1998-4 II-A-4 AAA
1998-4 PO AAA
1998-4 X AAA
1998-4 A-R AAA
2002-7 CB-1 AAA
2002-7 CB-2 AAA
2002-7 CB-7 AAA
2002-7 PO AAA
2002-7 A-R AAA
2002-11 A-3 AAA
2002-11 A-4 AAA
2002-11 PO AAA
2002-11 A-6 AAA
2002-11 AR AAA
2002-11 M AAA
2002-11 B-1 AAA
2002-11 B-2 A
2002-12 A-8 AAA
2002-12 PO AAA
2002-12 AR AAA
2002-13 A-2 AAA
2002-13 A-4 AAA
2002-13 A-5 AAA
2002-13 A-13 AAA
2002-13 A-14 AAA
2002-13 PO AAA
2002-13 A-R AAA
2002-13 M AA+
2002-13 B-1 AA
2002-13 B-2 A
2002-14 A-4 AAA
2002-14 A-5 AAA
2002-14 PO AAA
2002-14 A-R AAA
2002-14 M AAA
2002-14 B-2 AA+
2002-14 B-1 AAA
2002-15CB A-1 AAA
2002-15CB X AAA
2002-15CB PO AAA
2002-15CB A-R AAA
2002-15CB M AA+
2002-15CB B-1 AA-
2002-15CB B-2 BBB
2002-16 A-1 AAA
2002-16 A-2 AAA
2002-16 A-3 AAA
2002-16 A-8 AAA
2002-16 PO AAA
2002-16 M AAA
2002-16 B-1 AA+
2002-16 B-2 A
2002-17 A-3 AAA
2002-17 A-4 AAA
2002-17 A-5 AAA
2002-17 A-6 AAA
2002-17 A-7 AAA
2002-17 A-8 AAA
2002-17 A-16 AAA
2002-17 A-17 AAA
2002-17 PO AAA
2002-17 M AAA
2002-17 B-1 AAA
2002-17 B-2 AA-
2002-18 A-2 AAA
2002-18 A-3 AAA
2002-18 A-4 AAA
2002-18 A-5 AAA
2002-18 A-6 AAA
2002-18 A-7 AAA
2002-18 A-19 AAA
2002-18 A-20 AAA
2002-18 A-21 AAA
2002-18 A-22 AAA
2002-18 A-29 AAA
2002-18 A-30 AAA
2002-18 A-31 AAA
2002-18 A-32 AAA
2002-18 A-33 AAA
2002-18 PO AAA
2002-18 A-R AAA
2002-18 M AAA
2002-18 B-1 AA
2002-18 B-2 BBB+
2003-2CB 1-A-1 AAA
2003-2CB 2-A-1 AAA
2003-2CB PO AAA
2003-2CB AR AAA
2003-2CB M AA
2003-2CB B-1 A
2003-2CB B-2 BBB
2003-2CB B-3 BB
2003-2CB B-4 B
2003-4CB 1-A-1 AAA
2003-4CB 2-A-1 AAA
2003-4CB 2-A-2 AAA
2003-4CB 2-A-3 AAA
2003-4CB PO AAA
2003-4CB A-R AAA
2003-4CB M AA
2003-4CB B-1 A
2003-4CB B-2 BBB
2003-4CB B-3 BB
2003-4CB B-4 B
2003-8CB 1-A-1 AAA
2003-8CB 2-A-1 AAA
2003-8CB PO AAA
2003-8CB A-R AAA
2003-8CB M AA
2003-8CB B-1 A
2003-8CB B-2 BBB
2003-8CB B-3 BB
2003-8CB B-4 B
2003-10CB 1-A-1 AAA
2003-10CB 2-A-1 AAA
2003-10CB PO AAA
2003-10CB A-R AAA
2003-10CB M AA
2003-10CB B-1 A
2003-10CB B-2 BBB
2003-10CB B-3 BB
2003-10CB B-4 B
2003-12CB 1-A-1 AAA
2003-12CB 2-A-1 AAA
2003-12CB PO AAA
2003-12CB A-R AAA
2003-12CB M AA
2003-12CB B-1 A
2003-12CB B-2 BBB
2003-12CB B-3 BB
2003-18CB 1-A-1 AAA
2003-18CB 2-A-1 AAA
2003-18CB PO AAA
2003-18CB A-R AAA
2003-18CB M AA
2003-18CB B-1 A
2003-18CB B-2 BBB
2003-18CB B-3 BB
2003-18CB B-4 B
2003-19CB 1-A-1 AAA
2003-19CB 2-A-1 AAA
2003-19CB 3-A-1 AAA
2003-19CB 3-A-2 AAA
2003-19CB 3-A-3 AAA
2003-19CB PO AAA
2003-19CB M AA
2003-19CB B-1 A
2003-19CB B-2 BBB
2003-19CB B-3 BB
2003-19CB B-4 B
2003-20CB 1-A-1 AAA
2003-20CB 1-A-2 AAA
2003-20CB 1-A-3 AAA
2003-20CB 1-A-4 AAA
2003-20CB 2-A-1 AAA
2003-20CB 3-A-1 AAA
2003-20CB PO AAA
2003-20CB A-R AAA
2003-20CB M AA
2003-20CB B-1 A
2003-20CB B-2 BBB
2003-20CB B-3 BB
2003-20CB B-4 B
2003-22CB 1-A-1 AAA
2003-22CB 2-A-1 AAA
2003-22CB 3-A-1 AAA
2003-22CB PO AAA
2003-22CB A-R AAA
2003-22CB M AA
2003-22CB B-1 A
2003-22CB B-2 BBB
2003-22CB B-3 BB
2003-J1 1-A-1 AAA
2003-J1 1-A-2 AAA
2003-J1 1-A-3 AAA
2003-J1 1-A-4 AAA
2003-J1 1-A-5 AAA
2003-J1 1-A-6 AAA
2003-J1 1-A-7 AAA
2003-J1 1-A-8 AAA
2003-J1 1-A-9 AAA
2003-J1 2-A-1 AAA
2003-J1 2-A-2 AAA
2003-J1 2-A-3 AAA
2003-J1 2-X AAA
2003-J1 3-A-1 AAA
2003-J1 3-A-2 AAA
2003-J1 3-A-3 AAA
2003-J1 3-X AAA
2003-J1 4-A-1 AAA
2003-J1 4-X AAA
2003-J1 PO AAA
2003-J1 M AA
2003-J1 B-1 A+
2003-J1 B-2 BBB
2003-J1 B-4 CCC
2003-J2 A-1 AAA
2003-J2 X AAA
2003-J2 PO AAA
2003-J2 M AAA
2003-J2 B-1 AA+
2003-J2 B-2 A
2003-J2 B-3 BB
2003-J2 B-4 B
2003-1T1 A-1 AAA
2003-1T1 A-2 AAA
2003-1T1 A-3 AAA
2003-1T1 A-4 AAA
2003-1T1 A-7 AAA
2003-1T1 A-11 AAA
2003-1T1 A-12 AAA
2003-1T1 A-13 AAA
2003-1T1 A-14 AAA
2003-1T1 PO AAA
2003-1T1 A-R AAA
2003-1T1 M AAA
2003-1T1 B-1 AA+
2003-1T1 B-2 AA
2003-1T1 B-3 A
2003-1T1 B-4 BB
2003-3T1 A-1 AAA
2003-3T1 A-2 AAA
2003-3T1 A-3 AAA
2003-3T1 A-4 AAA
2003-3T1 A-5 AAA
2003-3T1 A-6 AAA
2003-3T1 A-7 AAA
2003-3T1 A-8 AAA
2003-3T1 A-9 AAA
2003-3T1 A-10 AAA
2003-3T1 PO AAA
2003-3T1 M AAA
2003-3T1 B-1 AA
2003-3T1 B-2 A
2003-3T1 B-3 BB
2003-3T1 B-4 B
2003-5T2 A-2 AAA
2003-5T2 A-3 AAA
2003-5T2 A-4 AAA
2003-5T2 A-6 AAA
2003-5T2 A-8 AAA
2003-5T2 PO AAA
2003-5T2 M AAA
2003-5T2 B-1 AA
2003-5T2 B-2 BBB
2003-6T2 A-1 AAA
2003-6T2 A-2 AAA
2003-6T2 A-3 AAA
2003-6T2 A-4 AAA
2003-6T2 A-5 AAA
2003-6T2 A-6 AAA
2003-6T2 A-7 AAA
2003-6T2 PO AAA
2003-6T2 M AAA
2003-6T2 B-1 AA-
2003-6T2 B-2 BBB
2003-7T1 A-1 AAA
2003-7T1 A-2 AAA
2003-7T1 A-3 AAA
2003-7T1 A-4 AAA
2003-7T1 A-5 AAA
2003-7T1 PO AAA
2003-7T1 A-R AAA
2003-7T1 M AA
2003-7T1 B-1 A
2003-7T1 B-2 BBB
2003-7T1 B-3 BB
2003-7T1 B-4 B
2003-9T1 A-1 AAA
2003-9T1 A-2 AAA
2003-9T1 A-3 AAA
2003-9T1 A-4 AAA
2003-9T1 A-5 AAA
2003-9T1 A-6 AAA
2003-9T1 A-7 AAA
2003-9T1 PO AAA
2003-9T1 M AAA
2003-9T1 B-1 AA+
2003-9T1 B-2 A+
2003-9T1 B-3 BBB
2003-9T1 B-4 B
2003-11T1 A-1 AAA
2003-11T1 A-2 AAA
2003-11T1 A-3 AAA
2003-11T1 A-4 AAA
2003-11T1 PO AAA
2003-11T1 M AA+
2003-11T1 B-1 AA
2003-11T1 B-2 BBB
2003-11T1 B-3 BB
2003-11T1 B-4 B
2003-13T1 A-1 AAA
2003-13T1 A-2 AAA
2003-13T1 A-3 AAA
2003-13T1 A-4 AAA
2003-13T1 A-6 AAA
2003-13T1 A-7 AAA
2003-13T1 A-8 AAA
2003-13T1 A-9 AAA
2003-13T1 A-10 AAA
2003-13T1 A-11 AAA
2003-13T1 A-12 AAA
2003-13T1 A-13 AAA
2003-13T1 A-14 AAA
2003-13T1 A-15 AAA
2003-13T1 PO AAA
2003-13T1 M AA+
2003-13T1 B-1 AA
2003-13T1 B-2 BBB
2003-13T1 B-3 BB
2003-13T1 B-4 B
2003-14T1 A-1 AAA
2003-14T1 A-2 AAA
2003-14T1 A-3 AAA
2003-14T1 A-4 AAA
2003-14T1 A-5 AAA
2003-14T1 A-6 AAA
2003-14T1 A-7 AAA
2003-14T1 A-8 AAA
2003-14T1 A-9 AAA
2003-14T1 A-10 AAA
2003-14T1 PO AAA
2003-14T1 A-R AAA
2003-14T1 M AA
2003-14T1 B-1 A
2003-14T1 B-2 BBB
2003-14T1 B-3 BB
2003-14T1 B-4 B
2003-15T2 A-2 AAA
2003-15T2 A-3 AAA
2003-15T2 A-4 AAA
2003-15T2 A-5 AAA
2003-15T2 A-6 AAA
2003-15T2 A-7 AAA
2003-15T2 A-8 AAA
2003-15T2 A-9 AAA
2003-15T2 A-10 AAA
2003-15T2 A-11 AAA
2003-15T2 A-12 AAA
2003-15T2 A-13 AAA
2003-15T2 PO AAA
2003-15T2 M AAA
2003-15T2 B-1 AA
2003-15T2 B-2 BBB
2003-15T2 B-3 BB
2003-16T1 A-1 AAA
2003-16T1 A-2 AAA
2003-16T1 A-3 AAA
2003-16T1 A-4 AAA
2003-16T1 A-5 AAA
2003-16T1 PO AAA
2003-16T1 A-R AAA
2003-16T1 M AA
2003-16T1 B-1 A
2003-16T1 B-2 BBB
2003-16T1 B-4 CCC
2003-21T1 A-1 AAA
2003-21T1 A-2 AAA
2003-21T1 A-3 AAA
2003-21T1 A-4 AAA
2003-21T1 A-5 AAA
2003-21T1 A-6 AAA
2003-21T1 A-7 AAA
2003-21T1 A-8 AAA
2003-21T1 PO AAA
2003-21T1 M AA
2003-21T1 B-1 A
2003-21T1 B-2 BBB
2003-21T1 B-3 BB
2004-33 1-A-1 AAA
2004-33 2-A-1 AAA
2004-33 3-A-1 AAA
2004-33 3-A-2 AAA
2004-33 3-A-3 AAA
2004-33 3-X AAA
2004-33 4-A-1 AAA
2004-33 A-R AAA
2004-33 I-M-1 AA
2004-33 II-M-1 AA
2004-33 I-B-1 A
2004-33 II-B-1 A
2004-33 II-B-2 BBB
2004-33 II-B-3 BB
2004-33 II-B-4 B
2004-2CB 1-A-1 AAA
2004-2CB 1-A-2 AAA
2004-2CB 1-A-3 AAA
2004-2CB 1-A-4 AAA
2004-2CB 1-A-5 AAA
2004-2CB 1-A-8 AAA
2004-2CB 1-A-9 AAA
2004-2CB 1-A-12 AAA
2004-2CB 2-A-1 AAA
2004-2CB 3-A-1 AAA
2004-2CB 4-A-1 AAA
2004-2CB PO AAA
2004-2CB A-R AAA
2004-2CB M AA
2004-2CB B-1 A
2004-2CB B-2 BBB
2004-2CB B-3 BB
2004-4CB 1-A-1 AAA
2004-4CB 1-A-2 AAA
2004-4CB 1-A-3 AAA
2004-4CB 1-A-4 AAA
2004-4CB 1-A-5 AAA