T R O U B L E D C O M P A N Y R E P O R T E R Thursday, February 28, 2008, Vol. 12, No. 50 Headlines AGAPE CHRISTIAN: Court Approves Chapter 11 Plan of Reorganization ALASKA COMMS: Expects Restatement of 2006 and 2007 Fin'l Results ALASKA COMMS: Errors on Expense Reports Won't Affect S&P's Ratings ALLIANCE BANCORP: Five Cert. Classes Get Moody's Rating Reviews AMERICAN AXLE: UAW's Work Stoppage Won't Affect S&P's 'BB' Rating AMERICAN HOME: Moody's Junks Ratings on Four Classes of Certs. AMERICAN LAFRANCE: Gets Approval to Use Lenders' Cash Collateral AMERIRESOURCE TECH: 3-Day Sales at BizAuctions Exceed $50,000 AQUILA INC: C.W. Mining Blasts Chapter 11 Involuntary Petition AQUILA INC: Sale of Assets to Black Hills Awaits Final Order ARTISTDIRECT INC: Hires Salem to Look for Strategic Options ASARCO LLC: Environmental Regulator OKs Reopening of El Paso Mine ATLAS PIPELINE: Incurs $102.1MM Net Loss For 2007 Fourth Quarter AVENTINE RENEWABLE: S&P's B+ Rating Unaffected by Failed Auctions BANC OF AMERICA: S&P Puts Low-B Preliminary Ratings on Six Classes BIOENERGY OF AMERICA: Lack of Funds Cues Court to Dismiss Case BLAST ENERGY: Court Confirms Second Amended Plan of Reorganization BLUE WATER: To Give Access & Security Rights to Big 3 Automakers BLUE WATER: Can Use Cash Collateral Through March 3 BLUE WATER: PolyOne Objects to $25,000,000 DIP Financing BROTMAN MEDICAL: Wants Until May 22 to File Chapter 11 Plan BROTMAN MEDICAL: Ombudsman Taps Greenberg Traurig as Counsel BRYAN ROAD: Judge Says Agreement to Foreclose in Bankruptcy Valid CENTRAL ILLINOIS: WW Constructor Mulls Sale Bidding Procedure CHOCTAW GENERATION: S&P Downgrades Rating to 'BB+' From 'BBB-' CITIZENS COMMS: Board Approves $200 Mil. Stock Repurchase Program CITIZENS COMMS: S&P Ratings Unmoved by $200 Mil. Stock Repurchase CONSOLIDATED COMM: To Redeem $130 Mil. 9-3/4% Sr. Notes on April 1 CONSTELLATION BRANDS: Appoints Peter Perez as Board Director COTT CORP: S&P Puts 'CCC+' Sub Debt Rating on CreditWatch Negative CSFB HOME: Low Credit Enhancement Levels Cues Moody's Rating Cuts CWHEQ REVOLVING: Moody's Downgrades Ratings on Seven Certificates CW MINING: Moves for Rejection of Involuntary Chapter 11 Petition D&E COMMS: Crown Castle Releases Company from its Guarantee DUNMORE HOMES: To File Plan by March 21; Wants Control of Case DUNMORE HOMES: Lets Creditors Panel Pursue Avoidance Actions DUNMORE HOMES: Bankruptcy Court Sets March 20 Claims Bar Date DUNMORE HOMES: Wants to Engage Newmeyer as Special Counsel DURA AUTOMOTIVE: Creditor Opposes Confirmation of Chapter 11 Plan EASTMAN KODAK: Dennis Strigl Elected to Board of Directors ELAN CORP: Moody's Changes Outlook to Positive; Holds B3 Ratings ERIE MUNICIPAL: S&P Lifts Rating From BB+ on Liquidity Improvement EXCO RESOURCES: Reports $36.99 Mil. Net Loss for 2007 Fourth Qtr. FAIRPOINT COMMUNICATIONS: To Complete Spinco-Merger on March 31 FINANCIAL GUARANTY: 'A' Rating Prompts S&P to Cut 341 RMBS Classes FORD MOTOR: European Commission Directs Return of EUR27 Mil. Aid FORTUNOFF: Seven Creditors Want Their Goods Returned FRANK YOUNG: Case Summary & 25 Largest Unsecured Creditors GENERAL MOTORS: In Discussions with BMW AG on Possible Tie-Up GENERAL MOTORS: Fitch Holds IDR at 'B' with Negative Outlook GPC BIOTECH: Plans to Reduce 38% of Workforce to Conserve Cash GRAND PACIFIC: Moody's Puts Provisional Low-B Ratings on Two Notes HEALTH INSURANCE: S&P Alters Outlook to Negative; Holds BB+ Rating HEALTHSOUTH CORP: Dec. 31 Balance Sheet Upside Down by $1.55 Bil. HERCULES INC: Appoints Allan H. Cohen to Board of Directors HIDE HOUSE: Files NOI under Bankruptcy and Insolvency Act HUMAN TOUCH: Moody's Puts Junk Ratings on Review For Likely Cuts INTERSTATE BAKERIES: To Reject CBAs with Eight Local Unions INTERSTATE BAKERIES: Committee, et al., Balk at 2008 Bonus Plan INT'L RECTIFIER: Elects Oleg Khaykin and Richard J. Dahl to Board KANSAS SOUTHERN: Fitch Upgrades Foreign and Local Issuer Ratings KELLWOOD CO: Sun Capital Completes $767MM Acquisition of Company KEVIN MICHELS: Case Summary & 9 Largest Unsecured Creditors KNOLOGY INC: December 31 Balance Sheet Upside-Down by $35 Million LATTICE INC: Engages Demetrius & Co. as New Independent Auditors MAGELLAN HEALTH: Board Appoints Rene Lerer as CEO and President MBIA INC: Retains S&P's and Moody's Top-Notch Triple A Ratings MBIA INC: S&P Holds Ratings on 264 RMBS Guaranteed Classes MERRILL LYNCH: 13 Classes of Certs. Acquires Moody's Junk Ratings MGM MIRAGE: Infinity Joint Offer Gets 99 Million of Share Tenders MORTGAGE LENDERS: Wants Plan-Filing Period Moved to April 22 MORTGAGE LENDERS: Court Extends Removal Periods to June 11 MORTGAGE LENDERS: Can Expand Scope of Hilco's Services MSGI SECURITY: Posts $9.6 Mil. Net Loss in Qtr. Ended December 31 NASDAQ STOCK: Closes OMX Deal to Become The Nasdaq OMX Group, Inc. NASDAQ OMX: Moody's Lifts Corp. Rating to 'Ba1' on OMX AB Merger NASH FINCH: Board Declares Quarterly Dividend Payable on March 21 NEW CENTURY: Exclusivity Periods Extended to April 21 NEW CENTURY: Inks Settlement Pact with Positive Software NOMURA ALTERNATIVE: 10 Certificates Acquires Moody's Rating Cuts NOVELL INC: To Acquire PlateSpin Ltd. for $205 Million ODYSSEY RE: Elects Brian Young as CEO of London Market Operations OFFICEMAX INC: Earns $71.5 Million in Quarter ended December 29 OWENS CORNING: Moody's Lowers Rating on $1 Bil. Facility to 'Ba1' PACIFIC LUMBER: Plan Parties File Joint Disclosure Statement PACIFIC LUMBER: Plan Parties Propose Solicitation Procedures PACIFIC LUMBER: Taps ADI for Litigation-Support Services PACIFIC LUMBER: BoNY Wants SAR Account Withdrawal Cap Increased PACIFIC LUMBER: Committee Can Continue Probe on Lender's Liens PATRICK CANNON: Case Summary & 7 Largest Unsecured Creditors PCS EDVENTURES!.COM: Earns $163,268 in Fiscal 2008 Third Quarter PHOTRONICS INC: Moody's Retains B1 Rating; Gives Negative Outlook PIKE NURSERY: CEO Schnell Sees Expansion Beyond Plants PLAINS EXPLORATION: Inks Amendment to Credit Facility with Lenders PRINCETON SKI: Judge Stern Approved Sale of All Assets PROTECTED VEHICLES: Court Defers "Chapter 18" Hearing to March 19 PSEG ENERGY: S&P Confirms 'BB-' Corp. Rating With Stable Outlook PSIVIDA LIMITED: Posts $5.8 Million Net Loss in Qtr. Ended Dec. 31 QUEBECOR WORLD: To Convert 3,975,663 Preferred Shares on March 1 QUEBECOR WORLD: Names Caille as Restructuring Committee Chairman QWEST COMMUNICATIONS: Board Awards Bonuses to Five Executives QWEST COMMUNICATIONS: Plans to Get Wireless Service from Verizon RADIO ONE: S&P Assigns 'B' Corp. Rating on Negative CreditWatch RADIOSHACK CORP: Earns $101 Million in Quarter ended December 31 RADNET MANAGEMENT: S&P Holds 'CCC+' Rating on $35 Million Add-on RFMSI TRUST: Rapid Prepayments Prompt S&P's 14 Rating Upgrades ROYAL CARIBBEAN: Earns $71 Mil. in Quarter ended December 31 SACO I TRUST: Six Classes of Certs. Obtains Moody's Junk Ratings SEA CONTAINERS: Court Stretches Plan-Filing Period to April 15 SHARPER IMAGE: Trustee Appoints Unsecured Creditors Committee SIRIUS SATELLITE: December 31 Balance Sheet Upside-Down by $790MM SOLIDUS NETWORKS: Sale of Biometric Business Slated for March 5 SOLUTIA INC: May Pay $5,000,000 to Waive Backstop Commitment Pact SOLUTIA INC: Resolution of Adversary Proceeding vs. Exit Lenders SOLUTIA INC: Court Approves Non-Material Modifications to Plan SOTHEBY'S: Earnings Rise to $102 Mil. in Quarter Ended December 31 SPANSION INC: Fitch Maintains Issuer Default Rating at 'B-' SYNTAX-BRILLIAN: Inks Stricter Loan Agreement with Silver Point TENORITE CDO: Moody's Junks Rating on $90 Million Notes From 'Aaa' TERWIN MORTGAGE: Weak Performance Spurs Moody's Rating Downgrades TIMELINE INC: Earns $2,481,170 in Fiscal 2008 Third Quarter TIMKEN COMPANY: Adds Steel Products; Completes Boring Acquisition TIMOTHY HICKEY: Case Summary & 20 Largest Unsecured Creditors TOUSA INC: Terminates Restructuring Support Pact with Noteholders TOUSA INC: NYSE Affirms Common Stock Delisting TOUSA INC: Asks Court to Approve Amended Deal with VP Berkowitz TOUSA INC: Proposes May 19 Deadline for Filing Proofs of Claim U.S. ENERGY: Court OKs Eckert Seamans as Special Delaware Counsel U.S. ENERGY: Judge Drain Approves Governance Pact With Nakash USI HOLDINGS: S&P Gives Negative Outlook; Keeps 'CCC' Debt Rating VALCOM INC: Summary Judgment in Favor of Chicago Title Reversed WAYNE KULHANEK: Case Summary & 14 Largest Unsecured Creditors WELLMAN INC: Wants Court Nod Kirkland & Ellis as Bankr. Counsel WELLMAN INC: Wants to Employ Edwards Angell as Conflicts Counsel WESCORP ENERGY: Issues 14% Debentures Valued at CDN$450,000 WICKES FURNITURE: Creditors Panel Opposes $30 Mil. DIP Financing WORLD GATE: Disputes YA Advisors' Default Claims on Debentures * Fitch Analyzes Media and Entertainment Cos.' Recovery Ratings * Climate Change Costs Could Lead to Rating Actions, Moody's Says * S&P Downgrades Ratings on 240 Tranches From 164 Synthetic CDOs * S&P Downgrades 59 Tranches' Ratings From 10 Cash Flows and CDOs * Six Attorneys Leave Saul Ewing for Cole Schotz Practice * Senator Harry Reid to Defy Bush Veto on Foreclosure Bill * Chapter 11 Cases with Assets & Liabilities Below $1,000,000 ********* AGAPE CHRISTIAN: Court Approves Chapter 11 Plan of Reorganization ----------------------------------------------------------------- The Hon. D. Michael Lynn of the U.S. Bankruptcy Court for the Northern District of Texas approved Agape Christian Fellowship in Arlington's chapter 11 plan of reorganization at this week's hearing, Jeff Mosler writes for The Dallas Morning News. Under the church's reorganization plan, unsecured creditors will either get 90% recovery in 10 days or 100%, plus interest, by March 2009, the report relates. Unsecured creditors, however, opted for the 90% recovery, the report adds. The report says that the Court's approval came after the church obtained $1 million from the sale of real property. As reported in the Troubled Company Reporter on Feb. 18, 2008, the church's plan to raise funds by selling real property, plus oil and gas leases to Chesapeake Energy was approved by the Court in October 2007. Also, 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. Background of Bankruptcy Filing The TCR previously reported that the church filed for chapter 11 protection in March 2007, after it was put into turmoil by its founder and former pastor, Terry Hornbuckle. Mr. Hornbuckle was sentenced to serve 15 years in prison, after being convicted of raping three women, including two church members. Davor Rukavina, Esq., Agape's bankruptcy counsel, said that seven civil lawsuits were filed against the church and the bankruptcy filing was used "to address the suits and creditors in an organized process." Mr. Rukavina stated, "The church's finances are solid." The judge has sealed details of the sexual misconduct lawsuits against its former pastor. 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. Its former head pastor, Terry Hornbuckle, was convicted of rape and will be imprisoned for 15 years. In October 2007, Renee Hornbuckle, the wife of Pastor Hornbuckle, was appointed as head pastor in the church. ALASKA COMMS: Expects Restatement of 2006 and 2007 Fin'l Results ---------------------------------------------------------------- Alaska Communications Systems Group Inc. reported that in the course of its 2007 annual review of financial results and application of financial controls, management identified errors in the company's previously reported depreciation expense for fiscal years 2006 and 2007. The company expects no significant changes to previously reported revenues, EBITDA or cash flows; however, previously reported depreciation expense and net income will change. As a result, management has concluded that the company's internal controls over financial reporting contained a material weakness and that investors should not rely on the company's previously issued financial statements or earnings press releases covering reporting periods beginning on or after Jan. 1, 2006. The company expects no changes to its financial statements covering periods prior to Jan. 1, 2006. During the company's review of its financial results and preparation of financial statements for the fiscal year ended Dece. 31, 2007, the company detected errors previously made in its accounting for depreciation. Specifically, certain groups of assets employed in its intrastate operations are depreciated over extended lives as required by state regulations, giving rise to "regulatory assets." As the result of a programmatic error, the company incorrectly ceased to depreciate those regulatory assets prior to their becoming fully depreciated. The company's regulatory asset and the depreciation of the asset are governed by statement of financial accounting standards 71 accounting for the effects of certain types of regulation. Based on the review to date, management currently anticipates that the restatement will result in an increase of depreciation expense of approximately $6 million to $8 million for the fiscal year ended Dec. 31, 2006, and $5 million to $7 million for the nine months ended Sept. 30, 2007. As depreciation is a non-cash charge, the restatement is not expected to impact the company's dividend policy or the financial covenants of its credit agreement. ACS also disclosed that it expects to report total revenues and EBITDA for the twelve months ended Dec. 31, 2007 of approximately $380 million and $132 million, respectively. Expected performance for 2007 compares favorably to prior guidance of $370 million to $375 million for revenue, and $128 million to $130 million for EBITDA. ACS intends to provide all restated and current financial data comprehensively in its upcoming annual report on form 10-K. The company will file the 10-K as soon as practicable, but preparation of the restated information could delay the 10-K filing past the normal filing deadline of March 17, 2008. The company does not intend to file amendments to any previously filed form 10-Ks or 10-Qs. About Alaska Communications Systems Headquartered in Anchorage, Alaska, Alaska Communications Systems Group Inc. (NASDAQ:ALSK) -- http://www.acsalaska.com/-- provides customer-focused, facilities-based, integrated telecommunications services. The company owns and operates its infrastructure for local and long-distance telephone, Internet and wireless services. It also operates a statewide wireless network using code division multiple access technology, through which it offers very high- speed mobile data using third-generation evolution data optimized technology. In addition, ACS Group offers satellite television through its partnership with DISH Network. As of Dec. 31, 2006, it served 446,438 retail relationships. The company operates in four segments: local telephone, which provides landline telecommunications services; wireless, which provides wireless telecommunications service; internet, which provides Internet service and advanced internet protocol-based private networks, and interexchange, which provides switched and dedicated long-distance services. ALASKA COMMS: Errors on Expense Reports Won't Affect S&P's Ratings ------------------------------------------------------------------ Standard & Poor's Ratings Services said that its ratings and outlook on Anchorage, Alaska-based diversified telecommunications carrier Alaska Communications Systems Holdings Inc. (B+/Stable/--) are not immediately affected by the company's recent announcement that it identified errors in its previously reported depreciation expense for 2006 and 2007. Management expects the restatement to result in an increase in depreciation expense of about $6 million to $8 million for 2006, and $5 million to $7 million for the nine months of 2007. ACS indicated that it is still completing its review but does not expect any significant changes to revenue or EBITDA. Additionally, management does not anticipate any impact on financial covenants or filing requirements under its bank loan credit agreement. Despite the fact the company will report a material weakness related to internal controls over financial reporting, and given the limited scope of these issues, S&P does not expect ACS to miss its April 30, 2008 filing requirement under the bank loan credit agreement. ALLIANCE BANCORP: Five Cert. Classes Get Moody's Rating Reviews --------------------------------------------------------------- Moody's Investors Service downgraded 2 certificates and placed on review for possible downgrade 5 classes of certificates issued by Alliance Bancorp Trust 2007-S1. The transaction is backed by closed-end second lien loans. Substantial pool losses over the last few months have continued to erode credit enhancement available to the mezzanine and senior certificates. Despite the large amount of write-offs due to losses, delinquency pipelines have remained high as borrowers continue to default. The actions reflect Moody's expectation that the significant delinquency pipelines will have a further negative impact on the credit support for the senior and mezzanine certificates. Complete rating actions are: Issuer: Alliance Bancorp Trust 2007-S1 -- Cl. A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-3, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-4, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Placed on Review for Possible Downgrade, currently Aa2 -- Cl. M-2, Downgraded to B1 from Baa3 -- Cl. M-3, Downgraded to Caa2 from B3 AMERICAN AXLE: UAW's Work Stoppage Won't Affect S&P's 'BB' Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on American Axle and Manufacturing Holdings Inc. (BB/Negative/--) are not immediately affected by yesterday's reports that the United Auto Workers, the company's main labor union, elected to conduct a work stoppage at the expiration of its four-year master labor agreement with American Axle. The agreement covered roughly 3,650 associates at five facilities in Michigan and New York. S&P expects American Axle and the UAW to reach an agreement soon that will reflect more competitive labor costs. In fact, S&P believes that despite this work stoppage, the two sides will continue to negotiate, and S&P remains mindful of the positives that could result. Still, if the work stoppage were to persist beyond a brief and largely symbolic period, S&P could place the ratings on American Axle on CreditWatch with negative implications. S&P estimates that American Axle has about $344 million in cash and marketable securities. The company also has access to $572 million under a revolving credit facility and $60 million of uncommitted lines of credit. And even if the strike were to persist, the company has substantial cushion in regard to existing financial covenants. AMERICAN HOME: Moody's Junks Ratings on Four Classes of Certs. -------------------------------------------------------------- Moody's Investors Service downgraded 8 certificates and placed on review for possible downgrade one class of certificates from two transactions issued by American Home Mortgage Assets Trust and American Home Mortgage Investment Trust. The transactions are backed by closed-end second lien loans. Growing delinquencies including foreclosure and REO balances in these transactions are expected to cause continued erosion of credit enhancement available to the certificates as well as cause losses to some certificates. Complete rating actions are: Issuer: American Home Mortgage Assets Trust 2007-3 -- Cl. III-M-1, Downgraded to B2 from A2 -- Cl. III-M-2, Downgraded to Caa2 from Ba3 -- Cl. III-PO, Downgraded to Ca from Caa2 Issuer: American Home Mortgage Investment Trust 2006-2 -- Cl. IV-A, Placed on Review for Possible Downgrade, currently Aa1 -- Cl. IV-M-1, Downgraded to Baa3 from A1 -- Cl. IV-M-2, Downgraded to B1 from Baa3 -- Cl. IV-M-3, Downgraded to B3 from Ba2 -- Cl. IV-M-4, Downgraded to Caa2 from B1 -- Cl. IV-M-5, Downgraded to Ca from B3 AMERICAN LAFRANCE: Gets Approval to Use Lenders' Cash Collateral ---------------------------------------------------------------- Judge Brendan Linehan Shannon permits American LaFrance LLC to use, on a final basis, the cash collateral of its prepetition lenders pursuant to a budget. A full-text copy of the cash flow forecast for the 13-week period commencing on the week of February 22, 2008, through the week ending May 2, 2008, is available for free at: http://bankrupt.com/misc/ALF_revisedbudget.pdf The U.S. Bankruptcy Court for the District of Delaware directs the Debtor to provide Patriarch Partners Agency Services LLC, as agent for the DIP Lenders, and the Official Committee of Unsecured Creditors with all of the documentation and reports necessary to determine compliance with the Budget. The Budget may be amended, modified, or supplemented only in writing with the prior written consent of the DIP Lenders' agent, in its sole discretion, and without further Court order. No transfer of the Cash Collateral will be made to any of the Debtor's insiders, the Court clarifies. The Prepetition Lenders are granted, effective as of the Petition Date, valid, automatically, perfected and unavoidable first priority replacement liens and security interests in and on all of the Debtor's assets. About American LaFrance Headquartered in Summerville, South Carolina, American LaFrance LLC -- http://www.americanlafrance.com/-- is one of the oldest fire apparatus manufacturers and one of the top six suppliers of emergency vehicles in North America. The company filed for Chapter 11 protection on Jan. 28, 2008 (Bankr. D. Del. Case No. 08-10178). Ian T. Peck, Esq., and Abigail W. Ottmers, Esq., at Haynes and Boone LLP, are the Debtor's proposed Lead Counsel. Christopher A. Ward, Esq., at Klehr, Harrison, Harvey, Branzburg & Ellers LLP, are the Debtor's proposed local counsel. In its schedules of assets and debts filed Feb. 4, 2008, the Debtor disclosed $188,990,680 in total assets and $89,065,038 in total debts. The Debtor's exclusive period to file a plan expires on May 27, 2008. American LaFrance LLC will pursue a sale of its business operations in the event that the company's plan of reorganization is not confirmed. The Debtor filed its plan of reorganization on Feb. 3. (American LaFrance Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERIRESOURCE TECH: 3-Day Sales at BizAuctions Exceed $50,000 ------------------------------------------------------------- AmeriResource Technologies Inc. said that its subsidiary, BizAuctions Inc. recorded sales for the three-day weekend, Feb. 23, 24, and 25, 2008, exceeding $50,000. "Sales for the three-day weekend reached $52,981 with 330 items being sold on BizAuctions eBay auction site under its store name: BusinessAuctions Inc. Shipping and handling accounted for $4,733 of the $52,981 in sales for the three-day period. The BizAuctions-eBay business model continues to show strong growth in revenues and should provide a very positive year for 2008," noted Delmar Janovec, CEO. "BizAuctions employs two primary business models, whereby it liquidates inventory through eBay on consignment for a lucrative commission; and it purchases inventory at a fraction of retail price for the purpose of liquidating it for a profit. BizAuctions consigns, buys inventory, and liquidates through eBay providing a valuable service to its clients. It is evident that American companies are in need of commercial liquidation services and the Company continues to vigorously target this market," Mr. Janovec concluded. The company continues to make substantial progress in reducing costs and increasing gross profits, and is close to attaining net profits on a consistent basis. BizAuctions revenues have increased substantially over the last several quarters, as: Quarter Ended Revenue ------------- -------- 9/30/06 $192,097 12/31/06 $223,123 3/31/07 $326,906 6/30/07 $438,764 9/30/07 $971,965 12/31/07 $1,010,183 (unaudited) More information is available at http://www.BizAuctions.com Investors and media can receive a free investor kit for BizAuctions Inc. by contacting Investor Relations at investors@BizAuctions.com or (800) 961-3275. A virtual tour of BizAuctions' facilities and flash video presentation can be viewed at http://www.bizauctions.com/tour.shtml About BizAuctions BizAuctions Inc. (PINKSHEETS: BZCN) provides commercial eBay liquidation services for excess inventory, overstock items, and returns. The company's clients have included some of the United States' leading retail names at the forefront of their industries. BizAuctions' operations are designed for maximum capacity to handle most any eBay liquidation project. About AmeriResource Technologies Headquartered in Las Vegas, AmeriResource Technologies Inc. (OTC BB: AMREE.OB) -- http://www.ameriresourcetechnologies.com/-- operates online auction drop-off locations that provide the general public to sell items on eBay. It provides software design and product development for businesses that sells items on eBay. AmeriResource also offers software and hardware system, and self- serve system called Point of Sales, which offers integrated system, including restaurant management tools/menus that offer various reports for inventory and labor control. The company was incorporated in 1989 as KLH Engineering Group Inc. and changed its name to AmeriResource Technologies Inc. in 1996. At June 30, 2007, AmeriResource Technologies Inc.'s consolidated balance sheet showed $1.2 million in total assets and $2.4 million in total liabilities, resulting in a $1.2 million total stockholders' deficit. Going Concern Doubt As reported in the Troubled Company Reporter on May 17, 2007, De Joya Griffith & Company LLP, in Las Vegas, expressed substantial doubt about AmeriResource Technologies Inc.'s ability to continue as a going concern after auditing the company's financial statement as of the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses from operations, negative working capital, and negative cash flows from operations. AQUILA INC: C.W. Mining Blasts Chapter 11 Involuntary Petition -------------------------------------------------------------- C.W. Mining Co., dba Co-Op Mining Company, asked the U.S. Bankruptcy Court for the District of Utah to trash the involuntary chapter 11 petition filed by three of its creditors, Steven Oberbeck writes for The Salt Lake Tribune. The three petitioning creditors are Aquila Inc., House of Pumps Inc., and Owell Precast LLC. C.W. Mining contested that before the creditors' petition was filed, it "generally" repaid its debts on time, Tribune relates. The Debtor added that the $3,440 trade debt allegedly owed to Owell Precast LLC, has already been satisfied, Tribune reveals. On Aquila's demand for a $24.8 million judgment, the Debtor said that the claim is still on dispute since the verdict issued by the Hon. Tena Campbell of the U.S. District Court has been appealed, the report says. At a trial, Judge Campbell found that the Debtor missed the delivery of several thousands of tons of coal and subsequently awarded Aquila the $24.8 million judgment, based on the report. According to Tribune's report, the Debtor claims that two out of the three creditors weren't fit to file the involuntary petition. The Debtor's special counsel, Russell S. Walker, Esq., at Woodbury & Kesler, argued that since there are more than a dozen creditors, at least three of them must file the involuntary petition, Tribune notes. About C.W. Mining Salt Lake City, Utah-based C.W. Mining Co., dba Co-Op Mining Company, mines coal near the base of Huntington Canyon in Emery County. In 2003, about 75 workers were on strike alleging low pay and unsafe working condition in the company's mine. The workers also demanded re-employment of those who were fired because of union membership. The workers had planned to form the United Mine Workers. However, C.W. Mining continues to employ non-union workers. Creditors, Aquila Inc., House of Pumps Inc., and Owell Precast LLC filed involuntary chapter 11 petition against C.W. Mining on Jan. 8, 2008 (Bankr. D. Utah Case No. 08-20105). Keith A. Kelly, Esq., represents the petitioning creditors. Aquila seeks judgment of $24,841,988, House of Pumps demands repayment of trade debt worth $19,256 and Owell Precast demands payment of $3,440 in trade debt. About Aquila Inc. Headquartered in Kansas City, Missouri, Aquila Inc. (NYSE: ILA) -- http://www.aquila.com/-- owns electric power generation and operates electric and natural gas transmission and distribution networks serving over 900,000 customers in Colorado, Iowa, Kansas, Missouri and Nebraska. * * * Aquila Inc. still carries Moody's Investors Service's Ba2 corporate family, Ba3 Senior Unsecured Debt, and Ba3 probability- of-default ratings. AQUILA INC: Sale of Assets to Black Hills Awaits Final Order ------------------------------------------------------------ Black Hills Corporation and Aquila Inc. said that the Colorado Public Utilities Commission approved their proposed acquisition natural gas and electric utility assets and related operations in the State of Colorado. The final order is expected before the end of February 2008. David R. Emery, Chairman, President and CEO of Black Hills Corporation, said, "We are excited to have Colorado's approval of our transaction. We appreciate the considerable efforts of the administrative law judge and the commissioners in reviewing the record and producing a fair and timely decision regarding the transfer of Aquila's Colorado electric and natural gas utility assets to Black Hills. We are anxious to join with the employees of Aquila in providing quality service to customers in Colorado." In Colorado, Aquila's electric utility serves approximately 92,000 customers in 21 communities and the natural gas utility serves about 64,000 customers in 27 communities located in the southeast part of the state. "Our employees are working diligently in preparation for a deal close as soon as the remaining regulatory approvals are received in Kansas and Missouri," said Mr. Emery. Black Hills and Aquila have obtained state regulatory approvals in Iowa, Nebraska and now Colorado. To close the transaction, Black Hills and Aquila need to obtain regulatory approval in Kansas, and Great Plains and Aquila need to obtain regulatory approvals in Kansas and Missouri. The application for Black Hills' purchase of Aquila's Kansas gas utility properties is pending before the Kansas Corporation Commission, which held a hearing on Feb. 12, 2008, to consider a settlement agreement between all parties to the Black Hills and Aquila application. At the conclusion of the hearing, the record was closed, and the parties now await a final decision from the Kansas Corporation Commission. About Black Hills Black Hills Corporation (NYSE: BKH) -- http://www.blackhillscorp.com/-- is an integrated energy company. Its utility businesses are Black Hills Power, an electric utility serving western South Dakota, northeastern Wyoming and southeastern Montana; and Cheyenne Light, Fuel & Power, an electric and gas distribution utility serving the Cheyenne, Wyo., vicinity. Black Hills Energy, its wholesale energy business unit, generates electricity, produces natural gas, oil and coal, and markets energy. About Aquila Inc. Headquartered in Kansas City, Missouri, Aquila Inc. (NYSE: ILA) -- http://www.aquila.com/-- owns electric power generation and operates electric and natural gas transmission and distribution networks serving over 900,000 customers in Colorado, Iowa, Kansas, Missouri and Nebraska. * * * Aquila Inc. still carries Moody's Investors Service's Ba2 corporate family, Ba3 Senior Unsecured Debt, and Ba3 probability- of-default ratings. ARTISTDIRECT INC: Hires Salem to Look for Strategic Options ----------------------------------------------------------- ARTISTdirect Inc. entered into an engagement letter with Salem Partners LLC on Feb. 7, 2008, under which the firm will act as the company's financial advisor. Salem will assist the company in the exploration of strategic alternatives -- including restructuring initiatives, a merger or a possible sale. Specifically, Salem Partners will: (a) review selected documents and other information provided by the Company; (b) assist in structuring, planning and negotiating a transaction. (c) advise the company with respect to a potential transaction; (d) complete and deliver a fairness opinion regarding the M&A transaction or restructuring transaction to the Board of Directors of the company, if requested. As consideration for its services under the engagement letter, Salem Partners will receive $50,000 per month for the first four months, plus an M&A Transaction Fee once an M&A Transaction is consummated. Salem Partners will also receive fees in connection with a restructuring transaction. "ARTISTdirect operates one of the largest and most highly respected music brands on the Internet, with strong potential to further leverage its position to generate increased advertising sales and related marketing initiatives," Stephen Prough, managing director of Salem Partners LLC, said. "In addition, the company's proprietary MediaDefender technology offers unique opportunities, not only for digital content protection on file sharing networks, but related marketing and advertising programs to reach new audiences." "We look forward to working with management to maximize the inherent value of the company," Mr. Prough stated. Forbearance and Consent Agreement On Feb. 10, 2008, ARTISTdirect Inc. entered into a forbearance and consent agreement with U.S. Bank National Association, as collateral agent, and JMB Capital Partners LP, JMG Capital Partners LP, JMG Triton Offshore Fund Ltd., and CCM Master Qualified Fund Ltd. Under the terms of the agreement, the initial purchasers will forbear from exercising their rights and remedies under the senior financing documents for a period through Feb. 20, 2008, in exchange for the payment by the company of the aggregate amount of $494,446 to the initial purchasers. The payment amount will be credited against the company's delay cash penalties and interest on the penalties resulting from its defaults under its various agreements with the initial purchasers. Going Concern Doubt As reported in the Troubled Company Reporter on May 7, 2007, Gumbiner Savett Inc. in Santa Monica, Calif., expressed substantial doubt about Artistdirect 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 default under its senior and subordinated debt agreements and suggested that the default could cause a request for accelerated payment or redemption of the debt. The company has not filed its annual report for 2007. About Salem Partners LLC Headquartered in Los Angeles, California, Salem Partners -- http://www.salempartners.com/-- is a financial services firm provides investment banking and wealth management services to its clients. The firm's investment banking division provides mergers and acquisitions and capital raising services to clients in the media, entertainment, technology and life sciences industries. Salem Partners' clients include Sony Pictures Entertainment, Hearst Entertainment, RHI Entertainment and JP Morgan Chase Bank. Salem Partners was founded in 1997 and has completed more than 30 transactions in the entertainment and technology industries. About ARTISTdirect Inc. Headquartered in Santa Monica, California, ARTISTdirect Inc. (OTC.BB: ARTD) is a digital media entertainment company that is home to an online music network and, through its MediaDefender subsidiary, is the leading provider of anti-piracy solutions in the Internet-piracy-protection industry. The ARTISTdirect Network is a network of web-sites offering multi-media content, music, news and information organized around shared music interests, music-related specialty commerce and digital music services. ASARCO LLC: Environmental Regulator OKs Reopening of El Paso Mine ----------------------------------------------------------------- The Texas Commission on Environmental Quality approved ASARCO LLC and its debtor-affiliates' request to renew their air permit for them to reopen the El Paso Smelter. In May 2005, the U.S. Environmental Protection Agency issued a Unilateral Administrative Order to ASARCO LLC requiring the company to conduct remediation actions regarding hundreds of residential properties located within a three-mile radius of its copper smelter in the city of El Paso, Texas. ASARCO ceased smelting copper at the El Paso Smelter in 1999. ASARCO has expressed its intent to re-open the El Paso Smelter and has filed a proceeding before the Texas Commission on Environmental Quality for renewal of its Air Quality Permit. The Air Permit is a prerequisite for the reopening of the Smelter, H. Christopher Mott, Esq., at Gordon Mott & Davis, P.C., in El Paso, Texas, said. Mr. Mott related that renewal of ASARCO's permit has been hotly contested and opposed to by numerous government agencies and concerned citizens and environmental groups, including the city of El Paso. He said multiple hearings have already been held before the TCEQ in the Air Permit Proceeding, including a two-week hearing before administrative law judges through the Texas State Office of Administrative Hearings. Mr. Mott told the Court that El Paso intended to file a Petition for Revocation of ASARCO's Air Permit to block the Smelter's reopening. Smelter Should not Re-Open, Study Says A study conducted by El Paso showed that 43.8% of respondents polled from the city and Sunland Park are against re-opening the copper smelter, Daniel Novick at the KFOX News, reported. Of the respondents, 26.4% were for the re-opening and 29.8% were unsure, Mr. Novick said. The polls were conducted from July 11 to 23, 2007. Mayor John Cook, mayor of El Paso, related to Mr. Novick that the number of jobs ASARCO would create as a result of the re-opening does not outweigh the number of jobs lost from businesses that would either leave or not come to El Paso because of the Smelter. ASARCO Responds to Study Bob Litle, the Smelter's manager, said in a public statement that the Study confirms that the majority of people who are informed on the ASARCO issue are likely to be in favor of smelter's re-opening. He pointed out that the majority of the businesses contacted are in favor of ASARCO opening. Mr. Litle added that a residential poll published by the El Paso Times on October 29, 2007, in showed that 50.1% of El Paso residents are in favor of ASARCO reopening. The El Paso Time poll was more recent compared to the Study, which was done in July 2007, he pointed out. Mr. Litle maintained that re-opening the smelter will create about 1,800 jobs. Asarco Inc. Will not Re-Open Smelter Asarco Incorporated, an indirect subsidiary of Grupo Mexico, S.A. de C.V., and sole owner of ASARCO LLC, said in a public statement that it will not seek to restart the El Paso smelter, or seek to renew the air permit for the facility if it regains control of ASARCO LLC. Asarco Inc. also said in the press release that should it regain control, it would have ASARCO LLC work with the community and the appropriate regulatory agencies to remediate environmental contamination at the site. Previous Objections The Debtors, their Official Committee of Unsecured Creditors, and the Official Committee of Unsecured Creditors of the Asbestos Subsidiary Debtors and Robert C. Pate, the Court-appointed Future Claims Representative, previously opposed the request of the city of El Paso, Texas, to lift the automatic stay to allow it to file a Petition for Revocation of ASARCO's air permit for the company's copper smelter in the city. The Objectors asserted that the filing of a Petition for Revocation is an administrative proceeding and is redundant of the pending administrative proceeding ASARCO filed before the Texas Commission on Environmental Quality. The Objectors further asserted that the TCEQ is the right forum to decide whether ASARCO's application for air permit renewal is proper. The Objectors pointed out that denying El Paso's request will not cause hardship to the city. On the contrary, lifting the automatic stay will cause substantial hardship to ASARCO's estate, Tony M. Davis, Esq., at Baker Botts, L.L.P., in Houston, Texas, ASARCO's counsel, asserted. Mr. Davis told the Court that El Paso's rights are fully protected by its participation in ASARCO's Air Permit Renewal Proceeding before the TCEQ and its statutory right to appeal any decision to be made by TCEQ. Mr. Davis said El Paso is actively participating in the Air Permit Renewal Proceeding. Mr. Davis related that in accordance with ASARCO's proposal to sell substantially all of its assets pursuant to a plan of reorganization, it is in the process of obtaining considerable value for the El Paso Smelter. TCEQ Approves El Paso Smelter Re-Opening In separate news, Reuters reported on Feb. 13, 2008, that the TCEQ approved ASARCO's request to renew air permit for its copper smelter in El Paso, Texas. Approval of the Air Permit will allow ASARCO to re-open the El Paso smelter. Officials and residents are worried that renewed operations of the smelter will increase emissions of lead, sulfur dioxide and other pollutants. Reuters said the El Paso smelter has had a history of complaints over its compliance with pollution regulations. Larry Soward, a TCEQ Commissioner, told Reuters that under Texas law, the Commission must approve the air permit if ASARCO addresses deficiencies raised in a 2007 report from the TCEQ executive director in a given period. The TCEQ wants ASARCO to address all additional permit conditions, including additional air monitoring for lead emissions before the El Paso Smelter is allowed to restart, according to Reuters. The TCEQ has also limited the validity of the air permit for five years. The TCEQ has also stipulated that it will certify that ASARCO is not in violation of the Texas Clean Air Act at least 90 days before the smelter becomes operational again, Reuters said. The TCEQ has directed ASARCO to submit a maintenance plan no later than July 1, 2008. About ASARCO Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/ -- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. The Company filed for chapter 11 protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor in its restructuring efforts. Lehman Brothers Inc. provides the ASARCO with financial advisory services And investment banking services. Paul M. Singer, Esq., James C. McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the Official Committee of Unsecured Creditors and David J. Beckman at FTI Consulting, Inc., gives financial advisory services to the Committee. When the Debtor filed for protection from its creditors, it listed $600 million in total assets and $1 billion in total debts. The Debtor has five affiliates that filed for chapter 11 protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521 through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Details about their asbestos-driven chapter 11 filings have appeared in the Troubled Company Reporter since Apr. 18, 2005. Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05- 21346) also filed for chapter 11 protection, and ASARCO has asked that the three subsidiary cases be jointly administered with its chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case was converted to a Chapter 7 liquidation proceeding. The Court appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7 Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee. ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC, and ASARCO Exploration Company Inc., filed for Chapter 11 protection on Dec. 12, 2006 (Bankr. S.D. Tex. Case No. 06-20774 to 06-20776). The Court gave the Debtors until April 11, 2008 to file a plan of reorganization. ATLAS PIPELINE: Incurs $102.1MM Net Loss For 2007 Fourth Quarter ---------------------------------------------------------------- Atlas Pipeline Partners L.P. reported a $102.1 million net loss attributable to partners for the three months ended Dec. 31, 2007 compared to $6.8 million net income for the fourth quarter of 2006. For the full fiscal year of 2007 ended Dec. 31, the company incurred a net loss of $150.5 million compared to the net income of 2006 at $31.8 million. The company generated revenues of $213.5 million for the 2007 fourth quarter from $116.8 million for the 2006 fourth quarter. For the fiscal year 2007, the company's total revenues were $668.8 million from $464.7 million of the prior year. Distributable cash flow excluding maintenance capital expenditures was $52.6 million for the fourth quarter 2007 compared with $16.3 million for the prior year fourth quarter, an increase of $36.3 million or 223%. Distributable cash flow including maintenance capital expenditures totaled $47.3 million for the fourth quarter 2007 compared to $14.6 million for the comparable prior year quarter, an increase of $32.7 million or approximately 224%. The partnership's distribution coverage ratio for the fourth quarter 2007 was approximately 1.2x. The quarter-over- quarter results were favorably impacted by contributions from the Chaney Dell and Midkiff/Benedum systems, which the partnership acquired in July 2007, and higher volumes on all of its other systems, partially offset by higher maintenance capital expenditures than expected on a normalized basis. Distributable cash flow totaled $122.5 million for the full year 2007 compared with $60.3 million for the prior year, an increase of $62.2 million or approximately 103%. On Feb. 14, 2008, the partnership paid a record quarterly cash distribution for the fourth quarter 2007 of $0.93 per common limited partner unit, an increase of $0.07 per unit or 8.1% from the comparable prior year period. Total distributions declared for the fourth quarter 2007 of $41.1 million represent a 166% increase from the prior year comparable quarter. General and administrative expense, including amounts reimbursed to affiliates, increased $38.4 million to $61.0 million for the full year 2007 compared with $22.6 million for the prior year. This increase was primarily related to a $30.0 million increase in non-cash compensation expense and higher costs of managing our operations, including the Chaney Dell and Midkiff/Benedum systems acquired in July 2007, and related incentive compensation. General and administrative expense also increased $2.3 million to $9.4 million for the fourth quarter 2007 from $7.1 million for the fourth quarter 2006. This increase was primarily related to higher costs of managing the partnership's operations. Interest expense increased $36.9 million to $61.5 million for the full year 2007 compared with the prior year and increased $17.0 million to $23.4 million for the fourth quarter 2007 compared with the prior year comparable quarter. These increases were primarily related to interest associated with the partnership's $830.0 million term loan, which was funded in July 2007 and partially financed its acquisition of the Chaney Dell and Midkiff/Benedum systems, additional borrowings under the partnership's credit facility to finance its expansion capital expenditures, and $5.0 million of accelerated amortization of deferred finance costs associated with the partnership's replacement of its credit facility in July 2007 with a new $300.0 million revolving credit facility. Excluding non-cash amortization of deferred financing costs, cash interest expense for the fourth quarter 2007 was $22.7 million compared with $5.8 million for the prior year fourth quarter, and $54.1 million for the full year 2007 compared with $23.6 million for the full year 2006. At Dec. 31, 2007, the partnership's $1,229.4 million of total debt includes its $830.0 million term loan that matures in 2014, $294.4 million of senior unsecured notes that mature in 2015 and $105.0 million of outstanding borrowings under its $300.0 million credit facility. As of Dec. 31, 2007, the company's balance sheet reflected total assets of $2.9 billion, total liabilities of $1.2 billion resulting to a total partner's capital of $1.3 billion. About Atlas Pipeline Partners Headuquartered in Moon Township, Pennsylvania, Atlas Pipeline Partners L.P. (NYSE:APL) is a limited partnership and a midstream energy services provider engaged in the transmission, gathering and processing of natural gas. The company provides natural gas gathering services in the anadarko basin and golden trend area of the mid-continent United States, and the appalachian basin in the eastern United States. It provides natural gas processing services in Oklahoma. The company also provides interstate gas transmission services in south eastern Oklahoma, Arkansas and south eastern Missouri. The company conducts its business through two operating segments: mid-continent operations and appalachian operations. The company's operations are conducted through subsidiaries whose equity interests are owned by Atlas Pipeline Operating partnership L.P., a wholly owned subsidiary of the company. On May 2, 2006, the company acquired the remaining 25% interest in NOARK Pipeline System Limited partnership, from Southwestern Energy company. * * * Moody's Investors Service, on September, 2007, assigned a 'Ba3' rating on Atlas Pipeline Partners' bank loan debt, 'B3' rating to the company's senior unsecured debt, and 'B1' to its long term corporate family and probability of default rating, with a negative outlook. These rating actions still holds to date. AVENTINE RENEWABLE: S&P's B+ Rating Unaffected by Failed Auctions ----------------------------------------------------------------- Standard & Poor's Ratings Services announced that the recently failed auctions of the auction rate securities held by Aventine Renewable Energy Holdings Inc. (B+/Stable/--) will not immediately affect the company's credit quality. While Aventine's liquidity may be jeopardized if the company's investment in student loan asset-backed securities (SLABs) experiences a sustained period of illiquidity, Aventine has sufficient access to capital to continue work on two new facilities already under construction in the short term. The company invested in SLABs, which are supported by guarantees from the Federal Family Education Loan Program of the U.S. Department of Education. These auction rate securities have long- term maturities with interest rates that reset in auctions that occur every 28 days. Standard & Poor's rates each of the securities held by Aventine as 'AAA' and believes the fundamental default probability of the issues has not changed. However, global liquidity concerns have contributed to auction difficulties for these instruments, preventing Aventine from selling its position in the securities without realizing a large discount. Aventine has about $100 million in cash on hand, consisting of $17.2 million of cash reported as of Dec. 31, 2007 and $84.3 million in proceeds from the sales of auction rate securities between year-end 2007 and Feb. 21, 2008. While the company was able to liquidate this amount of its ARS investment at a loss of $1.5 million, it has $127.1 million still invested in the securities. As long as the auctions fail to clear and Aventine holds the securities, short-term liquidity is reduced by this amount. The current schedule for the plants under construction at Aurora, Nebraska and Mt. Vernon, Ind. calls for capital expenditures of about $70 million to $75 million per quarter over the next four quarters. This budget would require Aventine to draw at least a portion of its asset-backed revolver in about four months if the FFELP-backed securities continue to experience failed auctions. With its current availability of $122 million, the fully drawn revolver plus existing cash would not provide sufficient funding to complete the two facilities. S&P will continue to monitor the auctions for Aventine's SLABs. If these auctions continue to fail and construction expenditures deplete existing capital, either the need for additional capital to complete construction or the consequences of postponement may put downward pressure on the corporate credit rating. BANC OF AMERICA: S&P Puts Low-B Preliminary Ratings on Six Classes ------------------------------------------------------------------ Standard & Poor's Ratings Services assigned its preliminary ratings to Banc of America Commercial Mortgage Loan Trust 2008- LS1's $1.977 billion commercial mortgage pass-through certificates series 2008-LS1. The preliminary ratings are based on information as of Feb. 26, 2008. Subsequent information may result in the assignment of final ratings that differ from the preliminary ratings. The preliminary ratings reflect the credit support provided by the subordinate classes of certificates, the liquidity provided by the trustee, the economics of the underlying loans, and the geographic and property type diversity of the loans. Classes A-1, A-2, A-3, A-4A, A-4B, A-1A, A-SM, A-M, and A-J are currently being offered publicly. Standard & Poor's analysis of the portfolio determined that, on a weighted average basis, the pool has a debt service coverage of 1.14x, a beginning loan-to-value ratio of 121.4%, and an ending LTV of 114.4%. The rated final maturity date for these certificates is December 2049. Preliminary Ratings Assigned Banc of America Commercial Mortgage Loan Trust 2008-LS1 Recommended Class Rating Amount credit support ----- ------ ------ -------------- A-1 AAA $28,873,000 33.000% A-2 AAA $76,103,000 33.000% A-3 AAA $75,846,000 33.000% A-4A AAA $134,000,000 33.000% A-4B AAA $827,781,000 33.000% A-1A AAA $429,931,000 33.000% A-SM AAA $70,411,000 30.000% A-M AAA $234,706,000 20.000% A-J AAA $99,750,000 15.750% XW* AAA $2,347,065,783 N/A B AA+ $32,272,000 14.375% C AA $29,338,000 13.125% D AA- $23,470,000 12.125% E A+ $23,470,000 11.125% F A $26,404,000 10.000% G A- $23,470,000 9.000% H BBB+ $29,338,000 7.750% J BBB $29,338,000 6.500% K BBB- $29,338,000 5.250% L BB+ $8,801,000 4.875% M BB $8,801,000 4.500% N BB- $8,801,000 4.125% O B+ $5,867,000 3.875% P B $8,801,000 3.500% Q B- $11,735,000 3.000% S NR $70,420,783 0.000% * Interest-only class with a notional amount. N/A - Not applicable. NR - Not rated. BIOENERGY OF AMERICA: Lack of Funds Cues Court to Dismiss Case -------------------------------------------------------------- Early this week, the Hon. Raymond T. Lyons Jr. of the U.S. Bankruptcy Court for the District of New Jersey dismissed the chapter 11 bankruptcy case of Bioenergy of America Inc., The Associated Press relates. The Troubled Company Reporter said on Feb. 19, 2008, that BioEnergy asked the Court dismiss its Chapter 11 case because it lacks financing and is unable to pay employees' wages. Judge Lyons agreed with the Debtor that it didn't have enough money to pay administrative claims depriving it the chance of reorganization under bankruptcy, AP reveals. Paragon Biofuels LLC abandoned its commitment to lend $400,000 for the Debtor's operations, including rental of its facility in Edison, New Jersey and payment of salaries, AP says, citing documents submitted to the Court. Workers at Bioenergy, who have not received pay since the company's bankruptcy filing in Jan. 3, 2008, have decided to stop reporting, AP says. In addition, AP relates that the Debtor's lessor at Edison wanted to seize its unfinished plant, limiting Bioenergy's ability to make an asset sale. Based on the report, Bioenergy has spent $6 million on the Edison plant, an 80-million gallon biofuel production facility expected to become operational in less than a year. The plant, AP reports, is valued at less than $1 million. Affiliate to Closes Two Plants The TCR reported on Jan. 24, 2008, that Bioenergy of Colorado halted operations at its two facilities in Denver over the bankruptcy of Bioenergy of America Inc., an affiliate. Tom Davanzo, principal owner of Bioenergy plants said he expected a partially finished facility in Edison, New Jersey to be shelved and described the unfinished plant as "an awful big project." About Bioenergy Edison, New Jersey-based Bioenergy of America Inc. -- http://www.bioenergyofamerica.com/-- specializes in producing biofuel alternatives. The Debtor filed for chapter 11 petition on Jan. 3, 2008 (Bankr. D.N.J. Case No. 08-10087). Richard E. Weltman, Esq., at Weltman & Moskowitz LLP represents the Debtor in its restructuring efforts. When the Debtor filed for bankruptcy, it listed assets between $1 million and $10 million and debts between $10 million and $50 million. The Debtor owes $7,600,000 and $2,301,581, respectively to unsecured creditors, Paragon Biofuels LLC and M.P.A. BLAST ENERGY: Court Confirms Second Amended Plan of Reorganization ------------------------------------------------------------------ Blast Energy Services Inc. reported that the U.S. Bankruptcy Court for the Southern District of Texas has entered an order confirming its Second Amended Plan of Reorganization. This ruling allows the Company to emerge from Chapter 11 bankruptcy in the next few days. The overall impact of the confirmed Plan is for Blast to emerge with unsecured creditors fully paid, have no debt service scheduled for at least two years, and keep equity shareholders' interests intact. The major components of the Plan, which was overwhelmingly approved by creditors and shareholders, are detailed in the following paragraphs. Under the terms of this confirmed Plan, the company has raised $4.0 million in cash proceeds from selling convertible preferred securities to Clyde Berg and McAfee Capital, two parties related to the company's largest shareholder, Berg McAfee Companies. Upon receipt by the escrow agent of the written confirmation order, these funds will be released to the company and will be used to pay 100% of the unsecured creditor claims, all administrative claims, and all statutory priority claims for a total amount of approximately $2.4 million. The remaining $1.6 million will be used to execute an operational plan, including but not limited to, reinvesting in the Satellite Services and Down-hole Solutions businesses and pursuing an emerging Digital Oilfield business. This Plan also preserves the equity interests of our existing shareholders. Further, the company will continue to prosecute the litigation against Quicksilver Resources and Hallwood Petroleum/Hallwood Energy. Blast has previously estimated these legal recoveries to be in the range of $15 million to $45 million (gross). Trial dates have been set for April 14, 2008 and Sept. 15, 2008 for Hallwood and Quicksilver respectively. Under the terms of the Plan, the company will carry these three secured notes -- none of which are due and payable for at least two years: -- A $2.1 million interest-free senior note with Laurus Master Fund is secured by the assets of the company and payable from a 65% portion of the proceeds that may be received for the customer litigation lawsuits or asset sales; -- A $125,000 note to McClain County, Oklahoma for property taxes will also be paid from the receipt of litigation proceeds, or otherwise, it converts to a six-percent interest bearing note in February 2010; -- A pre-existing secured $1.1 million eight-percent note with Berg McAfee Companies has been extended for an additional three years and contains an option to be convertible into company stock at $0.20 per share. No other claims exist on the future operating cash flows of the company. The convertible preferred security issued under the terms of the Plan carries a cumulative dividend rate of eight percent and is convertible into common stock at $0.50 per share. The offering includes 25% warrant coverage with an exercise price of $0.10 over a three-year term and is subject to certain mandatory conversion provisions. Certain other liabilities, including $800,000 in financing obtained during the bankruptcy period, will be converted into common stock at $0.20 per share now that the Plan has been confirmed. As a result, the Company expects to have approximately 64 million shares issued and outstanding on a going forward basis including the preferred shares issued under the Plan. The equivalent fully diluted number of shares is expected to be approximately 88 million, which includes the impact from all unexercised stock option and warrants and the conversion option of the Berg McAfee secured note. Also, as a part of its Plan, the company will be implementing certain other corporate matters, including: -- Changing its corporate domicile from the State of California to the State of Texas; -- Increasing its authorized shares from 100 million to 200 million, including 20 million shares of preferred stock; -- Reducing membership of its Board of Directors - O. James Woodward III, Fred Ruiz, and Scott Johnson will be retiring and current Vice Chairman, H. Roger "Pat" Herbert, has agreed to serve as Chairman of the new Board. About Blast Energy Headquartered in Houston, Blast Energy Services Inc. and its debtor-affiliate Eagle Domestic Drilling Operations LLC -- http://www.blastenergyservices.com/-- owns and contracts land drilling rigs to third parties. The Debtor also provides services relating to drilling rig operations. Blast Energy owns and develops abrasive jetting intellectual property, technology and equipment providing downhole production enhancement and drilling solutions, and satellite broadband access for Internet, data, email, applications, VoIP and video streaming as energy industry management tools providing real-time supervisory control and data acquisition. The company filed for Chapter 11 protection on Jan. 19, 2007 (Bankr. S.D. Tex. Case No. 07-30424 and 07-30426). H. Rey Stroube, III, Esq., represent the Debtors. The Official Committee of Unsecured Creditors is represented by Alan D. Halperin, Esq., at Halperin Battaglia Raicht LLP. When the Debtor filed for protection from its creditors, it listed total assets of $63,500,851 and total debts of $51,019,486. BLUE WATER: To Give Access & Security Rights to Big 3 Automakers ---------------------------------------------------------------- The $25,000,000 postpetition financing to be funded by Citizens Bank to Blue Water Automotive Systems Inc. is contingent on the provision of financial accommodations by certain of Blue Water's major customers. Judy A. O'Neill, Esq., at Foley & Lardner LLP, in Detroit, Michigan, informs the U.S. Bankruptcy Court for the Eastern District of Michigan that Ford Motor Company, General Motors Corporation, and Chrysler LLC have agreed "in concept" to provide certain financial accommodations to the Debtors. As of February 15, 2008, only Ford had agreed to provide financial accommodation to the Debtors. Blue Water didn't specify the final value of the accommodations, comprised of credit agreements and surcharge payments, to be provided by the Participating Customers. Ms. O'Neill relates that the Debtors, the Participating Customers and Citizens Bank continue to negotiate the final terms of the financial accommodations, and the access and security rights to be granted by the Debtors in exchange for the accommodations. The financial accommodations expected to be granted by the Participating Customers to the Debtors include: -- An agreement not to resource production from the Debtors prior to a specified date. -- Expedited payment terms (not to exceed 14 days of sales outstanding on average). -- Execution of a credit enhancement agreement. -- A guaranty by Ford of overformula advances. -- Payment by each of GM and Chrysler of a weekly surcharge. -- Separate funding by each of the Participating Customers of all capital expenditures relating to new programs that the Debtors are launching for the Participating Customer. -- Direct payment by the respective Participating Customers of the unpaid purchase price for certain tooling. The accommodations would be in exchange for certain obligations of the Debtors, including: * The Debtors' agreement to build inventory banks on certain terms. * The Debtors' engagement in a process for the sale of all or substantially all of their assets to a qualified buyer on an agreed timeline. * The Debtors' agreement to use their commercial best efforts to obtain agreements of each of their other customers who represent two% or more of their sales to provide accommodations to the Debtors with equivalent economic benefit as those of the Participating Customers. * An acknowledgment by the Debtors as to the ownership of tooling used to manufacture parts for the Participating Customers. In addition, the Debtors have agreed to grant the Participating Customers access and other security rights, including liens: (1) The Debtors' grant to the Participating Customers of the right to use and occupy the Debtors' operating assets and real estate to manufacture parts for those customers on a default. (2) The Debtors' grant of liens and security interests in the operating assets and real estate to secure the Debtors' obligations to grant the Participating Customers the Right of Access. (3) The Debtors' indemnification of the Participating Customers from losses or liabilities arising from claims or liabilities arising or accruing before the exercise of the Right of Access. (4) The Debtors' acknowledgment that the Participating Customers would not have an adequate remedy at law and would be entitled to specific performance of the Right of Access, including through the appointment of a receiver. (5) The Debtors' acknowledgment that the Participating Customers would suffer irreparable harm if they exercise the Right of Access and the Debtors fail to cooperate with them and the Debtors' waiver of more than 48 hours' notice of any judicial proceeding instituted by the Participating Customers to enforce the Right of Access. (6) The Debtors' grant of a non-exclusive worldwide, irrevocable, fully paid right and license to use any intellectual property to develop and manufacture the parts in connection with an exercised Right of Access. The Debtors seek the Court's authority to enter into accommodation agreements with the Participating Customers. Ms. O'Neill tells the Court that the Debtors are in dire need of financing to continue their efforts to maintain the value of their estates, and the Debtors are unable to obtain financing on terms that do not include the provision of access and security rights to the Participating Customers. About Blue Water Automotive Blue Water Automotive Systems, Inc. designs and manufactures engineered thermoplastic components and assemblies for the automotive industry. The company's product categories include airflow management, full interior trim/sub-systems, functional plastic components, and value-added assemblies. They are supported by full-service design, program management, manufacturing and tooling capabilities. With more than 1,400 employees, Blue Water operates eight manufacturing and product development facilities and has annual revenues of approximately US$200 million. The company's headquarters and technology center is located in Marysville, Mich. The company has operation in Mexico. In 2005, KPS Special Situations Fund II, L.P., and KPS Special Situations Fund II(A), L.P., acquired Blue Water Automotive through a stock purchase transaction. In 2006, the company acquired the automotive assets and operations of Injectronics, Inc., a manufacturer of thermoplastic injection molded components and assemblies. KPS then set about reorganizing the company. The company implemented a program to improve operating performance and address its liquidity issues. During 2007, the company replaced senior management, closed two facilities, and reduced overhead spending by one third. Blue Water Automotive and four affiliates filed for chapter 11 bankruptcy protection Feb. 12, 2008, before the United States Bankruptcy Court Eastern District of Michigan (Detroit) (Case No. 08-43196). Blue Water's bankruptcy petition lists assets and liabilities each in the range of US$100 million to US$500 million. (Blue Water Automotive Bankruptcy News Issue No. 5, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) BLUE WATER: Can Use Cash Collateral Through March 3 --------------------------------------------------- The U.S. Bankruptcy Court for the Eastern District of Michigan authorized Blue Water Automotive Systems, Inc., and its affiliates to utilize not more than $16,000,000 of the company's operating cash through March 3, 2008, for purposes provided under a proposed 13-week budget commencing February 11, 2008. A copy of the 13-Week Proposed Budget is available for free at: http://bankrupt.com/misc/bluewater_13WeekBudget.pdf The Operating Cash includes (i) collections from participating customers, Ford Motor Company, General Motors Corporation, and Chrysler LLC, including a $7,700,000 payment from Ford; (ii) collections on prepetition and postpetition receivables from other customers; and (iii) the $2,640,000 in financial accommodations provided by the Participating Customers. The Participating Customers will provide a total of $2,640,000 of financial accommodations to the Debtors during the period between February 25 to March 3: Customer Cash Payment -------- ------------ Ford $1,800,000 GM 490,000 Chrysler 350,000 The Participating Customers are granted a second priority junior lien in the assets that are subject to the CIT Replacement Lien, subordinate and junior in all respects to the CIT Replacement Lien, to the extent of each Participating Customer's financial accommodation. The Prepetition Lenders will be granted a replacement lien in the assets of the Debtors in the amount equal to the Operating Cash used by the Debtors until March 3, 2008. The Debtors will also pay the Prepetition Lenders 55% of the sale price of finished goods sold during the Interim Period, which will be applied to the prepetition revolving loan so that all Prepetition Amounts must be paid in full by March 5. The Budget includes $800,000 for professional fees and expenses incurred during the Interim Period, which amount includes $35,000 for the fees and expenses incurred by the Debtors' counsel. The Court will convene a hearing on March 3 for further extension of the use of cash collateral, if necessary. The Court will also convene a hearing on March 10 to consider final approval of the cash collateral request. Objections to the 3rd Interim Order must be received by March 10. Packaging Materials Supplier Objects St. Clair Packaging, Inc., opposes the Debtors' use of cash generated by the Debtors arising out of the use of unpaid packaging materials it delivered to them. Michael W. Bartnik, Esq., at Bartnik Law Office, in Troy, Michigan relates that St. Clair is owed in excess of $86,218 for prepetition delivery of packaging goods and materials, of which: -- $43,126 worth of goods were delivered during the 45 days immediately preceding the Petition Date, entitling St. Clair to a reclamation claim; and -- About $14,581 of the reclamation goods were delivered 20 days prior to the Petition Date, entitling the claimant to an administrative claim under Section 503(b)(9) of the Bankruptcy Code. Section 363(c)(2) of the Bankruptcy Code provides that a debtor may not use cash collateral without the consent of each creditor with an interest in the cash collateral, which includes the proceeds, offspring, rents or profits of property. Pursuant to Section 363(c)(4), a debtor is required to segregate and account for any cash collateral in their possession, custody or control. St. Clair asks the Court to deny the Debtors access to postpetition financing and to cash collateral unless they promptly pay its $14,581 administrative expense claim. About Blue Water Automotive Blue Water Automotive Systems, Inc. designs and manufactures engineered thermoplastic components and assemblies for the automotive industry. The company's product categories include airflow management, full interior trim/sub-systems, functional plastic components, and value-added assemblies. They are supported by full-service design, program management, manufacturing and tooling capabilities. With more than 1,400 employees, Blue Water operates eight manufacturing and product development facilities and has annual revenues of approximately US$200 million. The company's headquarters and technology center is located in Marysville, Mich. The company has operation in Mexico. In 2005, KPS Special Situations Fund II, L.P., and KPS Special Situations Fund II(A), L.P., acquired Blue Water Automotive through a stock purchase transaction. In 2006, the company acquired the automotive assets and operations of Injectronics, Inc., a manufacturer of thermoplastic injection molded components and assemblies. KPS then set about reorganizing the company. The company implemented a program to improve operating performance and address its liquidity issues. During 2007, the company replaced senior management, closed two facilities, and reduced overhead spending by one third. Blue Water Automotive and four affiliates filed for chapter 11 bankruptcy protection Feb. 12, 2008, before the United States Bankruptcy Court Eastern District of Michigan (Detroit) (Case No. 08-43196). Blue Water's bankruptcy petition lists assets and liabilities each in the range of US$100 million to US$500 million. (Blue Water Automotive Bankruptcy News Issue No. 5, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) BLUE WATER: PolyOne Objects to $25,000,000 DIP Financing -------------------------------------------------------- PolyOne Corporation, which asserts a $952,097 reclamation claim against Blue Water Automotive Systems, Inc. conveyed apprehensions over the proposed $25,000,000 DIP borrowings on grounds that the additional debt would lessen recovery to administrative creditors should Blue Water's reorganization fail. PolyOne tells the U.S. Bankruptcy Court for the Eastern District of Michigan it needs information regarding the strength of the Debtors' operations and cash flow, including the value of the Debtors' assets, both on a going concern and liquidation basis, to determine whether the proposed loan is in the creditors' best interests. Robert C. Folland, Esq., at Thompson Hine LLP, in Cleveland, Ohio, notes that: -- the proposed $25,000,000 financing, of which $15,000,000 will be immediately made available to the Debtors, is being provided on a superpriority basis pursuant to Section 364(c)(1) of the Bankruptcy Code, and stands to be paid ahead of PolyOne and all other administrative claimants in the event of a liquidation; -- Court-appointed professionals are receiving carve-outs for their services rendered postpetition, including a $1,000,000 carve-out should an event of default occur. Without the carve-outs, the professionals' fees would be pari passu with those of PolyOne and other administrative creditors; and -- in addition to the debt, Blue Water will incur multitude of fees for Citizens Bank, including a $250,000 closing fee, collateral monitoring fees, and unused line fees. "It does not appear that any of this new cash is being used to pay down prepetition secured debt, thus significantly increasing the burden these estates," Mr. Folland points out. PolyOne seeks to preserve its rights to object to the final approval of the DIP Loan, asserting that it is not yet convinced that such Postpetition Financing is in the best interests of the creditors of the Debtors' estates. About Blue Water Automotive Blue Water Automotive Systems, Inc. designs and manufactures engineered thermoplastic components and assemblies for the automotive industry. The company's product categories include airflow management, full interior trim/sub-systems, functional plastic components, and value-added assemblies. They are supported by full-service design, program management, manufacturing and tooling capabilities. With more than 1,400 employees, Blue Water operates eight manufacturing and product development facilities and has annual revenues of approximately US$200 million. The company's headquarters and technology center is located in Marysville, Mich. The company has operation in Mexico. In 2005, KPS Special Situations Fund II, L.P., and KPS Special Situations Fund II(A), L.P., acquired Blue Water Automotive through a stock purchase transaction. In 2006, the company acquired the automotive assets and operations of Injectronics, Inc., a manufacturer of thermoplastic injection molded components and assemblies. KPS then set about reorganizing the company. The company implemented a program to improve operating performance and address its liquidity issues. During 2007, the company replaced senior management, closed two facilities, and reduced overhead spending by one third. Blue Water Automotive and four affiliates filed for chapter 11 bankruptcy protection Feb. 12, 2008, before the United States Bankruptcy Court Eastern District of Michigan (Detroit) (Case No. 08-43196). Blue Water's bankruptcy petition lists assets and liabilities each in the range of US$100 million to US$500 million. (Blue Water Automotive Bankruptcy News Issue No. 5, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) BROTMAN MEDICAL: Wants Until May 22 to File Chapter 11 Plan ----------------------------------------------------------- Brotman Medical Center Inc. asks the United States Bankruptcy Court for the Central District of California to further extend its exclusive periods to: a) file a Chapter 11 plan until May 22, 2008; and b) solicit acceptances of that plan until July 21, 2008. The Debtor say that it is currently evaluating some restructuring alternatives that would provide the greatest recovery for all creditors. The Debtor said that it is seeking additional replacement sources of financing to fund a plan and is in negotiation with several lenders regarding that new financing. Accordingly, the Debtor seeks additional time to consider and explore the available opportunities and continue its operational improvements. A hearing has been set on March 12, 2008, to consider approval of the Debtor's request. The hearing will be held at Courtroom 1475 at 255 East Temple Street in Los Angeles, California. About Brotman Medical 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). Courtney E. Pozmantier, Esq., and Stacia A. Neeley, Esq., at Klee, Tuchin, Bogdanoff & Stern, L.L.P., The Debtor selected Kurztman Carson Consultants LLC as its claims agent. The U.S. Trustee for Region 16 appointed nine creditors to serve on a Official Committee of Unsecured Creditors in this case. Buchalter Nemer represents the Creditors Committee. When the Debtor filed for protection against its creditors, it listed assets and debts between $1 million and $100 million. BROTMAN MEDICAL: Ombudsman Taps Greenberg Traurig as Counsel ------------------------------------------------------------ Suzanne Koenig, the appointed patient care ombudsman in Brotman Medical Center Inc., asks the United States Bankruptcy Court for the Central District of California for permission to employ Greenberg Traurig LLP as her counsel, effective as of Jan. 8, 2008. As ordered by the Court on Dec. 18, 2007, the U.S. Trustee for Region 16 appointed SAK Management Services LLC president Suzanne Koenig as patient care ombudsman in the Debtor's case. Greenberg Traurig will: a) represent the Ombudsman in any proceedings or hearing in the Court, and in any action in other courts where the rights of the patients may be litigated or affected as a result of the Bankruptcy case; b) advise the Ombudsman concerning the requirements of the Bankruptcy Code and Bankruptcy Rules and the requirements of the Office of United States Trustee relating to the discharge of her duties under Section 333 of the Bankruptcy Code; c) advise and represent the Ombudsman concerning any potential health law related issues; and d) perform other legal services as may be required under the circumstances of this case in accordance with the Ombudsman's powers and duties as set forth in the Bankruptcy Code. The firm's professionals and their compensation rates are: Professional Hourly Rate ------------ ----------- Nancy A. Peterman, Esq. $615 Adam Starr, Esq. $415 Kerry Carlson, Esq. $215 Designation Hourly Rate ----------- ----------- Shareholders $335-$950 Counsels $320-$800 Associates $200-$585 Legal Assistants $75-$300 Paralegals $75-$300 Nancy A. Peterman, Esq., a shareholder of the firm, assures the Court that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Ms. Peterman can be reached at: Nancy A. Peterman, Esq. (petermann@gtlaw.com) Greenberg Traurig LLP 77 West Wacker Drive, Suite 2500 Chicago, Illinois 60601 Tel: (312) 456-8400 Fax: (312) 456-8435 http://www.gtlaw.com/ 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). Courtney E. Pozmantier, Esq., and Stacia A. Neeley, Esq., at Klee, Tuchin, Bogdanoff & Stern, L.L.P., The Debtor selected Kurztman Carson Consultants LLC as its claims agent. The U.S. Trustee for Region 16 appointed nine creditors to serve on a Official Committee of Unsecured Creditors in this case. Buchalter Nemer represents the Creditors Committee. When the Debtor filed for protection against its creditors, it listed assets and debts between $1 million and $100 million. BRYAN ROAD: Judge Says Agreement to Foreclose in Bankruptcy Valid ----------------------------------------------------------------- The Hon. John K. Olson of the U.S. Bankruptcy Court for the Southern District of Florida acknowledged the validity of an agreement between Bryan Road LLC and secured lender Florida Community Bank that allows the bank to begin foreclosure proceedings if Bryan Road later files for bankruptcy, Bill Rochelle of Bloomberg News reports. Mr. Rochelle relates that on the eve of foreclosure in July, Bryan Road, which owns a 210 unit dry-storage boat condominium in Dania Beach, Florida, entered into a workout contract with the bank, which was owed $8.7 million, providing Bryan Road a grace period to cure defaults. However, the Debtor failed to make payments and filed for Chapter 11 bankruptcy to reorganize on the eve of foreclosure in September, Mr. Rochelle discloses. Judge Olson held that a reorganization plan is not possible since it may take years before all of the 210 condominium units would be sold, Mr. Rochelle recounts. So, the judge allowed the bank to foreclose. Headquartered in Dania, Florida, Bryan Road LLC -- http://www.daniabeachboatclub.com/-- owns and operates a dry dock condominium. The company filed for Chapter 11 protection on Sept. 25, 2007 (Bankr. S.D. Fla. Case No. 07-17922). Andrew J. Nierenberg, Esq., in Coral Gables, Florida, represents the Debtor. When the Debtor filed for protection from its creditors, it listed assets and liabilities between $1 million and $100 million. CENTRAL ILLINOIS: WW Constructor Mulls Sale Bidding Procedure ------------------------------------------------------------- WW Constructors Inc. asks the United States Bankruptcy Court for the Central District of Illinois to deny approval of the bidding procedure for the sale of substantially all of Central Illinois Energy LLC's assets. WW Constructors asserts a mechanic's lien against property owned by the Debtor. WW Constructors asserts that the procedures relating to the resolution of mechanic's lien claims are inadequate in detail as stated in the Debtor's sale request. WW Constructors says that the proposed procedure calls for binding arbitration between the subcontractor mechanic's lien claimants and creditor only. However, Lurgi PSI Inc., a creditor and general contractor of the Debtor, is a necessary party to any arbitration involving subcontractors, it adds. Charles M. Rock, Esq., at Hasselberg Rock Bell & Kuppler LLP in Peoria, Illinois, says that these lien claimants hold claims against Lurgi PSI that exceeds Lurgi's claims against the Debtor. If Lurgi PSI does not participate in binding arbitration, several procedural issues are unresolved, according to WW Constructors. WW Constructors asks the Court to direct the Debtor to modify the sale request. Asset Sale The Debtor asked the Court to approve the bidding procedure for the sale of all its assets for $80 million to Newco LLC, a limited liability company to be formed by the lenders under a certain $87,500,000 secured credit facility dated April 24, 2006. According to the Debtor's motion, Newco will buy the assets subject to any valid, perfected Mechanic's lien claims; provided that Newco will have the benefit of any defenses, counterclaims and all other rights of the Debtor to be asserted against the holders of Mechanic's lien claims. The Debtor proposed March 17, 2008 as bid deadline for qualified bidders to submit their offers. The Debtor will conduct a sale auction on March 20, 2008, at 10:00 a.m., to take place at: Barash & Everett, LLC 256 S. Soangetaha Road, Suite 108 Galesburg, Illinois 61402-1408 The sale is expected to close by March 31, 2008. As reported in the Troubled Company Reporter on Feb. 8, 2008, the Debtor intends to sell it unfinished ethanol plant in Canton, Illinois. The estimated cost of the plant was $40 million during 2001. When the Debtor went bankrupt late last year, at least $130 million was already applied to the still unfinished plant. About Central Illinois Energy Based in Canton, Illinois, Central Illinois Energy LLC -- http://www.centralillinoisenergy.com/-- operates a 37-million gallons-per-year ethanol plant. The Debtor filed for Chapter 11 protection on Dec. 13, 2007 (Bankr. C.D. Ill. Case No 07-82817). Barry M. Barash, Esq., at Barash & Everett, LLC, represents the Debtor in its restructuring efforts. The U.S. Trustee for Region 10 has not appointed creditors to serve on an Official Committee of Unsecured Creditors in this case. When the Debtor filed for protection from its creditors, it listed assets between $1 million to $100 million, and more than $100 million in liabilities. CHOCTAW GENERATION: S&P Downgrades Rating to 'BB+' From 'BBB-' -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on electricity provider Choctaw Generation L.P.'s pass-through trust certificates due 2023 and 2030 to 'BB+' from 'BBB-'. The outlook remains negative. "The downgrade is based on our expectation that operating margins at the plant will remain pressured in the near term until there is a permanent solution to the nagging heat-rate efficiency issue at the plant," said Standard & Poor's credit analyst Chinelo Chidozie. Availability problems in recent years have further pressured fixed-charge coverage at the project. Choctaw, an indirect, wholly owned subsidiary of Suez Energy North America (formerly Tractebel Power), is a 440 MW lignite-fired generating facility that sells power to the Tennessee Valley Authority (TVA; AAA/Stable/--) under a 30-year purchased-power and operating agreement (PPOA). A 30-year lignite sales agreement with Mississippi Lignite Co. protects margins, and the project passes through fuel costs associated with generation to TVA at an assumed heat rate of 10,150 BTU per kilowatt-hour. The negative outlook reflects the likelihood that the planned major maintenance outage in fall 2008 will only partially address the ongoing heat-rate issues at the project, and ultimate resolution may be a few years away. S&P could lower the rating further if the planned outage does not result in improved availability at the plant. A stable outlook would follow improved plant availability, and an upgrade is possible if the heat rate issues are ultimately resolved. CITIZENS COMMS: Board Approves $200 Mil. Stock Repurchase Program ----------------------------------------------------------------- Citizens Communications disclosed that it repurchased 2,175,000 shares of its common stock for $30.9 million during the fourth quarter, and completed its $250.0 million authorized stock repurchase program. The company's board of directors has authorized a new common stock share repurchase program. Under the new program, up to $200 million of common stock may be repurchased over the next 12 months. The company expects that its capital expenditures for the full year 2008 will be roughly $300 million to $310 million, and its free cash flow for the full year 2008 will be roughly $450 million to $475 million. The company's next regular quarterly cash dividend of $0.25 per share will be paid on March 31, 2008 to shareholders of record on March 10, 2008. The company expects that dividends paid to stockholders in 2008 will be treated as dividends for federal income tax purposes. Shareholders are encouraged to consult with their tax advisors. Headquartered in Stamford, Connecticut, Citizens Communications Company (NYSE:CZN) -- http://www.czn.net-- is a communications company providing services to rural areas and small and medium- sized towns and cities. The company operates in one segment: frontier, which provides both regulated and unregulated communications services to residential, business and wholesale customers. During the year ended Dec. 31, 2006, the company added approximately 75,100 new high-speed Internet customers and almost 88,200 customers began buying a bundle or package of its services. At Dec. 31, 2006, it had approximately 393,200 high-speed data customers and almost 517,700 customers buying a bundle or package of services. In 2006, the company sold its CLEC business, Electric Lightwave LLC. In March 2007, the company completed the acquisition of Commonwealth Telephone Enterprises Inc. In November 2007, the company completed the acquisition of Global Valley Networks Inc. and GVN Services. CITIZENS COMMS: S&P Ratings Unmoved by $200 Mil. Stock Repurchase ----------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings and outlook on Stamford, Connecticut-based incumbent local exchange carrier Citizens Communications Co. (BB+/Negative/--) are not affected by the company's recently announced $200 million stock repurchase program. S&P is comfortable that leverage will remain within the parameters of the current rating, even after share repurchases over the next year, although the company will have less financial flexibility in the event that operations deteriorate materially. CONSOLIDATED COMM: To Redeem $130 Mil. 9-3/4% Sr. Notes on April 1 ------------------------------------------------------------------ Consolidated Communications Holdings Inc. will redeem its 9-3/4% Senior Notes due in 2012, of which $130 million in aggregate principle amount are outstanding, on April 1, 2008. The redemption price will be 104.875% of the principal amount plus accrued and unpaid interest to the date of redemption. The company will fund the redemption by borrowing pursuant to the credit agreement dated as of Dec. 31, 2007. The agreement includes a delayed draw term loan facility of up to $140 million for the purpose of funding the senior note redemption and to pay related fees and expenses. The delayed draw term loan facility shall bear an interest rate consistent with other term loans under the credit facility and will mature on Dec. 31, 2014. As a result of this transaction, the company estimates it will save approximately $3 million in annualized cash interest expense. About Consolidated Communications Based in Mattoon, Illinois, Consolidated Communications Holdings, Inc. -- http://www.consolidated.com/-- is a rural local exchange company providing voice, data and video services to residential and business customers in Illinois and Texas. Each of the operating companies has been operating in their local markets for over 100 years. With approximately 241,000 local access lines and over 43,000 digital subscriber lines, the Company offers a wide range of telecommunications services, including local and long distance service, custom calling features, private line services, dial-up and high-speed Internet access, digital TV, carrier access services, and directory publishing. Consolidated Communications is the 17th largest local telephone company in the United States. * * * As reported in the Troubled Company Reporter on Feb. 14, 2008, Standard & Poor's Ratings Services raised its rating on Consolidated Communications Holdings Inc.'s $130 million of 9.75%<