T R O U B L E D   C O M P A N Y   R E P O R T E R

             Saturday, March 1, 2008, Vol. 12, No. 52

                             Headlines



ACCEPTANCE INSURANCE: Incurs $27,965 Net Loss in December 2007
ACCEPTANCE INSURANCE: Earns $624,338 in Month Ended January 2008
AMERICAN LAFRANCE: Files Initial Monthly Operating Report
ASARCO LLC: Files January 2008 Monthly Operating Report
CATHOLIC CHURCH: Davenport Files January 2008 Operating Report

FORTUNOFF: Submits Schedules of Assets and Liabilities
FORTUNOFF: Source Financing Files Schedules of Assets and Debts
FORTUNOFF: Westbury Unit Files Schedules of Assets & Debts
INTERSTATE BAKERIES: Posts $20MM Net Loss for Month Ended Jan. 12
JOHNSON RUBBER: Posts January 2008 Monthly Net Loss of $449,139

LEVITT AND SONS: Delivers Operating Report for January 2008
LEVITZ FURNITURE: Reports $3.9MM Net Loss For Month Ended Feb. 3
LTV CORP: Files January 2008 Monthly Operating Report
NETBANK INC: Files January 2008 Monthly Operating Report
NEUMANN HOMES: Files January 2008 Monthly Operating Report

POPE & TALBOT: Amends Global Notes on Schedules and Statements
POPE & TALBOT: Amends Personal Property & Unsecured Debt Schedules
POPE & TALBOT: P&T Ltd. Amends Schedules of Assets and Debts
POPE & TALBOT: Spearfish Amends Schedules of Assets and Debts
POPE & TALBOT: Lumber Sales Amends Schedules of Assets and Debts

SCO GROUP: Incurs $2,817,756 Loss for Month Ended Jan. 31, 2008
TOUSA INC: TOUSA Homes Files Schedules of Assets and Liabilities
TOUSA INC: West Holdings Files Schedules of Assets and Liabilities
TOUSA INC: Four Affiliates File Schedules of Assets and Debts
TOUSA INC: 31 Affiliates File Schedules of Assets and Debts



                             *********

ACCEPTANCE INSURANCE: Incurs $27,965 Net Loss in December 2007
--------------------------------------------------------------
Acceptance Insurance Companies Inc. filed its monthly operating
report for December 2008 with the United States Bankruptcy Court
for the District of Nebraska on Dec. 31, 2007.

The Debtor reported a net loss of $27,965 and revenue of
$4,447 for the month ended Dec. 31, 2007.

At Dec. 31, 2007, Acceptance Insurance Companies Inc.'s balance
sheet showed:

        Total Current Assets                    $1,296,871
        Total Assets                           $36,236,172
        Total Liabilities                     $138,187,943
        Total Shareholders' Deficit           $101,951,771

A full-text copy of Acceptance Insurance Companies Inc.'s October
2007 Monthly Operating Report is available at no charge at:

               http://researcharchives.com/t/s?285e

Headquartered in Council Bluffs, Iowa, Acceptance Insurance
Companies, Inc.-- http://www.aicins.com/--owns, either directly
or indirectly, several companies, one of which is an insurance
company that accounts for substantially all of the business
operations and assets of the corporate groups.

The company filed for chapter 11 protection on Jan. 7, 2005
(Bankr. D. Nebr. Case No. 05-80059).  The Debtor's affiliates--
Acceptance Insurance Services, Inc. and American Agrisurance, Inc.
-- each filed chapter 7 petitions (Bankr. D. Nebr. Case Nos.
05-80056 and 05-80058) on Jan. 7, 2005.  John J. Jolley, Esq.,
at Kutak Rock LLP, represents the Debtor in its restructuring
efforts.  Lawyers at McGrath North Mullin & Kratz PC LLO.
represent the the Official Committee of Unsecured Creditors in
Acceptance Insurance's case.  As of December 2007, the Debtor
listed $36,326,172 in total assets and $138,187,943 in total
debts.


ACCEPTANCE INSURANCE: Earns $624,338 in Month Ended January 2008
----------------------------------------------------------------
Acceptance Insurance Companies Inc. filed its monthly operating
report for January 2008 with the United States Bankruptcy Court
for the District of Nebraska on Jan. 31, 2008.

The Debtor reported a net income of $624,338 and revenue of
$3,941 for the month ended Jan. 31, 2008.  The company generated
$476,849 equity in operating earnings of A.I.C. during the month
of January 2008, which boosted its income.

At Jan. 31, 2008, Acceptance Insurance Companies Inc.'s balance
sheet showed:

        Total Current Assets                    $1,257,981
        Total Assets                           $36,854,531
        Total Liabilities                     $138,181,963
        Total Shareholders' Deficit           $101,327,432

A full-text copy of Acceptance Insurance Companies Inc.'s October
2007 Monthly Operating Report is available at no charge at:

                http://researcharchives.com/t/s?285e

Headquartered in Council Bluffs, Iowa, Acceptance Insurance
Companies, Inc.-- http://www.aicins.com/--owns, either directly
or indirectly, several companies, one of which is an insurance
company that accounts for substantially all of the business
operations and assets of the corporate groups.

The company filed for chapter 11 protection on Jan. 7, 2005
(Bankr. D. Nebr. Case No. 05-80059).  The Debtor's affiliates--
Acceptance Insurance Services, Inc. and American Agrisurance, Inc.
-- each filed chapter 7 petitions (Bankr. D. Nebr. Case Nos.
05-80056 and 05-80058) on Jan. 7, 2005.  John J. Jolley, Esq.,
at Kutak Rock LLP, represents the Debtor in its restructuring
efforts.  Lawyers at McGrath North Mullin & Kratz PC LLO.
represent the the Official Committee of Unsecured Creditors in
Acceptance Insurance's case.  As of December 2007, Debtor listed
$36,326,172 in total assets and $138,187,943 in total debts.


AMERICAN LAFRANCE: Files Initial Monthly Operating Report
---------------------------------------------------------
American LaFrance, LLC filed an initial monthly operating report
on Feb. 19, 2008, containing an operating forecast for the
13-week period ending April 25, 2008.

William Hinz, chief executive officer of American LaFrance,
reports that the company expects to have a negative total net
cash flow of $52,939,582 for the entire 13-week period.  The
company expects to borrow up to $49,939,582 for the same period.

The company also expects to incur reorganization costs totaling
$25,092,991 for the 13-week period commencing on February 1,
2008.

American LaFrance attached to its Initial Monthly Report copies
of its active insurance certificates and evidence of its debtor-
in-possession bank accounts.

A full-text copy of American LaFrance's initial Monthly Operating
Report is available for free at:

               http://ResearchArchives.com/t/s?28a1

                     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. 6; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


ASARCO LLC: Files January 2008 Monthly Operating Report
-------------------------------------------------------

                        ASARCO LLC, et al.
                           Balance Sheet
                      As of January 31, 2008

ASSETS
   Current Assets:
   Cash                                           $907,971,000
   Restricted Cash                                  25,368,000
   Accounts receivable, net                        173,716,000
   Inventory                                       305,512,000
   Prepaid expenses                                  5,687,000
   Other current assets                             14,511,000
                                               ---------------
Total Current Assets                             1,432,764,000

Net property, plant and equipment                  469,642,000
Other Assets
   Investments in subs                             101,854,000
   Advances to affiliates                              733,000
   Prepaid pension & retirement plan                         0
   Non-current deferred tax asset                   40,951,000
   Other                                           116,753,000
                                               ---------------
Total assets                                    $2,162,698,000
                                               ===============

LIABILITIES
   Postpetition liabilities:
   Accounts payable                                $52,803,000
   Accrued liabilities                             584,788,000
   Debtor-in-possession financing                            0
                                               ---------------
Total postpetition liabilities                     637,591,000

Prepetition liabilities:
Not subject to compromise - credit                   3,824,000
Not subject to compromise - other                  131,781,000
Advances from affiliates                            24,535,000
Subject to compromise                            1,681,644,000
                                               ---------------
Total prepetition liabilities                    1,841,783,000
                                               ---------------
Total liabilities                               $2,479,374,000
                                               ===============

OWNERS' EQUITY (DEFICIT)

Common stock                                       508,324,000
Additional paid-in capital                         104,578,000
Other comprehensive income                        (262,800,000)
Retained earnings: filing date                  (1,557,131,000
                                               ---------------
Total prepetition owners' equity                (1,207,029,000)
Retained earnings: post-filing date                890,353,000
                                               ---------------
Total owners' equity (net worth)                  (316,676,000)

Total liabilities and owners' equity            $2,162,698,000
                                               ===============

                           ASARCO LLC, et al.
               Consolidated Statement of Operations
                    Month Ended January 31, 2008

Sales                                             $194,833,000
Cost of products and services                      145,616,000
                                               ---------------
Gross profit                                        49,217,000

Operating expenses:
Selling and general & admin expenses                 3,912,000
Depreciation & amortization                          3,127,000
Provision accretion expense of asset
   retirement obligation                               384,000
                                               ---------------
Operating income                                    41,794,000

Interest expense                                        33,000
Interest income                                     (3,326,000)
Reorganization expenses                              7,716,000
Other miscellaneous (income) expenses               (5,278,000)
                                               ---------------
Income (loss) before taxes                          42,650,000
Income taxes                                        16,740,000
                                               ---------------
Net income (loss)                                  $25,910,000
                                               ===============

                           ASARCO LLC, et al.
             Consolidated Cash Receipts & Disbursements
                   Month Ended January 31, 2008

Receipts                                          $160,362,000
Disbursements:
Inventory material                                  74,117,000
Operating disbursements                             75,503,000
Capital expenditures                                 4,533,000
                                               ---------------
Total disbursements                                154,153,000

Operating cash flow                                  6,209,000
Reorganization disbursements                         5,554,000
                                               ---------------
Net cash flow                                          656,000
Net payments to secured Lenders                              0
                                               ---------------
Net change in cash                                     656,000
Beginning cash balance                             932,683,000
                                               ---------------
Ending cash balances                              $933,338,000
                                               ===============

                        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.  (ASARCO Bankruptcy News, Issue No. 67; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000).


CATHOLIC CHURCH: Davenport Files January 2008 Operating Report
--------------------------------------------------------------

                  Diocese of Davenport in Iowa
                 Statement of Financial Position
                     As of January 31, 2008

ASSETS

Current Assets
   Cash and cash equivalents - unrestricted           $5,643,578
   Cash and cash equivalents - restricted              2,529,911
   Accounts receivable, net                               64,235
   Inventory                                                   -
   Prepaid expenses                                        2,649
   Professional retainers                                 55,652
                                                  --------------
Total Current Assets                                   8,296,024
                                                  --------------
Property and Equipment
   Real Property                                           3,000
   Machinery and equipment                                 6,000
   Furniture and fixtures                                  8,914
   Office equipment                                       59,500
   Leasehold improvements                                      -
   Vehicles                                               45,460
                                                  --------------
Total Property and Equipment                             122,874
                                                  --------------
Total Assets                                          $8,418,898
                                                  ==============

LIABILITIES AND NET ASSETS

Postpetition
   Current Liabilities:
      Salaries and wages                                       -
      Payroll taxes                                            -
      Real and personal property taxes                         -
      Income taxes                                             -
      Sales taxes                                              -
      Notes payable, short term                                -
      Accounts payable, trade                            $22,515
            Real property lease arrearage                      -
            Personal property lease arrearage                  -
      Accrued professional fees                                -
      Current portion of long-term debt                        -
      other:                                                   -
         Pass-through collections                        108,660
         Additional Accrued Vacations                      5,574
         Misc                                                300
                                                  --------------
   Total Current Liabilities                             137,050
                                                  --------------
   Long-Term Postpetition Debt, Net                            -
                                                  --------------
   Total Postpetition Liabilities                        137,050
                                                  --------------
   Prepetition
      Secured claims                                           -
      Priority unsecured claims                          160,888
      General unsecured claims                        13,605,000
                                                  --------------
   Total Prepetition Liabilities                      13,765,888
                                                  --------------
     Total Liabilities                                13,902,938
                                                  --------------
Equity (deficit):
   Retained earnings/(deficit) at filing               5,855,424
   Capital stock                                               -
   Additional paid-in capital                                  -
   Cumulative profit/loss since filing               (11,366,225)
   Post-petition contributions/distributions
      or draws                                                 -
   Market value adjustment                                26,762
                                                  --------------
   Total equity (deficit)                             (5,484,040)
                                                  --------------
Total liabilities & equity (deficit)                  $8,418,898
                                                  ==============


                  Diocese of Davenport in Iowa
                     Statement of Operations
              For the month ending January 31, 2008

Revenues
   Gross sales                                               $91
   Less: sales returns & allowances                            -
   Net sales                                                  91
   Less: cost of goods sold                                    -
   Gross profit                                               91
   Interest                                                3,721
   Other income:                                         359,418
      Charitable gifts                                   174,110
      Insurance receipts                                       -
      Investment income (loss)/fees                      (45,279)
                                                  --------------
   Total revenues                                        492,061
                                                  --------------
Expenses:
   Compensation to owner(s)/officer(s)                    12,209
   Salaries                                              106,442
   Commissions                                                 -
   Contract labor                                          5,356
   Rent/Lease:
      Personal property                                      100
      Real property                                            -
   Insurance                                              47,477
   Management fees                                             -
   Depreciation                                            2,105
   Taxes:
      Employer payroll taxes                               6,702
      Real property taxes                                      -
      Other taxes                                              -
   Other selling                                               -
   Other administrative                                   29,393
   Interest                                                    -
   Other expenses:
      Employee benefits                                   26,163
      Charity collection                                   2,791
      Medical assistance/Victim assistance                   389
      Utilities                                           12,398
      Transfer to unrestricted                                 -
      Professional fees                                        -
      Sabbatical                                               -
      Cemetery perpetual care                                  -
      Youth trip expenses                                      -
                                                  --------------
         Total expenses                                  251,525
                                                  --------------
   Reorganization items:
      Professional fees                                        -
      Estimate of claims payments                              -
      Interest earned on accumulated cash
         from resulting Chapter 11 case                   18,798
      Gain or (Loss) from sale of equipment                    -
      U.S. Trustee quarterly fees                         (5,000)
      Advertising/printing/mailing                             -
                                                  --------------
         Total reorganization items                       13,798
                                                  --------------
Net profit (loss) before federal &
   state taxes                                           254,333
Federal & state income taxes                                   -
                                                  --------------
Net profit (loss)                                       $254,333
                                                  ==============


                  Diocese of Davenport in Iowa
          Statement of Cash Receipts and Disbursements
              For the month ending January 31, 2008

Cash receipts
   Rent/Leases collected                                  $2,700
   Cash received from sales                                   91
   Interest received                                      22,519
   Borrowings increase in accounts payable                     -
   Funds from shareholders, partners,
      or other insiders (Sale of property)                     -
   Capital contributions                                       -
   Annual diocesan appeal/donations                      359,418
   Investment income/misc.                                     -
   Insurance receipts                                    174,110
   Tribunal/Immigration/Faith Formation fees/
      Investment gains/(losses)                          (47,979)
   Decrease in prepaids/accounts receivable               56,364
   Misc./Increase in accounts payable                     38,893
                                                  --------------
   Total Cash Receipts                                   606,116

Cash disbursements:
   Payments for inventory                                      -
   Selling                                                     -
   Administrative                                         42,170
   Capital expenditures                                        -
   Principal payments on debt                                  -
   Interest paid                                               -
   Rent/Lease:
      Personal Property                                      100
      Real Property                                            -
   Amount paid to owner(s)/officer(s)
      Salaries                                            12,209
      Draws                                                    -
      Commissions/Royalties                                    -
      Expense Reimbursements                                 370
      Other                                                    -
   Salaries/Commissions (less employee withholding        82,646
   Management fees                                             -
   Taxes
      Employee withholding                                23,796
      Employer payroll taxes                               6,702
      Real property taxes                                      -
      Other taxes                                              -
   Other cash outflows:
      Insurance                                           47,477
      Utilities                                           12,398
      Medical Assistance                                     389
      Employee benefits                                   26,163
      Misc                                                     -
                                                  --------------
   Total Cash Disbursements                              254,420
                                                  --------------
Net increase (decrease) in cash                          351,696

Cash balance, beginning of period                      1,766,712
                                                  --------------
Cash balance, end of period                           $2,118,408
                                                  ==============

                    About Diocese of Davenport

The Diocese of Davenport in Iowa filed for chapter 11 protection
(Bankr. S.D. Ia. Case No. 06-02229) on Oct. 10, 2006.  Richard A.
Davidson, Esq., at Lane & Waterman LLP, represents the Davenport
Diocese in its restructuring efforts.  Hamid R. Rafatjoo, Esq.,
and Gillian M. Brown, Esq., at Pachulski Stang Zhiel Young Jones &
Weintraub LLP represent the Official Committee of Unsecured
Creditors.  In its schedules of assets and liabilities, the
Davenport Diocese reported $4,492,809 in assets and $1,650,439 in
liabilities.  The Court will hear the adequacy of Davenport's
disclosure statement explaining its reorganization plan on
March 5, 2008.  (Catholic Church Bankruptcy News, Issue No. 115;
Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/
or 215/945-7000).


FORTUNOFF: Submits Schedules of Assets and Liabilities
------------------------------------------------------
Fortunoff Fine Jewelry and Silverware LLC submitted to the U.S.
Bankruptcy Court for the Southern District of New York its
schedules of assets and liabilities, disclosing:

A.     Real Property                                         $0

B.     Personal Property
B.2    Financial Accounts
          Bank of America - operating acct.             380,688
          Bank of America - payroll acct.               400,703

B.16   Accounts Receivable
          American Express                            1,306,047
          Alliance Data                               1,241,762
          Master Visa                                 1,175,414
          Co-Brand Visa                                 142,550
          Master Visa Paytech                            90,529
          Discover                                       79,234

B.22   Intellectual Property                       Undetermined

B.35   Other Personal Property
          Credit Memo
             Nautica Watches                              9,131
             Sh Harris                                    7,950
             Siman-Tov Bros. Import C                     4,443
             Sunstone, Inc.                               3,642
             Tasaki U.S.A., Inc.                          2,659
             Tecnigold                                   15,497
             Timex Corp                                   4,064
             Tommy Hilfiger                               8,665
             Toy Watch U.S.A.                             5,280
             Tri-Gem Industries                           1,600
             Visconti                                     1,230
             Gem Sensations, Inc.                         6,125
             Geneva Watch Co., Inc.                       5,020
             Golan - Goldex                              21,289
             Gold Couture Designer Je                     5,031
             Hong Kong Jade                              15,302
             Byworth                                     44,000
             Dehago                                      14,585
             Elini Designs, Corp.                        10,839
             Others                                      49,036

       TOTAL SCHEDULED ASSETS                        $5,052,315
       ========================================================

C.     Property Claimed as Exempt                          None

D.     Secured Claims
          Bank of America                           $90,000,000
          Trimaran                                   12,750,000
          M. Fortunoff of Westbury, Corp.             1,760,000
          M&T Credit Corp.                            1,100,000
          KG Source Debt Investors                      250,000

E.     Unsecured Priority Claims                              0

F.     Unsecured Nonpriority Claims
F.1    Trade payables, Insurance, & Utilities
             William Levine, Inc.                       569,229
             Waldman Diamonds Complet                   581,552
             The Plaza Group                            201,304
             Suresh                                     210,570
             Sunny Creations                            236,145
             Star Asia, Inc.                            529,769
             Somerset                                   480,542
             Seville Watch Corp.                        246,530
             Royal Claim, Inc.                          424,318
             Rama Manuf. Co. Inc.                       540,471
             Rado Watch Co.                             255,445
             Quality Color Design, Inc.                 254,222
             Podicko Diamonds                           221,786
             O.J.M.                                     236,992
             Nelson                                     246,515
             Movado Watch Corp.                         413,830
             Monte Carlo Designs                        321,230
             Michele Watches                            215,177
             Michael Werdiger                           347,479
             Martin Flyer, Inc.                         669,630
             M.C.R. Trading Co.                         570,892
             Lorenzo                                    295,049
             Lazare Kaplan                              339,748
             Kama                                       810,866
             J.R. Gold Designs, Ltd.                    231,146
             I.B. Goodman Co., Inc.                     280,091
             Heuer-Time & Elect Corp.                   535,410
             Goldmart                                   369,580
             Ebel USA, Inc.                             328,676
             Disons Gems, Inc.                          593,137
             Christopher Designs, Inc.                  312,353
             Breitling USA, Inc.                        340,203
             Baume & Mercier                            456,662
             Armin Meizlik Diamonds                     368,141
             Others                                  17,729,258

F.2    Litigation                                  Undetermined

F.3    Surety Bonds                                       3,000

       TOTAL SCHEDULED LIABILITIES                 $136,626,948
       ========================================================

A complete list of Fine Jewelry's creditors holding unsecured
nonpriority claims is available at
http://bankrupt.com/misc/UnsecuredCreditorsFortunoff.pdf

                        About Fortunoff

New York-based Fortunoff Fine Jewelry and Silverware LLC --
http://www.fortunoff.com/-- is a family owned business since
1922 founded by by Max and Clara Fortunoff.  Fortunoff offers
customers fine jewelry and watches, antique jewelry and silver,
everything for the table, fine gifts, home furnishings including
bedroom and bath, fireplace furnishings, housewares, and seasonal
shops including outdoor furniture shop in summer and enchanting
Christmas Store in the winter.  It opened some 20 satellite
stores in the New Jersey, Long Island, Connecticut and
Pennsylvania markets featuring outdoor furniture and grills
during the Spring/Summer season and indoor furniture (and in some
locations Christmas trees and decor) in the Fall/Winter season.

Fortunoff and two affiliates, M. Fortunoff of Westbury LLC and
Source Financing Corp., filed for chapter 11 petition on Feb. 4,
2008 (Bankr. S.D.N.Y. Case Nos. 08-10353 through 08-10355) in
order to effectuate a sale to NRDC Equity Partners LLC, --
http://www.nrdcequity.com/-- a private equity firm that owns
of Lord & Taylor from Federated Department Stores.

Due to the U.S. Trustee's objection, Fortunoff is backing out of
its request to employ Skadden Arps Meagher & Flom LLC, as
bankruptcy counsel.  Fortunoff is hiring Togut Segal & Segal LLP,
as their general bankruptcy counsel, but Skadden Arps will
continue to serve the Debtors as special counsel in connection
with the sale the Debtors' assets.  Logan & Company, Inc., serves
as the Debtors' claims, noticing, and balloting agent.  FTI
Consulting Inc. are the Debtors' proposed crisis manager.

An Official Committee of Unsecured Creditors has been appointed in
this case.

When the Debtors filed for bankruptcy, they listed assets and
debts between $100 million to $500 million.  The Debtors'
exclusive period to file a plan of reorganization ends on June 3,
2008.  (Fortunoff Bankruptcy News, Issue No. 6; Bankruptcy
Creditors' Service, Inc., http://bankrupt.com/newsstand/or
215/945-7000)


FORTUNOFF: Source Financing Files Schedules of Assets and Debts
---------------------------------------------------------------
Source Financing Corp., a debtor-affiliate of Fortunoff Fine
Jewelry and Silverware LLC, submitted to the U.S. Bankruptcy Court
for the Southern District of New York its schedules of assets and
liabilities, disclosing:

A.     Real Property                                         $0

B.     Personal Property

B.1    Cash on hand
          70 Charles Linbergh Store                         100
          1300 Old Country Store                          2,000
          70 Charles Linbergh Store                       1,630
          3321 Brunswick Store                            1,000
          3 West Store                                   25,306
          150 Route Store                                 6,782
          Paramus Park Mall                              47,015
          250 Wayne Towne Center                        128,970
          1300 Old Country Store                        293,787
          1 Maple Store                                  87,849
          Woddridge Town Center                          45,979
          750 Zeckendorf Store                            2,800

B.3    Security Deposits
          ADT Security Service 8365                       1,147
          ADT Security Service Inc.                       2,663
          AIG                                             4,843
          Allen Systems Group, Inc.                       1,317
          Attunity                                          750
          Careerbuilder, LLC.                             5,625
          Careerbuilder, LLC.                             4,213
          Careerbuilder, LLC.                            12,640
          Dell Equipment Lease                           30,406
          El-Kam Equipment Realty Co.                   325,000
          Embaracedero Technologies Inc.                  5,464
          Federal Insurance Co.                         142,893
          FTI Consulting                                450,000
          Hudd Distribution Service                      95,331
          Imprest Dental Plan                            28,000
          Inland Mid Atlantic Management                 20,427
          Jordache                                       19,704
          Kronos                                          7,885
          Liebert Global Services                         2,103
          Liezell Associates                             12,000
          Locust Grove Plaza LLC                         15,000
          Logan & Company, Inc.                          25,000
          Marsh USA                                     134,750
          New Plan Excel Realty Trust                    25,000
          Now Solutions                                   6,667
          Numara Software, Inc.                           3,193
          Progressive Casualty Insurance                 10,000
          Rubenstein Public Relations                    25,000
          Skadden, Arps, Slate, Meagher & Flom LLP    1,203,117
          Surf Control, Inc.                              1,863
          T.M. Bier Associates, Inc.                        709
          T.M. Bier Associates, Inc.                        709
          Tanurb Marlton LP                              25,000
          The Ergonomic Group                            10,559
          US Postmaster                                   2,049
          US Postmaster                                   1,358
          US Postmaster                                 167,310
          US Postmaster                                   4,488
          US Postmaster                                   3,061
          US Postmaster                                   2,989
          WRD Melville LLC                               82,420

B.5    Collectibles                                Undetermined

B.9    Interests in Insurance Policies             Undetermined

B.16   Accounts Receivable                             $717,302

B.18   Other Liquidated Debts
          NYS Corporation Tax                             5,512
          State of New Jersey                           111,966

B.22   Intellectual Property
          All intellectual property
          information is listed on Schedules of
          Assets and Liabilities for Fortunoff
          Fine Jewelry and Silverware, LLC.

B.23   Licenses, franchises and
       other general intangibles                   Undetermined

B.28   Office equipment, furnishings and supplies
          Store Fixtures -- 57th St.                    242,744
          Demo/construction - Melville                  115,577
          Slat wall units & cubes                       282,939
           for Christmas mdse.
          Opening Balance                               417,822
          Opening Balance                               341,951
          Opening Balance                               356,308
          Locks for coat cables in 4W's               1,068,666
          Opening Balance                               669,188
          Opening Balance                               104,951
          Opening Balance                             2,433,071
          Slat wall units & cubes
            for Christmas mdse.                         187,617
          Opening Balance                               480,364
          Opening Balance                               284,674
          Opening Balance                            12,136,027
          Opening Balance                               276,019
          Others                                        751,783
B.29   Machinery
          Equipment                                   1,214,302
          Equipment- Opening Balance                  2,096,598
          Equipment - Opening Balance                   244,515
          Equipment - Opening Balance                   116,507
          Equipment - Opening Balance                   124,714
          Equipment -  Opening Balance                  221,899
          Equipment - Opening Balance                   436,401
          Equipment -  Opening Balance                  816,571
          Equipment - Opening Balance                   326,944
          Equipment -  Opening Balance                  247,826
          Leasehold Equipments                          894,045
          Leasehold Equipments                          505,405
          Leasehold Equipments           &nbs