T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, March 4, 2008, Vol. 12, No. 54 Headlines AEROMED SERVICES: Section 341(a) Meeting Slated for March 10 AEROMED SERVICES: June 9 Deadline Set for Proofs of Claim Filing ALASKA AIRLINES: Earns $135.4 Million in Year Ended December 31 ALION SCIENCE: Discusses 10-K Filing Delay in Conference Call ALION SCIENCE: 10-K Filing Delay Cues Moody's to Review B3 Rating AMERICAN HOME: Seeks Extension of Plan Filing Deadline ARMSTRONG WORLD: Completes Strategic Review Following Evaluation ARMSTRONG WORLD: S&P Changes Outlook to Stable; Holds 'BB' Rating ASARCO LLC: Wants to Extend PSA Contingency Date to July 6 ASCALADE COMM: To Apply for Protection from Creditors under CCAA ASSET BACKED: Fitch Cuts Ratings on $609.1 Million Certificates BACH HOP: Case Summary & 14 Largest Unsecured Creditors BARNHILL'S BUFFET: Completes Sale of Restaurants to Star Buffet BIO-RAD LABS: Earns $12.3MM For 2007 Fourth Quarter Ended Dec. 31 BLACKHAWK AUTOMOTIVE: Can Sell All Assets to Flex-N-Gate for $20MM BMO FINANCIAL: Talks on Restructuring Apex/Sitka Trusts Ongoing BOMBARDIER INC: S&P Keeps Positive Watch Posting of 'BB' Rating BROOKVILLE CDO: Moody's Junks Rating on $125 Mil. Notes From 'A3' CAREEL BAY: Poor Credit Quality Prompts Moody's Rating Downgrades CARRINGTON MORTGAGE: Fitch Lowers Ratings on $2.6BB Certificates CARRINGTON MORTGAGE: Fitch Chips Ratings on $894.2MM Certificates CATHOLIC CHURCH: Fairbank's Case Summary & 20 Largest Creditors CENTRAL ILLINOIS: Court OKs Bidding Procedure for Sale of Assets CHARTER COMMS: Dec. 31 Balance Sheet Upside Down by $7.8 Billion CHARTER COMMS: Fitch Puts 'CCC' ID Rating Under Negative Watch CHIQUITA BRANDS: Enters into Commitment Letter to Refinance Loan CHIQUITA BRANDS: Moody's Rates New Senior Bank Agreements at 'Ba3' CHRYSLER LLC: Will Appeal Bankruptcy Court's Tooling Decision CHRYSLER LLC: February 2008 Sales Down 14%, Fleet Sales Reduced COLLEZIONE EUROPA: Files Chapter 11 Protection in New Jersey COLLEZIONE EUROPA: Case Summary & 20 Largest Unsecured Creditors COLUMBIA SUSSEX: Defaults on $960 Mil. Loan, Chancery Court Says COOKSON SPC: 2007-1LAC And 2007-2LAC Notes Get S&P's Junk Ratings COPANO ENERGY: Earnings Ups 30% to $21.5 Mil. for 2007 Fourth Qtr. CREDIT-BASED: Fitch Cuts Rating on $1.5MM Certs. to B from BB CREDIT-BASED: Fitch Junks Ratings on 22 Certificate Classes CREDIT SUISSE: Fitch Downgrades Ratings on 39 Certificate Classes DB ATLANTA: Failure to File Reports Cues Court to Dismiss Case DEAN FOODS: Launches Public Offering of 18.7 Million Shares DEAN FOODS: S&P Ratings Unaffected by Sale of 18.7 Million Shares DECKER COLLEGE: Court OKs Settlement Providing Relief for Students DENBURY RESOURCES: Earns $106 Mil. in Quarter Ended December 31 DELPHI CORP: Wants Plan-Filing Period Further Extended to May 31 DELPHI CORP: Court Extends Effectiveness of PBGC Letters of Credit DFG/OLYMPUS II: Case Summary & Six Largest Unsecured Creditors DIASYS CORP: Common Stock Delisted from OTC Bulletin Board DRACO 2007: Nine Classes of Notes Obtain Moody's Rating Downgrades DYNEGY INC: Incurs $46 Mil. Net Loss for the 2007 Fourth Quarter EINSTEIN NOAH: Jan. 1 Balance Sheet Upside Down by $33.6 Million ENERGY PARTNERS: Incurs $73.4MM Net Loss For 2007 Fourth Quarter ENERGY PARTNERS: $100MM Pretax Charges Won't Affect S&P's B Rating ENTERCOM COMM: Posts $9 Mil. Net Loss in Quarter ended December 31 EQUIFIRST LOAN: Fitch Chips Ratings on $650.1 Million Certificates E*TRADE FINANCIAL: Appoints Donald Layton as CEO E*TRADE FINANCIAL: Reaches Pact Settling $4 Million MarketXT Spat FCDC COAL: Court Directs Chief Restructuring Officer Appointment FCDC COAL: Court OKs $12MM Financing, Sets March 14 for Final Nod FEDDERS CORP: Wants Exclusive Plan Filing Period Moved to April 14 FIRST HORIZON: Fitch Affirms Low-B Ratings on Nine Cert. Classes FORD MOTOR: Discloses Plans to Return to Profitability by 2009 FORD MOTOR: February 2008 Sales in Canada Increase 4.1% FORD MOTOR: Likely to Close Sale Deal with Tata Motors in 2nd Qtr. FORD MOTOR: February 2008 Sales Decreases 7% at 196,681 GENERAL MOTORS: February 2008 Sales Drop 13% Compared to Last Year GENERAL MOTORS: Appoints Frederick Henderson as President and COO GENESCO INC: Teams with Finish Line in Asking One-Day Trial Delay GLASSMASTER CO: Court Converts Case to Chapter 7 Liquidation GMAC RESIDENTIAL: Fitch Junks Ratings on 18 Certificate Classes GOLDMAN SACHS: Fitch Chips Ratings on 11 Certificate Classes GRAY TELEVISION: Moody's Chips Rating to 'B1' on Weak Performance HAMLIN PROPERTIES: Section 341(a) Meeting Slated for March 6 HARMONY HOLDINGS: Section 341(a) Meeting Slated for March 7 HARMONY HOLDINGS: June 5 Deadline Set for Proofs of Claim Filing HEALTH MANAGEMENT: Earns $12.5 Mil. in Quarter Ended December 31 HERBST GAMING: Hires Goldman Sachs to Assess Strategic Options HERBST GAMING: S&P Junks Rating on Retention of Financial Advisor HVHC INC: S&P Changes Outlook to Negative; Retains 'BB' Ratings ICI CONSTRUCTION: Files for Bankruptcy, Real Owner Under Dispute IMAC CDO: Five Classes of Notes Acquire Moody's Junk Ratings INTERPUBLIC GROUP: S&P Lifts Rating to B+; S&P Outlook is Positive INTERSTATE HOTELS: Posts $6.7 Mil. Earnings in 2007 Fourth Quarter JMY LLC: Case Summary & 10 Largest Unsecured Creditors LACERTA ABS: Eroding Credit Quality Prompts Moody's Rating Cuts LB-UBS COMMERCIAL: Fitch Holds 'BB-' Rating on $9.3MM Certificates LEVITT AND SONS: Receiver Wants to Inspect Executory Contracts LEVITT AND SONS: Wants to Employ Hilco as Real Estate Consultant LEVITZ FURNITURE: Panel, et al., Support Denying Harbinger's Plea LEVITZ FURNITURE: Harbinger and Prentice Counterattacks Objections LIBERTY MEDIA: Earns $2.11 Billion in Year Ended December 31 LIMITED BRANDS: Earns $388.6 Mil. for Fourth Quarter Ended Feb. 2 LYNNKOHN LLC: Wants to Defer Payment of Judgment Owed to EWI Inc. MANCHESTER INC: Gets Court OK to Hire Winston & Strawn as Counsel MARKETXT HOLDINGS: E*TRADE Dispute Settled for $4,000,000 MASTEC INC: Posts $7.3 Mil. Net Loss for Fiscal 2007 Ended Dec. 31 MCCLATCHY CO: Moody's Puts 'Ba2' Ratings on Review for Likely Cuts METALDYNE CORP: S&P Cuts Rating to B- on Expected Severe Pressures MORGAN STANLEY: Fitch Rates $4.626MM Class O Certificates B- MUGELLO ABS: Moody's Downgrades Ratings on Eroding Credit Quality NATIONAL ENERGY: Board's Dissolution Plan to be Decided March 14 NATIONAL RETAIL: S&P Maintains 'BB+' Preferred Stock Rating NCO GROUP: Completes $325 Million Buyout of Outsourcing Solutions NEW CENTURY: Files Amendments to Plan Disclosure Statement NEW CENTURY: Fitch Downgrades Ratings on $838.2 Million Certs. NORBORD INC: Moody's Cuts Ba2 Rating on Weak Financial Performance NUVEEN INVESTMENTS: Moody's Confirms 'B1' Corporate Family Rating OCEAN SPRAY: Moody's Raises Rating on Preferred Stock to 'Ba2' OCTONION I: Moody's Junks Rating on $150 Million Notes OLD MILTON: Case Summary & 12 Largest Unsecured Creditors ONEIDA LTD: Court Says PBGC Claims Were Discharged Under Plan PFP HOLDINGS: Wants to Hire Bryan Cave as Bankruptcy Counsel PFP Holdings: Section 341(a) Meeting Scheduled for March 14 PLASTECH ENGINEERED: Chrysler to Appeal Tooling Decision PLASTECH ENGINEERED: Wants Financing Period Stretched to March 14 PLASTECH ENGINEERED: Section 341(a) Meeting Scheduled for March 14 PLASTECH ENGINEERED: Pressed by JCI to Decide on Contracts PLASTECH ENGINEERED: Wants to File Schedules By May 19 PRB ENERGY: Working with Senior Lenders to Settle Default Disputes PRC LLC: Obtains Final Court Okay to Use Lenders' Cash Collateral PRC LLC: Gets Final Court Nod on $30 Million DIP Financing PRC LLC: Wants to Reject Four Austin & Plantation Pacts PRESTON CDO: Poor Credit Quality Prompts Moody's Rating Downgrades QUICK SERVICE FOODS: Case Summary & 20 Largest Unsecured Creditors REDDY ICE: Reports $6.6 Million Net Loss for 2007 Fourth Quarter RESIDENTIAL ASSET: Fitch Junks Ratings on Four Certificate Classes REUNION INDUSTRIES: Selling Pressure Vessel Biz for $64 Mil. Cash ROUGE INDUSTRIES: Can File Chapter 11 Plan Until March 18 SEA CONTAINERS: Wants to Employ Navigant Consulting as Consultants SECURITY ASSURANCE: Hires Rothschild to Review Strategic Options SHARPER IMAGE: Ramius Capital Discloses 12.2% Equity Stake SI INT'L: Moody's Withdraws Ratings on Amended Credit Facility SIRVA INC: Schedules Filing Deadline Moved to March 21 SIRVA INC: Answers 360networks Group's Bid to Vacate Claims Order SIRVA INC: Allowed to Employ TS&T as Conflicts Counsel SIRVA INC: Allowed to Employ A&M as Restructuring Consultant SOLUTIA INC: S&P Lifts Rating to 'B+' From 'D' on Bankruptcy Exit SOUTHWEST FOOD: Allowed to Avail $1.5M Facility from American Bank SPEEDEMISSIONS INC: Restated 3rd Qtr. Result Shows $16,817 Income SPRINT NEXTEL: May File for Bankruptcy, Jefferies & Co. Says SR TELECOM: Quebec Court Extends CCAA Stay Proceedings to May 2 STUDIO ARENA: Intends to File for Chapter 11 and Cancel Two Shows SUGAR HILL: Case Summary & Five Largest Unsecured Creditors SUMMIT GLOBAL: Court Turns Down Hecny Trans' Discovery Request SUNCREST LLC: Receives Notice of Default from Zions Bank TABERNA PREFERRED: Fitch Puts 'BB'-Rated Note Under Neg. Watch TEMBEC INC: Moody's Probability of Default Rating Tumbles to 'D' THORNBURG MORTGAGE: Faces Margin Calls; Receives Default Notice THORNBURG MORTGAGE: S&P Chips Counterparty Rating to 'B-' From 'B' TILLIM LLC: Section 341(a) Meeting Scheduled for March 10 TOWERS OF CHANNELSIDE: Files Schedules of Assets and Liabilities TROPICANA ENTERTAINMENT: Parent Company Declared in Default UNO RESTAURANT: Moody's Slashes Corporate Family Rating to 'Caa2' VAN DYCK: Court Dismisses Bankruptcy Case Over Lack of Funds WESTAR ENERGY: Reports $13.7 Mil. Earnings for 2007 Fourth Quarter WEST PLAINS IDA: S&P Cuts Rating on $27.010MM Bonds to B+ WESTERN SPRINGS: Moody's Cuts Rating on $125M Notes From A1 to Ca WESTWAYS FUNDING: Fitch Slashes Ratings of $31.5 Mil. Notes to BB WHITING PETROLEUM: Posts $45.7MM Earnings for 2007 Fourth Quarter WILLIAMS COMPANIES: Earns $225 Mil. in Quarter Ended December 31 YOUNG BROADCASTING: To Cut 11% Work Force to Save $15MM Annually * Fitch Says Equipment Lease ABS Delinquencies Climbed in January * Moody's Expects Continued Low Prepayment Rates on Subprime Loans * S&P Takes Various Rating Actions on Synthetic CDO Transactions * S&P Downgrades Ratings on Nine RMBS on Declining Credit Support * S&P Puts Ratings on 1,887 RMBS Classes on CreditWatch Negative * Spreads on Asset-Backed Securities Rises to Record High * Deloitte's Sheila T. Smith Wins Executive of the Year Award * Vera O. Kachnykewych Leads Gersten Savage's Banking and Finance * Large Companies with Insolvent Balance Sheets ********* AEROMED SERVICES: Section 341(a) Meeting Slated for March 10 ------------------------------------------------------------ The U.S. Trustee for Region 21 will convene a meeting of creditors in Aeromed Services Corp.'s Chapter 11 case, on March 10, 2008, at 9:00 a.m., at Ochoa Building, 500 Tanca St., 1st Floor in San Juan, Puerto Rico. This is the first meeting of creditors required under Section 341(a) of the Bankruptcy Code in the Debtors' case. The Section 341(a) Meeting has been scheduled within the time required by Rule 2003 of the Federal Rules of the Bankruptcy Procedure. All creditors are invited, but not required, to attend. The Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible officer of the Debtors under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. About Aeromed Services Corp. Headquartered in San Juan, Puerto Rico -- Aeromed Services Corp. -- http://www.aeromedems.com/-- offers ambulance services. The company filed for protection on Jan. 31, 2008 (Bankr. D. P.R. Case No. 08-00518). Alexis Fuentes Hernandez, Esq. represents the Debtor in its restructuring efforts. When the company filed for protection against it creditors, it listed US$1 million to US$100 million in assets and US$1 million to US$100 million in debts. AEROMED SERVICES: June 9 Deadline Set for Proofs of Claim Filing ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Puerto Rio set June 9, 2008, as the final date for creditors of Aeromed Services Corp. to file proofs of claim. The Court also established Aug. 4, 2008, for governmental units to file proofs of claim. About Aeromed Services Corp. Headquartered in San Juan, Puerto Rico -- Aeromed Services Corp. -- http://www.aeromedems.com/-- offers ambulance services. The company filed for protection on Jan. 31, 2008 (Bankr. D. P.R. Case No. 08-00518). Alexis Fuentes Hernandez, Esq. represents the Debtor in its restructuring efforts. When the company filed for protection against it creditors, it listed US$1 million to US$100 million in assets and US$1 million to US$100 million in debts. ALASKA AIRLINES: Earns $135.4 Million in Year Ended December 31 --------------------------------------------------------------- Alaska Airlines Inc. reported net income of $135.4 million for the year ended Dec. 31, 2007, compared with a net loss of $56.1 million for the year ended Dec. 31, 2006. The 2006 results included $189.5 million of fleet transition costs related to the company's MD-80 fleet, and a $24.8 million restructuring charge associated with the voluntary severance package offered to certain of the company's employees represented by the International Association of Machinists and to the company's flight attendants as part of new four-year collective bargaining agreements. Both periods include adjustments to reflect the timing of gain or loss recognition resulting from mark-to-market fuel hedge accounting. The company recorded a $43.3 million gain in 2007 compared to a $78.4 million loss in 2006. The year's most important trend was the dramatic increase in raw and economic fuel costs and the related increase in passenger revenue as the company attempted to pass along the increased fuel costs. Total operating revenues increased $377.4 million, or 14.0%, to $3.07 billion in 2007, as compared to total operating revenues of $2.69 billion in 2006. The new Capacity Purchase Agreement with Horizon made up $265.0 million of the increase, with mainline revenues contributing $112.4 million of the increase. Under the CPA, Alaska pays Horizon a contractual amount for the purchased capacity in the incentive markets regardless of the revenue collected on those flights. The amount paid to Horizon is generally based on Horizon's operating costs plus a margin. Alaska bears the inventory and revenue risk in those markets. Accordingly, Alaska records the related passenger revenue. For the year, total operating expenses increased $66.4 million to $2.86 billion compared to $2.79 billion in 2006 as a result of new purchased capacity costs recorded under the CPA with Horizon, offset by a decline in mainline operating costs. Net nonoperating income was $1.2 million in 2007 compared to $4.0 million in 2006. Income tax expense for 2007 was $80.6 million compared to a tax benefit of $36.1 million in 2006. Line of Credit Modification In April 2007, the company announced a Second Amendment of the $160.0 million variable-rate credit facility, dated March 25, 2005, with a syndicate of financial institutions. The terms of the Second Amendment provide that any borrowings will be secured by either aircraft or cash collateral. The Second Amendment (i) increased the size of the facility to $185.0 million; (ii) improved the collateral advance rates for certain aircraft; (iii) extended the agreement by two years with a maturity date of March 31, 2010; and (iv) repriced the credit facility to reflect current market rates. The company currently has no immediate plans to borrow using this credit facility. In July 2007, the company executed a Third Amendment to the credit facility, which amended a covenant restriction to allow borrowings between the company and its affiliates of up to $500.0 million, versus $300.0 million previously. Balance Sheet At Dec. 31, 2007, the company's consolidated balance sheet showed $4.22 billion in total assets, $3.35 billion in total liabilities, and $875.3 million in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the year ended Dec. 31, 2007, are available for free at http://researcharchives.com/t/s?28a7 About Alaska Airlines Headquartered in Seattle, Washington, Alaska Airlines Inc. -- http://alaskaair.com/-- is a wholly owned subsidiary of Alaska Air Group Inc. (NYSE: ALK). Air Group is also the parent company of Horizon Air Industries Inc. and Alaska Air Group Leasing. Alaska Airlines and Horizon Air together serve 92 cities through an expansive network in Alaska, the Lower 48, Hawaii, Canada and Mexico. * * * On Sept. 4, 2003, Standard & Poors' assigned its BB- corporate credit rating on Alaska Airlines Inc. Ratings still hold to date. ALION SCIENCE: Discusses 10-K Filing Delay in Conference Call ------------------------------------------------------------- Alion Science and Technology Corporation held an Operations Update conference call on Feb. 26, 2008 discussing, among others, the company's delay in filing its form 10-K with Securities and Exchange Commision. Mike Alber, the company's acting chief financial officer, joined by Stacy Mendler, Alion's chief operating officer and Jack Hughes, the company's outgoing chief financial officer, released these statements regarding this issue: "First, as many of you will recall from the last quarterly conference call, there was an error in the cash flow statement contained in the 10-K that was detected after the 10-K was filed and opined to by our auditing firm, Deloitte, last December," Mike Alber narrated. "All of the numbers were included in the cash flow statement." "However, one of the items was listed on the wrong line," Mr. Alber continued. "A total of about $23 million relating to the repurchase of ESOPshares was included on the accrued liabilities line instead of on the purchase of shares of common stock from the ESOPtrust line." "We are looking for the appropriate vehicle to make this correction," Mr. Alber stated. "When corrected, it will reduce the amount of cash actually used to fund operations from about 28 million to about 5 million." "It will also reduce the amount of cash provided by financing activities from 62 million to about 39 million," Mr. Alber went on to say. "Second, during the review of the correction to the cash flow statement, another separate item was raised by our outside audit firm, related to the presentation of the ESOPequity on the balance sheet." "Since the founding of Alion, we have always listed the ESOPequity as permanent, rather than temporary equity, with the inflows and outflows reflected in additional paid in capital," Mr. Alber explained. "Also, noting that in the SEC filing, that employees who have terminated their employment with Alion, may ask for distributions from their ESOP holdings." "Since the ESOPstock may be determined to have a temporary aspect to it, it may be more appropriate to classify it as redeemable common stock at the bottom of the balance sheet," Mr. Alber elaborated. "If so, we would show it at the bottom of the balance sheet in lieu of the current equities section as redeemable common stock with a value calculated by multiplying the number of outstanding shares, by the share price value determined by our outside valuator." "We would then gross up the accumulated deficit resulting in no change to the bottom line of the balance sheet," Mr. Alber relayed. "We expect to have both of these items fully resolved in the next two weeks." "If it does result in a change to the balance sheet, to the 10-K that is currently on file, we will also take the opportunity to correct the cash flow statement as well," Mr. Alber said. "These changes have no effects on the result of operations or net assets." "We will then immediately file our 10-Q," Mr. Alber concluded. About Alion Science Headquartered in Mclean, Virginia, Alion Science and Technology -- http://www.alionscience.com-- is a development and research company that provides consulting and technology services primarily to federal agencies. The majority of its revenues come from contracts with the US Department of Defense, especially the Navy. Its areas of specialty include marine and naval architecture and engineering, wargaming, lab support and chemical decontamination, wireless operations, military transformation, wireless communications engineering, and more. Alion operates from offices and facilities throughout the US, generally near government military bases and other installations. ALION SCIENCE: 10-K Filing Delay Cues Moody's to Review B3 Rating ----------------------------------------------------------------- Moody's Investors Service placed Alion Science and Technology Corporation's B3 Corporate Family Rating under review for possible downgrade as well as ratings for the company's secured (Ba3) and unsecured (Caa1) obligations. At the same time the rating agency lowered the company's Speculative Grade Liquidity rating to SGL-4 from SGL-3. The action follows Alion's disclosure that it was unable to timely file its quarterly report with the SEC for the period ended Dec. 31, 2007 which relates to a potential need to restate certain entries to its 10-K filing for the fiscal year ended Sept. 30, 2007. Those entries involve the accounting treatment of Alion's outstanding common stock and the total value of ESOP shares listed in the cash flow statement as having been repurchased by the company. While the company anticipates that it will be able to file these documents in the near future, the indenture for its unsecured notes includes provisions for filing of financial statements with the SEC, which, subject to specified notice and cure provisions, could also lead to technical default. Moody's understands that Alion is fully drawn under its existing $50 million revolving credit facility. Moody's also understands that the company had drawn down $26.5 million under the revolving credit facility at the end of December. Its September 30 10-K filing included in current liabilities $12.1 million of interest payable, $2.4 million of current maturities of long-term debt and $4.8 million of payments related to acquisition obligations. The review will consider the impact of the filing delay on the company's liquidity profile, and the status of any existing or pending defaults under the indenture for the company's senior unsecured notes. Ratings placed under review for possible downgrade -- Corporate Family Rating, B3 -- Probability of Default, B3 -- Senior Secured bank credit facilities, Ba3 (LGD-2, 16%) -- Senior unsecured notes, Caa1 (LGD-4, 68%) The last rating action was on July 26, 2007 at which time the Corporate Family Rating was lowered to B3 from B2 and a stable outlook was assigned. Alion Science and Technology Corporation, located in McLean, Virginia, is an employee--owned company specializing in research, development and engineering services related to national security, homeland security, energy and environmental analysis. The company specializes in communications, wireless technology, netcentric warfare, modeling, simulation, chemical and biological warfare, program management, naval architecture and engineering. Revenues in fiscal 2007 were approximately $738 million. AMERICAN HOME: Seeks Extension of Plan Filing Deadline ------------------------------------------------------ American Home Mortgage Investment Corp. and its debtor-affiliates seek the U.S. Bankruptcy Court for the District of Delaware's permission to extend their exclusive periods to file a plan of reorganization through June 2, 2008; and their exclusive period to solicit and obtain acceptances for the plan through July 31, 2008. The Debtors also request that the extensions be without prejudice to their rights to request further extensions or to seek other appropriate relief. James L. Patton, Jr., Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, relates the the the extensions sought may not provide sufficient time for the Debtors to complete the various sales and other tasks that must be completed before a Plan can be filed and acceptances of the Plan can be solicited. He notes that lots of things must be done in the bankruptcy cases before any party will be in a position to file a Plan and accompanying disclosure statement. However, in consultation with the Official Committee of Unsecured Creditors, the Debtors have determined to seek only 90-day extensions. The Debtors assure the Court that the Creditors Committee supports the extensions of exclusive periods they requested. Mr. Patton discloses that the Debtors have begun, but not yet completed, negotiations with the Creditors Committee regarding the terms of a consensual Plan or Plans based on adequate information. As with other large and complex cases, Mr. Patton insists that the current Exclusive Periods in the bankruptcy cases did not provide the Debtors with an adequate opportunity to develop and negotiate a Plan. He notes that the contested nature of nearly every facet of the cases has prevented the Debtors and their professionals from devoting significant attention to the preparation and negotiation of a Plan. In the months following the Petition Date, the Debtors have had to work with, or vigorously litigate with, the numerous large financial entities and other parties-in-interest with whom the Debtors did business, to obtain approval of the sale of the mortgage loan servicing business, Mr. Patton says. He adds that the Debtors also received various notices of purported defaults from parties to the Debtors' master servicing agreements. Accordingly, the Debtors did not, and could not reasonably have been expected to, formulate and negotiate a meaningful Plan. Mr. Patton also tells the Court that, in addition to the Debtors' continuing efforts, they have accomplished these things since the last extension request: -- The Debtors have spent time working with AH Mortgage Acquisition Co., Inc., to facilitate the effective transition of the Servicing Business; -- The Debtors have been focused on maximizing the value of, and minimizing the administrative burdens related to, the Debtors' other major assets, like, among other things, marketing and selling loans and analyzing an efficient and appropriate disposition of the 1,500,000 mortgage loan files held by the Debtors through a third party vendor; -- The Debtors have also focused their time and resources towards maximizing the value of the bankruptcy estates through the disposition of their major assets, including: * authorization to create non-debtor business entities for the transition of the Servicing Business to AHM Acquisition; * approval to consummate a sale with Indymac Bank F.S.B.; * approval of procedures to return mortgage loan files to owners or master servicers of the mortgage loans; * authorization to compromise certain loans to obtain a greater value for the estates; and * approval of procedures to maximize the sale value for certain non-performing loans; and -- The Debtors have expended substantial time and resources addressing the numerous pending adversary proceedings and related discovery matters. Mr. Patton argues that there are a variety of other tasks that lie ahead of the Debtors. He notes that the Debtors still have numerous assets that may be marketed and sold, including the (i) Debtors' federally chartered thrift and bank, which will need to be sold in a manner consistent with strict regulatory guidelines, (ii) certain whole loans still owned by the Debtors, and (iii) certain other real estate holdings, like the Debtors' corporate headquarters in Melville, New York. The resolution of asset sales and the review and analysis of claims will be determinative of the value available to the Debtors' creditors, and must be considered in the formulation of any Chapter 11 plan, Mr. Patton further points out. Judge Sontchi will convene a hearing on March 11, 2008, at 11:00 a.m., to consider the Debtors' request. Pursuant to Del.Bankr.LR 9006-2, the Debtors' Exclusive Periods is automatically extended until the conclusion of that hearing. Based in Melville, New York, American Home Mortgage Investment Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage real estate investment trust engaged in the business of investing in mortgage-backed securities and mortgage loans resulting from the securitization of residential mortgage loans originated and serviced by its subsidiaries. American Home Mortgage and seven affiliates filed for chapter 11 protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047 through 07-11054). James L. Patton, Jr., Esq., Joel A. Waite, Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt & Taylor LLP, represent the Debtors. Epiq Bankruptcy Solutions LLC acts as the Debtors' claims and noticing agent. The Official Committee of Unsecured Creditors selected Hahn & Hessen LLP as its counsel. As of March 31, 2007, American Home Mortgage's balance sheet showed total assets of $20,553,935,000, total liabilities of $19,330,191,000. The Debtors' exclusive period to file a plan expires on March 3, 2008. (American Home Bankruptcy News, Issue No. 29, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstandor 215/945-7000) ARMSTRONG WORLD: Completes Strategic Review Following Evaluation ---------------------------------------------------------------- Armstrong World Industries Inc. completed its strategic review, disclosed in February 2007, after extensive evaluation of alternatives, including a possible sale of Armstrong World's individual businesses and the entire company. Based on market conditions, including continued deterioration in the U.S. residential housing market and dramatic tightening of the credit markets, the board of directors concluded that it is in the best interest of Armstrong and its shareholders to continue to execute the company's strategic operating plan under its current structure as a publicly traded company. The company's projected financial position would allow the return of $500 million of capital to shareholders in 2008, and its credit agreements have been amended to permit this. Seasonal cash usage is such that the board of directors has declared a special cash dividend of $4.50 per common share, payable on March 31, 2008, to shareholders of record on March 11, 2008. This special cash dividend represents an aggregate payment of approximately $260 million, leaving $240 million available to be returned to shareholders later in the year if the business performs as expected. The board of directors based its decision to declare a special dividend on the substantial amount of cash generated in 2007, and on expectations that future cash generation will more than meet the company's needs. "Armstrong's board of directors thoroughly explored a comprehensive range of alternatives, weighing the interests of our shareholders, customers and employees," Michael D. Lockhart, Armstrong chairman and chief executive officer, said. "We believe that Armstrong can continue to create shareholder value by outperforming our markets with innovative products and services that deliver value and performance." Armstrong also stated that the Armstrong World Industries Asbestos Personal Injury Trust has informed the company's board of directors that it "supports the board's decision to conclude the strategic review and pay a special dividend." The trust further notified Armstrong that it "currently expects to have sufficient liquidity to pay claims against the trust for the foreseeable future and has no present plans to dispose of company common stock." About Armstrong World Headquartered in Lancaster, Pennsylvania, Armstrong World Industries, Inc. (NYSE:AWI) -- http://www.armstrong.com/-- , designs, manufactures and sells flooring products and ceiling systems around the world. It also designs, manufactures and sells kitchen and bathroom cabinets. Its business segments include resilient flooring, wood flooring, building products and cabinets. On Dec. 6, 2000, it filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court. On Aug. 18, 2006, it emerged from Chapter 11. On April 3, 2006, Armstrong World acquired HomerWood Inc. On May 1, 2006 it acquired Capella Engineered Wood LLC, and its parent company, Capella Inc. On March 27, 2007, it entered into an agreement to sell the principal operating companies in its European textile and sports flooring business segment to Tapijtfabriek H. Desseaux N.V. and its subsidiaries. These businesses were classified as discontinued at Oct. 2, 2006. ARMSTRONG WORLD: S&P Changes Outlook to Stable; Holds 'BB' Rating ----------------------------------------------------------------- Standard & Poor's Ratings Service revised its outlook on Armstrong World Industries Inc. to stable from developing. At the same time, S&P affirmed the 'BB' corporate credit and 'BBB-' senior secured ratings on the Lancaster, Pennsylavania-based company. "The outlook change reflects Armstrong's announcement that it has completed its strategic review process and plans to return $500 million to shareholders during 2008," said Standard & Poor's credit analyst Thomas Nadramia. A $260 million special cash dividend will be paid on March 31, 2008, leaving $240 million available to be returned to shareholders later in the year if the company performs as expected. "The affirmation of the corporate rating considers the company's sizable liquidity to fund these payments, including over $500 million of cash balances at year-end 2007. Therefore, the impact on existing credit metrics is expected to be minimal," Mr. Nadramia said. He added, "Despite the ongoing challenging residential construction market, Armstrong's good cash flow characteristics and position in the ceilings segment should enable it to maintain a combination of adequate liquidity and credit measures consistent with the current rating. "We could revise the outlook to negative if volumes weaken more than expected or if economic conditions materially hurt profitability, causing credit measures to deteriorate significantly from current levels. We are less likely to revise the outlook to positive in the near term given the challenging operating environment. However, should Armstrong continue to post improvements to its operating margins and maintain its strong credit metrics through the current downturn, we could consider an outlook revision to positive." Armstrong produces ceiling systems, wood and vinyl flooring, and cabinets, with 40 manufacturing plants worldwide. ASARCO LLC: Wants to Extend PSA Contingency Date to July 6 ---------------------------------------------------------- ASARCO LLC and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of Texas to extend, until July 6, 2008, the period wherein Globeville I LLC, a real estate purchaser, can prepare and conduct discovery of ASARCO's title to the properties for sale. ASARCO LLC and Globeville I entered into a purchase and sale agreement pursuant to which Globeville will buy certain of ASARCO's real property located in Denver and Adam Counties, Colorado, and assume the environmental liabilities attached to those properties. The PSA gives Globeville a period of time -- the Contingency Date -- to conduct due diligence regarding ASARCO's title to the properties and the properties' environmental condition. The Contingency Date expires on April 6, 2008. Globeville has completed extensive due diligence work, including environmental investigations and remediation pilot test evaluations, regulatory negotiations, and assembling components of a complex public financing package needed to make the project financially feasible, Tony M. Davis, Esq., at Baker Botts, L.L.P, in Houston, Texas, tells the Court. Based on the due diligence work Globeville has completed, Mr. Davis says Globeville would like to move forward with the proposed sale but required further extension of the Contingency Date until July 6, 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. ASCALADE COMM: To Apply for Protection from Creditors under CCAA ---------------------------------------------------------------- Ascalade Communications Inc. intends to seek protection from creditors under the Companies' Creditors Arrangement Act with the British Columbia Supreme Court. Ascalade's board of directors has determined that seeking creditor protection is in the interests of the company, its creditors, shareholders, employees, customers and other stakeholders. The company relates that these actions are necessary because of the company's inability to fund operations to meet customer demand. This is as a result of significant operational challenges due to difficulty hiring and retaining workers, continued labor and material cost increases, sustained competitive price pressures and foreign exchange variations impacting the business. "After the results of our operational and strategic review, our board of directors has concluded that seeking CCAA protection is in the best interest of the company and its stakeholders," said John Kim, Ascalade's lead director. "In addition, we are exploring the sale in whole or in part of Ascalade's assets as a key step in executing our stakeholder value strategy." "We anticipate working with our advisors and interested parties to execute this strategy successfully" he added. "In conjunction with the application for creditor protection the company disclosed these updates: -- The resignation from the board of directors of Brian Barry and Mr. Frankie Li. The resignations took effect on Feb. 29, 2008. -- The formation of a special committee by the board of directors for the purpose of exploring restructuring alternatives to maximize creditor and shareholder value, including transactions involving the sale of all or part of the assets of the company. -- The retention of Deloitte & Touche Inc. as asset recovery and restructuring advisors and to support management in ensuring creditor and shareholder value is maximized. -- The formation of an executive project team to manage the restructuring process. Under the leadership of Greg Allen, these executives have been retained to work on the restructuring project - Greg Allen, Troy Bullock, Eric Ho and Fred Li. -- Ascalade Communications Limited, the company's Hong Kong subsidiary, will be preparing to put forward a Scheme of Arrangement under the Hong Kong laws for the consideration by its creditors. -- The company plans to reduce the number of employees in its Canada, UK and Hong Kong offices over the next three month period. "This filing is a result of the completion of our operational and strategic review and difficulties in funding operations due to continued significant operational and business challenges," said Mr. Allen, Ascalade's president. "The company believes it has valuable assets located throughout the world and we believe that seeking CCAA protection will allow the company time to restructure its assets and operations and find alternatives that are in the best interest of the company's stakeholders," Mr. Allen added. The intent of the CCAA filing is to enable Ascalade to continue its day to day operations for as long as possible or until its CCAA status changes. The implications for Ascalade's shareholders will not be able to be determined until the end of the restructuring process and will depend on the terms of the restructuring plan approved by the affected stakeholders. The company does not intend to file, on a timely basis, its annual financial statements and related regulatory filings. A scheme of arrangement is an arrangement entered into between a company and its creditors or any class of its creditors under Section 166 of the Companies Ordinance of Hong Kong. It becomes legally binding on all creditors, including those voting against the scheme and those not voting, if the requisite majority, representing more than 50% in number and also not less than 75% in value of the claims of creditors who - either in person or by proxy - attend a meeting of creditors convened with the leave of the Court, vote in favor of the scheme and the Court then approves it. A scheme becomes effective and legally binding when the order of the Court sanctioning it is filed with the Registrar of Companies for registration. About Ascalade Communications Inc. Based in Richmond, British Columbia, Ascalade Communications Inc. (TSE:ACG) -- http://www.ascalade.com/ -- is an innovative product company that designs, develops and manufactures digital wireless and communication products. The company deliver products by offering its partners and customers complete vertical integration, from product design and development to final production. The company's products include digital cordless phones, Voice over Internet Protocol phones, digital wireless baby monitors and digital wireless conference phones. Ascalade products have been distributed in over 35 countries and under 80 regional brands. Ascalade also has facilities in Qingyuan, China, Hong Kong and a sales office in Hertfordshire, United Kingdom. ASSET BACKED: Fitch Cuts Ratings on $609.1 Million Certificates --------------------------------------------------------------- Fitch Ratings has taken these rating actions on two Asset Backed Securities Corporation Home Equity Loan Trust mortgage pass- through certificates. Unless stated otherwise, any bonds that were previously placed on Rating Watch Negative are removed. Affirmations total $129.4 million and downgrades total $609.1 million. Additionally, $461.4 million remains on Rating Watch Negative. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: ABSC HELT, Series RFC 2007-HE1 -- $48.7 million class A1A downgraded to 'AA' from 'AAA', remains on Rating Watch Negative (BL: 43.43, LCR: 1.56); -- $48.7 million class A1B downgraded to 'AA' from 'AAA', remains on Rating Watch Negative (BL: 43.43, LCR: 1.56); -- $129.4 million class A2 affirmed at 'AAA', (BL: 62.93, LCR: 2.26); -- $50.3 million class A3 rated 'AAA', remains on Rating Watch Negative (BL: 54.04, LCR: 1.94); -- $101.4 million class A4 downgraded to 'AA' from 'AAA', remains on Rating Watch Negative (BL: 43.64, LCR: 1.56); -- $31.4 million class A5 downgraded to 'AA' from 'AAA', remains on Rating Watch Negative (BL: 41.72, LCR: 1.5); -- $27.6 million class M1 downgraded to 'BB' from 'AA' (BL: 36.82, LCR: 1.32); -- $25.4 million class M2 downgraded to 'B' from 'AA-' (BL: 32.20, LCR: 1.15); -- $14.5 million class M3 downgraded to 'B' from 'AA-' (BL: 29.53, LCR: 1.06); -- $13.1 million class M4 downgraded to 'CCC' from 'A+' (BL: 27.09, LCR: 0.97); -- $12.4 million class M5 downgraded to 'CCC' from 'A' (BL: 24.70, LCR: 0.89); -- $11.3 million class M6 downgraded to 'CCC' from 'BBB+' (BL: 22.44, LCR: 0.8); -- $11.0 million class M7 downgraded to 'CC' from 'BBB' (BL: 20.09, LCR: 0.72); -- $8.8 million class M8 downgraded to 'CC' from 'BB' (BL: 18.02, LCR: 0.65); -- $4.9 million class M9 downgraded to 'CC' from 'BB' (BL: 16.78, LCR: 0.6); -- $4.9 million class M10 downgraded to 'CC' from 'B' (BL: 15.62, LCR: 0.56); -- $7.4 million class M11 downgraded to 'CC' from 'B' (BL: 14.16, LCR: 0.51); Deal Summary -- Originators: Residential Funding Company, LLC (100%); -- 60+ day Delinquency: 18.73%; -- Realized Losses to date (% of Original Balance): 0.26%; -- Expected Remaining Losses (% of Current balance): 27.89%; -- Cumulative Expected Losses (% of Original Balance): 22.63%. ABSC HELT, Series AMQ 2007-HE2 -- $98.9 million class A1 downgraded to 'BBB' from 'AA-', remains on Rating Watch Negative (BL: 39.22, LCR: 1.22); -- $68.4 million class A2 rated 'AAA', remains on Rating Watch Negative (BL: 56.28, LCR: 1.76); -- $21.0 million class A3 downgraded to 'AA' from 'AAA' (BL: 48.89, LCR: 1.53); -- $30.1 million class A4 downgraded to 'A' from 'AAA' (BL: 41.74, LCR: 1.3); -- $13.5 million class A5 downgraded to 'BBB' from 'AA-', remains on Rating Watch Negative (BL: 39.43, LCR: 1.23); -- $16.4 million class M1 downgraded to 'B' from 'A+' (BL: 34.03, LCR: 1.06); -- $16.4 million class M2 downgraded to 'CCC' from 'A-' (BL: 28.77, LCR: 0.9); -- $5.0 million class M3 downgraded to 'CCC' from 'BBB+' (BL: 27.12, LCR: 0.85); -- $5.0 million class M4 downgraded to 'CCC' from 'BBB' (BL: 25.42, LCR: 0.79); -- $5.7 million class M5 downgraded to 'CC' from 'BBB-' (BL: 23.45, LCR: 0.73); -- $3.8 million class M6 downgraded to 'CC' from 'BBB-' (BL: 22.03, LCR: 0.69); -- $5.2 million class M7 downgraded to 'CC' from 'BB' (BL: 20.06, LCR: 0.63); -- $4.7 million class M8 downgraded to 'CC' from 'B' (BL: 18.32, LCR: 0.57); -- $5.0 million class M9 downgraded to 'CC' from 'B' (BL: 16.53, LCR: 0.52); -- $6.8 million class M10 downgraded to 'C' from 'CCC' (BL: 14.47, LCR: 0.45); Deal Summary -- Originators: Ameriquest Mortgage Company (100%); -- 60+ day Delinquency: 18.45%; -- Realized Losses to date (% of Original Balance): 0.08%; -- Expected Remaining Losses (% of Current balance): 32.02%; -- Cumulative Expected Losses (% of Original Balance): 29.70%. The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and late 2005 with regard to continued poor loan performance and home price weakness. BACH HOP: Case Summary & 14 Largest Unsecured Creditors ------------------------------------------------------- Debtor: Bach Hop Jewelry Inc. 6795 Wilson Boulevard, Suite 48 Falls Church, VA 22044 Bankruptcy Case No.: 08-10924 Type of Business: The Debtor offers custom made jewelry. Chapter 11 Petition Date: February 28, 2008 Court: Eastern District of Virginia (Alexandria) Debtor's Counsel: Michael R. Strong, Esq. (stronglawfirm@msn.com) The Strong Law Firm, P.C. 7202 Arlington Blvd., Suite 202 Falls Church, VA 22042 Tel: (703) 204-2040 Fax: (703) 204-1979 Total Assets: $165,989 Total Debts: $1,258,661 Consolidated Debtor's List of 14 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ S'. Juwal & Co. vendor $288,589 New York Office 580 5th Avenue, Suite 715A New York, NY 10036 United Diamonds Inc. vendor $275,026 451 Hungerford Drive Suite 107 Rockville, MD 20850 H.K. Mallak, Inc. vendor $217,641 98 Cutter Mill Road Suite 477N Great Neck, NY 11021 BSH Diamond Corp. vendor $84,161 Thai Thu personal loan $76,000 S.B. Diamond Corp. vendor $59,144 Hieu's Diamond vendor $53,190 An Mai Nguyen personal loan $45,000 Coral Diamonds vendor $43,784 Solar Diamonds Inc. vendor $32,575 K.L.H. Inc. vendor $32,101 Mai Lan Nguyen personal loan $30,900 JTZ Jewelry vendor $11,450 RC Diamonds vendor $9,100 BARNHILL'S BUFFET: Completes Sale of Restaurants to Star Buffet --------------------------------------------------------------- Star Buffet Inc.'s subsidiary, Starlite Holdings Inc., completed the acquisition of four additional Barnhill's buffet restaurants -- one each in Gulfport and Moss Point, Mississippi and Apopka and Orange City, Florida. The acquisition was completed in conjunction with Barnhill's Buffet Inc.'s Chapter 11 reorganization and approved by the U.S. Bankruptcy Court of the Middle District of Tennessee. The purchase of these four restaurants brings the total number of Barnhill's buffet restaurants acquired to twenty and completes Star Buffet's plans to acquire certain Barnhill's buffet restaurants as part of Barnhill's Buffet's plans to restructure its operations. Madison, Tennessee-based Barnhill's Buffet Inc., aka Barnhill's Buffet of Tennessee Inc., -- http://www.barnhills.com/-- operates a chain of restaurants, a total of 29 stores located in six states. Its parent company is Dynamic Acquisition Group LLC. The company filed for chapter 11 bankruptcy on Dec. 3, 2007 (Bankr. M.D. Tenn. Case No. 07-08948) after it continued to suffer operating losses. William Caldwell Hancock, Esq., at The Hancock Law Firm represents the Debtor in its restructuring efforts. Attorneys at MGLAW PLLC represent the Official Committee of Unsecured Creditors. When the Debtor filed for bankruptcy, it listed assets and debts between $1 million and $50 million. BIO-RAD LABS: Earns $12.3MM For 2007 Fourth Quarter Ended Dec. 31 ----------------------------------------------------------------- Bio-Rad Laboratories Inc. reported net income for the 2007 fourth quarter was $12.3 million compared to $16.6 million during the fourth quarter of the prior year. For the full 2007 fiscal year, the company's net income is $92.9 million, compared to $103.2 million net income for 2006. These results reflect non-cash charges of $12.9 million, which includes a one-time charge of $7.7 million for purchased in- process R & D, and approximately $5.2 million in amortization of intangibles related to DiaMed. Including the DiaMed acquisition, fourth-quarter basic earnings from operations were $0.46 per share, compared to $0.63 during the same period last year. Fourth-quarter gross margin was 50.8% compared to 54.1% during the same quarter last year. The lower margin in the most recent quarter reflects the impact of the DiaMed acquisition including foregone profit margin and the amortization of intangibles. Fourth-quarter revenues were $459.6 million, up 34% compared to $343.0 million reported for the fourth quarter of 2006. For the full year, sales grew by 14.7% to $1,461.0 million compared to $1,273.9 million in 2006. Excluding revenue from the DiaMed acquisition, Bio-Rad sales grew by 9.8%, or 5.2% after normalizing for the impact of currency effects. Full-year gross margin was 54.2% compared to last year's figure of 55.9%. Revenues, earnings, and gross margin for 2006 were all favorably impacted by one-time additional revenue of $11.7 million which was the result of a licensing settlement agreement reached with bioMerieux SA in 2006. This increase was due to a combination of organic growth across Bio-Rad's two main product areas, the Life Science and Clinical Diagnostics segments, as well as the addition of DiaMed Holding AG products to the company's portfolio in the fourth quarter, which resulted in additional revenue of $62.0 million and impacted fourth-quarter and full-year results. Excluding the revenue from the DiaMed acquisition, fourth-quarter revenues were up 15.9%, or 9.0% on a currency-neutral basis, compared to the same quarter last year. "Operationally, 2007 was another year of progress for Bio-Rad and one of investment as we welcomed DiaMed Holding AG into our organization," Norman Schwartz, Bio-Rad president and chief executive officer, said. "As 2008 moves forward, we will continue to explore opportunities to expand our business and improve our operational efficiencies." As of Dec. 31, 2007, the company's balance sheet reflected a total assets of $1,971.5 million, total liabilities of $999.9 million resulting to a total stockholders' equity of $971.6 million. About Bio-Rad Laboratories Headquartered in Herculed, California, Bio-Rad Laboratories Inc. (AMEX:BIO) -- http://www.bio-rad.com-- manufactures and supplies the life science research, healthcare, analytical chemistry and other markets with a range of products and systems used to separate chemical and biological materials, and to identify, analyze and purify their components. Bio-Rad operates through two segments: life science and clinical diagnostics. Each operates in both the United States and international markets. Each of Bio- Rad's segments maintains a sales force to sell its products on a direct basis. On Sept. 7, 2006, the company acquired the medical diagnostics business of Provalis plc. In October 2006, Bio-Rad acquired Blackhawk BioSystems Inc. In November 2006, it acquired Ciphergen Biosystems Inc.'s ProteinChip systems business and worldwide technology rights to its surface enhanced laser desorption and ionization. * * * Bio-Rad Laboratories continues to carry Moody's Investor's Service's 'Ba2' corporate family rating and 'Ba3' senior subordinate debt rating, assigned in July 2003. BLACKHAWK AUTOMOTIVE: Can Sell All Assets to Flex-N-Gate for $20MM ------------------------------------------------------------------ The Honorable Kay Woods of the United States Bankruptcy Court for the Northern District of Ohio authorized Blackhawk Automotive Plastics Inc. and its debtor-affiliates to sell substantially all of their assets to Flex-N-Gate LLC for $20,768,000. According to Court filing, auto supplier Flex-N-Gate LLC in Illinois was named "stalking horse" bidder. Judge Woods also authorized the Debtors to pay $400,000 break-up fee to Flex-N-Gate, if a competing bid of any qualified bidder is submitted at the auction. Otherwise, the Debtors will only pay $150,000. As reported in the Troubled Company Reporter on Feb. 21, 2008, the Debtors sold their operating assets, including equipment, inventory and certain leasehold rights, located at 800 Pennsylvania Avenue in Salem, Ohio, and at 4219 U.S. Rt. 42 in Mason, Ohio. The Debtors' 273,000-square-foot Mason manufacturing facility in Mason, Ohio, if not included in the sale, could send at least 700 workers jobless, Business Courier of Cincinnati reports. That plant would close permanently, it adds. As previously reported, Judge Woods approved the bidding procedure proposed by the Debtors for the public sale of their assets. Sale Protocol Qualified bidders must deliver their offers no later than 5:00 p.m., on Feb. 29, 2008, at: W.Y. Campbell & Company, c/o Ty T. Clutterbuck 1 Woodward Avenue, 26th Floor Detroit, MI 48226 An auction will take place March 3, 2008, at 11:00 a.m., at the offices of Honigman, Miller, Schwartz & Cohn LLP in Detroit, Michigan. During the auction, qualified bidders may submit bids in increments of at least $100,000. A sale hearing has been set on March 5, 2008, at 10:00 a.m., to consider approval of the Debtors' request. About Blawkhawk Automotive Salem, Ohio-based Blackhawk Automotive Plastics Inc., formerly Warren Molded/Custom Plastics, manufactures injection molded plastic products and motor vehicle parts and accessories. BAP's customers include General Motors, Delphi, Lear, Chrysler, Honda, Navistar, and Visteon. BAP employs about 1,574 workers domestically, and generated $136 million in sales in 2006. BAP owns Canadian subsidiary, Blackhawk Automotive Plastics Ltd. which operated a manufacturing facility in Ontario until Johnson Controls Inc. bought BAP Canada's assets in May 2005. BAP Canada's remaining assets consist primarily of net operating loss carryforwards for Canadian tax purposes. The NOLs had a book value of about $8.2 million as of December 2005. BAP also owns a plant in Upper Sandusky, Ohio, which ceased operations in 2006. The company filed for chapter 11 protection on Oct. 22, 2007 (Bankr. N.D. Ohio, Case No. 07-42671). Its parent company, Tier e Automotive Group Inc., filed a separate chapter 11 petition on the same day (Bankr. N.D. Ohio, Case No. 07-42673). Tier e acquired BAP from Worthington Industries Inc. in 1999. Tier e also owns 49% stake in Nescor Holdings Inc., a holding company for Nescor Plastics Corporation, also an automotive plastics supplier. William I. Kohn, Esq., David M. Neumann, Esq., Stuart A. Laven, Jr., Esq., at Benesch, Friedlander, Coplan & Aronoff LLP, represent the Debtors in their restructuring efforts. Donlin Recano & Company Inc. provides the Debtors with claims, noticing, balloting and distribution services. The Debtors' schedules disclosed total assets of $58,665,229 and total liabilities of $51,244,592. As of bankruptcy filing, BAP's aggregate debt to its senior facility lenders was about $33 million. * * * As reported i nthe Troubled Company Reporter on Feb. 21, 2008, the Debtors asked the Court to further extend their exclusive period to file a Chapter 11 plan until May 19, 2008. BMO FINANCIAL: Talks on Restructuring Apex/Sitka Trusts Ongoing --------------------------------------------------------------- BMO Financial Group, dba Bank of Montreal, confirmed that, despite the downgrade of the ratings of the notes of Apex Trust and Sitka Trust by DBRS, discussions regarding the restructuring of the two Trusts are continuing. BMO also confirmed that a cure period of two business days is available after a notice of default has been given by the indenture trustee to the Trusts with respect to the inability of the Trusts to roll their notes. BMO said that while discussions about the restructuring of the Trusts continue, it cannot predict the outcome of the discussions. The bank said that the outcome of these discussions will not impact BMO's emphasis on moving its businesses forward through a clear focus on customers and performance management. BMO previously disclosed that if efforts to restructure the Trusts were not successful, it would write down its remaining investment in the Trusts. BMO is not and has never been the backup liquidity provider to the Trusts. In addition, BMO noted that these developments have no impact on the ratings of or BMO's support for the BMO-sponsored conduits to which BMO provides global style liquidity. BMO also noted that there is risk of litigation should the Trusts not successfully be restructured. One noteholder to the trust is disputing the return of a payment made to it in error and a swap counterparty is disputing its obligations under an agreement and with respect to a total return swap transaction it had previously confirmed. The bank stated that it is not possible to determine the amount or probability of losses, if any, at this time. CA$405 Million WriteDown As reported in the Troubled Company Reporter yesterday, BMO Financial, will make a CA$495 million writedown on two asset- backed commercial-paper due to increasing woes in Canada's securities market. Charges taken in BMO's fourth quarter 2007 and first quarter 2008 in connection with Apex and Sitka Trusts total CA$210 million, leaving BMO with a net position of CA$495 million. The charges that BMO has taken reflect its expectations with respect to the probability of Apex and Sitka Trusts being restructured. DBRS Cuts Ratings on Apex and Sitka The TCR said that on Feb. 28, 2008, rating agency DBRS downgraded Apex and Sitka to R-5, its lowest short-term debt rating, and CCC, its fourth-lowest speculative long-term rating. The negative rating action followed the bank's disclosure that Apex failed to find buyers for all of its notes that came due. DBRS said a default by Apex would result in a default by Sitka. S&P Ratings Unaffected By Likely Write-Offs The TCR also reported that on Feb. 28, 2008, Standard & Poor's Ratings Services said its ratings on the Bank of Montreal (BMO; A +/Stable/A-1) and its subsidiaries remain unchanged following reports that the bank could face up to CA$495 million in additional write-offs related to two of its asset-backed commercial paper trusts that it sponsors. About BMO Financial Group Established in 1817 as Bank of Montreal, BMO Financial Group (TSX, NYSE: BMO) -- http://www2.bmo.com/-- is a diversified financial services organization. With total assets of $367 billion at Oct. 31, 2007, and almost 36,000 full-time employees worldwide, BMO serves a broad range of personal, commercial, corporate and institutional customers. BOMBARDIER INC: S&P Keeps Positive Watch Posting of 'BB' Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said its ratings, including the 'BB' long-term corporate credit rating, on Montreal-based Bombardier Inc. remain on CreditWatch with positive implications, pending a review of the company's future business and financial plans. S&P placed the ratings on CreditWatch Dec. 3, 2007, following the company's announcement to repurchase approximately $1.1 billion of unsecured bonds on Nov. 28, 2007. The debt reduction came into effect on Jan. 17, 2008. "The combination of reduced debt, improved cash flow from all business segments, and significant backlog should enhance the company's financial risk profile and improve its credit measures," said Standard & Poor's credit analyst Greg Pau. S&P expects adjusted debt to EBITDA to improve to 3.2x for the year ended Jan. 31, 2008, from 4.6x from the preceding fiscal year, and funds from operations to debt to increase to 20% from 14%. In the next few weeks, Standard & Poor's will review the company's business and financial plans and discuss them with Bombardier management. This should allow S&P time to assess the implications of Bombardier's new business initiatives, including those related to the progress of its C-series aircraft development, its medium- term business, and financial risk profile. S&P expects to complete the assessment and resolve the CreditWatch before March 31, 2008. BROOKVILLE CDO: Moody's Junks Rating on $125 Mil. Notes From 'A3' ----------------------------------------------------------------- Moody's Investors Service downgraded ratings of seven classes of notes issued by Brookville CDO I, Ltd., and left on review for possible further downgrade the rating of one of these classes of notes. The notes affected by this rating action are: Class Description: $200,000,000 Class A-1 First Priority Senior Secured Floating Rate Delayed Draw Notes Due 2050 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: B2, on review for possible downgrade Class Description: $125,000,000 Class A-2 Second Priority Senior Secured Floating Rate Notes Due 2050 -- Prior Rating: A3, on review for possible downgrade -- Current Rating: Ca Class Description: $50,000,000 Class A-3 Third Priority Senior Secured Floating Rate Notes Due 2050 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ca Class Description: $45,000,000 Class B Fourth Priority Senior Secured Floating Rate Notes Due 2050 -- Prior Rating: Ba1, on review for possible downgrade -- Current Rating: Ca Class Description: $28,000,000 Class C Fifth Priority Mezzanine Secured Deferrable Floating Rate Notes Due 2050 -- Prior Rating: B3, on review for possible downgrade -- Current Rating: C Class Description: $17,000,000 Class D Sixth Priority Mezzanine Secured Deferrable Floating Rate Notes Due 2050 -- Prior Rating: Caa2, on review for possible downgrade -- Current Rating: C Class Description: $15,000,000 Class E Seventh Priority Mezzanine Secured Deferrable Floating Rate Notes Due 2050 -- Prior Rating: Caa3, on review for possible downgrade -- Current Rating: C The rating actions reflect deterioration in the credit quality of the underlying portfolio, as well as the occurrence, as reported by the Trustee, of an event of default on Feb. 14, 2008 caused by a failure of the Class A Sequential Pay Ratio to be greater than or equal to 100 per cent pursuant Section 5.1(j) of the Terms Supplement to the Indenture dated April 26, 2007. Brookville CDO I, Ltd. is a collateralized debt obligation backed primarily by a portfolio of RMBS securities. As provided in Article V of the Indenture during the occurrence and continuance of an Event of Default, holders of certain Notes may be entitled to direct the Trustee to take particular actions with respect to the Collateral Debt Securities and the Notes. The rating downgrades taken reflect the increased expected loss associated with each tranche. Losses are attributed to diminished credit quality on the underlying portfolio. The severity of losses of certain tranches may be different, however, depending on the timing and choice of remedy to be pursued by certain Noteholders. Because of this uncertainty, the rating assigned to Class A-1 Notes remains on review for possible further action. CAREEL BAY: Poor Credit Quality Prompts Moody's Rating Downgrades ----------------------------------------------------------------- Moody's Investors Service downgraded ratings of six classes of notes issued by Careel Bay CDO Limited. Three of these ratings were left on review by Moody's for possible further downgrade. The notes affected by this rating actions are: Class Description: $500,000,000 Class A1S Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Aaa -- Current Rating: Ba1, on review for possible downgrade Class Description: $80,000,000 Class A1J Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Aaa -- Current Rating: B2, on review for possible downgrade Class Description: $52,000,000 Class A2 Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Aa2, on review for possible downgrade -- Current Rating: Caa1, on review for possible downgrade Class Description: $46,000,000 Class A3 Secured Deferrable Interest Floating Rate Notes Due 2047 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: Ca Class Description: $32,000,000 Class B Secured Deferrable Interest Floating Rate Notes Due 2047 -- Prior Rating: B1, on review for possible downgrade -- Current Rating: C Class Description: $10,000,000 Class C Secured Deferrable Interest Floating Rate Notes Due 2047 -- Prior Rating: Caa3, on review for possible downgrade -- Current Rating: C The rating actions reflect deterioration in the credit quality of the underlying portfolio, as well as the occurrence, as reported by the Trustee on Feb. 11, 2008, of an event of default caused by a failure of the Senior Credit Test to be satisfied, as required under Section 5.1(h) of the Indenture dated Jan. 10, 2007. Careel Bay CDO Limited is a collateralized debt obligation backed primarily by a portfolio of RMBS and CDO securities. As provided in Article 5 of the Indenture during the occurrence and continuance of an Event of Default, holders of Notes may be entitled to direct the Trustee to take particular actions with respect to the Collateral Debt Securities and the Notes. The rating downgrades taken reflect the increased expected loss associated with each tranche. Losses are attributed to diminished credit quality on the underlying portfolio. The severity of losses of certain tranches may be different, however, depending on the timing and choice of remedy to be pursued by certain Noteholders. Because of this uncertainty, the ratings of Class A1S, A1J and A2 Notes remain on review for possible downgrade. CARRINGTON MORTGAGE: Fitch Lowers Ratings on $2.6BB Certificates ---------------------------------------------------------------- Fitch Ratings has taken these rating actions on eight Carrington Mortgage Loan Trust mortgage pass-through certificate transactions. Unless stated otherwise, any bonds that were previously placed on Rating Watch Negative are now removed. Affirmations total $3.7 billion and downgrades total $2.6 billion. Additionally, $221.4 million remains on Rating Watch Negative. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: Series 2006-FRE1 -- $63.7 million class A-1 affirmed at 'AAA' (BL: 96.80, LCR: 2.29); -- $193.6 million class A-2 downgraded to 'AA' from 'AAA' (BL: 66.93, LCR: 1.58); -- $145.7 million class A-3 downgraded to 'A' from 'AAA' (BL: 58.24, LCR: 1.38); -- $47.0 million class A-4 downgraded to 'A' from 'AAA' (BL: 55.43, LCR: 1.31); -- $48.0 million class M-1 downgraded to 'B' from 'AA+' (BL: 49.79, LCR: 1.18); -- $44.5 million class M-2 downgraded to 'B' from 'AA' (BL: 44.36, LCR: 1.05); -- $27.0 million class M-3 downgraded to 'CCC' from 'AA-' (BL: 40.94, LCR: 0.97); -- $24.6 million class M-4 downgraded to 'CCC' from 'A+' (BL: 37.77, LCR: 0.89); -- $23.4 million class M-5 downgraded to 'CCC' from 'A+' (BL: 34.73, LCR: 0.82); -- $21.1 million class M-6 downgraded to 'CCC' from 'A' (BL: 31.84, LCR: 0.75); -- $19.9 million class M-7 downgraded to 'CC' from 'A-' (BL: 28.99, LCR: 0.68); -- $17.6 million class M-8 downgraded to 'CC' from 'BBB+' (BL: 26.45, LCR: 0.62); -- $13.5 million class M-9 downgraded to 'CC' from 'BBB+' (BL: 24.46, LCR: 0.58); -- $14.6 million class M-10 downgraded to 'CC' from 'BBB+' (BL: 22.71, LCR: 0.54). Deal Summary -- Originators: 100% Fremont Investment & Loan; -- 60+ day Delinquency: 34.60%; -- Realized Losses to date (% of Original Balance): 0.26%; -- Expected Remaining Losses (% of Current balance): 42.33%; -- Cumulative Expected Losses (% of Original Balance): 28.03%. Series 2006-NC1 -- $44.1 million class A-1 affirmed at 'AAA' (BL: 99.57, LCR: 5.53); -- $188.7 million class A-2 affirmed at 'AAA' (BL: 69.28, LCR: 3.85); -- $250.4 million class A-3 affirmed at 'AAA' (BL: 54.78, LCR: 3.04); -- $81.7 million class A-4 affirmed at 'AAA' (BL: 52.13, LCR: 2.90); -- $52.6 million class M-1 affirmed at 'AA+' (BL: 44.50, LCR: 2.47); -- $49.0 million class M-2 affirmed at 'AA' (BL: 39.80, LCR: 2.21); -- $28.8 million class M-3 affirmed at 'AA-' (BL: 36.77, LCR: 2.04); -- $26.7 million class M-4 affirmed at 'A+' (BL: 33.81, LCR: 1.88); -- $24.5 million class M-5 downgraded to 'BBB' from 'A' (BL: 31.01, LCR: 1.72); -- $22.3 million class M-6 downgraded to 'BBB' from 'A-' (BL: 28.38, LCR: 1.58); -- $20.2 million class M-7 downgraded to 'BB' from 'BBB+' (BL: 25.88, LCR: 1.44); -- $15.9 million class M-8 downgraded to 'BB' from 'BBB' (BL: 23.91, LCR: 1.33); -- $14.4 million class M-9 downgraded to 'B' from 'BBB-' (BL: 22.07, LCR: 1.23); -- $14.4 million class M-10 downgraded to 'B' from 'BBB-' (BL: 20.68, LCR: 1.15). Deal Summary -- Originators: 100% New Century Mortgage Corp.; -- 60+ day Delinquency: 20.10%; -- Realized Losses to date (% of Original Balance): 0.46%; -- Expected Remaining Losses (% of Current balance): 17.99%; -- Cumulative Expected Losses (% of Original Balance): 11.74%. Series 2006-NC2 -- $49.7 million class A-1 affirmed at 'AAA' (BL: 99.03, LCR: 3.86); -- $199.5 million class A-2 affirmed at 'AAA' (BL: 64.08, LCR: 2.50); -- $99.2 million class A-3 affirmed at 'AAA' (BL: 57.37, LCR: 2.24); -- $41.8 million class A-4 affirmed at 'AAA' (BL: 55.54, LCR: 2.17); -- $41.4 million class M-1 downgraded to 'A' from 'AA+' (BL: 46.77, LCR: 1.82); -- $48.0 million class M-2 downgraded to 'BBB' from 'AA' (BL: 40.16, LCR: 1.57); -- $17.9 million class M-3 downgraded to 'BB' from 'AA-' (BL: 37.48, LCR: 1.46); -- $17.9 million class M-4 downgraded to 'BB' from 'A+' (BL: 34.63, LCR: 1.35); -- $17.9 million class M-5 downgraded to 'B' from 'A' (BL: 31.63, LCR: 1.23); -- $16.9 million class M-6 downgraded to 'B' from 'A-' (BL: 28.65, LCR: 1.12); -- $16.5 million class M-7 downgraded to 'B' from 'BBB+' (BL: 25.57, LCR: 1.00); -- $12.2 million class M-8 downgraded to 'CCC' from 'BBB' (BL: 23.20, LCR: 0.90); -- $8.5 million class M-9 downgraded to 'CCC' from 'BBB-' (BL: 21.40, LCR: 0.83); -- $10.8 million class M-10 downgraded to 'CCC' from 'BB+' (BL: 19.49, LCR: 0.76). Deal Summary -- Originators: 100% New Century Mortgage Corp.; -- 60+ day Delinquency: 25.64%; -- Realized Losses to date (% of Original Balance): 0.40%; -- Expected Remaining Losses (% of Current balance): 25.65%; -- Cumulative Expected Losses (% of Original Balance): 17.51%. Series 2006-NC3 -- $181.6 million class A-1 affirmed at 'AAA' (BL: 76.91, LCR: 3.06); -- $339.2 million class A-2 affirmed at 'AAA' (BL: 56.73, LCR: 2.26); -- $195.9 million class A-3 affirmed at 'AAA' (BL: 50.49, LCR: 2.01); -- $84.5 million class A-4 downgraded to 'AA' from 'AAA' (BL: 48.75, LCR: 1.94); -- $90.0 million class M-1 downgraded to 'BBB' from 'AA+' (BL: 40.58, LCR: 1.61); -- $82.8 million class M-2 downgraded to 'BB' from 'AA' (BL: 34.02, LCR: 1.35); -- $24.7 million class M-3 downgraded to 'BB' from 'AA-' (BL: 31.95, LCR: 1.27); -- $41.4 million class M-4 downgraded to 'B' from 'A+' (BL: 28.41, LCR: 1.13); -- $30.3 million class M-5 downgraded to 'B' from 'A' (BL: 25.71, LCR: 1.02); -- $23.1 million class M-6 downgraded to 'CCC' from 'A-' (BL: 23.55, LCR: 0.94); -- $23.1 million class M-7 downgraded to 'CCC' from 'BBB+' (BL: 21.28, LCR: 0.85); -- $16.7 million class M-8 downgraded to 'CCC' from 'BBB' (BL: 19.55, LCR: 0.78); -- $21.5 million class M-9 downgraded to 'CC' from 'BBB-' (BL: 17.18, LCR: 0.68); -- $18.3 million class M-10 downgraded to 'CC' from 'BB' (BL: 15.45, LCR: 0.61). Deal Summary -- Originators: 100% New Century Mortgage Corp.; -- 60+ day Delinquency: 22.66%; -- Realized Losses to date (% of Original Balance): 0.26%; -- Expected Remaining Losses (% of Current balance): 25.15%; -- Cumulative Expected Losses (% of Original Balance): 19.42%. Series 2006-NC4 -- $135.2 million class A-1 affirmed at 'AAA' (BL: 70.21, LCR: 3.01); -- $133.3 million class A-2 affirmed at 'AAA' (BL: 56.91, LCR: 2.44); -- $218.7 million class A-3 affirmed at 'AAA' (BL: 50.40, LCR: 2.16); -- $97.6 million class A-4 rated 'AAA', remains on Rating Watch Negative (BL: 46.88, LCR: 2.01); -- $279.1 million class A-5 affirmed at 'AAA', (BL: 56.91, LCR: 2.44); -- $91.4 million class M-1 downgraded to 'A' from 'AA+' (BL: 40.56, LCR: 1.74); -- $76.0 million class M-2 downgraded to 'BBB' from 'AA' (BL: 34.81, LCR: 1.49); -- $25.1 million class M-3 downgraded to 'BB' from 'AA-' (BL: 32.87, LCR: 1.41); -- $42.0 million class M-4 downgraded to 'BB' from 'A+' (BL: 29.48, LCR: 1.27); -- $29.9 million class M-5 downgraded to 'B' from 'A' (BL: 26.95, LCR: 1.16); -- $21.8 million class M-6 downgraded to 'B' from 'A-' (BL: 25.04, LCR: 1.08); -- $25.9 million class M-7 downgraded to 'CCC' from 'BBB+' (BL: 22.70, LCR: 0.97); -- $17.0 million class M-8 downgraded to 'CCC' from 'BBB' (BL: 21.08, LCR: 0.91); -- $22.7 million class M-9 downgraded to 'CCC' from 'BBB-' (BL: 18.74, LCR: 0.80). Deal Summary -- Originators: 100% New Century Mortgage Corp.; -- 60+ day Delinquency: 21.65%; -- Realized Losses to date (% of Original Balance): 0.16%; -- Expected Remaining Losses (% of Current balance): 23.29%; -- Cumulative Expected Losses (% of Original Balance): 18.65%. Series 2006-NC5 -- $135.9 million class A-1 affirmed at 'AAA' (BL: 67.80, LCR: 2.46); -- $125.8 million class A-2 affirmed at 'AAA' (BL: 54.49, LCR: 1.98); -- $142.8 million class A-3 downgraded to 'AA' from 'AAA' (BL: 49.69, LCR: 1.80); -- $36.4 million class A-4 downgraded to 'AA' from 'AAA' (BL: 48.84, LCR: 1.77); -- $245.6 million class A-5 affirmed at 'AAA' (BL: 54.49, LCR: 1.98); -- $67.6 million class M-1 downgraded to 'BBB' from 'AA+' (BL: 41.34, LCR: 1.5); -- $64.7 million class M-2 downgraded to 'BB' from 'AA' (BL: 35.13, LCR: 1.27); -- $21.8 million class M-3 downgraded to 'B' from 'AA' (BL: 32.92, LCR: 1.19); -- $31.8 million class M-4 downgraded to 'B' from 'A+' (BL: 29.66, LCR: 1.08); -- $24.1 million class M-5 downgraded to 'CCC' from 'A' (BL: 27.10, LCR: 0.98); -- $16.5 million class M-6 downgraded to 'CCC' from 'A-' (BL: 25.25, LCR: 0.92); -- $20.6 million class M-7 downgraded to 'CCC' from 'BBB+' (BL: 22.83, LCR: 0.83); -- $12.9 million class M-8 downgraded to 'CCC' from 'BBB' (BL: 21.19, LCR: 0.77); -- $17.6 million class M-9 downgraded to 'CC' from 'BBB' (BL: 18.84, LCR: 0.68); -- $20.6 million class M-10 downgraded to 'CC' from 'BB+' (BL: 16.53, LCR: 0.60). Deal Summary -- Originators: 100% New Century Mortgage Corp.; -- 60+ day Delinquency: 20.53%; -- Realized Losses to date (% of Original Balance): 0.12%; -- Expected Remaining Losses (% of Current balance): 27.58%; -- Cumulative Expected Losses (% of Original Balance): 24.06%. Series 2006-OPT1 -- $290.0 million class A-3 affirmed at 'AAA' (BL: 55.11, LCR: 2.28); -- $17.7 million class A-4 affirmed at 'AAA' (BL: 54.03, LCR: 2.24); -- $36.4 million class M-1 rated 'AA+', remains on Rating Watch Negative (BL: 47.01, LCR: 1.95); -- $34.4 million class M-2 downgraded to 'BBB' from 'AA+' (BL: 41.23, LCR: 1.71); -- $20.4 million class M-3 downgraded to 'BBB' from 'AA' (BL: 37.63, LCR: 1.56); -- $18.4 million class M-4 downgraded to 'BB' from 'AA-' (BL: 34.31, LCR: 1.42); -- $16.9 million class M-5 downgraded to 'BB' from 'A+' (BL: 31.19, LCR: 1.29); -- $15.9 million class M-6 downgraded to 'B' from 'A-' (BL: 28.18, LCR: 1.17); -- $14.9 million class M-7 downgraded to 'B' from 'A-' (BL: 25.21, LCR: 1.04); -- $13.0 million class M-8 downgraded to 'CCC' from 'BBB+' (BL: 22.61, LCR: 0.94); -- $10.5 million class M-9 downgraded to 'CCC' from 'BBB' (BL: 20.41, LCR: 0.84); -- $12.5 million class M-10 downgraded to 'CCC' from 'BBB' (BL: 18.35, LCR: 0.76). Deal Summary -- Originators: 100% Option One Mortgage Corp.; -- 60+ day Delinquency: 24.00%; -- Realized Losses to date (% of Original Balance): 0.38%; -- Expected Remaining Losses (% of Current balance): 24.17%; -- Cumulative Expected Losses (% of Original Balance): 13.99%. Series 2006-RFC1 -- $63.4 million class A-1 affirmed at 'AAA', (BL: 88.99, LCR: 3.45); -- $134.1 million class A-2 affirmed at 'AAA', (BL: 60.80, LCR: 2.36); -- $87.5 million class A-3 affirmed at 'AAA', (BL: 52.89, LCR: 2.05); -- $41.0 million class A-4 rated 'AAA', remains on Rating Watch Negative (BL: 49.01, LCR: 1.90); -- $30.0 million class M-1 downgraded to 'BBB' from 'AA+' (BL: 44.04, LCR: 1.71); -- $28.0 million class M-2 downgraded to 'BBB' from 'AA+' (BL: 38.99, LCR: 1.51); -- $16.5 million class M-3 downgraded to 'BB' from 'AA' (BL: 35.81, LCR: 1.39); -- $15.0 million class M-4 downgraded to 'BB' from 'AA' (BL: 32.78, LCR: 1.27); -- $14.6 million class M-5 downgraded to 'B' from 'AA-' (BL: 29.77, LCR: 1.15); -- $12.7 million class M-6 downgraded to 'B' from 'A+' (BL: 27.08, LCR: 1.05); -- $12.3 million class M-7 downgraded to 'CCC' from 'A-' (BL: 24.39, LCR: 0.95); -- $10.8 million class M-8 downgraded to 'CCC' from 'BBB+' (BL: 21.99, LCR: 0.85); -- $7.7 million class M-9 downgraded to 'CCC' from 'BBB+' (BL: 20.15, LCR: 0.78); -- $8.8 million class M-10 downgraded to 'CC' from 'BBB' (BL: 18.42, LCR: 0.71). Deal Summary -- Originators: 100% Residential Funding Corp.; -- 60+ day Delinquency: 24.11%; -- Realized Losses to date (% of Original Balance): 0.62%; -- Expected Remaining Losses (% of Current balance): 25.79%; -- Cumulative Expected Losses (% of Original Balance): 17.79%. The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and late 2005 with regard to continued poor loan performance and home price weakness. CARRINGTON MORTGAGE: Fitch Chips Ratings on $894.2MM Certificates ----------------------------------------------------------------- Fitch Ratings has taken these rating actions on six Carrington Mortgage Loan Trust mortgage pass-through certificate transactions. Unless stated otherwise, any bonds that were previously placed on Rating Watch Negative are removed. Affirmations total $689.5 million and downgrades total $894.2 million. Additionally, $628 million remains on Rating Watch Negative. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: Series 2007-FRE1 -- $320.5 million class A-1 affirmed at 'AAA' (BL: 60.04, LCR: 2.25); -- $143.4 million class A-2, rated 'AAA', remains on Rating Watch Negative (BL: 51.25, LCR: 1.92); -- $143.3 million class A-3 downgraded to 'AA' from 'AAA' and remains on Rating Watch Negative (BL: 45.28, LCR: 1.7); -- $26.4 million class A-4 downgraded to 'AA' from 'AAA', remains on Rating Watch Negative (BL: 44.46, LCR: 1.67); -- $58.5 million class M-1 downgraded to 'BB' from 'AA-' (BL: 37.76, LCR: 1.42); -- $40.4 million class M-2 downgraded to 'B' from 'A+' (BL: 32.98, LCR: 1.24); -- $20.7 million class M-3 downgraded to 'B' from 'A' (BL: 30.40, LCR: 1.14); -- $17.7 million class M-4 downgraded to 'B' from 'A-' (BL: 28.05, LCR: 1.05); -- $16.7 million class M-5 downgraded to 'CCC' from 'BBB+' (BL: 25.81, LCR: 0.97); -- $15.1 million class M-6 downgraded to 'CCC' from 'BBB' (BL: 23.73, LCR: 0.89); -- $14.6 million class M-7 downgraded to 'CCC' from 'BBB-' (BL: 21.83, LCR: 0.82); -- $13.6 million class M-8 downgraded to 'CCC' from 'BB' (BL: 20.11, LCR: 0.76); -- $12.6 million class M-9 downgraded to 'CC' from 'B' (BL: 18.61, LCR: 0.70); -- $14.1 million class M-10 downgraded to 'CC' from 'B' (BL: 17.27, LCR: 0.65). Deal Summary -- Originators: 100% Fremont Investment & Loan; -- 60+ day Delinquency: 16.54%; -- Realized Losses to date (% of Original Balance): 0.02%; -- Expected Remaining Losses (% of Current balance): 26.63%; -- Cumulative Expected Losses (% of Original Balance): 24.01%. Series 2007-HE1 -- $119.4 million class A-1 affirmed at 'AAA' (BL: 72.78, LCR: 2.64); -- $64.5 million class A-2, rated 'AAA', remains on Rating Watch Negative (BL: 52.40, LCR: 1.90); -- $42.8 million class A-3 downgraded to 'AA' from 'AAA' (BL: 43.96, LCR: 1.59); -- $20 million class A-4 downgraded to 'AA' from 'AAA' and remains on Rating Watch Negative (BL: 41.51, LCR: 1.50); -- $26.9 million class M-1 downgraded to 'B' from 'AA+' (BL: 32.66, LCR: 1.18); -- $17.3 million class M-2 downgraded to 'B' from 'AA' (BL: 28.16, LCR: 1.02); -- $7.9 million class M-3 downgraded to 'CCC' from 'AA-' (BL: 25.80, LCR: 0.93); -- $7.1 million class M-4 downgraded to 'CCC' from 'A+' (BL: 23.58, LCR: 0.85); -- $6.5 million class M-5 downgraded to 'CCC' from 'A' (BL: 21.51, LCR: 0.78); -- $6.3 million class M-6 downgraded to 'CC' from 'A-' (BL: 19.38, LCR: 0.70); -- $6 million class M-7 downgraded to 'CC' from 'BBB+' (BL: 17.37, LCR: 0.63); -- $5.8 million class M-8 downgraded to 'CC' from 'BBB' (BL: 15.61, LCR: 0.57); -- $5.2 million class M-9 downgraded to 'CC' from 'BBB' (BL: 14.35, LCR: 0.52). Deal Summary -- Originators: Various; -- 60+ day Delinquency: 10.14%; -- Realized Losses to date (% of Original Balance): 0.00%; -- Expected Remaining Losses (% of Current balance): 27.61%; -- Cumulative Expected Losses (% of Original Balance): 25.70%. Series 2007-RFC1 -- $249.5 million class A-1 affirmed at 'AAA' (BL: 62.87, LCR: 2.09); -- $123.1 million class A-2, rated 'AAA', remains on Rating Watch Negative (BL: 53.29, LCR: 1.77); -- $107.4 million class A-3 downgraded to 'AA' from 'AAA' and remains on Rating Watch Negative (BL: 47.84, LCR: 1.59); -- $42.2 million class A-4 downgraded to 'A' from 'AAA' (BL: 42.99, LCR: 1.43); -- $49.4 million class M-1 downgraded to 'B' from 'AA-' (BL: 35.22, LCR: 1.17); -- $41.1 million class M-2 downgraded to 'B' from 'A+' (BL: 29.71, LCR: 0.99); -- $15.7 million class M-3 downgraded to 'CCC' from 'A-' (BL: 27.76, LCR: 0.92); -- $22.7 million class M-4 downgraded to 'CCC' from 'BBB+' (BL: 25.03, LCR: 0.83); -- $13.1 million class M-5 downgraded to 'CCC' from 'BBB' (BL: 23.44, LCR: 0.78); -- $11.8 million class M-6 downgraded to 'CC' from 'BBB-' (BL: 21.99, LCR: 0.73); -- $16.2 million class M-7 downgraded to 'CC' from 'BB' (BL: 19.92, LCR: 0.66); -- $7 million class M-8 downgraded to 'CC' from 'BB' (BL: 18.98, LCR: 0.63); -- $11.4 million class M-9 downgraded to 'CC' from 'B' (BL: 17.39, LCR: 0.58); -- $10.5 million class M-10 downgraded to 'CC' from 'B' (BL: 16.23, LCR: 0.54). Deal Summary -- Originators: Various; -- 60+ day Delinquency: 22.73%; -- Realized Losses to date (% of Original Balance): 0.10%; -- Expected Remaining Losses (% of Current balance): 30.10%; -- Cumulative Expected Losses (% of Original Balance): 25.93%. The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and late 2005 with regard to continued poor loan performance and home price weakness. CATHOLIC CHURCH: Fairbank's Case Summary & 20 Largest Creditors --------------------------------------------------------------- Debtor: Catholic Bishop of Northern Alaska aka Catholic Diocese of Fairbanks aka The Diocese of Fairbanks aka CBNA 1316 Peger Road Fairbanks, AK 99709-5199 Tel: (907) 374-9500 Bankruptcy Case No.: 08-00110 Type of Business: The Debtor owns and manages the Catholic diocese of Fairbanks in Alaska. See http://www.cbna.info/ Chapter 11 Petition Date: March 1, 2008 Court: District of Alaska Judge: Donald MacDonald IV Debtor's Counsel: Susan G. Boswell, Esq. (sboswell@quarles.com) Quarles & Brady, L.L.P. One South Church Avenue Tucson, AZ 85701 Tel: (520) 770-8713 Fax: (520) 770-2222 http://www.quarles.com/ Estimated Assets: $10 million to $50 million Estimated Debts: $1 million to $10 million Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Oregon Province of Society of Amount due for $220,677 P.O. Box 86010 acquisition of Jesus Portland, OR 97286-0010 property Alaska Conference of Catholic Insurance $200,000 Bishops, Inc. Premium 415 6th Street, Suite 300 Juneau, AK 99801 Busch, Thomas A. Employee $61,165 3116 Pleasant Drive Anchorage, AK 99502 Internal Revenue Taxes related to $50,000 Service prepetition period due postpetition Bowder, Rev. George Employee $40,902 Schmidt, Norman E. Employee $33,501 Mt. Angel Abbey, Note $20,000 Korchin, Paul D. Employee $19,649 Desrochers, Andreira C. Employee $15,261 Mantei, Robert G. Employee $13,128 Immaculate Conception Parish Services paid $10,975 Rensink, Derrik D. Employee $10,217 Radich, Sr. Kathy Employee $9,950 Poirrier, Kathleen L. Employee $7,952 Sacred Heart Cathedral Services paid $7,830 Tam, Patrick C.W. Employee $7,362 Marx, SNJM, Sr. Marilyn Employee $7,107 Walter, Patricia T. Employee $6,777 Berger Schmidt, Lynette C. Employee $6,580 Johnson, Betty J. Employee $4,942 CENTRAL ILLINOIS: Court OKs Bidding Procedure for Sale of Assets ---------------------------------------------------------------- The Hon. Thomas L. Perkins of the United States Bankruptcy Court for the Central District of Illinois approved the proposed bidding procedure filed by Central Illinois Energy LLC for the sale of substantially all of its assets to Newco LLC for $80,000,000. Newco is a limited liability company to be formed by the lenders under a certain $87,500,000 secured credit facility dated April 24, 2006. As reported in the Troubled Company Reporter on Feb. 8, 2008, the Debtor sold the 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. As reported in the Troubled Company Reporter on Feb. 28, 2008 Newco purchased the assets subject to any valid, perfected Mechanic's lien claims; provided that Newco would 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. As reported in the Troubled Company Reporter on Feb. 8, 2008 Credit Suisse Group, agent for secured lenders with $95 million claims, won't lend money to the Debtor for the construction of the plant until it's sold. The plant was designed to process around 37 million gallons of ethanol per year, he adds. The sale is expected to close by March 31, 2008. Sale Protocol 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 Judge Perkins set a hearing on April 9, 2008, at 10:00 a.m., whether to approve the sale of the Debtor's assets. 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. CHARTER COMMS: Dec. 31 Balance Sheet Upside Down by $7.8 Billion ---------------------------------------------------------------- Charter Communications Inc.'s balance sheet as of Dec. 31, 2007 showed total assets of $14.6 billion, total liabilities of $22.5 billion resulting to a total shareholders' deficiency of $7.8 billion. Net loss for the fourth quarter of 2007 ended Dec. 31 was $468 million compared to the fourth quarter of 2006 reported net loss of $396 million. Net loss for the full year 2007 was $1.616 billion compared to the full year 2006 net loss of $1.370 billion. Net loss increased year over year due to a $148 million charge related to the early retirement of debt in 2007, while a $101 million gain related to the early retirement of debt was recorded in 2006. Additionally, in 2006 a $200 million gain was recorded related to the sale of discontinued operations. Total revenues for the 2007 fourth quarter was $1.5 billion compared to $1.4 billion revenues for the 2006 fourth quarter. For the full year ended Dec. 31, 2007, the company generated revenues of $6.0 billion, in comparison with $5.5 billion revenues of fiscal 2006. "I am pleased with the consistency of Charter's performance and its continuing success in building operational momentum," Paul G. Allen, charter chairman of the board and controlling shareholder, said. "In 2007, Neil and our management team executed our strategic plans and drove operational and financial improvement." "All of Charter's employees deserve recognition for the Company's performance, and I am proud of their efforts," Mr. Allen continued. "We expect the Charter Bundle and Charter Business Bundle to continue to be the primary platform for success in 2008, and I am encouraged about the prospects for Charter as we continue to improve the experience for our customers." "I am pleased to be announcing year-over-year double-digit pro forma revenue and adjusted EBITDA growth for the fifth consecutive quarter," Neil Smit, president and chief executive officer, said. "We have momentum coming out of 2007 and we remain disciplined in targeting our operating, marketing and capital investments to grow the business." Operating income from continuing operations was $85 million in the fourth quarter of 2007, compared to $163 million in the fourth quarter of 2006. The decrease was primarily related to a $178 million impairment of franchises in the fourth quarter of 2007. No comparable charge occurred in the fourth quarter of 2006. Expenditures for property, plant, and equipment for the fourth quarter of 2007 were $354 million, compared to fourth quarter 2006 expenditures of $308 million. The increase in capital expenditures primarily reflects year-over-year increases in customer premise equipment and support capital. There were no net cash flows generated or used in operating activities during the fourth quarter of 2007, compared to $25 million of net cash flows used in operating activities for the fourth quarter of 2006. Operating costs and expenses were $3.891 billion, an increase of 8.4% compared to year-ago actual results. Operating income from continuing operations increased to $548 million for the full year 2007, compared to $367 million in the full year 2006. The primary drivers of the increase in operating income were increased revenues and higher margins year over year. Net cash flows from operating activities for the full year 2007 were $327 million, compared to $323 million for the full year 2006. As of Dec. 31, 2007, Charter