T R O U B L E D C O M P A N Y R E P O R T E R Thursday, March 27, 2008, Vol. 12, No. 73 Headlines AAMES MORTGAGE: S&P Rating on Class M6 Tumbles to 'D' on Losses ABITIBIBOWATER INC: Abitibi-Consolidated Has Substantial Doubt ABITIBIBOWATER INC: Moody's Rates Unit's $450MM Loan at B1 ADVANCED LIVING: Court Approves Disclosure Statement ADVANCED LIVING: Court Sets Plan Confirmation Hearing on April 30 AFFILIATED COMPUTER: Communications Dev't. Buyout to Augment Biz AFFIRMATIVE INSURANCE: Tangible Fin'l Cues A.M. Best to Hold Rtngs ALEX VALLADARES: Case Summary & 17 Largest Unsecured Creditors ALKERMES INC: Reduces 18% of Workforce Under Restructuring Plan AMERICAN TECH: Jan. 31 Balance Sheet Upside-Down by $6,005,831 ANTHONY ENRICO: Case Summary & 10 Largest Un4secured Creditors BARCLAYS CAPITAL: S&P Holds Developing Watch on Cl. G's BB+ Rating BEAR STEARNS: Launches First Actively Managed Exchange Traded Fund BEAR STEARNS: Moody's Rates Current Yield Fund At 'Aaa' and 'MR1' BEAR STEARNS: S&P Assigns AAAf and S1+ Rating on Current Yield ETF BEAR STEARNS: Fitch Junks Ratings on Six Certificate Classes BFWEST LLC: Files for Chapter 11 Protection in Southern Florida BLACK GOLD: Case Summary & 20 Largest Unsecured Creditors CA INC: Appoints Michael Christenson as President CANADIAN TRUSTS: ABCP Trusts' CCAA Restructuring Database CANADIAN TRUSTS: Pan-Canadian Committee Files Restructuring Plan CANADIAN TRUSTS: ABCP Noteholders to Hold Meeting on April 25 CANADIAN TRUSTS: Ernst & Young's First Report on ABCP Trusts CANADIAN TRUSTS: Coventree OKs Committee's Call to Vote on Plan CBRE REALTY: S&P Holds Ratings on CDO Exposed to Macklowe Debt CHARMING SHOPPES: Weak Performance Cues Moody's Rating Cut to 'B2' CHARTER COMM: Affiliate Completes $500 Mil. Offering of Term Loans CIT HOME: Realized Losses Cues S&P's 'D' Rating on Class BV Certs. CLASSICSTAR LLC: U.S. Trustee Wants Chapter 11 Case Converted CLEAR CHANNEL: Buyers Sue Financial Backers to Pursue $19BB Deal COMVERSE TECHNOLOGY: Receives Wells Notice from SEC Staff CREDIT SUISSE: Limited Paydown Cues Fitch to Affirm Ratings DEATH ROW: Withdraws Request for Approval of Asset Sale Procedures DEATH ROW: Ch. 11 Trustee Cancels Request to OK Tupac Settlement DELPHI CORP: Court OKs $46.2MM Wheel Bearing Biz Sale to Kyklos DENNY'S CORP: Weak Performance Spurs S&P to Give Negative Outlook DLJ COMMERCIAL: Fitch Junks Rating on $9MM Class B-7 Certificates EL PASO: Completes $752 Million Sale of Three Gulf Properties ENRON CORP: To Get $1 Bil. as Claims Settlement from Citigroup ESTYLE INC: Slow Economy and Low Mall Traffic Sparks Ch. 11 Filing ESTYLE INC: Case Summary & 20 Largest Unsecured Creditors E*TRADE FINANCIAL: President and COO Leaving Effective May 16 FEDERAL-MOGUL: Court OKs Section 524 Transfer of Insurance Rights FIRST NATIONWIDE: Fitch Affirms 'B' Rating on Cl. B-2 Certificates FORD MOTOR: Selling Jaguar & Land Rover to Tata Motors for $2.3BB GENERAL MOTORS: May Close Ohio Brake Part Plant Due to Axle Strike GRAIN DEALERS: A.M. Best Lifts FS Rating to B+(Good) from B(Fair) GRAND CIRCLE: S&P Puts 'B' Corporate Rating on High Debt Leverage GREEKTOWN HOLDINGS: S&P Chips Rating to 'B-' on Liquidity Concerns GREENWOOD RACING: S&P Changes Outlook to Positive; Holds B+ Rating HARMONY ENTERPRISES: Case Summary & 7 Largest Unsecured Creditors HARVEY ELECTRONICS: Court OKs Interim Financing & Store Closings HEALTH CHEM: June 30 Balance Sheet Upside-Down by $16,434,000 HEALTHY DIRECTIONS: Moody's Withdraws Ratings on Business Reasons HOLLINGER INC: Inks Settlement Agreement with Sun-Times Media HOLLINGER INC: US SEC Accepts Offer of Settlement and Consent HOLLY ENERGY: Moody's Holds 'Ba3' Ratings on $180 Mil. Acquisition HOOP HOLDINGS: Files for Chapter 11 Protection in Delaware HOOP HOLDINGS: Case Summary & 60 Largest Unsecured Creditors INNOVATIVE PROPERTIES: Case Summary & 39 Largest Unsec. Creditors INOVA TECHNOLOGY: Jan. 31 Balance Sheet Upside-Down by $271,437 INTERMEC INC: Narrow Business Profile Prompts S&P's 'BB-' Rating IRON MOUNTAIN: Moody's Upgrades Corp. Family Rating to B1 From B2 IWORLD PROJECTS: Involuntary Chapter 11 Case Summary JECO INC: Case Summary & 18 Largest Unsecured Creditors JOHN PIAZZA: Voluntary Chapter 11 Case Summary JP MORGAN: Stable Performance Cues Fitch to Affirm Ratings JP MORGAN: Fitch Holds 'B' Rating on $1.3MM Class N Certificates KLBL LLC: Voluntary Chapter 11 Case Summary LEINER HEALTH: Wants to Hire Houlihan Lokey as Financial Advisors LEINER HEALTH: Wants to Hire Kirkland & Ellis as Bankr. Counsel LEINER HEALTH: Wants Court to Set June 16 as Claims Bar Date LOGAN'S ROADHOUSE: S&P Changes Outlook to Stable; Keeps B- Rating MACKLOWE PROPERTIES: Market Woes Slow Down GM Building Sale MACKLOWE PROPERTIES: S&P Holds CBRE CDO Rating Affecting $7BB Debt MARCAL PAPER: Court Approves Amended Disclosure Statement MARK BOSWORTH: Voluntary Chapter 11 Case Summary MASTR 2005-HE1: Class M-11 Acquires S&P's 'D' Rating on Losses MASTR 2006-FRE2: S&P Cuts Rating on Class M-11 to 'D' on Losses MAXJET AIRWAYS: Court Extends Ch. 11 Plan Filing Period to Aug. 20 MILLER PETROLEUM: Jan. 31 Balance Sheet Upside-Down by $1,719,228 MM NEWTOWN: Voluntary Chapter 11 Case Summary MONEYGRAM INT'L: Completes Deal with Investors on Recapitalization MORGAN STANLEY: Moody's Retains 'Ba1' Rating on Class N-SDF Certs. MOSAIC COMPANY: S&P Maintains 'BB+' Rating With Positive Outlook MOTOROLA INC: Moody's to Review Ratings on Turnaround Delays NASH FINCH: Moody's Affirms 'B2' Ratings on With Positive Outlook PACIFICNET INC: Involuntary Chapter 11 Case Summary PCI GAMING: Moody's Holds B1 Ratings on High Margins and Cash Flow PHILLIP NMN: Case Summary & 17 Largest Unsecured Creditors PLASTECH ENGINEERED: Chrysler's Reliance on BBK's Advice Probed PLASTECH ENGINEERED: Court OKs Skadden Arps as Bankruptcy Counsel PLASTECH ENGINEERED: Can Hire Jones Day as Special Counsel PLASTECH ENGINEERED: Can Hire PricewaterhouseCoopers as Accountant PRIME MORTGAGE: S&P Junks Class B-3's Rating on High Delinquencies PROTECTED VEHICLES: Public Excluded from Ch. 11 Conversion Hearing QUAKER FABRIC: Wants Exclusive Plan Filing Period Extended QUALITY DISTRIBUTION: Impact of Losses Cues Moody's Stable Outlook QUEBECOR WORLD: Wants to Buy Bombardier Aircraft for $12 Million RAMP 2002-RS1: Adverse Performance Prompts S&P's Rating Downgrades REED HARRISON: Case Summary & 18 Largest Unsecured Creditors RICHFX INC: Lack of Financing from Parent Spurs Bankruptcy Filing RICHFX INC: Case Summary & 20 Largest Unsecured Creditors ROUNDTABLE PROPERTIES: Voluntary Chapter 11 Case Summary SACRAMENTO-YOLO PORT: Moody's Lifts Rating on Revenue Bonds at Ba3 SALANDER-O'REILLY: Has Until June 7 to File Chapter 11 Plan SALLY HOLDINGS: S&P Changes Outlook to Positive; Holds 'B' Rating SANDIA DEL SOL: Case Summary & Largest Unsecured Creditor SEA CONTAINERS: Wants Court to Reject $2 Bil. in Duplicate Claims SENDTEC INC: Inks Contract with Convertible Debenture Holders SI INTERNATIONAL: Board OKs Increase of Stock Repurchase Program SIRVA INC: Committee Wants to Hire BDO Seidman as Accountant SIRVA INC: Committee et al. Object to Request for Class 5 Panel SIRVA INC: IFL et al. Object to Adequacy of Disclosure Statement SIRVA INC: Triple Net Objects to Confirmation Discovery Schedule SIRVA INC: Panel Has Until April 11 to Object to DIP Financing SMIDTH & CO: Case Summary & Five Largest Unsecured Creditors SOUTH CAMPUS: Case Summary & 20 Largest Unsecured Creditors SPARTA COMMERCIAL: Jan. 31 Balance Sheet Upside-Down by $3,586,038 SPYRUS INC: Gets Initial Approval to Use $2 Million DIP Facility STATE STREET: Paying $0.23/Share Quarterly Dividend on April 15 STRUCTURED ASSET: Fitch Holds Low-B Ratings on 13 Certificates SUMMIT GLOBAL: Court Approves $5 Million DIP Facility of Fortress SUN-TIMES MEDIA: Inks Settlement Agreement with Hollinger Inc. SUNRISE SENIOR: Completes Financial Restatement for 2004 and 2005 TATLEAUX ANTIQUES: Case Summary & 24 Largest Unsecured Creditors TENET HEALTHCARE: Fitch Affirms 'B-' Issuer Default Rating THOMPSON PRODUCTS: Auction of Inventories Set April 1 THORNBURG MORTGAGE: Amends Bylaws Allowing $300MM Share Purchase TLC VISION: Moody's Confirms 'B1' Ratings With Negative Outlook TRM CORP: Nasdaq Denies Application for Transfer of Stocks Listing TRONOX WORLDWIDE: Weak Pricing Power Prompts Moody's Rating Cuts WACHOVIA BANK: Fitch Holds 'BB-' Rating on $16.3MM Class L Certs. WELLMAN INC: Panel Opposes Asset Sale Terms in $225MM DIP Loan WELLMAN INC: Lenders Want Lazard Payment Terms Adjusted WELLMAN INC: Court Approves Kutzman Carson as Claims Agent WESTERN POWER: Jan. 31 Balance Sheet Upside-Down by $12,368,000 ZIFF DAVIS: Seeks Leave to Pay Prepetition Critical Vendor Claims ZIFF DAVIS: Seeks to Assume 102 Vendor & Freelancer Contracts * Fitch Says 99% of Fixed-Rate Mortgages Is Still Refinanced * S&P Downgrades 195 Tranches' Ratings From 32 Cash Flows and CDOs * S&P Downgrades Ratings on 30 Classes From 17 RMBS Transactions * S&P Puts Aircraft Issuances on Negative Watch on High Fuel Rates * National Association of Realtors Says February Home Sales Rise * Charles Rotblut of Zacks.com Releases Industry Rank Analysis * Daniel Murdock and Philip Smith Joins Patton Boggs in New York * Carren Shulman & Russell Reid Join Sheppard Mullin as Partners * Jason Paru Joins MorrisAnderson in Chicago Office * Chapter 11 Cases with Assets & Liabilities Below $1,000,000 ********* AAMES MORTGAGE: S&P Rating on Class M6 Tumbles to 'D' on Losses --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating to 'D' from 'CCC' on the class M6 mortgage pass-through certificates from Aames Mortgage Trust 2003-1. Concurrently, S&P lowered its rating on class M5 to 'CCC' from 'B-'. In addition, S&P affirmed its ratings on four other classes from the same series. The downgrade of class M6 to 'D' reflects realized losses of $89,295.78 during the February 2008 remittance period. S&P downgraded class M5 because monthly losses continue to outpace excess interest, thereby continuously reducing the credit support available to the class. Cumulative realized losses to date are $15.705 million, and the pool has paid down to 12.24% of its original principal balance. Credit support for this transaction is provided by subordination, excess interest, and overcollateralization. At issuance, the collateral backing this deal consisted of subprime, fixed- and adjustable-rate, fully amortizing first-lien mortgage loans secured by one- to four-family residential properties. Ratings Lowered Aames Mortgage Trust 2003-1 Rating ------ Class To From ----- -- ---- M5 CCC B- M6 D CCC Ratings Affirmed Aames Mortgage Trust 2003-1 Class Rating ----- ------ M1 AA M2 BBB M3 BB M4 B ABITIBIBOWATER INC: Abitibi-Consolidated Has Substantial Doubt -------------------------------------------------------------- AbitibiBowater Inc. disclosed in its 2007 annual report that its wholly owned subsidiary, Abitibi-Consolidated Inc. "is currently experiencing a liquidity shortfall and liquidity problems and there is substantial doubt about Abitibi's ability to continue as a going concern." The company's independent auditor, PricewaterhouseCoopers LLP in Montreal, Quebec, Canada, said, "In the United States, reporting standards for auditors require the addition of an explanatory paragraph (following the opinion paragraph) when the financial statements are affected by conditions and events that cast substantial doubt on the company's ability to continue as a going concern." PwC further said, "Our report to the shareholders dated March 21, 2008, is expressed in accordance with Canadian reporting standards which do not permit a reference to such events and conditions in the auditor's report when these are adequately disclosed in the financial statements." Abitibi-Consolidated Abitibi-Consolidated is currently experiencing a liquidity shortfall and faces significant near-term liquidity challenges. For the year ended Dec. 31, 2007, Abitibi reported a net loss of CDN$714 million, negative cash flows from operating activities of CDN$468 million and reported an accumulated deficit of CDN$1.591 billion as at Dec. 31, 2007. At Dec. 31, 2007, Abitibi-Consolidated's balance sheet showed CDN$6.572 billion in total assets, CDN$5.026 billion in total liabilities, and CDN$1.546 billion in total stockholders' equity. Abitibi's balance sheet at Dec. 31, 2007, showed strained liquidity with CDN$1.009 billion in total current assets available to pay CDN$1.416 billion in total current liabilities. Abitibi has a total of $346 million of long-term debt that matures in 2008: -- $196 million principal amount of its 6.95% Notes due April 1, 2008, and -- $150 million principal amount of 5.25% Notes due June 20, 2008, issued by Abitibi-Consolidated Company of Canada, a wholly owned subsidiary of Abitibi. Abitibi also has revolving credit facilities with commitments totalling $710 million maturing in the fourth quarter of 2008. None of these debts have yet been refinanced. These circumstances lend substantial doubt as to the ability of Abitibi to meet its obligations as they come due and, accordingly, substantial doubt as to the appropriateness of the use of accounting principles applicable to a going concern. To address these near-term liquidity challenges, Abitibi, and its parent company, AbitibiBowater Inc., have developed a refinancing plan to address upcoming debt maturities and general liquidity needs designed to enable Abitibi to repay the $346 million due in April and June 2008 and to repay all its maturities due in 2009, while continuing to fund Abitibi's operations, debt service and capital expenditures, so it can continue as a going concern. This refinancing plan is expected to consist of: -- a $200 million to $300 million of new senior unsecured exchange notes due 2010; -- up to $450 million of a new 364-day senior secured term loan secured by substantially all of Abitibi's assets other than fixed assets; -- approximately $400 million of new senior secured notes or a term loan due 2011 secured by fixed assets; and -- $200 million to $300 million of new convertible notes of AbitibiBowater. The current state of the credit markets is a significant impediment to securing the necessary financing for Abitibi. Amended 2007 Annual Report AbitibiBowater Inc. filed on March 20, 2008, an amended annual report on Form 10-K for the fiscal year ended Dec. 31, 2007, that was originally filed on March 17, 2008. for the purpose of making minor revisions to -- insert the name and electronic signature of the Independent Registered Accounting Firm, and -- make certain minor edits and conforming changes, including changes to its Feb. 29, 2008, cash balance disclosures. In addition, AbitibiBowater is also including as exhibits to this Amendment the certifications required pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002. AbitibiBowater Financials For the year ended Dec. 31, 2007, AbitibiBowater posted a $490 million net loss on $3.876 billion of sales as compared with a $138 million net loss on $3.530 billion of sales for the same period in 2006. At Dec. 31, 2007, AbitibiBowater's balance sheet showed $10.319 billion in total assets, $8.420 billion in total liabilities, and $1.899 in total stockholders' equity. AbitibiBowater's balance sheet at Dec. 31, 2007, showed strained liquidity with $2.142 billion in total current assets available to pay $2.178 billion in total current liabilities. Full-text copies are available for free at: -- 2007 annual report of AbitibiBowater Inc. http://ResearchArchives.com/t/s?2983 -- 2007 amended 2007 annual report of AbitibiBowater Inc. http://ResearchArchives.com/t/s?2984 -- audited financial statements of Abitibi-Consolidated Inc. http://ResearchArchives.com/t/s?2985 About AbitibiBowater Headquartered in Montreal, Canada, AbitibiBowater Inc. (NYSE:ABH) -- http://www.abitibibowater.com/-- was formed as a result of the combination of Abitibi-Consolidated Inc. and Bowater Incorporated. Pursuant to the transaction, Abitibi-Consolidated Inc. and Bowater Incorporated became subsidiaries of AbitibiBowater. The company produces a wide range of newsprint, commercial printing papers, market pulp and wood products and markets these products to more than 90 countries. Following the required divestiture agreed to with the U.S. Department of Justice, AbitibiBowater will own or operate 27 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. The company also has newsprint sales offices in Brazil and Singapore. The company's shares also trade at the Toronto Stock Exchange under the stock symbol ABH. ABITIBIBOWATER INC: Moody's Rates Unit's $450MM Loan at B1 ---------------------------------------------------------- Moody's Investors Service assigned a B1 rating to the proposed new $450 million secured term loan at Abitibi-Consolidate Inc's subsidiary Abitibi-Consolidated Company of Canada. At the same time, Moody's affirmed Abitibi's corporate family rating of Caa1, the probability-of-default rating of Caa3, the senior unsecured ratings of Caa2 and the B1 rating assigned to the new $415 million secured notes due 2011. In addition, Abitibi's speculative grade liquidity rating was affirmed at SGL-4 and the rating outlook remains negative. The secured term loan will have a maturity of 364 days and will be guaranteed by Abitibi and certain subsidiaries. At closing, the loan will be primarily secured by ACCC's eligible accounts receivables and inventory. Following the close, additional assets, including the fixed assets of the Alabama River Newsprint Company, will also be pledged to secure the term loan. Because of the benefits of its security package, the term loan was assigned a rating three notches above the corporate family rating. Concurrent with the $450 million secured term loan, ACCC and AbitibiBowater are undertaking several other financing transactions totaling approximately $1.4 billion. Completion of the secured term loan is conditional upon receipt of at least $1.2 billion in aggregate proceeds from the refinancing plan. Proceeds from the refinancing plan will be used to repay existing debt, pay transaction costs and provide liquidity. The corporate family rating of Abitibi reflects the company's high debt levels, its weakened liquidity profile and the company's significant refinancing risk. The rating incorporates the company's weak credit protection measures due to the declining demand for newsprint, the deteriorating markets for their sawmill operations, rising input costs and the strong Canadian dollar. Abitibi's credit profile is supported by the company's large scale and the expectation of improved cash flow from recent industry newsprint capacity reductions supporting the recently announced newsprint price increases. The negative rating outlook reflects the potential for further downward ratings adjustment due to the risk associated with the refinancing plan and the resulting impact it would have on liquidity should it fail to be completed in the amounts and expected timeframe. Assignments: Issuer: Abitibi-Consolidated Company of Canada -- Senior Secured Bank Credit Facility, Assigned a range of 08 - LGD1 to B1 Moody's last rating action on Abitibi was on March 17, 2008, when the corporate family ratings of AbitibiBowater Inc.'s subsidiaries Abitibi and Bowater Incorporated were downgraded to Caa1 from B2. At the same time, Moody's downgraded the probability-of-default rating of Abitibi to Caa3 from B2 and the probability-of-default rating of Bowater to Caa1 from B2. Moody's assigned a B1 rating to the new $415 million secured notes due 2011 at Abitibi and downgraded the senior unsecured ratings for bonds and debentures issued by Abitibi and Bowater to Caa2 from B3. Headquartered in Montreal, Quebec, with a regional office in Greenville, South Carolina, AbitibiBowater is North America's leader in newsprint and commercial printing papers. The company also produces lumber and market pulp. The company was formed from the merger of Abitibi and Bowater Inc, in October 2007. AbitibiBowater owns or operates 27 paper and pulp facilities (excluding the Snowflake, Arizona newsprint mill) and 31 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. ADVANCED LIVING: Court Approves Disclosure Statement ---------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Texas approved the disclosure statement explaining Advanced Living Technologies Inc.'s Chapter 11 plan of reorganization, Bill Rochelle of Bloomberg News reports. Mr. Rochelle relates that under the plan, the maturity of tax-free bonds financing the Debtor's facilities are deferred. Roughly 9% or more of the unsecured claims will be paid on emergence and will possibly be fully paid in time. Headquartered in Austin, Texas, Advanced Living Technologies Inc. owns and operates nursing homes. The company filed for Chapter 11 protection on Jan. 9, 2008 (W.D. Tex. Case No. 08-50040). Patricia Baron Tomasco, Esq., at Brown McCarroll, LLP, represents the Debtor. According to Bill Rochelle of Bloomberg News, the Debtor listed assets of $14.9 million against debt totaling $24.1 million. ADVANCED LIVING: Court Sets Plan Confirmation Hearing on April 30 ----------------------------------------------------------------- The U.S. Bankruptcy Court for the Western District of Texas will convene a hearing to confirm Advanced Living Technologies Inc.'s Chapter 11 plan of reorganization, Bill Rochelle of Bloomberg News reports. Headquartered in Austin, Texas, Advanced Living Technologies Inc. owns and operates nursing homes. The company filed for Chapter 11 protection on Jan. 9, 2008 (W.D. Tex. Case No. 08-50040). Patricia Baron Tomasco, Esq., at Brown McCarroll, LLP, represents the Debtor. According to Bill Rochelle of Bloomberg News, the Debtor listed assets of $14.9 million against debt totaling $24.1 million. AFFILIATED COMPUTER: Communications Dev't. Buyout to Augment Biz ---------------------------------------------------------------- Affiliated Computer Services Inc. acquired Communications Development Inc., provider of outsourced marketing, consulting, and advertising services to the transportation industry. "This acquisition strengthens our position as a leading provider of responsive, reliable, and flexible recruiting, retention, and marketing services and solutions to the transportation industry," Tom Blodgett, group president of ACS Business Process Solutions, said. "In addition to building scale and opening additional opportunities to provide incremental BPO services to our existing clients, Communications Development will enhance our ability to compete for new business from larger carriers." Communication Development's operations will be consolidated with those of ACS Expedited Solutions, providers of TripPak SERVICES(TM), a trucking document delivery, processing, scanning, and storage solution, and ACS MultiMedia Advertising. Together they will supply marketing, advertising, and retention solutions tailored to the unique needs of the long-haul trucking and transportation market. "Bringing these two highly regarded, highly successful companies together improves our ability to help our clients achieve their long-term goals," Trish Groves, president and CEO of Communications Development, said. "Our clients will continue to receive the responsive service they have come to expect, while also gaining efficiencies, advanced technologies, and the support of a reputable Fortune 500 company. We are excited about the possibilities." About Communications Development Inc. Headquartered in Maumelle, Arkansas, Communications Development Inc. is a full-service agency that manages all forms of media placement, including newspaper, magazine, internet, and satellite radio. Founded in 1990, the company's portfolio of services includes public relations, event planning, and creative design. Its many clients include IdleAire Technologies, National Freight Industries, and extensive relationships with Sirius Satellite Radio. All of Communications Development's employees will transition to ACS. About Affiliated Computer Headquartered in Dallas, Texas, Affiliated Computer Services Inc. (NYSE:ACS) -- http://www.acs-inc.com/-- provides business process outsourcing and information technology services to commercial and government clients. The company has two segments based on the clients it serves: commercial and government. The company provides services to a variety of clients including healthcare providers and payers, manufacturers, retailers, wholesale distributors, utilities, entertainment companies, higher education institutions, financial institutions, insurance and transportation companies. * * * As reported in the Troubled Company Reporter on Jan. 30, 2008, Moody's Investors Service confirmed Affiliated Computer Services' Ba2 corporate family rating with a stable rating outlook. This rating confirmation concludes a review for possible downgrade initiated on March 20, 2007. The ratings of ACS remained under review for possible downgrade. AFFIRMATIVE INSURANCE: Tangible Fin'l Cues A.M. Best to Hold Rtngs ------------------------------------------------------------------ A.M. Best Co. has affirmed the financial strength rating of B(Fair) and the issuer credit ratings of "bb+" of Affirmative Insurance Group and two of its members, Affirmative Insurance Company and Insura Property and Casualty Insurance Company. A.M. Best also has assigned an FSR of B(Fair) and ICRs of "bb+" to Affirmative's other members, Affirmative Insurance Company of Michigan and USAgencies Casualty Insurance Company, Inc. Concurrently, A.M. Best has affirmed the ICR of "b" of Affirmative's parent company, Affirmative Insurance Holdings, Inc. The outlook for all ratings is stable. All administrative offices are located in Addison, Texas. The affirmations recognize Affirmative Holdings' elevated tangible financial leverage position following its acquisition of USAgencies LLC. As result, considerable pressure may exist on the insurance subsidiaries to meet debt service requirements and other holding company obligations amid increased competition in its niche focus providing non-standard automobile insurance products. These negative rating factors are partially offset by the group's adequate risk-adjusted capitalization, favorable operating performance and strong non-standard automobile market presence. The USAgencies' acquisition complements Affirmative's expansion efforts by increasing the group's overall presence in Louisiana and Alabama, two states in which it had not previously operated. Despite being ranked among the leading non-standard automobile writers in the United States, in the near term Affirmative will be challenged by lower profit margins driven by pricing decreases, increased loss cost trends and competitive market pressures. The FSR of B(Fair) and ICRs of "bb+" have been affirmed for Affirmative Insurance Group and its these members: -- Affirmative Insurance Company -- Insura Property and Casualty Insurance Company, Inc. An FSR of B(Fair) and ICRs of "bb+" have been assigned to the following members of Affirmative Insurance Group: -- Affirmative Insurance Company of Michigan -- USAgencies Casualty Insurance Company, Inc. An ICR of "b" has been affirmed for Affirmative Insurance Holdings, Inc. ALEX VALLADARES: Case Summary & 17 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: Alex F. Valladares 13300 Southwest 128 Street, Miami, FL 33186 10151 Southwest 68 Street Miami, FL 33173 Bankruptcy Case No.: 08-13450 Chapter 11 Petition Date: March 24, 2008 Court: Southern District of Florida (Miami) Judge: A. Jay Cristol Debtor's Counsel: Robert J. Edwards, Esq. Behar, Gutt and Glazer, P.A. 2999 Northeast 191 Street, 5th Floor Aventura, FL 33180 Tel: (305) 931-3771 redwards@bgglaw.net Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million Debtor's list of its 17 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Heron Plaza $430,882 701 Southwest 27 Avenue, Suite 810 Miami, FL 33135 Empresas Puertorriquensa $415,658 Avenue Ponce de Leon Suite 304, Office 1100 Hato Rey, PR 00918 MJS Rexville, LP $384,836 810 Seventh Avenue 28th Floor New York, NY 10019 Millenium $197,244 HSBC Bank USA, N.A. $175,000 MAO & Assoc. Investment, Inc. $157,119 Mechantil Commercebank $141,445 MJS Ponce LP $131,045 RBC Centura Bank $125,000 Citibank $100,000 California Bank & Trust $95,432 Madison Capital $60,000 Caribbean Cinema $55,000 Bank of America $50,000 MAO Investments, Inc. $32,000 SSSC, S.E. $32,000 Pueblo International, Inc. $30,000 ALKERMES INC: Reduces 18% of Workforce Under Restructuring Plan --------------------------------------------------------------- Alkermes Inc. is restructuring its operations after the termination by Eli Lilly and Company of the AIR(R) Insulin program. With this restructuring, Alkermes is reducing its workforce by approximately 150 employees and closing its AIR commercial manufacturing facility in Chelsea, Massachusetts. The company is taking these actions based on its current expectations of the financial impact of Lilly's termination of the AIR Insulin program. "We are implementing a new operational cost structure to align our expenses with near-term revenues, which we anticipate will be lower than expected due to Lilly's termination of the inhaled insulin program," David Broecker, president and chief executive officer of Alkermes, stated. "The flexibility of our business model allows us to adapt our cost structure while maintaining our ability to develop innovative products of our own." The reduction in workforce represents approximately 18% of the company's total workforce. Employees affected by the restructuring will be eligible for a severance package that includes severance pay, continuation of benefits and outplacement services. "Alkermes' financial foundation remains strong, and we are focused on maintaining this strength moving forward," Mr. Broecker commented. "Lilly's termination of the program forced us to make difficult choices about the optimal size of the organization." "We acknowledge the outstanding contributions that these employees have made, and I wish to express my sincere thanks for their hard work," Mr. Broecker added. Alkermes does not anticipate any expense savings as a result of the restructuring in fiscal 2008, ending March 31, 2008. The company expects to take a restructuring charge in the fourth quarter of fiscal 2008 in the range of $5 million to $10 million associated with the reduction in workforce and facility-related expenses. In addition, the company expects to take an impairment charge of up to $15 million in the fourth quarter of fiscal 2008 related to fixed assets at the Chelsea facility. Alkermes expects cost savings from the restructuring in the range of $15 million to $20 million in fiscal 2009 and will provide more detailed financial expectations for fiscal 2009 in May . As of Dec. 31, 2007, Alkermes reported cash and total investments of $516.6 million. About Alkermes Inc. Headuqartered in Cambridge, Massachusetts, Alkermes Inc (NASDAQ:ALKS) -- http://www.alkermes.com/-- is a biotechnology company that develops products based on drug delivery technologies. The company has two commercial products: Risperdal Consta long-acting injection, is a long-acting atypical antipsychotic medication approved for use in schizophrenia, and marketed worldwide by Janssen-Cilag, a wholly owned division of Johnson & Johnson. Vivitrol, is a once-monthly injectable medication approved for the treatment of alcohol dependence and marketed in the United States primarily by Cephalon Inc. The company's pipeline includes extended-release injectable, pulmonary, and oral products for the treatment of prevalent, chronic diseases such as central nervous system disorders, addiction and diabetes. AMERICAN TECH: Jan. 31 Balance Sheet Upside-Down by $6,005,831 -------------------------------------------------------------- American Technologies Group Inc.'s consolidated balance sheet at Jan. 31, 2008, showed $17,747,188 in total assets and $23,753,019 in total liabilities, resulting in a $6,005,831 total stockholders' deficit. At Jan. 31, 2008, the company's consolidated balance sheet also showed strained liquidity with $11,903,245 in total current assets available to pay $23,753,019 in total current liabilities. The company reported a net loss of $4,808,531 on net sales of $8,728,762 for the second quarter ended Jan. 31, 2008, compared with a net loss of $792,314 on net sales of $8,715,054 in the same period ended Jan. 31, 2007. Revenues for the quarter ended Jan. 31, 2008, were approximately $8,213,864 earned by North Texas and $514,898 earned by Whitco. Revenues for the quarter ended Jan. 31, 2007, were approximately $7,755,146 earned by North Texas and $958,928 earned by Whitco. Interest expense was $302,374 for the quarter ended Jan. 31, 2008, compared with $333,955 for the quarter ending Jan. 31, 2007. Financing expense was $5,121,136 and $923,591 for the quarter ended Jan. 31, 2008, and 2007, respectively. Included in financing expenses was the default expenses due to Laurus. Laurus Default As a result of the company's failure to timely pay its current obligations due to Laurus Master Fund Ltd. under its Secured Convertible Term B Note in the amount of $2,000,000, the company received a default notification on Jan. 31, 2008, from Laurus. The company also received a letter from LV Administrative Services Inc., in its capacity asf administrative and collateral agent for Laurus, demanding the immediate payment of all past due amounts owed to Laurus by Feb. 1, 2008. The amounts demanded totaled $13,580,810 ($10,350,000 in principal amortization, $96,777 in accrued interest, and $3,134,033 in Default Fees). Ongoing Negotiations with Laurus Ongoing negotiations with Laurus include the transfer of all of the stock of the company's subsidiary, Omaha Holdings Inc., in North Texas and Whitco to Laurus' assignees, which would result in the company no longer owning any operating assets, and in exchange for such transfer, Laurus will forgive all outstanding debt obligations and reduce the amount of options and warrants it owns so that Laurus would hold no more than 25% of the company'sfully diluted shares. The company believe that this transaction, if completed, will have a positive effect on the company because it will release the company of debt obligations that its capital resources have not been able to service therefore allowing the company to pursue other lines of business. At the same time, the transactions would allow the company to avoid prolonged legal proceedings and liquidation in bankruptcy. Full-text copies of the company's consolidated financial statements for the quarter ended Jan. 31, 2008, are available for free at http://researcharchives.com/t/s?2994 Going Concern Doubt RBSM LLP, in New York, expressed substantial doubt about American Technologies Group Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended July 31, 2007. The auditing firm reported that the the company has suffered recurring losses and is experiencing difficulty in generating sufficient cash flow to meet its obligations and sustain its operations. About American Technologies Based in Fort Worth, Texas, American Technologies Group Inc. (NASDAQ: ATEG) -- was engaged, prior to 2001, in the development, commercialization and sale of products and systems using patented and proprietary technologies including catalyst technology and water purification. The company largely ceased operations during 2001 and began focusing efforts on restructuring and refinancing. In September 2005, the company entered into various financing transactions and acquired North Texas Steel Company Inc., an AISC Certified structural steel fabrication company based in Fort Worth, Texas. On April 25, 2006, the company purchased certain assets of Whitco Company LP, a business conducting the sale and distribution of steel and aluminum lighting poles. The Whitco assets are held in a separate subsidiary called Whitco Poles Inc. ANTHONY ENRICO: Case Summary & 10 Largest Un4secured Creditors ------------------------------------------------------------- Debtor: Anthony Enrico 628 Broadway Paterson, NJ 07514 Bankruptcy Case No.: 08-15212 Chapter 11 Petition Date: March 25, 2008 Court: District of New Jersey (Newark) Debtor's Counsel: John J. Scura, III, Esq. (jscura@scuramealey.com) Scura, Mealey & Scura, LLP P.O. Box 2031 1599 Hamburg Turnpike Wayne, NJ 07470 Tel: (973) 696-8391 http://www.scuramealey.com/ Total Assets: $2,877,700 Total Debts: $3,508,542 Debtor's 10 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ CIT Financial $898,941 Attn: Reed Smith One Riverfront Plaza Newark, NJ 07102 State Resources $281,500 Attn: Dembo & Saldutti 102 Browning Lane, Building B Cherry Hill, NJ 08003 IRS $193,052 P.O. Box 21126 Philadelphia, PA 19114-0326 Intek Auto Leasing $80,000 Jack Gorman $24,000 Hoboken Federal Credit Union $17,668 Fia CSNA $14,496 North Fork Bank & Trust $9,581 Lefcourt Associates $9,000 Bank Of Amer $6,505 BARCLAYS CAPITAL: S&P Holds Developing Watch on Cl. G's BB+ Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services said its ratings on three classes of Barclays Capital Commercial Real Estate LLC Grantor Trust certificates from Terra LNR I Ltd. remain on CreditWatch with developing implications, where they were originally placed on Nov. 8, 2007. The CreditWatch placements were prompted by Standard & Poor's Nov. 2, 2007, downgrades of Centex Corp. (to 'BBB-' from 'BBB'), Lennar Corp. (to 'BB+' from 'BBB'), and Pulte Homes (to 'BB+' from 'BBB'). Centex Corp. was downgraded again, to 'BB+', on Feb. 19, 2008. The ratings on the Terra LNR I Ltd. certificates depend in part on the ratings assigned to these three companies, which provide two types of financial guarantees that benefit the loan collateral. The Terra LNR I Ltd. trust currently consists of two loans collateralized by mortgaged parcels of land that are being developed into residential home sites; the two projects are Potomac Yards and Stetson Valley. Both loans are scheduled to mature on April 1, 2008, and have two 12-month extensions remaining. The borrowers are required to send a written request for extension at least 60 days and not more than 120 days prior to the first day of the requested extension period. The servicer, TriMont Real Estate Advisors Inc., reports that it has received no such request. Based on S&P's recent discussions with TriMont, the borrowers have indicated that they expect to pay off the loans on or before their initial maturity date. The trust has experienced increased credit support levels due to loan payoffs and principal balance reductions in the remaining two loans. As a result, both positive and negative rating actions are possible. Standard & Poor's is in the process of analyzing the collateral to resolve the CreditWatch placements. If the loans do not pay off as expected, S&P will resolve the CreditWatch placements after completing S&P's analysis of the underlying collateral. S&P's analysis will include a review of the updated appraisals for the remaining projects. Ratings Remaining on CreditWatch Developing Terra LNR I Ltd. Barclays Capital Commercial Real Estate LLC Grantor Trust Certificates series Terra LNR 1 Class Rating ----- ------ E BBB/Watch Dev F BBB-/Watch Dev G BB+/Watch Dev BEAR STEARNS: Launches First Actively Managed Exchange Traded Fund ------------------------------------------------------------------ Bear Stearns Asset Management said that the Bear Stearns Current Yield Fund (AMEX: YYY), the first actively managed exchange traded fund, began trading on the American Stock Exchange on March 25. YYY, or Triple-Y, is composed of a variety of short-term fixed income instruments. The Fund aims to generate higher returns than a money market fund by investing in diversified, high-quality securities, including government securities, municipal securities, bank obligations, corporate and securitized debt. Triple-Y Shares can be purchased and sold intraday, with pricing every 15 seconds on the exchange and portfolio holdings fully disclosed each day via BSAM's website http://www.yyyfund.com. "We are excited to introduce the first actively managed ETF to the market,' said Jeff Lane, Chairman and CEO of Bear Stearns Asset Management. "The Bear Stearns Current Yield Fund is an innovative product that provides investors with unprecedented price discovery and transparency.' Triple-Y is managed by a team of fixed income professionals at BSAM, led by senior portfolio manager Scott Pavlak. Mr. Pavlak has more than 20 years of investment experience and has been managing portfolios with a similar investment process to Triple-Y for over 15 years. Mr. Pavlak added, "Our approach is to maximize income for our investors, while preserving capital. The Fund employs a disciplined investment strategy, adding value through sector allocation, security selection, yield curve positioning, and duration management.' The Current Yield Fund is the first product launched by the Bear Stearns Active ETF Trust. Subject to Bear Stearns shareholder and regulator approval and following the completion of the proposed acquisition between The Bear Stearns Companies Inc., the parent company of Bear Stearns Asset Management, and JPMorgan Chase & Co., the Current Yield Fund would be expected to be re-branded under JPMorgan. The fund looks a lot like an enhanced money market fund, and will appeal to money fund investors, said Gary Gastineau, principal at ETF Consultants LLC, according to Investor's Business Daily. ETF Consultants provides a broad range of consulting services focused on Exchange-Traded Funds. The report noted that the launching of the fund comes at a turbulent time for The Bear Stearns Companies Inc., which admitted it was suffering unexpected losses from subprime mortgage-backed debt. According to the report, when Bear Stearns' problems surfaced, many other ETF firms thought the launch, originally set March 18, would be postponed until Bear's future was more certain. Bear Stearns spokeswoman Jane Slater declined to be specific about why the firm launched the ETF this week, the report stated. It quoted Mr. Gastineau saying the ETF wouldn't necessarily be affected by problems in other parts of the firm. "It's a one-off product," he said. About Bear Stearns Asset Management Inc. Bear Stearns Asset Management Inc. (BSAM) is a wholly-owned subsidiary of The Bear Stearns Companies Inc. (NYSE: BSC). BSAM is a solutions-based provider of asset management and advisory services. Serving institutional and high-net-worth investors around the world, BSAM offers a broad portfolio of investment opportunities. These include carefully-selected strategies in equity, fixed income, hedge funds, and private equity. About Bear Stearn Companies New York City-based The Bear Stearns Companies Inc. (NYSE: BSC) -- http://www.bearstearns.com/-- is a leading financial services firm serving governments, corporations, institutions and individuals worldwide. The company's core business lines include institutional equities, fixed income, investment banking, global clearing services, asset management, and private client services. The company has approximately 14,000 employees worldwide. * * * As reported in the Troubled Company Reporter on Dec. 28, 2007, Fitch Ratings' affirmed its Negative Outlook for The Bear Stearns Companies Inc. following the announcement of the company's fiscal year earnings for 2007. On Nov. 14, 2007, Fitch affirmed Bear Stearns' long-term credit ratings, along with its subsidiaries. Fitch also downgraded the short-term rating to 'F1' from 'F1+', and Individual rating to 'B/C' from 'B'. BEAR STEARNS: Moody's Rates Current Yield Fund At 'Aaa' and 'MR1' ----------------------------------------------------------------- Moody's Investors Service assigned a bond fund credit rating of Aaa and market risk rating of MR1 to the Bear Stearns Current Yield Fund, an actively managed exchange listed ETF managed by Bear Stearns Asset Management Inc. The Aaa and MR1 ratings reflect the expected high maturity adjusted average weighted credit quality of the fund's portfolio together with the fund manager's fundamentally-driven investment process and an effective compliance and risk management structure. he expected very low volatility of the fund's total return performance given the fund's credit quality, liquidity profile and a target average weighted maturity of 180 days contribute to the fund's MR1 market risk rating. The fund, which is the first actively managed exchange traded fund to be launched in the United States, is an investment portfolio of Bear Stearns Active ETF Trust, a Delaware statutory trust formed on March 19, 2007 as an open-end investment company under the Investment Company Act of 1940. Shares of the fund have been listed on the American Stock Exchange under the ticker symbol YYY at an initial issue price of $100. Unlike an index ETF which seeks to achieve, with minimal tracking error, the total return of securities comprising a specified market index, Bear Stearns Asset Management has discretion to select the fund's investments. The objective of the fund is to provide investors a high level of current income as is consistent with the preservation of capital and liquidity. The fund is not a money market fund and maintaining a constant share price is not part of its investment objective. The fund aims to achieve its objective by investing in money market securities and short-term debt. These investments include fixed and floating rate instruments including commercial paper, variable rate demand obligations, asset backed securities, mortgage backed securities, U.S. government agency securities, and repurchase agreements. All fixed rate and floating rate instruments will have either an average life or maximum legal final maturity of three years or less. The fund's credit rating reflects the high credit quality of the portfolio. The weighted average maturity adjusted expected credit loss of the fund will be equal to or lower than that of a 3-year security rated Aaa, in line with Moody's rating guidelines for a fund rated Aaa with similar characteristics. The fund's MR1 market risk rating is driven largely by the duration and liquidity of portfolio securities. Although the maximum expected maturity for portfolio securities is up to three years, the fund will target an effective average weighted maturity of 180 days. Since this fund has no prior operating history, Moody's analyzed the total return history of a similar investment strategy managed by BSAM which has exhibited very low volatility since inception in 1996. The fund will benefit from limited sensitivity to interest rates as it is expected to maintain a very short weighted average maturity. Regarding derivatives, the fund guidelines permit the use of derivatives but it is not the manager's intention to use derivative instruments at this time. The fund will target fee based advisors, retail investors and ETF investors. Individual investors are not able to purchase or redeem shares directly from the fund and will transact all shares in the secondary market. The fund will disclose on its website, each business day prior to the start of trading on the AMEX, the identities and quantities of the portfolio securities held by the fund. The Bank of New York, in its capacity as administrator, provides administrative services to the fund and is also responsible for the daily NAV calculations. Dorchester Capital Management LLC, through the AMEX, will calculate and disseminate the Indicative Intra-Day Value every 15 seconds during trading hours. The IIV is not a real time update of the NAV and is not calculated the same way as the NAV which will be calculated daily at 4:00 pm NY time. Bear Stearns Asset Management, a Bear Stearns subsidiary, will serve as investment advisor for the Bear Stearns Current Yield Fund. On March 16, 2008, JPMorgan Chase & Co. announced that it has agreed to acquire The Bear Stearns Companies Inc. subject to approval by Bear Stearns shareholders. Under the merger agreement between the two companies, JPMorgan is entitled to oversee the business, operations and management of BSAM. Therefore, the fund has entered into a new Investment Advisory agreement with BSAM based on the circumstance which may be viewed as a change of control. Bear Stearns Current Yield and the Bear Stearns Active ETF Trust are not subsidiaries of Bear Stearns or BSAM. Moody's money market and bond fund credit ratings are opinions of the investment quality of shares in mutual funds and similar investment vehicles, which principally invest in short-term and long-term fixed income obligations, respectively. The ratings are not intended to consider the prospective performance of a fund with respect to appreciation, volatility of net asset value, or yield. Moody's fund market risk ratings are an opinion of the relative degree of volatility of a fund's net asset value. In forming an opinion on the fund's future price volatility, Moody's analysts consider risk elements that may have an effect on a fund's net asset value such as: interest rate risk, prepayment and extension risk, liquidity and concentration risks, currency risk, and derivatives risk. The rating is not intended to consider prospective performance of a fund with respect to price appreciation or yield. Funds rated MR1 are judged to have very low sensitivity to changing interest rates and other market conditions. BEAR STEARNS: S&P Assigns AAAf and S1+ Rating on Current Yield ETF ------------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'AAAf' fund credit quality rating and 'S1+' fund volatility rating to the Bear Stearns Current Yield ETF. The Fund is an actively managed exchange-traded fund organized as a U.S.-domiciled, open-ended investment fund and is registered with the SEC. The ratings--the highest assigned to a bond fund-- are based on S&P's comprehensive analysis of the fund's investment holdings and strategies, total return volatility, and management. Bear Stearns Asset Management will be the fund's investment advisor. The Fund's investment objective is to seek as high a level of current income as is consistent with the preservation of capital and liquidity. Shares of the Fund are listed for trading on the American Stock Exchange under the ticker symbol 'YYY'. The Fund seeks to accomplish its objective by investing in short-term debt obligations, including U.S. government securities, bank obligations, corporate debt obligations, mortgage-backed and asset-backed securities, municipal obligations, foreign bank obligations, foreign corporate debt obligations, repurchase agreements, and reverse repurchase agreements. The Fund's investment policy limits short-term investments to issuers rated 'A-1/P1' or higher. Long-term corporate investments are limited to 'A' or better, while structured securities are limited to 'AA-' or higher. As a result of the high credit quality of the portfolio's assets and eligible investments, the Fund carries S&P's highest credit rating of 'AAAf'. The advisor uses a target aggregate portfolio duration of six months with a maximum duration of 12 months. As of Dec. 31, 2007, BSAM managed $30.5 billion in assets. Of that amount, the fixed-income team managed $14.7 billion. The Short-Maturity Fixed-Income Team, a division of BSAM's fixed income group, will manage Bear Stearns Current Yield Fund. The team has historically produced incremental returns over money market funds and benchmark indices. The 'AAAf' rating means the Fund's portfolio holdings should provide extremely strong protection against losses from credit defaults. The 'S1+' volatility rating indicates that the Fund should have extremely low sensitivity to changing market conditions. Funds rated 'S1+' possess an aggregate level of risk that is less than or equal to that of a portfolio comprised of the highest quality fixed-income instruments with an average maturity of one year or less. To maintain current and accurate ratings, S&P monitors the portfolio holdings monthly. BEAR STEARNS: Fitch Junks Ratings on Six Certificate Classes ------------------------------------------------------------ Fitch Ratings has taken rating actions on five Bear Stearns mortgage pass-through certificates. Affirmations total $1.42 billion and downgrades total $15.16 million. In addition, $235.3 million is placed on Rating Watch Negative. Prime Mortgage Trust 2006-1 -- $225.4 million class A rated 'AAA', placed on Rating Watch Negative; -- $6.74 million class B1 rated 'AA', placed on Rating Watch Negative; -- $3.09 million class B2 rated 'A', placed on Rating Watch Negative; -- $1.68 million class B3 downgraded to 'C/DR4' from 'BBB'; -- $1.68 million class B4 downgraded to 'C/DR5' from 'BB'; -- $1.26 million class B5 downgraded to 'C/DR5' from 'B'. Prime Mortgage Trust 2007-1 -- $593.5 million class A affirmed at 'AAA'; -- $10.8 million class B1 affirmed at 'AA'; -- $5.39 million class B2 affirmed at 'A'; -- $3.37 million class B3 affirmed at 'BBB'; -- $3.37 million class B4 downgraded to 'B' from 'BB'; -- $2.36 million class B5 downgraded to 'C/DR5' from 'B'. Prime Mortgage Trust 2007-2 -- $280.2 million class A affirmed at 'AAA'; -- $5.42 million class B1 affirmed at 'AA'; -- $2.96 million class B2 affirmed at 'A'; -- $1.64 million class B3 affirmed at 'BBB'; -- $1.80 million class B4 downgraded to 'B' from 'BB'; -- $1.31 million class B5 downgraded to 'C/DR4' from 'B'. Prime Mortgage Trust 2007-3 Group 1 -- $164.4 million class A affirmed at 'AAA'; -- $3.58 million class B1 affirmed at 'AA'; -- $2.00 million class B2 affirmed at 'A'; -- $0.786 million class B3 affirmed at 'BBB'; -- $1.30 million class B4 downgraded to 'B' from 'BB'; -- $0.350 million class B5 downgraded to 'C/DR4' from 'B'. Prime Mortgage Trust 2007-3 Group 2 -- $111 million class IIA affirmed at 'AAA'; -- $3.54 million class IIB1 affirmed at 'AA'; -- $1.46 million class IIB2 affirmed at 'A'; -- $0.855 million class IIB3 affirmed at 'BBB'; -- $0.610 million class IIB4 affirmed at 'BB'; -- $0.427 million class IIB5 affirmed at 'B'. BFWEST LLC: Files for Chapter 11 Protection in Southern Florida --------------------------------------------------------------- BFWest LLC filed for Chapter 11 protection with the U.S. Bankruptcy Court for the Southern District of Florida, Kate Howell of the South Florida Business Journal reports. According to the Journal, BFWest is an affiliate of mezzanine lender BuilderFinancial Corp. BFWest's sister companies Builder Funding and BFSPE LLC make the loans, while the Debtor keeps track of acquisition and development loans. The company owes Builder Funding $58.1 million of unsecured debt, and BFSPE LLC $32.5 million, relates the Journal. About Builderfinancial Based in Fort Lauderdale, Florida, BuilderFinancial Corp. -- http://www.builderfinancial.com/-- is a privately held specialty finance company that facilitates the financing of residential real estate transactions by providing mezzanine financing to builders. The company also establishes relationships with commercial banks, providing them with a simple credit enhancement solution that brings speed and efficiency to their construction lending process. BLACK GOLD: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: Black Gold Equipment & Leasing LLC 590 East Street George Boulevard St. George, UT 84770 Bankruptcy Case No.: 08-21673 Chapter 11 Petition Date: March 20, 2008 Court: District of Utah (Salt Lake City) Judge: William T. Thurman Debtor's Counsel: Troy J. Aramburu, Esq. Jones Waldo Holbrook & McDonough PC 170 South Main Street Suite 1500 Salt Lake City, UT 84101 Tel: (801) 521-3200 Fax: (801) 328-0537 taramburu@joneswaldo.com Estimated Assets: $1,000,001 to $10 million Estimated Debts: $1,000,001 to $10 million Debtor's list of its 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ TG Power LLC contract dispute $75,000 1053 Idaho Street Elko, NV 89801 Bar S Inc. 3330 I-80 Frontage Road trade debt $72,964 Cheyenne, WY 82009 American Express business credit $53,583 P.O. Box 650448 card debt Dallas, TX 75265-0448 R&W Rental trade debt $33,419 Jenkins Ronnow Jensen legal fees $24,000 & Bayles, LLP Mendoza Welding trade debt $21,036 Leach’s trade debt $17,430 D.K. Bundy Excavating trade debt $16,200 Badlands Fab. & Mach., Inc. trade debt $15,376 C.G. Power Rentals trade debt $13,419 Nielson Construction Inc. trade debt $11,102 Nevada Geothermal Power Inc. trade debt $10,000 Haycock Petroleum Co. trade debt $8,559 Transportation Alliance Bank Capital One Bank trade debt $8,405 Allen Sales & Service, Inc. trade debt $8,053 Black Jack Inspection trade debt $7,412 WWL Industries Inc. trade debt $6,518 Interstate Steel & Supply trade debt $6,390 Pero Electrical trade debt $6,307 Kyle Cox trade debt $6,240 CA INC: Appoints Michael Christenson as President ------------------------------------------------- CA, Inc. has named Michael J. Christenson as its president. He continues as the company's chief operating officer and reports to CA Chief Executive Officer John Swainson. "Since being named as chief operating officer nearly two years ago, Mike has overhauled CA's sales operations and established a more dynamic and efficient organization, focusing on establishing strong partnerships with our current and new customers to drive revenue growth," said Swainson. "In addition, Mike has led CA's efforts to significantly improve its technical support, services, strategic alliances and training capabilities." As president and chief operating officer, Christenson oversees CA's direct and indirect sales, CA Services, technical support, business development and strategic alliances. Christenson joined CA in February 2005 as executive vice president for Strategy and Business Development. In that role, he led CA's acquisition program and its integration team in the successful acquisition and integration of 15 companies with a total investment of $1.8 billion. These acquisitions, which included such companies as Concord Communications, Niku, and Wily Technology, significantly strengthened CA's solution portfolio and made CA a stronger technology partner for its customers. He was named CA’s COO in April 2006. Following a 23-year career as an investment banker, Christenson retired from Citigroup Global Markets, Inc. in 2004. Christenson earned a Bachelor of Arts degree in chemistry from Rutgers University and a Master of Business Administration degree in finance from The New York University Graduate School of Business. About CA Inc. Based in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management ofenterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries. The company has operations in Brazil, Indonesia, Luxembourg, Philippines and Thailand. * * * As reported in the Troubled Company Reporter-Latin America on Dec. 19, 2007, Fitch Ratings affirmed these ratings of CA, Inc.: -- Issuer Default Rating at 'BB+'; -- Senior unsecured revolving credit facility at 'BB+'; -- Senior unsecured debt at 'BB+'. Additionally, Fitch revised the Rating Outlook on CA Inc. to Stable from Negative. Fitch's actions affect approximately US$2.8 billion of total debt, including the company's US$1.0 billion revolving credit facility. CANADIAN TRUSTS: ABCP Trusts' CCAA Restructuring Database --------------------------------------------------------- The Series of Affected Asset Backed Commercial Paper that are subject to the Restructuring Plan proposed by the Pan-Canadian Committee, the relevant ABCP Sponsor, the relevant Issuer Trustee and the total principal amount of Affected ABCP for each Series are: Principal Affected ABCP Issuer Trustee ABCP Sponsor Amount ------------- -------------- ------------ --------- Apollo Trust Series A 6932819 Canada Inc. Coventree CA$37,195,732 Series E 6932819 Canada Inc. Coventree CA$171,400,152 US$407,885 Series H 6932819 Canada Inc. Coventree CA$10,000,000 Apsley Trust Series A Metcalfe & Quanto CA$2,412,422,034 Mansfield Alternative Investments V Corp. Aria Trust Series A 6932819 Canada Inc. Newshore CA$817,455,409 Series E 6932819 Canada Inc. Newshore CA$681,625,250 Aurora Trust Series A 6932819 Canada Inc. Coventree CA$1,538,227,373 Series B 6932819 Canada Inc. Coventree CA$5,436,700 Series C 6932819 Canada Inc. Coventree CA$9,032,797 Series E 6932819 Canada Inc. Coventree CA$878,851,458 Series F 6932819 Canada Inc. Coventree CA$270,000,000 Comet Trust Series A 6932819 Canada Inc. Coventree CA$1,148,879,952 US$22,351,867 Series E 6932819 Canada Inc. Coventree CA$580,741,188 US$44,811,848 Series F 6932819 Canada Inc. Coventree CA$85,000,000 Encore Trust Series A 6932819 Canada Inc. Newshore CA$603,278,708 Series E 6932819 Canada Inc. Newshore CA$846,436,585 Gemini Trust Series A 6932819 Canada Inc. Coventree CA$526,039,551 Series E 6932819 Canada Inc. Coventree CA$697,897,823 Series F 6932819 Canada Inc. Coventree CA$235,000,000 Ironstone Trust Series A Metcalfe & NBF CA$498,404,991 Mansfield Alternative Investments XII Corp. Series B Metcalfe & NBF US$265,827,959 Mansfield Alternative Investments XII Corp. MMAI-I Trust Series A Metcalfe & NBF CA$1,402,880,091 Mansfield Alternative Investments XI Corp. Newshore Canadian Trust Series A 4446372 Canada Inc. Newshore CA$200,000,000 Series 2001-1 4446372 Canada Inc. Newshore CA$212,685,191 Opus Trust Series A 6932819 Canada Inc. Newshore CA$958,482,332 Series E 6932819 Canada Inc. Newshore CA$735,637,522 Planet Trust Series A 6932819 Canada Inc. Coventree CA$808,163,389 US$81,691,381 Series E 6932819 Canada Inc. Coventree CA$636,252,487 US$46,561,048 Series F 6932819 Canada Inc. Coventree CA$230,000,000 Series L8 6932819 Canada Inc. Coventree CA$13,245,810 Rocket Trust Series A 6932819 Canada Inc. Coventree CA$923,992,181 US$153,046,541 Series B 6932819 Canada Inc. Coventree CA$112,000,000 Series D 6932819 Canada Inc. Coventree CA$23,190,501 Series E 6932819 Canada Inc. Coventree CA$2,063,700,485 Series F 6932819 Canada Inc. Coventree CA$90,000,000 Selkirk Funding Trust Series A 4446372 Canada Inc. Securitus CA$150,613,274 Silverstone Trust Series A Metcalfe & NBF CA$2,013,169,199 Mansfield Alternative Investments II Corp. Slate Trust Series A-1 6932819 Canada Inc. Coventree CA$32,675,776 US$93,121,416 Series E-1 6932819 Canada Inc. Coventree CA$363,732,198 US$72,341,043 Structured Asset Trust Series A-1 4446372 Canada Inc. Nereus CA$653,519,000 Series E-1 4446372 Canada Inc. Nereus CA$718,205,000 Series L-1 4446372 Canada Inc. Nereus CA$43,203,647 Structured Investment Trust III Series A 4446372 Canada Inc. Nereus CA$1,708,614,000 Series E 4446372 Canada Inc. Nereus CA$1,077,821,000 Symphony Trust Series A 6932819 Canada Inc. Newshore CA$1,084,524,245 Series E 6932819 Canada Inc. Newshore CA$836,273,903 Whitehall Trust Series A Metcalfe & Quanto CA$2,508,805,963 Mansfield Alternative Investments III Corp. (Canadian ABCP Trusts Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * As reported by the Troubled Company Reporter on March 18, 2008, Justice Colin Campbell of the Ontario Superior Court of Justice granted an application filed on March 17 by The Pan-Canadian Investors Committee for Third-Party Structured ABCP under the provisions of the Companies' Creditors Arrangement Act. The Committee asked the Court to call a meeting of ABCP noteholders to vote on a plan to restructure 20 trusts affecting $32 billion of notes. The trusts were covered by the Montreal Accord, an agreement entered by international banks and institutional investors on Aug. 16, 2007 to work out a solution for the ABCP crisis in Canada. Justice Campbell appointed Ernst & Young, Inc., as the Applicants' monitor, on March 17, 2008. CANADIAN TRUSTS: Pan-Canadian Committee Files Restructuring Plan ---------------------------------------------------------------- The Pan-Canadian Investors Committee for Third Party Structured Asset-Backed Commercial Paper delivered to the Ontario Superior Court of Justice on March 17, 2008, a plan of compromise and arrangement for 20 Canadian ABCPs. The Committee subsequently sent out on March 20, 2008, an information statement to ABCP noteholders to appraise them of the proposed ABCP restructuring plan. "These documents provide full disclosure on the plan and the nature of the assets supporting each series of the trusts subject to the plan. They will enable noteholders to make an informed decision on the plan," Purdy Crawford, chairman of the Pan-Canadian Committee said in a press release. The Plan provides for the comprehensive restructuring of all of the outstanding third-party debt obligations, including asset- backed commercial paper, floating rate notes, liquidity notes and subordinated notes with respect to 20 ABCP trust conduits, Mr. Crawford relates. The Conduits are Apollo Trust, Apsley Trust, Aria Trust, Aurora Trust, Comet Trust, Encore Trust, Gemini Trust, Ironstone Trust, MMAI-1 Trust, Newshore Canadian Trust, Opus Trust, Planet Trust, Rocket Trust, Selkirk Funding Trust, Silverstone Trust, Slate Trust, Structured Asset Trust, Structured Investment Trust III, Symphony Trust and Whitehall Trust. The salient terms key of the Plan are: (1) The notes representing the Affected ABCP will be exchanged for longer-term floating rate notes that are designed to match the maturity of the underlying pool of assets. The anticipated maturity and repayment of the Plan Notes is generally expected to occur within nine year although the restructured notes will have a legal final maturity that is significantly longer than that. The new Class A-1 and Class A-2 notes are expected to receive a rating of AA from DBRS. (2) Solutions are being provided for Affected ABCP based on the type and quality of underlying assets. Where the ABCP is backed by assets that the Investors Committee considers to be "ineligible" for pooling, these assets will be separated from higher quality assets. Where the ABCP is backed by assets that are exclusively "traditional," these assets will also be segregated and Noteholders will receive longer-term notes tracking the returns on those assets. The allocation of assets into two separate Master Asset Vehicles or MAVs affords eligible Noteholders the opportunity to elect whether or not they wish to "self- insure" with regard to the posting of additional collateral in the event that margin calls are made in the future with respect to certain underlying assets held in MAV1 or MAV2. (3) Noteholders that satisfy the MAV1 Eligibility Requirements may elect to participate in MAV1, which includes a "self- funded" facility in which Noteholders will provide specified amounts of committed funding for margin call requirements. Noteholders who either do not satisfy the MAV1 Eligibility Requirements or elect not to participate in MAV1 will participate in MAV2 and receive margin call support from a group of third-party lenders and may, if eligible, also participate in such margin funding facility up to an amount of less than their pro rata share. The returns on the Plan Notes issued by MAV1 are expected to be higher than those issued by MAV2 due to the costs associated with the third-party margin funding facility required for MAV2. Holders in MAV1 will be subject to certain restrictions on the transfer of their Notes. On the other hand, Noteholders participating in MAV2 may, subject to applicable securities laws and market conditions, sell their new notes when they choose. (4) Certain parties will receive comprehensive and fully effective releases as a condition to their participation and completion of the restructuring and the implementation of the Plan. (5) Transparency in the market is being created through the release of information contained in the Information Statement and JPMorgan's Report on Restructuring as well as through access to additional information regarding the assets underlying the Affected ABCP that will be made available through a dedicated website to Noteholders who agree to keep those information confidential. Following the restructuring BlackRock (Institutional) Canada, Ltd., which will be the Administrator and Asset Manager of each of the MAVs, will also publish periodic reports regarding the Managed Assets, which reports are expected to facilitate the development of a market for the MAV2 notes. "In my view, the proposed restructuring gives [an ABCP investor], and all other holders of the Affected ABCP, an opportunity to maximize the value of your investment," Mr. Crawford noted in a March 20, 2008, letter addressed to ABCP Noteholders. The restructuring will allow those investors who hold restructured notes to maturity of the underlying assets to potentially maximize the return of their principal investment and will also reduce the risk that external events affecting credit markets in general will have a significant adverse impact on the restructured notes, Mr. Crawford maintains. If the Plan is not implemented, Mr. Crawford points out, likely alternatives include a forced sale or liquidation of some or all of the ABCP Conduits as well as the incurrence of substantial mark-to-market termination payments on synthetic assets which could lead to substantial losses for Noteholders. Mr. Crawford adds that the proposed Plan has been approved and is being supported by the institutions represented by members of the Pan-Canadian Committee, certain of the dealer bank asset providers and the ABCP sponsors. These supporting parties, all of which have agreed to vote in favor of the Plan, are holders of approximately 66.25% of the outstanding Affected ABCP. A full-text copy of the Information Statement and the related ABCP Restructuring Plan is available for free at: http://ResearchArchives.com/t/s?2988 Plan Voting Noteholders will be asked to approve the Plan at a meeting to be held at 10:00 a.m. on April 25, 2008 at The Fairmont Royal York, 100 Front Street West, Toronto, in Ontario, Canada. To be eligible to vote at the Meeting, a Noteholder as of the record date of February 29, 2008 must properly complete and deliver a voter identification form or a voter confirmation form to Ernst & Young Inc, the Court-appointed Monitor, no later than April 22, 2008. The Pan-Canadian Committee, subject to noteholder and final court approval, anticipates implementing the Plan on May 23, 2008. Monitor's Recommendation The Monitor tells Mr. Justice Campbell that the Affected ABCP situation giving rise to the Plan is virtually unprecedented in Canada in its size, complexity and scope. "The prospect of a liquidation and consequential material diminution in the value of Affected ABCP would have a significant detrimental effect on a broad range of organizations and individuals," the Monitor notes. Accordingly, the Monitor believes that the proposed Plan is a preferable alternative to liquidation of the assets in the Trust Conduits, which would potentially result in significantly lower recoveries for the Noteholders generally. "[I]t appears that any non-liquidation alternatives to the Plan bear greater near-term risk to the Noteholder realizations than does the Plan." Mr. Crawford's indication that the Plan offers the best available alternative for Noteholders is reasonable, the Monitor says. The Plan and Information Statement contemplate the resolution of negotiations with various key participants along anticipated parameters on both legal and economic issues, the Monitor acknowledges. Accordingly, the Monitor recommends that the Noteholders approve the Plan. (Canadian ABCP Trusts Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * Apollo Trust, Apsley Trust, Aria Trust, Aurora Trust, Comet Trust, Devonshire Trust, Encore Trust, Gemini Trust, Ironstone Trust, MMAI-1 Trust, Newshore Canadian Trust, Opus Trust, Planet Trust, Rocket Trust, Selkirk Funding Trust, Silverstone Trust, Slate Trust, Structured Asset Trust, Structured Investment Trust III, Symphony Trust, Whitehall Trust are entities based in Canada that issue securities called third-party structured finance asset- backed commercial paper. As of September 14, 2007, these 21 Canadian Trusts had approximately $33 billion of outstanding ABCP. As reported by the Troubled Company Reporter on March 18, 2008, Justice Colin Campbell of the Ontario Superior Court of Justice granted an application filed on March 17 by The Pan-Canadian Investors Committee for Third-Party Structured ABCP under the provisions of the Companies' Creditors Arrangement Act. The Committee asked the Court to call a meeting of ABCP noteholders to vote on a plan to restructure 20 trusts affecting $32 billion of notes. The trusts were covered by the Montreal Accord, an agreement entered by international banks and institutional investors on Aug. 16, 2007 to work out a solution for the ABCP crisis in Canada. Justice Campbell appointed Ernst & Young, Inc., as the Applicants' monitor, on March 17, 2008. CANADIAN TRUSTS: ABCP Noteholders to Hold Meeting on April 25 ------------------------------------------------------------- The Ontario Superior Court of Justice has authorized noteholders of 20 Canadian asset-backed commercial papers to hold a meeting on April 25, 2008, at 10:00 a.m., to consider and vote on the Restructuring Resolution concerning the Plan of Compromise and Arrangement proposed by the Pan-Canadian Investors Committee for Third Party Structured Asset-Backed Commercial Paper. The Meeting will be held at The Fairmont Royal York, 100 Front Street West in Toronto, Ontario, Canada. It will be held and conducted in accordance with the provisions of the Meeting Order. An officer of the Court-appointed Monitor, Ernst & Young Inc., will act as the chair of the Meeting and decide all matters relating to the conduct of the Meeting. The only Persons entitled to attend the Meeting are Noteholders of the Affected ABCP as of the February 29, 2008 Record Date and their proxy holders, representatives of the CCAA Applicants, the ABCP Sponsors and the CCAA Parties, the Monitor and the Persons appointed to act as scrutineers at the Meeting, and their legal counsel and advisors. Any other Person may be admitted on invitation of the Applicants or the chair of the Meeting. A vote by written ballot will be taken on the approval of the Restructuring Resolution. On a poll on any matter that may come before the Meeting, each Noteholder will be entitled to one vote for the aggregate principal amount of its outstanding Affected ABCP. The Restructuring Resolution must be approved by Noteholders: (i) constituting a majority in number of the Noteholders who are present and at the Meeting, either in person or by proxy; and (ii) representing not less than 66 2/3% of the aggregate principal amount of Affected ABCP of the Noteholders voting either, in person or by proxy, at the Meeting. If the Meeting is adjourned by the chair in its sole discretion or is postponed or otherwise rescheduled, the Meeting will be adjourned, postponed or otherwise rescheduled by the chair to a date, time and place as may be decided by the chair. The Applicants will not be required to deliver any notice of adjournment of the Meeting other than announcing the adjournment at the Meeting. (Canadian ABCP Trusts Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). * * * Apollo Trust, Apsley Trust, Aria Trust, Aurora Trust, Comet Trust, Devonshire Trust, Encore Trust, Gemini Trust, Ironstone Trust, MMAI-1 Trust, Newshore Canadian Trust, Opus Trust, Planet Trust, Rocket Trust, Selkirk Funding Trust, Silverstone Trust, Slate Trust, Structured Asset Trust, Structured Investment Trust III, Symphony Trust, Whitehall Trust are entities based in Canada that issue securities called third-party structured finance asset- backed commercial paper. As of September 14, 2007, these 21 Canadian Trusts had approximately $33 billion of outstanding ABCP. As reported by the Troubled Company Reporter on March 18, 2008, Justice Colin Campbell of the Ontario Superior Court of Justice granted an application filed on March 17 by The Pan-Canadian Investors Committee for Third-Party Structured ABCP under the provisions of the Companies' Creditors Arrangement Act. The Committee asked the Court to call a meeting of ABCP noteholders to vote on a plan to restructure 20 trusts affecting $32 billion of notes. The trusts were covered by the Montreal Accord, an agreement entered by international banks and institutional investors on Aug. 16, 2007 to work out a solution for the ABCP crisis in Canada. Justice Campbell appointed Ernst & Young, Inc., as the Applicants' monitor, on March 17, 2008. CANADIAN TRUSTS: Ernst & Young's First Report on ABCP Trusts ------------------------------------------------------------ Ernst & Young, Inc. -- having consented to act as monitor of the proceedings commenced by the Pan-Canadian Investors Committee for Third-Party Structured Asset-Backed Commercial Paper under Canada's Companies' Creditors Arrangement Act -- delivered its first monitor report on March 17, 2008, to the Ontario Superior Court of Justice to apprise the Honorable Justice Colin Campbell of among other things, the Applicants' operations immediately prior to, and during the CCAA Petition Date. The Monitor told Mr. Justice Campbell that this is the first time it has performed a role as "monitor". The Monitor stated that it was not involved in the consideration of restructuring alternatives by the Pan-Canadian Committee, nor did it participate in the negotiation of a Plan of Compromise and Arrangement with various stakeholders. In preparing its Report, the Monitor relied on information provided by various parties, including certain conduit sponsors, issuing and paying agents for the Conduits or I&P Agents, CDS Clearing and Depository Services Inc., the Applicants and their advisors and noteholders. The Monitor stated that it has not audited, reviewed, or otherwise verified the information provided to it but has taken steps to do so. The Conduits are Apollo Trust, Apsley Trust, Aria Trust, Aurora Trust, Comet Trust, Encore Trust, Gemini Trust, Ironstone Trust, MMAI-1 Trust, Newshore Canadian Trust, Opus Trust, Planet Trust, Rocket Trust, Selkirk Funding Trust, Silverstone Trust, Slate Trust, Structured Asset Trust, Structured Investment Trust III, Symphony Trust and Whitehall Trust. The ABCP Market The Monitor explained that ABCP is a short-term debt instrument backed by a variety of financial assets or other asset interests. A conduit is a special-purpose entity, typically in the form of a trust, that is structured to be legally separate from its sponsor. A conduit acquires assets through various types of transactions including "synthetic transactions". ABCP is generally limited to a 365-day term, with most commercial paper having a term of 30, 60 or 90 days. ABCP is issued on either a discount or interest- bearing basis. According to the Monitor, most of the affected ABCP were issued as discount notes. ABCP programs, the Monitor expounded, are often used to fund the acquisition of long-term assets like mortgages, auto loans, cash collateralized debt obligations and credit default swaps. Even when funding short-term assets like trade receivables, ABCP issuers face the inherent timing mismatch between cash generated by the underlying assets and the cash needed to repay maturing ABCP, the Monitor stated. Typically, the Monitor disclosed, ABCP are issued by series and sometimes by classes in a series. The most common notes with respect to Affected ABCP are Series A Notes, Series E Notes and Floating Rate Notes. According to the Monitor, maturing ABCP is typically repaid with the proceeds of newly issued ABCP, a process commonly referred to as "rolling." ABCP has historically been a highly rated commercial obligation with a long history of market acceptance, the Monitor related. Thus, market participants held the view that, absent a "general market disruption", ABCP would be readily saleable without the need for extraordinary funding or protection measures. However, the Monitor clarified, to protect investors in case of a market disruption event, Series A and Series E Notes are structured with certain liquidity characteristics. Series A Notes benefit from credit facilities with liquidity providers or from other financial products that have the effect of making sufficient funds available to the Conduits to repay these notes at maturity. These facilities are usually in amounts that correspond to the amount of the ABCP outstanding. Series E Notes do not benefit from liquidity protection, the Monitor pointed out. These Notes are extendible notes which are a subset of ABCP that provide for the automatic extension of the notes for a period that, when combined with the initial term of the ABCP, can be up to 364 days. The Monitor informed Mr. Justice Campbell that the assets held in the Conduits fall into two categories: (a) Traditional securitized assets, and (b) Collateralized debt obligations. CDOs are a type of asset-backed security and structured credit product, which are not specific to one type of debt but often involve non-mortgage loans or bonds. In a purchase of Traditional Assets, the Monitor explained, funds in the Conduit are used to acquire an interest in a pool of cash flow producing assets like credit card receivables, equipment loans and leases, auto loans and leases, residential and commercial mortgages, trade receivables, corporate loans, insurance-backed loadns and personal lines of credit. The Monitor said that fund the acquisition of the collateral assets of a CDO, multiple tranches of securities are issued by the CDO offering investors various maturity and credit risk characteristics. With a CDO, a portfolio of below-investment- grade debt can be repackaged into tranches, some of which will receive investment grade ratings. In the current market, CDOs are typically structured in two ways: (1) Cash CDO, which involves the purchase of assets like loans, corporate bonds and ABS. Ownership of the assets is transferred to a special purpose vehicle issuing CDO tranches. (2) Synthetic CDO, which does not involve the purchase of cash assets but gains credit exposure to a portfolio of fixed income assets -- without owning those assets -- through the use of credit default swaps. Under a credit default swap, the credit protection seller -- in the case of ABCP, this would be the Conduit -- receives periodic cash payments in exchange for agreeing to assume the risk of loss on a specific asset or group of assets -- often a portfolio of corporate bonds or other reference entities -- in the event that the assets experience a default or other credit event. This protection would be guaranteed by posting collateral, usually assets with little or no default or credit risk. The Monitor stated that in a Synthetic CDO, credit exposure could be fully funded or could be leveraged, meaning that the collateral posted by the credit protection seller is less than the amount of the credit exposure assumed. In a leveraged super senior transaction, the "super senior" tranche would be partially funded while the subordinated tranches would be fully funded. Because the posted collateral in an LSS transaction is less than the credit risk assumed by the credit protection seller, the counterparty to the LSS credit default swap assumes a "gap risk". To manage this risk, the transaction will include events of default called "triggers". In the Conduits, the most common trigger is a mark to market trigger, in which the trigger is reached when the market value of the reference folio declines to a pre-specified level. If the trigger is reached, the credit protection seller is required to increase the amount of collateral posted. If the credit protection seller is unable or unwilling to provide additional collateral, the trade is unwound and the counterparty can utilize the posted collateral to satisfy any penalty payable on termination. The Monitor reported that at January 31, 2008, across the 20 Conduits, there is a total notional amount of roughly CA$32,000,00