T R O U B L E D C O M P A N Y R E P O R T E R Friday, March 28, 2008, Vol. 12, No. 74 Headlines ABCDS 2006-1: Weakened Credit Quality Cues Moody's Rating Cuts ABITIBIBOWATER INC: PwC Expresses Substantial Doubt on Subsidiary ABITIBIBOWATER: Affiliate Prices $413MM Offering of Senior Notes ABITIBIBOWATER INC: S&P Put 'B+' Rating on Unit's $450MM Facility ACA AQUARIUS: Six Note Classes Obtain Moody's Ratings Downgrades ACCREDITED HOME: Moody's Chips Two Ratings on Delinquent Loans ACE SECURITIES: Moody's Cuts Ratings on 11 Tranches From Two Deals ADVANCED MEDICAL: Had $192MM Net Loss for Year Ended Dec. 31, 2007 ALTIUS IV: Moody's Cuts Ratings on Nine Classes of Notes AMERICAN HOME: Asks Court to Approve Deal with D.C. ISB Department AMERICAN HOME: Files Omnibus Objection to 80 Claims AMERICAN HOME: Court Extends Removal Period to June 2 AMERICAN HOME: Can Hire CB Richard Ellis as Real Estate Broker AMERICAN LAFRANCE: Court Approves Disclosure Statement AMERICAN LAFRANCE: Committee Allowed to Hire FTI as Advisor AMERICAN LAFRANCE: Committee May Hire Pepper Hamilton as Counsel AMERICAN IRONHORSE: Consents to Chapter 11 Bankruptcy Filing ANTS SOFTWARE: Burr Pilger Expresses Going Concern Doubt APRIA HEALTHCARE: Moody's Withdraws Ratings on Business Reasons ASAT HOLDINGS: Nasdaq Terminates Trading Securities on March 27 ATARI INC: Non-Compliance with Nasdaq Rules Cues Stocks Delisting AVANTI FUNDING: Eroding Credit Quality Cues Moody's Rating Cuts BARRAMUNDI CDO: Moody's Downgrades Ratings on Six Classes of Notes BEAR STEARNS: Wants Court to Bar Ex-Employees from Taking Clients BEAR STEARNS: Moody's Cuts Ratings on 63 Tranches From 17 Deals BEAZER HOMES: Moody's Downgrades Ratings to 'B2' From 'B1' BELDEN INC: Mulls Closure of Manchester Plant by September 2008 BFC AJAX: Moody's Cuts Five Note Ratings on Poor Credit Quality BFWEST LLC: Case Summary & Three Largest Unsecured Creditors BLUE EDGE: Moody's Downgrades Ratings on 11 Classes of 2050 Notes BVGG LLC: Involuntary Chapter 11 Case Summary C-BASS CBO XVI: Moody's Cuts Ratings on Four Classes of 2041 Notes C-BASS CBO XIX: Moody's Reviews Ratings on Poor Credit Quality CANAL CAPITAL: Posts $8,194 Net Loss in 1st Quarter Ended Jan. 31 CARMIKE CINEMAS: S&P Keeps 'B-' Issue and Corporate Credit Rating CBA COMMERCIAL: Four Classes of Bonds Acquire Fitch's Rating Cuts CHARLES FORT: Seven Classes of Notes Get Moody's Rating Downgrades CHARLES RIVER LABS: Earns $154 Million in Fiscal Year 2007 CHARTERHOUSE BOISE: Disclosure Statement Lacks Info, Creditors Say CHARYS HOLDING: Wants Court to Set May 12 as Claims Bar Date CHRYSLER LLC: Clarifies Misleading Coverage of Discount Programs CLEAR CHANNEL: Might Face Ad Sector Woes Alone, Report Says CLEAR CHANNEL: Fitch to Keep 'BB-' Ratings if Sale is Canceled CLEAR CHANNEL: S&P Maintains Negative Watch Posting on 'B+' Rating CNET NETWORKS: Pares 10% U.S. Positions Under Realignment Plan COLDWATER CDO: Moody's Cuts Ratings on Five Classes of 2046 Notes COSTA BELLA: Nine Classes of Notes Get Moody's Ratings Downgrades CPS CAYMAN: S&P Gives 'BB' Initial Rating to Class C 2014 Notes CREDIT SUISSE: Moody's Takes Various Rating Actions on 16 Classes CROWN PLAZA: Files Schedules of Assets and Liabilities DAVIS SQUARE: Declining Credit Quality Spurs Moody's Rating Cuts DELPHI CORP: Moody's Lifts Rating on New Second Lien Loan to 'B2' DELTA FINANCIAL: To Delay Filing of 2007 Annual Report DELTA FINANCIAL: Court Okays Standstill Deal with Former Workers DELTA FINANCIAL: Committee Allowed to Hire Landis Rath as Counsel DELTA FINANCIAL: Committee Allowed to Hire Weiser as Advisor DISH NETWORK: Earns $756 Mil. Net Income for Year Ended Dec. 2007 DUNMORE HOMES: Panel Moves for Rule 2004 Exam on Sidney Dunmore EDUCATION RESOURCES: Moody's Cuts Rating to B2 on Liquidity Issues EMISPHERE TECH: PricewaterhouseCoopers Raises Going Concern Doubt ENCYSIVE PHARMACEUTICALS: KPMG LLP Expresses Going Concern Doubt ENERGYTEC INC: Issues Note in Settlement of "Oil is Fab" Complaint EQUA-CHLOR: Files Schedules of Assets and Liabilities FINANCIAL GUARANTY: Fitch Slashes Long-term Issuer Rating to 'BB' FINISAR CORP: Had $10.6 Mil. Net Loss for Qtr. Ended Jan. 27, 2008 FIRST MAGNUS: May Employ Grant Lyon as Restructuring Consultant FIRST MAGNUS: May Employ Snell & Wilmer as Bankruptcy Counsel FORD MOTOR: Jaguar and Land Rover Sale Won't Affect S&P's Ratings FORD MOTOR: February 2008 Saw Focus Sales Up By 36 Percent FORTIUS II FUNDING: Seven 2042 Notes Obtain Moody's Rating Cuts FURLONG SYNTHETIC: Moody's Cuts Rating on Weakened Credit Quality GAP INC: Declares Quarterly Cash Dividend of $0.085 Per Share GELALDINE BUDWICK: Case Summary & Largest Unsecured Creditor GENCORP INC: February 29 Balance Sheet Upside-Down by $35 Million GENER8XION ENT: Jan. 31 Balance Sheet Upside-Down by $988,195 GENTA INC: Deloitte & Touche Expresses Going Concern Doubt GLENSHAW GLASS: Changes Name to Kelman Bottles GLOBAL PAYMENT: Inks Securities Purchase Pacts with 3 Investors GOLD CENTER: Gets OK to Hire Landrau Rivera as Counsel GOLD CENTER: Sec. 341 Meeting Rescheduled to April 11 GRAHAM HOUSING: Moody's Holds Ba3 Rating on Housing Revenue Bonds GRAND AVENUE: Moody's Cuts Ratings on Seven Classes of 2052 Notes GSC CAPITAL: High Delinquencies Cues Moody's 11 Rating Downgrades HAMILTON GARDENS: Moody's Cuts Ratings on Five 2046 Note Classes HARMONY HOLDINGS: U.S. Trustee Appoints 3-Member Committee HARMONY HOLDINGS: Gets OK to Employ Barton Law Firm as Counsel HUGHES NETWORK: Net Income Rose Up 161% to $50 Million in 2007 INDEPENDENCE V CDO: Moody's Cuts Ratings on Three Classes of Notes INFE HUMAN: Management Says Auditors Issued Going Concern Opinion INSMED INC: Ernst & Young Expresses Going Concern Doubt INVERNESS MEDICAL: Closes Three U.S. Facilities and Cuts Jobs ISCHUS MEZZANINE: Moody's Cuts Ratings on Seven Classes of Notes INSIGHT COMMUNICATIONS: Fitch Withdraws 'B+' Issuer Default Rating ISONICS CORP: Jan. 31 Balance Sheet Upside-Down by $4,174,000 IXION PLC: Deteriorating Credit Quality Cues Moody's Rating Cuts IXIS ABS: Six Classes of Notes Get Moody's Ratings Downgrades JAMES RAMSEY: Case Summary & Three Largest Unsecured Creditors JEFFERSON COUNTY: Moody's Junks Rating on $3.2BB Revenue Warrants JOBSON MEDICAL: S&P Assigns 'B-' Rating on CreditWatch Negative JOHNSON RUBBER: Wants Court Approval to Wind Down Business HOVNANIAN ENTERPRISES: Moody's Slashes Ratings on Ongoing Losses LAGUNA SECA: Moody's Downgrades Ratings on Seven Classes of Notes LA JOLLA: Ernst & Young Expresses Going Concern Doubt LASALLE COMMERCIAL: Projected Losses Prompts Moody's Rating Cuts LB-UBS COMMERCIAL: Moody's Retains Low-B Ratings on Three Classes LEXINGTON CAPITAL V: Moody's Cuts Ratings on Seven Note Classes LEXINGTON CAPITAL III: Moody's Cuts Ratings on 10 Classes of Notes LIBERTAS PREFERRED: Moody's Cuts Ratings on Seven Classes of Notes LITTLE TRAVERSE: S&P Changes Outlook to Negative; Holds 'B' Rating LONG HILL 2006-1: Moody's Cuts Ratings on Seven 2045 Note Classes LONGRIDGE ABS: Moody's Slashes Ratings on Five Classes of Notes LONGSTREET CDO: Moody's Cuts Ratings on Eight 2046 Note Classes MACROCHEM CORP: Vitale Caturano Expresses Going Concern Doubt MACROCHEM CORP: David Luci Comes in as New Chief Financial Officer MAGNOLIA II 2006-5: Moody's Reviews 'Ba3' Rating For Possible Cut MANIS LUMBER: U.S. Trustee Appoints Seven-Member Creditors Panel MAXJET AIRWAYS: Court Okays Sale of Assets to MAAG for $1,000,000 MAYFLOWER CDO: Moody's Downgrades Ratings on Six Classes of Notes MEDICOR LTD: Wants Court OK to Sell Assets for $51.5 Million MERRILL LYNCH: Ample Credit Support Cues S&P's Rating Upgrades MILLSTONE III: Weak Credit Quality Prompts Moody's Rating Reviews MKP VELA: Four Classes of Notes Acquire Moody's Rating Downgrades ML-CFC 2006-3: Expected Losses Cue Fitch to Downgrade Ratings MONEYGRAM INT'L: Moody's Keeps B1 Rating on Review for Likely Cut MONITOR OIL: Must Talk with Creditors On Cash Collateral Use MONTAUK POINT: Moody's Cuts Ratings on Seven Classes of 2046 Notes MORGAN STANLEY: Fitch Holds Low-B Ratings on Six Classes of Certs. MORGAN STANLEY: Three Classes Acquire S&P's Junk Rating From 'B' MOVIE GALLERY: Court Extends Lease Decision Period to May 13 MOVIE GALLERY: SyWest Opposes Lease Assignment to WaMu MOVIE GALLERY: Wants Consent Procedures for Lessors Approved MT. POCONO MEDICAL: Voluntary Chapter 11 Case Summary MULBERRY STREET: Moody's Downgrades Ratings on Five Note Classes MANIS LUMBER: Court Approves Lamberth Cifelli as Bankr. Counsel NABI BIOPHARMA: S&P Withdraws All Ratings At Issuer's Request NASTECH PHARMACEUTICAL: KPMG LLP Expresses Going Concern Doubt NATCHEZ HOSPITAL: Board Hires Eilen Schaffer as Bankruptcy Counsel NATCHEZ HOSPITAL: Bill on Chapter 9 Bankruptcy Sent to Governor NATIONAL ENERGY: Files Certificate of Dissolution in Delaware NATIONAL RV: Wants Exclusive Plan Filing Period Extended NEENAH FOUNDRY: S&P Assigns 'B' Rating on Negative CreditWatch NEUROGEN CORP: PricewaterhouseCoopers Raises Going Concern Doubt NEW CENTURY: Recent Losses Cues Moody's Rating Cuts on 81 Tranches OCEANVIEW CBO: Fitch Pares Ratings on Custodial Receipts to 'BB' OCEANVIEW CBO: Moody's Cuts Ratings on Declining Credit Quality OPTEUM MORTGAGE: Moody's Cuts 38 Tranches' Ratings From Four Deals OPTION ONE: Severe Delinquencies Prompts Moody's Rating Downgrades ORIGEN FINANCIAL: Grant Thornton Raises Substantial Doubt ORION 2006-1: Moody's Downgrades Ratings on Five Classes of Notes ORTHOFIX INT'L: Moody's Cuts Ratings to 'B1' on Low Free Cash Flow PACIFIC LUMBER: Plan Objection & Voting Deadlines Extended PACIFIC LUMBER: Confirmation Objections Filed Against Rival Plans PACIFIC LUMBER: Files Third Amended Joint Plan of Reorganization PACIFIC LUMBER: Scotia Pacific Files Amended Alternative Plan PACIFICNET INC: To Contradict Debenture Holders' Chapter 11 Filing PALMER ABS: Moody's Junks Rating on $100 Mil. 2047 Notes From 'A1' PEACE ARCH: PwC Expresses Substantial Going Concern Doubt PFP HOLDINGS: Lenders Balk at $61.15MM Asset Sale to T2 Homes PIKE NURSERY: Judge Diehl Converts Case to Chapter 7 Liquidation PILGRIM'S PRIDE: Promotes Robert Wright as Chief Operating Officer PINE MOUNTAIN: Moody's Downgrades Ratings on Eight Note Classes PONTIAC MICHIGAN: Fitch Cuts Rating on $1.4 Mil. Bonds to 'B-' PROGRESSIVE GAMING: Ernst & Young Expresses Going Concern Doubt PYXIS ABS CDO: Eroding Credit Quality Spurs Moody's Rating Cuts QMED INC: Posts $11 Million Net Loss in Year ended November 30 QUEBECOR WORLD: Seeks Authority to Assume Various Contracts QUEBECOR WORLD: Wants to Pay $3,175,111 Sales Commissions QUEBECOR WORLD: Panel Taps Kurtzman Carson as Communications Agent RAMP 2005 TRUST: Moody's Cuts Rating on Class B-1 to 'B2' From Ba1 RASC 2005 TRUST: Moody's Downgrades Ratings on 31 Tranches RELIANCE INTERMEDIATE: S&P Ratings Unmoved by New Financing Plan RETAIL PRO: Posts $631,000 Net Loss in 2nd Quarter Ended Sept. 30 RIVIERA HOLDING: Moody's Holds 'B2' Rating; Gives Stable Outlook SAIL TRUSTS: Moody's Cuts Ratings on 22 Tranches From Four Deals SEARCHHELP INC: Extends Term of Class "A" Warrant to July 31 SECURITY CAPITAL: Realigns Operations by Eliminating 60 Positions SECURITY CAPITAL: Issues Response to Merrill Lynch's Lawsuit SECURITY CAPITAL: PwC Confirms XL Capital's New Biz Suspension SECURITY CAPITAL: Fitch Junks Ratings on $250MM Preference Shares SEQUOIA ALTERNATIVE: Moody's Cuts Ratings on High Delinquencies SHORES OF PANAMA: Files Schedules of Assets and Liabilities SIRIUS SATELLITE: S&P Holds Developing Watch on Refinancing Risks SIRVA INC: Completes Sale of Moving Operations in U.K., Ireland SIRVA INC: Committee Requests to Hire TRN as Investment Banker SOLOMON TECH: Sells 4,295,052 Common Shares to 6 Debenture Holders SOLUTIA INC: Settlement with GE Betz Gets Court Approval SOLUTIA INC: Harbinger Capital, et al., Hold 30.1% Stake SOLUTIA INC: Several Parties Disclose Ownership of Company Shares SOUTH COAST III: Moody's Cuts Ratings on Seven Classes of Notes SOUTH COAST I: Moody's Cuts Ratings on Decline in Credit Quality SOUTH COAST III: Moody's Cuts Ratings on Seven Classes of Notes SPARTECH CORPORATION: Cuts 10% of Total Workforce SPHERIS INC: Posts $11 Million Net Loss in Year Ended December 31 SPX CORP: Earns $294 Million for Year Ended Dec. 31, 2007 STACK 2006-1: Eroding Credit Quality Prompts Moody's Rating Cuts STACK 2006-2: Moody's Junks Rating on $105 Mil. Notes From 'B3' STACK 2007-2: Moody's Cuts Ratings on Deteriorating Credit Quality SUMMIT GLOBAL: Gets Court Nod for $56.5 Mil. Cash Sale to TriDec SUNTRUST MORTGAGE: Moody's Downgrades Ratings on 11 Tranches TAHOMA CDO II: Moody's Cuts Ratings on Declining Credit Quality TASMAN CDO: Moody's Junks Rating on $30 Mil. A1J Notes From 'Aaa' TECO ENERGY: Fitch Ratings Raises Issuer Default Rating From 'BB+' TOPANGA CDO: Poor Credit Quality Prompts Moody's Rating Downgrades TOUSA INC: Needs More Time to File 2007 Annual Report TOUSA INC: Objects to Krieff's Request to Lift Bankruptcy Stay TOWERS OF CHANNELSIDE: Court OKs Sale of Assets for $28 Million TQS INC: Subrogation Pact Releases Cogeco Inc. as Guarantor UNIGENE LABS: Grant Thornton Expresses Going Concern Doubt VESTA INSURANCE: FSIA Allowed to Hire Ralph Brotherton as Trustee VESTA INSURANCE: J. Gordon Settles Affirmative's $7.2M Claim VICORP RESTAURANTS: S&P Cuts Issue-level Rating to 'CC' From CCC- WAVE SYSTEMS: KPMG LLP Expresses Going Concern Doubt XELR8 HOLDINGS: Net Loss Lowers to $3MM in Year Ended December 31 XM SATELLITE: Refinancing Risks Cues S&P To Hold Developing Watch ZIFF DAVIS: Files Joint Plan of Reorganization in N.Y. Court ZIFF DAVIS: Classification and Treatment of Claims Under the Plan ZIPCO INT'L: Case Summary & 20 Largest Unsecured Creditors * Moody's Downgrades Ratings on 81 Tranches From Various Issuers * Moody's Proposes Specific Enhancements for RMBS Securitization * S&P Downgrades Ratings on 110 Synthetic CDO Transactions * S&P Lowers Ratings on 41 Tranches From Eight Cash Flows and CDOs * S&P Downgrades Ratings on 21 Classes From Eight Subprime RMBS * S&P Downgrades Ratings on 21 Classes From Eight Subprime RMBS * Fitch Says Property and Casualty Insurance Are Likely to Fall * Chadbourne & Parke Grows LA Practice with Mexico Office Opening * James Mallak Joins Alvarez & Marsal as a Managing Director * BOOK REVIEW: Bankruptcy Investing: How to Profit from Distressed Companies (Revised Edition) ********* ABCDS 2006-1: Weakened Credit Quality Cues Moody's Rating Cuts -------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by ABCDS 2006-1, Ltd.: Class Description: $200,000,000 Senior Swap Agreement with Royal Bank of Canada, London Branch -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Baa3, on review for possible downgrade Class Description: $60,000,000 Class A-2 First Priority Senior Secured Floating Rate Notes Due 2050 -- Prior Rating: A2, on review for possible downgrade -- Current Rating: Ba3, on review for possible downgrade Class Description: $51,600,000 Class A-3 Second Priority Senior Secured Floating Rate Notes Due 2050 -- Prior Rating: A3, on review for possible downgrade -- Current Rating: B2, on review for possible downgrade Class Description: $48,600,000 Class B Third Priority Senior Secured Floating Rate Notes Due 2050 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: Caa1, on review for possible downgrade Additionally, Moody's downgraded these notes: Class Description: $8,400,000 Class C Fourth Priority Mezzanine Secured Floating Rate Deferrable Interest Notes Due 2050 -- Prior Rating: Ba3, on review for possible downgrade -- Current Rating: Ca Class Description: $12,000,000 Class D Fifth Priority Mezzanine Secured Floating Rate Deferrable Interest Notes Due 2050 -- Prior Rating: Caa3, on review for possible downgrade -- Current Rating: Ca Class Description: $5,000,000 Class E Sixth Priority Mezzanine Secured Floating Rate Deferrable Interest Notes Due 2050 -- Prior Rating: Caa3, on review for possible downgrade -- Current Rating: Ca According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. ABITIBIBOWATER INC: PwC Expresses Substantial Doubt on Subsidiary ----------------------------------------------------------------- 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: Affiliate Prices $413MM Offering of Senior Notes ---------------------------------------------------------------- AbitibiBowater Inc.'s subsidiary, Abitibi-Consolidated Company of Canada, priced a private offering of $413 million aggregate principal amount of 13.75% senior secured notes due April 1, 2011. The notes were sold to qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended, and to non-U.S. persons in reliance on Regulation S under the Securities Act. The notes have not been registered under the Securities Act or any state securities laws. ACCC also priced a $400 million 364-day senior secured term loan with a coupon of LIBOR + 800 basis points, with a 3.5% LIBOR floor, at a price of 96% of par. The closing of both transactions is expected to occur on or about April 1, 2008, subject to the concurrent closing of both transactions and two other transactions. All four transactions are subject to the satisfaction of various closing conditions, including the receipt of various third-party approvals. The net proceeds from all four transactions will be used as part of the overall refinancing plan for the company's Abitibi- Consolidated Inc. subsidiary, which is intended to address upcoming debt maturities and general liquidity needs. 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. * * * As reported in the Troubled Company Reporter on March 12, 2008, Standard & Poor's Ratings Services assigned its 'B-' long-term corporate credit rating to AbitibiBowater Inc. The outlook is negative. ABITIBIBOWATER INC: S&P Put 'B+' Rating on Unit's $450MM Facility ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its bank loan and recovery ratings to Abitibi-Consolidated Co. of Canada's proposed $450 million senior secured credit facility. ACCC is a subsidiary of Abitibi-Consolidated Inc. (B-/Watch Neg/--). S&P assigned a 'B+' issue-level rating to the credit facility (two notches above the corporate credit rating on Abitibi- Consolidated), with a recovery rating of '1', indicating the expectation for a very high (90%-100%) recovery in the event of a payment default. "The secured credit facility is part of the $1.1 billion proposed refinancing at Abitibi-Consolidated and proceeds from the credit facility, senior secured notes, and a notes exchange will be used to retire existing credit facilities and provide the company with some liquidity," said Standard & Poor's credit analyst Jatinder Mall. This refinancing is conditional on all three transactions taking place. Based on a discrete asset valuation model (as the credit facility is only secured by accounts receivable, inventory, and the Alabama River mill) there are very high recovery prospects for the senior secured credit facility. Abitibi-Consolidated is the subsidiary of AbitibiBowater Inc. (B-/Negative/--) and is engaged in the production of newsprint, commercial printing paper, and wood products. S&P placed the ratings on Abitibi-Consolidated on CreditWatch negative March 10, due to the uncertainty of refinancing given current credit market conditions. S&P could lower the ratings on Abitibi-Consolidated if the company is unable to meet its maturing debt obligations. Ratings List Rating Assigned Abitibi-Consolidated Co. of Canada $450 mil. sr. sec. credit facility B+ (Recovery rating: 1) Ratings Unchanged Abitibi-Consolidated Co. of Canada $415 million senior secured notes B+ (Recovery rating: 1) Abitibi-Consolidated Inc. Corporate credit rating B-/Watch Neg/-- Senior unsecured debt B-/Watch Neg ACA AQUARIUS: Six Note Classes Obtain Moody's Ratings Downgrades ---------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by ACA Aquarius 2006-1, Ltd.: Class Description: $1,266,000,000 Class A1S Variable Funding Senior Secured Floating Rate Notes Due 2046 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: A2, on review for possible downgrade Class Description: $255,000,000 Class A1J Senior Secured Floating Rate Notes Due 2046 -- Prior Rating: Aa3, on review for possible downgrade -- Current Rating: Ba1, on review for possible downgrade Class Description: $177,000,000 Class A2 Senior Secured Floating Rate Notes Due 2046 -- Prior Rating: Baa1, on review for possible downgrade -- Current Rating: B2, on review for possible downgrade Class Description: $80,000,000 Class A3 Secured Deferrable Interest Floating Rate Notes Due 2046 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: Caa2, on review for possible downgrade Additionally, Moody's downgraded these notes: Class Description: $17,500,000 Class B1 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2046 -- Prior Rating: Ba3, on review for possible downgrade -- Current Rating: Ca Class Description: $74,500,000 Class B2 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2046 -- Prior Rating: Caa3, on review for possible downgrade -- Current Rating: Ca According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. ACCREDITED HOME: Moody's Chips Two Ratings on Delinquent Loans -------------------------------------------------------------- Moody's Investors Service downgraded the ratings of two tranches issued in a transaction originated by Accredited Home Lenders. The collateral backing each tranche consists primarily of first lien adjustable-rate and fixed-rate subprime mortgage loans. The deal being reviewed has experienced an increasing proportion of severely delinquent loans. Timing of losses coupled with the passing of stepdown triggers and pending stepdown will cause the protection available to the subordinated bonds to be diminished. Complete rating actions are: Issuer: Accredited 2005-2, Asset-Backed Notes, Series 2005-2 -- Cl. M-8, downgraded from Baa2 to Ba1 -- Cl. M-9, downgraded from Baa3 to Ba3 ACE SECURITIES: Moody's Cuts Ratings on 11 Tranches From Two Deals ------------------------------------------------------------------ Moody's Investors Service downgraded 11 tranches from two deals issued by ACE Securities Corp. Home Equity Loan Trust in 2005. The actions are based on the analysis of the credit enhancement provided by subordination, overcollateralization and excess spread relative to expected losses. The transactions are backed by primarily first lien adjustable subprime mortgage loans from various originators. The certificates have been downgraded based upon recent and expected pool losses and the resulting erosion of credit support. Moreover, increasing delinquencies along with step-down, or the possibility thereof, is likely to cause further erosion of credit enhancement levels. Complete rating actions are: Issuer: ACE Securities Corp. Home Equity Loan Trust, Series 2005- HE3 -- Cl. M-5, Downgraded to Baa1 from A2 -- Cl. M-6, Downgraded to Ba1 from A3 -- Cl. M-7, Downgraded to B1 from Baa1 -- Cl. M-8, Downgraded to Caa2 from Baa2 -- Cl. M-9, Downgraded to Ca from B1 -- Cl. B-1, Downgraded to Ca from B3 -- Cl. B-2, Downgraded to C from Caa1 Issuer: ACE Securities Corp. Home Equity Loan Trust, Series 2005- HE4 -- Cl. M-8, Downgraded to Ba1 from Baa2 -- Cl. M-9, Downgraded to Ba2 from Baa3 -- Cl. M-10, Downgraded to Ba3 from Ba1 -- Cl. B-1, Downgraded to B2 from Ba2 ADVANCED MEDICAL: Had $192MM Net Loss for Year Ended Dec. 31, 2007 ------------------------------------------------------------------ Advanced Medical Optics Inc. incurred a net loss of $192 million on $1 billion of net sales for the year ended Dec. 31, 2007, compared to earnings of $79 million on net sales of $997 million for the year ended Dec. 31, 2006. The company's net sales for 2007 rose 9.4% to $1,090.8 million. The rise reflects the IntraLase and WaveFront Sciences acquisitions, organic growth in cataract implant and laser vision corrections sales and a 2.9% increase related to foreign currency, which were partially offset by recall-related declines in eye care sales. The company had a GAAP net loss for 2007 of $192.9 million, or a net loss of $3.22 per share. The per share loss was increased by an estimated $2.26 due to an $87.0 million charge for in-process R&D, approximately $38.2 million in transaction-related charges, a $1.3 million deferred financing cost write-off, a $6.1 million loss on derivative instruments and an estimated $2.8 million tax effect. The company reported a fourth-quarter net loss under GAAP of $12.3 million, compared to a net loss of $7.6 million, in 2006's fourth quarter. These results included the impacts of the November 2006 and May 2007 recalls. The fourth-quarter 2007 results also included the following items, which combined to increase the net loss per share by $0.17: * $10.7 million in pre-tax charges related to integration of acquisitions; * $3.4 million pre-tax loss on derivative instruments; and * estimated tax effects totaling $3.8 million. The company's fourth-quarter 2007 net sales rose 25% to $304.6 million on organic growth, the acquisitions of IntraLase Corp. and WaveFront Sciences, Inc., and includes a 5.3% increase related to foreign currency impacts. On a pro forma basis, the company's fourth-quarter sales rose 7.3%. The pro forma sales growth rate reflects comparisons that include the IntraLase and WaveFront Sciences performance as if the acquisitions had occurred in all periods presented. Fourth-quarter sales growth was partially offset by lost sales and returns associated with the company's May 2007 contact lens care solution recall. Advanced Medical had total assets of $2.7 billion, total liabilities of $2.1 billion, and a stockholders' equity of $598 million at Dec. 31, 2007, compared to total assets of $2 billion, total liabilities of $1.2 billion, and a stockholders' equity of $715 million at Dec. 31, 2006. Plans to Reduce Fixed Costs The company disclosed plans to reduce its fixed costs in order to further enhance its global competitiveness, operating leverage and cash flow. The plan includes a net workforce reduction of approximately 150 positions, or about 4% of the company's global workforce. In addition, AMO plans to consolidate certain operations to improve its overall facility utilization. To complete this plan, AMO expects to incur charges between $25 million and $30 million in 2008 and estimates that the vast majority will be cash. Upon full implementation, the company expects these actions to result in annualized savings of approximately $10 million to $12 million. In 2008, the company estimates savings related to these actions in the range of $4 million to $7 million, which are reflected in the current guidance. The charges outlined above are in addition to the $11 million to $13 million in charges the company expects to take in 2008 to consolidate its equipment manufacturing, which was announced in December 2007. "Our fourth-quarter performance represented a strong finish to 2007, in which we advanced our strategy and moved aggressively to overcome challenges," said Jim Mazzo, chairman and chief executive officer. "Our cataract/implant business delivered growth across all product categories, and we are entering 2008 on track to launch a range of new technologies to position us for future growth. Our eye care business continued to rebound, with fourth- quarter 2007 sales up 20% on a sequential basis. In addition, this business is now launching our first-ever product to relieve dry eye symptoms. Demonstrating the competitive power of our dual excimer and femtosecond laser platform, our laser vision correction business achieved double-digit sales growth on a pro forma basis. With the planned 2008 release of new LASIK innovations, we intend to continue to expand our leadership position. "To ensure we are maximizing the earnings and cash flow power of the global footprint we have created, we need to be diligent in our effort to improve efficiency and productivity. We expect to accomplish this through staff reductions and infrastructure changes designed to reduce fixed costs, improve operating leverage and enhance long-term cash flow. "We remain confident in the strength of our global businesses, technologies, new product pipeline and strategy. However, after the first six weeks of 2008, we have seen the deteriorating U.S. economy negatively impact our domestic LASIK procedure volumes. We have multiple, unique growth drivers that we believe will mitigate our exposure to a slowdown in the elective refractive procedure market, but we feel a more conservative view is prudent at this time," concludes Mr. Mazzo. About Advanced Medical Headquartered in Santa Ana, Calif., Advanced Medical Optics -- http://www.amo-inc.com/-- develops, manufactures and markets ophthalmic surgical and contact lens care products. AMO employs employs approximately 4,200 worldwide. The company has operations in 24 countries and markets products in approximately 60 countries. * * * As reported in the Troubled Company Reporter on Oct. 12, 2007, Moody's Investors Service downgraded Advanced Medical Optics, Inc.'s Corporate Family Rating and Probability of Default Rating to B2 from B1. The rating outlook was revised to stable. Ratings hold to date. ALTIUS IV: Moody's Cuts Ratings on Nine Classes of Notes -------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Altius IV Funding, Ltd.: Class Description: $644,850,000 Class A-1F Floating Rate Notes Due 2042 -- Prior Rating: Aaa -- Current Rating: Aa1, on review for possible downgrade Class Description: $644,850,000 Class A-1B Floating Rate Notes Due 2042 -- Prior Rating: Aaa -- Current Rating: Aa1, on review for possible downgrade Class Description: $300,000 Class A-1V Floating Rate Notes Due 2042 -- Prior Rating: Aaa -- Current Rating: Aa1, on review for possible downgrade Class Description: $50,000,000 Class A-2a Floating Rate Notes Due 2042 -- Prior Rating: Aaa -- Current Rating: Aa3, on review for possible downgrade Class Description: $55,000,000 Class A-2b Floating Rate Notes Due 2042 -- Prior Rating: Aaa -- Current Rating: Aa3, on review for possible downgrade Class Description: $66,000,000 Class B Floating Rate Notes Due 2042 -- Prior Rating: Aa2 -- Current Rating: A2, on review for possible downgrade Class Description: $19,500,000 Class C Floating Rate Deferrable Notes Due 2042 -- Prior Rating: A2 -- Current Rating: Ba1, on review for possible downgrade Class Description: $12,000,000 Class D Floating Rate Deferrable Notes Due 2042 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ba3, on review for possible downgrade Class Description: Up to $2,500,000 Class E Floating Rate Deferrable Notes Due 2042 -- Prior Rating: Ba1, on review for possible downgrade -- Current Rating: Caa2, on review for possible downgrade According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. AMERICAN HOME: Asks Court to Approve Deal with D.C. ISB Department ------------------------------------------------------------------ Pursuant to Section 105(a) of the Bankruptcy Code and Rule 9019(a) of the Federal Rules of Bankruptcy Procedure, American Home Mortgage Investment Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to approve a consent order among American Home Mortgage Corp., American Home Mortgage Acceptance, Inc., American Home Mortgage Servicing, Inc., and the Commissioner of the District of Columbia Department of Insurance, Securities and Banking. James L. Patton, Jr., Esq., at Young Conaway Stargatt & Taylor LLP, in Wilmington, Delaware, relates that prior to the Petition Date, AHM Corp. and AHM Acceptance told the Commissioner that they had approved nine loans worth $3,000,000 related to residential real property located in the District of Columbia, which were scheduled to close between July 30 and August 17, 2007. Prior to the scheduled closings, however, the Debtors were not able to originate and fund loans, when their warehouse lenders began to exercise remedies. Consequently, the Commissioner issued a Temporary Order to Cease and Desist, and required AHM Corp. and AHM Acceptance to, among other things, cease their mortgage lending and brokering activities in the District of Columbia area, and to escrow any fees already collected from consumers with respect to pending mortgage loan applications. Until September 30, 2007, AHM Corp. and AHM Acceptance held 26 mortgage lender and broker licenses in the District of Columbia. Currently, the Debtors have one pending renewal application. Following negotiations, the parties agreed to resolve the Commissioner's claims against the Debtors, which includes allegations of violating the Mortgage Lender and Broker Act of 1996, without the need for the Debtors to admit or deny, or to continue litigation with respect to, the allegations. The Commissioner has also agreed to grant the Application through the Consent Order. The principal terms of the Consent Order are: -- AHM Corp., and AHM Acceptance will immediately cease engaging in the activities of a mortgage lender or broker in the District of Columbia; -- AHM Servicing will pursue completion of the Application before the Continuation Letters expire, and upon compliance with all licensing requirements, the renewal license of AHM Servicing will be issued conditioned on compliance with the Consent Order; -- Within 30 days from the end of each quarter, AHM Servicing will provide to the Commissioner: * copies of any monthly operating reports that have been filed with the Court; * a report on any outstanding consumer complaints involving AHM Servicing's business in the District of Columbia; and * a copy of any correspondence from any federal, state or local authority or law enforcement agency documenting the revocation or suspension of its license; -- The Commissioner will be deemed to have provided a notice of appearance in the bankruptcy cases, in compliance with Rule 2002 of the Federal Rules of Bankruptcy Procedure, and will be entitled to service of all notices and pleadings; and -- Any reporting requirements placed on AHM Servicing by the Consent Order will expire upon the final closing for the sale of the Debtors' mortgage loan servicing business. About American Home 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. American Home is currently seeking an extension of its exclusive period to file a plan of reorganization through June 2, 2008; and its exclusive period to solicit and obtain acceptances for that plan through July 31, 2008. (American Home Bankruptcy News, Issue No. 29; Bankruptcy Creditors' Service, Inc., Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN HOME: Files Omnibus Objection to 80 Claims --------------------------------------------------- American Home Mortgage Investment Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the District of Delaware to disallow and expunge 80 claims in their entirety pursuant to Section 502(b) of the Bankruptcy Code, Rules 3003 and 3007 of the Federal Rules of Bankruptcy Procedure, and Rule 3007-1 of the Local Rules of Bankruptcy Practice and Procedure of the Court. The Debtors identified 42 claims that are duplicative of the previously-filed proofs of claim. The Debtors believe that the filing of Duplicate Claims appears to be a function of claimants filing the same claims with both Epiq Bankruptcy Solutions, LLC, and either the Debtors or the Clerk of the U.S. Bankruptcy Court for the District of Delaware. Among the largest Duplicate Claims are: Duplicate Surviving Surviving Claimant Claim No. Claim No. Claim Amount -------- --------- --------- ------------ MBIA Insurance 8270 8271 $221,112,000 Corporation MBIA Insurance 8272 8271 221,112,000 Corporation Barbosa, Miguel A. 8856 8964 255,000 Gravely-Robinson, 1856 4031 150,000 Karen Indiana Department 1254 3346 127,437 of Revenue Los Angeles County 8783 8832 107,421 Treasurer & Tax Collector The Debtors also identified 38 claims that have been amended and superseded by subsequently-filed proofs of claim. The Amended Claims, thus, no longer represent valid claims against the estates, and should be disallowed. Among the largest Amended Claims are: Amended Surviving Surviving Claimant Claim No. Claim No. Claim Amount -------- --------- --------- ------------ Impac Funding 3987 7814 $63,000,000 Corporation Richard Russell, 1737 9848 29,001,161 Department of the Treasury Shearer, Lyle E. 140 7215 230,025 Radin, John C. 145 1601 82,200 Kentwood Office 157 588 58,917 Furniture LLC State of Washington 1849 2876 56,804 Dept. of Revenue About American Home 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. American Home is currently seeking an extension of its exclusive period to file a plan of reorganization through June 2, 2008; and its exclusive period to solicit and obtain acceptances for that plan through July 31, 2008. (American Home Bankruptcy News, Issue No. 29; Bankruptcy Creditors' Service, Inc., Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN HOME: Court Extends Removal Period to June 2 ----------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware granted the request of American Home Mortgage Investment Corp. and its debtor- affiliates to extend to June 2, 2008, the deadline to file notices of removal of all civil actions pending as of their bankruptcy filing. The Court, however, noted that the order is without prejudice to (i) any position the Debtors may take regarding whether Section 362 of the Bankruptcy Code applies to stay any litigation pending against them, or (ii) the Debtors' right to seek further extensions. The Debtors asked the Court to extend their deadline to remove pending prepetition actions to June 2, 2008, pursuant to Section 1452 of the Judiciary and Judicial Procedures Code, and Rules 9006 and 9027 of the Federal Rules of Bankruptcy Procedure. The Debtors asked the Court to approve the extension without prejudice to: -- any position they may take regarding whether Section 362 of the Bankruptcy Code applies to stay any given civil action pending against them; and -- their right to seek further extensions. Since the Petition Date, the Debtors have focused primarily on maximizing their bankruptcy estates' value through the orderly liquidation of assets, James L. Patton, Jr., Esq., at Young Conaway Stargatt & Taylor LLP, in Wilmington, Delaware, relates. To that end, the Debtors have solicited, negotiated and sought approval for several sales of various assets, including the Debtors' mortgage loan servicing business. Since the Court granted an initial extension to March 4, the Debtors, among other things: -- completed the initial closing of the sale of their loan servicing business; -- gained approval of a marketing and negotiation process to auction and sell certain loans and miscellaneous assets; -- negotiated the terms of the transfer of servicing under certain home equity lines of credits; -- gained authority to compromise certain construction loans; and -- received approval of a process for dealing with the return of loan files. As a result, the Debtors have not had an opportunity to fully investigate all of the State Court Actions to determine whether removal is appropriate, Mr. Patton tells the Court. Accordingly, the Debtors seek an extension of the March 4 deadline to protect their right to remove any of the State Court Actions. The Debtors submit that granting them an extension will assure that their decisions are fully informed and consistent with the best interests of the estates. Mr. Patton avers that parties to the State Court Actions will not be prejudiced by the Debtors' request. About American Home 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. American Home is currently seeking an extension of its exclusive period to file a plan of reorganization through June 2, 2008; and its exclusive period to solicit and obtain acceptances for that plan through July 31, 2008. (American Home Bankruptcy News, Issue No. 29; Bankruptcy Creditors' Service, Inc., Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN HOME: Can Hire CB Richard Ellis as Real Estate Broker -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware allowed American Home Mortgage Investment Corp. and its debtor-affiliates to employ CB Richard Ellis as real estate broker, nunc pro tunc to February 22, 2008, in connection with their efforts to sell certain real property located at 950 North Elmhurst Road, in Mount Prospect, Illinois 60056. Judge Christopher S. Sontchi, however, ruled that CBRE will not also represent a prospective purchaser seeking to acquire any interest in the Property. The Court directed CBRE to file interim and final fee applications according to applicable laws, provided that CBRE submit time records in half-hour increments. As reported by the Troubled Company Reporter on Jan. 31, 2008, in accordance with the terms of the Engagement Agreement, the Debtors also sought approval of CBRE's fee structure pursuant to Section 328(a) of the Bankruptcy Code. The Debtors related that the fee structure is fair and reasonable in light of industry practice and CBRE's extensive experience. Among the key terms of the Engagement Agreement are: -- The Debtors will grant CBRE the exclusive right to sell or dispose of the Broadhollow Property for a period commencing Jan. 10, 2008 and ending midnight of July 31, 2008, which term may be terminated by either party with or without cause upon 30 days written notice; -- CBRE agrees to use reasonable efforts to effect a sale or transfer of the Broadhollow Property, which will be marketed without a formal asking price; -- The Debtors agree to pay CBRE, together with any co- broker, an aggregate sales commission equal to 1.5% of the gross sales price up to $35 million, and 5% of the gross sales price that exceeds $35 million, which will include any existing mortgage that is assumed. The Commission will be earned and payable at the time of the closing for services rendered if, during the Term: * the Broadhollow Property is sold to a purchaser procured by CBRE, the Debtors or anyone else; and * the Debtors contribute or convey the Broadhollow Property to a business entity or pursuant to a stock sale; and -- The Debtors agree to reimburse CBRE for all its reasonable out-of-pocket expenses up to a maximum of $7,500. About American Home 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. American Home is currently seeking an extension of its exclusive period to file a plan of reorganization through June 2, 2008; and its exclusive period to solicit and obtain acceptances for that plan through July 31, 2008. (American Home Bankruptcy News, Issue No. 29; Bankruptcy Creditors' Service, Inc., Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN LAFRANCE: Court Approves Disclosure Statement ------------------------------------------------------ Judge Brendan Lineha Shannon has approved American LaFrance, LLC's Disclosure Statement to accompany the Debtor's Plan of Reorganization. In addition, the Official Committee of Unsecured Creditors has committed to withdraw its opposition to the Plan and support a modified version the Debtor's Plan, anticipated to be filed by the end of this week. The court has set April 18, 2008 as the voting deadline and April 29, 2008 for confirmation of the Plan. William K. Snyder, the CRO of the Company, stated: "With the support from the Committee, the Company is looking to quickly exit bankruptcy and ramp up production to meet customer needs; this development takes the focus off the bankruptcy for customers, suppliers and employees and allows the management team to on manufacture and deliver trucks to its municipal constituents around this country." The Plan contemplates satisfaction in full of all senior secured debt, administrative claims, and priority claims. To address the $85 million of contingent and non-contingent general unsecured debt, the Plan provides for the assumption by the reorganized company of approximately $28 million of such claims and establishment of a fund of assets to pay the remaining claims. The remaining claims will be paid from a fund including $6.1 million of cash and proceeds from the sale of two buildings to pay a total dividend of 22.5% of respective claims. The reorganized Company is also funding litigation against certain parties related to the complications that resulted from operational issues that led, in large part, to the ALF bankruptcy. Unsecured creditors with balances $2,500 or below (or those willing to reduce the claim to $2,500) will be paid in full without interest. Patriarch Chief Executive Officer Lynn Tilton added: "We are pleased to take a step forward towards ensuring the long term future of this 175 year old company. American La France embodies a great American heritage and it has long built the highest quality fire trucks and emergency vehicles, which contribute to saving lives in this country every single day." As reported by the Troubled Company Reporter on March 26, 2008, American LaFrance delivered to the U.S. Bankruptcy Court for the District of Delaware a Second Amended Plan of Reorganization and Disclosure Statement on March 24, 2008. A full-text copy of the Second Amended Plan is available for free at http://bankrupt.com/misc/ALF_2nd_Revised_Plan.pdf A full-text copy of the Second Amended Disclosure Statement is available for free at: http://bankrupt.com/misc/ALF_2nd_Revised_DS.pdf The Second Amended Plan contemplates this schedule with respect to voting deadline and Plan confirmation: Deadline for Submission of Ballots April 18, 2008 Deadline for Objections to Plan Confirmation April 18, 2008 Pre-Trial Confirmation Hearing April 21, 2008 Plan Confirmation Hearing April 28, 2008 About American LaFrance Headquartered in Summerville, South Carolina, American LaFrance LLC -- http://www.americanlafrance.com/-- is one of the oldest fire apparatus manufacturers and one of the top six suppliers of emergency vehicles in North America. The company filed for Chapter 11 protection on Jan. 28, 2008 (Bankr. D. Del. Case No. 08-10178). Ian T. Peck, Esq., and Abigail W. Ottmers, Esq., at Haynes and Boone LLP, are the Debtor's proposed Lead Counsel. Christopher A. Ward, Esq., at Klehr, Harrison, Harvey, Branzburg & Ellers LLP, are the Debtor's proposed local counsel. In its schedules of assets and debts filed Feb. 4, 2008, the Debtor disclosed $188,990,680 in total assets and $89,065,038 in total debts. The Debtor's exclusive period to file a plan expires on May 27, 2008. The Debtor filed its plan of reorganization on Feb. 3. (American LaFrance Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN LAFRANCE: Committee Allowed to Hire FTI as Advisor ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware granted permission to the Official Committee of Unsecured Creditors of American LaFrance LLC to retain FTI Consulting, Inc., as the Committee's financial advisors, nunc pro tunc to February 4, 2008. Stefan H. Kurschner, the Committee chairperson, says FTI's services are necessary to enable the Committee to assess and monitor the efforts of the Debtor and its professional advisors to maximize the value of its estate and to reorganize successfully. As financial advisors, FTI will assist the Committee in: 1. reviewing financial related disclosures as required by the Court, including the schedules of assets and liabilities, the statement of financial affairs and monthly operating reports; 2. analyzing information in the Debtor's DIP Financing, including preparing for hearings regarding the use of cash collateral and DIP Financing; 3. reviewing the Debtor's short-term management procedures; 4. advising with respect to the Debtor's identification of core business assets and the disposition of assets or liquidation of unprofitable operations; 5. reviewing the Debtor's cost/benefit analyses with respect to the affirmation or rejection of various executory contracts and leases; 6. identifying areas of potential cost savings, including overhead and operating expense reductions and efficiency improvements; 7. reviewing financial information distributed by the Debtor to creditors, including cash flow projections and budgets, cash receipts and disbursement analysis, analysis of various asset and liability accounts, and analysis of proposed transactions for which Court approval is sought; 8. attending meetings and discussions with the Debtor and potential investors, banks, other secured lenders, the U.S. Trustee and other parties in interest; 9. reviewing and preparing information and analysis necessary for the confirmation of a plan in the Debtor's Chapter 11 case; and 10. evaluating and analyzing avoidance actions, including fraudulent conveyances and preferential transfers; 11. other general business consulting as the Committee may deem necessary. FTI will be paid for its services a monthly allowance of $75,000 for the first month and $50,000 per month thereafter. The firm will also be reimbursed of actual and necessary expenses it incurred or will incur. Samuel Star, senior managing director of FTI, asserts that his firm does not represent any other entity having an adverse interest in connection with the Debtor's case and therefore, is eligible to represent the Committee. Mr. Star assures the Court that his firm is a "disinterested person" as the term is used in Section 101(14) of the Bankruptcy Code. About American LaFrance Headquartered in Summerville, South Carolina, American LaFrance LLC -- http://www.americanlafrance.com/-- is one of the oldest fire apparatus manufacturers and one of the top six suppliers of emergency vehicles in North America. The company filed for Chapter 11 protection on Jan. 28, 2008 (Bankr. D. Del. Case No. 08-10178). Ian T. Peck, Esq., and Abigail W. Ottmers, Esq., at Haynes and Boone LLP, are the Debtor's proposed Lead Counsel. Christopher A. Ward, Esq., at Klehr, Harrison, Harvey, Branzburg & Ellers LLP, are the Debtor's proposed local counsel. In its schedules of assets and debts filed Feb. 4, 2008, the Debtor disclosed $188,990,680 in total assets and $89,065,038 in total debts. The Debtor's exclusive period to file a plan expires on May 27, 2008. The Debtor filed its plan of reorganization on Feb. 3. (American LaFrance Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN LAFRANCE: Committee May Hire Pepper Hamilton as Counsel ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware granted a request by the Official Committee of Unsecured Creditors of American LaFrance LLC to retain Pepper Hamilton, LLP, as its counsel in American LaFrance's Chapter 11 case, nunc pro tunc to February 4, 2008. Committee Chairman Stefan H. Kurschner related that the Committee has selected Pepper Hamilton because of the firm's considerable experience in the bankruptcy and commercial law areas. David B. Stratton and David M. Fournier, partners at Pepper Hamilton, and Linda Casey and James C. Carignan, associates of Pepper Hamilton, are presently expected to do the primary work for the firm in the Debtor's case. As the Committee's counsel, Pepper Hamilton will: (1) represent the Committee; (2) advise the Committee on its rights, duties and powers in the Debtor's case; (3) assist and advise the Committee on consultations with the Debtor and all parties in interest; (4) assist the Committee in analyzing the claims of creditors and the Debtor's capital structure and negotiations with the holders of claims and equity interests; (5) assist the Committee's investigation of the acts, conduct, assets, liabilities and financial condition of the Debtor and other parties involved with the Debtor, and of the operation of the Debtor's businesses; (6) assist the Committee in analyzing intercompany transactions; (7) assist the Committee in the analysis of, and negotiations with, the Debtor and any other third party concerning the assumption or rejection of certain leases of non- residential real property and executory contracts, asset dispositions, financing of other transactions and the terms of the reorganization plan of the Debtor; (8) assist and advise the Committee as to its communications to the general creditor body regarding significant matters in the Debtor's case; (9) represent the Committee at all hearings and other proceedings; (10) review, analyze and advise the Committee with respect to all applications, orders, statements of operations and schedules filed with the Court; (11) assist the Committee in preparing pleadings and applications as may be necessary in furtherance of the Committee's interests and objectives; and (12) perform other services as may be required and are deemed to be in the interests of the Committee in accordance with the Committee's powers and duties as set forth in the Bankruptcy Code. Pepper Hamilton has agreed to cap its fees in the Debtor's case to the extent the total of the firm's fees, divided by the total amount of hours spent on the engagement, exceeds $435 per hour. The current hourly rates charged by Pepper Hamilton for its professionals are: Professional Hourly Rate ------------ ----------- Partners, Special Counsel, Counsel $450 to $695 Associates $250 to $400 Paraprofessionals $175 to $205 David B. Stratton, Esq., a partner at Pepper Hamilton, assures the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not hold any adverse interest to all parties involved. About American LaFrance Headquartered in Summerville, South Carolina, American LaFrance LLC -- http://www.americanlafrance.com/-- is one of the oldest fire apparatus manufacturers and one of the top six suppliers of emergency vehicles in North America. The company filed for Chapter 11 protection on Jan. 28, 2008 (Bankr. D. Del. Case No. 08-10178). Ian T. Peck, Esq., and Abigail W. Ottmers, Esq., at Haynes and Boone LLP, are the Debtor's proposed Lead Counsel. Christopher A. Ward, Esq., at Klehr, Harrison, Harvey, Branzburg & Ellers LLP, are the Debtor's proposed local counsel. In its schedules of assets and debts filed Feb. 4, 2008, the Debtor disclosed $188,990,680 in total assets and $89,065,038 in total debts. The Debtor's exclusive period to file a plan expires on May 27, 2008. The Debtor filed its plan of reorganization on Feb. 3. (American LaFrance Bankruptcy News, Issue No. 11; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN IRONHORSE: Consents to Chapter 11 Bankruptcy Filing ------------------------------------------------------------ American IronHorse Motorcycle Company, Inc., consented on March 25, 2008, to the move by a group of creditors to place the company under chapter 11 bankruptcy protection. As reported by the Troubled Company Reporter on March 5, 2008, three creditors filed in late February 2008, an involuntary petition against the company before the United States Bankruptcy Court for the Northern District of Texas, Ft. Worth Division. On Tuesday, the Bankruptcy Court entered an order for relief under Chapter 11 of the U.S. Bankruptcy Code. The petitioners are owed $120,000 by the company: Petitioners Nature of Claim Claim Amount ----------- --------------- ------------ AG Nichlos, Jr. Promissory Note $60,000 3621 Turtle Creek #4E Dallas, TX 75219 William E. Buford Promissory Note 30,000 William Buford 5370 W. Lovers Lane, #396 Dallas, TX 75209 Jim Graham Promissory Note 30,000 Jim Graham Two Lincoln Center, #300 Dallas, TX 75240 The petitioner's counsel is Troy D. Philips, Esq., at Glast, Phillips & Murray, PC, in Dallas, Texas. American IronHorse designs, manufactures, and markets custom v- twin motorcycles. The company first began selling motorcycles in 1996, and currently offers both cruiser models and chopper models. AIH has historically priced its motorcycles at a significant premium to Harley Davidson, due to the scope of customization and the high level of performance of its motorcycles. AIH markets its motorcycles through a national network of more than 100 dealers and is actively pursuing international sales in Canada and the United Kingdom. AIH said in court papers that due to several factors affecting the sale of luxury goods, including increases in interest rates, tightening of retail credit standards, and increased energy prices, the company endured a year in 2006 that produced a reduction in sales to dealers and to consumers. The result of these factors, and the motorcycle industry's delayed reaction to the market changes, resulted in an over-supply of inventory on the company's dealer floors. AIH experienced a drop in sales to dealers from $96 million in 2005 to $53 million in 2006. That decline continued in 2007, with sales to dealers totaling approximately $25 million as the company discontinued production in late 2007 due to continuing erosion of market conditions. In 2007 and early 2008, AIH made an effort to expand down market, repositioning its product line to appeal to a broader customer base by introducing a lower priced series of motorcycles. Despite the efforts, the company's financial performance continued to decline. In late 2007, the company retained White Oak Group, an investment banking firm, to assist the company in obtaining additional investment capital or locating a buyer for the company or its assets. Bryan Harley reports on Motorcyle USA.com relates that since the initial filing of the involuntary petition, four other creditors have filed suit, including R.C. Components, against the company. Two of the other companies seeking compensation are local and state agencies attempting to recover almost $238,000 in property taxes. The amount in damages sought is now approximately $2 million, the report said. According to the report, American Ironhorse CEO and President Buck Hendrickson hinted at a conference call with dealers that investors comprised of current American Ironhorse management have plans to acquire the company. ANTS SOFTWARE: Burr Pilger Expresses Going Concern Doubt -------------------------------------------------------- Burr, Pilger & Mayer LLP raised substantial doubt about the ability of ANTs Software, Inc., to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2007. The auditing firm pointed to the company's recurring losses from operations, stockholders' deficit, and cash flows used in operating activities. Management states "that a failure to obtain financing could prevent us from executing our business plan or operate as a going concern." The company posted a net loss of $16,313,223 on total sales of $359,706 for the year ended Dec. 31, 2007, as compared with a net loss of $15,125,903 on total sales of $287,832 in the prior year. At Dec. 31, 2007, the company's balance sheet showed $5,939,803 in total assets and $10,984,683 in total liabilities, resulting in $5,044,880 stockholders' deficit. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?296f About ANTs Software ANTs Software, Inc., (OTC BB: ANTS.OB) -- http://www.ants.com -- develops and markets relational database management system in the United States. It develops, markets, and supports the ANTs Data Server database and the ANTs Compatibility Server, a middleware technology that allows customers to migrate applications between major database systems. ANTs software has also been granted patents related to high-performance and non-locking database technology. The company was incorporated in 1979. It was formerly known as CHoPP Computer Corporation and changed its name to ANTs software.com in 1999. Further, it changed its name to ANTs software, inc. in 2000. The company is headquartered in Burlingame, Calif. APRIA HEALTHCARE: Moody's Withdraws Ratings on Business Reasons --------------------------------------------------------------- These ratings of Apria Healthcare Group Incorporated have been withdrawn: -- The Ba2 Corporate Family rating; -- The Ba2 Probability of Default Rating; -- The B1 (LGD5, 88) rating on $265 million senior notes due 2017, which was assigned on Nov. 6, 2007. The notes had been proposed in conjunction with the acquisition of Coram Inc. which took place in December 2007 but have not been issued to date. Apria's outstanding debt issues have no Moody's ratings. Moody's has withdrawn these ratings for business reasons. Moody's added that the ratings were withdrawn because this issuer has no rated debt outstanding. ASAT HOLDINGS: Nasdaq Terminates Trading Securities on March 27 --------------------------------------------------------------- The Nasdaq Hearings Panel determined to delist ASAT Holdings Limited's securities from The Nasdaq Stock Market, and suspended trading in the company's shares on March 27, 2008. The company received notice from the staff of the Nasdaq Stock Market regarding the Nasdaq Hearing Panel's determination on the company's non-compliance with Nasdaq continuing listing requirements, including maintaining the market value of its listed securities above $35 million, its stockholders equity above $2.5 million, and its net income of at least $500,000 from continuing operations for the most recently completed fiscal year or two of the last three most recently completed fiscal years. After delisting from the Nasdaq Stock Market, the company expects that its American Depositary Shares will be traded on the OTC Bulletin Board. Headquartered in Pleasanton, California, ASAT Holdings Limited (Nasdaq: ASTT) -- http://www.asat.com/-- is a provider of semiconductor package design, assembly and test services. With 18 years of experience, the company offers a definitive selection of semiconductor packages and world-class manufacturing lines. ASAT's advanced package portfolio includes standard and high thermal performance ball grid arrays, leadless plastic chip carriers, thin array plastic packages, system-in-package and flip chip. ASAT was the first company to develop moisture sensitive level one capability on standard leaded products. The company has operations in the United States, Hong Kong, China and Germany. * * * Standard & Poor's placed ASAT Holdings Limited's long-term foreign and local issuer credit ratings at 'CCC-' in September 2007. The outlook is negative. ATARI INC: Non-Compliance with Nasdaq Rules Cues Stocks Delisting ----------------------------------------------------------------- Atari Inc. received a Staff Determination Letter from the Nasdaq Listing Qualifications Department stating that Atari Inc. has not gained compliance with the requirements of Nasdaq Marketplace Rule 4450(b)(3), and that its securities are therefore subject to delisting from The Nasdaq Global Market. On Dec. 21, 2007, the Nasdaq Listing Qualifications Department notified Atari Inc. that, pursuant to Nasdaq Marketplace Rule 4450(e)(1), unless the market value of Atari Inc.'s publicly held shares, which is calculated by reference to Atari Inc.'s total shares outstanding, less any shares held by officers, directors or beneficial owners of 10% or more, maintains an aggregate market value of $15 million or more for a minimum of 10 consecutive business days prior to March 20, 2008, Atari Inc.'s securities would be subject to delisting. The value of Atari Inc.'s publicly held shares did not reach that level within the required period. Atari Inc. intends to request a hearing before a Nasdaq Listing Qualifications Panel in order to appeal the Nasdaq Staff's determination in light of, among other things, the pending proposal by Infogrames Entertainment SA to acquire all of the outstanding shares of common stock not held by IESA. The hearing request will stay the delisting and, as a result, Atari Inc.'s securities will remain listed on The Nasdaq Global Market until the Panel issues its decision after the hearing. There can be no assurance that the Panel will grant Atari Inc.'s request for continued listing on The Nasdaq Global Market. About Atari Inc. Headquartered in New York, Atari Incorporated, (NASDAQ: ATAR) -- http://www.atari.com/-- publishes and distributes interactive entertainment software in the U.S. The company's 1,000+ published titles distributed by the company include hard-core, genre- defining franchises such as Test Drive(R); and mass-market and children's franchises such Dragon Ball Z(R). Atari Inc. is a majority-owned subsidiary of France- based Infogrames Entertainment SA, an interactive games publisher in Europe. As reported in the Troubled Company Reporter on Feb. 20, 2008, Atari Inc.'s consolidated balance sheet at Dec. 31, 2007, showed $43.5 million in total assets and $60.3 million in total liabilities, resulting in a $16.8 million total stockholders' deficit. The company's consolidated balance sheet at Dec. 31, 2007, also showed strained liquidity with $34.9 million in total current assets available to pay $45.2 million in total current liabilities. Going Concern Doubt New York-based Deloitte & Touche LLP expressed substantial doubt about Atari's ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended March 31, 2007. The auditing firm pointed to the company's significant operating losses. As of Dec. 31, 2007, and through Feb. 12, 2008, Atari Inc. was in violation of its financial covenants. BlueBay High Yield Investments (Luxembourg) S.A.R.L., Atari Inc.'s lender and a majority shareholder of Infogrames Entertainment S.A., has not waived this violation and has entered into a forbearance agreement with Atari Inc. which states that BlueBay will not exercise its rights on its facility until the earlier of (i) March 3, 2008, (ii) additional covenant defaults except for the ones existing as of Feb. 12, 2008, or (iii) if any action transpires which is viewed to be adverse to the position of the lender. AVANTI FUNDING: Eroding Credit Quality Cues Moody's Rating Cuts --------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by AVANTI Funding 2006-1, Ltd.: Class Description: $279,000,000 Class A-1 Floating Rate Senior Secured Notes due 2046 -- Prior Rating: Aaa -- Current Rating: A1, on review for possible downgrade Class Description: $38,000,000 Class A-2 Floating Rate Senior Secured Notes due 2046 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Baa3, on review for possible downgrade Class Description: $32,000,000 Class A-3 Floating Rate Senior Secured Notes due 2046 -- Prior Rating: Aa2, on review for possible downgrade -- Current Rating: Ba1, on review for possible downgrade Class Description: $18,000,000 Class B Floating Rate Subordinate Secured Deferrable Notes due 2046 -- Prior Rating: A2, on review for possible downgrade -- Current Rating: B2, on review for possible downgrade Class Description: $14,500,000 Class C Floating Rate Junior Subordinate Secured Deferrable Notes due 2046 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Caa2, on review for possible downgrade According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. BARRAMUNDI CDO: Moody's Downgrades Ratings on Six Classes of Notes ------------------------------------------------------------------ Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Barramundi CDO I Ltd.: Class Description: Up to $540,400,000 Class A-1 Senior Secured Floating Rate Notes Due December 2051 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Baa3, on review for possible downgrade Class Description: $56,000,000 Class A-2 Senior Secured Floating Rate Notes Due December 2051 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Ba2, on review for possible downgrade Class Description: $76,000,000 Class B Senior Secured Floating Rate Notes Due December 2051 -- Prior Rating: Aa2, on review for possible downgrade -- Current Rating: Ba3, on review for possible downgrade Class Description: $48,000,000 Class C Secured Deferrable Interest Floating Rate Notes Due December 2051 -- Prior Rating: Ba1, on review for possible downgrade -- Current Rating: B2, on review for possible downgrade Class Description: $38,400,000 Class D Secured Deferrable Interest Floating Rate Notes Due December 2051 -- Prior Rating: Ba3, on review for possible downgrade -- Current Rating: Caa1, on review for possible downgrade Additionally, Moody's downgraded these notes: Class Description: $19,200,000 Class E Secured Deferrable Interest Floating Rate Notes Due December 2051 -- Prior Rating: B3, on review for possible downgrade -- Current Rating: Ca According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. BEAR STEARNS: Wants Court to Bar Ex-Employees from Taking Clients ----------------------------------------------------------------- Bear Stearns Companies Inc. seeks authority from the New York State Supreme Court for a preliminary injunction forbidding five former employees to take existing clients to their new employers, UBS AG and Morgan Stanley, Reuters reports. Amid investor dissatisfaction and lawsuit threats, Bear Stearns, Reuters says, is anxious that Peter Budd may entice clients to transfer to UBS and that Edward Moldaver, William Nash, Grant Devaul and Alexander Sugar may encourage clients to move its investments to Morgan Stanley. Bear Stearns argues that the former employees are breaching indenture understanding, Reuters relates citing court filings. The move also comes as Bear Stearns arranges an arbitration claim for the Financial Industry Regulatory Authority. As reported in the Troubled Company Reporter on March 26, 2008, Investors Wayne County Employees' Retirement System of Michigan and the Police and Fire Retirement System of the City of Detroit have asked the Delaware Chancery Court in Wilmington to issue a restraining order to prevent the purchase of 95 million new Bear Stearn Cos. Inc. shares by JPMorgan Chase & Co., which will close on April 8, 2008. Recently, JPMorgan and Bear Stearns disclosed an amended merger agreement regarding JPMorgan Chase's acquisition of Bear Stearns, increasing its bid from $2.32 per share to $10 per share, and the 95 million new stock issuance. The Wayne County fund complained that the Bear Stearn directors shouldn't have agreed to an unsubstantial deal with JPMorgan, instead, should have mulled over the sale of the company to the highest bidder. Joseph Lewis, Bear Stearn Companies Inc.'s major shareholder, plans to evaluate the proposed acquisition of the investment banker by J.P. Morgan Chase & Co. for $2.32 a share, or $339 million. 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 Cuts Ratings on 63 Tranches From 17 Deals --------------------------------------------------------------- Moody's Investors Service downgraded the ratings of sixty three tranches issued in seventeen transactions securitized by Bear Stearns. The collateral backing each tranche consists primarily of first lien adjustable-rate and fixed-rate subprime mortgage loans. The deals being reviewed have experienced an increasing proportion of severely delinquent loans. The timing of losses coupled with the passing of stepdown triggers for most of the transactions has caused the protection available to the subordinated bonds to be diminished. One tranche from Bear Stearns Asset Backed Securities I Trust 2005-HE6 was placed on review for possible further downgrade. The final outcome will depend on whether this transaction passes triggers and steps down, in which case the tranche is likely to be paid off; if the deal does not step down, this tranche is likely to suffer losses. Complete rating actions are: Issuer: Bear Stearns Asset Backed Securities Trust 2004-HE1 -- Cl. M-6, downgraded from Baa3 to B1 Issuer: Bear Stearns Asset Backed Securities Trust 2004-HE2 -- Cl. M-6, downgraded from Baa3 to B1 Issuer: Bear Stearns Asset Backed Securities Trust 2004-HE3 -- Cl. M-6, downgraded from Baa3 to B1 -- Cl. M-7, downgraded from Ba2 to Ca Issuer: Bear Stearns Asset Backed Securities I Trust 2004-HE4 -- Cl. M-1, downgraded from Aa2 to Aa3 -- Cl. M-2, downgraded from A2 to Baa2 -- Cl. M-3, downgraded from A3 to Ba1 -- Cl. M-4, downgraded from Baa1 to Ba3 -- Cl. M-5, downgraded from Baa2 to B2 -- Cl. M-6, downgraded from Baa3 to Caa1 Issuer: Bear Stearns Asset Backed Securities I Trust 2004-HE5 -- Cl. M-7, downgraded from Ba2 to B3 Issuer: Bear Stearns Asset Backed Securities I Trust 2004-HE6 -- Cl. M-6, downgraded from Baa3 to Ba2 -- Cl. M-7B, downgraded from Ba2 to Caa2 Issuer: Bear Stearns Asset Backed Securities I Trust 2004-HE7 -- Cl. M-6, downgraded from Baa3 to Ba2 -- Cl. M-7B, downgraded from Ba2 to B3 Issuer: Bear Stearns Asset Backed Securities I Trust 2004-HE8 -- Cl. M-3, downgraded from A3 to Baa2 -- Cl. M-4, downgraded from Baa1 to Baa3 -- Cl. M-5, downgraded from Baa2 to Ba2 -- Cl. M-6, downgraded from Baa3 to B1 -- Cl. M-7B, downgraded from Ba2 to Caa3 Issuer: Bear Stearns Asset Backed Securities I Trust 2004-HE9 -- Cl. M-5, downgraded from Baa2 to Ba1 -- Cl. M-6, downgraded from Baa3 to Ba3 -- Cl. M-7B, downgraded from Ba2 to Caa1 Issuer: Bear Stearns Asset Backed Securities I Trust 2004-HE10 -- Cl. M-6; downgraded from Baa3 to Ba1 -- Cl. M-7, downgraded from Ba2 to B2 Issuer: Bear Stearns Asset Backed Securities I Trust 2004-HE11 -- Cl. M-5; downgraded from Baa2 to Ba1 -- Cl. M-6; downgraded from Baa3 to B1 -- Cl. M-7; downgraded from Ba2 to Caa1 Issuer: Bear Stearns Asset Backed Securities I Trust 2005-HE1 -- Cl. M-5, downgraded from Baa2 to Ba1 -- Cl. M-6, downgraded from Baa3 to Ba3 -- Cl. M-7, downgraded from Ba2 to B3 Issuer: Bear Stearns Asset Backed Securities I Trust 2005-HE2 -- Cl. M-2, downgraded from A2 to Baa1 -- Cl. M-3, downgraded from A3 to Baa2 -- Cl. M-4, downgraded from Baa1 to Ba1 -- Cl. M-5, downgraded from Baa2 to Ba3 -- Cl. M-6, downgraded from Baa3 to B1 -- Cl. M-7, downgraded from Ba1 to B3 -- Cl. M-8, downgraded from Ba2 to Caa1 Issuer: Bear Stearns Asset Backed Securities I Trust 2005-HE3 -- Cl. M-2, downgraded from A2 to Baa1 -- Cl. M-3, downgraded from A3 to Baa3 -- Cl. M-4, downgraded from Baa1 to Ba2 -- Cl. M-5, downgraded from Baa2 to B1 -- Cl. M-6, downgraded from Baa3 to B2 -- Cl. M-7, downgraded from Ba1 to Caa1 -- Cl. M-8, downgraded from Ba2 to Caa2 Issuer: Bear Stearns Asset Backed Securities I Trust 2005-HE4 -- Cl. M-2, downgraded from A2 to Baa2 -- Cl. M-3, downgraded from A3 to Baa3 -- Cl. M-4, downgraded from Baa1 to Ba2 -- Cl. M-5, downgraded from Baa2 to B1 -- Cl. M-6, downgraded from Baa3 to B3 -- Cl. M-7, downgraded from Ba1 to Caa1 -- Cl. M-8, downgraded from Ba2 to Caa2 Issuer: Bear Stearns Asset Backed Securities I Trust 2005-HE5 -- Cl. M-4, downgraded from Baa1 to Baa2 -- Cl. M-5, downgraded from Baa2 to Ba1 -- Cl. M-6, downgraded from Baa3 to Ba3 -- Cl. M-7, downgraded from Ba1 to Caa1 -- Cl. M-8, downgraded from Ba2 to Caa2 Issuer: Bear Stearns Asset Backed Securities I Trust 2005-HE6 -- Cl. M-4, downgraded from Baa1 to Baa3 -- Cl. M-5, downgraded from Baa2 to Ba2 -- Cl. M-6, downgraded from Baa3 to B3 -- Cl. M-7, downgraded from Ba1 to Caa1 -- Cl. M-8A, downgraded from Ba2 to B2, Placed Under Review for further Possible Downgrade -- Cl. M-8B, downgraded from Ba2 to Caa2 BEAZER HOMES: Moody's Downgrades Ratings to 'B2' From 'B1' ---------------------------------------------------------- Moody's Investors Service lowered the ratings of Beazer Homes USA, Inc., including its corporate family rating to B2 from B1 and senior unsecured notes rating to B2 from B1. The ratings remain on review for possible further downgrade, continuing the review process that was initiated on Aug. 13, 2007. The downgrades and continuing review were prompted by these factors: i) Further deterioration in the already weak outlook for the homebuilding industry due to substantially tighter lending standards, diminished consumer confidence, rising repossessions, and falling home prices. Moody's does not expect to see homebuilders begin generating meaningful improvement in very many of their credit metrics before 2010 at the earliest; ii) Lingering uncertainty over the extent of the company's ultimate exposure to the ongoing investigations of its mortgage origination business by the US Attorney's Office in the Western District of North Carolina and by the SEC. iii) The unquantifiable potential charges for the myriad lawsuits that have been filed against the company pertaining to securities class actions, ERISA claims, and derivative shareholder actions. iv) Ambiguity regarding the company's actual financial position, as partially mitigated by disclosures regarding its liquidity, including Beazer's excess cash position, zero revolver usage (except for letters of credit), positive cash flow generation in part driven by inventory liquidation, and absence of any near-term debt maturities. If insufficient disclosure about the company's financial position persists past the current deadline for filing its financial statements of May 15, 2008, Moody's may consider either lowering the rating further or withdrawing the ratings entirely. Headquartered in Atlanta, Georgia, Beazer Homes USA, Inc. is one of the country's ten largest single-family homebuilders with operations in 21 states. Revenues and net income for the trailing twelve month period ended March 31, 2007, the last date on which the company filed financial statements, were $4.6 billion and $92 million. BELDEN INC: Mulls Closure of Manchester Plant by September 2008 --------------------------------------------------------------- Belden Inc. said it plans to further restructure its North American manufacturing operations and to reduce its worldwide production overhead and expenses. The company will cease production activities at its plant located in Manchester, Connecticut by September 2008. The facility manufactures copper cable products primarily for data networking. Other company facilities will assume the production activities of the plant. The Manchester plant is part of the company's Specialty Division. The number of associates affected by these actions is about 132. Associates will be eligible for severance benefits, and the company will make every effort to help associates transition into other employment opportunities. "We regret the impact of these actions on the affected associates," said John Stroup, President and Chief Executive Officer of Belden. "It is a difficult, but necessary step in the implementation of our regional manufacturing strategy. The expected cost savings associated with this action are further benefit of this strategy and take advantage of our lower cost capacity at the recently completed Nogales, Mexico facility." Belden expects to incur severance charges of about $1 million to $2 million pretax during the shut-down period and non-cash asset impairment charges and accelerated depreciation expense of $8 million to $11 million pretax mostly in the first quarter of 2008. The after-tax impact will be between $0.11 and $0.16 per diluted share. The company estimates that the cost savings associated with these actions will be approximately $5 million annually, beginning in 2009. About Belden Inc. Headquartered in St. Louis, Missouri, Belden Inc. (NYSE:BDC) -- http://www.belden.com/-- fka Belden CDT Inc., designs, manufactures, and markets signal transmission solutions for data networking and specialty electronics markets including entertainment, industrial, security and aerospace applications. * * * As reported in the Troubled Company Reporter on Feb. 15, 2008, Moody's Investors Service upgraded Belden Inc.'s corporate family ratings to Ba1 from Ba2. The rating outlook is stable. BFC AJAX: Moody's Cuts Five Note Ratings on Poor Credit Quality --------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by BFC Ajax CDO Ltd.: Class Description: $15,000,000 Class B Floating Rate Notes Due 2046 -- Prior Rating: Aa3, on review for possible downgrade -- Current Rating: Baa3, on review for possible downgrade Class Description: $10,000,000 Class X Deferrable Floating Rate Notes Due 2046 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ba3, on review for possible downgrade Class Description: $20,000,000 Class C Deferrable Floating Rate Notes Due 2046 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: B3, on review for possible downgrade Class Description: $40,000,000 Class D Deferrable Floating Rate Notes Due 2046 -- Prior Rating: Ba3, on review for possible downgrade -- Current Rating: Caa2, on review for possible downgrade Additionally, Moody's downgraded these notes: Class Description: $40,000,000 Class E Deferrable Floating Rate Notes Due 2046 -- Prior Rating: B2, on review for possible downgrade -- Current Rating: Ca According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. BFWEST LLC: Case Summary & Three Largest Unsecured Creditors ------------------------------------------------------------ Debtor: BFWest, LLC 1401 East Broward Boulevard, Suite 103 Fort Lauderdale, FL 33301 Tel: (954) 462-6944 Bankruptcy Case No.: 08-13528 Type of Business: The Debtor is part of BuilderFinancial Corp., a privately-held specialty finance company that facilitates the financing of residential real estate transactions by providing mezzanine financing to builders. It holds a portfolio of acquisition, development and construction loans. See http://www.builderfinancial.com/ Chapter 11 Petition Date: March 26, 2008 Court: Southern District of Florida (Fort Lauderdale) Judge: Raymond B. Ray Debtor's Counsel: Eyal Berger, Esq. (eberger@kpkb.com) Michael D. Seese, Esq. (mseese@kpkb.com) Kluger, Peretz, Kaplan & Berlin, PL 201 South Biscayne Boulevard, 17th Floor Miami, FL 33131 Tel: (305) 379-9000 Fax: (305) 351-3801 http://www.kpkb.com/ Estimated Assets: $100 million to $500 million Estimated Debts: $100 million to $500 million Debtor's Three Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ BFSPE, LLC outstanding debt $58,123,045 1401 East Broward Boulevard, Suite 103 Fort Lauderdale, FL 33301 Builder Funding, LLC outstanding debt $32,496,116 1401 East Broward Boulevard, Suite 103 Fort Lauderdale, FL 33301 WestLB AG, New York Branch loan $114,857,413 1211 Avenue of the Americas New York, NY 10036 BLUE EDGE: Moody's Downgrades Ratings on 11 Classes of 2050 Notes ----------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Blue Edge ABS CDO Ltd.: Class Description: Up to $1,076,250,000 Class A-1 Floating Rate Notes Due 2050 -- Prior Rating: Aaa -- Current Rating: Aa1, on review for possible downgrade Class Description: $50,000,000 Class A-2 Floating Rate Notes Due 2050 -- Prior Rating: Aaa -- Current Rating: A1, on review for possible downgrade Class Description: $61,875,000 Class A-3 Floating Rate Notes Due 2050 -- Prior Rating: Aaa -- Current Rating: A2, on review for possible downgrade Class Description: $8,322,222 Class B-1 Floating Rate Notes Due 2050 -- Prior Rating: Aa2 -- Current Rating: A3, on review for possible downgrade Class Description: $4,177,778 Class B-2 Fixed Rate Notes Due 2050 -- Prior Rating: Aa2 -- Current Rating: A3, on review for possible downgrade Class Description: $33,750,000 Class C Deferrable Interest Floating Rate Notes Due 2050 -- Prior Rating: Baa1, on review for possible downgrade -- Current Rating: Ba1, on review for possible downgrade Class Description: $3,900,000 Class D-1 Deferrable Interest Floating Rate Notes Due 205