T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, April 1, 2008, Vol. 12, No. 77 Headlines AAMES MORTGAGE: Fitch Cuts Rating to BB from BBB- on $4.1MM Certs. ABERDEEN LOAN: S&P Attaches 'BB' Rating on $17.25 Mil. Class Notes ABITIBIBOWATER INC: Exchange Offer for Senior Notes Ends April 4 ABITIBIBOWATER INC: Noteholder Withdrawal Rights in Offer Expires ABITIBIBOWATER INC: Inks Agreement for Private Placement of $350MM ACUSPHERE INC: Deloitte & Touche Expresses Going Concern Doubt AGY HOLDING: 11% Lien Notes Amendment Gets Noteholders' Consent ALESCO FINANCIAL: December 31 Balance Sheet Upside-Down by $2.4BB AMERICAN BIO FUEL: Voluntary Chapter 11 Case Summary AMERICAN HOME: Court Extends Plan Filing Due Date to June 2 AMPEX CORPORATION: Seeks Relief Under Chapter 11 AMPEX CORPORATION: Case Summary & 51 Largest Unsecured Creditors ASCALADE COMMS: Court OKs Sale of Richmond Property for $8.4 Mil. ASCALADE COMMS: British Columbia Court OKs $8MM Sale of Property ASCENDIA BRANDS: Joseph A. Falsetti Resigns as Executive Chairman BALLY TOTAL: Commences Cash Distribution to Former Stockholders BANK OF AMERICA: Stable Performance Cues Fitch to Hold Ratings BELDEN & BLAKE: Posts $35.3 Million Net Loss in Year Ended Dec. 31 BERNOULLI HIGH: Moody's Junks Ratings on Seven Classes of Notes BRASIL TELECOM: Moody's Reviews 'Ba1' Note Rating for Likely Lift CALPINE CORP: Canadian Monitor Reports Updates on CCAA Proceedings CALPINE CORP: Initial Market Capitalization Valued at $8.6 Billion CALPINE CORP: Charles Clark Steps Down as Vice President CARDIMA INC: To Restate Financial Statements Due to Errors CATHOLIC CHURCH: Century Amends Objection to Disclosure Statement CATHOLIC CHURCH: Fairbanks May Employ CSG as Special Counsel CATHOLIC CHURCH: Fairbanks Amends Motion to Hire Keegan Linscott CATHOLIC CHURCH: Fairbanks May Employ Quarles & Brady as Counsel CATHOLIC CHURCH: Spokane's Plan Trustee Wants Bond Amount Cut CBRL GROUP: Weak Credit Metrics Prompts S&P's Rating Cuts to 'BB-' CENTENNIAL COMMS: Feb. 29 Blanace Sheet Upside Down by $1.062 Bil. CENTEX HOME: Fitch Chips Ratings on $582.9 Million Certificates CHAMPION AIR: To Shut Down Operations by End of May CHAMPION ENTERPRISES: To Shut Down Plants in Silverton & LaGrange CHARTER COMM: Unit Completes $546MM Sale of 10.875% 2nd Lien Notes CHARYS HOLDING: Wants Milbank Tweed as Bankruptcy Counsel CITADEL BROADCASTING: Has $848MM Net Loss in 4th Qtr. Ended 2007 CLEAR CHANNEL: Banks Want NY State Court to Dismiss Lawsuit CLEARWATER FUNDING: Low Credit Quality Cues Moody's Rating Reviews COMSTOCK HOMEBUILDING: Incurs $87.5 Mil. Net Loss for Fiscal 2007 COUNTRYWIDE FINANCIAL: Feds to Study Benefits of BofA Acquisition CREDIT SUISSE: Fitch Affirms Low-B Ratings on Five Cert. Classes CROSSWINDS AT LONE: U.S. Trustee Appoints Three-Member Committee CROSSWINDS AT LONE: Files Schedules of Assets and Liabilities CSFB HOME: Fitch Junks Ratings on 10 Certificate Classes CVR ENERGY: Posts $57 Million Net Loss in Year Ended December 31 CWABS: Fitch Downgrades Ratings on $158.2 Million Certificates DELPHI CORP: Can Continue Implementing Employee Compensation Plan DELPHI CORP: Wants to Extend Indemnification Agreement with GM DISTRIBUTED ENERGY: PwC Raises Going Concern Doubt Due to Losses DLJ MORTGAGE: Fitch Retains 'C' Ratings on Two Certificate Classes EIF CALYPSO: S&P Puts 'BB+' Rating on $650MM and $150MM Facilities ELLEGY PHARMA: Mayer Hoffman Expresses Going Concern Doubt EMPIRE RESORTS: Board of Directors Adopts Stockholder Rights Plan FEDERAL-MOGUL: G. Michael Lynch Retires; Jeff Kaminski is New CFO FEDERAL-MOGUL: Professionals Seek Postpetition Fees and Expenses FEDDERS CORP: Michael Giordano Steps Down as President and CEO FINANCIAL GUARANTY: Moody's Cuts Insurer Strength Rating to 'Baa3' FINANCIAL GUARANTY: Howard C. Pfeffer Tenders Retirement Notice FINANCIAL GUARANTY: S&P Slashes Financial Strength Rating to 'BB' FORD MOTOR: Partners with Ontario Government to Save 300 Jobs FORTUNOFF: Panel Taps Morrison & Foerster to Replace Otterbourg FORTUNOFF: Court OKs Panel's Limited Engagement of Otterbourg FORTUNOFF: Mahoney Cohen Serves as Committee's Financial Advisor FRONTIER DRILLING: Concerns on Funding Spurs S&P's Negative Watch GENERAL MOTORS: Ex-Unit Delphi Wants Indemnification Pact Extended GREENWICH 2007-GG9: Fitch Affirms 'B-' Rating on $8.22MM Certs. HOOP HOLDINGS: Has Interim Court Nod to Use Wells Fargo Collateral HOOP HOLDINGS: Gets Initial Nod to Use Wells Fargo's $35 Mil. Loan HSBC FINANCE: KVAM Urges HSBC to Shed Off Burdensome U.S. Unit IDEARC INC: S&P Assigns 'BB' Corp. Rating on CreditWatch Negative INTEREP NATIONAL: Files for Bankruptcy; To Restructure $99MM-Debt INTERTAPE POLYMER: Posts $8.3 Mil. Net Loss for Fiscal Year 2007 INTERTAPE POLYMER: Secures $200MM Senior Secured Credit Facility INTERTAPE POLYMER: Enters Into $200 Million Senior Credit Facility IVANHOE ENERGY: Management Expresses Going Concern Doubt KKR FINANCIAL: Avoids Default by Turning Over AAA-Rated Securities LAZY DAYS: Weak Performance Prompts Moody's Rating Cuts to 'B3' MANIS LUMBER: Taps Thomas Richardson to Give Collection Services MANIS LUMBER: Committee Wants Miller Canfield as Lead Counsel MANIS LUMBER: Committee Taps James C. Frenzel PC as Co-Counsel MAUDE HENDERSON: Voluntary Chapter 11 Case Summary MAXUM PETROLEUM: Moody's Holds 'B2' Rating; Gives Negative Outlook MICHAEL BREEN: Case Summary & Largest Unsecured Creditor MIGENIX INC: Posts CN$3.4 Million Net Loss in Qtr. Ended Jan. 31 MILLENIUM IMAGING: Voluntary Chapter 11 Case Summary MOVIDA COMMS: Case Summary & 20 Largest Unsecured Creditors NEW CENTURY: Examiner Suggests Actions Against Officers & KMPG LLP NEXSTAR FINANCE: Moody's Chips Probability of Default Rating to B3 NOMURA ASSET: Fitch Cuts Rating to BB from BB+ on Cl. B-6 Certs. NOVELIS INC: S&P Changes Outlook to Stable; Confirms 'BB-' Rating POWERMATE HOLDING: Court OKs Retention of Kurtzon as Claims Agent POWERMATE HOLDING: Section 341(a) Meeting Scheduled for April 25 QUEBECOR WORLD: Court OKs Prepetition Payments to 376 Managers QUEBECOR WORLD: Silvex Seeks Recovery from Insurance Claims QUEBECOR WORLD: Wants to Employ Three Real Estate Consultants QUEBECOR WORLD: Shutting Down Magazine Facility in Magog, Quebec RECKSON OPERATING: S&P Holds 'BB+' Senior Unsecured Debt Ratings RED HAT: Revenue Growth Cues S&P's Rating Upgrade to 'BB-' From B+ REMOTE DYNAMICS: Posts Approximately $8 Mil. Stockholder's Deficit SCOTTISH RE: Postpones 2007 Earnings Release and Form 10-K Filing SCOTTISH RE: S&P Says Notice of Late Filing Won't Move Its Ratings SECURITY CAPITAL: XLCA's 'BB' Rating Cues Fitch's Actions on Bonds SEQUOIA MORTGAGE: Fitch Puts 'BB' Rating Under Negative Watch SG MORTGAGE: Fitch Lowers Ratings on Ten Certificate Classes SIMMONS BEDDING: Moody's Gives Negative Outlook; Holds All Ratings SIMMONS CO: Earns $6 Million in Fourth Quarter Ended December 29 SIRIUS SATELLITE: State Counsels Balk at DOJ Approval of XM Merger SOTHEBY: S&P Assigns 'BB+' Corp. Rating on CreditWatch Positive SPANSION INC: Completes Acquisition of Saifun Semiconductors SPYRUS INC: Judge Sontchi Approves $2 Million DIP Financing TENFOLD CORP: Enters Merger Agreement with Versata Enterprises THORNBURG MORTGAGE: Completes $1.35 Bil. Offering of Secured Notes TLC FUNDING: Moody's Withdraws All Ratings on Amedisys Acquisition TLC VISION: Raises Going Concern Doubt on OccuLogix Unit TOUSA INC: Files Motion to Extend Removal Period to July 27 TRI VANTAGE: Voluntary Chapter 11 Case Summary UNITED HERITAGE: Nasdaq Says Stocks Listing Rely on $2.5MM Equity US DRY CLEANING: Signs $1.9 Million Merger Deal with Zoots Corp. US AIRWAYS: Employees to Get $49 Million in Profit Sharing US AIRWAYS: To Open Separate Talks with America West Pilots US AIRWAYS: Reaches Tentative Unified Mechanics Pact with IAM UTAH 7000: Involuntary Chapter 11 Case Summary VERENIUM CORP: Ernst & Young Expresses Going Concern Doubt VERMILLION INC: Market Value Non-Compliance Cues Stocks Delisting VISIPHOR CORP: Designates Michael Goffin to Board of Directors WHITE CEDAR: Case Summary & Largest Unsecured Creditor WISCONSIN AUTHORITY: Case Summary & 2 Largest Unsecured Creditors WORNICK CO: Ad Hoc Committee Balks Disclosure Statement XM SATELLITE: State Counsels Balk at DOJ Approval on Sirius Merger * S&P Downgrades Ratings on 81 Classes From 21 RMBS Transactions * Fitch Says US CMBS Delinquencies Rose to 0.30% on February * FTI Widens UK Presence with Forensic Accounting Buyout * Bankruptcy Firm Watson & Maynez Starts El Paso, Texas Operation * Large Companies with Insolvent Balance Sheets ********* AAMES MORTGAGE: Fitch Cuts Rating to BB from BBB- on $4.1MM Certs. ------------------------------------------------------------------ Fitch Ratings has taken rating actions on Aames Mortgage Investment Trust mortgage pass-through certificates. Affirmations total $99 million and downgrades total $4.1 million. Additionally, $4.1 million was placed on Rating Watch Negative. Break Loss percentages and Loss Coverage Ratios for each class are included with the rating actions as: Aames Mortgage Investment Trust 2005-3 -- $28.6 million class I-A-1 affirmed at 'AAA', (BL: 83.08, LCR: 13.97); -- $35.7 million class I-A-2 affirmed at 'AAA', (BL: 51.59, LCR: 8.67); -- $11.0 million class I-A-3 affirmed at 'AAA', (BL: 42.73, LCR: 7.18); -- $7.6 million class M-1 affirmed at 'AA+', (BL: 35.66, LCR: 5.99); -- $6.4 million class M-2 affirmed at 'AA', (BL: 29.41, LCR: 4.94); -- $1.5 million class M-3 affirmed at 'AA-', (BL: 27.86, LCR: 4.68); -- $1.6 million class M-4 affirmed at 'A+', (BL: 26.18, LCR: 4.4); -- $1.4 million class M-5 affirmed at 'A', (BL: 24.67, LCR: 4.15); -- $2.0 million class M-6 affirmed at 'A-', (BL: 22.38, LCR: 3.76); -- $1.3 million class B-1 affirmed at 'BBB+', (BL: 20.81, LCR: 3.5); -- $2.0 million class B-2 affirmed at 'BBB', (BL: 18.24, LCR: 3.07); -- $4.1 million class B-3 downgraded to 'BB' from 'BBB-', placed on Rating Watch Negative (BL: 7.89, LCR: 1.33). Deal Summary -- Originators: Aames Investment Corporation (77.78%) -- 60+ day Delinquency: 6.24% -- Realized Losses to date (% of Original Balance): 0.93% -- Expected Remaining Losses (% of Current balance): 5.95% -- Cumulative Expected Losses (% of Original Balance): 4.37% The rating actions are based on changes that Fitch has made to its subprime loss forecasting assumptions. The updated assumptions better capture the deteriorating performance of pools from 2007, 2006 and late 2005 with regard to continued poor loan performance and home price weakness. ABERDEEN LOAN: S&P Attaches 'BB' Rating on $17.25 Mil. Class Notes ------------------------------------------------------------------ Standard & Poor's Ratings Services assigned its ratings to Aberdeen Loan Funding Ltd. and Aberdeen Loan Funding Corp.'s $467.25 million notes. Aberdeen Loan Funding Ltd. and Aberdeen Loan Funding Corp. is a collateralized loan obligation with a seven-year reinvestment period that is managed by Highland Capital Management L.P. The closing portfolio's weighted average purchase price is 87.4% of par. The liabilities' weighted average sale price is 88.28%. The ratings reflect: -- Adequate credit support provided by overcollateralization, subordination, and excess spread; -- The characteristics of the underlying collateral pool, which consists primarily of non-investment-grade rated senior secured loans, second-lien loans, bonds, and structured finance obligations, up to 20% of which may be referenced synthetically or represent participation interests; -- Scenario default rates of 54.13% for class A and B, 48.23% for class C, 43.1% for class D, and 36.56% for class E; and break-even loss rates of 67.78% for class A, 59.23% for class B, 56.69% for class C, 49.98% for class D, and 38.9% for class E; -- A weighted average rating of 'B'; -- A weighted average maturity for the portfolio of 5.6 years; -- An S&P default measure of 5.47%; -- An S&P variability measure of 3.24%; and -- An S&P correlation measure of 2.00. Interest on the class C, D, and E notes may be deferred up until the legal final maturity date in November 2018 without causing a default under these obligations. The ratings on these notes, therefore, address the ultimate payment of interest and principal. Ratings Assigned Aberdeen Loan Funding Ltd. Aberdeen Loan Funding Corp. Class Rating Amount (million) ----- ------ ---------------- A AAA $376.00 B AAA $29.50 C A $25.25 D BBB $19.25 E BB $17.25 Class I preferred shares NR $12.00 Class II preferred shares NR $36.00 NR -- Not rated. ABITIBIBOWATER INC: Exchange Offer for Senior Notes Ends April 4 ---------------------------------------------------------------- AbitibiBowater Inc. said that Abitibi-Consolidated Company of Canada, its indirect subsidiary, has extended the withdrawal deadline for its exchange offers for 6.95% senior notes due 2008, 5.25% senior notes due 2008 and 7.875% senior notes due 2009. The exchange offers will expire at 12:00 midnight, New York City time, on Friday, April 4, 2008. The withdrawal deadline for the exchange offers was extended until March 27, 2008, and the withdrawal deadline expired on March 26, 2008. Neither the consent payment deadline nor the expiration date for the exchange offers has been modified. Investors Agree to Senior Notes Restructuring The Canadian Press reports that AbitibiBowater's investors consented to the restructuring of the company's senior notes aggregating $496 million. The report says that as of March 27, 2008, investors surrendered between 89.3% and 93.2% of the notes. The senior notes restructuring is under AbitibiBowater's plan to secure $1.4 billion additional capital, Canadian Press relates. The exchange offers were being made only to qualified institutional buyers and institutional accredited investors inside the United States and to certain non-U.S. investors located outside the United States. As reported in the TCR on March 28, 2008, AbitibiBowater Inc. disclosed in its 2007 annual report that Abitibi-Consolidated Inc.'s independent auditor PricewaterhouseCoopers LLP in Montreal, Quebec, Canada, expressed substantial doubt about Abitibi's ability to continue as a going concern. 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. 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 range of forest products marketed in more than 80 countries around the world. The company's customers include many publishers, commercial printers, retailers, consumer products companies and building supply outlets. AbitibiBowater is also a recycler of newspapers and magazines. The company owns or operates 32 pulp and paper mills and 35 wood products facilities in North America and offshore. The company manages its business in five segments: coated papers, specialty paperBs, newsprint, market pulp and lumber. ABITIBIBOWATER INC: Noteholder Withdrawal Rights in Offer Expires ----------------------------------------------------------------- AbitibiBowater Inc. disclosed that the withdrawal rights of noteholders in the exchange offers by Abitibi-Consolidated Company of Canada, a subsidiary of AbitibiBowater, expired at 5:00 p.m. New York City time, on March 27, 2008. These exchange offers are for the 6.95% Senior Notes due 2008, 5.25% Senior Notes due 2008 and 7.875% Senior Notes due 2009. As of the withdraw deadline, approximately 89.3% of the outstanding 6.95% Senior Notes, 91.8% of the outstanding 5.25% Senior Notes and 93.2% of the outstanding 7.875% Senior Notes had been validly tendered in the exchange offers. Based on these preliminary results, ACCC has elected to waive the minimum tender condition with respect to the exchange offers. The exchange offers expire at 12:00 midnight, New York City time, on April 4, 2008. The exchange offers were made only to qualified institutional buyers and institutional accredited investors inside the United States and to certain non-U.S. investors located outside the United States. 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 27, 2008, Moody's Investors Service assigned a B1 rating to the proposed new $450 million secured term loan at Abitibi-Consolidate Inc's subsidiary Abitibi-Consolidated Company of Canada. At the same time, Moody's affirmed Abitibi's corporate family rating of Caa1, the probability-of-default rating of Caa3, the senior unsecured ratings of Caa2 and the B1 rating assigned to the new $415 million secured notes due 2011. In addition, Abitibi's speculative grade liquidity rating was affirmed at SGL-4 and the rating outlook remains negative. ABITIBIBOWATER INC: Inks Agreement for Private Placement of $350MM ------------------------------------------------------------------ AbitibiBowater Inc. disclosed on March 24, 2008, that it has entered into a definitive agreement with Fairfax Financial Holdings Limited for an investment by Fairfax and its designated subsidiaries in AbitibiBowater of $350 million in the form of unregistered convertible debentures. This transaction, which is part of the company's previously announced $1.4 billion refinancing plan, is expected to address upcoming debt maturities and general liquidity needs of its Abitibi-Consolidated Inc. subsidiary. There is no financing condition to the obligations of Fairfax to fund the transaction. The $350 million of convertible debentures is convertible into AbitibiBowater common shares at $10.00 per share, carries an 8% cash coupon, has an ability for the company to pay interest in the form of additional "pay-in-kind" debentures at a rate of 10%, and has a subsidiary guarantee. The debentures have a maturity of 5 years and are non-callable. The transaction is subject to certain conditions, including the receipt of various lender consents and the closing of the other components of the company's $1.4 billion refinancing plan. Under the Fairfax Purchase Agreement, Fairfax will have the right to appoint two directors to the Board of Directors of the company. In connection with the approval of the Fairfax transaction by the Board of Directors of AbitibiBowater, and pursuant to an exception provided by the New York Stock Exchange stockholder approval policy, the Audit Committee of AbitibiBowater determined that a delay in the transaction in order to secure stockholder approval of the issuance of the convertible debentures, given the pending maturities of Abitibi-Consolidated's April 1 and June 20, 2008 senior notes, as well as the current state of the credit and capital markets, could seriously jeopardize the financial viability of AbitibiBowater. Accordingly, AbitibiBowater's Board of Directors and Audit Committee expressly approved the company's decision not to seek stockholder approval of the issuance of the convertible debentures to Fairfax. The New York Stock Exchange has accepted AbitibiBowater's reliance on the exception and the company, in reliance upon this exception, is mailing a letter to all stockholders notifying them of its intention to issue the convertible debentures without their prior approval. About Fairfax Fairfax Financial Holdings Limited (TSX and NYSE: FFH) is a financial services holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management. 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. As reported in the Troubled Company Reporter on March 28, 2008, 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." ACUSPHERE INC: Deloitte & Touche Expresses Going Concern Doubt -------------------------------------------------------------- Deloitte & Touche LLP in Boston raised substantial doubt about the ability of Acusphere, Inc. to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2007. The auditor pointed to the company's recurring losses from operations, negative cash flows from operations, and the projected funding needed to sustain its operations The company posted a net loss of $53,730,000 on total sales of $2,667,000 for the year ended Dec. 31, 2007, as compared with a net loss of $61,089,000 on total sales of $1,781,000 in the prior year. At Dec. 31, 2007, the company's balance sheet showed $52,020,000 in total assets, $28,280,000 in total liabilities and $23,740,000 in stockholders' equity. Going Concern Management stated that as of Dec. 31, 2007, the company had cash and equivalents of $26,100,000. During the 12 months ended Dec. 31, 2007, operating activities used $41,700,000 of cash. Before the end of the second quarter of 2008, the company will require significant additional funds in order to fund operations. As a result of its limited capital resources, the company may elect to delay the funding of certain development activities, which could harm its financial condition and operating results. The depletion of its resources may make future funding more difficult or expensive to attain. The company may raise additional funds through public or private sales of equity or from borrowings or from strategic partners. Future capital requirements will depend on many factors including the scope and progress made in research and development activities and the size and timing of creating expanded manufacturing capabilities. There are no assurances, however, that the company will be able to obtain additional financing on favorable terms, or at all, or successfully market its products. If the company is unable to execute its operations according to its plans or to obtain additional financing, it may be forced to cease operations. "We are focused on product development and we have not generated any revenue from commercial sales of our products to date. We have incurred losses each year of our operations. In 2007, we had a net loss available to holders of common stock of $56 million. At Dec. 31, 2007, we had an accumulated deficit of $334.9 million. We expect our research and development, general and administrative and sales and marketing expenses will increase over the next several years," the company said. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?2999 About Acusphere Based in Watertown, Mass., Acusphere, Inc. (NasdaqGM:ACUS) -- http://www.acusphere.com/-- a specialty pharmaceutical company, develops new drugs and formulations of existing drugs using its proprietary porous microparticle technology in the United States. Its porous microparticle technology enables to control the size and porosity of particles, including nanoparticles and microparticles. The company develops products in the areas of cardiology, oncology, and asthma. Its lead product candidate Imagify, a cardiovascular drug, is in Phase 3 clinical development for the detection of coronary artery disease. The company's products also include AI-850, a Phase 1 clinical trial completed product candidate that utilizes hydrophobic drug delivery system to improve the dissolution rate of a cancer drug; AI-128, a Phase 1 clinical study completed formulation of asthma drug. Acusphere was founded in 1993. AGY HOLDING: 11% Lien Notes Amendment Gets Noteholders' Consent --------------------------------------------------------------- AGY Holding Corp. received consents from noteholders representing in excess of a majority in principal amount of its outstanding 11% Senior Second Lien Notes due 2014. As reported in the Troubled Company Reporter on March 20, 2008, AGY Holding was soliciting consents to certain proposed amendments to the indenture governing its 11% senior second lien notes due 2014, and the intercreditor agreement and consignment agreement related to the indenture. After receipt of the consents, the company and certain of its subsidiaries executed a supplemental indenture and amendments to the intercreditor agreement and consignment agreement providing for the amendments. The amendments are operative with respect to all noteholders, including those noteholders who did not consent to the amendments. Requests for documents should be directed to Global Bondholder Services Corporation at (866) 873-6300 or (212) 430-3774. UBS Securities LLC is serving as Solicitation Agent for the consent solicitation. Questions concerning the terms of the consent solicitation should be directed to UBS Securities LLC, Liability Management Group at (888) 719-4210 or (203) 719-4210. About AGY Holding Headquartered in Aiken, South Carolina, AGY Holding Corporation -- http://www.agy.com/-- manufactures materials used in automotive, construction, defense, electronics, aerospace, marine, andrecreation markets. AGY has a European office in Lyon, France, and manufacturing 0facilities in Aiken, South carolina and Huntingdon, Pennsylvania. * * * Moody's Investor Service placed AGY Holding Corporation's senior secured debt rating at 'B2' in October 2006. The rating still holds to date with a stable outlook. ALESCO FINANCIAL: December 31 Balance Sheet Upside-Down by $2.4BB ----------------------------------------------------------------- Alesco Financial Inc.'s balance sheet at Dec. 31, 2007, showed total assets of $8.935 billion and total liabilities of $11.334 billion, resulting total stockholders' deficit of $2.399 billion. The company reported financial results for the three and twelve- months ended Dec. 31, 2007. AFN reported a generally accepted accounting principle or GAAP net loss for the three-months ended Dec. 31, 2007, of $729.3 million compared to net income of $3.6 million for the three-months ended Dec. 31, 2006. AFN reported a GAAP net loss for the twelve-months ended Dec. 31, 2007 of $1.3 billion as compared to net income of $22.0 million, for the period from Jan. 31, 2006, through Dec. 31, 2006. The significant losses during the three-months and twelve-months ended Dec. 31, 2007, are due to non-cash charges of approximately $775 million and $1.4 billion, arising from write downs in the fair value of mortgage backed sities, other CDO investments and TruPS investments. Liquidity and Capital Markets Transactions As of Dec. 31, 2007, AFN's consolidated financial statements include $80.2 million of available, unrestricted cash and cash equivalents. This amount includes $18.8 million of cash dividends that were paid to AFN shareholders on Jan. 10, 2008. Management has evaluated AFN's current and forecasted liquidity and continues to monitor evolving market conditions. Future investment alternatives and operating activities will continue to be evaluated against anticipated current and longer term liquidity demands. As of Dec. 31, 2007, AFN's consolidated financial statements include $95.5 million of restricted cash and warehouse deposits. The $95.5 million is restricted for these purposes: -- $5.0 million first-loss deposit on an Emporia leveraged loan warehouse facility; -- $47.6 million at consolidated CDO entities to be used to acquire additional assets; and -- $42.9 million of undistributed cash flow from operations at consolidated CDO entities. Share Repurchase On Aug. 3, 2007, AFN's board of directors approved a share repurchase plan that authorizes AFN to purchase up to $50 million of AFN common shares. Under the plan, AFN may make purchases from time to time through open market or privately negotiated transactions. The timing and exact number of shares purchased will be determined at AFN's discretion and will depend on market conditions. This plan may be modified or discontinued at any time. During the three-months ended Dec. 31, 2007, AFN did not repurchase shares of its common stock. Dividend Summary AFN disclosed a cash dividend for the quarter ended March 31, 2008, of $0.25 per common share. The dividend will be payable on April 10, 2008, to shareholders of record as of the close of business on March 20, 2008. The ex-dividend date was March 18, 2008. About Alesco Financial Inc. Headquartered in Philadelphia, Pennsylvania, Alesco Financial Inc. (NYSE:AFN) -- http://www.alescofinancial.com/-- is a specialty finance company, which operates as a real estate investment trust. AFN makes investments in real estate-related and other securities. AFN's portfolio consists of investments in trust preferred securities, mortgage backed securities and corporate loan obligations. AFN is externally managed by Cohen & Company, an investment banking and asset management firm focusing on lending to the real estate and financial services industries. AMERICAN BIO FUEL: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: American Bio Fuel, Inc. 5016 Strummer Drive Fort Worth, TX 76180 Bankruptcy Case No.: 08-41392 Type of Business: The Debtor sells petroleum products in wholesale. Chapter 11 Petition Date: March 31, 2008 Court: Northern District of Texas (Ft. Worth) Judge: Russell F. Nelms Debtor's Counsel: Clifford Franklin McMaster, Esq. (cfmcmaster@sbcglobal.net) 309 West 7th Street, No. 1400 Fort Worth, TX 76102 Tel: (817) 335-8080 Fax: (817) 429-3371 Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The Debtor did not file a list of its largest unsecured creditors. AMERICAN HOME: Court Extends Plan Filing Due Date to June 2 ----------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware extends the exclusive periods for American Home Mortgage Investors Corp. and its debtor-affiliates to file a plan of reorganization through June 2, 2008, and solicit and obtain acceptances for that plan through July 31, 2008. James L. Patton, Jr., Esq., at Young Conaway Stargatt & Taylor, LLP, in Wilmington, Delaware, said that lots of things must be done in the bankruptcy cases before any party will be in a position to file a Plan and accompanying disclosure statement. He adds that the Debtors, in consultation with the Official Committee of Unsecured Creditors, have determined to seek the 90- day extension. Mr. Patton related that the Debtors have begun, but not yet completed, negotiations with the Creditors Committee regarding the terms of a consensual Plan or Plans based on adequate information. He, however, pointed out that they have accomplished several things since December 2007: (a) The Debtors have spent time working with AH Mortgage Acquisition Co., Inc., to facilitate the effective transition of the Servicing Business; (b) The Debtors have focused on maximizing the value of, and minimizing the administrative burdens related to, the their other major assets, like, among other things, marketing and selling loans and analyzing an efficient and the appropriate disposition of the 1,500,000 mortgage loan files they held through a third party vendor; (c) The Debtors have focused their time and resources towards maximizing the value of the bankruptcy estates through the disposition of their major assets, including: -- creation of non-debtor business entities for the transition of the Servicing Business to AHM Acquisition; -- consummation of a sale with Indymac Bank F.S.B.; -- approval of procedures to return mortgage loan files to owners or master servicers of the mortgage loans; -- compromise of certain loans to obtain a greater value for the estates; and -- approval of procedures to maximize the sale value for certain non-performing loans; and (d) The Debtors have expended substantial time and resources addressing the numerous pending adversary proceedings and related discovery matters. Mr. Patton said that, despite the Debtors' accomplishments, the the current Exclusive Periods did not provide them with an adequate opportunity to develop and negotiate a Plan. The contested nature of nearly every facet of the cases has prevented the Debtors and their professionals from devoting significant attention to the preparation and negotiation of a Plan, he said. In addition, the Debtors have had to work with or litigate with numerous large financial entities and other parties-in-interest to obtain approval of the sale of the mortgage loan servicing business. Moreover, the Debtors received various notices of purported defaults from parties to master servicing agreements. Mr. Patton told the Court that there are a variety of other tasks that lie ahead of the Debtors. The Debtors still have numerous other assets that may be marketed and sold, including their (i) federally chartered thrift and bank, which will need to be sold in a manner consistent with strict regulatory guidelines; (ii) certain whole loans; and (iii) certain other real estate holdings, like their Melville, New York, corporate headquarters. The resolution of asset sales and the review and analysis of claims will be determinative of the value available to the Debtors' creditors, and must be considered in the formulation of any Chapter 11 plan, Mr. Patton said. 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 Bankruptcy News, Issue No. 31; Bankruptcy Creditors' Service, Inc., Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMPEX CORPORATION: Seeks Relief Under Chapter 11 ------------------------------------------------ Ampex Corporation and its U.S. subsidiaries filed voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code, according to a regulatory filing with the U.S. Securities and Exchange Commission. Prior to filing, the company negotiated with and obtained the support of the majority of its secured creditors and its largest unsecured creditor for the terms of a pre-negotiated plan of reorganization, as evidenced by the plan support agreement filed contemporaneously with the company's voluntary petitions for relief under Chapter 11. Concurrently with the commencement of these cases, the company filed a motion for approval of the disclosure statement with respect to the Plan and related solicitation procedures. The company believes that it will emerge from Chapter 11 no later than fall 2008. During the Chapter 11 proceedings, the company will continue to operate its business without interruption as a debtor- in-possession. All of the company's employees will be retained, offices and manufacturing facilities will remain open and all customer support and warranty programs will continue as planned. Upon emergence from Chapter 11, Hillside Capital Incorporated , the company's largest secured and unsecured creditor, will provide new financing to the Company that will be used for working capital purposes, to repay certain long term obligations, including certain senior secured notes, and to fund future pension obligations. Ampex began to report in July 2007 that it might be forced to take this action in order to facilitate an orderly financial restructuring. As was disclosed in its filings with the Securities and Exchange Commission over the previous months, Ampex has been negotiating a consensual refinancing of certain notes that were issued to Hillside over the past several years with respect to pension contributions made by Hillside for the benefit of the Companys defined benefit plans. The Plan is the result of months of arm's- length negotiations between the company, Hillside and holders of a majority of the face amount of the Companys senior secured notes. The overall purpose of the Plan is to provide for the restructuring of the company's liabilities in a manner designed to maximize recovery to all stakeholders and to enhance the company's financial viability by de-levering the company's capital structure, providing additional liquidity and arranging a long- term financing solution to future pension contributions that does not over-leverage the Company in future years. Under the Plan, it is contemplated that trade creditors will remain unaffected and will continue to receive cash payments as their claims become due in the ordinary course. Because the company's debt exceeds the amount of its assets, its existing common stock currently has no value, and therefore will be cancelled on the effective date of the Plan. Under the terms of the proposed Plan, new equity in the reorganized company will be issued to certain creditors. Although holders of existing common stock will not receive new equity under the Plan, those holders that do not object to the Plan may be eligible to receive some consideration. The Plan also contemplates that the new equity in the reorganized Company will not be registered or traded on any public exchange. "Ampex Data Systems Corporation will continue to sell and service data acquisition and instrumentation recorders and we will continue to license our intellectual property to manufacturers of consumer digital video products," D. Gordon Strickland, Ampex's President and Chief Executive Officer, noted that the court filing is not expected to have any significant impact on Ampexs day-to- day operations. "While the restructuring will be an important step towards a more successful future, our primary focus will continue to be our customers and their satisfaction with our products and services." "In recent years, Ampex has been constrained by its highly leveraged capital structure and by the continuing burden of its significant legacy pension liabilities," Mr. Strickland explained. "Quite simply, we have too much debt. We intend to use the Chapter 11 process to reduce these obligations significantly and to develop and implement a new capital structure that will allow us to invest in our business." "Fortunately, the fundamentals of our business remain strong and provide an excellent foundation for the future," Mr. Strickland concluded. "We expect that Ampex will emerge from its Chapter 11 reorganization a stronger, more financially viable company, well- positioned for profitable growth." Other Matters The company could not file its Annual Report on Form 10-K for the year ended Dec. 31, 2007, within the prescribed period because additional time is required to complete the financial statements, footnotes and disclosures in order to incorporate information contained in the Plan and the related Disclosure Statement in connection with its filing for relief under chapter 11 of the Bankruptcy Code. The Company currently expects to be able to file its 2007 Form 10-K within fifteen calendar days following the prescribed due date, but there can be no assurance that it will be able to do so. Likely Insufficient Financial Resources As reported in the Troubled Company Reporter on Jan. 21, 2008, based on its projected operations, the company relates that it will not have sufficient financial resources or be able to generate cash flow to service all of its obligations, including scheduled indebtedness, within the next 12 months and beyond. In order for the company to remain a going concern it will be required to substantially modify the repayment terms of its Senior Notes well as the Hillside Notes. Alternatively, the company may be required to issue new equity to holders of all or most of its outstanding debt securities, well as for debt that will be issued in connection with future pension plan contributions. Any such issuance of equity for debt would result in current stockholders' ownership interest being significantly diluted and potentially cause a substantial decline in the price of the company's Common Stock. The company cannot give assurance that it will be successful in restructuring its indebtedness. A full-text copy of Ampex's Disclosure Statement is available for free at: http://ResearchArchives.com/t/s?29d4 A full-text copy of Ampex's Plan of Reorganization is available for free at: http://ResearchArchives.com/t/s?29d5 A full-text copy of the Plan Support Agreement with the Senior Secured Holder is available for free at: http://ResearchArchives.com/t/s?29d6 About Ampex Headquartered in Redwood City, California, Ampex Corporation (Nasdaq: AMPX) -- http://www.ampex.com/-- manufactures high performance data storage products principally used in defense applications. Ampex Corporation's consolidated balance sheet at Sept. 30, 2007, showed $23.3 million in total assets and $123.8 million in total liabilities, resulting in a $100.5 million total shareholders' deficit. AMPEX CORPORATION: Case Summary & 51 Largest Unsecured Creditors ---------------------------------------------------------------- Lead Debtor: Ampex Corp. 1228 Douglas Avenue Redwood City, CA 94063 Bankruptcy Case No.: 08-11094 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- AFC Holdings Corp. 08-11095 Ampex Holdings Corp. 08-11096 Ampex International Sales Corp. 08-11097 Ampex Finance Corp. 08-11098 Ampex Data Systems Corp. 08-11099 Ampex Data International Corp. 08-11100 Type of Business: The Debtors are licensors of visual information technology. They have two business segments: Recorders segment and Licensing segment. Their Recorders segment primarily includes the sale and service of data acquisition and instrumentation recorders (which record data and images rather than computer information), and to a lesser extent mass data storage products. Their Licensing segment involves the licensing of intellectual property to manufacturers of consumer digital video products through their corporate licensing division. See http://www.ampex.com Chapter 11 Petition Date: March 30, 2008 Court: Southern District of New York (Manhattan) Judge: Arthur J. Gonzalez Debtors' Counsel: Matthew Allen Feldman, Esq. (maosbny@willkie.com) Rachel C. Strickland, Esq. (maosbny@willkie.com) Willkie Farr & Gallagher LLP 787 Seventh Avenue New York, NY 10019-6099 Tel: (212) 728-8000 Fax: (212) 728-8111 http://www.willkie.com Debtors' Consolidated Financial Condition: Total Assets: $26,467,000 Total Debts: $133,602,000 Debtors' Consolidated List of 51 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Hillside Capital Inc. Loan $41,699,022 Attn: Raymond Weldon Managing Director 405 Park Avenue New York, NY 10022 Tel: (212) 935-6092 Seaboard Group II Contingent $1,348,327 P.O. Drawer 19764 Liability Raleigh, NC 27619 Tel: (650) 324-3474 Attn: Mr. Amos C. Dawson Williams Mullen Maupin Highwoods Tower One 3200 Beechleaf Court Taylor, PA Arthur H. Hausman Trade Debt $1,194,952 Tel: (650) 324-3474 55 Flood Circle Atherton, CA 94025 Charles A. Steinberg Trade Debt $746,055 Tel: (650) 366-3069 235 Crest Road Woodside, CA 94062 David. J. Chapman Trade Debt $484,549 Tel: (650) 879-0851 P.O. Box 490 Pescadero, CA 94060 Donald V. Kleffman Trade Debt $398,839 826 Cathedral Drive Sunnyvale, CA 94087 Tel: (408) 245-2018 Lois P. Faught Trade Debt $377,999 102 Oakleaf Terrace Joplin, MO 64801 Tel: (417) 782-5359 Mayme Lee Mitchell Trade Debt $354,196 Tel: (480) 275-6980 75 San Fernando Way San Francisco, CA 94127 Mark L. Sanders Trade Debt $346,400 Tel: (650) 851-0495 16075 Skyline Boulevard Woodside, CA 94062 Robert McAdams, Jr. Trade Debt $310,167 75644 Via Cortona Indian Wells, CA 92210 Tel: (760) 610-1305 Ronald C. Ballintine Trade Debt $285,428 7396 Timerrose Way Roseville, CA 95747 Tel: (916) 782-7405 Anne Andersen Trade Debt $265,077 26810 Ortega Drive Los Altos, CA 94022 Tel: (650) 948-8181 Donald F. Flanigan Trade Debt $177,780 Willis A. Wedel Trade Debt $173,588 Max P. Bennett Trade Debt $171,220 David R. Bunker Trade Debt $164,000 John L. Porter Trade Debt $156,421 Joel D. Talcott Trade Debt $155,800 Ephraim F. Litterman Trade Debt $146,337 Philips Services Site PRP Liability $135,000 Group George A. Merrick Trade Debt $108,900 Donald F. Bogue Trade Debt $102,300 Charles R. Rhind Trade Debt $92,407 John E. Trewin Trade Debt $90,400 Jerome Raffel Trade Debt $74,547 Thomas E. Davis Trade Debt $58,549 North Weber and Baugh Trade Debt $49,888 Robert L. Wilson Trade Debt $47,700 David A. Bocchinni Trade Debt $43,100 NH Holding Inc. Trade Debt $32,509 Heath Wakelee Trade Debt $29,881 Vicki S. Gruber, P.C. Trade Debt $28,400 Arrow Electronics Trade Debt $25,179 Richard Sirinsky Trade Debt $22,948 Mervyn J. Kingsbury Trade Debt $19,213 Super Talent Technology Corp. Trade Debt $18,000 Martin A. Booye Trade Debt $16,899 Kontron Trade Debt $15,768 Warren O'Sullivan Trade Debt $15,239 Faye Dell Squyres Trade Debt $13,824 Alexander Pizarev Trade Debt $13,715 Ralph Mossino Trade Debt $12,013 GE Fanuc Intelligent Trade Debt $11,263 Dacks Cable & Harness Inc. Trade Debt $10,388 PMA Group, Inc. Trade Debt $10,000 Eleanore Larson Trade Debt $9,198 Martha Dempster Trade Debt $9,152 Ella Mae Ward Trade Debt $7,266 Robert N. Wheeler Trade Debt $6,834 Edson W. Montgomery Trade Debt $6,112 Harriet Slater Trade Debt $5,984 ASCALADE COMMS: Court OKs Sale of Richmond Property for $8.4 Mil. ----------------------------------------------------------------- Ascalade Communications Inc. said that in connection with its protection from creditors under the Companies' Creditors Arrangement Act (CCAA), the British Columbia Supreme Court granted an order authorizing and approving the sale of Ascalade's property located in Richmond, British Columbia for $8.4 million. The property is currently held by one of Ascalade's wholly owned subsidiaries. The Richmond property is an approximately 40,000 square foot building that houses Ascalade's corporate headquarters and its research and product development. The sale of the property was to close yesterday, March 31, 2008. No update on the sale is available as of press time. Any recovery for creditors and other stakeholders, including shareholders, is uncertain and is highly dependent upon a number of factors, including the recovery from the sale of the Company's factory and equipment in the People's Republic of China, potential claims from customers and suppliers and the outcome of the Scheme of Arrangement in Hong Kong. Deloitte & Touche Inc., in its capacity as monitor of Ascalade, will continue to work with Ascalade on the restructuring or winding up of the company. As reported in the Troubled Company Reporter on March 4, 2008, Ascalade intended to seek protection from creditors under the Companies' Creditors Arrangement Act with the British Columbia Supreme Court. Ascalade's board of directors has determined that seeking creditor protection is in the interests of the company, its creditors, shareholders, employees, customers and other stakeholders. The company related that these actions are necessary because of the company's inability to fund operations to meet customer demand. This is as a result of significant operational challenges due to difficulty hiring and retaining workers, continued labor and material cost increases, sustained competitive price pressures and foreign exchange variations impacting the business. The intent of the CCAA filing was to enable Ascalade to continue its day to day operations for as long as possible or until its CCAA status changes. About Ascalade Communications Inc. Based in Richmond, British Columbia, Ascalade Communications Inc. (TSE:ACG) -- http://www.ascalade.com/ -- is an innovative product company that designs, develops and manufactures digital wireless and communication products. The company deliver products by offering its partners and customers complete vertical integration, from product design and development to final production. The company's products include digital cordless phones, Voice over Internet Protocol phones, digital wireless baby monitors and digital wireless conference phones. Ascalade products have been distributed in over 35 countries and under 80 regional brands. Ascalade also has facilities in Qingyuan, China, Hong Kong and a sales office in Hertfordshire, United Kingdom. ASCALADE COMMS: British Columbia Court OKs $8MM Sale of Property ---------------------------------------------------------------- Ascalade Communications Inc. disclosed that in connection with the protection from its creditors under the Companies' Creditors Arrangement Act, the British Columbia Supreme Court granted an order authorizing and approving the sale of Ascalade's property located in Richmond, British Columbia, for $8.4 million. The property is currently held by one of Ascalade's subsidiaries. The Richmond property is an approximately 40,000 square foot building that houses Ascalade's corporate headquarters and its research and product development. The sale of the property is expected to close on March 31, 2008. Any recovery for creditors and other stakeholders, including shareholders, is uncertain and is highly dependent upon a number of factors, including the recovery from the sale of the company's factory and equipment in the People's Republic of China, potential claims from customers and suppliers and the outcome of the Scheme of Arrangement in Hong Kong. Deloitte & Touche Inc., in its capacity as monitor of Ascalade, will continue to work with Ascalade on the restructuring or winding up of the company. As reported in the Troubled company Reporter on March 4, 2008, Ascalade Communications intended to seek protection from creditors under the Companies' Creditors Arrangement Act with the British Columbia Supreme Court. Ascalade's board of directors has determined that seeking creditor protection is in the interests of the company, its creditors, shareholders, employees, customers and other stakeholders. The company related that these actions were necessary because of the company's inability to fund operations to meet customer demand. This was a result of significant operational challenges due to difficulty hiring and retaining workers, continued labor and material cost increases, sustained competitive price pressures and foreign exchange variations impacting the business. About Ascalade Communications Inc. Based in Richmond, British Columbia, Ascalade Communications Inc. (TSE:ACG) -- http://www.ascalade.com/ -- is an innovative product company that designs, develops and manufactures digital wireless and communication products. The company deliver products by offering its partners and customers complete vertical integration, from product design and development to final production. The company's products include digital cordless phones, Voice over Internet Protocol phones, digital wireless baby monitors and digital wireless conference phones. Ascalade products have been distributed in over 35 countries and under 80 regional brands. Ascalade also has facilities in Qingyuan, China, Hong Kong and a sales office in Hertfordshire, United Kingdom. ASCENDIA BRANDS: Joseph A. Falsetti Resigns as Executive Chairman ----------------------------------------------------------------- Joseph A. Falsetti has resigned as executive chairman of Ascendia Brands Inc. and as a member of its board of directors, effective March 21, 2008. Ascendia and Mr. Falsetti have entered into a Separation Agreement under which Mr. Falsettti agreed to the termination of his employment agreement entered into on Feb. 12, 2007, and forfeited rights to certain incentive stock options, in return for mutually agreed-upon severance payments. Headquartered in Hamilton, New Jersey, Ascendia Brands Inc. -- http://www.ascendiabrands.com/-- is a leader in the value and premium value segments of the health and beauty care products sector. In November 2005, Ascendia expanded its range of product offerings through the acquisition of a series of brands, including Baby Magic(R), Binaca(R), Mr. Bubble(R) and Ogilvie(R), and in February 2007 it acquired the Calgon(TM)* and the healing garden(R) brands. The company operates two manufacturing facilities, in Binghamton, New York, and Toronto, Canada. Senior Lenders Waive Default As reported in the Troubled Company Reporter on Jan. 3, 2008, Ascendia Brands Inc. reached agreement with its senior lenders to restructure $160 million first and second lien debt facilities. Under the agreement, Ascendia's senior lenders will waive certain existing covenant defaults and adjust financial covenant levels through the end of Ascendia's fiscal year ending Feb. 28, 2009. The TCR reported on Dec. 17, 2007 that Ascendia Brands notified its senior lenders that it is in default of certain covenants contained in its first and second lien credit facilities and is unable to make certain representations and warranties deemed to be made when drawings are made under its revolving credit facility. BALLY TOTAL: Commences Cash Distribution to Former Stockholders --------------------------------------------------------------- Bally Total Fitness Holding Corporation commenced the process to make an initial cash distribution to former stockholders, in accordance with the terms of Bally's confirmed chapter 11 plan. The initial cash distribution is $.31 per share of Old Common Stock. Approximately $3.5 million has been reserved by Bally's disbursing agent, pending disallowance of certain outstanding claims that were filed in Bally's chapter 11 case. These reserved funds may fund a second distribution to holders of Old Common Stock, but such a distribution is subject to satisfactory resolution of the outstanding claims. About Bally Total Fitness Based in Chicago, Illinois, Bally Total Fitness Holding Corp. (Pink Sheets: BFTH.PK) -- http://www.ballyfitness.com/-- operates fitness centers in the U.S., with over 375 facilities located in 26 states, Mexico, Canada, Korea, China and the Caribbean under the Bally Total Fitness(R), Bally Sports Clubs(R) and Sports Clubs of Canada (R) brands. Bally Total and its affiliates filed for chapter 11 protection on July 31, 2007 (Bankr. S.D.N.Y. Case No. 07-12396) after obtaining requisite number of votes in favor of their pre-packaged chapter 11 plan. Joseph Furst, III, Esq. at Latham & Watkins, L.L.P. represents the Debtors in their restructuring efforts. As of June 30, 2007, the Debtors had $408,546,205 in total assets and $1,825,941,54627 in total liabilities. The Debtors filed their Joint Prepackaged Plan & Disclosure Statement on July 31, 2007. On Aug. 13, 2007, they filed an Amended Joint Prepackaged Plan and on Aug. 17 filed a Modified Amended Prepackaged Plan. BANK OF AMERICA: Stable Performance Cues Fitch to Hold Ratings -------------------------------------------------------------- Fitch Ratings has affirmed Bank of America Commercial Mortgage Securities 2004-1 as: -- $283.9 million class A-1A at 'AAA'; -- $98.4 million class A-2 at 'AAA'; -- $100.1 million class A-3 at 'AAA'; -- $521.9 million class A-4 at 'AAA'; -- Interest-only class X-C at 'AAA'; -- Interest-only class X-P at 'AAA'; -- $31.5 million class B at 'AAA'. -- $13.3 million class C at 'AAA'; -- $29.9 million class D at 'AA+'; -- $13.3 million class E at 'AA'; -- $18.2 million class F at 'A+'; -- $11.6 million class G at 'A-'; -- $19.9 million class H at 'BBB'; -- $6.6 million class J at 'BBB-'; -- $6.6 million class K at 'BB+'; -- $8.3 million class L at 'BB'; -- $8.3 million class M at 'BB-'; -- $3.3 million class N at 'B+'; -- $3.3 million class O at 'B'. Class A-1 has been paid in full and Fitch does not rate the $21.6 million class P. Affirmations are due to the stable performance and minimal paydown of the transaction since the last Fitch rating action. As of the March 2008 distribution date, the pool has paid down 9.7% to $1.20 billion from $1.33 billion at issuance. In total nine loans (9.4%) have defeased, including two (5.4%) of the top 10 (42.8%) loans. Currently 36% of the nondefeased loans are interest only or have interest-only periods. Scheduled nondefeased maturities in 2008 and 2009 are 4.5% and 0.7%, respectively. The majority of the balance of the nondefeased loans mature in 2013 (45.5%) and 2014 (26.3%). The pool's weighted average coupon mortgage rate is 5.6%. Nine (4%) loans have been identified as Fitch loans of concern due to declining occupancy or debt service coverage ratios. Currently there are no delinquent or specially serviced loans. Fitch maintains investment grade credit assessments on two loans in the trust: the Leo Burnett Building (10%) and the Hines Sumitomo Life Office Portfolio (8.7%) loans. The Leo Burnett Building is a 1.1 million square foot class A office building located in Chicago, Illinois. Occupancy as of March 2008 was 100% compared to 98.2% at issuance. The Hines Sumitomo Life Office Portfolio is secured by three central business district office buildings containing a total of 1.2 million square feet. Two of the office buildings are located in New York, New York, and one is located in Washington, DC. The whole loan consists of two senior pari passu notes and one junior note. Only the A2 pari passu note is held in the trust. As of September 2007, the overall occupancy has remained flat compared to 97.7% at issuance. Nine loans (9.3%) mature in 2008 and 2009, of which three loans (4.1%) are defeased. BELDEN & BLAKE: Posts $35.3 Million Net Loss in Year Ended Dec. 31 ------------------------------------------------------------------ Belden & Blake Corp. reported a net loss $35.3 million on net operating revenues of $125.7 million for the year ended Dec. 31, 2007, compared with net income of $52.2 million on net operating revenues of $159.1 million for the year ended Dec. 31, 2006. The decrease in net operating revenues was due to lower gas sales revenues of $32.8 million and lower gas gathering and marketing revenues of $1.0 million. Derivative fair value gain/loss was a loss of $78.1 million in 2007 compared to a gain of $37.4 million in 2006. The derivative fair value gain/loss reflects the changes in fair value of certain derivative instruments that are not designated or do not qualify as cash flow hedges, the ineffective portion of crude oil swaps through Aug. 15, 2005, and the ineffective portion of natural gas swaps as a result of purchase accounting. At Dec. 31, 2007, the company had aggregate long term debt of $286.4 million, compared with $279.9 million at Dec. 31, 2006. Balance Sheet At Dec. 31, 2007, the company's consolidated balance sheet showed $774.2 million in total assets, $672.0 million in total liabilities, and $102.2 million in total stockholders' equity. The company's consolidated balance sheet at Dec. 31, 2007, also showed strained liquidity with $52.9 million in total current assets available to pay $67.1 million in total current liabilities. Full-text copies of the company's consolidated financial statements for the year ended Dec. 31, 2007, are available for free at http://researcharchives.com/t/s?29c5 About Belden & Blake Belden & Blake Corporation -- http://www.beldenblake.com/-- is an independent energy company engaged in the exploitation, development, production, operation and acquisition of oil and natural gas properties. The company's operations are focused in the Appalachian Basin in Ohio, Pennsylvania and New York and in the Antrim Shale formation in the Michigan Basin. * * * Belden & Blake Corp. 8.75% Senior Secured Guaranteed Global Notes die 2012 carry Moody's Caa1 rating. It also carries Moody's Caa1 corporate family rating. BERNOULLI HIGH: Moody's Junks Ratings on Seven Classes of Notes --------------------------------------------------------------- Moody's Investors Service downgraded ratings of eight classes of notes issued by Bernoulli High Grade CDO II, Ltd., and left on review for possible further downgrade the rating of one of these classes. The notes affected by this rating action are: Class Description: $555,000,000 Class A-1B Second Priority Senior Secured Floating Rate Notes Due October 2054 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: B1, on review for possible downgrade Class Description: $56,000,000 Class B Third Priority Senior Secured Floating Rate Notes Due October 2054 -- Prior Rating: Ba2, on review for possible downgrade -- Current Rating: Ca Class Description: $103,000,000 Class C Fourth Priority Senior Secured Floating Rate Notes Due October 2054 -- Prior Rating: Ba3, on review for possible downgrade -- Current Rating: Ca Class Description: $4,000,000 Class D Fifth Priority Mezzanine Deferrable Secured Floating Rate Notes Due October 2054 -- Prior Rating: B1, on review for possible downgrade -- Current Rating: C Class Description: $3,000,000 Class E Sixth Priority Mezzanine Deferrable Secured Floating Rate Notes Due October 2054 -- Prior Rating: B2, on review for possible downgrade -- Current Rating: C Class Description: $10,500,000 Class F Seventh Priority Mezzanine Deferrable Secured Floating Rate Notes Due October 2054 -- Prior Rating: Caa1, on review for possible downgrade -- Current Rating: C Class Description: $4,500,000 Class G Eighth Priority Mezzanine Deferrable Secured Floating Rate Notes Due October 2054 -- Prior Rating: Caa1, on review for possible downgrade -- Current Rating: C Class Description: $14,000,000 Income Notes Due October 2054 -- Prior Rating: Ca -- Current Rating: C The rating downgrade actions reflect deterioration in the credit quality of the underlying portfolio, as well as the occurrence on March 4, 2008, as reported by the Trustee, of an event of default that occurs when the Sequential Pay Ratio is less than 95 per cent, as described in Section 5.1(i) of the Indenture dated Aug. 28, 2007. Recent ratings downgrades on the underlying portfolio caused ratings-based haircuts to affect the calculation of overcollateralization. Thus, the Event of Default described in Section 5.1(i) of the Indenture occurred. As provided in Article V of the Indenture during the occurrence and continuance of an Event of Default, holders of certain Notes may be entitled to direct the Trustee to take particular actions with respect to the Collateral Debt Securities and the Notes. The rating downgrades taken reflect the increased expected loss associated with each tranche. Losses are attributed to diminished credit quality on the underlying portfolio. The severity of losses of certain tranches may be different, however, depending on the timing and choice of remedy to be pursued following an event of default. Because of this uncertainty, the ratings assigned to the Class A-1B Notes remain on review for possible further action. Bernoulli High Grade CDO II, Ltd. is a collateralized debt obligation backed primarily by a portfolio of RMBS securities and CDO securities. BRASIL TELECOM: Moody's Reviews 'Ba1' Note Rating for Likely Lift ----------------------------------------------------------------- Moody's placed on review for possible upgrade the Ba1 rating assigned to Brasil Telecom S.A.'s $200 million 9.375% structured Notes due 2014. The review is a result of the placement on review for possible upgrade of the Ba1 global scale senior unsecured rating of Brasil Telecom S.A. The rating assigned to the structured notes is linked to the fundamental credit quality of Brasil Telecom S.A., as reflected by its global local currency rating. As a result of this linkage, any further change in that rating may also result in a change in the rating of the structured notes. Brasil Telecom S.A., headquartered in Bras�lia, is an integrated telecommunications company operating in nine states in the southern, mid-western and northern regions of Brazil. In 2007 Brasil Telecom reported consolidated net revenues of BRL11,059 million or $5,671 million. The complete rating action is: -- $200 million 9.375% structured Notes, Ba1 rating placed on review for possible upgrade. CALPINE CORP: Canadian Monitor Reports Updates on CCAA Proceedings ------------------------------------------------------------------ Ernst & Young, Inc., the monitor of the reorganization proceedings of Calpine Corporation's affiliates under the Canadian Companies' Creditors Arrangement Act, reports that Calpine Canada Energy Finance I ULC, on February 6, 2008, has completed its distribution and has fully repaid or reserved for all its third party creditors and all holders of the ULC1 Notes. ULC1 is currently seeking permission from the Honorable Madam Justice Romaine of the Court of Queen's Bench of Alberta to allow for the cancellation of the ULC1 Notes and the discharge and release of the ULC1 Indenture Trustee. The Monitor further reports the total recoveries of the CCAA Applicants, related distributions and payments and the reserves for unresolved claims, totaled approximately $11,000,000,000, including $5,100,000,000 in recoveries from claims against the US Debtors. The CCAA Applicants distributed $3,500,000,000 to third party creditors, allowing each CCAA Applicant to fully repay all resolved third party claims. The Monitor also relates that: (a) $4,700,000,000 in claims were resolved between CCAA Applicants; (b) $1,300,000,000 in distributions have been made in respect of claims owing to the US Debtors; (c) approximately $83,700,000 as a full reserve for unresolved claims, which remain outstanding; and (d) approximately $943,000,000 in capital has been returned to the US Debtors. The Monitor further relates that the CCAA Applicants accumulated "other recoveries" totaling $980,000,000, with the significant recoveries comprising: -- CCNG's collection of a $57,800,000 receivable that was factored with a third party; -- CCRC's repatriation of $251,400,000 in funds from its foreign subsidiaries, referred to as the Saltend Proceeds; -- CCPL's sale of its B Units of the Fund for net proceeds of approximately $97,700,000; -- CCRC's sale of its ULC1 Notes for net proceeds of $403,700,000; and -- CESCA's recoveries of $75,900,000 comprising the proceeds from the sale of natural gas under a call-on-production agreement as well as the collection of miscellaneous pre-filing accounts receivable. The CCAA Applicants recovered $5,100,000,000, from the U.S. Debtors, comprising of: -- $1,200,000,000, in claims owing by QCH were repaid on or about February 1, 2008, in conjunction with the implementation of the U.S. Plan of Reorganization; -- $3,700,000,000 contribution from QCH to CCEL as part of the unwinding of the Hybrid Note Structure; -- $231,700,000 in net proceeds were received by the CCAA Applicants in December 2007 relating to the sale of certain claims against the US Debtors. The CCAA Applicants distributed $4,800,000,000, in intercompany claims owing amongst them. The Monitor says that upon the distribution to creditors of ULC2 and CESCA, the amount required to be contributed by CCRC relating to the ULC2 Shortfall Claim and the CESCA Shortfall Claim totaled $251,600,000, representing a payment of $19,900,000 to ULC2, and $231,700,000 to CESCA. The CCAA Applicants distributed $9,650,000,000, comprising of $3,500,000,000, with respect to resolved third party claims, $4,800,000,000, with respect to claims of other CCAA Applicants, and $1,300,000,000, in distributions in respect of claims of the U.S. Debtors. The Monitor says $82,300,000, in claims remain unresolved, of which $66,600,000, relates to the deferral of the ULC1 guarantee fee owing to Calpine Corporation. The Monitor says each of the CCAA Applicant has withheld sufficient cash as a reserve against the unresolved claim amounts. The CCAA Applicants paid $81,700,000, for the purchase of natural gas as required under the COP Agreements and payment of employee costs and general and administrative costs. About $76,000,000 was distributed by CCRC to the U.S. Debtors as part of the implementation of the Global Settlement Agreement. Professional fees and KERP payments total $40,300,000, including an accrual for professional fees to allow for the completion of these CCAA proceedings. In conjunction with the implementation of the U.S. Plan, CCEL returned to QCH $943,400,000, in capital, comprising of shares Calpine Corporation common stock that CCEL received from QCH as part of the unwinding of the Hybrid Note Structure. CCEL has accrued an additional costs for future general and administrative costs to complete these CCAA proceedings. Approximately $86,100,000, is estimated to be available for the U.S. Debtors, representing the remaining funds after each CCAA Applicant has fully reserved for all estimated remaining costs and unresolved claims, the Monitor says. Of the $86,100,000 remaining, $48,500,000 is comprised of cash and $37,600,000 of Calpine Shares. A full-text copy of the Monitor's Report is available at no cost at http://bankrupt.com/misc/Calpine_E&Y29thMonitorsReport.pdf Based in San Jose, California, Calpine Corporation (OTC Pink Sheets: CPNLQ) -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Its customized products and services include wholesale and retail electricity, gas turbine components and services, energy management and a wide range of power plant engineering, construction and maintenance and operational services. The company and its affiliates filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200). Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G. Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their restructuring efforts. Michael S. Stamer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2007, the Debtors disclosed total assets of $18,467,000,000, total liabilities not subject to compromise of $11,207,000,000, total liabilities subject to compromise of $15,354,000,000 and stockholders' deficit of $8,102,000,000. On Feb. 3, 2006, two more affiliates, Geysers Power Company, LLC, and Silverado Geothermal Resources, Inc., filed voluntary chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 06-10197 and 06-10198). On Sept. 20, 2007, Santa Rosa Energy Center, LLC, another affiliate, also filed a voluntary chapter 11 petition (Bankr. S.D.N.Y. Case No. 07-12967). On June 20, 2007, the Debtors filed their Chapter 11 Plan and Disclosure Statement. On Aug. 27, 2007, the Debtors filed their Amended Plan and Disclosure Statement. Calpine filed a Second Amended Plan on Sept. 19, 2007 and on Sept. 24, 2007, filed a Third Amended Plan. On Sept. 25, 2007, the Court approved the adequacy of the Debtors' Disclosure Statement and entered a written order on September 26. On Dec. 19, 2007, the Court confirmed the Debtors' Plan. The Amended Plan was deemed effective as of January 31, 2008. CALPINE CORP: Initial Market Capitalization Valued at $8.6 Billion ------------------------------------------------------------------ Calpine Corporation announced that its "Emergence Date Market Capitalization," calculated pursuant to its amended and restated certificate of incorporation, was approximately $8,600,000,000. If, prior to February 1, 2013, Calpine's Market Capitalization declines 35 percent from the Emergence Date Market Capitalization and 25 percentage points of ownership change has occurred (for the purposes of Section 382 of the Internal Revenue Code), Calpine's Board shall meet to determine whether to impose trading restrictions in accordance with Article VII of the amended and restated certificate of incorporation. The trading restrictions are designed to provide Calpine with the ability to preserve its net operating losses for tax purposes. If Calpine's Board of Directors determines to impose such trading restrictions, Calpine is required pursuant to the amended and restated certificate of incorporation to promptly announce the imposition and terms of such trading restrictions. Based in San Jose, California, Calpine Corporation (OTC Pink Sheets: CPNLQ) -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Its customized products and services include wholesale and retail electricity, gas turbine components and services, energy management and a wide range of power plant engineering, construction and maintenance and operational services. The company and its affiliates filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200). Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G. Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their restructuring efforts. Michael S. Stamer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2007, the Debtors disclosed total assets of $18,467,000,000, total liabilities not subject to compromise of $11,207,000,000, total liabilities subject to compromise of $15,354,000,000 and stockholders' deficit of $8,102,000,000. On Feb. 3, 2006, two more affiliates, Geysers Power Company, LLC, and Silverado Geothermal Resources, Inc., filed voluntary chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 06-10197 and 06-10198). On Sept. 20, 2007, Santa Rosa Energy Center, LLC, another affiliate, also filed a voluntary chapter 11 petition (Bankr. S.D.N.Y. Case No. 07-12967). On June 20, 2007, the Debtors filed their Chapter 11 Plan and Disclosure Statement. On Aug. 27, 2007, the Debtors filed their Amended Plan and Disclosure Statement. Calpine filed a Second Amended Plan on Sept. 19, 2007 and on Sept. 24, 2007, filed a Third Amended Plan. On Sept. 25, 2007, the Court approved the adequacy of the Debtors' Disclosure Statement and entered a written order on September 26. On Dec. 19, 2007, the Court confirmed the Debtors' Plan. The Amended Plan was deemed effective as of January 31, 2008. CALPINE CORP: Charles Clark Steps Down as Vice President -------------------------------------------------------- Charles B. Clark Jr., Calpine Corporation's Senior Vice President and Chief Accounting Officer, will be leaving the company effective May 30, 2008, the company said in a press release. Calpine said it has initiated a search for Mr. Clark's replacement. Mr. Clark will be available to assist in the transition for a period of time after May 30, 2008. "I join all of Calpine's employees in feeling pride in having participated in Calpine's reorganization and emergence from the two-year Chapter 11 process," Mr. Clark said. "We have also completed the centralization of the accounting function in Houston under a top-notch accounting leadership team. I am very optimistic about Calpine's future prospects, and after nine years as the Company's Chief Accounting Officer, I will be leaving with fond memories of my time at Calpine. I extend my best wishes to the reorganized Calpine and its fantastic employees. "I want to thank Chuck for his many years of service to Calpine and for being an important member of our team. We will miss him and wish him the very best with his new endeavors," said Lisa Donahue, Executive Vice President and Chief Financial Officer for Calpine. Bringing more than 20 years of domestic and international financial experience to Calpine, Mr. Clark joined the company in 1999. Prior to joining Calpine, Mr. Clark was the CFO of Hobbs Group, LLC. He holds a master's degree in business administration from Harvard Graduate School of Business Administration and a bachelor of science degree in mathematics from Duke University. In a regulatory filing with the Securities and Exchange Commission, Calpine disclosed that Mr. Clark will be entitled to severance benefits under the Calpine Corporation Change in Control and Severance Benefits Plan, which was adopted effective January 31, 2008. He will also continue to be eligible to participate in the company's Emergence Incentive Plan. Based in San Jose, California, Calpine Corporation (OTC Pink Sheets: CPNLQ) -- http://www.calpine.com/-- supplies customers and communities with electricity from clean, efficient, natural gas-fired and geothermal power plants. Calpine owns, leases and operates integrated systems of plants in 21 U.S. states and in three Canadian provinces. Its customized products and services include wholesale and retail electricity, gas turbine components and services, energy management and a wide range of power plant engineering, construction and maintenance and operational services. The company and its affiliates filed for chapter 11 protection on Dec. 20, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-60200). Richard M. Cieri, Esq., Matthew A. Cantor, Esq., Edward Sassower, Esq., and Robert G. Burns, Esq., Kirkland & Ellis LLP represent the Debtors in their restructuring efforts. Michael S. Stamer, Esq., at Akin Gump Strauss Hauer & Feld LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2007, the Debtors disclosed total assets of $18,467,000,000, total liabilities not subject to compromise of $11,207,000,000, total liabilities subject to compromise of $15,354,000,000 and stockholders' deficit of $8,102,000,000. On Feb. 3, 2006, two more affiliates, Geysers Power Company, LLC, and Silverado Geothermal Resources, Inc., filed voluntary chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 06-10197 and 06-10198). On Sept. 20, 2007, Santa Rosa Energy Center, LLC, another affiliate, also filed a voluntary chapter 11 petition (Bankr. S.D.N.Y. Case No. 07-12967). On June 20, 2007, the Debtors filed their Chapter 11 Plan and Disclosure Statement. On Aug. 27, 2007, the Debtors filed their Amended Plan and Disclosure Statement. Calpine filed a Second Amended Plan on Sept. 19, 2007 and on Sept. 24, 2007, filed a Third Amended Plan. On Sept. 25, 2007, the Court approved the adequacy of the Debtors' Disclosure Statement and entered a written order on September 26. On Dec. 19, 2007, the Court confirmed the Debtors' Plan. The Amended Plan was deemed effective as of January 31, 2008. CARDIMA INC: To Restate Financial Statements Due to Errors ---------------------------------------------------------- Cardima Inc. said in a regulatory filing with the Securities and Exchange Commission dated March 26, 2008, that the company's Board of Directors have determined that its previously issued financial statements for the three-month period ended June 30, 2007, on Form 10-QSB as filed with the Commission on Aug. 30, 2007, should no longer be relied upon as a result of incorrect accounting for certain non-cash debt extinguishment. The company said that this had the effect of understating the company's net loss attributable to common stockholders by approximately $21.7 million. As originally filed, the company reported net income of $4,367,000 for the three months ended June 30, 2007, and a net loss of $2,657,000 for the six months ended June 30, 2007. As restated for the three and six months ended June 30, 2007, net loss were $17.4 million and $27.2 million, respectively. The company's Board also has determined that its previously issued financial statements for the three-month periods ended March 31, 2006, June 30, 2006, Sept. 30, 2006, March 31, 2007, Sept. 30, 2007, and the year ended Dec. 31, 2006, should no longer be relied upon as a result of the company's determination that it had incorrectly accounted for the non-cash extinguishment of debt and commitment of unauthorized shares. All incorrect accounting related to the restructuring of certain of the company's debt obligations. On June 7, 2007, Apix International Limited, a lender to the company, converted all of its debt and warrants into 88,000,000 shares of common stock of the company. As a result, $46,000,000 was credited to shareholder equity on the company's balance sheet. That amount included $35,000,000 for the conversion of the shares and $11,000,000 for the reversal of the authorized share liability at June 30, 2007. The company said the misstatement had the effect of understating the company's net loss for the relevant reporting periods: Period As Reported Restatement As Restated ------ ----------- ----------- ----------- Year Ended 12.31.06 $ 9,533,000 $1,394,000 $10,927,000 Thru Sept. 30, 2007 $12,631,000 $17,451,000 $30,082,000 About Cardima Inc. Headquartered in Fremont, California, Cardima Inc. (OTC BB: CRDM.OB) -- http://www.cardima.com/-- has developed the PATHFINDER(R) and REVELATION(R) Series of diagnostic catheters, the INTELLITEMP(R) Energy Management Device, and the Surgical Ablation System. The REVELATION(R) Series of ablation catheters with the INTELLITEMP(R) EP Energy Management Device was developed and marketed for the treatment of atrial fibrillation after receiving CE mark approval in Europe; it is not currently available in the U.S. * * * Marc Lumer & Company, in San Francisco, expressed substantial doubt about Cardima Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2006. The auditing firm pointed to the company's recurring losses from operations. CATHOLIC CHURCH: Century Amends Objection to Disclosure Statement ----------------------------------------------------------------- Century Indemnity Company, as successor to CCI Insurance Company and Insurance Company of North America, informs the U.S. Bankruptcy Court for the Southern District of Iowa that since the filing of its objection to the Diocese of Davenport's Disclosure Statement, Century Indemnity has become aware of the decision in Safeco Ins. Co. of America v. Farmland Indus., Inc. (In re Farmland Indus., Inc.), 296 B.R. 793 (8th Cir. BAP 2003). Richard K. Updegraff, Esq., at Brown, Winick, Graves, Gross, Baskerville & Schoenebaum PLC, in Des Moines, Iowa, relates that in Farmland, the 8th Circuit of the Bankruptcy Appellate Panel rejected reliance on In re Federal Mogul Global, Inc., 300 F.3d 368 (3rd Cir. 2002). In its initial objection filed with the Court, Century Indemnity relied on the Federal Mogul decision in its objection to the Disclosure Statement. Mr. Updegraff explains that Federal Mogul involved a situation where there was no indemnity agreement and no guarantor or suretyship relation, unlike Century Indemnity's position in the bankruptcy case as an insurer to a non-debtor. In Farmland, however, there was an express suretyship relationship between a debtor and its surety bond issuer. "While the BAP decision in Farmland is not controlling precedent, it is a significant jurisdictional ruling," Mr. Updegraff says. He points out that had Century Indemnity been aware of Farmland, the BAP decision would have been cited and dealt with it in the Objection. About Diocese of Davenport The Diocese of Davenport in Iowa filed for chapter 11 protection (Bankr. S.D. Ia. Case No. 06-02229) on Oct. 10, 2006. Richard A. Davidson, Esq., at Lane & Waterman LLP, represents the Davenport Diocese in its restructuring efforts. Hamid R. Rafatjoo, Esq., and Gillian M. Brown, Esq., at Pachulski Stang Zhiel Young Jones & Weintraub LLP represent the Official Committee of Unsecured Creditors. In its schedules of assets and liabilities, the Davenport Diocese reported $4,492,809 in assets and $1,650,439 in liabilities. The hearing on the adequacy of Davenport's disclosure statement explaining its reorganization plan commenced on March 5, 2008. (Catholic Church Bankruptcy News, Issue No. 119; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). CATHOLIC CHURCH: Fairbanks May Employ CSG as Special Counsel ------------------------------------------------------------ Donald J. Kettler, sole Director of the Catholic Bishop of Northern Alaska, and bishop of the Diocese of Fairbanks, obtained authority from the U.S. Bankruptcy Court for the District of Alaska to employ Cook, Schuhmann & Groseclose, Inc., nunc pro tunc to the bankruptcy filing, as special litigation counsel to represent the Diocese's interests with respect to certain prepetition litigation matters. As reported in the Troubled Company Reporter on March 11, 2008, Prior to the bankruptcy filing, CSG represented the Diocese in pending civil actions in various courts in the state of Alaska. Hence, Bishop Kettler says, CSG is intimately familiar with the issues in the Litigation Cases. About Diocese of Fairbanks The Roman Catholic Diocese of Fairbanks in Alaska, aka Catholic Bishop of Northern Alaska, aka Catholic Diocese of Fairbanks, aka The Diocese of Fairbanks, aka CBNA filed for chapter 11 bankruptcy on March 1, 2008 (Bankr. D. Alaska Case No. 08-00110). Susan G. Boswell, Esq., at Quarles & Brady LLP represents the Debtor in its restructuring efforts. Michael R. Mills, Esq., of Dorsey & Whitney LLP serves as the Debtor's local counsel and Cook, Schuhmann & Groseclose Inc. as its special counsel. Judge Donald MacDonald, IV, of the United States Bankruptcy Court for the District of Alaska presides over Fairbanks' Chapter 11 case. The Debtor's schedules show total assets of $13,316,864 and total liabilities of $1,838,719. The church's exclusive plan filing period expires on June 29, 2008. (Catholic Church Bankruptcy News, Issue No. 119; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CATHOLIC CHURCH: Fairbanks Amends Motion to Hire Keegan Linscott ---------------------------------------------------------------- Donald J. Kettler, sole director of the Catholic Bishop of Northern Alaska, and bishop of the Diocese of Fairbanks, filed with the U.S. Bankruptcy Court for the District of Alaska an amended application to employ Keegan, Linscott and Kenon, P.C., as Fairbanks' accountants and financial consultants, nunc pro tunc to the bankruptcy filing. Bishop Kettler relates that Keegan Linscott's retainer, which would have been applied to prepetition fees and costs, did not reach the firm prior to the bankruptcy filing due to certain bank errors during the transfer of the funds. He further relates that t