T R O U B L E D C O M P A N Y R E P O R T E R Monday, April 7, 2008, Vol. 12, No. 82 Headlines ABLE ENERGY: Earns $553,030 in Fiscal 2007 3rd Qtr. Ended March 31 ABS CAPITAL: Moody's Reviews 'B1' Rating on $132 Mil. A-2 Notes ACA FINANCIAL: S&P Puts 'BB-' Rating on $29.3 Mil. Insured Bonds ALANAR INC: Trial on Investor Claims Procedure Set for May 1 ALASKA COMMUNICATIONS:To Acquire Crest Communications for $70 Mil. ALASKA COMMUNICATIONS: Plans to Offer Up to $100 Million Notes ALASKA COMMUNICATIONS: S&P Ratings Unmoved by Proposed Crest Deal ALEXANDER PARK: Moody's Junks Ratings on Two Classes of 2039 Notes ALPHA NATURAL: S&P Attaches 'B' Rating on $287.5 Mil. Senior Notes AMERICAN HOUSING: S&P Downgrades Rating on 2003C Bonds to 'BB' AMERICAN LAFRANCE: Adds Two More Contracts for Assumption AMERICAN LAFRANCE: Court Approves Premier Logistics Settlement AMERICAN LAFRANCE: Drops Motion to Remove Freightliner from Panel AMERISAFE INC: AM Best Maintains 'bb' Ratings on Four Debts AMR CORP: Halts Management Hiring Over Rising Fuel Costs ASCALADE COMMS: Court Extends Creditor Protection Period to June 4 AYRESOME CDO: Eroding Credit Quality Spurs Moody's Rating Review BEXAR COUNTY HOUSING: Moody's Confirms B1 Rating on Revenue Bonds BLACK DIAMOND: Can Access CIT Group's $15 Million Facility BLEECKER STRUCTURED: Moody's Reviews 'B3' Ratings for Likely Cuts BROADWICK FUNDING: Moody's Reviews 'Ba2' Rating on $38 Mil. Notes CAMBER 3: Moody's Reviews Ratings on Four Classes of 2040 Notes CAMBER 5: Moody's Reviews Ratings on Five Notes for Possible Cuts CANARGO ENERGY: Elects Anthony J. Perry as Non-Executive Director CATHOLIC CHURCH: Davenport's 2nd Amended Disclosure Statement OK'd CBRE REALTY: Retains Goldman Sachs; Posts $70.8MM Net Loss in 2007 CENTRAL OIL: Creditors Have Until May 30 to File Proofs of Claim CENTERSTAGING MUSICAL: Asks Permission to Hire Biggs as Accountant CENTRE SQUARE: Poor Credit Quality Cues Moody's to Junk Ratings CHARLES RIVER: Moody's Junks Ratings on $15 Mil. Notes From 'Baa3' CHEROKEE INTERNATIONAL: Repays in Full $1MM Working Capital Credit CHERRY CREEK: Moody's Downgrades Ratings on Five Classes of Notes CHIQUITA BRANDS: Completes Refinancing with $350MM Credit Facility CHIQUITA BRANDS: Board Appoints William H. Camp as Director CHRYSLER LLC: Agrees to Extend Plastech Supply Deal to April 30 CINCINNATI BELL: Michael Morris Resigns as Board Member CLIFTON I: Three Classes of Notes Acquire Moody's Junk Ratings CONGOLEUM CORP: Insurers Have Standing to Oppose Plan, Court Says CONSTELLATION BRANDS: Posts $610MM Net Loss in Year Ended Feb. 29 CONTINENTAL ALLOYS: Moody's Reviews Low-B Ratings for Likely Cuts COPYTELE INC: Posts $2,685,325 Net Loss in Quarter Ended Jan. 31 COUNTRYWIDE FINANCIAL: Judge Okays Probe Into Lending Processes CROWN CITY 2005-1: Six Classes of Notes Get Moody's Rating Cuts CROWN CITY 2005-2: Moody's Downgrades Ratings on Seven Classes CRYSTAL COVE: Moody's Junks Ratings on $20.3MM Preference Shares DAVIS SQUARE V: Moody's Reviews Junk Ratings for Likely Downgrades DAVIS SQUARE IV: Moody's Reviews Four Note Ratings for Likely Cuts DELPHI CORP: Investors Refuse to Participate in Plan Closing DENNIS LOWERY: Voluntary Chapter 11 Case Summary DIABLO GRANDE: Files List of Twenty Largest Unsecured Creditors DIAMOND GLASS: Wins Court Approval for $7 Million DIP Financing DIOGENES CDO II: Moody's Junks Ratings on $90 Mil. Notes From Baa3 DIOGENES CDO I: Moody's Reviews 'Ba1' Rating on $21.2 Mil. Notes DUKE FUNDING IX: Moody's Reviews Low-B Ratings on Three Notes DURA AUTOMOTIVE: Court Approves Revised Disclosure Statement DURA AUTOMOTIVE: Court Sets Plan Confirmation Hearing May 13 DUTCH HILL: Moody's to Review Ratings on Eight Classes of Notes EL SOBRANTE: Case Summary & Eight Largest Unsecured Creditors E*TRADE ABS IV: Moody's Junks Rating on $5 Million Notes From 'B2' E*TRADE ABS I: Moody's Reviews 'B2' Rating on $25 Million Notes FOREST CITY ENTERPRISES: Moody's Keeps 'Ba3' Debt Ratings FORT POINT: Weak Credit Quality Cues Moody's Four Rating Reviews FRIEDMAN'S INC: Liquidates $400MM Inventories at Heavy Discount GLACIER FUNDING: Moody's Junks Ratings on Three Classes of Notes GLACIER FUNDING: Moody's Junks Ratings on Class D Notes From 'B1' GMAC COMMERCIAL: S&P Maintains Junk Ratings on Two Cert. Classes GPS INDUSTRIES: Announces Death of Chairman Douglas Wood GRAY TELEVISION: S&P Designates 'B' Rating On Negative CreditWatch HOUT BAY: Declining Credit Quality Cues Moody's Rating Downgrades HSPI DIVERSIFIED I: Moody's Cuts Ratings on Poor Credit Quality HSPI DIVERSIFIED II: Moody's Cuts Ratings on $105MM Notes to 'Ba1' IDEARC INC: Moody's Cuts Rating to 'B1' on Soft Fin'l Performance IMAC CDO: Moody's Cuts Ratings on Six Notes on Poor Credit Quality INDEPENDENCE COUNTY: S&P Rates $29.3MM Revenue Bonds 'BB-' INDEPENDENCE III: Moody's Reviews Two Junk Ratings for Likely Cuts INNOTRAC CORP: Court Moves IPOF Stock Trading Restriction to June INSIGNIA SOLUTIONS: Breached Asset Purchase Deal, Says Smith Micro IXION 2007: Moody's Reviews 'Ba3' Rating on $13 Mil. 2037 Notes IXION PLC: Moody's Downgrades Ratings on Declining Credit Quality JABIL CIRCUIT: S&P Downgrades Senior Unsecured Ratings to 'BB+' JA SHANKMAN: Voluntary Chapter 11 Case Summary JEAN LAFITTE: Voluntary Chapter 11 Case Summary JIHAD NASSAL: Voluntary Chapter 11 Case Summary JOG LLC: Voluntary Chapter 11 Case Summary JOHNSON RUBBER: Gets Court OK to Shut Down Two Plants in Ohio JP MORGAN: Moody's Cuts Ratings on 96 Tranches From 16 Alt-A Deals KUAKINI HEALTH: Moody's Rating Cut to 'Ba1' Affects $29MM Debt LEINER HEALTH: Creditors' Panel Objects to Sale Bonus Plan LENOX CDO: Moody's to Review Ratings on 10 Note Classes LILLIAN VERNON: To Sell Assets to Taylor Corp. Unit for $15.8MM LOCHSONG LTD: Moody's Junks Rating on $27 Million Class D Notes L&R PUBLICATIONS: Case Summary & 16 Largest Unsecured Creditors MARATHON HEALTHCARE: Case Summary & 152 Largest Unsec. Creditors MARCHFIRST INC: Appeals Court Says KPMG Not Liable for Bankruptcy MBIA INSURANCE: Fitch Downgrades IFS to 'AA'; Outlook Negative MBIA INSURANCE: Disagrees with Fitch; Assets Strong Balance Sheet MECACHROME INT'L: Moody's Cuts Liquidity Rating on Tight Covenant MERISANT CO: Terminates Refinancing on Adverse Market Conditions MERISANT CO: Refinancing Halt Won't Affect S&P's Rating METRO ONE: Karen Johnson Resigns as Chief Operations Officer MF GLOBAL: May Sell Minor Stake or Issue Debt to Raise Cash MILLENNIUM INORGANIC: S&P Slashes Corporate Credit Rating to 'B-' MONEYGRAM INTERNATIONAL: Fitch Cuts IDR to 'B+'; Outlook Negative MTR GAMING: Material Weakness From 10K Cues Moody's Rating Reviews NATIONAL CINEMEDIA: Moody's Retains 'B1' Corporate Family Rating NORCROSS SAFETY: Parent Inks $1BB Buyout Deal w/ Honeywell Int'l. NORTHSTAR VINYL: Case Summary & 20 Largest Unsecured Creditors OMEGA HEALTHCARE: Discloses Termination of Poison Pill ORCHID STRUCTURED: Moody's Downgrades Ratings on Six Note Classes PLASTECH ENGINEERED: Agrees to Extend Supply Pact to April 30 QUEBECOR WORLD: Judge Peck Approves Purchase of $12MM Aircraft QUEBECOR WORLD: Loses Catalog Deal; May Lose Parent Business QUEBECOR WORLD: 517,184 Preferred Shares for Conversion on June 1 RIVERSTONE NETWORKS: Fraud-Charged Officers Settle with SEC ROYAL CARIBBEAN: Fleet Expansion Prompts S&P's Rating Cut to 'BB+' SECURITY WITH ADVANCED: Has Until September to Meet Nasdaq Rules SECURUS TECH: Appoints Rob Wolfson, Carlyn Taylor to Board SHAPES/ARCH: Court Sets Claims Bar Date May 15 SHARNEE FAMILY: Involuntary Chapter 11 Case Summary SKYBUS AIRLINES: Files for Chapter 11 on Soaring Fuel Costs SKYBUS AIRLINES: Case Summary & 20 Largest Unsecured Creditors SOLOMON DWEK: Ch.11 Trustee Sells 56 Residential Homes for $11.5MM SOLOMON TECH: Three Debenture Holders Agree to Defer Redemptions SONICBLUE INC: Ch. 11 Trustee Sues Pillsbury to Recoup Fees SPEEDEMISSIONS INC: Net Loss Down to $264K in Year Ended Dec. 31 SPIRIT AEROSYSTEMS: Raises Revolving Credit Facility to $650 Mil. SPIRIT AEROSYSTEMS: Moody's Holds Ba3 Ratings With Stable Outlook SP NEWSPRINT: S&P Withdraws 'B+' Ratings on Refinanced Debt TAHOMA CDO: Moody's Junks Rating on $55 Million Notes From 'Baa2' TEEKAY CORP: Announces $0.275/share Cash Dividend Payable April 25 THOMPSON PRODUCTS: Gets Court Nod to Employ Bayard as Co-Counsel THOMPSON PRODUCTS: U.S. Trustee Appoints Creditors Panel Members THORNBURG MORTGAGE: Amends Executive Payments Under Financing Deal TOUSA INC: Committee Allowed to Hire Akin Gump as Co-Counsel TOUSA INC: GrayRobinson Represents Eagle Dunes, Bond Safeguard TRA TRANSPORTATION: Case Summary & 20 Largest Unsecured Creditors TRANSWITCH CORP: Erik van der Kaay to Retire from Board TRENTONWORKS LTD: Union Steps up Bid to Axe E&T as Trustee TRIAD FINANCIAL: Moody's Assigns Negative Outlook; Holds B2 Rating TRIAD GUARANTY: S&P Pares Counterparty Rating to 'BB' From 'A' TYSON FOODS: Moody's Confirms 'Ba1' Ratings; Keeps Neg Outlook UAL CORPORATION: Cancels Boeing 777 Flights for Inspection UNIVERSAL HOSPITAL: S&P Changes Outlook to Stable; Holds B+ Rating UTAH 7000 CABINS: Voluntary Chapter 11 Case Summary VICORP RESTAURANT: Gets Initial OK to Use Wells Fargo's $60MM Loan VICORP RESTAURANTS: Moody's Cuts Rating to 'D' on Chap. 11 Filing VICORP RESTAURANTS: S&P Cuts Rating to 'D' After Chapter 11 Filing X-RITE INC: Pact Violations Cue S&P's Negative Watch on B+ Rating XOMA LTD: Board Appoints William Bowes Jr. to Audit Committee * S&P Downgrades Ratings on 61 Classes From 16 RMBS Transactions * Fitch Says Hope Now's Moratorium Brings Temporary Relief * Fitch Says CREL CDO Delinquencies Drop on Fewer Repurchases * Moody's Reports Deterioration in 2007 Credit Performance of CDOs * Moody's Reports Stability on North American Natural Gas Sector * S&P Downgrades 27 Tranches' Ratings From Six Cash Flows and CDOs * Consumer-Reliant Sectors Still Feeling the Heat, S&P Reports * Harvey L. Tepner Signs Up with WL Ross & Co. as Principal * Nixon Peabody Adds Shmuel Vasser to Bankruptcy Practice * BOND PRICING: For the Week of Mar. 24 - Mar. 28, 2008 ********* ABLE ENERGY: Earns $553,030 in Fiscal 2007 3rd Qtr. Ended March 31 ------------------------------------------------------------------ Able Energy Inc. reported net income of $553,030 on net sales of $29,366,596 for the third quarter ended March 31, 2007, compared with a net loss of $1,335,754 on net sales of $26,265,365 in the same period ended March 31, 2006. The increase in net sales was primarily attributed to a $4.6 million increase in #2 Heating Oil sold due to the unusual cold weather in the 2007 period. The increase was partially offset by a $1.4 million decrease in commercial fuel sales reflecting the loss of some of the company's commercial fuel customers during the 2007 period. Gross profit was up 32.1% or $0.9 million to $3.7 million for the three month period ended March 31, 2007 compared to $2.8 million last year. The increase was primarily due to the above noted increase in volume and margin related to #2 Heating Oil sales, resulting in an associated increase in gross profit as a percentage of net sales from 10.6% in the 2006 period to 12.5% in the 2007 period. Selling, general and administrative expense for the three month period ended March 31, 2007, was $2.4 million compared to $2.7 million last year, a decrease of $300,000 million or 11.1%, which included a decrease in professional fees of $200,000. Income from operations rose $1.1 million for the three month period ended March 31, 2007, to $1.0 million compared to an operating loss of $100,000 last year. Total other expenses dropped $700,000 to a net expense of $500,000 in the three month period ended March 31, 2007, from $1.2 million of expense last year. The drop in net expenses is primarily related to a $700,000 decrease in financing costs related to the prior year amortization of debt discounts on convertible debentures and notes payable. Nine Month Results Net sales for the nine month period ended March 31, 2007, remained almost flat, decreasing $400,000, or 0.6%, to $61.5 million versus last year. For the nine month period ended March 31, 2007, net loss was $3.3 million compared to a net loss of $4.6 million in the same period ended March 31, 2006. Balance Sheet At March 31, 2007, the company's consolidated financial statements showed $13,506,879 in total assets, $12,885,103 in total liabilities, and $621,776 in total stockholders' equity. The company's consolidated balance sheet at March 31, 2007, also showed strained liquidity with $6,718,024 in total current assets available to pay $8,650,025 in total current liabilities. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2007, are available for free at http://researcharchives.com/t/s?29f8 Going Concern Disclaimer Marcum & Kliegman LLP expressed substantial doubt about Able Energy Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended June 30, 2006. The auditing firm reported that the company has incurred losses from continuing operations of approximately $6.2 million, $2.2 million and $1.7 million during the years ended June 30, 2006, 2005, and 2004, and in addition the company has used cash from operations of approximately $1.7 million for the year ended June 30, 2006, and has a working capital deficiency of approximately $432,000 at June 30, 2006. About Able Energy Headquartered in Rockaway, New Jersey, Able Energy Inc. (Other OTC: ABLE.PK) -- http://www.ableenergy.com/-- was incorporated in Delaware in 1997. Able Oil, a wholly owned subsidiary of Able, was established in 1989 and sells both residential and commercial heating oil and complete HVAC service to its heating oil customers. Able Energy NY, a wholly owned subsidiary of Able, sells residential and commercial heating oil, propane, diesel fuel, and kerosene to customers around the Warrensburg, N.Y. area. Able Melbourne, a wholly-owned subsidiary of Able, was established in 1996 and sells various grades of diesel fuel around the Cape Canaveral, Fla. area. PriceEnergy.com Inc., a majority owned subsidiary of Able, was established in 1999 and has developed an internet platform that has extended the company's ability to sell and deliver liquid fuels and related energy products. ABS CAPITAL: Moody's Reviews 'B1' Rating on $132 Mil. A-2 Notes --------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by ABS Capital Funding, Ltd. Class Description: $131,000,000 Class A-1 Senior Secured Floating Rate Term Notes Due 2033 -- Prior Rating: Baa1 on review for possible downgrade -- Current Rating: B1, on review for possible downgrade Class Description: $131,000,000 Class A-2 Senior Secured Floating Rate Revolving Notes Due 2033 -- Prior Rating: Baa1 on review for possible downgrade -- Current Rating: B1, on review for possible downgrade Class Description: $132,000,000 Class A-2 Combined Passthrough Note Security Due 2033 -- Prior Rating: Baa1 on review for possible downgrade -- Current Rating: B1, on review for possible downgrade According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. ACA FINANCIAL: S&P Puts 'BB-' Rating on $29.3 Mil. Insured Bonds ---------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB-' rating on Independence County, Arkansas's $29.3 million power revenue bonds on CreditWatch with negative implications. Independence County, Arkansas issued the bonds to fund a hydroelectric project (Independence County Hydroelectric). ACA Financial Guaranty Corp. (CCC/Watch Dev/--) insures the bonds. The move to CreditWatch negative is driven by the delay of the completion of the cap, turbine stoppages, and reported modest damage to the facilities caused by the heavy rainfalls that have led to high water levels and flooding. The project is seeking relief from the Federal Emergency Management Agency and is preparing a report for the agency. This event is adding additional pressure to the project's constrained liquidity position. It is not known at this point when the work can continue on the caps due to weather or release of water from dams upstream of the project. Currently, releases from upstream dams are being controlled to mitigate the extensive flooding downstream. The project has used the debt service reserve to support the last two payments and will need to use it again for the May 2008 payment of $1.96 million. The current balance of the debt service reserves is about $1.9 million and the project has accrued about $1 million for the May debt service payment. "The CreditWatch listing indicates that we could lower the rating in the next few months if heavy rains continue to hamper operations, the completion and insurance of the cap on Dam 3 are not resolved in the near term in the project's favor, and if there are significant damages incurred with high water flows," said Standard & Poor's credit analyst Trevor D'Olier-Lees. ALANAR INC: Trial on Investor Claims Procedure Set for May 1 ------------------------------------------------------------ The U.S. District Court for the Southern District of Indiana will conduct a hearing on May 1, 2008, at 4:00 p.m., to consider the approval of a proposed investor claims procedure that receiver Bradley W. Skolnik recommended in the case of Alanar Inc., Churchmen's Investment Corporation, and other defendants. The hearing will be held in the courtroom of Judge David Franklin Hamilton at 46 East Ohio Street, Room 344 in Indianapolis, Indiana. Interested parties may write objections, comments and recommendations regarding the proposed investor claims procedure to: The Clerk U.S. District Court for the Southern District of Ohio 46 East Ohio Street, Room 344 Indianapolis, IN 46204 and also send a copy to: Bradley W. Skolnik, Receiver c/o Stewart & Irwin PC 251 East Ohio Street, Suite 1100 Indianapolis, IN 46204 and to: Intervening Bondholder Committee 524 Chuck Wagon Mustang, OK 73064 Electronic mails should be sent to the court clerk at: sec- alanar@insd.uscourts.gov, with copies to the receiver at: receiver@silegal.com and the intervening bondholder committee at: robtbolton@msn.com Objections must be received no later than April 24, 2008. ANIC Calculation The receiver will mail a claims packet to each investor listed in the record within 45 days after the court approves the claims procedures. The receiver will also provide a claims packet to anyone who requests one. The claims packet will include a statement of claim for listing the claimant's adjusted net investor claim. The receiver will calculate the ANIC by determining the total payments by that investor to an Alanar business entity in connection with bond issues or funds and by substracting payments made to the investor or their investment in bond issues or funds. Investors with multiple investments, the receiver will net out positive and negative ANIC to arrive at a combined ANIC. Investors who agree with the receiver's ANIC calculation need not take any action to preserve their claims. Disagreeing investors will need to file a completed form with supporting information and a proposed time limit, expected at 90 days after approval of claims procedure, asking the receiver to recalculate the ANIC. Dissatisfied investors must ask the Court for a final determination. The ANIC will be used to allocate fair shares of assets available for investor distribution. Details can be obtained at: http://www.alanarinfo.com/ Affinity Fraud As reported in the Class Action Reporter on July 29, 2005, the Securities and Exchange Commission on July 26, obtained an Order of Permanent Injunction and Other Relief against Alanar Inc., Vaughn A. Reeves, Sr., Vaughn A. Reeves, Jr., J. Christopher Reeves, Joshua C. Reeves, a group of 37 bond funds, and Guardian Services, LLC, First Financial Services of Sullivan County, and The Liberty Group Inc. -- the Paying Agents, enjoining them from violating the anti-fraud provisions of the federal securities laws. The Order of Permanent Injunction also freezes the assets of Alanar, the Reeves and six companies controlled by the Reeves, pending the resolution of the appropriate amount of disgorgement and civil penalties, requires the defendants to give an accounting, prohibits document destruction, permits expedited discovery, requires the defendants to comply with certain undertakings and appoints an independent monitor who will have day-to-day approval authority over all facets of the defendants' operations. The defendants consented to the Order of Permanent Injunction without admitting or denying the allegations of the Commission's complaint. On Dec. 14, 2007, the SEC filed a Motion for Order of Disgorgement, Prejudgment Interest and Civil Penalties against the Reeves Defendants. A pdf copy of that motion can be obtained at: http://ResearchArchives.com/t/s?29fd ALASKA COMMUNICATIONS:To Acquire Crest Communications for $70 Mil. ------------------------------------------------------------------ Alaska Communications Systems Group Inc. entered into an agreement to purchase Crest Communications Corporation, owner and operator of the North Star submarine fiber-optic cable, one of three existing submarine fibers connecting Alaska to the continental United States. Alaska Communications is acquiring Crest, free of debt, for a cash consideration of approximately $70 million. The transaction, which is subject to various closing conditions, as well as federal and state regulatory approval, is expected to close in the second half of 2008. "This acquisition tightly complements our new fiber build, the Alaska Oregon Network, by providing meaningful operating efficiencies and cost synergies; offering Enterprise customers the only diverse and redundant routing of traffic between Alaska and the Lower 48 from a single carrier; enabling traffic management via Network Operations Control Centers in Alaska and the Lower 48; and connecting to Southeast Alaska on the way to the Lower 48," Liane Pelletier, Alaska Communications Systems president, chief executive officer and chairman, said. "The acquisition will also drive further utilization of ACS' differentiated Alaska terrestrial assets from Crest's customer base; and allow ACS to participate in the fast-growing bandwidth market ahead of AKORN's turn up date of Q109." The company expects the acquisition will provide it with a new source of cash flows: $11 million in annual recurring revenue; an EBITDA contribution from recurring revenue of $3 million annually; and additional non-recurring IRU sales that have averaged approximately $9 million per annum. Crest's system includes an undersea fiber system of approximately 1,900 miles with cable landing facilities in Whittier, Juneau, and Valdez, Alaska, and Nedonna Beach, Oregon. The system also includes terrestrial transport components linking Nedonna Beach, Oregon to a Network Operations Control Center in Hillsboro, Oregon and collocation facilities in Portland, Oregon and Seattle, Washington. Crest has 18 employees responsible for its network, sales, regulatory compliance, and administration. Alaska Communications expects the Crest acquisition to provide cost synergies of approximately $1 million per annum in operating expenses for the Alaska Oregon Network. The company plans to fund a substantial portion of the purchase price from cash on hand, cash flow from operations and by drawing up to $20 million on its existing revolving credit facility. About Alaska Communications Systems Based in Anchorage, Alaska, Alaska Communications Systems -- http://www.acsalaska.com/-- provides integrated communications in Alaska, offering local telephone services, wireless, long distance, data, and Internet services to business and residential customers throughout Alaska. ALASKA COMMUNICATIONS: Plans to Offer Up to $100 Million Notes -------------------------------------------------------------- Alaska Communications Systems Group Inc. intends to offer, subject to market conditions and other factors, up to $100 million aggregate principal amount of convertible notes due 2013. Alaska Communications also expects to grant the initial purchasers an option to purchase up to an additional $15 million aggregate principal amount of such notes to cover over-allotments. The notes will be offered only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933. When issued, the notes will be unsecured obligations of Alaska Communications, subordinate to its obligations under its senior credit facility, will pay interest semi-annually and will be convertible upon satisfaction of certain conditions. Upon conversion, the holder will receive an amount in cash, shares of Alaska Communications common stock or a combination of cash and shares of Alaska Communications common stock. The notes will be guaranteed by substantially all of the company's existing subsidiaries. Holders of the notes will have the right to require Alaska Communications to repurchase all or some of their notes at 100% of their principal, plus any accrued interest, upon the occurrence of certain events. Alaska Communications intends to use the proceeds from this offering primarily to complete financing of the company's AKORN fiber construction project and other capital expenditures in accordance with its senior credit facility. The company also expects to enter into convertible note hedge transactions with affiliates of certain of the initial purchasers for the purpose of reducing the potential dilution to common stockholders. Alaska Communications also intends to enter into warrant transactions with the same counterparties. The company expects the counterparties to the note hedge and warrant transactions, or their affiliates, to enter into derivative transactions concurrently with or shortly after the pricing of the notes. These derivative transactions could have the effect of increasing, or preventing a decline in, the price of its common stock concurrently with or after the pricing of the notes or the exercise of the over-allotment option. About Alaska Communications Systems Based in Anchorage, Alaska, Alaska Communications Systems -- http://www.acsalaska.com/-- provides integrated communications in Alaska, offering local telephone services, wireless, long distance, data, and Internet services to business and residential customers throughout Alaska. ALASKA COMMUNICATIONS: S&P Ratings Unmoved by Proposed Crest Deal ----------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings and outlook on Anchorage, Alaska-based Alaska Communications Systems Holdings Inc. (B+/Stable) are not immediately affected by the company's proposed acquisition of Crest Communications Corp. for $70 million and its subsequent offering of $100 million of convertible notes due 2013 under rule 144A without registration rights. Proceeds from the notes will be used to fund the company's fiber build to the lower 48 states, as well as the Crest acquisition, which will give ACS redundant undersea fiber services. S&P's rating and outlook already incorporated the expectation that leverage would increase to the low 4x area from about 3.3x at year-end 2007. Longer-term, S&P remains concerned about growth prospects related to this venture as ACS' main competitor, GCI Inc. already has a strong foothold in the carrier/long-distance market. Additionally, given ACS' substantial dividend payout and the required capital expenditures related to the project, the company's financial flexibility would be constrained if operating conditions weaken. ALEXANDER PARK: Moody's Junks Ratings on Two Classes of 2039 Notes ------------------------------------------------------------------ Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Alexander Park CDO I, Ltd. Class Description: Class A-2 Floating Rate Term Notes, Due 2039 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Aa3, on review for possible downgrade Class Description: $22,000,000 Class B Floating Rate Term Notes, Due 2039 -- Prior Rating: A2, on review for possible downgrade -- Current Rating: Baa2, on review for possible downgrade Class Description: $10,000,000 Class C Fixed Rate Term Notes, Due 2039 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ba2, on review for possible downgrade Additionally, Moody's downgraded these notes: Class Description: $12,000,000 Class D-1 Floating Rate Term Notes, Due 2039 -- Prior Rating: Caa1, on review for possible downgrade -- Current Rating: Ca Class Description: $3,000,000 Class D-2 Fixed Rate Term Notes, Due 2039 -- Prior Rating: Caa1, 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. ALPHA NATURAL: S&P Attaches 'B' Rating on $287.5 Mil. Senior Notes ------------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on Alpha Natural Resources Inc. to positive from stable. At the same time, S&P assigned a 'B' rating, one notch below the 'B+' corporate credit rating to the company's $287.5 million 2.375% senior unsecured convertible notes due 2015. S&P assigned a '5' recovery rating to the notes. The '5' recovery rating indicates S&P's expectation of modest (10%-30%) recovery in the event of a payment default. S&P affirmed all other ratings, including the corporate credit rating. Alpha Natural will use proceeds from the recently sold note issue, in addition to $150 million and the potential of 15% in proceeds from a concurrent equity offering, to repurchase up to the full $175 million outstanding principal amount of its subsidiaries' 10% senior notes due 2012, and for other general corporate purposes. Those purposes may include acquisitions or investments in businesses, products, or technologies and repayment of other indebtedness. Pro forma for this financing, Alpha will have about $725 million in debt (adjusted for operating leases and asset retirement obligations). "The outlook revision reflects our expectation," said Standard & Poor's credit analyst Maurice Austin, "that, because of relatively positive coal industry fundamentals, which we expect will continue for several quarters, the company's financial profile is likely to remain at a level we would consider strong for the current rating. This expectation is despite higher debt levels associated with the recent convertible note offering." Mr. Austin said, "We could upgrade the company if it succeeds at maintaining a conservatively managed balance sheet, strengthening its business profile or steadily expanding margins to provide cushion in the against a cyclical downturn. We could revise the outlook back to stable if the company assumes a more aggressive financial posture, costs rise significantly, coal prices decline materially, or liquidity substantially erodes." AMERICAN HOUSING: S&P Downgrades Rating on 2003C Bonds to 'BB' -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on American Housing Foundation, Texas' series 2003C bonds to 'BB' from 'BBB-'. The outlook is negative. At the same time, Standard & Poor's revised its rating outlook on the foundation's series 2003A, 2003A-T, 2003B, and 2003B-T bonds to negative from stable and affirmed its ratings on the bonds. The downgrade and outlook revision reflect unfavorable auction rate market conditions which have led to failed remarketings beginning in July 2007, and increased rates on the series 2003A and 2003B auction rate bonds, potential for increased swap-related losses in 2008 due to declining LIBOR rates, and debt service coverage lower than originally rated levels in fiscal 2006 of 2.09x, 1.31x, and 1.03x on the series 2003A, 2003B, and 2003C bonds, respectively with unaudited 2007 financials indicating slightly higher coverage. American Housing Foundation consists of a pool of 17 properties in four states and seven different cities. "The negative outlook reflects the pool's exposure to interest rate swaps, with about 87% of the total debt being variable", said Standard & Poor's credit analyst Renee Berson. As a result of the project's high exposure to interest rate swaps S&P expects it to pay more than $3 million in fiscal 2008. Should rates remain at current levels (as of March 2008) or continue to decline, negative rating action may occur. In addition, the negative outlook reflects the project's recent failures to successfully market its series A, A-T, B, and B-T auction rate bonds beginning in July 2007, leading to higher than expected penalty interest rates on the bonds. This is mitigated somewhat by declining short-term rates, which reduce the pool's interest costs if it has to pay penalty rates on its auction rate debt. AMERICAN LAFRANCE: Adds Two More Contracts for Assumption --------------------------------------------------------- American LaFrance, LLC, previously delivered to the U.S. Bankruptcy Court for the District of Delaware an Assumption Notice of more than 1,000 contracts and leases it intends to assume, assign or sell pursuant to its motion to sell substantially all of its assets. The Debtor filed with the Court a Supplemental Notice dated March 31, 2008, stating that they intend to assume, sell or assign two more sales contract -- one with Watertown and the other with Forman Fire District. The Debtor also clarified that it will not assume, sell or assign these 14 leases, license agreements and executory contracts: Contracting Party Contract Amount ----------------- --------------- Defiance FD, OH, SO#070101 $366,857 New Orleans, SO#060435 327,964 New Orleans, SO#060436 327,964 New Orleans, SO#060437 327,964 Lovington FD, SO#070171 284,238 Truck Centers Demo, SO#070155 266,494 Big Cork Screw Island Fire Control & Rescue 215,652 White County, SO#070044 206,208 Espanola FD, SO#070135 179,864 Bay Fire Products - Demo, SO#070271 179,799 Murphy's Fire, Demo, SO#070128 168,956 Bay Fire Products - Demo, SO#070268 168,807 West Virginia Truck, SO#070245 156,978 Matlacha/Pine Island, FL, SO#070181 120,569 The 14 Fire Contracts were already rejected by the Debtor pursuant to its First Omnibus Contract Rejection Motion. More Parties Object In separate filings, 16 parties-in-interest comprised of creditors, customers and dealers filed responses to the Debtor's Assumption Notice. Six creditors explicitly asserted the value of the cure amounts the Debtor supposedly owe them: Creditor Cure Amount -------- ----------- Daimler Trucks North America LLC $12,013,728 formerly known as Freightliner, LLC, International Business Machines 1,651,439 Corporation and IBM Credit, LLC Oracle USA, Inc. 552,013 Freightliner of Vancouver Ltd. 90,487 United Telephone Company of the 37,750 Carolinas/ Embarq Hi-Tech Emergency Vehicle Service, Inc. 21,930 The 10 remaining customers and dealers that filed responses to the Assumption Notice are: Customers --------- * Augusta County, Virginia * City of Cambridge, Ontario * City of Phoenix, Arizona * City of Plantation, Florida * Clay Volunteer Fire Department, Inc. * Clayton County, Georgia * Town of Buckeye, Arizona * Southwest Emergency Response Team Dealers ------- * Diehl and Sons, Inc., doing business as NY Freightliner * Freightliner of San Antonio, Ltd. The Customers maintain that not only did the Debtor breach their contracts by either late delivery or non-delivery, it primarily failed to take into account the liquidity damages for late delivery that are up to now accruing at a range of $200 to $250 per day and should be reflected in the cure amounts due to the subject Contracts. Furthermore, the Debtor has not provided adequate assurance for future performance in the event that the Contracts are to be assumed by the Debtor or whoever it designates to, the Customers assert. Kristi J. Doughty, Esq., at Whittington & Aulgur, in Middletown, Delaware, counsel to the City of Plantation, relates that the City seeks to have its contract stricken out of the Contract List attached to the Assumption Notice as the City's ambulance contract has been canceled. One of the responding dealers, Diehl and Sons echoed the same sentiment as the New York Port Authority has canceled its order for chassis. Diehl and Sons notes that it doesn't want to deliver equipments that have no customers. Accordingly, the Objecting Parties ask the Court to deny the Debtor's request for contract assumption unless it has (i) indicated the correct cure amounts; (ii) provided adequate assurance of future performance; and (iii) removed the contracts that have been canceled or are non-existent. 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. 13; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN LAFRANCE: Court Approves Premier Logistics Settlement -------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware approved a motion filed by American LaFrance, LLC to approve its agreement with Premier Logistics Solutions Warehousing, LLC. The Debtor stores certain Inventory at Premier's warehouse near Hanahan, South Carolina. The Debtor is in the process of removing all of its Inventory from Premier's warehouse and moving it to a manufacturing facility in Summerville, South Carolina. The Debtor paid Premier $250,631 on January 7, 2008. As reported by the Troubled Company Reporter on March 13, 2008, Christopher A. Ward, Esq., at Klehr, Harrison, Harvey, Branzenburg & Ellers, LLP, in Wilmington, Delaware, informed the Court that Premier asserts a warehouseman's lien on the Inventory and has limited the Debtor's ability to remove the Inventory absent payment of certain alleged outstanding and estimated future charges. The parties also disagreed on whether Premier has a properly perfected warehouseman's lien under applicable state law and Premier is entitled to a termination fee. Thus, to resolve their dispute, the parties entered into a settlement agreement, whereby: (a) The Debtor will pay Premier $49,814 -- the February Settlement Sum -- in satisfaction of all outstanding warehousing and related services provided from before the Petition Date through February 29, 2008. About $35,809 will be for prepetition services rendered and $14,005 will be for postpetition services rendered; (b) The Debtor will pay Premier $63,273 -- the March Settlement Sum -- for estimated warehousing and related services provided from March 1, 2008 through March 31, 2008; (c) No later than April 10, 2008, the parties will reconcile the March Settlement Sum and the actual warehousing and related charges incurred during March 2008. Either the Debtor will remit to Premier the amount of any undisputed actual warehousing charges in excess of the March Settlement Sum or Premier will remit to the Debtor the amount of the difference between the March Settlement Sum and the amount of undisputed actual warehousing services for March 2008; (d) The Debtor will pay Premier $89,500 as termination fee; (e) The Debtor will escrow the Settlement Sums pending Court approval; (f) Once the Debtor fulfills the Settlement terms, it will be permitted to remove the Inventory from Premier's warehouse. All Inventory will be removed from Premier's warehouse before March 31, 2008; and (g) The parties will exchange mutual releases. 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. 13; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN LAFRANCE: Drops Motion to Remove Freightliner from Panel ----------------------------------------------------------------- American LaFrance, LLC, withdraws its request to remove Daimler Trucks North America, LLC, formerly known as, Freightliner LLC, from the Official Committee of Unsecured Creditors. The Debtor did not state the reason for the withdrawal. As reported by the Troubled Company Reporter on March 26, 2008, American LaFrance asked the U.S. Bankruptcy Court for the District of Delaware to remove Freightliner from the Committee pursuant to SectionS 105(a) and 1102(a)(4) of the Bankruptcy Code. Christopher A. Ward, Esq., at Klehr, Harrison, Harvey, Branzburg & Ellers, LLP, in Wilmington, Delaware, contended that Freightliner has, in many instances, breached its fiduciary duties to the Debtor's unsecured creditors. As a direct competitor to the Debtor, Freightliner recently "poached" the executive assistant for the Debtor's current chief executive officer and several previous senior executives, Mr. Ward related. The executive assistant's tenure spanned over a decade, within which time she has gained direct access to and knowledge of all high-level decisions made and considered by the Debtor, and to all key data and proprietary information. Mr. Ward asserted that a Committee member, let alone the chairman of the Committee, cannot steal key employees from a reorganizing debtor without breaching its fiduciary duty to unsecured creditors. This direct competitive attack, he stated, on the viability and success of the Debtor's business and reorganization effort, by itself, is hostile to the interests of unsecured creditors. The Debtor also noted that Freightliner breached its fiduciary duties by refusing to recuse itself from settlement discussions between the Debtor and the Committee so that its interests and claims against the Debtors could be openly discussed. Mr. Ward cited that Freightliner, as chairman of the Committee, joined in the objection to any communication between the Debtor and other members of the Committee, which could substantially fund a plan of reorganization and provide a meaningful distribution to unsecured creditors. Mr. Ward argued that given Freightliner's bias and desire to put the Debtor out of business and given that its motives are distinct from those of all other creditors of the Debtor, Freightliner should be removed from the Committee. He cited In re Venturelink Holdings, Inc., 299 B.R. 420, 423 , which held that, "removal is not only mandated for actual breaches of fiduciary duties but also whenever there is an appearance of a fiduciary breach," and, In re SPM Mfg. Corp., 984 F.2d 1305, 1317 which states that "[i]f the Unsecured Creditors' Committee fails to be properly representatives of the unsecured creditors, any party in interest can move to have the Committee reconstituted". Mr. Ward also asserted that Freightliner should also be removed from the Committee because it has incurable and substantial conflicts of interest with its fiduciary duties to the unsecured creditors: (i) For the 12-year period ending December 2005, Freightliner was the sole owner of the Debtor. Until April 2007, Freightliner owned preferred equity in the Debtor. Until mid-2007, Freightliner operated the Debtor under the Transition Services Agreement using Freightliner's computer systems. Freightliner is responsible, in no small part, for the Debtor's bankruptcy. (ii) Freightliner owes the Debtor millions of dollars, including substantial warranty obligations that have been unpaid for months, and has received over $40,000,000 in alleged avoidable transfers from the Debtor. Given the amount of money involved, the claims against Freightliner, both avoidance actions and otherwise, are substantial assets of the estate. (iii) Freightliner is also direct competitor of the Debtor for the sale of the Condor-line of trucks. (iv) Freightliner commenced state-court litigation against the Debtor, having sued it in December 2007 asserting claims in excess of $10,000,000. However, Freightliner's alleged claims against the Debtor, the basis for Freightliner's service on the Committee, will be significantly reduced or eliminated by amounts owed by Freightliner to the Debtor. "In sum, these impermissible conflicts make it impossible for Freightliner to act as a fiduciary to the very creditors that would be harmed if Freightliner had its way and the Debtor were put out of business," Mr. Ward tells the Court. 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. 13; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERISAFE INC: AM Best Maintains 'bb' Ratings on Four Debts ----------------------------------------------------------- A.M. Best Co. affirmed the issuer credit rating of "bbb-" and debt ratings of AMERISAFE, Inc. Concurrently, A.M. Best affirmed the financial strength rating of A- (Excellent) and ICRs of "a-" of Amerisafe Insurance Group. Amerisafe includes American Interstate Insurance Company, Silver Oak Casualty, Inc. and American Interstate Insurance Company of Texas, which are operating subsidiaries of AMERISAFE, Inc. The outlook for all ratings is stable. The ratings reflect Amerisafe's strong risk-adjusted capitalization, improved underwriting and operating results and solid market presence within its niche workers' compensation market for high hazard risks. These positive factors are somewhat offset by Amerisafe's elevated underwriting leverage measures, product concentration and historical adverse loss reserve development, which has caused volatility in operating results and capital generation. The rating outlook reflects A.M. Best's expectations that the improvement in underwriting and operating performance will be sustained over the medium term and capitalization will remain well supportive of the ratings. These debt ratings have been affirmed: AMERISAFE, Inc. -- "bb" on $5 million convertible preferred stock, series C -- "bb" on $20 million convertible preferred stock, series D -- "bb" on $25.8 million subordinated trust preferred securities, due 2033 -- "bb" on $10.3 million subordinated trust preferred securities, due 2034 AMR CORP: Halts Management Hiring Over Rising Fuel Costs -------------------------------------------------------- AMR Corp.'s unit, American Airlines Inc., is freezing engagement of management and support personnel for an indefinite period in response to the rising costs of fuel and declining U.S. economy, The Associated Press and The Dallas Morning News quote company spokesman Andy Backover. Both reports note the crisis in the airline industry, saying American Airlines' announcement follows a series of other turmoil hitting other airline operators. Aloha Airlines Inc. filed for chapter 11 bankruptcy on March 18, 2008. ATA Airlines Inc., fka American Trans Air Inc., filed chapter 22 on April 2, 2008. Champion Air said it will shut down operations by the end of May 2008. American Airlines staved off a likely bankruptcy in 2003 through reduction of employees and costs, reports relate. At least 30% of the airline's operating costs goes to fuel. The company couldn't "get any relief from" fuel cost issues, reports say, citing Mr. Backover. About AMR Corp. Based in Fort Worth, Texas, American Airlines Inc., a wholly owned and principal subsidiary of AMR Corp., (NYSE: AMR) -- http://www.aa.com/-- operates the largest scheduled passenger airline in the world. At Dec. 31, 2007, American provided scheduled jet service to about 170 destinations throughout North America, the Caribbean, Latin America, Europe and Asia. In addition, AMR Eagle Holding Corporation, a wholly owned subsidiary of AMR, owns two regional airlines: American Eagle Airlines, Inc. and Executive Airlines Inc. American also contracts with two independently owned regional airlines, which do business as the American Connection. The American Eagle carriers and the American Connection carriers provide connecting service from eight of American's high-traffic cities to smaller markets throughout the United States, Canada, Mexico and the Caribbean. * * * As reported in the Troubled Company Reporter on March 25, 2008, Standard & Poor's Ratings Services revised its outlook on the long-term ratings on AMR Corp. (B/Negative/B-3) and subsidiary American Airlines Inc. (B/Negative/--) to negative from positive. S&P also lowered its short-term rating on AMR to 'B-3' from 'B-2' and affirmed all other ratings on AMR and American. The TCR related on March 20, 2008, that Fitch Ratings has affirmed the ratings of American Airlines, Inc. Class A & B secured notes due 2009, as: $180,457,000 7.25% class A at 'BBB-'; and $42,031,000 9.00% class B at 'B'. Fitch's affirmation on the class A notes primarily reflects the value of the spare parts securing the notes, which has remained consistent since close; the availability of Section 1110 of the U.S. Bankruptcy Code; AA's credit quality; and the liquidity facilities for the class A notes only, which provide four successive semi-annual interest payments at the existing fixed interest rate. Fitch's rating on the class B notes primarily reflects AA's credit quality and the steady value of the spare parts. ASCALADE COMMS: Court Extends Creditor Protection Period to June 4 ------------------------------------------------------------------ The British Columbia Supreme Court extended the creditor protection period granted to Ascalade Communications Inc. under the Companies' Creditors Arrangement Act from April 2, 2008, to June 4, 2008. On March 13, 2008 Ascalade's subsidiary in Hong Kong, Ascalade Communications Limited, filed a Scheme of Arrangement under Section 166 of the Companies Ordinance or Chapter 32 of Hong Kong. An application to convene a Creditors' Meeting was filed in Hong Kong on April 1, 2008. The court in Hong Kong granted leave to ACL to convene a Creditors' Meeting. The meeting is scheduled for May 2, 2008 in Hong Kong. In addition, the court ordered that the hearing to sanction the Scheme of Arrangement be heard on May 13, 2008. The sale of Ascalade's property located in Richmond, British Columbia, held through a subsidiary, closed on March 31, 2008, for gross proceeds of $8.4 million. In addition, Ascalade has provided notice to substantially all of its remaining employees in Richmond that their employment will cease on May 15, 2008. Also, operations in the company's factory located in China have begun focusing on the orderly wind down of operations and the disposition of its inventory and other assets. To that end, Ascalade has provided its customers with support to find new product supply and the company has ceased taking new orders as of March 31, 2008. Ascalade is focusing on extracting value from its assets and in particular, on the sale of its factory and equipment in China and its intellectual property. 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 and the outcome of the Scheme of Arrangement in Hong Kong. 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. AYRESOME CDO: Eroding Credit Quality Spurs Moody's Rating Review ---------------------------------------------------------------- Moody's Investors Service placed on review for possible downgrade the ratings on these notes issued by Ayresome CDO I,Ltd. Class Description: $9,250,000 Class D Deferrable Interest Floating Rate Secured Notes due 2045 -- Prior Rating: Ba2 -- Current Rating: Ba2, on review for possible downgrade Moody's also downgraded and left on review for possible further downgrade the ratings on these notes: Class Description: $71,950,000 Class A-2 Floating Rate Secured Notes due 2045 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Aa2, on review for possible downgrade Class Description: $20,000,000 Class A-3 Floating Rate Secured Notes due 2045 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Aa1, on review for possible downgrade Class Description: $26,250,000 Class B Floating Rate Secured Notes due 2045 -- Prior Rating: Aa2, on review for possible downgrade -- Current Rating: A2, on review for possible downgrade Class Description: $7,500,000 Class C Deferrable Interest Floating Rate Secured Notes due 2045 -- Prior Rating: A2, on review for possible downgrade -- Current Rating: Ba1, on review for possible downgrade According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. BEXAR COUNTY HOUSING: Moody's Confirms B1 Rating on Revenue Bonds ----------------------------------------------------------------- Moody's Investors Service affirmed the B1 rating on the Bexar County Housing Finance Corporation (The Waters at Northern Hills) Multifamily Housing Revenue Bonds Series 2001A and has also affirmed the B3 on Series 2001C. The rating affirmation is based upon Moody's review of audited financial statements for 2006, full-year unaudited financial statements for 2007 and occupancy reports from management. The negative outlook has also been affirmed. Legal security: The bonds are limited obligations payable solely from the revenues, receipts and security pledged in the Trust Indenture. Credit strengths -- Fully funded debt service reserve funds (as of March 3, 2008) Credit challenges -- Debt service coverage levels of less than 1.0x for both classes ( 2006 audit) -- Current occupancy (Feb 2008) is low at 84.8% -- Occupancy the in the subject's submarket is forecasted to decline in 2007 -- The Series 2001 C debt service fund was under funded by $1,836 (as of March 3, 2008) -- The Capital Replacement fund has a zero balance (March 3, 2008) -- The property owner is disputing property taxes with the local tax jurisdiction. As of Dec. 31, 2006, the accrued total of taxes and interest owed (if dispute not resolved) is $850,000. Recent Developments and Results Debt service coverage levels calculated from the 2006 audit (calculation includes expense for deposit to Capital Replacement fund regardless of whether deposit was actually made) were very low at 0.77x 2001A debt service and 0.78 2001C debt service. Unaudited financial statements for 2007 indicate 1.11x seniors and 1.08x subordinate debt; however, this does not include an expense for property taxes as the property owner is disputing the charges with the local tax jurisdiction and audited statements tend to produce lower coverage than interim statements. Therefore, Moody's expects audited 2007 results to provide weaker coverage than interim statements. The financial stress the project is facing is also evident in the debt service fund of the Series 2001C bonds being under funded by approximately $1,836 as of March 3, 2008. Moody's believes that the thin debt service coverage for the 2001A bonds is reflected in the B1 and B3 ratings. Occupancy (Feb 2008) is low at 84.8%. Market data provided by Torto Wheaton Research indicate that multi-family occupancy for the subject's submarket for 2007 was 95.1%. TWR forecasts that occupancy in the submarket will decline to 93.5% in 2008. Outlook The outlook for the bonds is negative based upon very thin coverage, an under funded debt service fund for the 2001C bonds and the expectation that a lack of money in the Capital Replacement fund will result in deferred maintenance. In addition, the negative impact of an unfavorable outcome of the property tax dispute was considered. BLACK DIAMOND: Can Access CIT Group's $15 Million Facility ---------------------------------------------------------- The United States Bankruptcy Court for the Eastern District of Kentucky allowed Black Diamond Resources LLC to access up to $15 million in postpetition financing from CIT Group Inc., Bill Rochelle of Bloomberg News reports. Mr. Rochelle says CIT Group sweetened its original $12 million offer by adding $3 million. Furthermore, CIT Group lowered its loan's interest rate by 1.5% and stretched the maturity date from May 30, 2008, to Dec. 31, 2008, Mr. Rochelle says. Sempra Energy and Constellation Energy Group offered loans to finance the Debtor's bankruptcy case forcing CIT Group to improve on its offer, the report says. About Black Diamond Headquartered in Pikeville, Kentucky, Black Diamond Mining Co., LLC, is a coal-mine operator. The company and seven of its affiliates filed for Chapter 11 protection on March 4, 2008 (Bankr. E.D. Ky. Lead Case No.08-70109). David M. Cantor, Esq., at Seiller Waterman, LLC, represents the Debtors in these cases. No Official Committee of Unsecured Creditors has been appointed in these cases to date. When the Debtor filed for protection against their creditors, it listed assets and debts between $100 million to $500 million. Prudential Insurance Co. of America and subsidiaries of CIT Group Inc., C.I.T. Capital U.S.A., Inc. and The C.I.T Group/Commercial Services Inc., filed involuntary Chapter 11 petitions against FCDC Coal Inc., Black Diamond Mining Co., Martin Coal Processing Corp., Spurlock Energy Corp., Turner Elkhorn Mining Co., Wolverine Resources, Inc. and Black Diamond Land Co. LLC on Feb. 19, 2008 (Bankr. E.D. Ky. Case Nos. 08-50369 to 08-50372 and 08-70066 to 08-70067). Robert J. Brown, Esq., at Wyatt, Tarrant & Combs, L.L.P., represent the petitioners. According to the petitioners, the Debtors' owe them $150 million. As reported in the Troubled Company Reporter on Feb. 25, 2008, the petitioning creditors sought the appointment of a Chapter 11 trustee for the Debtors. The petitioners alleged that the Debtors' controlling equity owner Harold E. Sergent and other shareholders are "hopelessly conflicted." They insisted that the company has no money since losing $25 million last year and they had refused to dole out a single cent until a trustee assumes control of the company and comes up with an appropriate budget. The TCR on March 4, 2008, reported that the Court directed the appointment of a chief restructuring officer -- either Ira Genser or Steven Cohn from Alvarez & Marsal North America LLC -- for FCDC Coal Inc. and Black Diamond Mining Co. The Court said the CRO will "have the same powers as a trustee," which will include retention and termination of workers, and the investigation of the Debtors' officers. BLEECKER STRUCTURED: Moody's Reviews 'B3' Ratings for Likely Cuts ----------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Bleecker Structured Asset Funding, Ltd. Class Description: Class A-1 First Priority Senior Secured Floating Rate Notes Due 2035 -- Prior Rating: Ba3 -- Current Rating: B3, on review for possible downgrade Class Description: $315,000,000 Class A-2 First Priority Senior Secured Floating Rate Notes Due April 1, 2035 -- Prior Rating: Ba3 -- Current Rating: B3, on review for possible downgrade According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. BROADWICK FUNDING: Moody's Reviews 'Ba2' Rating on $38 Mil. Notes ----------------------------------------------------------------- Moody's Investors Service placed on review for possible downgrade the ratings on these notes issued by Broadwick Funding, Ltd. Class Description: $552,500,000 Class A-1-b Floating Rate Notes Due 2041 -- Prior Rating: Aaa -- Current Rating: Aaa, on review for possible downgrade Moody's also downgraded and left on review for possible further downgrade the ratings on these notes: Class Description: $110,000,000 Class A-2 Floating Rate Notes Due 2041 -- Prior Rating: Aaa -- Current Rating: Aa3, on review for possible downgrade Class Description: $112,000,000 Class B Floating Rate Notes Due 2041 -- Prior Rating: Aa2, on review for possible downgrade -- Current Rating: A3, on review for possible downgrade Class Description: $40,000,000 Class C Floating Rate Deferrable Notes Due 2041 -- Prior Rating: A2, on review for possible downgrade -- Current Rating: Baa3, on review for possible downgrade Class Description: $38,000,000 Class D Floating Rate Deferrable Notes Due 2041 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ba2, on review for possible downgrade According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. CAMBER 3: Moody's Reviews Ratings on Four Classes of 2040 Notes --------------------------------------------------------------- Moody's Investors Service placed on review for possible downgrade the ratings on these notes issued by Camber 3 plc. Class Description: $110,500,000 Class A-2 Floating Rate Notes due 2040 -- Prior Rating: Aaa -- Current Rating: Aaa, on review for possible downgrade Moody's also downgraded and left on review for possible further downgrade the ratings on these notes: Class Description: $45,500,000 Class B Floating Rate Notes Due 2040 -- Prior Rating: Aa2, on review for possible downgrade -- Current Rating: A2, on review for possible downgrade Class Description: $26,000,000 Class C Deferrable Floating Rate Notes Due 2040 -- Prior Rating: A2, on review for possible downgrade -- Current Rating: Baa3, on review for possible downgrade Class Description: $19,500,000 Class D Deferrable Floating Rate Notes Due 2040 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ba2, on review for possible downgrade According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. CAMBER 5: Moody's Reviews Ratings on Five Notes for Possible Cuts ----------------------------------------------------------------- Moody's Investors Service placed on review for possible downgrade the ratings on these notes issued by CAMBER 5 Ltd. Class Description: $344,000,000 Class A-1 Floating Rate Senior Secured Notes Due 2045 -- Prior Rating: Aaa -- Current Rating: Aaa, on review for possible downgrade Class Description: $23,000,000 Class A-2 Floating Rate Senior Secured Notes Due 2045 -- Prior Rating: Aaa -- Current Rating: Aaa, on review for possible downgrade Moody's also downgraded and left on review for possible further downgrade the ratings on these notes: Class Description: $67,000,000 Class A-3 Floating Rate Senior Secured Notes Due 2045 -- Prior Rating: Aa2 -- Current Rating: A1, on review for possible downgrade Class Description: $19,000,000 Class B Floating Rate Subordinate Secured Notes due 2045 -- Prior Rating: A3, on review for possible downgrade -- Current Rating: Baa3, on review for possible downgrade Class Description: Class C Floating Rate Junior Subordinate Secured Notes Due 2045 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ba2, on review for possible downgrade According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. CANARGO ENERGY: Elects Anthony J. Perry as Non-Executive Director ----------------------------------------------------------------- CanArgo Energy Corporation appointed Anthony J. Perry as an independent non-executive director of the board of CanArgo effective April 1, 2008. He will also join the company's audit committee. Mr. Perry, a British citizen, is an experienced oil and gas professional with over 40 years of organizational, financial, commercial and technical experience within the international exploration and production industry. He has a B.S. degree in Geology from Bristol University and a Diploma of Imperial College London in Petroleum Reservoir Engineering. He is a Chartered Engineer and a distinguished member of the Society of Petroleum Engineers; he is a board member and a former chairman of the London section of the SPE. Mr. Perry began his career as a Petroleum Engineer with Ultramar and a subsidiary of Gulf Oil company in Venezuela. From 1970 to 1978, he worked for a subsidiary of British Petroleum in Abu Dhabi, ultimately as chief petroleum engineer. During the period 1978 to 1983, he held the position of manager of Petroleum engineering at BP Petroleum Development (UK) Ltd. which was a period of major expansion for BP in the North Sea. Later he went on to become manager of operations at Texas Eastern North Sea Inc. before taking up senior management positions at Mobil North Sea Limited as commercial co-ordinator, joint venture co-ordinator and secretary of the Mobil North Sea management council. From 2000 to 2005, he was chairman of Oilfield Production Consultants Limited, a petroleum and reservoir engineering consultancy. "I am extremely pleased to have [Mr. Perry] join us as an independent non-executive director and also as a member of the company's audit committee," Vincent McDonnell, chairman, president and chief executive officer of CanArgo commented. "[Mr. Perry's] broad experience and expertise in oil and gas will be invaluable as we continue to develop and grow the company. This appointment means that we now satisfy the continued listing requirements of the American Stock Exchange for a majority of independent directors on the board and three independent directors on the audit committee." About CanArgo Energy CanArgo Energy Corporation (AMEX: CNR) -- http://www.canargo.com -- acquires, explores, develops, produces, and markets crude oil and natural gas primarily in Georgia and the Republic of Kazakhstan. The company's properties include the Ninotsminda Field covering approximately 3,276 acres located approximately 25 miles north east of the Georgian capital, Tbilisi; and the Kyzyloi Gas Field covering an area of approximately 70,919 gross acres and Akkulka block in Kazakhstan. As of Dec. 31, 2006, it had proved developed and undeveloped gross reserves of 3.379 million barrels of oil and 2.808 billion cubic feet of gas. The company was founded in 1971 and is headquartered in St. Peter Port, British Isles. * * * As reported in the Troubled Company Reporter on March 18, 2008, L J Soldinger Associates LLC raised substantial doubt about the ability of CanArgo Energy Corporation to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2007. The auditor pointed reported that the company has incurred net losses since inception and does not have sufficient funds to execute its business plan or fund operations through the end of 2008. Management estimates its current cash will last through to the third quarter 2008. In addition, the company is restricted from incurring additional debt obligations unless it receives permission from its current lenders. CanArgo Energy posted a net loss of $53,777,214 on total sales of $7,208,666 for the year ended Dec. 13, 2007, as compared with a net loss of $60,540,851 on total sales of $6,526,660 in the prior year. CATHOLIC CHURCH: Davenport's 2nd Amended Disclosure Statement OK'd ------------------------------------------------------------------ The U.S. Bankruptcy Court for the Southern District of Iowa approved on April 3, 2008, the Diocese of Davenport's Second Amended Disclosure Statement explaining its Joint Plan of Reorganization. The Official Committee of Unsecured Creditors is a proponent to the Plan. At a hearing held April 2, 2008, Judge Jackwig directed the Diocese to further amend its First Amended Disclosure Statement pursuant to the "discussion on the record." The Court directed the Diocese's counsel to serve, no later than April 7, 2008, the order approving the Amended Disclosure Statement, notice of deadlines and hearing, the approved Amended Disclosure Statement, the Amended Plan, and the ballot to all parties entitled to vote on the Amended Plan. The Court will convene a hearing on April 30, 2008, to confirm the Amended Plan. Judge Jackwig notes that the hearing is an evidentiary hearing, at which witnesses may testify. The Diocese will provide a witness to testify regarding the requirements of Section 1129(a) of the Bankruptcy Code. Any objections to confirmation of the Plan must be filed by April 23, 2008. Ballots accepting or rejecting the Amended Plan are also due on April 23. Second Amended Disclosure Statement The Second Amended Disclosure Statement dated April 3, 2008, notes that if a Tort Claimant has previously filed a bankruptcy petition, the Tort Claimant should indicate whether any portion of any payment received from the Settlement Trust is subject to turnover to a bankruptcy trustee. The Diocese suggests that the Tort Claimant consult with his or her bankruptcy attorney or trustee to determine whether proceeds of the Tort Claim must be turned over, and whether a portion of the proceeds may be claimed as exempt under applicable law at the time the Tort Claimant's bankruptcy petition was filed. Connection of the Diocese and the Catholic Entities The Diocese discloses it has incurred certain trade debt in the ordinary course of business. As of the bankruptcy filing, the Diocese had outstanding unpaid trade debt of $9,013. As of Feb. 29, 2008, the Diocese had outstanding postpetition trade debt amounting to $150,143. The Diocese believes that the assets of the Catholic Entities do not constitute property of the bankruptcy estate within the meaning of Section 541 of the Bankruptcy Code. However, the Diocese recognizes that lengthy and costly litigation occurred in other dioceses' bankruptcy cases involving that precise issue. In addition, the outcome of the litigation is uncertain given the legal structure of the Parishes and the control of the Diocese of the Parishes. Plan Funding on the Effective Date As additional consideration, the Catholic Entities agreed to sell their Travelers Insurance Policies back to Travelers. The Diocese and the Catholic Entities believe that the Policies have significant value in relation to the global settlement, and that the sale greatly enhances the settlement funds available for distribution to the Tort Claimants under the Amended Plan. Moreover, the settlement removes the uncertainty and expense of litigation among the Diocese, the Catholic Entities, the Settling Insurers and the Creditors Committee. The most recent Catholic Entity Policies sold to Travelers were issued in 1995, and most are much older going back to the 1950s and 60s. Hence, it is extremely unlikely that any non-abuse claims would be made against the Catholic Entities under the Policies because the statute of limitations on non-abuse claims would have run many years ago. Channeling Injunctions The Second Amended Disclosure Statement relates that during settlement negotiations, the Tort Claimants, the Creditors Committee and the Unknown Claim Representative requested a global settlement with the Diocese, the Catholic Entities and the Settling Insurers, in exchange for Plan provisions for channeling (i) injunctions enjoining prosecution of Tort Claims against the Catholic Entities and Settling Insurers, and (ii) of the Tort Claims to the Settlement Trust for treatment and payment. The Amended Disclosure Statement notes that there is no Eighth Circuit Court of Appeals decision addressing the issue of non- debtor channeling injunctions. However, some other courts prohibit non-debtor injunctions under Section 524(e) of the Bankruptcy Code, specifically the Ninth and the Tenth Circuit. If the Bankruptcy Court were to follow the reasoning of the Ninth and Tenth Circuits, the settlement will not occur and the Plan will not be feasible or confirmable, according to the Diocese. Catholic Entities: Important Part of the Settlement The Diocese believes that the $5,900,000 contributed by the Catholic Entities, when combined with the funds to be paid by Travelers and the Diocese, will provide the Tort Claimants with a greater recovery from the Settlement Trust than they would otherwise receive by settling only with the Diocese, and retaining their claims against the Catholic Entities. The Diocese notes that without the inclusion of the Catholic Entities in the settlement, it would trigger a race to the courthouse; the first Tort Claimants to obtain judgments might get something while later claimants would get nothing. By channeling the Tort Claims to the Settlement Trust, Tort Claimants will be paid more than could be realized if the Tort Claimants were not enjoined from prosecuting their claims against the Catholic Entities, the Diocese assures Judge Jackwig. Hence, elimination of the channeling injunctions would result in less money going to the Tort Claimants. The Diocese and the Creditors Committee investigated the insurance coverage of the Catholic Entities available to cover the Tort Claims. Both, independently, concluded that the funds being paid to the Settlement Trust through the Settlement Agreement are fair and reasonable given the extremely limited resources of most of the Catholic Entities, and the cost to litigate actions against them. A full-text copy of the Second Amended Disclosure Statement is available for free at: http://ResearchArchives.com/t/s?2a03 A full-text copy of the Second Amended Plan is available for free at: http://ResearchArchives.com/t/s?2a04 Parties Stipulate The Diocese of Davenport, Century Indemnity Company, as successor to CCI Insurance Company and Insurance Company of North America, and the Official Committee of Unsecured Creditors agree that the First Amended Joint Plan of Reorganization includes provisions to protect the rights of non-settling insurers that resolve Century Indemnity's objection to the Amended Plan's Disclosure Statement, provided that the Amended Plan: -- will be voted on and will come before the U.S. Bankruptcy Court for the Southern District of Iowa for confirmation; and -- is not modified or altered to diminish or impair certain provisions as to insurance neutrality and protections for Non-Settling Insurers. Iowa City Regina High School has withdrawn its objection to the Diocese of Davenport's Disclosure Statement. 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 confirmation hearing of the Debtor's plan will start on April 30, 2008. (Catholic Church Bankruptcy News, Issue No. 121; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). CBRE REALTY: Retains Goldman Sachs; Posts $70.8MM Net Loss in 2007 ------------------------------------------------------------------ CBRE Realty Finance Inc. retained Goldman Sachs as its financial advisor to assist the company with its strategic and operational initiatives. The company's board of directors, together with its outside advisors, will be working to identify and evaluate a wide range of strategic and operational initiatives to enhance shareholder value. Fourth Quarter and Full Year 2007 Results The company reported net loss for the fourth quarter of $17.8 million on $38.6 million total revenues. Net loss from continuing operations for the fourth quarter was $13.7 million. The fourth quarter results include the impact of Rodgers Forge and Monterey assets that became classified as discontinued operations in the fourth quarter when the company committed to a plan to exit these investments. Net loss for the full year was $70.8 million on $141.0 million total revenues. Net loss from continuing operations for the full year was $11.3 million. The full year results include the impact of Rodgers Forge and Monterey assets that became classified as discontinued operations in the fourth quarter when the company committed to a plan to exit these investments. Kenneth J. Witkin, president and chief executive officer commented, "My top priority since joining the Company has been to increase the Company's focus on asset and risk management. Given this challenging environment, we are making regular assessments and prudent decisions with respect to the composition and quality of our portfolio. The board and management are committed to doing what is in the best interests of the company and our stockholders, and we are taking the appropriate actions to recognize and optimize the value of our assets. "At the same time, we continue to take the necessary steps to strengthen our financial condition and ensure the required liquidity to manage and grow our portfolio. With the reduction in our short-term debt and the sale of Rodgers Forge and the resolution of Monterey in progress, we will be able to focus on our core business and will be better positioned to navigate the turbulent conditions that currently exist in our marketplace," Mr. Witkin added. Operating Results Debt and CMBS investments generated investment income of $35.9 million and net investment income of $11.4 million for the fourth quarter. Net investment income represents investment income from the company's debt and CMBS investments, less interest expense on the company's borrowings related to these investments. Interest expense on borrowings related to the company's debt and CMBS investments was $24.5 million for the fourth quarter 2007 and reflects interest expense on $1.34 billion of investment grade notes issued by the company's two CDOs, borrowings under the secured warehouse repurchase facility and $50.0 million of trust preferred securities. At Dec. 31, 2007, the company's debt-to-book equity ratio was 7.3x compared to 5.6x in the previous quarter. Adjusting book equity for temporary mark-to-markets in the company's CMBS and derivative portfolio, the Company's debt-to-book equity ratio was 4.9x at December 31, 2007 compared to 4.7x in the previous quarter. The weighted average borrowing cost for the company's secured debt and long-term financing was 6.1 percent for the quarter ended Dec. 31, 2007 compared to 6.3 percent in the previous quarter. Loan Portfolio The company's loan portfolio is comprised solely of commercial real estate with no sub-prime exposure. At Dec. 31, 2007, the company's loan portfolio equaled $1.4 billion and consisted of 46.0% floating rate and 54.0% fixed rate loans, with a weighted average maturity of 3.1 years. The loan portfolio has a weighted average loan-to-value ratio of 70.3% compared to 70.0% in the previous quarter and is comprised of 64.7% first mortgages and 35.3 percent structured debt. The company's loan portfolio has loans scheduled to mature without extension options totaling $11.7 million in 2008 and $21.6 million in 2009. As of Dec. 31, 2007, the company had one $42.8 million B-note that was non-performing. This investment is presently unencumbered on the company's balance sheet. As of Dec. 31, 2007, the company also had one $40.0 million mezzanine loan and one $12.0 million whole loan on its watch list. Both watch list assets at Dec. 31, 2007 have been classified as non-performing bringing the company's total non-performing loans to $94.8 million, representing 4.6 percent of total assets. After extensive internal review, the company recorded a combined $19.7 million reserve on the non-performing loans. Of this reserve, $19.2 million is specifically attributable to the Company's $82.8 million Macklowe exposure. CMBS Portfolio At Dec. 31, 2007, the company's CMBS portfolio had a carrying value of $236.1 million. The average vintage of the underlying collateral is 33 months with 67.0% of the portfolio being investment grade. The underlying loan delinquency of the portfolio is 0.09% compared to the market average of 0.43%. The entire CMBS portfolio is term financed within the company's two CDOs. Joint Venture Investment Portfolio At Dec. 31, 2007, the company had $77.2 million invested in joint venture equity investments with a carrying value of $66.0 million. The company continues to explore opportunities to monetize or exit these investments. During the 2007 fourth quarter, the company's consolidated and unconsolidated investments in joint ventures contributed to AFFO $700,000, and $1.1 million for the full year 2007. Liquidity and Funding At Dec. 31, 2007, the company had approximately $25.9 million of cash and cash equivalents available and $137.0 million of restricted cash. The restricted cash is comprised primarily of $40.6 million of escrow reserve requirements related to tenant improvements and leasing reserves on a number of the company's first mortgage loans and $79.7 million of cash available in its two CDOs. In addition, within its second CDO, the company had available $49.0 million of revolving capacity specifically designated to fund future financing commitments on its existing loan portfolio. This undrawn capacity covers substantially all of the company's future commitments on its loan portfolio. Currently, the company has $21.5 million of cash and cash equivalents available. Loan and CMBS prepayments, sales, and amortization payments totaled $133.5 million during the fourth quarter 2007. About 95% of the company's loan and CMBS portfolio is match funded and term financed through its issuance of $1.34 billion of long- term CDO bonds. The weighted average financing costs of these facilities is approximately 44.4 basis points over the applicable LIBOR benchmarks with reinvestment periods remaining of greater than 3.0 years in its first CDO and 4.0 years in its second CDO. In the first quarter of 2008, all three major rating agencies affirmed all classes of notes issued by the company's $1.0 billion CDO which closed on April 2, 2007. At Dec. 31, 2007, the company had $144.2 million outstanding on its warehouse line. Since that time, the company has reduced the amount outstanding by approximately $108.1 million primarily through planned portfolio repayments and early borrower prepayments. Currently, there is $36.1 million of debt outstanding under the facility. The company's remaining $78.3 million of assets financed by this facility are currently 46.1% levered in aggregate. Dividends On Dec. 20, 2007, the company said that its Board of Directors declared a cash dividend of $0.21 per share of common stock, payable with respect to the quarter ended Dec. 31, 2007. The dividend was paid on Jan. 15, 2008, to stockholders of record as of Dec. 31, 2007. The company paid cash dividends totaling $0.80 per share for the full year 2007. As of Dec. 31, 2007, the company listed total assets of $2.0 billion, total liabilities of $1.8 billion, and total stockholders' equity of $212.8 million. A full-text copy of the company's fourth quarter and full year 2007 report is available for free at http://ResearchArchives.com/t/s?29ff About CBRE Realty Finance CBRE Realty Finance Inc. -- http://www.cbrerealtyfinance.com/-- was established in May 2005 and is a commercial real estate specialty finance company primarily focused on originating, acquiring, investing in, financing and managing a diversified portfolio of commercial real estate-related loans and securities. CBRE Realty Finance has elected to qualify to be taxed as a real estate investment trust, or REIT, for federal income tax purposes. CBRE Realty Finance is externally managed and advised by CBRE Realty Finance Management, LLC, an indirect subsidiary of CB Richard Ellis Group, Inc. and a direct subsidiary of CBRE Melody & Company. * * * As reported in the Troubled Company Reporter on March 27, 2008, Standard & Poor's Ratings Services affirmed its ratings on one commercial real estate (CRE) collateralized debt obligation (CDO) transaction with direct exposure to approximately $7 billion of financing to Macklowe Properties that matured on Feb. 9, 2008, and has not paid off. The affirmations affect 11 classes from CBRE Realty Finance CDO 2006-1 Ltd. CENTRAL OIL: Creditors Have Until May 30 to File Proofs of Claim ---------------------------------------------------------------- Creditors holding claims against Central Oil Asphalt Corporation have until May 30, 2008, at 5:00 p.m., Eastern Time, to file proofs of claim in the Debtor's estate. All claims must be delivered to: Central Oil Asphalt Corporation c/o David S. Jackson, Esq. Carlile, Patchen & Murphy 366 East Broad Street Columbus, Ohio 43215 Central Asphalt is presently winding down its affairs, paying all amounts owed, and determining the amount available for distribution to its stockholders. Furthermore, Central Asphalt has filed a certificate of dissolution in the office of the Delaware Secretary of State which took effect on June 6, 2007. Headquartered in Columbus, Ohio, Central Oil Asphalt Corporation manufactures asphalt road building materials, manhole frames and emulsion asphalt. CENTERSTAGING MUSICAL: Asks Permission to Hire Biggs as Accountant ------------------------------------------------------------------ CenterStaging Musical Productions, Inc. asked permission from the U.S. Bankruptcy Court for the Central District of California to employ Biggs & Co. as accountant. The Debtor said it requires the services of certified public accountants experienced in bankruptcy to prepare and file federal and state tax returns, prepare bankruptcy estate accounting incident, among other functions. Biggs & Co. attests that it does not represent or hold any interest adverse to the Debtor or its estates, and that the firm is a "disinterested person" as such term is defined in Section 101(14) of the bankruptcy code. It is contemplated that Biggs will seek compensation based upon its normal usual hourly billing rates. Rate Schedule Samuel R. Biggs, Partner Regular Work $350.00 Depositions and Court Testimony $400 Charles E. Kunz, Partner Regular Work $275.00 Depositions and Court Testimony $400 John E. Sullivan, Partner Regular Work $275.00 Depositions and Court Testimony $365 Samuel Okstad, Partner $250 Erin Rose, Manager $175 Lisa Nuzzi, Manager $175 Manager/Supervisor Accountants $150.00-225.00 Senior and Junior Accountants $95-150.00 Paraprofessionals $50-100.00 There has been no written or oral agreement of employment and/or compensation between Biggs and Debtor. However, Biggs received a pre-petition retainer of $10,000 of which $1,295 was applied toward fees earned in assisting the Debtor with its bankruptcy filing. The $8,705 balance of unearned fess will be held in Biggs' client trust account as a security deposit toward fees approved and allowed to be paid subject to approval of the court. Headquartered in Burbank, California, CenterStaging Musical Productions, Inc. -- http://www.centerstaging.com/-- is a rehearsal and production services company that provides production support for most of the live television award shows like the Academy Awards and the Grammy Awards. The company also is a production-support provider for TV shows such as "The Late Show With David Letterman," "The Tonight Show With Jay Leno" and "Late Night With Conan O'Brien." The company filed for Chapter 11 protection on March 10, 2008 (Bankr. C.D. Calif. Case No. 08- 13019). Lewis R. Landau, Esq., in Calabasas, California, represents the Debtor. CENTRE SQUARE: Poor Credit Quality Cues Moody's to Junk Ratings --------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible downgrade the ratings on these notes issued by Centre Square CDO, Ltd.: Class Description: $150,000,000 Class A-1 First Priority Senior Secured Floating Rate Delayed Draw Notes due 2051 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Ba2, on review for possible downgrade Class Description: $97,500,000 Class A-2A Second Priority Senior Secured Floating Rate Notes due 2051 -- Prior Rating: A3, on review for possible downgrade -- Current Rating: B3, on review for possible downgrade Class Description: $97,500,000 Class A-2B Second Priority Senior Secured Floating Rate Notes due 2051 -- Prior Rating: A3, on review for possible downgrade -- Current Rating: B3, on review for possible downgrade Class Description: $25,000,000 Class A-3 Third Priority Senior Secured Floating Rate Notes due 2051 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Caa2, on review for possible downgrade Additionally, Moody's downgraded these notes: Class Description: $50,000,000 Class B Fourth Priority Senior Secured Floating Rate Notes due 2051 -- Prior Rating: Ba1, on review for possible downgrade -- Current Rating: Ca Class Description: $22,000,000 Class C Fifth Priority Senior Secured Floating Rate Notes due 2051 -- Prior Rating: B1, on review for possible downgrade -- Current Rating: Ca Class Description: $20,000,000 Class D Sixth Priority Senior Secured Floating Rate Deferrable Interest Notes due 2051 -- Prior Rating: Caa1, on review for possible downgrade -- Current Rating: C Class Description: $30,000,000 Class E Seventh Priority Senior Secured Floating Rate Deferrable Interest Notes due 2051 -- Prior Rating: Ca -- Current Rating: C According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. CHARLES RIVER: Moody's Junks Ratings on $15 Mil. Notes From 'Baa3' ------------------------------------------------------------------ Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Charles River CDO I, Ltd. Class Description: $3,000,000 Class B-F Fixed Rate Notes Due Dec. 9, 2037 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ba1, on review for possible downgrade Class Description: $18,000,000 Class B-V Floating Rate Notes Due Dec. 9, 2037 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ba1, on review for possible downgrade Additionally, Moody's downgraded these notes: Class Description: $4,800,000 Class C Fixed Rate Notes Due Dec. 9, 2037 -- Prior Rating: Caa2, on review for possible downgrade -- Current Rating: Ca Class Description: $15,000,000 Combination Securities Due Dec. 9, 2037 -- Prior Rating: Baa3, 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. CHEROKEE INTERNATIONAL: Repays in Full $1MM Working Capital Credit ------------------------------------------------------------------ Cherokee International Corporation repaid, in full, the $1.3 million it borrowed against a working capital line of credit. In January 2007, Cherokee China entered into a loan contract with Industrial and Commercial Bank of China Ltd. for a working capital line of credit. The line of credit is collateralized by the company's building in Shanghai, China. During the second quarter of 2007, Cherokee China drew $1.3 million on their $3.4 million line of credit. The $1.3 million has been paid in cash from Cherokee China's operations and is in compliance with all covenants. "Our China facility continues to increase production levels and this has contributed to improved margins for the company," said Linster W. Fox, Cherokee's EVP, CFO and secretary. "While we remain focused on improving liquidity and reducing debt, we expect China to be a catalyst for a strong 2008 for Cherokee.' Based in Tustin, California, Cherokee International Corp. (NASDAQ:CHRK) -- http://www.cherokeellc.com/-- is a designer and manufacturer of a range of switch mode power supplies for original equipment manufacturers in the telecommunications, networking, high-end workstations and other electronic equipment industries. The company has offices and manufacturing plants in Tustin and Irvine, California, Wavre, Belgium, Bombay, India, Guadalajara, Mexico, and Penang, Malaysia. Going Concern Doubt Mayer Hoffman McCann P.C. in Orange County, California, expressed substantial doubt about the company's ability to continue as a going concern after auditing the consolidated financial statements of Cherokee International Corporation and subsidiaries as of Dec. 30, 2007 and Dec. 31, 2006. The company's management anticipates that there will be insufficient cash balances available to repay the outstanding debt at its maturity. CHERRY CREEK: Moody's Downgrades Ratings on Five Classes of Notes ----------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Cherry Creek CDO I, Ltd. Class Description: $195,000,000 Class A1S Senior Floating Rate Notes Due May 2046 -- Prior Rating: Aaa -- Current Rating: Aa3, Review for Possible Downgrade Class Description: $34,000,000 Class A1J Senior Floating Rate Notes Due May 2046 -- Prior Rating: Aaa -- Current Rating: A1, Review for Possible Downgrade Class Description: $25,000,000 Class A2 Senior Floating Rate Notes Due May 2046 -- Prior Rating: Aa2, Possible Downgrade -- Current Rating: A3, Review for Possible Downgrade Class Description: $16,000,000 Class A3 Deferrable Floating Rate Notes Due May 2046 -- Prior Rating: A2, Possible Downgrade -- Current Rating: Ba1, Review for Possible Downgrade Class Description: $16,000,000 Class B Deferrable Floating Rate Notes Due May 2046 -- Prior Rating: B2, Possible Downgrade -- Current Rating: Caa2, Review for Possible Downgrade According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. CHIQUITA BRANDS: Completes Refinancing with $350MM Credit Facility ------------------------------------------------------------------ Chiquita Brands International Inc. and Chiquita Brands LLC entered into a new $350 million senior secured credit agreement with various lenders. This agreement completed the company's refinancing plan, which has lowered the company's interest expense, extended debt maturities and added significant covenant flexibility that will allow management to focus further on executing its profitable growth strategy. The lenders include Cooperatieve Centrale Raiffeisen - Boerenleenbank B.A., "Rabobank Nederland," New York Branch acting as administrative agent and lead arranger and with Wells Fargo Bank, National Association as the syndication agent. The new credit facility is comprised of a six-year $200 million senior secured term loan facility and a six-year $150 million senior secured revolving credit facility. The revolving credit facility may be increased to $200 million under certain conditions. The new credit facility replaced CBL's prior revolving credit facility and term loan. The new $200 million term loan matures on March 31, 2014. The term loan bears interest, at CBL's option, at a rate per annum equal to either: (i) the "Base Rate" which is the higher of: (a) the Rabobank prime rate, and (b) the Federal Funds Effective Rate plus 0.5% plus 3.25% for the first six months and between 2.75% and 3.50%, based on the company's consolidated adjusted leverage ratio, thereafter; or (ii) the LIBOR Rate plus 4.25% for the first six months and between 3.75% and 4.50%, based on the company's consolidated adjusted leverage ratio, thereafter. The current interest rate for the term loan is 7%. The term loan requires quarterly payments, amounting to 5% per year of the initial principal amount for the first two years and 10% per year of the initial principal amount for years three to six, with the remaining balance to be paid on the maturity date of the term loan facility. CBL borrowed the full $200 million term loan on the closing date. Borrowings under the term loan were used to repay the full amounts due under CBL's prior revolving credit facility and term loan, which together totaled $179 million and to pay related fees and expenses; CBL retained approximately $14 million of net proceeds from the term loan. The revolving credit facility matures on March 31, 2014. The revolving credit facility bears interes