/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/080408.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, April 8, 2008, Vol. 12, No. 83 Headlines ABACUS 2006-11: Seven Note Classes Get Moody's Rating Downgrades ABACUS 2006-14: Four Classes of Notes Get Moody's Junk Ratings ABACUS 2006-15: Moody's Cuts Rating on $36 Mil. Notes From 'Aa1' ABACUS 2007-AC1: Moody's Junks Ratings on Two Classes of Notes AEOLUS PHARMA: To Take $49,000 Impairment Chg. in March 31 Quarter AEOLUS PHARMA: Inks $230,000 Credit Agreement with UBS Financial ALOHA AIRLINES: ALPA Helps Find Buyers for Operations ALOHA AIRLINES: ALPA Offers to Help Transport Stranded Passengers AMDL INC: Inks Sublicense Agreement for the MyGene HPV Chip Kit ANALYTICAL SURVEYS: Jewett Schwartz Replaces Malone and Bailey ANF DEER CREEK: Files Schedules of Assets and Liabilities ARCLIN CANADA: S&P Changes Outlook to Negative; Holds 'B' Rating BEAR STEARNS: Moody's Slashes Ratings on 57 Certs. to Junk Status BLOCKBUSTER INC: Earns $38 Million in 4th Quarter ended January 6 CAIN MEZZ: Eroding Credit Quality Cues Moody's Four Junk Ratings CAMBER 7: Moody's Junks Rating on $81 Mil. 2042 Notes From 'A3' CAPITAL TRUST: S&P Cuts Ratings on 2005A and 2005A-T Bonds to 'BB' CENTRO NP: Sells Certain Interests to NP Residential and Super LLC CETUS ABS: Moody's Cuts Ratings on $100MM Notes to 'Ba2' From Aaa CHIQUITA INTERNATIONAL: Inks New $350 Million Credit Facility CHIQUITA BRANDS: Morten Arntzewn Resigns as Board Director CITIMORTGAGE ALTERNATIVE: Moody's Cuts Ratings on Delinquencies CITIUS I: Moody's Junks Ratings on $45 Million Notes From 'Aa2' COLLEZIONE EUROPA: Obtains Court Ok to Hire Stump Corp. as Realtor COMM 2007-FL14: S&P Keeps 'BB+' Rating on Two Classes of Certs. COOKSON 2007: Moody's Junks Rating on $150 Mil. Notes From 'Baa3' CREDIT SUISSE: S&P Downgrades Ratings on Four Classes of Certs. CYGNUS BUSINESS: S&P Changes Outlook to Stable; Holds CCC+ Rating DOV PHARMA: Board Dismisses PwC as Independent Auditors EAU TECHNOLOGIES: Deficits Prompt Going Concern Opinion ECO 2007-1: Four Classes of Notes Acquire Moody's Junk Ratings EIRLES TWO: Eroding Credit Quality Cues Moody's Rating Downgrades ENERGAS RESOURCES: Losses Prompt Going Concern Opinion ENERGY PARTNERS: Closes Sale of Two Shelf Properties for $16.2MM ENHERENT CORP: December 31 Balance Sheet Upside-Down by $245,000 EROOMSYSTEM TECHNOLOGIES: Management Raises Substantial Doubt FIRST FRANKLIN: Moody's Cuts 46 Tranches' Ratings From Seven Deals FOAMEX INT'L: December 30 Balance Sheet Upside-Down by $298MM FOCUS ENHANCEMENTS: Burr Pilger Raises Substantial Doubt FORT SHERIDAN: Three Classes of Notes Get Moody's Low-B Ratings GENER8XION ENTERTAINMENT: Executive Officers Agree to 50% Pay Cut GMAC LLC: Moody's Comments on $1.2BB Capital Injection to ResCap GSAMP TRUST: Moody's Downgrades Ratings on Four Classes of Certs. GSV INC: Recurring Losses Prompt UHY LLP's Going Concern Doubt HILLCREST CDO: Poor Credit Quality Spurs Moody's Rating Reviews INDYMAC HOME: Moody's Junks Ratings on Six Classes of Certificates INTREPID TECH: Inks Securities Purchase Agreement with YA Global LAKESIDE CDO I: Moody's Reviews 'Ba1' Notes Rating for Likely Cut LAKESIDE CDO II: Moody's Cuts Ratings on $15 Mil. Notes to 'Ba3' LOUISIANA RIVERBOAT: Files List of 30 Largest Unsecured Creditors LUMINENT MORTGAGE: Grant Thorton Raises Substantial Doubt MAAX HOLDINGS: Moody's Withdraws Junk Ratings for Business Reasons MERISANT COMPANY: Moody's Withdraws 'B3' Ratings on Proposed Loan MERRILL LYNCH: 52 Tranches Acquire Moody's Rating Downgrades MICROFIELD GROUP: Liquidity Concerns Prompt Substantial Doubt MILLSTONE II: Moody's Reviews Note Ratings for Likely Downgrades MONTEREY CDO: Moody's Reviews Ratings on Eight Classes of Notes MOVIE GALLERY: Voting Results Show Overwhelming Support for Plan NEOMEDIA TECHNOLOGIES: Kingery & Crouse Raises Substantial Doubt NIEUW HAARLEM: Moody's Cuts Ratings on $128.325 Mil. Notes to Ba1 NORCROSS SAFETY: $1.2BB Honeywell Deal Spurs S&P's Positive Watch PEACE ARCH: Posts CDN$1.1 Million Net Loss in Qtr. Ended Nov. 30 PHH MORTGAGE: S&P Keeps Low-B Ratings on Two Classes of Certs. POINT PLEASANT: Moody's Cuts $254.93 Mil. Notes From Aaa to 'Ba1' PORT JACKSON: Moody's Junks Rating on $60 Mil. Notes From 'Ba1' PROTECTIVE FINANCE: Moody's Attaches Low-B Ratings on Six Classes RALI TRUSTS: Moody's Cuts Ratings on 119 Tranches From 22 Deals RESIDENTIAL CAPITAL: Moody's Ratings Unmoved by Capital Injection REVLON INC: Net Loss Slides to $16MM in Year ended December 31 RIVER RIM: Voluntary Chapter 11 Case Summary ROADRUNNER RIVER: Files List of 12 Largest Unsecured Creditors SEARCHHELP INC: Sept. 30 Balance Sheet Upside-Down by $1,710,469 SHEFFIELD CDO: Poor Credit Quality Cues Moody's Rating Downgrades SIMMONS COMPANY: S&P Changes Outlook to Negative; Keeps 'B' Rating SIMON WORLDWIDE: BDO Seidman Raises Substantial Doubt SONIC CORP: Gabriel Tsampalieros Named to Board of Directors SOUNDVIEW HOME: Six Classes of Certs. Get Moody's Junk Ratings SR TELECOM: Reports $132.4 Million Net Loss in Year Ended Dec. 31 SR TELECOM: Closes $6 Million Sale of Asset to Group Legasse STURGIS IRON: Case Summary & 20 Largest Unsecured Creditors TAYLOR CAPITAL: Terminates Employment of Mark Garrigus with Bank TELTRONICS INC: Dec. 31 Balance Sheet Upside-Down by $4.5 Million TERWIN MORTGAGE: Moody's Downgrades Ratings on 37 Cert. Classes THOMPSON PRODUCTS: Gets Authority to Employ DLA Piper as Counsel THOMPSON PRODUCTS: Obtains Permission to Employ Albert Mink as CRO THORNBURG MORTGAGE: S&P Junks Rating on ABCP Notes From 'A-1+' VERMILLION INC: December 31 Balance Sheet Upside-Down by $11MM WELWIND ENERGY: Posts CDN$752,399 Net Loss in Qtr. Ended Sept. 30 ********* ABACUS 2006-11: Seven Note Classes Get Moody's Rating Downgrades ---------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Abacus 2006-11, Ltd.: Class Description: $82,500,000 Class A-1 Variable Rate Notes Due 2045 -- Prior Rating: Aaa -- Current Rating: Aa3, on review for possible downgrade Class Description: $20,000,500 Class A-2 Series 1 Variable Rate Notes Due 2045 -- Prior Rating: Aa1, on review for possible downgrade -- Current Rating: A3, on review for possible downgrade Class Description: $25,937,500 Class A-2 Series 2Variable Rate Notes Due 2045 -- Prior Rating: Aa1, on review for possible downgrade -- Current Rating: A3, on review for possible downgrade Class Description: $19,375,000 Class B Variable Rate Notes Due 2045 -- Prior Rating: Aa3, on review for possible downgrade -- Current Rating: Baa3, on review for possible downgrade Class Description: $12,500,000 Class B Series 2 Variable Rate Notes Due 2045 -- Prior Rating: Aa3, on review for possible downgrade -- Current Rating: Baa3, on review for possible downgrade Class Description: $18,750,000 Class C Variable Rate Notes Due 2045 -- Prior Rating: A2, on review for possible downgrade -- Current Rating: Ba1, on review for possible downgrade Class Description: $10,000,000 Class D Variable Rate Notes Due 2045 -- 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. ABACUS 2006-14: Four Classes of Notes Get Moody's Junk Ratings -------------------------------------------------------------- Moody's Investors Service downgraded the ratings on these notes issued by ABACUS 2006-14, Ltd. Class Description: $20,000,000 Class A-2 Variable Rate Notes, Due 2045 -- Prior Rating: Ba3, on review for possible downgrade -- Current Rating: Ca Class Description: $10,000,000 Class A-2 Series 2 Variable Rate Notes, Due 2045 -- Prior Rating: Ba3, on review for possible downgrade -- Current Rating: Ca Class Description: $36,684,375 Class B Variable Rate Notes, Due 2045 -- Prior Rating: Caa3, on review for possible downgrade -- Current Rating: Ca Class Description: $20,000,000 Class C Variable Rate Notes, Due 2045 -- Prior Rating: Caa3, on review for possible downgrade -- Current Rating: Ca According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. ABACUS 2006-15: Moody's Cuts Rating on $36 Mil. Notes From 'Aa1' ---------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by ABACUS 2006-15, Ltd.: Class Description: $70,000,000 Class A-2 Variable Rate Notes, Due 2045 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Baa3, on review for possible downgrade Class Description: $36,000,000 Class A-3 Variable Rate Notes, Due 2045 -- Prior Rating: Aa1, on review for possible downgrade -- Current Rating: Ba2, on review for possible downgrade Class Description: $37,500,000 Class B Series 1 Variable Rate Notes, Due 2045 -- Prior Rating: Aa3, on review for possible downgrade -- Current Rating: B2, on review for possible downgrade Class Description: $6,000,000 Class B Series 2 Variable Rate Notes, Due 2037 -- Prior Rating: Aa3, on review for possible downgrade -- Current Rating: B2, on review for possible downgrade Class Description: $41,150,000 Class C Series 1 Variable Rate Notes, Due 2045 -- Prior Rating: Ba2, on review for possible downgrade -- Current Rating: Caa1, on review for possible downgrade Class Description: $2,850,000 Class C Series 2 Variable Rate Notes, Due 2037 -- Prior Rating: Ba2, on review for possible downgrade -- Current Rating: Caa1, on review for possible downgrade Class Description: $14,650,000 Class D Series 1 Variable Rate Notes, Due 2045 -- Prior Rating: B1, on review for possible downgrade -- Current Rating: Caa2, on review for possible downgrade Class Description: $2,850,000 Class D Series 2 Variable Rate Notes, Due 2037 -- Prior Rating: B1, on review for possible downgrade -- Current Rating: Caa2, on review for possible downgrade According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. ABACUS 2007-AC1: Moody's Junks Ratings on Two Classes of Notes -------------------------------------------------------------- Moody's Investors Service downgraded the ratings on these notes issued by ABACUS 2007-AC1, Ltd.: Class Description: $50,000,000 Class A-1 Variable Rate Notes, Due 2038 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ca Class Description: $142,000,000 Class A-2 Variable Rate Notes, Due 2038 -- 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. AEOLUS PHARMA: To Take $49,000 Impairment Chg. in March 31 Quarter --------------------------------------------------------------- Aeolus Pharmaceuticals Inc. disclosed Thursday that it expects to take an impairment charge of $49,000 on its auction-rate securities during the quarter ended March 31, 2008, based upon reduced market values as determined based upon investments statements as of March 31, 2008, received from UBS Financial Services Inc. The company has auction-rate securities with a par value of $525,000 included in its investment portfolio. The auction-rate securities are AAA rated, long-term debt obligations secured by student loans, which loans are generally guaranteed by the U.S. Government under the Federal Family Education Loan Program. In addition to the U.S. Government guarantee on such student loans, many of the securities also have separate insurance policies guaranteeing both the principal and accrued interest. The company said that in the past, the auction process has generally allowed investors to obtain immediate liquidity if so desired by selling the securities at their face amounts. However, the current disruptions in the credit markets have adversely affected the auction market for these types of securities. From Feb. 26, 2008, to March 31, 2008, all auctions scheduled with respect to the company's auction-rate securities failed to close. The company said, however, that the auction-rate securities continue to pay interest and there has been no change in the rating of these securities to date. The final maturity dates of the auction-rate securities which the company owns is between 2029 and 2038. Taking into account this other-than-temporary impairment charge, the company's auction-rate securities had an estimated fair value of approximately $476,000 as of March 31, 2008. The company said that it will continue to monitor and evaluate the market for these securities to determine if further impairment of the carrying value of the securities has occurred due to the loss of liquidity or for other reasons. The company also disclosed that if current conditions in the auction-rate securities market continue into the fourth quarter of fiscal 2008 or other unanticipated events occur prior to such time, its financial condition and operations could be impacted unless it can obtain other sources of capital at favorable terms to the company. The company further disclosed that it has filed a complaint regarding its investments in auction-rate securities with UBS Financial Services Inc. and is considering further actions against UBS Financial Services, including but not limited to a mediation or arbitration filing with the Financial Industry Regulatory Authority, the governing body over financial institutions, or other legal remedies. About Aeolus Pharmaceuticals Aeolus Pharmaceuticals Inc. (OTC BB: AOLS.OB) -- http://www.aeoluspharma.com/-- is developing a variety of therapeutic agents based on its proprietary small molecule catalytic antioxidants, with AEOL 10150 being the first to enter human clinical evaluation. At Dec. 31, 2007, the company's consolidated balance sheet showed $1,293,000 in total assets, $606,000 in total liabilities, and $687,000 in total stockholders' equity. Going Concern Disclaimer Haskell & White LLP, in Irvine, Calif., expressed substantial doubt about Aeolus Pharmaceuticals Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Sept. 30, 2007, and 2006. The auditing firm reported that the company has suffered recurring losses, negative cash flows from operations and does not currently possess sufficient working capital to fund its operations throughout the next fiscal year. AEOLUS PHARMA: Inks $230,000 Credit Agreement with UBS Financial ---------------------------------------------------------------- On March 27, 2008, Aeolus Pharmaceuticals, Inc. entered into a secured credit agreement in the amount of up to $230,000 with UBS Financial Services Inc. On March 28, 2008, the company received $230,000 under the credit agreement. The credit agreement bears interest at the per annum rate of LIBOR plus 0.25 percent. Availability of the line of credit is subject to the company's compliance with certain financial and other covenants. Borrowings under the credit agreement are secured by the company's investments held by UBS Financial Services Inc. The proceeds of the credit agreement will be used to provide working capital for the company and its subsidiaries. About Aeolus Pharmaceuticals Aeolus Pharmaceuticals, Inc. (OTC BB: AOLS.OB) -- http://www.aeoluspharma.com/-- is developing a variety of therapeutic agents based on its proprietary small molecule catalytic antioxidants, with AEOL 10150 being the first to enter human clinical evaluation. At Dec. 31, 2007, the company's consolidated balance sheet showed $1,293,000 in total assets, $606,000 in total liabilities, and $687,000 in total stockholders' equity. Going Concern Disclaimer Haskell & White LLP, in Irvine, Calif., expressed substantial doubt about Aeolus Pharmaceuticals Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Sept. 30, 2007, and 2006. The auditing firm reported that the company has suffered recurring losses, negative cash flows from operations and does not currently possess sufficient working capital to fund its operations throughout the next fiscal year. ALOHA AIRLINES: ALPA Helps Find Buyers for Operations ----------------------------------------------------- The Aloha Pilots Master Executive Council of the Air Line Pilots Association International continued its efforts to help find buyers for Aloha Airline Inc.'s operations and support Hawaii's transportation and cargo needs by making a new proposal to assist with continuing operations. At the airline's request, ALPA offered more expeditious and flexible procedures for retraining pilots for the smaller cargo operation in accordance with their seniority rights. In addition, the pilots offered to substantially reduce the amount of furlough pay to which they're entitled under their collective bargaining agreement. In return, the pilots sought the company's and investor's help in continuing medical coverage for 30 days and reduced rate travel to enable the search for new jobs in a tightening market for pilots. Very few pilot jobs are available in Hawaii and Aloha has more than 300 pilots, most reside on the islands. Aloha Airlines management announced last weekend that it would cease all passenger operations on March 31, just 10 days after filing for Chapter 11 reorganization, the airline's second bankruptcy in 3 years. While the announcement may spell the end of 61 years of operations for Aloha Airlines, it hasn't deterred Aloha pilots, through their union leaders, from exploring every avenue to assist the company. "While the picture is grim, we're not going to stop trying to help the islands and our company," said David Bird, Aloha MEC Chairman. "We will never give up the Aloha spirit," continued Bird. "The Aloha pilots have always displayed the highest sense of loyalty and support for their company and our union. ALPA will not only defend their contract rights vigorously and represent them in bankruptcy court, we will give everything we can to help them move forward with their lives and careers," said Captain John Prater, ALPA President. The airline's announcement came as a surprise because management recently continued to explore strategic options including looking for larger aircraft and expanding operations to Asia. Over the past few months, Aloha pilots executed a series of Letters of Agreement in response to management's plans. Aloha filed first for bankruptcy in 2004, and pilots made concessions to help improve the airline's financial position and attract new investors. The Aloha pilots agreed to a 20 percent pay cut, productivity enhancements, and massive pension and benefit reductions. ALO pilots gave more than $12 million worth of concessions to the airline to support its previous restructuring efforts to ensure Aloha became profitable and a stable airline. About ALPA The Air Line Pilots Association International -- http://www.alpa.org/ -- represents 61,000 airline pilots who fly for 43 airlines in the United States and Canada. About Aloha Airlines Based in Honolulu, Hawaii, Aloha Airgroup Inc., Aloha Airlines Inc. -- http://www.alohaairlines.com/-- and its affiliates are carriers that fly passengers and freight to Hawaii's five major airports, as well as to half a dozen destinations in the western U.S. They operate a fleet of about 20 aircraft, all Boeing 737s, including three configured as freighters. This is the airline's second bankruptcy filing. Aloha filed for Chapter 11 protection on Dec. 30, 2004 (Bankr. D. Hawaii Case No. 04-03063), and emerged from Chapter 11 bankruptcy protection in February 2006. The company and its affiliates filed again for Chapter 11 protection on March 18, 2008 (Bankr. D. Hawaii Lead Case No. 08- 00337). Brian G. Rich, Esq., Jordi Guso, Esq., and Paul Steven Singerman, Esq., at Berger Singerman P.A., and David C. Farmer, Esq., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of $100 million to $500 million. ALOHA AIRLINES: ALPA Offers to Help Transport Stranded Passengers ----------------------------------------------------------------- Pilots of Aloha Airlines Inc. made new offers to transport stranded Mainland bound and Merrie Monarch passengers and reiterated their standing offers to help Aloha Airlines continue its cargo operation until a buyer can be found and approved. The Aloha Pilots Master Executive Council of the Air Line Pilots Association International said they were willing to come to the airport immediately to fly inter-island or mainland charter trips with the idle Aloha airplanes sitting on the ramp at Honolulu International Airport. The Union voiced concern that their offers are being frustrated by the actions of company senior management. "We are going to keep trying to help our community and our company during this difficult shut-down process," said David Bird, Aloha MEC Chairman, "It is ridiculous that there are stranded passengers in Hilo trying to get home from the Merrie Monarch Festival while idle aircraft sit empty on the ramp with pilots available and willing to fly." Yesterday ALPA offered a more expeditious and flexible method enabling the immediate re-training of pilots for the smaller cargo operation in accordance with their seniority rights. In addition, the pilots offered to substantially reduce the amount of furlough pay that pilots are entitled to under their collective bargaining agreement. In return, the pilots asked the company to honor its contract and continue medical coverage for 30 days and travel privileges to enable them to search for new jobs in a tightening market for pilots. Management has responded negatively to the pilots contract offer from yesterday and used inflated cost figures to dismiss the pilots' assistance offer. Instead, management has taken steps to frustrate that offer. Management has sent pilots termination letters, requested the return of their security and ID badges making it impossible to clear security at the airport and shut off access to company computers that would make it possible to bid schedules for the continuing cargo operations. Aloha pilots call on company management, interim lenders, the Yucaipa Companies and the State of Hawaii to facilitate these pilot assistance offers and to make funds available. Aloha pilots are willing to have the State or the U.S. Bankruptcy Court for the District of Hawaii facilitate discussions between pilots, the company and prospective buyers to help solve the transportation crisis as soon as those talks can be arranged. Yesterday, the Hawaii Tourism Authority gave tourism leaders approval to spend up to $5 million in emergency funds to underwrite additional airline service for passengers who have been unable to secure alternative flights following the shutdown of ATA and Aloha Airlines' operations. "The Aloha pilots have always displayed the highest sense of loyalty and support for their company and the State of Hawaii. ALPA will not only defend their contract rights vigorously and represent them in bankruptcy court, we will give everything we can to help them move forward with their lives and careers," said Captain John Prater, president of ALPA. Aloha Airlines management announced last weekend that it would cease all passenger operations on March 31, just 10 days after filing for Chapter 11 reorganization, the airline's second bankruptcy in three years. While the announcement may spell the end of 61 years of operations for Aloha Airlines and a long, rich history with ALPA, that hasn't deterred Aloha pilots, through the MEC from exploring every avenue to assist the company. Aloha pilots joined the union as pilots of Trans Pacific Airways in 1949 -- the airline changed its name to Aloha in 1959. More than 300 pilots are employed by Aloha. The airline's management blamed high fuel costs and predatory pricing practices by its competitor, namely Mesa Air Group's go!, as the reasons for its demise. The airline's announcement comes as a surprise because management recently continued to explore strategic options including looking for larger aircraft and expanding operations to Asia. Over the past few months, Aloha pilots executed a series of Letters of Agreement in response to management's plans. About ALPA The Air Line Pilots Association International -- http://www.alpa.org/ -- represents 61,000 airline pilots who fly for 43 airlines in the United States and Canada. About Aloha Airlines Based in Honolulu, Hawaii, Aloha Airgroup Inc., Aloha Airlines Inc. -- http://www.alohaairlines.com/-- and its affiliates are carriers that fly passengers and freight to Hawaii's five major airports, as well as to half a dozen destinations in the western U.S. They operate a fleet of about 20 aircraft, all Boeing 737s, including three configured as freighters. This is the airline's second bankruptcy filing. Aloha filed for Chapter 11 protection on Dec. 30, 2004 (Bankr. D. Hawaii Case No. 04-03063), and emerged from Chapter 11 bankruptcy protection in February 2006. The company and its affiliates filed again for Chapter 11 protection on March 18, 2008 (Bankr. D. Hawaii Lead Case No. 08- 00337). Brian G. Rich, Esq., Jordi Guso, Esq., and Paul Steven Singerman, Esq., at Berger Singerman P.A., and David C. Farmer, Esq., represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed estimated assets and debts of $100 million to $500 million. AMDL INC: Inks Sublicense Agreement for the MyGene HPV Chip Kit --------------------------------------------------------------- AMDL Inc. disclosed Thursday that it has entered into an exclusive sublicense agreement with MyGene International Inc. for the MyGene HPV Chip Kit, a diagnostic product for in-vitro genotype testing in women of the Human Papilloma Virus (HPV). The agreement between MGI and AMDL is an exclusive sublicense to use the patents, trademark, and technology in manufacturing, promoting, marketing, distributing, and selling the MyGene HPV Test Kit in the countries of China (including Hong Kong), Taiwan, Singapore, Malaysia, Thailand, Cambodia, and Vietnam. MGI owns an exclusive worldwide license for the MyGene HPV Test Kit, excluding Korea. AMDL Inc. says that HPV is the most common sexually transmitted infection and that globally there are approximately 330 million women presently infected with HPV, with 70% of existing infections in Asian populations. The company said that it is well known that certain HPV types are the primary cause of cervical cancer. The company also said that according to recent clinical trial assessments, quoting Medical News Today, the global market for HPV testing is projected to be $250 million in 2008, with the total available market valued at $1 billion. Mr. Gary Dreher, chief executive officer of AMDL, noted that "this HPV Diagnostic Test Kit is anticipated to become a major product for the company. This sublicense agreement demonstrates AMDL's capability to in-license state of the art diagnostic products that can gain swift regulatory approval and market acceptance." Dr. Tyler McCabe, president and chief executive officer of MGI indicated, "In China alone, with skillful effort, substantial sales potential could be realized within a few years. MGI is excited about the potential of this relationship, due to AMDL's infrastructure in China and certain Asian countries, and we look forward to working together to enter this large market." MGI is a Utah corporation. MGI licensed the MyGene HPV Test Kit from MyGene Co. Ltd., a Korean company. About AMDL Inc. Based in Tustin, California, AMDL Inc. (AMEX: ADL) -- http://www.amdl.com/-- with operations in Shenzhen, Jiangxi, and Jilin, China, is a vertically integrated specialty pharmaceutical company. In combination with its subsidiary Jade Pharmaceutical Inc., AMDL engages in the research, development, manufacture, and marketing of diagnostic products. At Dec. 31, 2007, the company's consolidated balance sheet showed $32,867,178 in total assets, $7,145,665 in total liabilities, and $25,721,513 in total stockholders' equity. The company reported a net loss of $2,351,74 on net revenues of $15,009,100 for the year ended Dec. 31, 2007, compared with a net loss of $5,867,428 on net revenues of $2,103,936 for 2006. Going Concern Disclaimer KMJ Corbin & Company LLP, in Irvine, Calif., expressed substantial doubt about AMDL Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2007, and 2006. The auditing firm said that the company has incurred significant operating losses and negative cash flows from operations through Dec. 31, 2007, and has an accumulated deficit at Dec. 31, 2007. ANALYTICAL SURVEYS: Jewett Schwartz Replaces Malone and Bailey -------------------------------------------------------------- On April 2, 2008, Analytical Surveys engaged Jewett, Schwartz, Wolfe & Associates as its new independent registered public accounting firm. On the same day, the company notified Malone and Bailey PC of its intention to engage Jewett, Schwartz, Wolfe & Associates as its new independent registered public accounting firm, at which time the company dismissed Malone and Bailey. The company said that Malone and Bailey's reports on the its financial statements for the past year have not contained an adverse opinion or disclaimer of opinion, and were not modified as to audit scope or accounting principles. The Malone and Bailey reports, however, contained a going concern qualification. The decision to change its independent registered public accounting firm was approved by the company's Board of Directors. Analytical Surveys aid there were no disagreements between the company and Malone and Bailey on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. About Analytical Surveys Based in San Antonio, Tex., Analytical Surveys Inc. (Nasdaq: ANLT) -- http://www.asienergy.com/-- provides utility-industry data collection, creation, and management services for the geographic information systems markets. The company has recently transitioned its focus toward the development of oil and gas exploration and production opportunities. ASI's Energy Division is focused on high-quality exploratory and developmental drilling opportunities, as well as purchase of proven reserves with upside potential attributable to behind-pipe reserves, infill drilling, deeper reservoirs, and field extension opportunities. At Sept. 30, 2007, the company's consolidated balance sheet showed $1,176,000 in total assets and $2,274,000 in total liabilities, resulting in a $1,098,000 total stockholders' deficit. Going Concern Doubt As reported in the Troubled Company Reporter on Jan. 17, 2008, Houston-based Malone & Bailey PC expressed substantial doubt about Analytical Surveys Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Sept. 30, 2007. The auditing firm reported that the company has suffered significant operating losses in 2007 and prior years and does not currently have external financing in place to fund working capital requirements. The company posted a net loss of $4,534,000 on total revenues of $586,000 for the year ended Sept. 30, 2007, as compared with a net loss of $335,000 on total revenues of $4,320,000 in the prior year. ANF DEER CREEK: Files Schedules of Assets and Liabilities ------------------------------------------------------ ANF Deer Creek, LLC delivered to the United States Bankruptcy Court for the Central District Of California its schedules of assets and liabilities disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $21,000,000 B. Personal Property 159,060 C. Property Claimed as Exempt D. Creditors Holding $18,771,484 Secured Claims E. Creditors Holding 0 Unsecured Priority Claims F. Creditors Holding 723,790 Unsecured Nonpriority Claims ------------ ------------- TOTAL $21,159,060 $21,159,080 Based in Lake Forest, California, ANF Deer Creek, LLC owns and develops real estate. The developer filed for Chapter 11 protection on Mar. 5, 2008 (Bankr. C.D. Calif. Case No. 08-11068). Leonard M. Shulman, Esq. at Shulman, Hodges & Bastian, LLP represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed estimated assets and debts both of $10 million to $50 million. ARCLIN CANADA: S&P Changes Outlook to Negative; Holds 'B' Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services revised the outlook on Mississauga, Ontario-based Arclin Canada Ltd. to negative from stable. At the same time, S&P affirmed the 'B' long-term corporate credit rating on the company. S&P also affirmed the 'B+' first-lien senior secured debt rating (one notch above the corporate credit rating on Arclin), while the recovery rating is unchanged at '2', indicating an expectation of substantial (70%-90%) recovery in the event of default. The 'CCC+' second-lien senior secured debt rating was also affirmed (two notches below the corporate credit rating), while the recovery rating is unchanged at '6', indicating an expectation of negligible (0%-10%) recovery in a default scenario. "The negative outlook reflects our weak cash flow expectations for the company's resins business, its tight liquidity, and the likelihood that Arclin will breach its covenant in the next six months," said Standard & Poor's credit analyst Jatinder Mall. The ratings on Arclin (formerly Dynea Canada Ltd.) reflect its highly leveraged capital structure, the cyclical and low-margin commodity resins business, and the company's relatively small size compared with its main competitors. These risks are partially offset by a strong market position in the resins and overlays markets, the ability to pass through incremental raw material costs, and some product and end-market diversity. Arclin manufactures formaldehyde-based adhesive resins and overlays products, and has operations in Canada, the U.S., and Mexico. The company generates about 57% of its revenues from panelboard resins and about 20% from the overlays segment. Overall, Arclin generates most of its revenues from the U.S. and Canada. The negative outlook reflects S&P's expectations of weak cash flow generation as demand for resins declines in Arclin's building products and engineered specialties business units, and as liquidity remains tight. S&P could lower the ratings if resins volumes decline even more than expected, resulting in further deterioration in cash flows and financial metrics. Furthermore, S&P will monitor the situation to see what steps the company takes to remain compliant with covenants and improve its liquidity. An upgrade is unlikely in the near term and would require that the company improve cash flows and meaningfully deleverage its balance sheet. BEAR STEARNS: Moody's Slashes Ratings on 57 Certs. to Junk Status ----------------------------------------------------------------- Moody's Investors Service has downgraded 125 certificates and has placed on review for further possible downgrade 25 certificates from 18 transactions issued by SACO I Trust and Bear Stearns Mortgage Funding Trust. The transactions are backed by second lien loans. The certificates were downgraded because the bonds' credit enhancement levels, including excess spread and subordination were too low compared to the current projected loss numbers at the previous rating levels. The actions take into account the continued and worsening performance of transactions backed by closed-end-second and home equity line of credit collateral. Substantial pool losses of over the last few months have eroded credit enhancement available to the mezzanine and senior certificates. Despite the large amount of write-offs due to losses, delinquency pipelines have remained high as borrowers continue to default. Complete rating actions are: Issuer: Bear Stearns Mortgage Funding Trust 2006-SL1 -- Cl. A, Downgraded to B3 from Aa3; Placed under Review for further Possible Downgrade -- Cl. M-1, Downgraded to C from Ba1 -- Cl. M-2, Downgraded to C from Caa2 -- Cl. M-3, Downgraded to C from Ca Issuer: Bear Stearns Mortgage Funding Trust 2006-SL2 -- Cl. A, Downgraded to B3 from Aa1; Placed under Review for further Possible Downgrade -- Cl. M-1, Downgraded to C from Baa3 -- Cl. M-2, Downgraded to C from B2 -- Cl. M-3, Downgraded to C from Ca Issuer: Bear Stearns Mortgage Funding Trust 2006-SL3 -- Cl. A, Downgraded to B3 from Aa2; Placed under Review for further Possible Downgrade -- Cl. M-1, Downgraded to C from Baa2 -- Cl. M-2, Downgraded to C from B1 -- Cl. M-3, Downgraded to C from Caa2 Issuer: Bear Stearns Mortgage Funding Trust 2006-SL4 -- Cl. A, Downgraded to B3 from Aa1; Placed under Review for further Possible Downgrade -- Cl. M-1, Downgraded to Ca from Aa3 -- Cl. M-2, Downgraded to C from Ba1 -- Cl. M-3, Downgraded to C from B2 -- Cl. M-4, Downgraded to C from Ca Issuer: Bear Stearns Mortgage Funding Trust 2006-SL5 -- Cl. I-A, Downgraded to B1 from Aa2; Placed under Review for further Possible Downgrade -- Cl. II-A, Downgraded to B1 from Aa2; Placed under Review for further Possible Downgrade -- Cl. M-1, Downgraded to Ca from Baa2 -- Cl. M-2, Downgraded to C from Ba2 -- Cl. M-3, Downgraded to C from B2 -- Cl. M-4, Downgraded to C from Caa2 -- Cl. M-5, Downgraded to C from Ca Issuer: Bear Stearns Mortgage Funding Trust 2006-SL6 -- Cl. I-A, Downgraded to B1 from Aa2; Placed under Review for further Possible Downgrade -- Cl. II-A, Downgraded to B1 from Aa2; Placed under Review for further Possible Downgrade -- Cl. M-1, Downgraded to Caa3 from Baa1 -- Cl. M-2, Downgraded to C from Baa3 -- Cl. M-3, Downgraded to C from B1 -- Cl. M-4, Downgraded to C from Caa1 -- Cl. M-5, Downgraded to C from Caa3 -- Cl. M-6, Downgraded to C from Ca Issuer: Bear Stearns Mortgage Funding Trust 2007-SL1 -- Cl. I-A, Downgraded to B1 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. II-A, Downgraded to B1 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. M-1, Downgraded to Caa2 from Aa1 -- Cl. M-2, Downgraded to Ca from Aa2 -- Cl. M-3, Downgraded to C from Aa3 -- Cl. M-4, Downgraded to C from Baa2 -- Cl. M-5, Downgraded to C from Baa3 -- Cl. M-6, Downgraded to C from Ba1 -- Cl. B-1, Downgraded to C from Ca Issuer: Bear Stearns Mortgage Funding Trust 2007-SL2 -- Cl. I-A, Downgraded to B1 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. II-A, Downgraded to B1 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. M-1, Downgraded to Caa2 from Aa1 -- Cl. M-2, Downgraded to Ca from Aa2 -- Cl. M-3, Downgraded to C from Aa3 -- Cl. M-4, Downgraded to C from Baa1 -- Cl. M-5, Downgraded to C from Baa2 -- Cl. M-6, Downgraded to C from B1 -- Cl. B-1, Downgraded to C from Ca Issuer: Bear Stearns Second Lien Trust 2007-1 -- Cl. I-M-1, Downgraded to Ca from Aa3 -- Cl. I-M-2, Downgraded to C from B1 -- Cl. I-M-3, Downgraded to C from B2 -- Cl. I-M-4, Downgraded to C from B3 -- Cl. I-B-1, Downgraded to C from Ca -- Cl. II-M-1, Downgraded to Caa3 from Aa3 -- Cl. II-M-2, Downgraded to Ca from A1 -- Cl. II-M-3, Downgraded to Ca from A2 -- Cl. II-M-4, Downgraded to C from Baa2 -- Cl. II-M-5, Downgraded to C from Ba1 -- Cl. II-M-6, Downgraded to C from B2 -- Cl. II-B-1, Downgraded to C from Caa1 -- Cl. III-M-1, Downgraded to Caa2 from Aa3 -- Cl. III-M-2, Downgraded to Caa3 from A1 -- Cl. III-M-3, Downgraded to Ca from A2 -- Cl. III-M-4, Downgraded to C from Baa2 -- Cl. III-M-5, Downgraded to C from Ba1 -- Cl. III-M-6, Downgraded to C from B2 -- Cl. III-B-1, Downgraded to C from Caa1 Issuer: SACO I Trust 2006-10 -- Cl. A, Downgraded to Ba3 from Aa1; Placed under Review for further Possible Downgrade -- Cl. M-1, Downgraded to Caa2 from Aa3 -- Cl. M-2, Downgraded to Ca from Ba2 -- Cl. M-3, Downgraded to C from Ba3 -- Cl. M-4, Downgraded to C from Caa2 -- Cl. M-5, Downgraded to C from Ca Issuer: SACO I Trust 2006-12 -- Cl. I-A, Downgraded to Ba2 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. I-M-1, Downgraded to Caa3 from Baa3 -- Cl. I-M-2, Downgraded to C from Caa2 Issuer: SACO I Trust 2006-3 -- Cl. A-1, Downgraded to Baa2 from Aa1; Placed Under Review for further Possible Downgrade -- Cl. A-3, Downgraded to Baa2 from Aa1; Placed Under Review for further Possible Downgrade -- Cl. M-1, Downgraded to B2 from Aa2 -- Cl. M-2, Downgraded to Caa3 from Baa3 -- Cl. M-3, Downgraded to Ca from Ba3 -- Cl. M-4, Downgraded to C from Caa2 -- Cl. M-5, Downgraded to C from Ca Issuer: SACO I Trust 2006-4 -- Cl. A-1, Downgraded to Baa2 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. A-3, Downgraded to Baa2 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. M-1, Downgraded to B3 from Aa1 -- Cl. M-2, Downgraded to Caa3 from Ba1 -- Cl. M-3, Downgraded to Ca from B1 -- Cl. M-4, Downgraded to C from Caa2 -- Cl. M-5, Downgraded to C from Ca Issuer: SACO I Trust 2006-6 -- Cl. A, Downgraded to Ba2 from Aa2; Placed under Review for further Possible Downgrade -- Cl. M-1, Downgraded to Caa3 from Baa2 -- Cl. M-2, Downgraded to C from B2 -- Cl. M-3, Downgraded to C from Caa3 Issuer: SACO I Trust 2006-7 -- Cl. A, Downgraded to B2 from Aa2; Placed under Review for further Possible Downgrade -- Cl. M-1, Downgraded to Ca from Baa3 -- Cl. M-2, Downgraded to C from Caa1 -- Cl. M-3, Downgraded to C from Ca Issuer: SACO I Trust 2006-9 -- Cl. A, Downgraded to Ba2 from Aa2; Placed under Review for further Possible Downgrade -- Cl. M-1, Downgraded to B3 from Aa3 -- Cl. M-2, Downgraded to Caa2 from Baa3 -- Cl. M-3, Downgraded to Caa3 from Ba1 -- Cl. M-4, Downgraded to Ca from Ba2 -- Cl. M-5, Downgraded to C from B1 -- Cl. M-6, Downgraded to C from Caa2 Issuer: SACO I Trust 2007-1 -- Cl. I-A, Downgraded to Baa3 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. II-A, Downgraded to Baa3 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. M-1, Downgraded to B2 from Aaa -- Cl. M-2, Downgraded to Caa2 from Aa1 -- Cl. M-3, Downgraded to Caa3 from Aa2 -- Cl. M-4, Downgraded to Ca from Aa3 -- Cl. M-5, Downgraded to C from Baa1 -- Cl. M-6, Downgraded to C from Baa2 -- Cl. B-1, Downgraded to C from Ba3 -- Cl. B-2, Downgraded to C from Caa2 Issuer: SACO I Trust 2007-2, Mortgage-Backed Certificates, Series 2007-2 -- Cl. I-A, Downgraded to Baa3 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. II-A, Downgraded to Baa3 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. M-1, Downgraded to Caa1 from Aa1 -- Cl. M-2, Downgraded to Caa3 from Aa2 -- Cl. M-3, Downgraded to Ca from Aa3 -- Cl. M-4, Downgraded to C from Baa2 -- Cl. M-5, Downgraded to C from Ba3 -- Cl. M-6, Downgraded to C from B3 BLOCKBUSTER INC: Earns $38 Million in 4th Quarter ended January 6 ----------------------------------------------------------------- Blockbuster Inc. reported financial results for the fourth quarter and full-year ended Jan. 6, 2008. For the fourth quarter of 2007, net income was $38.1 million, an improvement of $29.8 million as compared with net income of $8.3 million for the fourth quarter of 2006. Adjusted net income for the fourth quarter of 2007, which excludes severance costs and certain other items, totaled $54.9 million as compared with adjusted net income of $21.1 million for the fourth quarter of 2006. "The year 2007 was one of transition for Blockbuster," Jim Keyes, Blockbuster chairman and CEO, said. "During the last half of the year, we established financial stability and took decisive steps to grow our rental business, diversify revenue streams and broaden channels of distribution." "Most notably, through aggressive cost reductions, the repositioning of our subscription programs, and a renewed focus on store merchandising, we gained momentum in both sales and earnings," Mr. Keyes added. "Building on our fourth quarter growth in year-over-year revenues and improvement in operating income, we are well positioned to return the company to profitability in 2008." Cash flow provided by operating activities decreased by $14.7 million from $159.9 million for the fourth quarter of 2006 to $145.2 million for the fourth quarter of 2007. The decrease was driven by changes in working capital. Free cash flow for the fourth quarter of 2007 was essentially flat at $122.8 million as compared to the same period last year. During the fourth quarter of 2007, the company paid down approximately $79.2 million in debt, including the entire balance outstanding under its revolving credit facility at Sept. 30, 2007. At Jan. 6, 2008, the company's total debt, including capital lease obligations was $757.8 million compared with $984.2 million in Dec. 31, 2006. For the full-year 2007, net loss totaled $85.1 million as compared with net income of $39.2 million for 2006. Excluding gain on the sale of GAMESTATION(R), severance and lease termination costs and certain other items, adjusted net loss for the full-year 2007 totaled $135.6 million compared with adjusted net loss of $1.6 million in 2006. Restatement The company restated, in its Form 10-K for the fiscal year ended Jan. 6, 2008, its reported consolidated financial statements for each of the fiscal years ended Dec. 31, 2006, and 2005 and its condensed consolidated financial information for each of the interim periods of fiscal years 2007 and 2006 to correct identified errors. The company is not withdrawing reliance on its financial statements for the fiscal years ended Dec. 31, 2006, and 2005, or for any of the interim periods of fiscal years 2007 and 2006, because the company has determined that these financial statements can still be relied upon. The effects of the restatement on income from continuing operations were: -- Thirty-nine weeks ended Sept. 30, 2007 - increase of $1.9 million from reported loss from continuing operations of $118.0 million to a restated amount of $116.1 million. -- Fiscal year ended Dec. 31, 2006 - decrease of $4.2 million from reported income from continuing operations of $67.9 million to a restated amount of $63.7 million. -- Fiscal year ended Dec. 31, 2005 - increase of $4.2 million from reported loss from continuing operations of $548.3 million to a restated amount of $544.1 million. In consideration of the errors that led to this restatement, the company reported in its Form 10-K for the year ended Jan. 6, 2008, two material weaknesses in its internal controls over financial reporting. The material weaknesses were related to accounting for general and administrative expense accruals and accounting for foreign currency translation adjustments. About Blockbuster Inc. Based in Dallas, Texas, Blockbuster Inc. (NYSE: BBI, BBI.B) -- http://www.blockbuster.com/-- is a leading global provider of in-home movie and game entertainment, with over 7,800 stores throughout the Americas, Europe, Asia and Australia. (Movie Gallery Bankruptcy News Issue No. 15; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled company Reporter on Dec. 28, 2007, Fitch Ratings affirmed Blockbuster Inc.'s long-term Issuer Default Rating at 'CCC' and the senior subordinated notes at 'CC/RR6'. The rating outlook is stable. The company had approximately $991 million of debt outstanding as of Sept. 30, 2007. CAIN MEZZ: Eroding Credit Quality Cues Moody's Four Junk Ratings ---------------------------------------------------------------- Moody's Investors Service downgraded ratings of six classes of notes issued by Cain Mezz ABS CDO IV, Ltd. and left on review for possible downgrade the ratings of three of these classes of notes. The classes affected by this rating actions are: Class Description: $292,000,000 Class A1S Variable Funding Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: A1, on review for possible downgrade -- Current Rating: A3, on review for possible downgrade Class Description: $78,000,000 Class A1J Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ba3, on review for possible downgrade Class Description: $52,000,000 Class A2 Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Ba2, on review for possible downgrade -- Current Rating: Caa3, on review for possible downgrade Class Description: $30,500,000 Class A3 Secured Deferrable Interest Floating Rate Notes Due 2047 -- Prior Rating: B1, on review for possible downgrade -- Current Rating: Ca Class Description: $20,000,000 Class B1 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 -- Prior Rating: B3, on review for possible downgrade -- Current Rating: Ca Class Description: $8,500,000 Class B2 Mezzanine Secured Deferrable Interest Floating Rate Notes Due 2047 -- Prior Rating: Caa2, on review for possible downgrade -- Current Rating: Ca The rating actions reflect deterioration in the credit quality of the underlying portfolio, as well as the occurrence on Feb. 27, 2008, as reported by the Trustee, of an event of default caused by a failure of the Senior Credit Test, as described in Section 5.1(h) of the Indenture dated May 30, 2007. As provided in Article V of the Indenture during the occurrence and continuance of an Event of Default, holders of certain Notes may be entitled to direct the Trustee to take particular actions with respect to the Collateral Debt Securities and the Notes. The rating downgrades taken reflect the increased expected loss associated with the tranche. Losses are attributed to diminished credit quality on the underlying portfolio. The severity of losses of certain tranches may be different, however, depending on the timing and choice of remedy to be pursued following the event of default by certain Noteholders. Because of this uncertainty, the ratings assigned to the Class A1S, A1J and A2 Notes remain on review for possible further action. Cairn Mezz ABS CDO IV, Ltd. is a collateralized debt obligation backed primarily by a portfolio of RMBS securities and CDO securities and synthetic securities in the form of credit default swaps. Reference obligations for the credit default swaps are RMBS and CDO securities. CAMBER 7: Moody's Junks Rating on $81 Mil. 2042 Notes From 'A3' --------------------------------------------------------------- Moody's Investors Service downgraded ratings of seven classes of notes issued by Camber 7 plc, and left on review for possible further rating action ratings of four of these classes of notes. The notes affected by this rating action are: Class Description: $485,000,000 Class A-1 Floating Rate Secured Notes Due 2042 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: A3, on review for possible downgrade Class Description: $100,000,000 Class A-2 Floating Rate Secured Notes Due 2042 -- Prior Rating: Aa3, on review for possible downgrade -- Current Rating: Ba2, on review for possible downgrade Class Description: $72,000,000 Class A-3 Floating Rate Secured Notes Due 2042 -- Prior Rating: A1, on review for possible downgrade -- Current Rating: B3, on review for possible downgrade Class Description: $81,000,000 Class B Floating Rate Secured Notes Due 2042 -- Prior Rating: A3, on review for possible downgrade -- Current Rating: Caa3, on review for possible downgrade Class Description: $78,300,000 Class C Deferrable Floating Rate Secured Notes Due 2042 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: C Class Description: $45,450,000 Class D Deferrable Floating Rate Secured Notes Due 2042 -- Prior Rating: B1, on review for possible downgrade -- Current Rating: C Class Description: $11,250,000 Class E Deferrable Floating Rate Secured Notes Due 2042 -- Prior Rating: Ca -- Current Rating: C Camber 7 plc is a collateralized debt obligation backed primarily by a portfolio of RMBS securities, CDO securities and synthetic securities in the form of credit default swaps. Reference obligations for the credit default swaps are RMBS securities. The rating actions reflect deterioration in the credit quality of the underlying portfolio, as well as the occurrence as reported by the Trustee on March 12, 2008, of an event of default caused by the Class A-3 Overcollateralization Ratio falling below 100%, as described in Section 5.1(f) of the Indenture dated February 28, 2007. This event of default is still continuing As provided in Article V of the Indenture during the occurrence and continuance of an Event of Default, holders of certain Notes may be entitled to direct the Trustee to take particular actions with respect to the Collateral Debt Securities and the Notes. The rating downgrades taken reflect the increased expected loss associated with each tranche. Losses are attributed to diminished credit quality on the underlying portfolio. The severity of losses of certain tranches may be different, however, depending on the remedy pursued following the event of default. Because of this uncertainty, the ratings assigned to the Class A-1 Notes, A-2 Notes, A-3 Notes and B Notes remain on review for possible further action. CAPITAL TRUST: S&P Cuts Ratings on 2005A and 2005A-T Bonds to 'BB' ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its rating on Capital Trust Agency (Atlantic Housing Foundation Inc. Properties), Florida's housing revenue bonds series 2005A and 2005A-T bonds to 'BB' from 'AA-', its rating on the agency's series 2005B bonds to 'CCC' from 'A', and its rating on the agency's series 2005C bonds to 'CC' from 'BBB'. Standard & Poor's also placed all of its ratings on the agency's bonds on CreditWatch with negative implications. The rating actions affect about $162 million in debt. The downgrades and CreditWatch placement reflect draws on the debt service reserve fund to make debt service payments, unfavorable auction-rate market conditions which have led to increased rates on the series 2005A and 2005A-T debt, and increasing losses on swaps, due to declining LIBOR rates. "The negative rating actions are due to unfavorable market conditions in the auction rate market and the project's exposure to interest rate swaps, which are projected to cost the project more than $1.8 million in 2008", said Standard & Poor's credit analyst Renee Berson. The Atlantic Housing Foundation portfolio originally contained a total of 3,799 units. Bond proceeds were used to finance a pool of 20 properties in three states from affiliates of the Atlantic Housing Foundation. These bonds are pooled through a trust agreement for the payment of debt service. The owners are limited liability companies set up by the Atlantic Housing Foundation, a Texas 501(C)(3) not-for-profit organization. CENTRO NP: Sells Certain Interests to NP Residential and Super LLC ------------------------------------------------------------------ Effective March 28, 2008, Centro NP LLC completed the disposition of 49% of its interests in certain subsidiaries owning real properties with an approximate fair market value of $780 million to Centro NP Residual Holding LLC, a joint venture owned by Super LLC, the company's sole and managing member, and the company. The Contribution Agreement was released from escrow and became effective as of March 30, 2008. Pursuant to the Contribution Agreement, the company also distributed 51% of its interest in certain subsidiaries to its parent, Super LLC, and Super LLC contributed such interest in the these subsidiaries to Centro NP Residual Holding. Distribution, Contribution and Assignment Agreement and Property Management and Leasing Agreement Centro NP LLC also disclosed that the company, Super LLC, Centro US Management Joint Venture 2 LP, Centro US Employment Company LLC and Centro New Plan Inc., a member of Super LLC, executed a Distribution, Contribution and Assignment Agreement to memorialize the prior agreement of the parties thereto with respect to the assumption of all liabilities relating to the company's employees by Joint Venture 2 and the distribution of approximately $15 million of miscellaneous assets used in the day-to-day management of the company's properties to Joint Venture 2. In connection with such transaction, the company executed property management agreements with a wholly owned subsidiary of Joint Venture 2 to memorialize the prior agreement under which Joint Venture 2 has been managing the company's properties. The Distribution Agreement and the property management agreements were released from escrow as of March 30, 2008. Letter Agreement Amendment On March 28, 2008, the company entered into a letter agreement modifying and waiving provisions of the Revolving Credit Facility and the Letter Agreement, dated as of Feb. 14, 2008, relating to the companys $350.0 million unsecured revolving credit facility with Bank of America N.A., as administrative agent. The Letter Agreement Amendment, among other things, modifies and waives provisions of the Revolving Credit Facility and the Letter Agreement to permit the Management Services Assumption. A full-text copy of the Contribution, Distribution and Assignment Agreement, dated as of March 28, 2008, among Super LLC, Centro NP LLC, Centro NP Residual Holding LLC and certain of the company's wholly owned subsidiaries, is available for free at: http://researcharchives.com/t/s?2a0b A full-text copy of the Distribution, Contribution, Assignment and Assumption Agreement among Centro NP LLC, Super LLC, Centro New Plan Inc., Centro US Management Joint Venture 2 LP and Centro US Employment Company LLC, is available for free at: http://researcharchives.com/t/s?2a0c A full-text copy of the Exclusive Global Leasing and Management Agreement (Non-Contracted) between Centro Super Management Joint Venture 2 LLC and Centro NP LLC, is available for free at: http://researcharchives.com/t/s?2a0e A full-text copy of the Exclusive Global Subcontract Agreement (Third Party) between Centro Super Management Joint Venture 2 LLC and Centro NP LLC, is available for free at: http://researcharchives.com/t/s?2a0f A full-text copy of the Exclusive Global Subcontract Agreement (Related Party) between Centro Super Management Joint Venture 2, LLC and Centro NP LLC, is available for free at: http://researcharchives.com/t/s?2a10 A full-text copy of the Letter Agreement, dated as of March 28, 2008, among Super LLC, JPMorgan Chase Bank N.A., as agent, and certain other parties, is available for free at: http://researcharchives.com/t/s?2a0d About Centro NP LLC Headquartered in Lexington, New York, Centro NP LLC was formed in February 2007 to succeed the operations of New Plan Excel Realty Trust Inc. The principal business of the company is the ownership and management of community and neighborhood shopping centers throughout the United States. At Sept. 30, 2007, the company's consolidated balance sheet showed $6.30 billion in total assets, $2.38 billion in total liabilities, $87.5 million in minority interest in consolidated partnership and joint ventures, and $3.83 billion in total stockholders' equity. * * * As reported in the Troubled Company Reporter on Feb. 26, 2008, Fitch Ratings maintained Centro NP LLC, formerly New Plan Excel Realty Trust's Issuer Default Rating at 'CCC'. CETUS ABS: Moody's Cuts Ratings on $100MM Notes to 'Ba2' From Aaa ----------------------------------------------------------------- Moody's Investors Service downgraded ratings of four classes of notes issued by Cetus ABS CDO 2006-2, Ltd. and left on review for possible downgrade the rating of one of these classes of notes. The class affected by this rating action is: Class Description: $100,000,000 Class A-1 Floating Rate Senior Secured Notes Due 2046 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Ba2, on review for possible downgrade Class Description: $50,000,000 Class A-2 Floating Rate Senior Secured Notes Due 2046 -- Prior Rating: Ba1, on review for possible downgrade -- Current Rating: Ca Class Description: $55,000,000 Class B Deferrable Subordinate Secured Notes Due 2046 -- Prior Rating: Ca -- Current Rating: C Class Description: $40,00,000 Class C Deferrable Junior Subordinate Secured Notes Due 2046 -- Prior Rating: Ca -- Current Rating: C Cetus ABS CDO 2006-2, Ltd. is a collateralized debt obligation backed primarily by a portfolio of RMBS, CDO securities and synthetic securities in the form of credit default swaps. Reference obligations for the credit default swaps are RMBS and CDO securities. Since the closing date, the CDO has experienced deterioration in the credit quality of the underlying portfolio, as well as the occurrence on March 11, 2008, as reported by the Trustee, of an event of default caused when the Net Outstanding Portfolio Collateral Balance plus the MVS Account Excess as of a Determination Date is less than the sum of the Remaining Unfunded Notional Amount plus the outstanding Swap Counterparty Amount plus the Aggregate Outstanding Amount of the Class A-1 Notes, as set forth in Section 5.1(h) of the Indenture dated Sept. 27, 2006. As provided in Article V of the Indenture, during the occurrence and continuance of an Event of Default, certain parties to the transaction may be entitled to direct the Trustee to take particular actions with respect to the Notes. In this regard, Moody's has received notification from the Trustee that a Majority of the Controlling Class has declared the principal of all of the Secured Notes to be immediately due and payable. The rating downgrades taken reflect the increased expected loss associated with the tranche. Losses are attributed to diminished credit quality on the underlying portfolio. The severity of losses of certain tranches may be different, however, depending on the timing and choice of remedy to be pursued following the event of default. Because of this uncertainty, the ratings assigned to the Class A-1 and Class A-2 Notes remain on review for possible further action. CHIQUITA INTERNATIONAL: Inks New $350 Million Credit Facility ------------------------------------------------------------- Chiquita Brands International Inc. disclosed Monday that it has entered into a new $350 million senior secured credit agreement with various lenders, including Cooperatieve Centrale Raiffeisen - Boerenleenbank B.A., "Rabobank Nederland," New York Branch ("Rabobank") acting as administrative agent and lead arranger and with Wells Fargo Bank, National Association as the syndication agent. Entry into this agreement completes the company's previously announced 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 successfully executing its profitable growth strategy. "We are very pleased with the outcome of the refinancing we have achieved during a period of turbulent financial markets, and we appreciate the continuing support provided by our bank partners," said Fernando Aguirre, chairman and chief executive officer. "I am confident that our strengthened balance sheet will enhance our ability to achieve sustainable, profitable growth." The new six-year secured credit facility consists of a $150 million revolving credit facility and a $200 million term loan, and replaces the company's prior $200 million revolving credit facility as well as the $132 million Term Loan C which remained outstanding following the company's February 2008 offering of 4.25% Convertible Senior Notes due 2016. The revolving credit facility may be increased in the future by up to $50 million at Chiquita's request, under certain circumstances. The agreement governing the new credit facilities contains two material financial maintenance covenants, an operating company leverage ratio and a fixed charge coverage ratio, both of which are set at levels that provide significant added flexibility. The holding company leverage covenant that was part of the prior senior secured facility is not included in the new credit facility. About Chiquita Brands Headquartered in Cincinnati, Ohio, Chiquita Brands International Inc. (NYSE: CQB) -- http://www.chiquita.com/-- is a marketer and distributor of high-quality fresh and value-added food products. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 24,000 people operating in more than 70 countries worldwide. At Dec. 31, 2007, the company's consolidated balance sheet showed $1.429 billion in total assets, $533.3 million in total liabilities, and $895.5 million in total stockholders' equity. * * * As reported in the Troubled Company Reporter on March 4, 2008, Moody's Investors Service affirmed Chiquita Brands International Inc.'s $250 million 7.5% senior unsecured notes due 2014 at Caa2 (LGD5), LGD % to 82% from 89%; and $225 million 8.875% senior unsecured notes due 2015 at Caa2 (LGD5), LGD % to 82% from 89%. CHIQUITA BRANDS: Morten Arntzewn Resigns as Board Director ---------------------------------------------------------- On March 28, 2008, Morten Arntzen notified the Chiquita Brand International Inc.'s Board of Directors of his decision not to stand for re-election to the Board of Directors at the company's annual meeting of stockholders in 2008 due to other business commitments. Mr. Arntzen will continue to serve as a director of the company until the 2008 annual meeting of stockholders. Mr. Arntzen's retirement from the Board of Directors does not involve any disagreement with the Company. On April 3, 2008, the Board of Directors of the company elected a new director, William H. Camp. Mr. Camp, age 59, was employed by Archer Daniels Midland Company, an agricultural processing company and manufacturer of value-added food and feed ingredients from 1986 until he retired in December 2007. It has not yet been determined on which standing committees of the Board of Directors Mr. Camp will serve. Mr. Camp, however, was appointed to serve on an ad hoc committee recently formed to consider certain recent litigation involving the company. About Chiquita Brands Headquartered in Cincinnati, Ohio, Chiquita Brands International Inc. (NYSE: CQB) -- http://www.chiquita.com/-- is a marketer and distributor of high-quality fresh and value-added food products. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 24,000 people operating in more than 70 countries worldwide. At Dec. 31, 2007, the company's consolidated balance sheet showed $1.429 billion in total assets, $533.3 million in total liabilities, and $895.5 million in total stockholders' equity. * * * As reported in the Troubled Company Reporter on March 4, 2008, Moody's Investors Service affirmed Chiquita Brands International Inc.'s $250 million 7.5% senior unsecured notes due 2014 at Caa2 (LGD5), LGD % to 82% from 89%; and $225 million 8.875% senior unsecured notes due 2015 at Caa2 (LGD5), LGD % to 82% from 89%. CITIMORTGAGE ALTERNATIVE: Moody's Cuts Ratings on Delinquencies --------------------------------------------------------------- Moody's Investors Service has taken rating actions on 34 tranches from 5 Alt-A transactions issued by CitiMortgage Alternative Loan Trust. Thirty one tranches were placed on review for possible downgrade and an additional three were downgraded. The collateral backing these transactions consists primarily of first-lien, fixed-rate, Alt-A mortgage loans. The ratings were downgraded, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. The actions described below are a result of Moody's on-going review process. Complete rating actions are: Issuer: CitiMortgage Alternative Loan Trust 2006-A1 -- Cl. B-2, Downgraded to Baa1 from A2 -- Cl. B-3, Downgraded to B2 from Baa2 Issuer: CitiMortgage Alternative Loan Trust 2006-A2 -- Cl. B-3, Downgraded to Baa3 from Baa1 Issuer: CitiMortgage Alternative Loan Trust 2007-A3 -- Cl. IA-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-6, Placed on Review for Possible Downgrade, currently Aa1 -- Cl. IA-8, Placed on Review for Possible Downgrade, currently Aa1 -- Cl. IA-9, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-10, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IIA-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IIA-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-PO, Placed on Review for Possible Downgrade, currently Aaa Issuer: CitiMortgage Alternative Loan Trust 2007-A5 -- Cl. IA-5, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-8, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-9, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-11, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-12, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-14, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-15, Placed on Review for Possible Downgrade, currently Aa1 -- Cl. IA-16, Placed on Review for Possible Downgrade, currently Aa1 -- Cl. IA-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-PO, Placed on Review for Possible Downgrade, currently Aaa Issuer: CitiMortgage Alternative Loan Trust, Series 2007-A2 -- Cl. IA-3, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-6, Placed on Review for Possible Downgrade, currently Aa1 -- Cl. IA-7, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-8, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-9, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-10, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-11, Placed on Review for Possible Downgrade, currently Aa1 -- Cl. IA-12, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-15, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-16, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IA-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-PO, Placed on Review for Possible Downgrade, currently Aaa CITIUS I: Moody's Junks Ratings on $45 Million Notes From 'Aa2' --------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible downgrade these notes issued by Citius I Funding, Ltd.: Class Description: Up to $1,800,000,000 Class A ST Notes -- Prior Rating: Aaa -- Current Rating: A2, on review for possible downgrade Class Description: Up to $1,800,000,000 Class A LT Notes -- Prior Rating: Aaa -- Current Rating: A2, on review for possible downgrade Class Description: The $70,000,000 Class A-1 Secured Floating Rate Notes Due 2046 -- Prior Rating: Aaa -- Current Rating: Baa2, on review for possible downgrade Class Description: The $25,000,000 Class A-2 Secured Floating Rate Notes Due 2046 -- Prior Rating: Aaa -- Current Rating: Baa3, on review for possible downgrade In addition Moody's also downgraded these notes: Class Description: The $45,000,000 Class B Secured Floating Rate Notes Due 2046 -- Prior Rating: Aa2 -- Current Rating: Ca Class Description: The $25,000,000 Class C Deferrable Floating Rate Notes Due 2046 -- Prior Rating: A2, on review for possible downgrade -- Current Rating: Ca Class Description: The $15,000,000 Class D Deferrable Floating Rate Notes due 2046 -- Prior Rating: Ba3 -- Current Rating: Ca Class Description: The $4,000,000 Class E Deferrable Floating Rate Notes due 2046 -- Prior Rating: B3 -- Current Rating: Ca According to Moody's, the rating actions are the result of deterioration in the credit quality of the transaction's underlying collateral pool, which consists primarily of structured finance securities. COLLEZIONE EUROPA: Obtains Court Ok to Hire Stump Corp. as Realtor ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of New Jersey gave permission to Collezione Europa U.S.A. Inc. and its debtor- affiliates to employ The Stump Corp. as their realtor. The employment of Stump is necessary because the Debtors must sell or lease their 411,000 sq. feet warehouse in North Carolina in order to provide funds that are crucial to their reorganization. The property is located at 2973 Kelly Boulevard in Claremont, North Carolina. The Debtors will pay Stump a sales commission of 3% of the selling price upon the closing of a sale of the property on terms acceptable to the owner. If a cooperating broker brings in the buyer, then the real estate commission will rise to 5%, with the cooperating broker receiving 3% and Stump receiving 2%. The Debtors will pay Stump a commission of 3% of the monthly base rental, in the case of a lease or extension, expansion or renewal of lease involving the property. If a cooperatiing broker brings in the tenant, then the real estate commissions will rise to 5%, with the cooperating broker receiving 3% and Stump receiving 2%. If a tenant, under a lease on which Stump has earned a commission, acquires the property, the Debtors will pay Stump a sales commission of 3% of the selling price at closing. If the broker brings in the buyer, then the real estate commission will rise to 5%, with the cooperating broker receiving 3% and Stump receiving 2%. J.R. Stump, Jr., the president of Stump, attested that his firm does not hold or represent any interest adverse to the Debtors or their estates, and that the firm is a "disinterested person" as such term is defined under Section 101(14) of the bankruptcy code. About Collezione Europa Based in Englewood, N.J., Collezione Europa USA, Inc. -- http://www.czeusa.com/-- was founded in 1984. Since the inception of the company, the sole focus has been imports from different parts of the world . The Company presently imports from the Philippines, China, Taiwan and Mexico. Collezione Europa maintains an inventory of more than 250,000 items. The Company operates a 450,000 square foot warehouse in Claremont, North Carolina. In July 2005 Collezione established a new showroom at the Las Vegas World Market Center, Las Vegas. The Company also has a showroom in High Point, North Carolina. The company and two of its subsidiaries filed for bankruptcy protection on Feb. 29, 2008 (Bankr. D.N.J., Case No. 08-13599). Sam Della Fera, Esq. at Trenk, DiPasquale, Webster, Della Fera & Sodono represents the Debtors in their restructuring efforts. When the company filed for bankruptcy petition, it listed assets of $10 million to $50 million and debts of $10 million to $50 million. COMM 2007-FL14: S&P Keeps 'BB+' Rating on Two Classes of Certs. --------------------------------------------------------------- Standard & Poor's Ratings Services revised its CreditWatch placements on four classes of commercial mortgage pass-through certificates from COMM 2007-FL14 to positive from developing. Six other ratings remain on CreditWatch developing. The remaining ratings on this transaction are not affected at this time. On Feb. 1, 2008, Standard & Poor's placed its ratings on 10 classes of commercial mortgage pass-through certificates from COMM 2007-FL14 on CreditWatch with developing implications due to the uncertainty surrounding the maturity of the Macklowe EOP Manhattan Portfolio Pool 1 loan within this transaction. The Macklowe loan did not pay off at its Feb. 9, 2008, maturity date and was transferred to special servicing on Feb. 13, 2008, due to its maturity default. The Macklowe loan consists of a $1.096 billion senior pooled component and a $172.0 million senior unpooled component (collectively, the A-participation interest) that are included in the trust, as well as a $298.0 million junior participation that is held outside the trust. The CreditWatch revisions follow a notice dated April 2, 2008, by LaSalle Bank N.A., the trust's reporting agent, indicating that Capmark, as special servicer, has received notice that the B- participation holder intends to exercise its "B-Participation Holders Par Purchase Right" under the participation agreement. The B-participation holder also intends to exercise its "Purchaser of Trust Asset by Related Junior Participants" right under the servicing and intercreditor agreement and purchase the entire A- participation on April 14, 2008. Should the purchase of the A note occur, it will be removed from the trust, resulting in a reduction of the trust balance. This will result in increased credit enhancement levels that may prompt upgrades of classes B through D as well as retire the MLK1 class. The Macklowe EOP loan is secured by a first mortgage encumbering the fee interests in a cross-collateralized and cross-defaulted portfolio of four class A office properties totaling 3,028,266 square feet of space in Midtown Manhattan. The properties include Worldwide Plaza in the Midtown West submarket; 1540 Broadway in the Times Square submarket; and 527 Madison Avenue and Tower 56, both in the Plaza District submarket. S&P will resolve all of the CreditWatch placements after the Macklowe EOP loan is resolved and we have analyzed the remaining loans in the pool. Ratings Placed on CreditWatch Positive COMM 2007-FL14 Commercial mortgage pass-through certificates Rating ------ Class To From ----- -- ---- B AA+/Watch Pos AA+/Watch Dev C AA/Watch Pos AA/Watch Dev D AA/Watch Pos AA/Watch Dev MLK1 BBB-/Watch Pos BBB-/Watch Dev Ratings Remaining on CreditWatch Developing COMM 2007-FL14 Commercial mortgage pass-through certificates Class Rating ----- ------ E AA-/Watch Dev F A/Watch Dev G A/Watch Dev H A-/Watch Dev J BBB/Watch Dev K BBB-/Watch Dev Other Outstanding Ratings COMM 2007-FL14 Commercial mortgage pass-through certificates Class Rating ----- ------ A-1 AAA A-J AAA X-1 AAA X-2 AAA X-3-DB AAA X-3-SG AAA X-4 AAA X-5-DB AAA X-5-DG AAA GLB1 A GLB2 BBB+ GLB3 BBB- GLB4 BB+ AOA1 A+ AOA2 A- AOA3 BBB- AOA4 BB+ PG1 A+ PG2 A- PG3 BBB PG4 BBB- PH1 BBB+ PH2 BBB PH3 BBB- COOKSON 2007: Moody's Junks Rating on $150 Mil. Notes From 'Baa3' ----------------------------------------------------------------- Moody's Investors Service downgraded these notes issued by Cookson Series 2007: Class Description: $150,000,000 Floating Rate Notes due 2047 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: Ca Class Description: EUR60,000,000 Variable Rate Notes due 2047 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: Ca Class Description: $41,000,000 Variable Rate Notes due 2047 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: Ca Class Description: $150,000,000 Series 2007-19 Variable Rate Notes Due 2047 -- Prior Rating: Ba1, on review for possible downgrade -- Current Rating: Ca Class Description: $150,000,000 Series 2007-35 Variable Rate Notes Due 2047 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ca Class Description: EUR40,000,000 Variable Rate Notes Due 2044 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ca Class Description: EUR40,000,000 Variable Rate Notes Due 2044 -- Prior Rating: Baa1, on review for possible downgrade -- Current Rating: Ca Class Description: $150,000,000 Variable Rate Notes Due 2044 -- Prior Rating: Baa2, 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. CREDIT SUISSE: S&P Downgrades Ratings on Four Classes of Certs. --------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on four classes of commercial mortgage pass-through certificates from Credit Suisse First Boston Mortgage Securities Corp.'s series 2002-CKS4. Concurrently, S&P lowered its ratings on four classes and affirmed S&P's ratings on the remaining classes from this transaction. The raised ratings reflect increased credit support due to the paydown of 12% of the pool and defeasance of $208 million (19%) of the pool's collateral. The upgrade of class A-PM is due to the improved performance of the Arbor Place Mall. The lowered ratings reflect the anticipated losses and credit support erosion upon the eventual resolution of several assets with the special servicer. S&P expects the class P certificate to incur principal losses relating to the specially serviced assets in the pool. S&P will lower its rating to 'D' when this occurs. The affirmed ratings reflect credit enhancement levels that provide adequate support through various stress scenarios. As of the March 17, 2008, remittance report, the collateral pool consisted of 138 loans with an aggregate trust balance of $1.09 billion, compared with 156 loans with a $1.23 billion balance at issuance. The master servicer, KeyCorp Real Estate Capital Markets Inc., reported financial information for 100% of the pool excluding defeased loans. Ninety-nine percent of the servicer-reported information was full-year 2006 data and partial- year 2007 data. Based on this information, Standard & Poor's calculated a weighted average debt service coverage of 1.45x, down from 1.48x at issuance. Three loans ($11.4, 1%) in the pool are delinquent. There are six loans ($25.9 million, 2%) with the special servicer, LNR Partners Inc., two of which are 90-plus days delinquent and four are current. An appraisal reduction amount of $497,682 is in effect for one of the specially serviced assets. To date, the trust has experienced six losses totaling $7.0 million. There are six loans with the special servicer. Three of the six loans are for multifamily properties within the Dallas metropolitan statistical area and have the same sponsor. Details are: -- Basswood Manor Apartments, ($6.0 million), Metrocrest Village Apartments ($4.17 million, 0.4%), and Prairie Ridge Apartments ($2.2 million, 0.2%) were transferred to the special servicer in June 2007 due to payment default. Basswood Manor Apartments is secured by a 212-unit multifamily property in Lewisville, Texas. Metrocrest Village Apartments is secured by a 143-unit multifamily property in Carrolton, Texas. Prairie Ridge Apartments is secured by a 100-unit multifamily property in Grand Prairie, Texas. The borrowers of the three loans are separate special purpose entities, but all have the same principal. The borrowers has resumed monthly payments, making all of the loans current. Discussions are underway with the borrowers regarding default interest. As of year-end 2007, all three properties reported occupancy of 89% or better; however, the DSC for each property is below 1.0x. Recent appraisals for each property indicate a valuation slightly above the respective total exposure. -- Concepts Direct Inc. Headquarters ($7.9 million, 1%) is secured by a 117,182-sq.-ft. industrial property in Longmont, Colorado. This loan was transferred to the special servicer in May 2007 due to a nonpermitted transfer of ownership interests that occurred in 2005. The borrower intends to sell the property and pay off the loan. As of June 2007, the occupancy rate was 69% and DSC was 0.97x. -- Tahiti Garden Apartments ($3.7 million, 0.3%) is secured by a 112-unit multi-family property in Lauderdale Lake, Florida. The loan is 90-plus-days delinquent and was transferred to the special servicer in February 2007 due to payment default. LNR reported that the property has significant deferred maintenance due to damage from Hurricane Wilma. The borrower diverted insurance proceeds that were received pursuant to an insurance claim from Hurricane Wilma. The property continues to have significant deferred maintenance. The borrower has not funded repairs to remedy the situation. -- Capital Square Shopping Center ($2.0 million, 0.2%) is secured by a 44,519sq.-ft. retail property in Battle Creek, Michigan. The loan was transferred to LNR in November 2007 due to payment default. The loan is 90-plus-days delinquent. A foreclosure sale occurred on March 7, 2008, and the property is now real estate owned. An ARA of $497,226 is in effect. The top 10 loans secured by real estate have an aggregate outstanding balance of $402 million (37%) and a weighted average DSC of 1.59x, compared with 1.63x at issuance. Four of the top 10 loans appear on the master servicer's watchlist. Standard & Poor's reviewed property inspections provided by the master servicer for all of the assets underlying the top 10 loans, and two were characterized as "excellent," while the remaining were characterized as "good." Key reported a watchlist of 26 loans with an aggregate outstanding balance of $228 million (21%), which includes the fourth-, fifth-, eighth-, and ninth-largest loans. The fourth-largest loan, 1650 Arch Street ($44 million, 4%), is secured by a 587,021-sq.-ft. office building in Philadelphia, Pennsylvania. The loan appears on the watchlist because the major tenant, U.S. General Services Administration, with 54% net rentable area, has a lease expiration date in May 2008. As of Sept. 30, 2007, the building was 99% occupied and DSC was 1.68x. Excluding the U.S. General Service lease, occupancy and DSC would decrease to 45% and 0.09x, respectively. The fifth-largest loan, Old Hickory Mall ($32 million, 3%), is secured by a 359,774 sq. ft. of space in a 535,772-sq.-ft regional mall in Jackson, Tennessee. The mall was originally developed in phases as freestanding buildings in 1967 and in 1973. The loan is on the watchlist as the mall was in an area affected by a class 4 tornado that occurred on Feb. 5, 2008. The borrower reported that the property did not sustain any damage. As of year-end 2006, occupancy was 99% and DSC was 1.45x. Key will remove this loan from the watchlist, which will be reflected in the April 2008 remittance report. The eighth-largest loan, the Village at Chandler Crossings ($22 million, 2%), is secured by a 252-unit student housing in East Lansing, Michigan. The property was built in 2002 and is in close proximity to Michigan State University. The loan was previously with the special servicer from September 2004 to June 2006. The loan appears on the watchlist due to low DSC and occupancy. For the nine-months ending Sept. 30, 2007, Key reported an occupancy rate of 71% and a DSC of 0.85x. The ninth-largest loan, Forum at Gateways ($21 million, 2%), is secured by a 258,322sq.-ft. retail property in Sterling Heights, Michigan. The second-largest tenant, Farmer Jack (21% of the gross leasable area), vacated the premises because of its corporate strategy to exit the Michigan market. Farmer Jack continues to pay rent and is seeking subtenants. As of Sept. 30, 2007, the physical occupancy was 72.4%, while the economic occupancy was 93.3%. Key reported a DSC of 1.34x as of year-end 2006. Credit characteristics for the largest loan, Crystal Mall, and the second-largest loan, Arbor Place Mall, are consistent with those of investment-grade obligations. Details are: -- The Crystal Mall loan has a trust balance and whole-loan balance of $97.8 million. The loan is secured by 528,947 sq. ft. of a 793,747-sq.-ft. fully enclosed regional mall in Waterford, Connecticut. The mall was constructed in 1984 and renovated in 1997. Standard & Poor's adjusted net cash flow is comparable to its level at issuance. Key reported a DSC of 1.70x and 91.5% occupancy for the nine months ended Sept. 30, 2007. -- The Arbor Place Mall loan has a pooled trust balance of $68.1 million and a whole-loan balance of $97.8 million. The subordinate nonpooled component of the $4.5 million is raked to the A-PM certificate, which derives 100% of its cash flow from this loan. The loan is secured by 473,449 sq. ft. of a 1,030,449-sq.-ft. fully enclosed mall in Douglasville, Georgia. The mall was constructed in 1999. Key reported a DSC of 2.01x and 92.8% occupancy for the nine months ended Sept. 30, 2007. Standard & Poor's stressed the loans on the watchlist and other loans with credit issues as part of its analysis. The resultant credit enhancement levels support the ratings at the raised, lowered, and affirmed levels. Ratings Raised CSFB Mortgage Securities Corp. Commercial mortgage pass-through certificates series 2002-CKS4 Rating ------ Class To From Credit enhancement ----- -- ---- ------------------ C AAA AA+ 16.62% D AA+ AA 13.79% E AA AA- 12.23% CSFB Mortgage Securities Corp. Commercial mortgage pass-through certificates series 2002-CKS4 Rating Credit enhancement ------ ------------------ Class To From (nonpooled interests) ----- -- ---- --------------------- A-PM A+ BBB+ N/A Ratings Lowered CSFB Mortgage Securities Corp. Commercial mortgage pass-through certificates series 2002-CKS4 Rating ------ Class To From Credit enhancement ----- -- ---- ------------------ M B BB- 2.47% N B- B 1.91% O CCC B- 1.34% P CCC- CCC 0.77% Ratings Affirmed CSFB Mortgage Securities Corp. Commercial mortgage pass-through certificates series 2002-CKS4 Credit enhancement ------------------ Class To From (pooled interests) ----- -- ---- ------------------ A-1 AAA 22.56 A-2 AAA 22.56 B AAA 18.32 F A+ 10.39 G A 8.98 H A- 7.71 J BBB 5.30 K BBB- 4.31 L BB+ 3.60 A-X AAA N/A A-SP AAA N/A N/A -- Not applicable. CYGNUS BUSINESS: S&P Changes Outlook to Stable; Holds CCC+ Rating ----------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Cygnus Business Media Inc. and its parent company, CommerceConnect Media Holdings Inc., to stable from developing. At the same time, S&P affirmed all ratings, including the 'CCC+' corporate credit rating. "The outlook change reflects our opinion that an imminent rating change is unlikely," explained Standard & Poor's credit analyst Tulip Lim. S&P analyzes Cygnus Business Media, a business-to-business publisher and event organizer, on a consolidated basis with its parent. The ratings reflect the company's limited liquidity, high tolerance for risk, high debt leverage, small EBITDA base, and difficult business fundamentals. These factors are minimally offset by Cygnus' cash flow diversity, and the niche competitive positions of its trade publications, expositions, and related operations serving eight industry sectors. DOV PHARMA: Board Dismisses PwC as Independent Auditors ------------------------------------------------------- On April 1, 2008, the Audit Committee of the Board of Directors of DOV Pharmaceutical Inc. dismissed PricewaterhouseCoopers LLP as the company's independent registered public accounting firm for the year ending Dec. 31, 2008. The reports of PwC on the company's consolidated financial statements for the fiscal years ended Dec. 31, 2007, and Dec. 31, 2006, contained an explanatory paragraph raising substantial doubt about the company's ability to continue as a going concern. During the fiscal years ended Dec. 31, 2007, and Dec. 31, 2006, and through April 1, 2008, there were no disagreements with PwC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure. As of the date of this filing, the Audit Committee has not yet engaged a successor independent registered public accounting firm for the fiscal year ending Dec. 31, 2008. About DOV Pharmaceutical Based in Somerset, N.J., DOV Pharmaceutical Inc. (Other OTC: DOVP.PK) -- http://www.dovpharm.com/ -- is a biopharmaceutical company focused on the discovery, acquisition and development of novel drug candidates for central nervous system disorders. The company's product candidates address some of the largest pharmaceutical markets in the world including depression, pain and insomnia. At Dec. 31, 2007, the company's consolidated balance sheet showed $15,530,464 in total assets, $2,005,263 in total current liabilities, $2,101,419 in deferred credits, $6,326,980 in Series D convertible preferred stock, and $5,096,802 in total stockholders' equity. * * * PricewaterhouseCoopers LLP, in Florham Park, N. J., expressed substantial doubt about DOV Pharmaceutical Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2007, and 2006. PwC pointed to the company's recurring losses from operations. EAU TECHNOLOGIES: Deficits Prompt Going Concern Opinion ------------------------------------------------------- HJ & Associates, LLC, in Salt Lake City, Utah, raised substantial doubt about EAU Technologies, Inc., fka Electric Aquagenics Unlimited, Inc.'s ability to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2007, and 2006. The auditing firm pointed to the company's working capital and stockholders' deficit. For the year ended Dec. 31, 2007, the company posted a $10,891,337 net loss on $878,599 of total sales as compared with an $8,515,357 net loss on $1,150,472 of total sales in 2006. At Dec. 31, 2007, the company's balance sheet showed $5,347,458 in total assets and $11,922,031 in total liabilities, resulting in a $6,574,573 stockholders' deficit. The company had a $3,938,781 stockholders' deficit at Dec. 31, 2006. The company's balance sheet at Dec. 31, 2007, also showed strained liquidity with $4,677,688 in total current assets available to pay $4,563,245 in total current liabilities. Name Change The company changed its name to EAU Technologies, Inc., from Electric Aquagenics Unlimited, Inc., on Jan. 17, 2007. Subsequent Events In January 2008, an officer of the company exercised 150,000 options for $1,500 or $0.01 per share. The options were granted in 2003 for services. In February 2008, the compensation committee of the company's board of directors granted $30,000 to each board member in the form of 23,077 shares of restricted stock for each director, effective on Feb. 27, 2008. The restricted stock will vest ratably over a period of two years from the date of grant. These grants were made pursuant to the annual directors' compensation program approved by the board in December 2007. The compensation committee also granted 49,500 shares of restricted stock to various employees, which will vest one year from the date of grant. In March 2008, the company and the University of Georgia Research Foundation entered into a Settlement and License Amendment. The Amendment settles a dispute among the parties regarding the amount of royalties due under the License Agreement dated as of June 18, 2002, in connection with the use of the licensed technology by Water Science LLC. Under the Amendment, to settle this dispute, the company will pay to UGARF a total of $65,000, of which $25,000 has been paid to date. The remaining $40,000 will be paid in four equal installments of $10,000 each due on the first day of the calendar quarters of 2008, aside from the initial payment, which is due within ten days of the effective date of the Amendment. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?29f5 Based in Kennesaw, Ga., EAU Technologies, Inc., formerly known as Electric Aquagenics Unlimited, Inc. (OTCBB: EAUI.OB) -- http://www.eau-x.com/-- develops, manufactures and sells equipment that uses water electrolysis to create fluids. These fluids have various commercial applications and may be used in commercial food processing organic or non-organic agricultural and consumer products that clean, disinfect, remediate, hydrate and moisturize. ECO 2007-1: Four Classes of Notes Acquire Moody's Junk Ratings -------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by ECO 2007-1 SPC: Class Description: ECO 2007-I Segregated Portfolio $60,000,000 Variable Rate Notes Due 2047 -- Prior Rating: A3, on review for possible downgrade -- Current Rating: B3, on review for possible downgrade Additionally, Moody's downgraded these notes: Class Description: ECO 2007-II Segregated Portfolio $45,000,000 Variable Rate Notes Due 2047 -- Prior Rating: Ba2, on review for possible downgrade -- Current Rating: Ca Class Description: ECO 2007-III Segregated Portfolio $33,000,000 Variable Rate Notes Due 2047 -- Prior Rating: B2, on review for possible downgrade -- Current Rating: Ca Class Description: ECO 2007-IV Segregated Portfolio $12,000,000 Variable Rate Notes Due 2047 -- Prior Rating: Caa1, on review for possible downgrade -- Current Rating: Ca Class Description: ECO 2007-V Segregated Portfolio $12,000,000 Variable Rate Notes Due 2047 -- Prior Rating: Caa3, on review for possible downgrade -- Current Rating: Ca According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio EIRLES TWO: Eroding Credit Quality Cues Moody's Rating Downgrades ----------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Eirles Two Limited: Class Description: Eirles Two Limited - Series 251 -- Prior Rating: Baa1, on review for possible downgrade -- Current Rating: Ba3, on review for possible downgrade Class Description: Eirles Two Limited - Series 252 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: B1, on review for possible downgrade Class Description: Eirles Two Limited - Series 257 -- Prior Rating: Baa1, on review for possible downgrade -- Current Rating: Ba3, on review for possible downgrade Class Description: Eirles Two Limited - Series 258 -- Prior Rating: Ba1, on review for possible downgrade -- Current Rating: Caa1, on review for possible downgrade Class Description: Eirles Two Limited - Series 259 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: B1, on review for possible downgrade Class Description: Eirles Two Limited - Series 261 -- Prior Rating: A3, on review for possible downgrade -- Current Rating: Ba2, on review for possible downgrade Class Description: Eirles Two Limited - Series 264 -- Prior Rating: Ba2, on review for possible downgrade -- Current Rating: Caa2, on review for possible downgrade Class Description: Eirles Two Limited - Series 265 -- Prior Rating: Ba1, on review for possible downgrade -- Current Rating: Caa1, on review for possible downgrade Class Description: Eirles Two Limited Series 242 -- Prior Rating: Aaa -- Current Rating: A1, on review for possible downgrade Class Description: Eirles Two Limited Series 243 -- Prior Rating: A2, on review for possible downgrade -- Current Rating: Baa1, on review for possible downgrade Class Description: Eirles Two Limited Series 244 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Baa3, on review for possible downgrade Class Description: Eirles Two Limited Series 245 -- Prior Rating: Aa3, on review for possible downgrade -- Current Rating: A3, on review for possible downgrade Class Description: Eirles Two Limited Series 247 -- Prior Rating: A2, on review for possible downgrade -- Current Rating: Baa1, on review for possible downgrade Additionally, Moody's downgraded these notes: Class Description: Eirles Two Limited - Series 266 -- Prior Rating: B1, 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. ENERGAS RESOURCES: Losses Prompt Going Concern Opinion ------------------------------------------------------ Murrell, Hall, McIntosh & Co., PLLP, in Oklahoma City raised substantial doubt about Energas Resources, Inc., ability to continue as a going concern after auditing the company's consolidated financial statements for the fiscal years ended Jan. 31, 2007, and 2006. The auditing firm pointed to the company's recurring losses from operations. For the year ended Jan. 31, 2007, the company reported a $1,516,282 net loss on $644,360 of total revenues as compared with a $1,583,501 net loss on $1,197,252 of total revenues for the fiscal year ended Jan. 31, 2006. At Jan. 31, 2007, the company's balance sheet showed $$6,339,759 in total assets, $1,603,336 in total liabilities, $103,686 in asset retirement obligation, and $4,632,737 in total stockholders' equity. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?29e6 About Energas Resources Based in Oklahoma City, Okla., Energas Resources, Inc. (OTCBB: EGSR) -- http://www.energasresources.com/-- operates, develops, produces, explores and acquires petroleum and natural gas properties in the United States through its wholly owned subsidiaries, A.T. Gas Gathering Systems Inc. and TGC Inc. In addition, the company owns and operates natural gas gathering systems, located in Oklahoma and Kentucky, which serve wells operated by the company for delivery to a mainline transmission system. ENERGY PARTNERS: Closes Sale of Two Shelf Properties for $16.2MM ---------------------------------------------------------------- Energy Partners, Ltd., had completed its sale of two Gulf of Mexico Shelf properties located within its Western offshore area for $16.2 million. As of the effective date, the estimated proved reserves represented less than 1% of the company's proved reserves and a recent average production rate net to the company of less than 2% of fourth quarter 2007 average production. After preliminary closing adjustments for the closing dates of March 26, 2008 and March 27, 2008, the cash proceeds received totaled approximately $15.0 million. Headquartered in New Orleans, Louisiana, Energy Partners Ltd. (NYSE:EPL) -- http://www.eplweb.com-- is an oil and natural gas exploration and production company. The company's operations are concentrated in the gulf of Mexico Shelf, the deepwater gulf of Mexico, as well as the gulf coast onshore region. * * * As reported in the Troubled Company Reporter on March 4, 2008, Standard & Poor's Ratings Services said that ratings on Energy Partners Ltd. (B/Negative/--) would not be immediately affected by several recent developments. The company announced $100 million in noncash, pretax impairment charges, largely related to mechanical failures, early depletion, and production difficulties in fields located in its Western offshore area. Its leverage metrics have weakened year-over-year, with debt per proved barrel currently above $11 on an adjusted basis. And it has seen feeble drilling and reserve replacement results in 2007. As reported in the Troubled Company Reporter on March 3, 2008, Moody's Investors Service downgraded Energy Partners, Ltd.'s Corporate Family Rating to Caa1 from B3, its Probability of Default to Caa1 from B3, and the ratings on its $300 million senior unsecured fixed rate notes and $150 million senior unsecured floating rate notes to Caa2 (LGD 4, 67%) from Caa1 (LGD 4, 65%). The downgrade reflects EPL's continued weak capital productivity, especially as evidenced by its 2007 results, negative sequential quarterly production trends, and continued high financial leverage. The rating outlook remains negative. ENHERENT CORP: December 31 Balance Sheet Upside-Down by $245,000 ---------------------------------------------------------------- enherent Corp.'s balance sheet at Dec. 31, 2007, showed total assets of $10.172 million and total liabilities of $10.417 million, resulting to total capital deficiency of $0.245 million. The company reported its financial results for the fourth quarter of 2007 and the year ended Dec. 31, 2007. Net income decreased by approximately $0.023 million to $0.118 million for the fourth quarter of 2007 as compared to net income of approximately $0.141 million for the comparable quarter of 2006. The decrease in net income resulted from increased operating costs as a result of a severance expense charge of $0.116 million during the quarter. The company reported a net income of approximately $0.412 million for the year ended Dec. 31, 2007, compared with a net loss of approximately $0.298 million for the year ended Dec. 31, 2006. The increase of $0.710 million was due to cost reductions made by the company that resulted in a relative decrease in selling and recruiting payroll costs, general and administrative payroll costs and other operating expenses during the year ended Dec. 31, 2007. "We are proud of what we accomplished this year and are pleased with our full year financial operating results, Pamela Fredette, Chairman, CEO and president, commenting on the financial results for 2007, said. "Notably, as a result of the initiatives we have taken to improve our cost structure over the past few years, we have significantly improved our profitability and are better positioned to react to changes in market conditions." "We look forward to building on this momentum with a strategy focused on organic and acquired growth and improved profitability," Ms. Fredette added. "We continue to review acquisition candidates and pursue alliances with organizations that may create new service possibilities and growth opportunities." Liquidity and Capital Resources At Dec. 31, 2007, the revolving credit facility balance outstanding was $2.825 million. At Dec. 31, 2007, the companys long-term obligations with maturities of less than one year total $3.4 million exclusive of its revolving asset based credit facility with Ableco with a balance of $2.8 million. Cash and cash equivalents were $1.122 million at Dec. 31, 2007, compared to $0.632 million at Dec. 31, 2006. About enherent Corp. Based in New York City, enherent Corp. (OTC BB: ENHT) -- http://www.enherent.com/-- provides information technology services in the U.S. Its services include IT consultative resource and staffing, systems integration, application development, and network and security. The company also distributes computer hardware and software products. The company primarily serves insurance, financial services, banking, retail distribution, apparel, home healthcare, and pharmaceutical industries. EROOMSYSTEM TECHNOLOGIES: Management Raises Substantial Doubt ------------------------------------------------------------- Hansen, Barnett & Maxwell, P.C., in Salt Lake City, Utah, gave a clean opinion on eRoomSystem Technologies, Inc.'s consolidated financial statements for the year ended Dec. 31, 2007. The company's management, however, said, "Although eRoomSystem realized a profit in 2007 as well as in 2006, the company is anticipating decreasing revenue as its existing hotel revenue- sharing and maintenance contracts conclude over the next couple of years. This raises substantial doubt about eRoomSystem's ability to continue as a going concern." Up until the year ended Dec. 31, 2004, the company had suffered recurring losses. During the years ended Dec. 31, 2007, and 2006, the company realized net income of $402,221 and $162,083, respectively, and had total revenues of $1,174,150 and $1,337,485, respectively. During the years ended Dec. 31, 2007, and 2006, the company's operations provided $765,270 and $683,126 of cash, respectively. The company had cash of $2,353,972 as of Dec. 31, 2007. At Dec. 31, 2007, the company had working capital of $2,416,398. At Dec. 31, 2007, the company's balance sheet showed $3,160,762 in total assets, $130,821 in total liabilities, and $3,029,941 in total stockholders' equity. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?29f0 About eRoomSystem Based in Lakewood, N.J., eRoomSystem Technologies, Inc. (OTCB: ERMS) -- http://www.eroomsystem.com/-- develops and installs the eRoomSystem, an in-room computer platform and communications network for the lodging and hotel industry worldwide. The eRoomSystem is a computerized platform and processor-based system designed to collect and control data in eRoomServ refreshment centers. FIRST FRANKLIN: Moody's Cuts 46 Tranches' Ratings From Seven Deals ------------------------------------------------------------------ Moody's Investors Service downgraded the ratings of forty six tranches issued in seven transactions from the First Franklin Mortgage Loan Trust 2005 shelf. The collateral backing each tranche consists primarily of first lien adjustable-rate and fixed-rate subprime mortgage loans. The deals being reviewed have experienced an increasing proportion of severely delinquent loans. Timing of losses and in some cases, pending stepdown, will cause the protection available to the subordinated bonds to be diminished. Complete rating actions are: Issuer: First Franklin Mortgage Loan Trust 2005-FF1 -- Cl. M-2, downgraded from A2 to Baa2 -- Cl. M-3, downgraded from A3 to Baa3 -- Cl. B-1, downgraded from Baa1 to Ba2 -- Cl. B-2, downgraded from Baa2 to Ba3 -- Cl. B-3, downgraded from Baa3 to B1 -- Cl. B-4, downgraded from Ba1 to Caa2 Issuer: First Franklin Mortgage Loan Trust 2005-FF2 -- Cl. M-4, downgraded from A1 to A3 -- Cl. M-5, downgraded from A2 to Baa1 -- Cl. M-6, downgraded from A3 to Baa3 -- Cl. B-1, downgraded from Baa1 to Ba2 -- Cl. B-2, downgraded from Baa2 to Ba3 -- Cl. B-3, downgraded from Baa3 to B2 -- Cl. B-4, downgraded from Ba1 to Caa2 -- Cl. B-5, downgraded from Ba2 to Caa3 Issuer: First Franklin Mortgage Loan Trust 2005-FF3 -- Cl. M-3, downgraded from Aa3 to A2 -- Cl. M-4, downgraded from A1 to Baa1 -- Cl. M-5, downgraded from A2 to Baa2 -- Cl. M-6, downgraded from A3 to Baa3 -- Cl. M-7, downgraded from Baa1 to Ba3 -- Cl. M-8, downgraded from Baa2 to B2 -- Cl. M-9, downgraded from Baa3 to Caa2 -- Cl. B-1, downgraded from Ba1 to Caa3 Issuer: First Franklin Mortgage Loan Trust 2005-FF4 -- Cl. M-5, downgraded from A3 to Baa2 -- Cl. M-6, downgraded from Baa1 to Ba1 -- Cl. M-7, downgraded from Baa2 to Ba2 -- Cl. M-8, downgraded from Baa3 to B3 Issuer: First Franklin Mortgage Loan Trust 2005-FF6 -- Cl. M-5, downgraded from A3 to Baa2 -- Cl. B-1, downgraded from Baa1 to Baa3 -- Cl. B-2, downgraded from Baa2 to Ba2 -- Cl. B-3, downgraded from Baa3 to B1 -- Cl. B-4, downgraded from Ba1 to Caa1 Issuer: First Franklin Mortgage Loan Trust 2005-FFH1 -- Cl. M-4, downgraded from A1 to A3 -- Cl. M-5, downgraded from A2 to Baa2 -- Cl. M-6, downgraded from A3 to Ba1 -- Cl. B-1, downgraded from Baa1 to B1 -- Cl. B-2, downgraded from Baa2 to Ca -- Cl. B-3, downgraded from Baa3 to C -- Cl. B-4, downgraded from Ba1 to C Issuer: First Franklin Mortgage Loan Trust 2005-FFH2 -- Cl. M-4, downgraded from A1 to Baa1 -- Cl. M-5, downgraded from A2 to Baa3 -- Cl. M-6, downgraded from A3 to Ba3 -- Cl. M-7, downgraded from Baa1 to B3 -- Cl. M-8, downgraded from Baa2 to Caa2 -- Cl. M-9, downgraded from Baa3 to Ca -- Cl. B-1, downgraded from Ba1 to C -- Cl. B-2, downgraded from Ba2 to C FOAMEX INT'L: December 30 Balance Sheet Upside-Down by $298MM ------------------------------------------------------------- Foamex International Inc.'s balance sheet at Dec. 30, 2007, showed total assets of $433.7 million and total liabilities of $731.8 million, resulting to total shareholders' deficit of $298.1 million. The company reported financial results for the fourth quarter and fiscal year, which ended on Dec. 30, 2007. Net loss for the fourth quarter was $35.6 million compared to net income of $1.1 million in the fourth quarter of 2006. Interest expense for the fourth quarter of 2007 was $14.4 million. Net loss for 2007 was $46.7 million compared to net income of $12.3 million in 2006. "This year we made significant progress restructuring and streamlining operations; we took actions to reduce excess capacity and improve plant efficiencies, while significantly lowering overheadsm," Jack Johnson, president and chief executive officer, said. "We improved cash flow through working capital reductions and asset sales, allowing us to reduce debt by approximately $95.0 million, since emerging from bankruptcy in February 2007, thus lowering debt levels to $534.1 million at year-end." "Some of our more notable accomplishments include: selling our 70% equity interest in Foamex Asia; consolidating our Eddystone, PA and Fort Wayne, Indiana manufacturing facilities; selling the Fairless Hills, Pennsylvania, Dallas, Texas, and Orlando, Florida carpet cushion facilities; lowering management compensation costs; and recently, launching new products at ISPA," Mr. Johnson continued. "Although we are operating in a sluggish economy, we remain confident in our strategic plan, which is to continue de-levering the balance sheet and grow the business by exploiting our technological advantage in the flexible polyurethane market and expanding globally," Mr. Johnson added. "The recently disclosed Rights Offering and Second Lien Offering demonstrate the commitment of both the management team and significant equityholders to position the company to achieve its strategic growth plan." Liquidity and Capital Resources Cash and cash equivalents were $5.2 million at Dec. 30, 2007, compared to $6.0 million at Dec. 31, 2006. Working capital at Dec. 30, 2007, was $108.2 million and the current ratio was 1.69 to 1 compared to working capital at Dec. 31, 2006 of $24.0 million and a current ratio of 1.08 to 1. Total debt and revolving credit borrowings at Dec. 30, 2007 was $534.1 million, a $109.6 million decrease from Dec. 31, 2006, including prepayments of $80.0 million on the first lien term loan. As of Dec. 30, 2007, there were revolving credit borrowings of $7.9 million under the Revolving Credit Facility. Revolving credit borrowings at Dec. 30, 2007, reflect working capital requirements. During 2007, the company consolidated the operations of its Eddystone, Pennysylvania manufacturing facility and its Fort Wayne, Indiana manufacturing facility. The company intends to sell the Eddystone, Pennsylvania facility and has included the $5.0 million net book value of the assets as held for sale in the accompanying consolidated balance sheet as of Dec. 30, 2007. About Foamex International Inc. Headquartered in Linwood, Pennsylvania, Foamex International Inc. (FMXIQ.PK) -- http://www.foamex.com/-- produces cushioning for bedding, furniture, carpet cushion and automotive markets. The company also manufactures polymers for the industrial, aerospace, defense, electronics and computer industries. The company and eight affiliates filed for chapter 11 protection on Sept. 19, 2005 (Bankr. Del. Case Nos. 05-12685 through 05- 12693). As of July 3, 2005, the Debtors reported $620,826,000 in total assets and $744,757,000 in total debts. On Feb. 2, 2007, the Court confirmed the Debtors' Second Amended Joint Plan of Reorganization. The Plan of Reorganization of Foamex International Inc. became effective and the company emerged from chapter 11 bankruptcy protection on Feb. 12, 2007. FOCUS ENHANCEMENTS: Burr Pilger Raises Substantial Doubt -------------------------------------------------------- Burr, Pilger & Mayer LLP in San Jose raised substantial doubt about Focus Enhancements, Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2007, and 2006. The auditing firm pointed to the company's recurring losses from operations, net capital deficiency and accumulated deficit. For the year ended Dec. 31, 2007, the company posted a $17,361,000 net loss on $29,971,000 of net revenues as compared with a $15,923,000 net loss on $37,478,000 of net revenues for the same period in 2006. At Dec. 31, 2007, the company's balance sheet showed $25,920,000 in total assets, $24,863,000 in total liabilities, and $1,057,000 in total stockholders' equity. The company's balance sheet at Dec. 31, 2007, showed strained liquidity with $11,336,000 in total current assets available to pay $13,370,000 in total current liabilities. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?29e4 Subsequent Events Focus received on Feb. 11, 2008, gross proceeds of approximately $9.3 million through the sale of additional indebtedness under revised terms of its existing Jan. 24, 2006, Senior Secured Convertible Note Purchase Agreement. Prior investors under the original agreement and new investors amended the Original Agreement through an "Amended and Restated Senior Secured Note Purchase Agreement". The Amended Agreement increases the amounts outstanding under the Original Agreement from $11.5 million (after amendments to date) to $20.8 million in new senior secured notes, amends the terms of the Notes so they are no longer convertible into company common stock, and issues to the holders of the Notes a total of 26 million warrants under which the holders have the right to purchase one share of the company's common stock for $0.80 per warrant share. The Notes mature on Jan. 1, 2011, and initially bear interest at a 12% annual rate, increasing to 15% on Oct. 1, 2008, with payment dates on June 30 and Dec. 30 of each year the Notes remain outstanding. The Notes are collateralized by all of the assets of the company. The transaction closed on Feb. 11, 2008. No placement agent fee or commissions are payable in connection with the Amended Agreement. Under the Amended Agreement, the company may, in its discretion, elect to pay interest due on June 30, 2008, and Dec. 30, 2008, in cash or by issuing additional Notes in the full amount of such interest payment, if there has been no event of default. If the company elects to make the interest payments by issuance of additional Notes, this would result is the additional issuance of up to approximately $2,600,000 of Note principal and approximately 3.3 million Warrants (at the same exercise price of $0.80 per share). About Focus Enhancements Headquartered in Campbell, Calif., Focus Enhancements, Inc. (NASDAQ: FCSE) -- http://www.Focusinfo.com/-- designs world class-solutions in advanced, proprietary video and wireless video technologies. The company's Semiconductor Group develops wireless IC chip set based on WiMedia UWB standard and design as well as markets portable ICs to the video convergence, portable media, navigation systems and smartphone markets. The company's System Group develops video products for the digital media markets, with customers in the broadcast, video production, digital signage and digital asset management markets. FORT SHERIDAN: Three Classes of Notes Get Moody's Low-B Ratings --------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Fort Sheridan ABS CDO, Ltd.: Class Description: $52,000,000 Class B Third Priority Secured Floating Rate Notes Due 2041 -- Prior Rating: Aa2 -- Current Rating: A1, on review for possible downgrade Class Description: $13,000,000 Class C-1 Mezzanine Secured Floating Rate Notes Due 2041 -- Prior Rating: Baa2 -- Current Rating: Ba1, on review for possible downgrade Class Description: $2,000,000 Class C-2 Mezzanine Secured Fixed Rate Notes Due 2041 -- Prior Rating: Baa2 -- Current Rating: Ba2, on review for possible downgrade Class Description: $4,000,000 Class C-3 Mezzanine Secured Fixed Rate Notes Due 2041 -- Prior Rating: Baa2 -- 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. GENER8XION ENTERTAINMENT: Executive Officers Agree to 50% Pay Cut ----------------------------------------------------------------- Gener8Xion Entertainment Inc. made the following disclosures on April 3, 2008: a) On March 28, 2008, Gener8Xion Entertainment Inc. and its Board of Directors appointed Carlos D. De Mattos as interim chief financial Officer to replace Marilyn Beaubien who has resigned as chief financial officer as of April 1, 2008. Mr. De Mattos is also the president and a board member of the company. Concurrent with the appointment of the new interim chief financial officer, the company and its Board of Directors has also appointed Richard P. Towne, Esq. as the new corporate secretary replacing Ms. Beaubien. Mr. Towne has been the in house lawyer for the company for the past three years. b) On March 28, 2008, all executive officers agreed to and accepted Managements recommendation, which was approved by the Board of Directors to reduce all executive officers salaries by fifty (50%) commencing April 1, 2008. The agreed to reductions in the salaries of the executive officers were part of a program of cost reductions instituted by the company. About Gener8Xion Entertainment Based in Burbank, California, Gener8Xion Entertainment Inc. (OTC BB: GNXE.OB) -- http://www.8x.com/-- is an integrated media company engaged in various operating activities including film and television production and distribution, sales and rentals of film and video equipment, systems integration and studio facility management. Gener8Xion Entertainment Inc.'s consolidated balance sheet at Jan. 31, 2008, showed $2,841,582 in total assets and $3,829,777 in total liabilities, resulting in a $988,195 total stockholders' deficit. Going Concern Disclaimer As reported in the Troubled Company Reporter on Feb. 21, 2008, Los Angeles-based Farber Hass Hurley & McEwen LLP expressed substantial doubt about Gener8Xion Entertainment Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Oct. 31, 2007. The auditing firm's pointed to the company's operating losses since inception. GMAC LLC: Moody's Comments on $1.2BB Capital Injection to ResCap ---------------------------------------------------------------- Residential Capital LLC's announcement that it has received a $1.2 billion capital injection from its parent GMAC LLC does not impact the ratings of either entity. The $1.2 billion capital injection is equal to the face amount of ResCap debt purchased in the open market by GMAC with an estimated current market value of $607 million and exchanged for $607 million newly created ResCap preferred units. GMAC also disclosed that it has purchased an additional $340 million face value of ResCap debt currently valued at $266 million that they may contribute to ResCap. The senior unsecured rating of GMAC LLC is B1 and ResCap B2. The rating outook for both firms is negative. The downgrade of GMAC's rating on Feb. 5, 2008 to B1 with a negative outlook contemplated that the company would likely continue to provide capital to support ResCap in the near term. The cash and capital cost to GMAC of providing the $1.2 billion capital injection to ResCap, and the $340 million of additional debt purchased but not contributed to ResCap, is within Moody's expectation of the amount of support GMAC would provide to ResCap. In regards to ResCap, the downgrade to B2 on Feb. 5, 2008 incorporated the possibility that the company would receive sizable support from its parent. Moody's still believes that ResCap's parents may have a limited tolerance for supporting ResCap if ResCap's performance and condition fail to meet management's expectations for improvement during the first half of 2008. Additionally, Moody's notes that the form of the capital injection does not improve ResCap's short term liquidity profile. As stated above, the ResCap rating outlook remains negative. GSAMP TRUST: Moody's Downgrades Ratings on Four Classes of Certs. ----------------------------------------------------------------- Moody's Investors Service downgraded four certificates issued by GSAMP Trust 2005-S2. The transaction is backed by second lien loans. The certificates were downgraded because the bonds' credit enhancement levels, including excess spread and subordination were too low compared to the current projected loss numbers at the previous rating levels. The actions take into account the continued and worsening performance of transactions backed by closed-end-second and home equity line of credit collateral. Substantial pool losses of over the last few months have eroded credit enhancement available to the mezzanine and senior certificates. Despite the large amount of write-offs due to losses, delinquency pipelines have remained high as borrowers continue to default Complete rating actions are: Issuer : GSAMP Trust 2005-S2 -- Cl. M-2, Downgraded to Ba2 from A2 -- Cl. M-3, Downgraded to B2 from Ba1 -- Cl. M-4, Downgraded to Caa1 from Ba3 -- Cl. B-1, Downgraded to Caa3 from B1 GSV INC: Recurring Losses Prompt UHY LLP's Going Concern Doubt -------------------------------------------------------------- UHY LLP raised substantial doubt about GSV Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm said that the company has incurred recurring operating losses, and it has negligible working capital as of Dec. 31, 2007. The company's expected future sources of revenue will be derived from its investments in oil and gas wells. However, the attainment of profitability from these investments is not assured. The company will be required to obtain financing to fund drilling and development to recover its investment in geologic studies and to pay certain indebtedness as it becomes due. In addition, the discovery of proved reserves in properties under evaluation is not assured. At Dec. 31, 2007, the company's balance sheet showed $2,980,654 in total assets, $1,062,530 in total liabilities, and $1,918,124 in total stockholders' equity. The company had $38,581,204 in accumulated deficit at Dec. 31, 2007. The company's balance sheet at Dec. 31, 2007, showed strained liquidity with $568,355 in total current assets available to pay $884,405 in total current liabilities. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?29e3 Based in Westport, Conn., GSV Inc. (OTC BB: GSVI) -- http://www.gsv.com/-- manages investments in oil and gas wells in Louisiana and Texas. The company also has limited Internet- related investments. HILLCREST CDO: Poor Credit Quality Spurs Moody's Rating Reviews --------------------------------------------------------------- Moody's Investors Service placed on review for possible downgrade the ratings on these notes issued by Hillcrest CDO I Ltd: Class Description: $21,250,000 Class A-2 Floating Rate Senior Secured Notes Due 2039 -- Prior Rating: Aaa -- Current Rating: Aaa, on review for possible downgrade Class Description: $33,350,000 Class B-1 Floating Rate Senior Secured Notes Due 2039 -- Prior Rating: Aa2 -- Current Rating: Aa2, on review for possible downgrade Class Description: $1,500,000 Class B-2 Fixed Rate Senior Secured Notes Due 2039 -- Prior Rating: Aa2 -- Current Rating: Aa2, on review for possible downgrade Class Description: $9,500,000 Class C Floating Rate Senior Subordinate Secured Deferrable Notes Due 2039 -- Prior Rating: A2 -- Current Rating: A2, on review for possible downgrade Class Description: $4,000,000 Class 1 Composite Notes -- Prior Rating: Baa2 -- Current Rating: Baa2, on review for possible downgrade Class Description: $9,000,000 Class 2 Composite Notes -- Prior Rating: Baa2 -- Current Rating: Baa2, on review for possible downgrade Moody's also downgraded and left on review for possible further downgrade the ratings on these notes: Class Description: $19,400, 000 Class D Floating Rate Senior Subordinate Secured Deferrable Notes Due 2039 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ba2, on review for possible downgrade Class Description: $21,250, 000 Class E Subordinate Secured Notes Due 2039 -- Prior Rating: B2, on review for possible downgrade -- Current Rating: Caa2, on review for possible downgrade According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. INDYMAC HOME: Moody's Junks Ratings on Six Classes of Certificates ------------------------------------------------------------------ Moody's Investors Service downgraded seven certificates and placed on review for further possible downgrade one certificate issued by IndyMac Home Equity Mortgage Loan Asset-Backed Trust, INDS 2006-A. The transaction is backed by second lien loans. The certificates were downgraded because the bonds' credit enhancement levels, including excess spread and subordination were too low compared to the current projected loss numbers at the previous rating levels. The actions take into account the continued and worsening performance of transactions backed by closed-end-second and home equity line of credit collateral. Substantial pool losses of over the last few months have eroded credit enhancement available to the mezzanine and senior certificates. Despite the large amount of write-offs due to losses, delinquency pipelines have remained high as borrowers continue to default. Complete rating actions are: Issuer: IndyMac Home Equity Mortgage Loan Asset-Backed Trust, INDS 2006-A -- Cl. A, Downgraded to Ba3 from Aa1; Placed under Review for further Possible Downgrade -- Cl. M-1, Downgraded to Caa1 from Aa2 -- Cl. M-2, Downgraded to Caa3 from Baa3 -- Cl. M-3, Downgraded to Ca from Ba2 -- Cl. M-4, Downgraded to C from B2 -- Cl. M-5, Downgraded to C from Caa2 -- Cl. M-6, Downgraded to C from Ca INTREPID TECH: Inks Securities Purchase Agreement with YA Global ---------------------------------------------------------------- On March 28, 2008, Intrepid Technology and Resources Inc. entered into a Securities Purchase Agreement with YA Global Investments L.P., fka. Cornell Capital Partners. Pursuant to the agreement, the company sold to YA Global up to $585,000 of Secured Convertible Debentures and warrants to acquire up to 4,200,000 additional shares of common stock, of which $585,000 was funded on March 28, 2008. The debentures are convertible into shares of the company's common stock, par value $0.005 per share. The debentures shall accrue interest at a rate equal to eleven percent (11%) per annum and shall mature, unless extended by the holder in accordance with the terms of the debentures, on March 28, 2010. The debentures are secured by a a security interest in all of the assets of the company and of each of the company's subsidiaries and a Guaranty, dated March 28, 2008, in favor of YA Global by each subsidiary of the company. Within thirty (30) days after March 28, 2008, the company will will provide YA Global a second position security interest in such property located at (a) 501 West Broadway Suite 200, Idaho Falls, Idaho, (b) 675 North 700 East, Rupert, Idaho and (c) 1449 East 3150 South, Wendell, Idaho. On March 28, 2008, the company and YA Global Investor amended the warrant to purchase 5,000,000 shares of the company's common stock issued to YA Global on Dec. 1, 2005, by resetting the exercise price of the warrant from $0.055 to $0.01. A full-text copy of the Securities Purchase Agreement, dated March 28, 2008, is available for free at: http://researcharchives.com/t/s?2a11 About Intrepid Technology Headquartered in Idaho Falls, Idaho, Intrepid Technology and Resources Inc. (OTC BB: IESV.OB) -- http://www.intrepid21.com/-- is an application innovator in alternative energy technology and production and of biogas products and services designed to assist in worldwide energy independence, reduce pollution and carbon emissions from renewable agriculture feedstock and industrial and agriculture waste materials. At Dec. 31, 2007, the company's consolidated balance sheet showed $13,923,395 in total assets, $13,732,974 in total liabilities, and $190,421 in total stockholders' equity. Going Concern Doubt As reported in the Troubled Company Reporter on Oct. 10, 2007, Logan, Utah-based Jones Simkins PC expressed substantial doubt about Intrepid Technology and Resources Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended June 30, 2007. The auditing firm reported that the company has incurred recurring losses, has negative working capital, and has negative cash flows from operations. LAKESIDE CDO I: Moody's Reviews 'Ba1' Notes Rating for Likely Cut ----------------------------------------------------------------- Moody's Investors Service placed on review for possible downgrade the ratings on these notes issued by Lakeside CDO I, LTD.: Class Description: $152,000,000 Class A-2 Second Priority Senior Secured Floating Rate Notes Due 2038 -- 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: $9,000,000 Class B Third Priority Senior Secured Floating Rate Notes Due 2038 -- 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. LAKESIDE CDO II: Moody's Cuts Ratings on $15 Mil. Notes to 'Ba3' ---------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Lakeside CDO II, Ltd: Class Description: $15,000,000 Class B Third Priority Secured Floating Rate Notes Due 2040 -- Prior Rating: A3 -- Current Rating: Baa1, on review for possible downgrade Class Description: $15,000,000 Class C Mezzanine Secured Floating Rate Notes Due 2040 -- Prior Rating: Baa2 -- Current Rating: Ba3, on review for possible downgrade According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. LOUISIANA RIVERBOAT: Files List of 30 Largest Unsecured Creditors ----------------------------------------------------------- Roadrunner River Resort, LLC submitted to the U.S. Bankruptcy Court for the Western District of Louisiana its list of 30 largest unsecured creditors, disclosing: Entity Claim Amount ------ ------------ IGT $327,433 4012 Solutions Center Chicago, IL 60677-400 Merrill Corp. $230,559 311 South Wacker Drive, Suite 1800 Chicago, IL 60605-8620 Isle of Capri $100,000 to 600 Emerson, Suite 300 $1,000,000 St. Louis, MO 63141 Moody's Investors Service $125,000 Bonomo Builders $116,979 Shuffle Master, Inc. $99,849 Standard & Poors $93,500 Ernst & Young $68,840 Conco Food Service $59,654 Entergy Corp. $54,625 SWEPCO $51,619 Leah Hall $46,500 WMS Gaming $45,308 Sysco Food Services $34,314 Joseph Bosley $33,920 Paragon Press $33,880 Grandma's Best, LLC $33,411 Guest Supply $29,166 Santa Maria Wholesale $23,877 Lamar Advertising Co. $23,639 Centerpoint $22,934 Tempower Temporary Services $18,689 Farmers Seafood Co., Inc. $17,557 U.S. Foodservice, Inc. $17,557 Eagle Distributing, Inc. $15,567 City of Bossier-Utilities $14,524 Global Payments, Inc. $12,604 Buckhead Beef Co. $12,453 William Curran $10,749 G&G Distributors $10,593 Headquartered in Bossier City, Louisiana, Louisiana Riverboat Gaming Partnership, which does business as Diamond Jacks Casino & Resort, and its debtor-affiliates-- http://www.islecorp.com/ -- operate casinos and hotels. The companies filed for Chapter 11 protection on March 11, 2008 (Bankr. W.D. La. Case No. 08-10824). Tristan E. Manthey, Esq. and William H. Patrick, III, Esq. at Heller Draper Hayden Patrick and Horn represent the Debtors. When they filed for protection from its creditors, the companies listed consolidated assets and debts both between $100 million to $500 million. LUMINENT MORTGAGE: Grant Thorton Raises Substantial Doubt --------------------------------------------------------- Grant Thornton LLP in Philadelphia raised substantial doubt about Luminent Mortgage Capital, Inc.'s ability to continue as a going concern after it audited the company's consolidated financial statements for the year ended Dec. 31, 2007. Grant Thornton said Luminent Mortgage has lost $721 million for the year ended Dec. 31, 2007, which included $481.7 million in impairment losses on mortgage-backed securities. The company also recorded $21.3 million in corporate, state and U.S. federal income taxes due to its inability to meet the threshold for tax benefit recognition as it related to its qualification as a REIT. Additionally, the company is in default under certain financing arrangements. Default and Waiver In September 2007, the company entered into a definitive credit agreement with Arco Capital Corporation Ltd. that was amended in December 2007 that provides for a revolving credit facility in the amount of the lesser of $16 million or 85% of eligible asset values as defined in the definitive credit agreement. The line of credit matures on Sept. 26, 2012, and undrawn portions of the facility can be cancelled at the company's option. The line of credit bears interest at LIBOR plus 4.00%. A commitment fee of 0.50% is payable quarterly on the daily average amount of the unused line of credit. The facility will be repaid from net proceeds in excess of $250,000 from the sale, transfer or disposition of any property or asset of the company or from 75% of the company's annual excess cash amount as defined in the agreement. The line of credit is secured by all of the company's assets that are not subject to a previous security interest. As of Dec. 31, 2007, the company was not in compliance with certain covenants required by this agreement; however, Arco has provided the company with a waiver and has continued to allow the company to maintain the lines of credit. Financials For the year ended Dec. 31, 2007, the company posted a $720,997,000 net loss on $520,878,000 of total interest income as compared with $46,797,000 of net income on $357,137,000 of total interest income for the same period ended Dec. 31, 2006. At Dec. 31, 2007, the company's consolidated balance sheet showed $4,721,918,000 in total assets and $5,031,943,000 in total liabilities, resulting in a $310,025,000 stockholders' deficit. The company's accumulated distributions in excess of accumulated earnings at Dec. 31, 2007, increased more than 7x to $865,098,000 from $115,827,000 at Dec. 31, 2006. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?29de About Luminent Mortgage San Francisco-based Luminent Mortgage Capital Inc. (NYSE: LUM) -- http://www.luminentcapital.com/-- is a real estate investment trust, or REIT. Luminent is an asset management company that invests in prime whole loans, U.S. agency and other highly-rated, single-family, adjustable-rate, hybrid adjustable-rate and fixed- rate mortgage-backed securities, which it acquires in the secondary market. MAAX HOLDINGS: Moody's Withdraws Junk Ratings for Business Reasons ------------------------------------------------------------------ Moody's Investors Service has withdrawn all ratings on MAAX Holdings, Inc. and MAAX Corporation for business reasons. These ratings were withdrawn on MAAX Holdings, Inc.: -- Corporate Family Rating, Ca -- Probability of Default Rating, Ca -- Speculative Grade Liquidity Rating, SGL-4 -- $152 million 11.57% senior unsecured discount notes due 2012, C (LGD6, 93%) This rating was withdrawn on MAAX Corporation: -- $150 million 9.75% senior subordinated notes due 2012, Ca (LGD5, 73%) MAAX Holdings, Inc., headquartered in Quebec, is a manufacturer of bathroom products and spas for the residential market. For the twelve months ended Nov. 30, 2007, the company reported revenues of $411 million and a net loss of $180 million. MERISANT COMPANY: Moody's Withdraws 'B3' Ratings on Proposed Loan ----------------------------------------------------------------- Moody's Investors Service withdrew the ratings on Merisant Company's previously proposed new $35 million bank revolving credit agreement and $210 million bank term loan, following the company's announcement that it had withdrawn the transaction due to an inability to obtain favorable financing terms in an adverse market. The withdrawn transaction was to have refinanced the company's existing bank credit facilities. Moody's affirmed Merisant's other ratings, including its corporate family rating of Caa3 and its probability of default rating of Caa3. The rating outlook remains stable. Ratings withdrawn: Merisant Company -- Previously proposed new $35 million senior secured revolving credit agreement at B3 (LGD2,16%) -- Previously proposed new $210 million senior secured term loans at B3 (LGD2,16%) Ratings affirmed: Merisant Worldwide, Inc. -- Corporate family rating at Caa3 -- Probability of default rating at Caa3 -- $137 million senior subordinated discount notes maturing May 2014 at Ca (LGD6,91%) Merisant Company -- $35 million first lien senior secured revolving credit expiring in January 2009 at B3 (LGD2,16%) -- $190 million first lien senior secured Term Loan B maturing in January 2010 at B3 (LGD2, 16%) -- $15.7 million (original EU 50 million) 1st lien senior secured Term Loan A maturing in January 2009 at B3 (LGD2, 16%) -- $225 million senior subordinated notes maturing in July 2013 at Ca (LGD4, 63%) The affirmation of Merisant's existing ratings is based on the greater stability in the company's operating performance. Reported operating profit margin in each of the first three quarters of fiscal 2007 was stronger than in the same period in the prior year, even when excluding $30 million in other income in the second quarter of fiscal 2007. Profitability has benefited from supply chain programs to streamline manufacturing. Cost structure has also been helped by the current excess of global aspartame supply. Further cost savings and the leveraging of manufacturing capacity through the production of private label goods represent opportunities to enhance profitability, while greater international expansion could boost sales over the intermediate term. Merisant is anticipated to be able to fund working capital, capital expenditures, and modest term debt repayments with cash on hand ($51 million at Dec. 31, 2007), its $35 million revolving credit agreement, and modest operating cash flow. Merisant's Caa3 corporate family rating reflects the company's very heavy debt burden relative to its earnings and cash flow and the likelihood, in Moody's view, that the company might need to restructure its debt in order to be able to meet fierce competition and to invest in growth opportunities. The rating outlook is stable, given that the current corporate family rating adequately captures debt recovery expectations for the enterprise. Headquartered in Chicago, Merisant Worldwide, Inc. is a leading global producer and marketing of low-calorie tabletop sweeteners. Its premium-priced brands are Equal and Canderel, which are sweetened with aspartame. Merisant has an estimated 21% dollar share of the global retail market for low-calorie tabletop sweeteners, and sales of approximately $290 million for the fiscal year ended Dec. 31, 2007. MERRILL LYNCH: 52 Tranches Acquire Moody's Rating Downgrades ------------------------------------------------------------ Moody's Investors Service downgraded the ratings of 52 tranches from 12 Alt-A transactions issued by Merrill Lynch. Twenty tranches remain on review for possible further downgrade. Additionally, 56 tranches were placed on review for possible downgrade. The collateral backing these transactions consists primarily of first-lien, fixed and adjustable-rate, Alt-A mortgage loans. The ratings were downgraded, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. The actions described below are a result of Moody's on-going review process. Complete rating actions are: Merrill Lynch Alternative Note Asset Trust, Series 2007-A1 -- Cl. A-2A, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-2B, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-2C, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to B3 from Aa1; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to B3 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M-3, Downgraded to B3 from Aa3; Placed Under Review for further Possible Downgrade -- Cl. M-4, Downgraded to Caa1 from Baa3; Placed Under Review for further Possible Downgrade -- Cl. M-5, Downgraded to Ca from Ba2 -- Cl. M-6, Downgraded to Ca from Ba3 -- Cl. B-1, Downgraded to Ca from Caa1 -- Cl. B-2, Downgraded to Ca from Caa2 Merrill Lynch Alternative Note Asset Trust, Series 2007-A2 -- Cl. A-3A, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-3B, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-3C, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to B3 from Aa1; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to B3 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M-3, Downgraded to B3 from Aa3; Placed Under Review for further Possible Downgrade -- Cl. M-4, Downgraded to Ca from Ba1 -- Cl. M-5, Downgraded to Ca from Ba3 -- Cl. M-6, Downgraded to Ca from B3 -- Cl. B-1, Downgraded to Ca from Caa1 -- Cl. B-2, Downgraded to Ca from Caa2 Merrill Lynch Alternative Note Asset Trust, Series 2007-A3 -- Cl. A-2A, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-2B, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-2C, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to B2 from Aa1; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to B3 from Aa1; Placed Under Review for further Possible Downgrade -- Cl. M-3, Downgraded to B3 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M-4, Downgraded to B3 from Aa3; Placed Under Review for further Possible Downgrade -- Cl. M-5, Downgraded to Ca from Ba2 -- Cl. M-6, Downgraded to Ca from B1 -- Cl. B-1, Downgraded to Ca from Caa2 -- Cl. B-2, Downgraded to Ca from Caa3 Merrill Lynch Alternative Note Asset Trust, Series 2007-F1 -- Cl. 1-A1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1-A2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A3, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A4, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A5, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A6, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A7, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A8, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A9, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A10, Placed on Review for Possible Downgrade, currently Aaa -- Cl. PO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IO-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IO-2, Placed on Review for Possible Downgrade, currently Aaa Merrill Lynch Mortgage Investors Trust 2005-A6 -- Cl. M-1, Downgraded to Aa3 from Aa2 -- Cl. M-2, Downgraded to Ba1 from A2 -- Cl. B-1, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade -- Cl. B-2, Downgraded to B3 from Baa3; Placed Under Review for further Possible Downgrade Merrill Lynch Mortgage Investors Trust 2005-A8 -- Cl. B-2, Downgraded to Ba1 from Baa3 Merrill Lynch Mortgage Investors Trust 2006-A1 -- Cl. I-A2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. II-A2, Placed on Review for Possible Downgrade, currently Aaa Merrill Lynch Mortgage Investors Trust 2006-A2 -- Cl. M-1, Downgraded to Baa3 from Aa2 -- Cl. M-2, Downgraded to B2 from A3; Placed Under Review for further Possible Downgrade -- Cl. M-3, Downgraded to Ca from Ba2 Merrill Lynch Mortgage Investors Trust 2006-A4 -- Cl. M-1, Downgraded to B2 from Aa2 -- Cl. M-2, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade -- Cl. M-3, Downgraded to Ca from B1 -- Cl. I-A, Placed on Review for Possible Downgrade, currently Aaa -- Cl. II-A, Placed on Review for Possible Downgrade, currently Aaa -- Cl. III-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IV-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IV-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. V-A, Placed on Review for Possible Downgrade, currently Aaa -- Cl. X-A, Placed on Review for Possible Downgrade, currently Aaa Merrill Lynch Mortgage Investors Trust 2006-AF2 -- Cl. MF-2, Downgraded to Baa1 from A2 -- Cl. MF-3, Downgraded to Ba3 from Baa2 -- Cl. MV-2, Downgraded to A3 from Aa2 -- Cl. MV-3, Downgraded to Baa3 from Aa3 -- Cl. MV-4, Downgraded to B1 from A2 -- Cl. MV-5, Downgraded to B2 from A3; Placed Under Review for further Possible Downgrade -- Cl. MV-6, Downgraded to B2 from Baa1; Placed Under Review for further Possible Downgrade -- Cl. BV-1, Downgraded to B2 from Baa3; Placed Under Review for further Possible Downgrade -- Cl. BV-2, Downgraded to Ca from Ba1 -- Cl. BV-3, Downgraded to Ca from Ba2 Merrill Lynch Mortgage Investors Trust 2007-AF1 -- Cl. 1AF-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1AF-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1AF-4, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1AF-5, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1AF-6, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1AF-7, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1AF-8, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1AF-10, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1AF-11, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1AF-12, Placed on Review for Possible Downgrade, currently Aaa -- Cl. AV-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2AF-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2AF-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. MV-1, Downgraded to B1 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. MV-2, Downgraded to Ca from B1 -- Cl. MV-3, Downgraded to Ca from Caa2 -- Cl. F-PO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. F-IO, Placed on Review for Possible Downgrade, currently Aaa Merrill Lynch Mortgage Investors Trust Series 2006-AF1 -- Cl. AF-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. AF-2A, Placed on Review for Possible Downgrade, currently Aaa -- Cl. AF-2B, Placed on Review for Possible Downgrade, currently Aaa -- Cl. AF-2C, Placed on Review for Possible Downgrade, currently Aaa -- Cl. AF-3A, Placed on Review for Possible Downgrade, currently Aaa -- Cl. AF-3B, Placed on Review for Possible Downgrade, currently Aaa -- Cl. MF-1, Downgraded to Ba2 from Aa2 -- Cl. MF-2, Downgraded to B1 from Baa3; Placed Under Review for further Possible Downgrade -- Cl. MF-3, Downgraded to Ca from B1 -- Cl. MV-3, Downgraded to Ba1 from Baa2 -- Cl. PO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. IO, Placed on Review for Possible Downgrade, currently Aaa MICROFIELD GROUP: Liquidity Concerns Prompt Substantial Doubt ------------------------------------------------------------- RBSM LLP in McLean, Va., raised substantial doubt about Microfield Group, Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the fiscal years ended Dec. 29, 2007, and Dec. 30, 2006. The auditing firm said Microfield Group is experiencing difficulty in generating sufficient cash flow to meet its obligations and sustain its operations. For the year ended Dec. 29, 2007, the company reported a $14,035,506 net loss on $12,625,654 of sales as compared with $832,960 of net income on $3,201,980 of sales for the year ended Dec. 30, 2006. At Dec. 29, 2007, the company's consolidated balance sheet showed $48,085,644 in total assets, $16,827,690 in total liabilities, and $31,257,954 in total stockholders' equity. The company's balance sheet at Dec. 29, 2007, showed strained liquidity with $15,642,749 in total current assets available to pay $16,766,363 in total current liabilities. The company's accumulated deficit at Dec. 29, 2007, increased to $120,696,679 from $106,661,173 at Dec. 30, 2006. Subsequent Event On Nov. 29, 2007, the company's board of directors signed an agreement to sell all of the shares of its wholly owned subsidiary Christenson Electric, Inc., to a corporation formed by the management of CEI, for $1,650,000 in cash and the assumption of approximately $7.5 million in term and revolving debt (subject to adjustments for subsequent changes). The company's shareholders approved the agreement in a vote on March 10, 2008. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?29dc Microfield Group, Inc. -- http://www.microfield.com/-- through its wholly owned operating subsidiary, EnergyConnect, Inc., specializes in transactions involving integration of consumers of electricity into the wholesale electricity markets. MILLSTONE II: Moody's Reviews Note Ratings for Likely Downgrades ---------------------------------------------------------------- Moody's Investors Service placed on review for possible downgrade the ratings on these notes issued by Millstone II CDO Ltd.: Class Description: $46,000,000 Class B Deferrable Floating Rate Notes Due 2051 -- Prior Rating: Aa2 -- Current Rating: Aa2, on review for possible downgrade Moody's also downgraded and left on review for possible further downgrade the ratings on these notes: Class Description: $14,000,000 Class C Deferrable Floating Rate Notes Due 2051 -- Prior Rating: A2, on review for possible downgrade -- Current Rating: Baa1, on review for possible downgrade Class Description: $10,000,000 Class D Deferrable Floating Rate Notes Due 2051 -- Prior Rating: Baa2, 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. MONTEREY CDO: Moody's Reviews Ratings on Eight Classes of Notes --------------------------------------------------------------- Moody's Investors Service placed on review for possible downgrade the ratings on these notes issued by Monterey CDO, Ltd.: Class Description: Up to $240,000,000 Class A-1A First Priority Senior Secured Floating Rate Delayed Draw Notes Due September 2042 -- Prior Rating: Aaa -- Current Rating: Aaa, on review for possible downgrade Class Description: $560,000,000 Class A-1B First Priority Senior Secured Floating Rate Notes Due September 2042 -- Prior Rating: Aaa -- Current Rating: Aaa, on review for possible downgrade Additionally, Moody's downgraded and left on review for possible further downgrade the ratings on these notes: Class Description: $80,000,000 Class A-2 Second Priority Senior Secured Floating Rate Notes Due September 2042 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: A2, on review for possible downgrade Class Description: $51,000,000 Class A-3 Third Priority Senior Secured Floating Rate Notes Due September 2042 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Baa1, on review for possible downgrade Class Description: $34,000,000 Class B Fourth Priority Senior Secured Floating Rate Notes Due September 2042 -- Prior Rating: Aa2, on review for possible downgrade -- Current Rating: Baa2, on review for possible downgrade Class Description: $7,000,000 Class C Fifth Priority Senior Secured Floating Rate Notes Due September 2042 -- Prior Rating: Aa3, on review for possible downgrade -- Current Rating: Baa3, on review for possible downgrade Class Description: $10,000,000 Class D Sixth Priority Mezzanine Secured Deferrable Floating Rate Notes Due September 2042 -- Prior Rating: A2, on review for possible downgrade -- Current Rating: Ba1, on review for possible downgrade Class Description: $10,000,000 Class E Seventh Priority Mezzanine Secured Deferrable Floating Rate Notes Due September 2042 -- 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. MOVIE GALLERY: Voting Results Show Overwhelming Support for Plan ---------------------------------------------------------------- Movie Gallery, Inc. and its debtor-affiliates have disclosed that the voting results for the Debtors' Second Amended Joint Plan of Reorganization have been filed with U.S. Bankruptcy Court for the Eastern District of Virginia. Voting by every class of creditors entitled to vote was overwhelmingly in support of the Plan. The Plan was accepted by more than 90% of the approximately 1,500 creditors who voted on the Plan. A confirmation hearing on the Plan is scheduled for Wednesday, April 9, 2008. The Debtors believe that the Plan satisfies the requirements of the U.S. Bankruptcy Code and is hopeful that it will be confirmed by the Bankruptcy Court. The Debtors remain on schedule to emerge early in the second quarter of 2008. "Through our ongoing restructuring we have positioned Movie Gallery and Hollywood Video as stronger businesses, better equipped for long-term success," said Joe Malugen, Chairman, President and Chief Executive Officer of Movie Gallery. "We are confident that our Plan represents a fair and equitable outcome for all of the creditors involved. We are pleased to have the strong support of our creditors and appreciate the continued loyalty of our customers, suppliers and employees." Details of the voting results including votes on a class-by-class basis are available at http://www.kccllc.net/moviegallery About Movie Gallery Based in Dothan, Alabama, Movie Gallery Inc. -- http://www.moviegallery.com/-- is a home entertainment specialty retailer. The company owns and operates 4,600 retail stores that rent and sell DVDs, videocassettes and video games. The company and its debtor-affiliates filed for Chapter 11 protection on Oct. 16, 2007 (Bankr. E.D. Va. Case Nos. 07-33849 to 07-33853. Anup Sathy, Esq., Marc J. Carmel, Esq., and Richard M. Cieri, Esq., at Kirkland & Ellis LLP, represent the Debtors. Michael A. Condyles, Esq., and Peter J. Barrett, Esq., at Kutak Rock LLP, is the Debtors' local counsel. The Debtors' claims & balloting agent is Kutzman Carson Consultants LLC. When the Debtors' filed for protection from their creditors, they listed total assets of $891,993,000 and total liabilities of $1,419,215,000. The Official Committee of Unsecured Creditors has selected Robert J. Feinstein, Esq., James I. Stang, Esq., Robert B. Orgel, Esq., and Brad Godshall, Esq., at Pachulski Stang Ziehl & Jones LLP, as its lead counsel, and Brian F. Kenney, Esq., at Miles & Stockbridge PC, as its local counsel. The Debtors' spokeswoman Meaghan Repko said that the company does not expect to exit bankruptcy protection before the second quarter of 2008. The Debtors have until June 13, 2008 to file their plan of reorganization. NEOMEDIA TECHNOLOGIES: Kingery & Crouse Raises Substantial Doubt ---------------------------------------------------------------- Kingery & Crouse, P.A, raised substantial doubt about NeoMedia Technologies, Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm said the company has suffered recurring losses from operations and has ongoing requirements for additional capital investment. For the year ended Dec. 31, 2007, the company reported a $40,635,000 net loss on $1,864,000 of net sales as compared with a $68,406,000 net loss on $1,605,000 of net sales for the same period in 2006. At Dec. 31, 2007, the company's consolidated balance sheet showed $13,524,000 in total assets and $87,752,000 in total liabilities, resulting in a $74,228,000 stockholders' deficit. The company's accumulated deficit at Dec. 31, 2007, increased to $201,565,000 from $160,930,000 at Dec. 31, 2006. Subsequent Events The company exercised a put option with 12Snap AG on Jan. 28, 2008. The company sold its remaining 10% ownership of 12Snap to Bernd Michael -- a private investor and former shareholder of 12Snap prior to the company's acquisition of 12Snap. The option agreement gave the company the right to sell the remaining 10% stake held for a purchase price of $800,000 after Dec. 31, 2007. This resulted in net proceeds of $800,000 in January 2008. YA Global Investments, LP, fka Cornell Capital Partners LP, converted 100 shares, 25 shares, 50 shares and 50 shares of the company's Series C preferred stock on Feb. 19, 2008, March 10, 2008, March 17, 2008, and March 25, 2008, respectively. In exchange for the Series C preferred stock, the company issued 10 million, 2.5 million, 5 million and 5 million shares of common stock, respectively. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?29dd Based in Fort Myers, Fla., NeoMedia Technologies, Inc. (OTC BB: NEOM) -- http://www.neom.com/-- provides Internet advertising solutions using wireless technologies to connect traditional print and broadcast media companies to active mobile content. NIEUW HAARLEM: Moody's Cuts Ratings on $128.325 Mil. Notes to Ba1 ----------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Nieuw hAArlem CDO Ltd: Class Description: $209,025,000 Class A-1 Senior Secured Floating Rate Notes due 2050 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Baa1, on review for possible downgrade Class Description: $128,325,000 Class A-2 Senior Secured Floating Rate Notes due 2050 -- Prior Rating: Aa2, 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. NORCROSS SAFETY: $1.2BB Honeywell Deal Spurs S&P's Positive Watch ----------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on Norcross Safety Products LLC and holding company Safety Products Holdings Inc., including the corporate credit ratings of 'B+', on CreditWatch with positive implications, following the announcement that Honeywell International Inc. (A/Stable/A-1) will acquire Norcross for $1.2 billion. "We assume the debt of Norcross and Safety Products Holdings will be repaid, and expect to withdraw the ratings shortly after the close of the acquisition," said Standard & Poor's credit analyst Sarah Wyeth. PEACE ARCH: Posts CDN$1.1 Million Net Loss in Qtr. Ended Nov. 30 ---------------------------------------------------------------- Peach Arch Entertainment Group Inc. reported a net loss of CDN$1.1 million for the first quarter ended Nov. 30, 2007, compared with a net loss of CDN$373,000 for the first quarter ended Nov. 30, 2006. Revenues for the first quarter were CDN$17.2 million, up 52% from CDN$11.3 million for the same period in the prior year. The increase in revenues was primarily due to a CDN$5.3 million increase in revenues in the home entertainment segment which includes new revenues from the acquisition of Trinity in the U.S. A CDN$2.8 million increase in television revenues was partially offset by a CDN$2.3 million decrease in motion picture revenues. The lower motion picture revenues were due to a delay in product delivery to Q2 and Q3. Operating expenses, defined as amortization of investment in film and television programming and other production costs, home entertainment costs, selling, general and administrative costs, stock and warrant-based compensation costs, and other amortization of CDN$17.3 million in the period increased by 63% from CDN$10.6 million for the same period in the prior year. The increase is primarily due to higher home entertainment direct costs from the higher revenues and increased corporate costs from the inclusion of the new businesses Castle Hill/Dream, Trinity and Dufferin Gate as well as additional overhead to support organic growth. In the first quarter of fiscal 2008, the company recorded a loss from operations of CDN$115,000 compared to earnings of CDN$717,000 last year. The loss in the quarter is mainly attributable to the lower revenues and earnings in the motion picture segment due to the delay in the delivery of certain titles to future quarters. Interest income for the three months was CDN$442,000, compared to CDN$260,000 in the prior year. Interest expense for the three months was CDN$1.7 million for the year, compared to CDN$822,000 in the prior year. The change over the prior year reflects increased interest expense due to higher production loans, as well as the inclusion of loan arrangement fees paid for new loan facilities negotiated during the quarter. Foreign exchange gain for the three months was CDN$356,000, compared to a loss of CDN$317,000 in the prior year which reflects the impact of the strengthening Canadian dollar on the company's U.S. operations. Income tax expense of CDN$139,000 in the period consists of a CDN$258,000 provision for income taxes net of a recovery for income taxes for CDN$119,000 compared to CDN$198,000 provision for income taxes which is net of a recovery for income taxes for CDN$64,000 for the same period in the prior year. A recovery for income taxes of CDN$119,000 was recorded in the quarter, CDN$46,000 relates to intangible assets that arose on business acquisitions which resulted in a future income tax liability represented by the tax effect of the temporary differences between the tax and accounting treatment of intangible assets. Amortization of intangible assets during the period resulted in a partial reversal of temporary timing differences and a resulting income tax recovery. An additional CDN$73,000 was recorded as a future tax recovery, and is related to net operating losses in the United States. At Nov. 30, 2007, the company's consolidated balance sheet showed CDN$166.3 million in total assets, CDN$121.2 million in total liabilities, and CDN$45.1 million in total stockholders' equity. About Peace Arch Based in Toronto, Los Angeles, and London, Peace Arch Entertainment Group Inc. (AMEX: PAE) (TSX: PAE) -- http://www.peacearch.com/-- produces and acquires feature films, television and home entertainment content for distribution to worldwide markets. Peace Arch owns one of the largest libraries of top quality independent feature films in the world, featuring more than 1000 classic and contemporary titles. * * * As reported in the Troubled Company Reporter on March 28, 2008, Peace Arch's management said in its Form 20-F report to the U.S. Securities and Exchange Commission for the fiscal year ended Aug. 31, 2007, that while the company continues to maintain its day-to-day activities and produce and distribute films and television programming, its working capital situation is severely constrained. The company also that it operates in an industry that has long operating cycles which require cash injections into new projects significantly ahead of the delivery and exploitation of the final production. If the company is unsuccessful in its financing efforts and in achieving sufficient cash flows from operating activities, the company may be required to significantly reduce or limit operations. These factors cast substantial doubt on the company's ability to continue as a going concern. PHH MORTGAGE: S&P Keeps Low-B Ratings on Two Classes of Certs. -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its ratings on 12 classes of mortgage pass-through certificates from PHH Mortgage Corp.'s series 2003-3P. The affirmations are based on current credit enhancement percentages that are sufficient to support the current ratings on the certificates. As of the March 25, 2008, distribution date, total delinquencies were 0.77% of the current pool balance. There have been no cumulative realized losses to date. The current outstanding pool factor is 44.87%, and the deal is 58 months seasoned. The collateral for this transaction consists of conventional fixed-rate residential mortgage loans. The loans are secured by first liens on one- to four-family residential properties. Ratings Affirmed PHH Mortgage Corp Mortgage pass-through certificates series 2003-3P Class Rating ----- ------ A-1, A-2, A-3, A-4, A-5, A-6, X AAA B-1 AA B-2 A B-3 BBB B-4 BB B-5 B POINT PLEASANT: Moody's Cuts $254.93 Mil. Notes From Aaa to 'Ba1' ----------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Point Pleasant Funding 2007-1, Ltd.: Class Description: $254,930,000 Class A-1 Floating Rate Notes due September 2047 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Ba1, on review for possible downgrade Class Description:$170,000,000 Class A-2 Floating Rate Notes due September 2047 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Ba2, on review for possible downgrade Class Description: $100,000,000 Class B Floating Rate Notes due September 2047 -- Prior Rating: A3, on review for possible downgrade -- Current Rating: B1, on review for possible downgrade Additionally, Moody's downgraded these notes: Class Description: $28,000,000 Class C Deferrable Floating Rate Notes due September 2047 -- Prior Rating: Ba3, on review for possible downgrade -- Current Rating: Ca Class Description: $32,000,000 Class D Deferrable Floating Rate Notes due September 2047 -- Prior Rating: Caa3, on review for possible downgrade -- Current Rating: Ca According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio PORT JACKSON: Moody's Junks Rating on $60 Mil. Notes From 'Ba1' --------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Port Jackson CDO 2007-1, Ltd.: Class Description: $105,000,000 Class A-1 First Priority Senior Secured Floating Rate Delayed Draw Notes due 2052 -- Prior Rating: Aaa, on review for possible downgrade -- Current Rating: Ba2, on review for possible downgrade Class Description: $112,500,000 Class A-2 Second Priority Senior Secured Floating Rate Notes due 2052 -- Prior Rating: A2, on review for possible downgrade -- Current Rating: B2, on review for possible downgrade Class Description: $17,500,000 Class A-3 Third Priority Senior Secured Floating Rate Notes due 2052 -- Prior Rating: A3, on review for possible downgrade -- Current Rating: B3, on review for possible downgrade Class Description: $60,000,000 Class B Fourth Priority Senior Secured Floating Rate Notes due 2052 -- Prior Rating: Ba1, on review for possible downgrade -- Current Rating: Caa1, on review for possible downgrade Additionally, Moody's downgraded these notes: Class Description: $15,000,000 Class C Fifth Priority Mezzanine Secured Deferrable Floating Rate Notes due 2052 -- Prior Rating: Caa1, on review for possible downgrade -- Current Rating: C Class Description: $15,000,000 Class D Sixth Priority Mezzanine Secured Deferrable Floating Rate Notes due 2052 -- Prior Rating: Caa3, on review for possible downgrade -- Current Rating: C According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. PROTECTIVE FINANCE: Moody's Attaches Low-B Ratings on Six Classes ----------------------------------------------------------------- Moody's Investors Service assigned definitive ratings to securities issued by Protective Finance Corporation REMIC Commercial Mortgage Pass-Through Certificates Series 2007-PL. The provisional ratings issued on Dec. 10, 2007 have have been replaced with these definitive ratings: -- Class A-1, $218,335,000, rated Aaa -- Class A-2, $152,306,000, rated Aaa -- Class A-3, $113,129,000, rated Aaa -- Class A-4, $132,870,000, rated Aaa -- Class A-1A, $94,557,000, rated Aaa -- Class A-M, $101,600,000, rated Aaa -- Class A-J, $102,870,000, rated Aaa -- Class B, $5,080,000, rated Aa1 -- Class C, $8,890,000, rated Aa2 -- Class D, $6,350,000, rated Aa3 -- Class E, $7,620,000, rated A1 -- Class F, $6,350,000, rated A2 -- Class G, $8,890,000, rated A3 -- Class H, $7,620,000, rated Baa1 -- Class J, $7,620,000, rated Baa2 -- Class K, $8,890,000, rated Baa3 -- Class L, $5,080,000, rated Ba1 -- Class M, $2,540,000, rated Ba2 -- Class N, $2,540,000, rated Ba3 -- Class O, $2,540,000, rated B1 -- Class P, $3,810,000, rated B2 -- Class Q, $2,540,000, rated B3 -- Class IO, $1,015,997,122*, rated Aaa * Approximate notional amount RALI TRUSTS: Moody's Cuts Ratings on 119 Tranches From 22 Deals --------------------------------------------------------------- Moody's Investors Service downgraded the ratings of 119 tranches from 22 transactions issued by Residential Accredit Loans Inc.under the QA shelf. Fifty downgraded tranches remain on review for possible further downgrade. Additionally, 55 tranches were placed on review for possible downgrade. The collateral backing these transactions consists primarily of first-lien, adjustable-rate, Alt-A mortgage loans. The ratings were downgraded or placed on review for possible downgrade, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. The actions described below are a result of Moody's on-going review process. Complete rating actions are: Issuer: RALI Series 2005-QA8 Trust -- Cl. M-1, Downgraded to A1 from Aa2 -- Cl. M-2, Downgraded to Ba1 from A2 -- Cl. M-3, Downgraded to B1 from Baa2 Issuer: RALI Series 2005-QA9 Trust -- Cl. M-1, Downgraded to Baa1 from Aa2 -- Cl. M-2, Downgraded to B1 from A2 -- Cl. M-3, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade -- Cl. B-1, Downgraded to Ca from Ba2 Issuer: RALI Series 2005-QA10 Trust -- Cl. M-1, Downgraded to A2 from Aa2 -- Cl. M-2, Downgraded to Ba3 from A2 -- Cl. M-3, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade Issuer: RALI Series 2005-QA11 Trust -- Cl. I-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. I-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. II-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. III-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. V-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. VI-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to Baa3 from Aa2 -- Cl. M-2, Downgraded to B2 from A2; Placed Under Review for further Possible Downgrade -- Cl. M-3, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade Issuer: RALI Series 2005-QA12 Trust -- Cl. M-1, Downgraded to Baa1 from Aa2 -- Cl. M-2, Downgraded to B1 from A2 -- Cl. M-3, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade Issuer: RALI Series 2005-QA13 Trust -- Cl. I-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. I-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. II-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. III-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. III-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to Ba2 from Aa2 -- Cl. M-2, Downgraded to B3 from A3; Placed Under Review for further Possible Downgrade -- Cl. M-3, Downgraded to Ca from Ba1 Issuer: RALI Series 2006-QA1 Trust -- Cl. A-I-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-I-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-II-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-III-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-III-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to B1 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to B3 from Baa3; Placed Under Review for further Possible Downgrade -- Cl. M-3, Downgraded to Ca from B2 Issuer: RALI Series 2006-QA2 Trust -- Cl. I-A-2, Placed on Review for Possible Downgrade, currently Aa1 -- Cl. I-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. II-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. II-A-2, Placed on Review for Possible Downgrade, currently Aa1 -- Cl. II-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. III-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. III-A-2, Placed on Review for Possible Downgrade, currently Aa1 -- Cl. III-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to B2 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade -- Cl. M-3, Downgraded to Ca from B2 Issuer: RALI Series 2006-QA3 Trust -- Cl. A-3, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to Baa2 from Aa1 -- Cl. M-2, Downgraded to B2 from Aa2 -- Cl. M-3, Downgraded to B2 from Aa3; Placed Under Review for further Possible Downgrade -- Cl. M-4, Downgraded to B3 from A2; Placed Under Review for further Possible Downgrade -- Cl. M-5, Downgraded to B3 from A3; Placed Under Review for further Possible Downgrade -- Cl. M-6, Downgraded to B3 from Baa1; Placed Under Review for further Possible Downgrade -- Cl. M-7, Downgraded to B3 from Baa3; Placed Under Review for further Possible Downgrade -- Cl. M-8, Downgraded to Ca from Ba1 -- Cl. M-9, Downgraded to Ca from Ba3 Issuer: RALI Series 2006-QA4 Trust -- Cl. A, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to Baa1 from Aa1 -- Cl. M-2, Downgraded to B1 from Aa2 -- Cl. M-3, Downgraded to B2 from Aa3; Placed Under Review for further Possible Downgrade -- Cl. M-4, Downgraded to B3 from A2; Placed Under Review for further Possible Downgrade -- Cl. M-5, Downgraded to B3 from A3; Placed Under Review for further Possible Downgrade -- Cl. M-6, Downgraded to B3 from Baa1; Placed Under Review for further Possible Downgrade -- Cl. M-7, Downgraded to Caa1 from Baa3; Placed Under Review for further Possible Downgrade -- Cl. M-8, Downgraded to Ca from Ba1 -- Cl. M-9, Downgraded to Ca from Ba3 -- Cl. M-10, Downgraded to Ca from Caa1 Issuer: RALI Series 2006-QA5 Trust -- Cl. I-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. I-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. I-A-3, Placed on Review for Possible Downgrade, currently Aaa -- Cl. II-A-2, Placed on Review for Possible Downgrade, currently Aa1 -- Cl. I-M-1, Downgraded to Baa3 from Aa1 -- Cl. I-M-2, Downgraded to B3 from Aa2 -- Cl. I-M-3, Downgraded to B3 from Aa3; Placed Under Review for further Possible Downgrade -- Cl. I-M-4, Downgraded to B3 from A3; Placed Under Review for further Possible Downgrade -- Cl. I-M-5, Downgraded to B3 from Baa1; Placed Under Review for further Possible Downgrade -- Cl. I-M-6, Downgraded to Caa1 from Baa2; Placed Under Review for further Possible Downgrade -- Cl. I-M-7, Downgraded to Ca from Ba2 -- Cl. I-M-8, Downgraded to Ca from Ba3 -- Cl. I-M-9, Downgraded to Ca from B3 -- Cl. II-M-1, Downgraded to B2 from Aa2 Issuer: RALI Series 2006-QA6 Trust -- Cl. A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-4, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to Baa1 from Aa1 -- Cl. M-2, Downgraded to Ba1 from Aa2 -- Cl. M-3, Downgraded to B2 from Aa3 -- Cl. M-4, Downgraded to B2 from A2; Placed Under Review for further Possible Downgrade -- Cl. M-5, Downgraded to B2 from A3; Placed Under Review for further Possible Downgrade -- Cl. M-6, Downgraded to B3 from Baa1; Placed Under Review for further Possible Downgrade -- Cl. M-7, Downgraded to Caa1 from Baa3; Placed Under Review for further Possible Downgrade -- Cl. M-8, Downgraded to Ca from Ba1 -- Cl. M-9, Downgraded to Ca from Ba3 -- Cl. B, Downgraded to Ca from B3 Issuer: RALI Series 2006-QA7 Trust -- Cl. I-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. II-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to B2 from Aa1; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to B2 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M-3, Downgraded to B3 from Aa3; Placed Under Review for further Possible Downgrade -- Cl. M-4, Downgraded to B3 from A2; Placed Under Review for further Possible Downgrade -- Cl. M-5, Downgraded to B3 from Baa1; Placed Under Review for further Possible Downgrade -- Cl. M-6, Downgraded to Caa1 from Baa2; Placed Under Review for further Possible Downgrade -- Cl. M-7, Downgraded to Ca from Ba1 -- Cl. M-8, Downgraded to Ca from Ba2 -- Cl. M-9, Downgraded to Ca from Ba3 -- Cl. M-10, Downgraded to Ca from Caa1 Issuer: RALI Series 2006-QA8 Trust -- Cl. A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-3, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to B2 from Aa1; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to B3 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M-3, Downgraded to B3 from Aa3; Placed Under Review for further Possible Downgrade -- Cl. M-4, Downgraded to B3 from A3; Placed Under Review for further Possible Downgrade -- Cl. M-5, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade -- Cl. M-6, Downgraded to Caa1 from Baa3; Placed Under Review for further Possible Downgrade -- Cl. M-7, Downgraded to Ca from Ba2 -- Cl. M-8, Downgraded to Ca from Ba3 -- Cl. M-9, Downgraded to Ca from B2 Issuer: RALI Series 2006-QA9 Trust -- Cl. A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to B2 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to B3 from A3; Placed Under Review for further Possible Downgrade -- Cl. M-3, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade -- Cl. M-4, Downgraded to Ca from Ba1 -- Cl. M-5, Downgraded to Ca from Ba2 -- Cl. M-6, Downgraded to Ca from B1 Issuer: RALI Series 2006-QA10 Trust -- Cl. A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-3, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to B3 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to Ca from Ba1 -- Cl. M-3, Downgraded to Ca from Ba3 -- Cl. M-4, Downgraded to Ca from B1 -- Cl. M-5, Downgraded to Ca from B2 Issuer: RALI Series 2006-QA11 Trust -- Cl. A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to B3 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to Ca from Ba1 -- Cl. M-3, Downgraded to Ca from Ba3 -- Cl. M-4, Downgraded to Ca from B2 -- Cl. M-5, Downgraded to Ca from Caa1 Issuer: RALI Series 2007-QA1 Trust -- Cl. A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-3, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to B3 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to Ca from Ba2 -- Cl. M-3, Downgraded to Ca from B2 -- Cl. M-4, Downgraded to Ca from B3 -- Cl. M-5, Downgraded to Ca from Caa3 Issuer: RALI Series 2007-QA2 Trust -- Cl. A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-3, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to B3 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to Ca from B1 -- Cl. M-3, Downgraded to Ca from Caa1 -- Cl. M-4, Downgraded to Ca from Caa3 Issuer: RALI Series 2007-QA3 Trust -- Cl. A-4, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to B3 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to Ca from Ba3 -- Cl. M-3, Downgraded to Ca from B2 -- Cl. M-4, Downgraded to Ca from Caa1 Issuer: RALI Series 2007-QA4 Trust -- Cl. A-1-A, Placed on Review for Possible Downgrade, currently Aaa -- Cl. A-1-B, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to B2 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to Ca from Ba3 -- Cl. M-3, Downgraded to Ca from B3 -- Cl. M-4, Downgraded to Ca from Caa3 Issuer: RALI Series 2007-QA5 Trust -- Cl. I-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. II-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. III-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M-1, Downgraded to B1 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. M-2, Downgraded to Ca from B1 -- Cl. M-3, Downgraded to Ca from B3 RESIDENTIAL CAPITAL: Moody's Ratings Unmoved by Capital Injection ----------------------------------------------------------------- Residential Capital LLC's announcement that it has received a $1.2 billion capital injection from its parent GMAC LLC does not impact the ratings of either entity. The $1.2 billion capital injection is equal to the face amount of ResCap debt purchased in the open market by GMAC with an estimated current market value of $607 million and exchanged for $607 million newly created ResCap preferred units. GMAC also disclosed that it has purchased an additional $340 million face value of ResCap debt currently valued at $266 million that they may contribute to ResCap. The senior unsecured rating of GMAC LLC is B1 and ResCap B2. The rating outook for both firms is negative. The downgrade of GMAC's rating on Feb. 5, 2008 to B1 with a negative outlook contemplated that the company would likely continue to provide capital to support ResCap in the near term. The cash and capital cost to GMAC of providing the $1.2 billion capital injection to ResCap, and the $340 million of additional debt purchased but not contributed to ResCap, is within Moody's expectation of the amount of support GMAC would provide to ResCap. In regards to ResCap, the downgrade to B2 on Feb. 5, 2008 incorporated the possibility that the company would receive sizable support from its parent. Moody's still believes that ResCap's parents may have a limited tolerance for supporting ResCap if ResCap's performance and condition fail to meet management's expectations for improvement during the first half of 2008. Additionally, Moody's notes that the form of the capital injection does not improve ResCap's short term liquidity profile. As stated above, the ResCap rating outlook remains negative. REVLON INC: Net Loss Slides to $16MM in Year ended December 31 -------------------------------------------------------------- Revlon Inc. released financial results for the full year and fourth quarter ended Dec. 31, 2007. Net loss in the full year 2007 was $16.1 million compared to a net loss of $251.3 million in the full year 2006. Adjusted EBITDA in the full year 2007 was $224.5 million, compared to an Adjusted EBITDA of $78.2 million last year. Operating income was $121.0 million in the full year 2007, versus an operating loss of $50.2 million in the full year 2006. In the full year 2006, Vital Radiance, executive severance and restructuring expenses unfavorably affected the company's operating income and net loss by $145.1 million and Adjusted EBITDA by $122.9 million. Results for the full year 2007 included restructuring expenses of $7.3 million. Excluding the impact of these items, the improvements in operating income, net loss and Adjusted EBITDA were driven by net sales increases, continued benefits from restructuring actions and ongoing cost controls. "We are executing our strategy and our financial results in 2007 were our best in many years, David Kennedy, Revlon president and chief executive officer, said. "We generated $224.5 million in Adjusted EBITDA and our negative free cash flow was $13.8 million. Our improved financial performance was driven by increased net sales, continued benefits from our restructuring actions and ongoing control of our costs." "We fully recognize the need to further improve our performance, and enter 2008 with a continued focus on increasing the value of our company by building the Revlon brand and driving towards both profitable sales growth and positive free cash flow," Mr. Kennedy added. Fourth Quarter Results Net income in the fourth quarter of 2007 was $40.8 million compared with a net loss of $5.5 million in the fourth quarter of 2006. Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization or EBITDA in the fourth quarter of 2007 was $106.3 million, compared to an Adjusted EBITDA of $108.2 million in the same period last year. Operating income was $80.4 million in the fourth quarter of 2007, versus operating income of $70.1 million in the fourth quarter of 2006. In the fourth quarter 2006, Vital Radiance and restructuring expenses unfavorably affected the company's operating income and net loss by $20.8 million and Adjusted EBITDA by $9.7 million. The fourth quarter of 2007 included restructuring expenses of $0.4 million. Excluding the impact of these items, the decreases in operating income and Adjusted EBITDA were largely attributable to increased brand support and higher performance-based incentive compensation. Net income was reduced by the same factors that affected Operating Income and Adjusted EBITDA. Net income in the fourth quarter of 2006 included a charge of $23.1 million related to the early extinguishment of debt. Cash Flow and Balance Sheet Cash flow provided by operating activities in the full year 2007 was $3.8 million, compared to cash flow used in operating activities of $138.7 million in the full year 2006. This improvement was due to a lower net loss and decreased permanent display spending, partially offset by changes in net working capital. At Dec. 31, 2007, the company's balance sheet showed total assets of $889.3 million, total liabilities of $1,971.3 million and total stockholders' deficiency of $1,082 million. About Revlon Inc. Headquartered in New York City, Revlon Inc. (NYSE:REV) -- http://www.revlon.com/-- conducts its business through its direct wholly owned operating subsidiary, Revlon Consumer Products Corporation and its subsidiaries, which manufactures, markets and sells an array of cosmetics, skincare, fragrances, beauty tools, hair color and personal care products. The company is a mass- market cosmetics brand. * * * As reported in the Troubled company Reporter on Nov. 8, 2007, The company's Sept. 30, 2007, consolidated balance sheet showed $882.4 million in total assets and $2.03 billion in total liabilities, resulting in a $1.15 billion in total shareholders' deficit. Net loss in the third quarter of 2007 was $10.4 million, compared with a net loss of $100.5 million in the third quarter of 2006. RIVER RIM: Voluntary Chapter 11 Case Summary -------------------------------------------- Lead Debtor: River Rim, LLC 2005 East 2700 South, Suite 140 Salt Lake City, UT 84109 Bankruptcy Case No.: 08-22107 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Ralph D. Brinton 08-22111 Aaron John Wernli 08-22113 James T. Bramlette 08-22114 Chapter 11 Petition Date: April 4, 2008 Court: District of Utah (Salt Lake City) Judge: Glen E. Clark Debtors' Counsel: Gregory J. Adams, Esq. (gadams@mbt-law.com) McKay Burton & Thurman 170 South Main Street, Suite 800 Salt Lake City, UT 84101 Tel: (801) 521-4135 Fax: (801) 521-4252 http://www.mbt-law.com/ Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The Debtors did not file lists of their largest unsecured creditors. ROADRUNNER RIVER: Files List of 12 Largest Unsecured Creditors -------------------------------------------------------------- Roadrunner River Resort, LLC submitted to the U.S. Bankruptcy Court for the District of Arizona its list of 12 largest unsecured creditors, disclosing: Entity Nature of Claim Claim Amount ------ --------------- ------------ Internal Revenue Service $65,000 P.O. Box 21126 Philadelphia, PA 19114 Harris Bank 2007 Dodge $40,000 Pickup; value of security: $32,000 Chrysler Financial 2006 Dodge $32,000 P.O. Box 15026 Pickup; value of Wilmington, DE 19850 security: $27,000 GEMB Lending 2006 Dune Chaser $26,000 Trailer; value of security: $25,000 GMAC 2006 Hummer; $24,000 value of security: $18,000 Arizona Department of Revenue $20,000 Bank of America $18,000 CNH Capital farm tractor; $18,000 value of security: $17,000 Providian $16,000 Target $6,000 Orchard Bank Household $2,700 Services JC Penney $2,000 Based in Parker, Arizona, Roadrunner River Resort, LLC filed for Chapter 11 protection on Mar. 12, 2008 (Bankr. D. Ariz. Case No. 08-02529). Robert M. Cook, Esq. represents the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed estimated assets and liabilities of both $1 million to $100 million. SEARCHHELP INC: Sept. 30 Balance Sheet Upside-Down by $1,710,469 ---------------------------------------------------------------- SearchHelp Inc.'s consolidated balance sheet at Sept. 30, 2007, showed $2,130,180 in total assets and $3,840,649 in total liabilities, resulting in a $1,710,469 total stockholders' deficit. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with $543,200 in total current assets available to pay $3,692,164 in total current liabilities. The company reported a net loss of $1,200,394 on total revenues of $60,273 for the third quarter ended Sept. 30, 2007, compared with a net loss of $972,464 on total revenues $109,838 for the same period ended Sept. 30, 2006. Factors contributing to the company's loss were an increase in technology costs as the company continued its investment in IT infrastructure and bandwidth to support increased customer usage and in acquiring additional technical expertise in software development and support. These costs, which include website design and optimization, infrastructure hosting, bandwidth provisioning database and program upgrades and enhancements and the use of outside technical consultants, increased approximately $134,000 for the three months ended Sept. 30, 2007, from the comparable period of the prior year. Interest expense for the three months ended Sept. 30, 2007, and 2006 was $ 268,865 and $227,565, respectively, an increase of $41,300. This increase in interest expense is primarily a result of the company paying interest on the increased number of convertible notes and bridge notes outstanding. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?2a07 Going Concern Disclaimer As reported in the Troubled Company Reporter on April 20, 2007, Lazar, Levine and Felix LLP expressed substantial doubt about SearchHelp Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's recurring losses from operations and negative working capital and net capital deficiency. About SearchHelp Inc. SearchHelp Inc. (OTC BB: SHLP) -- http://www.searchhelp.com/-- develops software services committed to real-time online protection and safety. The company offers parental control software that enable parents, both in home and remotely, to monitor and regulate their child's computer activity through timely reports via email and cell phone. SHEFFIELD CDO: Poor Credit Quality Cues Moody's Rating Downgrades ----------------------------------------------------------------- Moody's Investors Service placed on review for possible downgrade the ratings on these notes issued by Sheffield CDO II, Ltd.: Class Description: $32,500,000 Class A-3 Senior Secured Floating Rate Notes due 2051 -- Prior Rating: Aaa -- Current Rating: Aaa, on review for possible downgrade Class Description: $31,600,000 Class B Senior Secured Floating Rate Notes due 2051 -- Prior Rating: Aa2 -- Current Rating: Aa2, on review for possible downgrade Additionally, Moody's downgraded and left on review for possible further downgrade the ratings on these notes: Class Description: $19,500,000 Class C Deferrable Interest Secured Floating Rate Notes due 2051 -- Prior Rating: A2, on review for possible downgrade -- Current Rating: Ba1, on review for possible downgrade Class Description: $21,400,000 Class D Deferrable Interest Secured Floating Rate Notes due 2051 -- Prior Rating: Ba3, on review for possible downgrade -- Current Rating: Caa1, on review for possible downgrade According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. SIMMONS COMPANY: S&P Changes Outlook to Negative; Keeps 'B' Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services revised its rating outlook on Simmons Co. to negative from stable. All ratings on the company, including the 'B' corporate credit rating, were affirmed. On a consolidated basis, Simmons had total debt outstanding of about $1.2 billion at Dec. 31, 2007. "The outlook revision reflects our expectation that the cushion on the bedding company's financial covenants could tighten over the next few quarters, as a result of the sluggish housing market and reduced consumer spending," said Standard & Poor's credit analyst Rick Joy. While the company has shown strong sales growth over the second half of 2007, several companies in the bedding industry have experienced substantial softening of trends in recent months, which S&P believes reflects a broader industry slowdown. S&P believes the company may find it difficult to improve credit measures over the next year amid continued softness in the U.S. housing market, a weak retail environment, and rising raw material costs. In addition, S&P is concerned about a potential constriction of the company's cushion on its financial covenants, given a step-down in the required debt leverage covenant level beginning this quarter. The speculative-grade ratings on Simmons reflect its narrow business focus, aggressive financial policy, and highly leveraged financial profile. Somewhat mitigating these factors are the company's well-recognized brands, solid market position, and the mattress industry's relatively stable demand and barriers to entry. Atlanta, Georgia-based Simmons manufactures and distributes bedding products and mattresses in the U.S. The company sells a broad range of mattresses and foundations under well-recognized brands, including its flagship Beautyrest brand. The estimated $6.9 billion U.S. bedding industry is highly competitive, with three companies dominating a significant portion of the market. Simmons is the No. 2 participant, with a share of about 16%, behind market leader Sealy Corp., with a 21% share, and ahead of AOT Bedding Holdings Corp., with a share of more than 13%, according to third-party sources. While the industry has historically demonstrated stability in various economic environments, near-term growth prospects have weakened along with the economy and housing market in the U.S. However, high transportation costs and the short lead times required by retailers provide some protection against the threat of imported products. S&P expects the intermediate-term operating environment to be challenging. If Simmons' cushion on its financial covenants narrows significantly, S&P could lower the ratings. Although unlikely over the near term, S&P could revise the outlook to stable if Simmons is able to strengthen credit measures and improve its operations. SIMON WORLDWIDE: BDO Seidman Raises Substantial Doubt ----------------------------------------------------- BDO Seidman, LLP, in Los Angeles raised substantial doubt about Simon Worldwide, Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2007, and 2006. BDO Seidman pointed to the company's stockholders' deficit, significant losses from operations, and lack of any operating revenue. The company had no revenue in 2005, 2006 and 2007. For the year ended Dec. 31, 2007, the company posted a $1,781,000 net loss as compared with a $1,918,000 net loss on Dec. 31, 2006. At Dec. 31, 2007, the company's balance sheet showed $20,427,000 in total assets, $1,599,000 in total liabilities, and $33,696,000 in redeemable preferred stock, resulting in a $14,868,000 stockholders' deficit. The company had a $7,236,000 stockholders' deficit at Dec. 31, 2006. A full-text copy of the company's 2007 annual report is available for free at http://ResearchArchives.com/t/s?29e2 About Simon Worldwide Headquartered in Los Angeles, Calif., Simon Worldwide, Inc., was a diversified marketing and promotion agency with offices throughout North America, Europe and Asia. The company had worked with some of the largest and best-known brands in the world and had been involved with some of the most successful consumer promotional campaigns in history. Through its wholly owned subsidiary, Simon Marketing Inc., the company provided promotional agency services and integrated marketing solutions including loyalty marketing, strategic and calendar planning, game design and execution, premium development and production management. In August 2001, McDonald's Corp, its principal customer, terminated its 25-year relationship with the company as a result of the embezzlement by a former employee of winning game pieces from McDonald's promotional games it administered. Other customers also terminated their relationships with the company. SONIC CORP: Gabriel Tsampalieros Named to Board of Directors ------------------------------------------------------------ Sonic Corp. announced Thursday that Gabriel Tsampalieros has been named to its Board of Directors. Tsampalieros is the owner, chairman and chief executive officer of The Second Cup Coffee Company Inc., the largest franchisor of specialty coffee cafes in Canada. Founded in 1975, Second Cup has more than 360 locations in Canada and more than 30 international locations. "Gabe brings relevant franchise, multi-unit retail and management experience to our Board. His business and legal background will add significant value to what is already a strong Board of Directors," said Clifford Hudson, chairman and chief executive officer of Sonic Corp. About Sonic Corp. Headquartered in Oklahoma City, Oklahoma, Sonic Corp. (Nasdaq: SONC) -- http://www.sonicdrivein.com/-- originally started as a hamburger and root beer stand in 1953, in Shawnee, Oklahoma, called Top Hat Drive-In, and then changed its name to Sonic in 1959. The first drive-in to adopt the Sonic name is still serving customers in Stillwater, Oklahoma. Sonic has more than 3,400 drive-ins coast to coast and in Mexico. * * * As reported in the Troubled Company Reporter on April 4, 2008, Sonic Corp.'s consolidated balance sheet at Feb. 29, 2008, showed total assets of $776.2 million and total liabilities of $886.0 million, resulting in a $109.8 million total stockholders' deficit. SOUNDVIEW HOME: Six Classes of Certs. Get Moody's Junk Ratings -------------------------------------------------------------- Moody's Investors Service downgraded seven certificates and has placed on review for further possible downgrade one certificate issued by Soundview Home Loan Trust 2006-A. The transaction is backed by second lien loans. The certificates were downgraded because the bonds' credit enhancement levels, including excess spread and subordination were too low compared to the current projected loss numbers at the previous rating levels. The actions take into account the continued and worsening performance of transactions backed by closed-end-second and home equity line of credit collateral. Substantial pool losses of over the last few months have eroded credit enhancement available to the mezzanine and senior certificates. Despite the large amount of write-offs due to losses, delinquency pipelines have remained high as borrowers continue to default. Complete rating actions are: Issuer: Soundview Home Loan Trust 2006-A -- Cl. A, Downgraded to Ba2 from Aa1; Placed Under Review for further Possible Downgrade -- Cl. M-1, Downgraded to Caa2 from Aa2 -- Cl. M-2, Downgraded to Ca from Ba1 -- Cl. M-3, Downgraded to C from B2 -- Cl. M-4, Downgraded to C from Caa1 -- Cl. M-5, Downgraded to C from Caa2 -- Cl. M-6, Downgraded to C from Ca SR TELECOM: Reports $132.4 Million Net Loss in Year Ended Dec. 31 ----------------------------------------------------------------- SR Telecom Inc. released its year-end audited financial results and its fourth quarter results for the period ended Dec. 31, 2007. As reported in the Troubled Company Reporter on April 2, 2008, the company entered into a definitive agreement with Lagasse Communications & Industries Inc., or Groupe Lagasse, to sell the majority of its property and assets related to the WiMAX business and symmetryTM line of products. SR Telecom received cash proceeds of $6.05 million, before transaction fees. The transaction closed April 4, 2008. A report on the closed sale transaction is in today's Troubled Company Reporter.s The audited consolidated financial statements for the year ended December 31, 2007 have been prepared using a different basis than the standard going concern assumption. The company's assets were valued at their net realizable value for a total of $37.0 million. As a result, a significant asset impairment of $40.6 million was recognized in the fourth quarter financial statements. Since the company filed for creditor protection under Companies' Creditors Arrangement Act (CCAA), the liabilities were presented in the financial statements at their "allowed claim amount", triggering an increase in liabilities of $17.7 million. Total liabilities amounted to $150.3 million. The allowed claim amount represents the estimated maximum amount to be potentially claimed by creditors. No provision has been recorded in 2007 for the losses expected to occur from Jan. 1, 2008, to the liquidation date as the audited financial statements for the year ended Dec. 31, 2007, have not been prepared on a liquidation basis. Consolidated Financial Results SR Telecom's revenue for the year was $75.7 million compared to $68.7 million in 2006. Despite this increase, the revenue generated in 2007 was below management's expectations for its symmetry product line. This revenue shortfall was mainly due to the impact of liquidity restrictions on sales efforts, delays in manufacturing and product and technology development and to additional delays incurred in the ongoing implementation of major contracts in Mexico and Argentina. Operating loss from continuing operations was $115.5 million, up from $98.0 million in 2006. Net loss and comprehensive loss for 2007 was $132.4 million, compared to $115.6 million in the prior year. Results in 2007 were significantly impacted by asset impairment and restructuring charges of $60.6 million resulting from CCAA proceedings, which includes an asset impairment charge of $40.6 million to bring assets to their net realizable value based on the proceeds from the asset sale to Groupe Lagasse, with the remainder related to an increase in long-term liabilities to their allowed claim amount. The impact of asset impairment and restructuring charges was partially offset by lower selling, general and administrative expenses and reduced research and development expenses compared to 2006. Total assets amounted to $37.0 million as at Dec. 31, 2007, compared to $150.6 million in 2006. The decrease over the prior year by $113.6 million was a result of the asset impairment charge and the discontinued operations of CTR, the company's Chilean subsidiary operating in the Telecommunications Service Provider Segment, sold at the beginning of 2007. Liabilities increased by $10.6 million to $150.3 million as at Dec. 31, 2007, due to the additional financing obtained in July 2007 and the adjustment of liabilities to their allowed claim amount. The increase was partially offset by CTR discontinued operations and elimination of related liabilities. Consolidated cash and cash equivalents decreased from $18.5 million as at Dec. 31, 2006, to $17.0 million as at Dec. 31, 2007. About SR Telecom Headquartered in Quebec, Canada, SR Telecom (TSX: SRX) -- http://www.srtelecom.com/-- delivers broadband wireless access (BWA) solutions that enable service providers to deploy voice, Internet and next-generation services in urban, suburban and remote areas. The company has offices in Mexico, France and Thailand. SR Telecom Inc.'s consolidated balance sheet at June 30, 2007, showed CDN$83.9 million in total assets and CDN$97.9 million in total liabilities, resulting in a CDN$14.0 million total stockholders' deficit. SR Telecom is currently operating under the protection of the Companies' Creditors Arrangement Act (CCAA). The company filed for creditor protection under the CCAA on Nov. 19, 2007. On Feb. 29, 2008, it obtained a court order to extend the period of the Court-ordered stay of proceedings under the CCAA to May 2, 2008. SR TELECOM: Closes $6 Million Sale of Asset to Group Legasse ------------------------------------------------------------ SR Telecom Inc. closed the sale of the majority of its assets to Sherbrooke (Quebec) based Groupe Lagasse. The transaction, which received court approval on March 31, 2008, will provide continuity for SR Telecom's international customer base and protect high technology jobs in Montreal. As reported in the Troubled Company Reporter on April 2, 2008, SR Telecom Inc. said that the Quebec Superior Court authorized the sale of the majority of the company's assets to Groupe Lagasse. As announced on March 24, 2008, Groupe Lagasse will purchase SR Telecom's brand, trademarks, intellectual property, patents, inventories and equipment relating to its symmetryMX product line. SR Telecom shareholders will not receive any value out of the proceeds of the sale. Since Nov. 19, 2007, SR Telecom has been operating under the protection of the Companies' Creditors Arrangement Act (CCAA). On February 29, 2008, it obtained a court order to extend the period of the Court-ordered stay of proceedings under the CCAA to May 2, 2008. The new business will be operating under the name SR Telecom & Co. S.E.C., a Groupe Lagasse wholly owned subsidiary. About Groupe Lagasse Groupe Lagasse -- http://www.groupelagasse.com/-- is an international company with manufacturing and products business units that focus on providing leading edge, rugged, high reliability, and high availability solutions for the private and public sectors. Its activities include electronic manufacturing expertise for secure radio and telecom products that address the entire product life cycle. The Group also develops advanced carrier grade VoIP access devices, gateways, secure SIP-based software solutions and secure, ruggedized, active RFID solutions. These are complemented by outsourced contact center solutions and automated interactive voice services that can deliver a single message to as many as 10,000 recipients per hour, via phone, mobile phone, SMS and e-mail. Groupe Lagasse is a privately held holding whose sales, in 2007, exceeded $200 M Cnd; the group has operations in Europe and North America and employs over 1,000 people worldwide. About SR Telecom Headquartered in Quebec, Canada, SR Telecom (TSX: SRX) -- http://www.srtelecom.com/-- delivers broadband wireless access (BWA) solutions that enable service providers to deploy voice, Internet and next-generation services in urban, suburban and remote areas. The company has offices in Mexico, France and Thailand. SR Telecom Inc.'s consolidated balance sheet at June 30, 2007, showed CDN$83.9 million in total assets and CDN$97.9 million in total liabilities, resulting in a CDN$14.0 million total stockholders' deficit. STURGIS IRON: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Debtor: Sturgis Iron & Metal Co., Inc. aka Kalamazoo Scrap and Processing Division aka Monroe Recycling aka Elkhart Metals aka Fitzgerald Recycling aka Fort Wayne Scrap 70675 South Centerville Road Sturgis, MI 49091 Bankruptcy Case No.: 08-02966 Type of Business: The Debtor sells ferrous metal scrap & waste in wholesale. It also manufactures secondary nonferrous metals, and provides pre-finishing iron or steel processes services, finishing metal processing services, and smelting metal services. Chapter 11 Petition Date: April 4, 2008 Court: Western District of Michigan (Grand Rapids) Judge: Jeffrey R. Hughes Debtor's Counsel: Jay L. Welford, Esq. (jwelford@jaffelaw.com) Judith Greenstone Miller, Esq. (jmiller@jaffelaw.com) Paige Barr, Esq. (pbarr@jaffelaw.com) Paul R. Hage, Esq. (phage@jaffelaw.com) Richard E. Kruger, Esq. (rkruger@jaffelaw.com) Jaffe, Raitt, Heuer & Weiss, PC 27777 Franklin Road, Suite 2500 Southfield, MI 48034 Tel: (248) 351-3000 http://www.jaffelaw.com/ Estimated Assets: $100 million to $500 million Estimated Debts: $100 million to $500 million Debtor's 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ MPI International, Inc. $3,825,303 2129 Austin Rochester Hills, MI 48309 Benteler Automotive $1,515,924 525 West Monroe Street, 8th Floor Chicago, IL 60661 Sherbanuk Metals Marketing $1,411,084 122 Scollard Street, 200 Level Toronto, Ontario, Canada M5R1G2 Federal Mogul $1,055,130 26555 Northwestern Highway Southfield, MI 48033-2146 Bull Moose Tube, Inc. $975,855 1819 Clarkson Road Chesterfield, MO 63017 Gunite Corp. $884,634 Attn: Laurie Herl 801 CR 15 Elkhart, IN 46516 People Link $863,708 431 East Colfax Avenue, Suite 200 South Bend, IN 46617 Ferrous Process & Trading $764,647 Department #225401 P.O. Box 67000 Detroit, MI 48267-2254 Set Enterprises $620,344 28217 Van Dyke Avenue Warren, IN 48093 Paragon Industries $594,189 3378 West Highway 117 P.O. Box 1408 Sapulpa, OK 74067 Hubbell-Raco $577,869 3902 West Sample Street South Bend, IN 46619-2933 General Motors $532,485 300 Renaissance Center Detroit, MI 48265-0001 American Axle & Manufacturing $519,353 1840 Holbrook Hamtramck, MI 48212 Detroit, MI 48279-5893 Skill Tool & Die $516,570 P.O. Box 673376 Detroit, MI 48267-3376 Wendt Corp. $499,885 2080 Military Road Tonawanda, NY 14150 CSX Corp. $468,393 1659 Solutions Center Chicago, IL 60677-1006 Nucor Corp. $439,683 1915 Rexford Road Charlotte, NC 28211 Superior Metal Recycling $390,221 2051 North M-18 Roscommon, MI 48153 Sunnybrook RV $312,170 P.O. Box 2001 201 14th Street Middlebury, IN 46540 Earthmovers, Inc. $301,105 A Waste Management Co. P.O. Box 9001054 Louisville, KY 40290-1054 TAYLOR CAPITAL: Terminates Employment of Mark Garrigus with Bank ---------------------------------------------------------------- On April 1, 2008, Taylor Capital Group Inc.'s wholly owned subsidiary, Cole Taylor Bank, entered into an Agreement and Release with Mark Garrigus, chief credit officer, in connection with the termination of his employment with the bank, effective June 30, 2008. Mr. Garrigus will continue to perform his responsibilities through April 30, 2008, and then provide transition services, if needed, through June 30, 2008. About Taylor Capital Headquartered in Illinois, Chicago, Taylor Capital Group Inc. (Nasdaq: TAYC) -- http://www.taylorcapitalgroup.com/-- is a bank- holding company. The company derives virtually all of its revenue from its subsidiary, Cole Taylor Bank, which presently operates 11 banking centers throughout the Chicago metropolitan area. At Dec. 31, 2007, the company's consolidated balance sheet showed $3.556 billion in total assets, $2.580 billion in total deposits, $722.0 million in other liabilities, and $254.3 million in total stockholders' equity. * * * As reported in the Troubled Company Reporter on Feb. 1, 2008, Fitch Ratings downgraded the individual rating to 'C' from 'B/C'. The rating outlook has been revised to negative from stable. TELTRONICS INC: Dec. 31 Balance Sheet Upside-Down by $4.5 Million ----------------------------------------------------------------- At Dec. 31, 2007, Teltronics Inc.'s consolidated balance sheet showed $18.0 million in total assets and $22.5 million in total liabilities, resulting in a $4.5 million total stockholders' deficit. The company reported a net loss of $2.1 million on net sales of $40.6 million for the year ended Dec. 31, 2007, compared with net income of $1.6 million on net sales of $46.9 million for the year ended Dec. 31, 2006. The overall decrease in net sales for the year ended Dec. 31, 2007, was primarily the result of reduced sales in the 20-20 market based on competitive pressure from the VoIP switch providers, deceases in the Intelligent Systems Management market which was as a result of the change in focus from the telephony market to the server based systems, and decreases in the Contract Services market. For the year ended Dec. 31, 2007, interest expense increased $499,000 to $1.9 million. The increase in interest costs was primarily the result of an additional charge of approximately $489,000 from the debt restructuring in 2007. Liquidity As of Dec. 31, 2007, the company had cash and cash equivalents of $1,123,000 as compared to $794,000 as of Dec. 31, 2006. Working capital as of Dec. 31, 2007, was $116,000 as compared to $798,000 as of Dec. 31, 2006. The company's obligations as of Dec. 31, 2007, consisted primarily of the following items: a) a revolving line of credit facility with an outstanding balance of $4,029,000, b) a senior term loan of $5,258,000, c) a note payable to Tri-Link of $208,000, d) a note payable to a related party of $348,000, and e) dividends on its Series B and C Preferred stock, of which $252,000 is due and payable within the next twelve months. Full-text copies of the company's consolidated financial statements for the year ended Dec. 31, 2007, are available for free at http://researcharchives.com/t/s?2a02 About Teltronics Inc. Headquartered in Sarasota, Florida, Teltronics Inc. (OTC BB: TELT) -- http://www.teltronics.com/-- designs, develops, installs, manufactures and markets electronic hardware and application software products, and engages in electronic manufacturing services primarily in the telecommunication industry. The company focuses on three major telecommunications markets. The first is the monitoring of alarms from PBXs, voice mail systems and data networks. The second telecommunications market is in the Digital Switching Systems arena which involves providing telephone switches to Small and Medium Business Markets as well as advanced Automatic Call Distribution. The company's premier product in this market is the 20-20(TM) switching system. The third telecommunications market is VoIP. TERWIN MORTGAGE: Moody's Downgrades Ratings on 37 Cert. Classes --------------------------------------------------------------- Moody's Investors Service downgraded 37 certificates and placed on review for further possible downgrade two certificates from eight transactions issued by Terwin Mortgage Trust. The transactions are backed by second lien loans. The certificates were downgraded because the bonds' credit enhancement levels, including excess spread and subordination were too low compared to the current projected loss numbers at the previous rating levels. The actions take into account the continued and worsening performance of transactions backed by closed-end-second and home equity line of credit collateral. Substantial pool losses of over the last few months have eroded credit enhancement available to the mezzanine and senior certificates. Despite the large amount of write-offs due to losses, delinquency pipelines have remained high as borrowers continue to default. Complete rating actions are: Issuer: Terwin Mortgage Trust 2006-1 -- Cl. II-A-1b, Downgraded to Ba2 from Aa3; Placed under Review for further Possible Downgrade -- Cl. II-G, Downgraded to Ba2 from Aaa; Placed Under Review for further Possible Downgrade -- Cl. II-M-A, Downgraded to Caa1 from A1 -- Cl. II-M-1, Downgraded to Caa3 from Baa2 -- Cl. II-M-2, Downgraded to Ca from Ba1 -- Cl. II-M-3, Downgraded to C from Caa2 -- Cl. II-B-1, Downgraded to C from Ca Issuer: Terwin Mortgage Trust 2006-10SL -- Cl. G, Downgraded to B3 from Aaa -- Cl. M-1, Downgraded to C from Ba3 -- Cl. M-2, Downgraded to C from B2 -- Cl. M-3, Downgraded to C from Caa3 Issuer: Terwin Mortgage Trust 2006-12SL -- Cl. A-IO, Downgraded to B3 from Aaa -- Cl. G, Downgraded to B3 from Aaa -- Cl. M-1, Downgraded to C from B1 -- Cl. M-2, Downgraded to C from Caa3 Issuer: Terwin Mortgage Trust 2006-2HGS -- Cl. G, Downgraded to B3 from Aaa -- Cl. M-1, Downgraded to C from Baa2 -- Cl. M-2, Downgraded to C from Ba1 -- Cl. M-3, Downgraded to C from Caa1 Issuer: Terwin Mortgage Trust 2006-4SL -- Cl. G, Downgraded to B2 from Aaa -- Cl. M-1, Downgraded to Caa3 from Baa3 -- Cl. M-2, Downgraded to Ca from Ba3 -- Cl. M-3, Downgraded to C from Caa1 -- Cl. B-1, Downgraded to C from Caa3 Issuer: Terwin Mortgage Trust 2006-6 -- Cl. I-G, Downgraded to B2 from Aaa -- Cl. I-M-1, Downgraded to Caa3 from Ba1 -- Cl. I-M-2, Downgraded to Ca from Ba3 -- Cl. I-M-3, Downgraded to C from Caa1 -- Cl. I-B-1, Downgraded to C from Caa3 -- Cl. I-B-2, Downgraded to C from Ca Issuer: Terwin Mortgage Trust 2006-8 -- Cl. I-G, Downgraded to B3 from Aaa -- Cl. I-M-1, Downgraded to Ca from Ba1 -- Cl. I-M-2, Downgraded to C from Ba3 -- Cl. I-M-3, Downgraded to C from Caa2 Issuer: Terwin Mortgage Trust 2007-1SL -- Cl. G, Downgraded to B3 from Aaa -- Cl. M-1, Downgraded to C from Ba2 -- Cl. M-2, Downgraded to C from Ba3 THOMPSON PRODUCTS: Gets Authority to Employ DLA Piper as Counsel ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware gave permission to Thompson Products Inc. and its debtor-affiliates to employ DLA Piper US LLP as their counsel, nunc pro tunc to Feb. 19, 2008. As counsel to the Debtors, DLA Piper US LLP will advise the Debtors with respect to their powers and duties as debtors-in- possession and to provide other necessary legal advice in connection with their Chapter 11 bankruptcy cases. Prior to bankruptcy filing, DLA Piper billed the Debtors $269,173.06 for fees and expenses. The Debtors paid $187,659.55 and DLA Piper wrote off $81,513.51 relating to prepetition services rendered to the Debtors and will not seek payment of that amount. DLA Piper will bill the Debtors for services rendered at its regular hourly rates. DLA Piper professionals bill: Timothy W. Walsh, Esq. Partner $800 per hour Vincent J. Roldan, Esq. Associate $630 per hour Mark C. Smith, Esq. Associate $355 per hour Timothy W. Walsh, Esq., a partner at DLA Piper, attested that his firm does not hold or represent any interest adverse to the Debtors or their estates, and that the firm is a "disinterested person" as defined in Section 101(14) of the bankruptcy code. Headquartered in Lakeville, Massachussetts, Thompson Products Inc. -- http://www.thompsonproductsinc.com/-- makes and sells photo albums, frames, scrapbooks and stationeries. The company and two of its affiliates filed for Chapter 11 protection on Feb. 19, 2008 (Bankr. D.Del., Case No. 08-10319). No trustee or examiner has been appointed in the Debtors' Chapter 11 cases. Eric Michael Sutty, Esq. and Justin K. Edelson, Esq. at Bayard, P.A. represent the Debtors as local counsel. When Thompson Products filed for bankruptcy, it listed between $1 million to $100 million in assets and between $1 million to $100 million in liabilities. THOMPSON PRODUCTS: Obtains Permission to Employ Albert Mink as CRO ------------------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware granted authority to Thompson Products Inc. and its debtor-affiliates to employ Albert J. Mink as their chief restructuring advisor, nunc pro tunc to Feb. 19, 2008. Mr. Mink, who was appointed interim chief financial officer of the Debtors in 2005, is expected to assist the Debtors' bankruptcy counsel with the development of any chapter 11 plan and disclosure statement as well as assist in the negotiations in connection with any proposed DIP financing. As compensation for his services as chief restructuring officer, Mr. Mink will be paid at a rate of $290 per hour. Mr. Mink attested to the Court that he does not hold or represent any interest adverse to the Debtors or their estates. Headquartered in Lakeville, Massachussetts, Thompson Products Inc. -- http://www.thompsonproductsinc.com/-- makes and sells photo albums, frames, scrapbooks and stationeries. The company and two of its affiliates filed for Chapter 11 protection on Feb. 19, 2008 (Bankr. D.Del., Case No. 08-10319). No trustee or examiner has been appointed in the Debtors' Chapter 11 cases. Timothy W. Walsh, Esq., Vincent J. Roldan, Esq., and Mark C. Smith, Esq., at DLA Piper represent the Debtors in their restructuring efforts. Eric Michael Sutty, Esq. and Justin K. Edelson, Esq. at Bayard, P.A. represent the Debtors as local counsel. When Thompson Products filed for bankruptcy, it listed between $1 million to $100 million in assets and between $1 million to $100 million in liabilities. THORNBURG MORTGAGE: S&P Junks Rating on ABCP Notes From 'A-1+' -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on the extendible asset-backed commercial paper (ABCP) notes issued by Thornburg Mortgage Capital Resources LLC to 'C' from 'A-1+' and removed it from CreditWatch, where it was placed with negative implications on March 7, 2008. The rating action is based on the recent and steep decrease of the reported weighted average price of the ABCP program's underlying collateral, which consists of residential mortgage backed securities. Over the last three weeks, the reported weighted average price of the collateral has dropped approximately 10 points and has declined by four points in the last week. According to the most recent reported pricing information, the current market value of Thornburg's portfolio is no longer sufficient to cover the amount of Thornburg's outstanding ABCP due on April 14, 2008. Unlike traditional ABCP vehicles that benefit from third-party liquidity, the market value of the underlying collateral of Thornburg's ABCP is a primary source of liquidity, and is therefore a key consideration in S&P's rating analysis of the notes. The lowered rating reflects Standard & Poor's opinion that Thornburg's outstanding ABCP notes from this program are currently vulnerable to nonpayment and are dependent on favorable economic conditions to meet their financial commitments. VERMILLION INC: December 31 Balance Sheet Upside-Down by $11MM -------------------------------------------------------------- Vermillion Inc.'s balance sheet at Dec. 31, 2007, showed total assets $24.053 million, and total liabilities of $35.515 million, resulting to a total stockholders' deficit of $11.462 million. The company released financial results for the fourth quarter and year ended Dec. 31, 2007. The net loss for the fourth quarter of 2007 was $3.3 million, compared to $1.9 million for the fourth quarter of 2006. For the full year of 2007, the net loss was $21.3 million compared to a net loss of $22.1 million in the same period in 2006. Total operating expenses for the fourth quarter of 2007 were $4.9 million, compared to $7.7 million in the same period last year. The decrease in operating expenses was due to reductions in research and development and general and administrative expenses, as well as the elimination of selling and marketing expenses associated with the company\u2019s former instrument business. At Dec. 31, 2007, the company's cash, short- and long-term investments, totaled $20.4 million, compared to $17.7 million at Dec. 31, 2006. Net cash used in operating activities in the fourth quarter of 2007 was $4.3 million. About Vermillion Inc. Based in Fremont, California, Vermillion Inc. (NASDAQ:VRMLD) -- http://www.vermillion.com/-- fka Ciphergen Biosystems Inc. is involved in the discovery, development and commercialization of specialty diagnostic tests that provide physicians with information, with which to manage their patients' care and that improve patient outcomes. Incorporated on Dec. 9, 1993, the company, along with its prestigious scientific collaborators, has ongoing diagnostic programs in oncology, hematology, cardiology and women's health with an initial focus in ovarian cancer. WELWIND ENERGY: Posts CDN$752,399 Net Loss in Qtr. Ended Sept. 30 ----------------------------------------------------------------- Welwind Energy International Corp. reported a net loss of CDN$752,399 on revenue of CDN$52,495 for the third quarter ended Sept. 30, 2007, compared with a net loss of CDN$526,248 on revenue of CDN$33,758 for the same period ended Sept. 30, 2006. The increase in sales was due to the company obtaining two new customers during the period. The increase in net loss was a result of the increase in stock based compensation from CDN$287,784 for the three month period ended Sept. 30, 2006, to CDN$559,217 for the three month period ended Sept. 30, 2007. Balance Sheet At Sept. 30, 2007, the company's consolidated balance sheet showed CDN$3,047,670 in total assets, CDN$782,652 in total liabilities, and CDN$2,265,018 in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?2a06 Going Concern Doubt Manning Elliott LLP, in Vancouver, Canada, expressed substantial doubt about Welwind Energy International Corporation's ability to continue as a going concern after auditing the company's consolidated financial statements as of the years ended Dec. 31, 2006, and 2005. The auditing firm pointed to the company's significant operating losses and the need for additional equity/debt financing to sustain operations. About Welwind Energy Headquartered in Maple Ridge, British Columbia, Canada, Welwind Energy International Corp., fka Vitasti Inc. (OTC BB: WWEI) -- http://www.welwind.com/-- was founded in 2005 to build, own and operate wind farms on an international scale. Its current project is focused on bridging the North America-China link by building wind farms in China. Concurrently with the development of the wind farm projects, the company intends to continue to operate the retail bakery and food store and its manufacturing and distribution of specialty health food products. ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Shimero R. Jainga, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Melanie C. Pador, Ludivino Q. Climaco, Jr., Loyda I. Nartatez, Tara Marie A. Martin, Philline P. Reluya, Joseph Medel C. Martirez, Ma. Cristina I. Canson, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2008. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***