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 ----- -- ---- ------------------ &nb