T R O U B L E D C O M P A N Y R E P O R T E R Wednesday, April 9, 2008, Vol. 12, No. 84 Headlines 1ST CHOICE: Files Chapter 7 Liquidation in Santa Barbara A GRACE: Case Summary & Three Largest Unsecured Creditors A KAY GLENN: Case Summary & 14 Largest Unsecured Creditors ABITIBIBOWATER INC: Canada Unit's Exchange Offer for 3 Notes Ends ABITIBIBOWATER INC: Bowater Unit Inks Changes to Credit Agreements ADAM AIRCRAFT: Assets Bought by AAI Acquisition for $10 Million ADVANCED MICRO: Expects 15% Less 1st Qtr. Revenues, Plans Job Cuts ALLEGIANT TRAVEL: High Fuel Prices Cue Cancellation of Flights ALLIANCE FINANCIAL: Voluntary Chapter 11 Case Summary ALLIANCE IMAGING: Appoints Aaron Bendikson to Board of Directors AMERICAN MORTGAGE: Continues to Face Liquidity Woes, Deloitte Says ASPEN TECH: ATF II Completes Payments to Key Bank Facility ATARI INC: Curtis Solsvig Resigns as Chief Restructuring Officer AVIZA TECHNOLOGY: Plans to Terminate 15% Employees Worldwide BEAR STEARNS: Half of Employees To Be Laid Off, Report Says BEAR STEARNS: Broker Can Work for Morgan Stanley, Court Rules BEAR STEARNS: Gets NYSE Nod to Issue 95MM Shares to JPMorgan Chase BEN CASTON: Faces $4 Million Foreclosure from Arkansas Bank BH BOULDERS: Files Schedules of Assets and Liabilities BLAST ENERGY: Unit Receives $6 Million as Litigation Settlement BOMBAY COMPANY: Wants to Hire A.S.K. Financial as Special Counsel BRANDYWINE REALTY: Fitch Holds 'BB+' Rating on Preferred Stock BUFFALO PITT: Voluntary Chapter 11 Case Summary CA INC: Cuts 2,800 Jobs in Expanded 2007 Restructuring Plan CAPCO ENERGY: Case Summary & 20 Largest Unsecured Creditors CARLYLE CAPITAL: Bedell Cristin Asked to Provide Legal Advice CASA DE CAMBIO: Wants to Hire Luis V. Echeverria as Consultant CATHOLIC CHURCH: Tort Claims Against Davenport May Be Estimated CATHOLIC CHURCH: US Trustee Seals Names of Fairbanks Panel Members CATHOLIC CHURCH: Dorsey & Whitney Ok'd as Fairbank's Local Counsel CATHOLIC CHURCH: Counsels Agree to Mediation in Portland's Case CELL THERAPEUTICS: Scott Stromatt Resigns as EVP of Clinical Dev't CHATEAUX FRAMING: Voluntary Chapter 11 Case Summary CHRYSLER LLC: Plastech Can Get Funding from Lender Consortium CHRYSLER LLC: Outsources IT Management Dept., Eliminates 200 Jobs CLEAR CHANNEL: Trial on Case Over Sale Set May; Banks Countersue CONGOLEUM CORP: Insurers Have Standing to Oppose Plan, Court Says COREL CORP: Randall Eisenbach Resigns as EVP of Operations CSFB HOME: Fitch Downgrades Ratings on $109.2MM Certificates DAMSEL PROPERTIES: Case Summary & 12 Largest Unsecured Creditors DELPHI CORP: Court Extends Indemnification Agreement with GM DELPHI CORP: Court Extends Time on IRS Pension Funding Waivers DELTA AIR: BNY Says 1982 Indenture Not a "True Lease" DELTA AIR: Court Approves Stipulation to Clarify Aircraft Claims DETROIT MEDIA: Involuntary Chapter 11 Case Summary DIAMOND GLASS: Section 341(a) Creditors' Meeting Set for May 8 DIAMOND GLASS: Gets Court's Nod on Requests to Continue Business DURA AUTOMOTIVE: Wants Court Nod on Atwood Capital Adjustment Pact EDUCATION RESOURCES: Files Chapter 11 Petition in Massachusetts EDUCATION RESOURCES: Case Summary & 143 Largest Unsec. Creditors EDUCATION RESOURCES: Fitch Junks Financial Strength Rating from A ENRON CORP: Jeffrey Skilling Seeks Reversal of Convictions ENRON CORP: Wants $26 Million in RWE Trading Claims Disallowed EXIDE TECH: Board Appoints Lou Martinez as Corporate Controller FISHER COMMUNICATIONS: Board Urges 2008 Incentive Plan Approval FEDDERS CORP: Court Okays Walkersville Sale Bidding Procedures FIELDSTONE MORTGAGE: Creditors Panel Balks at C-BASS Settlement FIRST MARBLEHEAD: Shares Dropped 37% after TERI's Bankruptcy FIRST MARBLEHEAD: Moody's Reviews 93 Notes' Ratings For Likely Cut FISHER COMMUNICATIONS: Board Urges 2008 Incentive Plan Approval FORD MOTOR: Plastech Can Get Funding from Lender Consortium FORD MOTOR: Overall March 2008 Sales in Canada Decrease 1.3% FORD MOTOR: Integrates Global Product Dev't and Purchasing Teams FORD MOTOR: Details 2007 Executive Compensation in Proxy Statement FREEPORT-MCMORAN: Strong Liquidity Cues Fitch to Lift Ratings FULTON LAND: Files Schedules of Assets and Liabilities GENCORP INC: Selling Rio Del Oro Assets to Elliott Homes for $10MM GENERAL MOTORS: Plastech Can Get Funding from Lender Consortium GENERAL MOTORS: Court Extends Indemnification Pact with Delphi GMAC LLC: Buys $1.2 Billion of Residential Capital's Debt GMAC LLC: To Terminate Remainder of CARAT 2005-SN1 on April 15 GRAN TIERRA: AMEX Approves Common Stock Listing Application GRAPHIC PACKAGING: Fitch Junks Rating on Sr. Subordinated Notes HOOP HOLDINGS: Selling Assets for $55 Mil. to Walt Disney et al. INTERSTATE BAKERIES: Amends Pact Raising DIP Financing by $50 Mil. INTERSTATE BAKERIES: Wants to Reject New Jersey, et al. Leases INTERSTATE BAKERIES: Wants to Sell 4 Real Properties in California INTERPUBLIC GROUP: Fitch Lifts ID Rating to BB+ from BB- JEFFERSON COUNTY: Unveils Plan While Denying Possible Filing JOURNAL REGISTER: Lazard Freres Assists in Options Evaluation JOURNAL REGISTER: Receives Delisting Notice from NYSE KERSHNER PROPERTIES: To Surrender $8 Million Worth of Properties KERYX BIOPHARMACEUTICALS: Plans to Slash 50% Jobs to Conserve Cash KINETIC CONCEPTS: To Acquire LifeCell Corp. for $1.7 Bil. in Cash LANDRY'S RESTAURANTS: Fertita Decreases Offer to $21 Per Share LANDRY'S RESTAURANTS: Paying Dividend of $0.05 Per Share on Apr 25 LEXINGTON PRECISION: Can Use CapitalSource et al.'s Collateral LEXINGTON PRECISION: Gets Initial OK to Use $4 Mil. DIP Facility LINEN N THINGS: Prepackaged Bankruptcy Being Mulled by Apollo LINENS 'N THINGS: Worse Performance Prompts Fitch's Junk Ratings LOUISIANA RIVERBOAT: Gets Initial Approval to Use Cash Collateral L TERSIGNI: Examiner Says Overbilling Could Reach $10 Million MANCHESTER INC: Inks Restructuring Financing Deal with Palm Beach MD HOMES: Two Homes Under Foreclosure by Simmons First Bank MEMORY PHARMA: Has Until April 17 to Submit Equity Compliance Plan MERITAGE MORTGAGE: Fitch Lowers Ratings on Eight Cert. Classes MEYER CONSTRUCTION: ANB Seizes $1.8 Million in Properties MONITOR OIL: Judge Glenn Denies Exclusive Periods Extension Plea MONITOR OIL: Gets Creditors Okay to Access $3.5 Million in Cash MTR GAMING: Wells Fargo Resigns as Trustee for Indentures NATIONAL CENTURY: JPMorgan Settles SEC Charges for $2,000,000 NATIONAL CENTURY: Ex-CEO Convicted on Witness Tampering Complaint NEUMANN HOMES: Court Okays Bidding Procedure for Kaco Asset Sale NEUMANN HOMES: Court Approves Sale of Six Properties to RFC OMNICARE INC: Board Approves Repurchase of $100MM Common Stock OTC INTERNATIONAL: Voluntary Chapter 11 Case Summary PACIFIC LUMBER: Receives Default Notice Under Marathon Loan PACIFIC LUMBER: Logan & Co. Reports Voting Results on Rival Plans PACIFIC LUMBER: Judge Schmidt Will Likely Reject Debtors' Plan PACIFIC LUMBER: BoNY Elects Ex-Gov. Wilson to Run New Scopac PEOPLES CHOICE: Files Second Amended Plan & Disclosure Statement PEOPLES CHOICE: Classification & Treatment of Claims Under Plan PERFORMANCE TRANS: Gets 4th Waiver on Black Diamond DIP Facility PERFORMANCE TRANS: Wants Exclusive Periods Extended to June 30 PERFORMANCE TRANS: Asks Court to Set May 30 as Claims Bar Date PERFORMANCE TRANS: Seeks Approval of 1st Lien Agreement Changes PHOENIX HOMES: To Surrender Real Properties to Two Bank Lenders PLASTECH ENGINEERED: Court Okays Funding from Lender Consortium PLY GEM: New Home Construction Weakness Cues Moody's Rating Cuts PRIMEDIA INC: Net Loss Up to $16MM in Quarter Ended December 31 RESIDENTIAL CAPITAL: Parent Buys Back $1.2BB Notes in Open Market SACO I: Moody's Junks Ratings on 39 Certificates SOUNDVIEW HOME: Fitch Chips Ratings on $1.2 Billion Certificates TENET HEALTHCARE: Subsidiary Sells North Ridge Hospital for $20M TRUMP ENTERTAINMENT: Seeking Opportunities to Sell Properties TRICOM SA: Court Adjourns Confirmation Hearing to August 6 TRUMP ENTERTAINMENT: Net Loss Up to $198MM in Year Ended Dec. 31 UBS AG: To Cut Jobs; Investors Suggest Asset Sale to Raise Capital U.S. ENERGY: Judge Drain Closes Chapter 11 Bankruptcy Case WASHINGTON MUTUAL: Gets $7 Billion New Capital from TPG WASHINGTON MUTUTAL: TPG Deal Signals Leadership Failure, CtW Says WASHINGTON MUTUAL: S&P Takes Varied Rating Actions on 1,165 Certs. WELLMAN INC: Wants Court to Reject Panel's DIP Financing Objection WELLMAN INC: Wants to Enforce Sale & Reorganization Incentive Plan WELLS FARGO: Fitch Junks Ratings on Six Certificate Classes WORNICK CO: Files Amended Chapter 11 Plan and Disclosure Statement WR GRACE: Inks $250MM Deal to Settle Asbestos-Related Claims WR GRACE: MassDEP et al. Mulls Liability Transfer Agreement WR GRACE: BoA's DIP Financing Decreased to $165 Million XERIUM TECHNOLOGIES: Obtains Default Waiver Until May 31 * Moody's Downgrades 49 Tranches From 11 Deals by Various Issuers * Moody's Puts Ratings on 23 Tranches From 11 RMBS Deals on Review * Moody's Says Weaker Economy is Driving More Rating Downgrades * S&P Cuts Ratings on 22 Tranches From 5 Cash Flows and CDO Deals * S&P Downgrades Ratings on 98 Classes From 26 RMBS Transactions * S&P Sees Positive Outlook For Global Generic Pharma Industry * Fitch Says Banks Worldwide Face Difficult Operating Environment * Fitch Says Commercial Paper Programs Reduce Exposures to CDO * Brown McCarroll Creates Subprime Litigation Practice Group * Walter A. Herring and Jay L. Krystinik Join Powell Goldstein * Upcoming Meetings, Conferences and Seminars ********* 1ST CHOICE: Files Chapter 7 Liquidation in Santa Barbara -------------------------------------------------------- 1st Choice Mortgage, aka Cameron Financial Group, filed for chapter 7 liquidation with the U.S. Bankruptcy Court for the Central District of California (Santa Barbara), reports Antonio A. Prado of San Luis Obispo in California. The Debtor listed $984,000 in assets and $28 million in liabilities, including $1 million owed to San Luis Trust Bank, report says, citing court documents. Other creditors include Morgan Stanley, Bear Stearns, Countrywide Financial and Deutsche Bank, which are owed from $400,000 to $8.2 million, report reveals. The report cites a message on the company's Web site revealing that it secured various debts of at least $240,000. The company's site is no longer accessible at press time. According to the report, the company serviced very risky loans to borrowers with "bruised credit" without asking for down payments and financing. In addition, the company faces several cases as defendant, report says, citing court documents. Sandra McBeth, Esq., is the company's counsel. 1st Choice Mortgage, aka Cameron Financial Group -- http://www.cameronfinancial.com/-- provides loans. Company President Shannon Faries and Chief Executive Cary Fierro are c- owners of 1st Choice. A GRACE: Case Summary & Three Largest Unsecured Creditors --------------------------------------------------------- Debtor: A. Grace II, Inc. 5515 Palmyra Avenue Las Vegas, NV 89146 Bankruptcy Case No.: 08-13058 Chapter 11 Petition Date: April 1, 2008 Court: District of Nevada (Las Vegas) Judge: Linda B. Riegle Debtor's Counsel: David E. Doxey, Esq. David J. Winterton & Assoc., Ltd. 211 North Buffalo Drive, Suite A Las Vegas, NV 89145 Tel: (702) 363-0317 Fax: (702) 363-1630 ddoxey@davidwinterton.com Total Assets: $1,600,100 Total Debts: $885,500 Debtor's list of its Three Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Ruth Kennedy Trade debt $288,000 5515 Palmyra Avenue Las Vegas, NV 89146 Clark County Assessors $4,000 500 Grand Central Las Vegas, NV 89101 Irma Garcia Bank Loan $3,500 1520 Red Rock Las Vegas, NV 89146 A KAY GLENN: Case Summary & 14 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: A. Kay Glenn dba West End Pit Stop 1349 Old Murphy Road Franklin, NC 28734 Bankruptcy Case No.: 08-20045 Chapter 11 Petition Date: April 3, 2008 Court: Western District of North Carolina (Bryson City) Judge: George R. Hodges Debtor's Counsel: D. Rodney Kight, Jr., Esq. Kight Law Office 9 SW Pack Square, Suite 200 Asheville, NC 28801 Tel: (828) 255-9881 Fax: (828) 255-9886 info@kightlaw.com Total Assets: $1,749,721 Total Debts: $901,210 Debtor's list of its 14 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ NC Department of Revenue Blanket lien on $120,000 P.O. box 1168 estate Raleigh, NC 27602 Pam Gale $20,887 P.O. Box 243 Welaka, FL 32193 IRS 941 $8,000 P.O. Box 21126 Philadelphia, PA 19114 Discover Financial Consumer debt $6,066 American Express Consumer debt $5,200 Ricky Taylor Consumer debt $5,000 Citi Credit Services Consumer debt $2,750 Checkcare Consumer debt $2,025 Sears Bankruptcy Recovery Consumer debt $1,838 Department of Veterans Affairs Medical Bills $1,637 Beverly Gilliard Consumer debt $1,250 Chase Bankruptcy Support Consumer debt $813 Chevron Credit Bank Consumer debt $277 Citizens Bank Deficiency after Unknown foreclosure ABITIBIBOWATER INC: Canada Unit's Exchange Offer for 3 Notes Ends ----------------------------------------------------------------- AbitibiBowater Inc. disclosed that the exchange offers by Abitibi-Consolidated Company of Canada, an indirect subsidiary of AbitibiBowater, expired at 12:00 midnight, New York City time, on April 4, 2008. The exchange offers were for the 6.95% Senior Notes due 2008, 5.25% Senior Notes due 2008 and 7.875% Senior Notes due 2009. Approximately 89.4% of the outstanding 6.95% Senior Notes, 92.1% of the outstanding 5.25% Senior Notes and 94.8% of the outstanding 7.875% Senior Notes were validly tendered in the exchange offers. As a result, ACCC issued an aggregate of approximately $292.9 million principal amount of 15.5% Senior Notes due 2010 and approximately $217.7 million in cash including payment of accrued interest to tendering note holders in connection with the exchange offers. As reported in the Troubled Company Reporter on March 12, 2008, AbitibiBowater Inc. commenced private offers to exchange notes in a private placement for a combination of cash and new 15% Senior Notes due 2010 to be issued by Abitibi-Consolidated Company of Canada. Old notes include: (i) 6.95% Senior Notes due 2008 of Abitibi- Consolidated Inc., a subsidiary of ABH; (ii) 5.25% Senior Notes due 2008 of ACCC, a subsidiary of ACI; and (iii) 7.875% Senior Notes due 2009 of Abitibi-Consolidated Finance L.P., a subsidiary of ACI. About AbitibiBowater Headquartered in Montreal, Canada, AbitibiBowater Inc. (NYSE:ABH) -- http://www.abitibibowater.com/-- was formed as a result of the combination of Abitibi-Consolidated Inc. and Bowater Incorporated. Pursuant to the transaction, Abitibi-Consolidated Inc. and Bowater Incorporated became subsidiaries of AbitibiBowater. The company produces a wide range of newsprint, commercial printing papers, market pulp and wood products and markets these products to more than 90 countries. Following the required divestiture agreed to with the U.S. Department of Justice, AbitibiBowater will own or operate 27 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. The company also has newsprint sales offices in Brazil and Singapore. The company's shares also trade at the Toronto Stock Exchange under the stock symbol ABH. * * * As reported in the Troubled Company Reporter on April 3, 2008, Fitch Ratings expects to assign a 'CCC/RR1' rating to Abitibi- Consolidated Inc.'s new $400 million 364-day senior secured term loan and new $413 million senior secured 13.75% notes due 2011. ACI's new 15.5% senior unsecured notes due 2010 being issued as partial consideration for the tender of upcoming maturing bonds have been assigned an expected rating of 'CC/RR4'. ABITIBIBOWATER INC: Bowater Unit Inks Changes to Credit Agreements ------------------------------------------------------------------ Bowater Incorporated, a subsidiary of AbitibiBowater Inc., and certain of Bowater's direct and indirect subsidiaries, entered into amendments, dated as March 31, 2008, to Bowater's U.S. and Canadian credit agreements. The Amendment to the U.S. credit agreement was entered into among Bowater and certain of the company's subsidiaries; certain lenders; and Wachovia Bank, National Association, as Administrative Agent for the various lenders under that credit agreement. The Amendment to the Canadian credit agreement was entered into among Bowater; Bowater Canadian Forest Products Inc., an indirect subsidiary of Bowater; and certain of the company's subsidiaries; certain lenders; and The Bank of Nova Scotia, as Administrative Agent for the lenders. The Amendments principally: i) withdraw the requirement that Bowater transfer the Catawba, South Carolina mill assets and related operations to a new subsidiary of Bowater; ii) require that Bowater transfer the stock in subsidiaries owning the Coosa Pines and Grenada assets to AbitibiBowater and grant the lenders first-ranking mortgages on such assets before April 30, 2008; iii) amend the "change in control" definition so that following the conversion into equity of the $350 million aggregate principal amount of AbitibiBowater 8.0% Convertible Notes due 2013 issued to Fairfax Financial Holdings Limited on April 1, 2008, no person or group may own more than 50% of the voting stock of AbitibiBowater, as compared to 30% prior to the Amendments; iv) provide an unsecured guarantee by AbitibiBowater of obligations under the U.S. credit agreements; v) permit AbitibiBowater to incur the AbitibiBowater Convertible Debt and permit Bowater to send distributions to AbitibiBowater to service interest on such debt so long as certain conditions are satisfied; vi) permit Bowater to send distributions to AbitibiBowater to fund 50% of AbitibiBowater's overhead expenses plus, if no default exists, up to $10,000,000 per year; vii) impose additional reporting obligations on Bowater and implement more extensive eligibility criteria for the assets that may be used in determining the borrowing base under the facility, thereby reducing the funds available under the credit facility; and viii) extend until April 15, 2008, the time for delivery of Bowater's 2007 audited financial statements, related compliance and other certificates and its 2008 annual business plan and projections. A full-text copy of the Fourth Amendment, dated as of March 31, 2008, to the U.S. Credit Agreement dated as of May 31, 2006, is available for free at http://researcharchives.com/t/s?2a1e A full-text copy of the Fourth Amendment, dated as of March 31, 2008, to the Canadian Credit Agreement dated as of May 31, 2006, is available for free at http://researcharchives.com/t/s?2a1f About AbitibiBowater Headquartered in Montreal, Canada, AbitibiBowater Inc. (NYSE: ABH) (TSE: ABH) -- http://www.abitibibowater.com/-- produces a wide range of newsprint, commercial printing papers, market pulp and wood products. Following the required divestiture agreed to with the U.S. Department of Justice, AbitibiBowater will own or operate 27 pulp and paper facilities and 35 wood products facilities located in the United States, Canada, the United Kingdom and South Korea. At Dec. 31, 2007, the company's consolidated balance sheet showed $10.319 billion in total assets, $8.420 billion in total liabilities, and $1.899 billion in total stockholders' equity. * * * As reported in the Troubled Company Reporter on April 3, 2008, Fitch Ratings affirmed and removed from Rating Watch Negative its 'CCC' issuer default ratings for both AbitibiBowater Inc. and Bowater Inc. ADAM AIRCRAFT: Assets Bought by AAI Acquisition for $10 Million --------------------------------------------------------------- AAI Acquisition Inc. bought the assets of bankrupt Adam Aircraft Inc., aka Adam Aircraft Industries, for $10 million plus assumption of debts, Kelly Yamanouchi writes for The Denver Post. Under the sale transaction, the new buyer has the option to hire former employees, relates Denver Post. A sale hearing will be conducted today, April 9, 2008. Paul Zarnowiecki, Esq., at Orrick, Herrington & Sut cliffe LLP in Washington, D.C., is counsel to AAI Acquisition, report says. As reported in the Troubled Company Reporter on March 17, 2008, Adam Aircraft Inc. was publicly selling its assets on April 4, 2008. Potential buyers were asked to make deposits of $250,000 and place a minimum bid of $10 million by April 3. About Adam Aircraft Denver, Colorado-based Adam Aircraft Inc., aka Adam Aircraft Industries -- http://www.adamaircraft.com/-- designs and manufactures advanced aircraft for civil and government markets. The A500 twin-engine piston aircraft has been Type Certified by the FAA, and the A700, which is currently undergoing flight test and development. The Debtor filed for chapter 7 liquidation on Feb. 15, 2008, with the U.S. Bankruptcy Court in Colorado after failing to secure financing. It also laid off 800 workers and listed assets between $1 million and $10 million, and debts between $50 million and $100 million. ADVANCED MICRO: Expects 15% Less 1st Qtr. Revenues, Plans Job Cuts ------------------------------------------------------------------ Advanced Micro Devices Inc. expects revenue for the first quarter ended March 29, 2008, to be approximately $1.5 billion, a 22% increase compared to the first quarter of 2007, and down 15% compared to the fourth quarter of 2007. The decrease is due to lower than expected sales across all business segments. AMD had previously anticipated first quarter revenue to decline in line with seasonality. As reported in the Troubled Company Reporter on Jan. 21, 2008, AMD reported results of its fourth quarter and year ended Dec. 29, 2007. In the fourth quarter of 2007, AMD reported net loss of $1.772 billion and an operating loss of $1.678 billion. Fourth quarter net loss included charges of $1.675 billion, of which $1.669 billion were operating charges. The non-cash portion of the fourth quarter charges was $1.606 billion. Fourth quarter 2007 revenue was $1.770 billion, an 8% increase compared to the third quarter of 2007 and flat compared to the fourth quarter of 2006. AMD plans to adjust its cost structure by reducing its workforce by approximately 10% by the end of the third quarter of 2008. As a result of these reductions, AMD expects to record a restructuring charge in the second quarter of 2008. At the time of this release, AMD is unable to determine the estimated amount of the charge as the details are still being finalized. AMD will report first quarter 2008 results after market close on April 17, 2008. Headquartered in Sunnyvale, California, Advanced Micro Devices Inc. (NYSE: AMD) -- http://www.amd.com/-- provides innovative processing solutions in the computing, graphics and consumer electronics markets. * * * As reported in the Troubled Company Reporter on Jan. 28, 2008, Fitch downgraded these ratings on Advanced Micro Devices Inc., including its Issuer Default Rating to 'B-' from 'B'; and its Senior unsecured debt to 'CCC'/RR6 from 'CCC+/RR6'. The Rating Outlook remains Negative. ALLEGIANT TRAVEL: High Fuel Prices Cue Cancellation of Flights -------------------------------------------------------------- Allegiant Travel Company's wholly owned unit, Allegiant Air LLC, said it will cancel flights between Fort Wayne and Fort Lauderdale, Florida, effective May 31, 2008, Kimberly Peterson of The Journal Gazette relates. The company explained, however, that it won't cease operations at Fort Wayne but will keep it "as a market" and added that Orlando and Tampa are "outstanding" sources of revenue for Allegiant, says Gazette. The airline company pointed to the rising fuel costs, Gazette quotes Allegiant spokeswoman Tyri Squyres as saying. She said that there are "no signs of improvement" in the current trend, according to the report. Allegiant revealed that airports in Rockford and Peoria, Illinois will lose flights to Fort Lauderdale and Santa Maria, California will lose flights to Phoenix-Mesa, Arizona by May 31, Gazette notes. In 2008 alone, Allegiant suspended 15 routes throughout the country due to fuel costs, Gazette reports. On March 14, 2008, the company cut flights between Fort Wayne and Las Vegas over fuel costs, report recounts. Flight suspensions happen throughout the industry, Gazette reports, citing Dave Young, vice president of Greater Fort Wayne Chamber of Commerce's air services. Mr. Young told Gazette that he learned about Frontier Airlines canceling flights to Indianapolis and Cancun, Mexico and Nashville. However, he said that passenger traffic at Forty Wayne continues to be strong in 2008, increasing to at least 17% as compared with last year's, Gazette notes. About Allegiant Travel Las Vegas, Nevada-based Allegiant Travel Company (NASDAQ: ALGT) -- http://www.allegiantair.com/-- is a leisure travel company that links travelers in small cities to leisure destinations, such as Las Vegas, Nevada; Phoenix, Arizona; Ft. Lauderdale, Florida; Orlando, Florida, and Tampa/St. Petersburg, Florida. The company operates a passenger airline marketed to leisure travelers in small cities, allowing it to sell air travel both on a stand-alone basis and bundled with hotel rooms, rental cars and other travel related services. Allegiant Travel has fixed fee flying contracts with three separate subsidiaries of Harrah's Entertainment Inc., which collectively accounted for 6.5% of total revenues during the year ended Dec. 31, 2007. Under a contract signed in October 2007, the company began flying for the third subsidiary of Harrah's Entertainment in January 2008. Allegiant Air LLC is a wholly owned subsidiary of Allegiant Travel. ALLIANCE FINANCIAL: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Alliance Financial Capital, Inc. 700 Airport Boulevard, Suite 430 Burlingame, CA 94010 Bankruptcy Case No.: 08-30575 Type of Business: The Debtor provides accounts receivable financing. http://www.alliancefinancialcap.com/ Chapter 11 Petition Date: April 4, 2008 Court: Northern District of California (San Francisco) Judge: Dennis Montali Debtor's Counsel: Joan M. Chipser, Esq. (joanchipser@sbcglobal.net) 1 Green Hills Court Millbrae, CA 94030 Tel: (650) 697-1564 Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million The Debtor did not file a list of its largest unsecured creditors. ALLIANCE IMAGING: Appoints Aaron Bendikson to Board of Directors ---------------------------------------------------------------- At a meeting of the Board of Directors of Alliance Imaging Inc., held on March 31, 2008, the Board of Directors approved the appointment of Aaron A. Bendikson to the Board to fill the vacancy created by the resignation of Stephen A. Kaplan. Mr. Bendikson's appointment will become effective immediately after Mr. Kaplan's resignation becomes effective, which will occur at the time of the company's 2008 Annual Meeting. Mr. Bendikson is one of the designees of OCM Principal Opportunities Fund IV L.P., or Oaktree, an investment fund affiliated with Oaktree Capital Group Holdings GP LLC, or Oaktree Group, which beneficially owns approximately 45.3% of the outstanding shares of the company's common stock. In accordance with the terms of a Governance and Standstill Agreement, dated March 16, 2007, among Oaktree, Alliance and MTS Health Investors II L.P., or MTS, Oaktree and MTS currently have the right to designate three members of the company's Board of Directors. As a member of the company's Board of Directors, Mr. Bendikson will be entitled to the compensation that the company pays to its non-employee directors. About Alliance Imaging Inc. Based in Anaheim, California, Alliance Imaging Inc. (NYSE: AIQ) -- http://www.allianceimaging.com/-- is a provider of shared-service and fixed-site diagnostic imaging services, based upon annual revenue and number of diagnostic imaging systems deployed. Alliance provides outpatient diagnostic imaging and radiation therapy services primarily to hospitals and other healthcare providers on a shared and full-time service basis, in addition to operating a growing number of fixed-site imaging centers. The company had 488 diagnostic imaging systems, including 310 MRI systems and 79 PET or PET/CT systems, and served over 1,000 clients in 44 states at Dec. 31, 2007. The company operated 88 fixed-site imaging centers (five in unconsolidated joint ventures), which includes systems installed in hospitals or other buildings on or near hospital campuses, medical groups' offices, or medical buildings and retail sites. The company also operated 12 radiation therapy centers (two in unconsolidated joint ventures) as of Dec. 31, 2007. * * * As reported in the Troubled Company Reporter on Feb. 27, 2008, Alliance Imaging Inc.'s consolidated balance sheet at Dec. 31, 2007, showed $664.53 million in total assets and $681.50 million in total liabilities, resulting in a $16.97 million total stockholders' deficit. AMERICAN MORTGAGE: Continues to Face Liquidity Woes, Deloitte Says ------------------------------------------------------------------ According to a Form 10-K filing with the U.S. Securities and Exchange Commission, American Mortgage Acceptance Company incurred a net loss of $58.5 million on total revenues of $60.1 million for the year ended Dec. 31, 2007, compared to a net income of $2.6 million on total revenues of $31.6 million in 2006. The company had total assets of $666 million, total liabilities of $645 million, and a shareholders' equity of $20.6 million at Dec. 31, 2007, compared to total assets of $720 million, total liabilities of $635 million, and a shareholders' equity of $85 million at Dec. 31, 2006. AMAC's net loss for the year ended Dec. 31, 2007 were impacted by: i) losses resulting from the sale of twenty-four first mortgage loans, two Commercial Mortgage-Backed Securities and the remaining portfolio of debt securities totaling approximately $19.1 million; ii) impairments recorded for certain of AMAC's mortgage loans and CMBS totaling approximately $38.3 million; iii) losses incurred upon the termination of certain interest rate swaps totaling approximately $10.3 million; and iv) expenses related to changes in the fair value of certain interest rate swaps to which AMAC does not apply hedge accounting totaling approximately $1.3 million. The company's independent auditor Deloitte & Touche LLP relates that developments in the credit markets have reduced the company's liquidity. Declining interest rates coupled with widening credit spreads have led to reduced asset values. In order to meet margin calls on the company's leveraged assets, the company has been required to sell assets and record losses. Further reductions in asset values or further margin calls may require the company to continue to sell assets and realize further losses. As a result, the company has suspended investment activity in order to manage liquidity until market conditions improve. "In light of the severe impact on our company from the unprecedented credit crisis which began in the summer of 2007, AMAC's focus continues to be on stabilizing our balance sheet and paying down our debt," said J. Larry Duggins, Chief Executive Officer of AMAC. "Importantly, the overall quality of the assets in our portfolio has remained stable, in spite of widespread market dislocations." "When the commercial mortgage collateralized debt obligation market ground to a halt in the fall of last year, we had over $300 million of assets targeted for CDO execution financed with repurchase warehouse facilities. The combination of widening credit spreads and declining interest rates caused significant margin calls on some of our repurchase facilities and interest rate derivative contracts. In order to repay debt and meet certain margin calls, we sold $283.8 million of assets under very unfavorable market conditions. Although these sales were executed at almost 94% of par value, they resulted in a net loss of $19.1 million in 2007. We incurred further impairments in the fourth quarter due to the decline in market value of the Commercial Mortgage-Backed Securities we hold. As we move forward, we will continue to explore all strategic options to protect the value of our company," he concluded. Existing Defaults The company relates that it has invested in, and may in the future invest in, mortgage investments secured by properties in which affiliates of its advisor Centerline AMAC Manager, Inc. owns equity interests in the borrower. AMAC's declaration of trust requires that any transaction between the Advisor or any of its affiliates and AMAC be approved by a majority of the company's trustees, including a majority of the independent trustees. As of Dec. 31, 2007, the company had six mortgage loans with a total carrying value of approximately $143.3 million, and four multifamily housing first mortgage bonds with a total carrying value of approximately $4.9 million to borrowers that are affiliates of the Advisor, which represents 22.4% of AMAC's total assets. The company has a revolving credit facility with Centerline, which provides up to $80 million in borrowings and bears interest at LIBOR plus 3.0%. This facility was extended through June 2008 and contains terms that are similar to those the company would obtain from a third-party lender. In June 2008, AMAC will have the option to extend the maturity date one year, which the company expects to do. As of Dec. 31, 2007, there was approximately $77.7 million outstanding on this facility. The company admits that it has covenant compliance requirements on its related party line of credit. At Dec. 31, 2007, AMAC failed to meet certain of these requirements, causing it to be in default of the loan agreement. AMAC has not been, so far, called upon to repay this facility. About AMAC The American Mortgage Acceptance Company (AMEX: AMC) -- http://www.americanmortgageco.com/-- is a real estate investment trust that specializes in originating and acquiring mortgage loans and other debt instruments secured by multifamily and commercial properties throughout the United States. AMAC invests in mezzanine, construction and first mortgage loans, subordinated interests in first mortgage loans, bridge loans, subordinate commercial mortgage backed securities, and other real estate assets. ASPEN TECH: ATF II Completes Payments to Key Bank Facility ---------------------------------------------------------- As reported on the company's Form 8-K filed on Oct. 2, 2006, Aspen Technology Inc. and two of its special purpose entities closed a revolving credit facility for $75 million with Key Bank National Association; Key Equipment Finance Inc., as Agent; and Relationship Funding LLC, as CP Issuer. The special purpose entities the company formed in connection with this financing transaction are: Aspen Technology Funding 2006-I LLC, which is a direct subsidiary of the company; and Aspen Technology Funding 2006-II LLC, which is a direct subsidiary of ATF I. Pursuant to a Letter Agreement dated March 28, 2008, Relationship Funding received payment from ATF II on March 31, 2008, in the aggregate amount of $12,206,721.12, and Key Equipment Finance received payment from ATF II in the aggregate amount of $780,155.39. The Letter Agreement provides that all obligations under the Loan Agreement were terminated and satisfied upon completion of these payments, except for obligations arising under the terms of the Loan Agreement and other applicable transaction documents that, by its terms, survive the termination of the Loan Agreement or such other transaction documents, as applicable. The Letter Agreement also provides that all of the liens or security interests granted to the Agent were irrevocably and unconditionally terminated and released in full. A full-text copy of the March 28, 2008 Letter Agreement is available for free at http://researcharchives.com/t/s?2a05 About Aspen Technology Based in Cambridge, Massachusetts, Aspen Technology Inc. (Nasdaq:AZPN) -- http://www.aspentech.com/-- provides software and professional services that help process companies improve efficiency and profitability by enabling them to model, manage and control their operations. The company has locations in Brazil, Malaysia and France. At March 31, 2007, the company's consolidated balance sheet showed $273.0 million in total assets, $154.5 million in total liabilities, and $118.5 million in total stockholders' equity. The company has not yet completed the preparation of its restated financial statements necessary to complete its Form 10-K for the period ended June 30, 2007, and its Form 10-Q for the periods ended Sept. 30, and Dec. 31, 2007. As previously disclosed, the company identified errors in its accounting for sales of installments receivable. * * * Moody's Investor Service placed the company's long-term corporate family rating at B2 and its equity-linked rating at Caa1 in October 2001. These ratings still hold to date with a stable outlook. ATARI INC: Curtis Solsvig Resigns as Chief Restructuring Officer ---------------------------------------------------------------- Following the appointment of Jim Wilson as chief executive officer and president of Atari Inc., Curtis G. Solsvig III resigned as Atari's chief restructuring officer effective April 2, 2008. Mr. Solsvig will continue to provide services to Atari pursuant to an engagement letter previously entered into between Atari and AlixPartners LLP, which was retained to assist Atari through its restructuring process. About Atari Inc. Headquartered in New York, Atari Incorporated, (NASDAQ: ATAR) -- http://www.atari.com/-- publishes and distributes interactive entertainment software in the U.S. The company's 1,000+ published titles distributed by the company include hard-core, genre- defining franchises such as Test Drive(R); and mass-market and children's franchises such Dragon Ball Z(R). Atari Inc. is a majority-owned subsidiary of France- based Infogrames Entertainment SA, an interactive games publisher in Europe. As reported in the Troubled Company Reporter on Feb. 20, 2008, Atari Inc.'s consolidated balance sheet at Dec. 31, 2007, showed $43.5 million in total assets and $60.3 million in total liabilities, resulting in a $16.8 million total stockholders' deficit. Going Concern Doubt New York-based Deloitte & Touche LLP expressed substantial doubt about Atari's ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended March 31, 2007. The auditing firm pointed to the company's significant operating losses. As disclosed on March 21, 2008, BlueBay High Yield Investments (Luxembourg) S.A.R.L., the lender under Atari's senior secured credit facility, had agreed to extend its forbearance from exercising its remedies with respect to certain violations of covenants under the credit facility until the earliest to occur of (i) March 17, 2008, (ii) additional covenant defaults, other than the ones existing as the date of the forbearance agreement or (iii) any action that is viewed to be adverse to the position of the lender. This forbearance period has expired and Atari is currently in discussions with BlueBay with respect to, among other things, an extension of the forbearance period. AVIZA TECHNOLOGY: Plans to Terminate 15% Employees Worldwide ------------------------------------------------------------ Aviza Technology Inc. plans significant restructuring following an analysis of the company's product strategy, served markets and internal operations. The restructuring of the company's global workforce, products and business operations is designed to reduce the company's cost structure, as well as improve operational execution and financial performance. Aviza will refocus on its core strengths in the areas of ALD technology for the sub-45nm nodes, and Etch and PVD technologies for the fast growing 3D-IC market segments. The end markets for these products continue to grow and are products in which Aviza believes it has competitive advantages as demonstrated by recent wins for ALD in Japan, Etch for MEMS devices and PVD for power ICs. Aviza will downsize programs, products and spending related to trench capacitor technology for DRAMs, and will decrease its overall dependence on the DRAM market. In addition to shedding assets that are not core to Aviza's future business plan, Aviza will cease development of large batch thermal systems for the trench capacitor market. However, Aviza will continue to service and support its large global installed base of these products and will retain the capability to manufacture those systems when customers require additional units. "This restructuring effort is designed to allow Aviza to focus on our core market strengths, shed some underperforming products, and ultimately position the company for growth," said Jerry Cutini, Aviza's President and CEO. "We have taken multiple actions to properly scale our company, including a recent reduction in workforce, divesting of certain operations such as our machine shop in the U.K., and focusing our spending on markets and products that have a clear path for sustainable growth. In doing so, we expect that Aviza will be better positioned to become profitable on an ongoing basis." Mr. Cutini concluded, "We feel confident that the measures we are taking will enable Aviza to lower its financial break-even point and improve our financial performance going forward." The cost of the restructuring program and other one-time charges is estimated to be in the range of $20 million to $24 million, primarily attributable to the write down of assets relating to non-core products which include inventory revaluation, cancellation of purchase commitments, and fixed assets. In addition, it includes certain costs relating to an approximate 15% world-wide reduction in force of employees and contractors. Aviza expects additional savings to occur when the Company vacates its current location in Scotts Valley, CA and relocates its headquarters to a more appropriately sized facility in Santa Clara County. Volume manufacturing will no longer be performed at Aviza's current location. Aviza anticipates that the restructuring plan will result in annualized savings of approximately $16 million to $20 million. Update to Forecast -- Fiscal 2008 Second Quarter Ended March 28 On Jan. 31, 2008, Aviza provided guidance for the second quarter of fiscal 2008 and forecasted net sales in the range of $30 million to $35 million, with an operating loss in the range of approximately $7.0 million to $8.0 million. Aviza anticipates second quarter results to be towards the low end of this guidance, excluding any restructuring charges. Preliminary Forecast -- Fiscal 2008 Third Quarter Ended June 27 Aviza currently anticipates net sales for the third quarter of fiscal 2008 to be above $36 million. An update to this guidance will be provided in the press release announcing fiscal 2008 second quarter financial results, tentatively expected to be released in early May 2008. About Aviza Technology Aviza Technology Inc. (NASDAQ: AVZA) -- http://www.aviza.com/-- designs, manufactures, sells and supports advanced semiconductor capital equipment and process technologies for the global semiconductor industry and related markets. The Company's systems are used in a variety of segments of the semiconductor market, such as advanced silicon for memory devices, advanced 3-D packaging and power integrated circuits for communications. Aviza is headquartered in Scotts Valley, Calif., with manufacturing, R&D, sales and customer support facilities located in the United Kingdom, Germany, France, Taiwan, China, Japan, Korea, Singapore and Malaysia. BEAR STEARNS: Half of Employees To Be Laid Off, Report Says ----------------------------------------------------------- CNBC's Charlie Gasparino reported Monday that JPMorgan Chase & Co. is displacing roughly 7,000 of the 14,000 Bear Stearns Companies Inc. employees, a move by JPMorgan to consolidate the two banks. Mr. Gasparino said that Bear Stearns' front-office staff will be notified by April 15, and the back-office staff will get notice in late April. However, Dow Jones Newswires reported citing a JPMorgan spokesman Joe Evangelisti that JPMorgan hasn't decided the exact numbers to be laid off and the timeframe of the layoffs. Bear Stearns Companies Inc. has also eliminated half of its 2008 summer internship and job offers following Bear Stearns' buyout by JPMorgan last month, explaining that there is an overlap of positions, especially in the investment banking division, various sources report. JPMorgan spokesman Brian J. Marchiony says that there are offers in departments where there is little or no overlap, Gordon Y. Liao of The Harvard Crimson discloses. CNNMoney.Com relates that both offers at the college and graduate- level are affected. Students offered full-time jobs will get their signing bonus and relocation fees and will be eligible for career placement services, while Bear Stearns interns, which were not hired, could receive the 10 weeks of pay they would have received if they spend their summer working at a non-profit approved by JPMorgan. As reported in the Troubled Company Reporter on March 25, 2008, JPMorgan and Bear Stearns disclosed an amended merger agreement regarding JPMorgan Chase's acquisition of Bear Stearns, raising JPMorgan's bid from $2 per share to $10 per share. In addition, JPMorgan Chase completed its exchange of 95 million newly issued shares with Bear Stearns common stock, or 39.5% of the outstanding Bear Stearns common stock after giving effect to the issuance, at the same price as provided in the amended merger agreement. Separately, according to Michael Karp, CEO of Options Group CEO, a financial recruitment and consulting firm, resumes from Bear Stearns investment bank employees started pouring in after the $2 per share announcement, as many as 10 to 15 resumes a day globally, Paritosh Bansal of Reuters reports. Reuters adds that on Friday, JPMorgan reported that five Bear Stearns executives were appointed in the investment banking and trading division out of 26 positions. JPMorgan is bigger than Bear Stearns' 14,000 workers, employing 180,000 worldwide, including 26,000 in investment banking and trading, Reuters relates. About JPMorgan JPMorgan Chase & Co. (NYSE: JPM) -- http://www.jpmorganchase.com/ -- is a global financial services firm with operations in more than 60 countries. The firm does investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. About Bear Stearn Companies New York City-based The Bear Stearns Companies Inc. (NYSE: BSC) -- http://www.bearstearns.com/-- is a leading financial services firm serving governments, corporations, institutions and individuals worldwide. The company's core business lines include institutional equities, fixed income, investment banking, global clearing services, asset management, and private client services. The company has approximately 14,000 employees worldwide. * * * As reported in the Troubled Company Reporter on Dec. 28, 2007, Fitch Ratings' affirmed its Negative Outlook for The Bear Stearns Companies Inc. following the announcement of the company's fiscal year earnings for 2007. On Nov. 14, 2007, Fitch affirmed Bear Stearns' long-term credit ratings, along with its subsidiaries. Fitch also downgraded the short-term rating to 'F1' from 'F1+', and Individual rating to 'B/C' from 'B'. BEAR STEARNS: Broker Can Work for Morgan Stanley, Court Rules ------------------------------------------------------------- U.S. District Court judge Nathaniel Gorton rejected the injunction request of Bear Stearns Cos. Inc. to stop broker Douglas Sharon, who managed almost $1 billion in assets, from transfering and working for competitor Morgan Stanley, Jef Feeley and Janelle Lawrence of Bloomberg News report. According to Bear Stearns management, Mr. Sharon defied terms of an employment contract to provide resignation notice of 90 days, Bloomberg News reports. Judge Gorton, however, ruled that Mr. Sharon's "professional standing" will be negatively affected by barring his career move while an arbitration inquiry is ongoing. As reported in the Troubled Company Reporter on March 25, 2008, JPMorgan Chase & Co. and Bear Stearns disclosed an amended merger agreement regarding JPMorgan Chase's acquisition of Bear Stearns. Under the revised terms, each share of Bear Stearns common stock would be exchanged for 0.21753 shares of JPMorgan Chase common stock -- up from 0.05473 shares -- reflecting an implied value of approximately $10 per share of Bear Stearns common stock based on the closing price of JPMorgan Chase common stock on the New York Stock Exchange on March 20, 2008. In addition, JPMorgan Chase and Bear Stearns entered into a share purchase agreement under which JPMorgan Chase will purchase 95 million newly issued shares of Bear Stearns common stock, or 39.5% of the outstanding Bear Stearns common stock after giving effect to the issuance, at the same price as provided in the amended merger agreement. New York City-based The Bear Stearns Companies Inc. (NYSE: BSC) -- http://www.bearstearns.com/-- is a leading financial services firm serving governments, corporations, institutions and individuals worldwide. The company's core business lines include institutional equities, fixed income, investment banking, global clearing services, asset management, and private client services. The company has approximately 14,000 employees worldwide. * * * As reported in the Troubled Company Reporter on Dec. 28, 2007, Fitch Ratings' affirmed its Negative Outlook for The Bear Stearns Companies Inc. following the announcement of the company's fiscal year earnings for 2007. On Nov. 14, 2007, Fitch affirmed Bear Stearns' long-term credit ratings, along with its subsidiaries. Fitch also downgraded the short-term rating to 'F1' from 'F1+', and Individual rating to 'B/C' from 'B'. BEAR STEARNS: Gets NYSE Nod to Issue 95MM Shares to JPMorgan Chase ------------------------------------------------------------------ The New York Stock Exchange accepted The Bear Stearns Companies Inc.'s application of the financial viability exception to the NYSE's shareholder approval policy in connection with the company's issuance of 95 million shares of its common stock to JPMorgan Chase & Co. The shares are being issued pursuant to a share exchange agreement entered into between Bear Stearns and JPMorgan Chase in connection with the merger agreement between the parties. As reported in the Troubled Company Reporter on March 25, 2008, JPMorgan and Bear Stearns disclosed an amended merger agreement regarding JPMorgan Chase's acquisition of Bear Stearns. Under the revised terms, each share of Bear Stearns common stock would be exchanged for 0.21753 shares of JPMorgan Chase common stock -- up from 0.05473 shares -- reflecting an implied value of approximately $10 per share of Bear Stearns common stock based on the closing price of JPMorgan Chase common stock on the New York Stock Exchange on March 20, 2008. In addition, JPMorgan Chase and Bear Stearns entered into a share purchase agreement under which JPMorgan Chase will purchase 95 million newly issued shares of Bear Stearns common stock, or 39.5% of the outstanding Bear Stearns common stock after giving effect to the issuance, at the same price as provided in the amended merger agreement. Bear Stearns completed its share exchange with JPMorgan April 8, 2008, according to Dow Jones Newswires. About JPMorgan JPMorgan Chase & Co. (NYSE: JPM) -- http://www.jpmorganchase.com/ -- is a global financial services firm with operations in more than 60 countries. The firm does investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. About Bear Stearn Companies New York City-based The Bear Stearns Companies Inc. (NYSE: BSC) -- http://www.bearstearns.com/-- is a leading financial services firm serving governments, corporations, institutions and individuals worldwide. The company's core business lines include institutional equities, fixed income, investment banking, global clearing services, asset management, and private client services. The company has approximately 14,000 employees worldwide. * * * As reported in the Troubled Company Reporter on Dec. 28, 2007, Fitch Ratings' affirmed its Negative Outlook for The Bear Stearns Companies Inc. following the announcement of the company's fiscal year earnings for 2007. On Nov. 14, 2007, Fitch affirmed Bear Stearns' long-term credit ratings, along with its subsidiaries. Fitch also downgraded the short-term rating to 'F1' from 'F1+', and Individual rating to 'B/C' from 'B'. BEN CASTON: Faces $4 Million Foreclosure from Arkansas Bank ----------------------------------------------------------- Arkansas National Bank commenced foreclosure action on April 3, 2008, before the Circuit Court of Washington County against Ben Caston Construction Inc. asserting claims of almost $4 million, Kim Souza writes for The Morning News in Northwest Arkansas. The foreclosure action follows the dismissal of the Debtor's chapter 7 liquidation case filed in October 2007, report says. Based on court documents, ANB extended a total of $3.53 million to the Debtor sometime November 2002 to August 2006, reports Morning News. The report adds that ANB calculates the Debtor's present total debt at $3.86 million. Springdale, Arkansas-based Ben Caston Construction Inc. is owned by Benjamin Franklin Caston & Lois Caston who filed for chapter 11 protection on Jan. 8, 2007 (Bankr. W.D. Ark. Case No. 07-70063). The Debtor's affiliate, Heber Homes Inc., filed for chapter 11 protection on Jan. 18, 2007 (Bankr. E.D. Ark. Case No. 07-10268). Ben Caston filed for chapter 11 protection on Feb. 15, 2007 (Bankr. W.D. Ark. Case No. 07-70434). Stanley V. Bond, Esq., at Bond Law Office is counsel to the Debtor. When the Debtor filed for bankruptcy, it listed total assets $4,834,448 and total debts of $4,324,520. According to Northwest Arkansas The Morning News, Ben Caston filed for chapter 7 liquidation in October 2007, which was subsequently dismissed by a U.S. Bankruptcy Court. BH BOULDERS: Files Schedules of Assets and Liabilities ------------------------------------------------------ BH Boulders LP 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 $10,300,000 B. Personal Property 21,913 C. Property Claimed as Exempt D. Creditors Holding $8,273,000 Secured Claims E. Creditors Holding 0 Unsecured Priority Claims F. Creditors Holding 1,217,250 Unsecured Nonpriority Claims ------------ ------------- TOTAL $10,321,913 $9,490,250 Based in Lake Forest, California, BH Boulders LP and its debtor- affiliate filed for Chapter 11 protection on Feb. 28, 2008 (Bankr. C.D. Calif. Case No. 08-11342). Donald F. Farrell, Jr., Esq. at Anderson Aquino, LLP represents the Debtors in their restructuring efforts. BLAST ENERGY: Unit Receives $6 Million as Litigation Settlement --------------------------------------------------------------- Blast Energy Services' subsidiary Eagle Domestic Drilling Operations and Hallwood Energy LP and Hallwood Petroleum LLC have signed an agreement to settle the litigation between them for a total settlement amount to Eagle of approximately $6.4 million. "This is one of two lawsuits we filed against land rig drilling customers for breach of contract," John O'Keefe, Blast's CEO, said. "We believe this settlement with Hallwood will inject additional cash into the company, reduce our debt obligations and allow us to focus our efforts on the remaining higher valued claim against Quicksilver Resources." Under the terms of this agreement, Hallwood will pay to Eagle $2.0 million in cash and issue $2.75 million in equity from a pending major financing and Hallwood has agreed to irrevocably forgive approximately $1.65 million in Eagle payment obligations effective immediately. In return, Eagle has agreed to suspend its legal actions against Hallwood for approximately six months. Additionally, in the event Hallwood is able to secure an aggregate of $20 million in bridge financing prior to June 30, 2008, Hallwood will pay Eagle a $500,000 advance on their cash obligation. If Hallwood be unable to complete their major financing by Sept. 30, 2008, Eagle will immediately resume their legal actions against Hallwood and the $500,000 advance will not be credited against any future judgment or settlement amounts. If Hallwood successfully complete their major financing and satisfy their settlement obligations to Eagle, the parties and their affiliates will be fully and mutually released from all and any claims between them. This settlement agreement has been approved by both companies' board of directors but is subject to the approval of the Bankruptcy Court. About Blast Energy Headquartered in Houston, Blast Energy Services Inc. and its debtor-affiliate Eagle Domestic Drilling Operations LLC -- http://www.blastenergyservices.com/-- owns and contracts land drilling rigs to third parties. The Debtor also provides services relating to drilling rig operations. Blast Energy owns and develops abrasive jetting intellectual property, technology and equipment providing downhole production enhancement and drilling solutions, and satellite broadband access for Internet, data, email, applications, VoIP and video streaming as energy industry management tools providing real-time supervisory control and data acquisition. The company filed for Chapter 11 protection on Jan. 19, 2007 (Bankr. S.D. Tex. Case No. 07-30424 and 07-30426). H. Rey Stroube, III, Esq., represent the Debtors. The Official Committee of Unsecured Creditors is represented by Alan D. Halperin, Esq., at Halperin Battaglia Raicht LLP. When the Debtor filed for protection from its creditors, it listed total assets of $63,500,851 and total debts of $51,019,486. BOMBAY COMPANY: Wants to Hire A.S.K. Financial as Special Counsel ----------------------------------------------------------------- The Bombay Company Inc. and its debtor-affiliates ask permission from the U.S. Bankruptcy Court for the Northern District of Texas to employ A.S.K. Financial LLP as their special litigation counsel. A.S.K. Financial will collect, analyze, and litigate avoidance claims that are filed, nunc pro tunc to March 12, 2008, in the Debtors' Chapter 11 cases. The Debtors tell the Court that the firm will charge an analysis fee for performing initial analysis of potential avoidance claims. The firm will then provide these data to the Debtors and their Official Committee of Unsecured Creditors to help them decide which actions are worth pursuing. The firm will be paid fees on a contingency basis: -- 15% for all gross collections obtained on cases settled prior to the filing of a complaint; -- 27% of all collections obtained on cases settled after the filing of a complaint, but prior to four weeks before the scheduled trial date or entry of a judgment; and -- 35% of all collections obtained on cases settled on the earlier of four weeks before the scheduled trial date or entry of a judgment. The firm says that it is also entitled to be paid its contingency fee for verified claim waivers that it obtains as part of the settlement consideration. Joseph L. Steinfeld, Jr., Esq., a co-managing principal of A.S.K. Financial, assures the Court that the firm is disinterested, as that term is defined in Section 101(14) of the U.S. Bankruptcy Code. About Bombay Company Based in Fort Worth, Texas, The Bombay Company Inc., (OTC Bulletin Board: BBAO) -- http://www.bombaycompany.com/-- designs, sources and markets a unique line of home accessories, wall d,cor and furniture through 384 retail outlets and the Internet in the U.S. and internationally, including Cayman Islands. The company and five of its debtor-affiliates filed for Chapter 11 protection on Sept. 20, 2007 (Bankr. N.D. Tex. Lead Case No. 07-44084). Robert D. Albergotti, Esq., John D. Penn, Esq., Ian T. Peck, Esq., and Jason B. Binford, Esq., at Haynes and Boone, LLP, represent the Debtors. Attorneys at Cooley, Godward, Kronish LLP act as counsel for the Official Committee of Unsecured Creditors. Forshey & Prostok LLP is the Committee's local counsel. As of May 5, 2007, the Debtors listed total assets of $239,400,000 and total debts of $173,400,000. BRANDYWINE REALTY: Fitch Holds 'BB+' Rating on Preferred Stock -------------------------------------------------------------- Fitch has affirmed the ratings of Brandywine Realty Trust and Brandywine Operating Partnership, L.P. as: -- Issuer Default Rating 'BBB-'; -- Unsecured revolving credit facility 'BBB-'; -- Senior unsecured notes 'BBB-'; -- Preferred stock 'BB+'. The Rating Outlook has been revised to Stable from Positive. The ratings are supported by a geographically diversified portfolio of quality assets including a sizable unencumbered pool, a solid leasing profile, and financial flexibility including demonstrated access to a variety of capital sources. These strengths are tempered by declining trends in debt service coverage ratios, increased leverage, limited leasing activity within the company's development pipeline, and declining fundamentals in some of Brandywine's markets. Brandywine's acquisition of Prentiss Properties in January 2006 added significant scale and diversity to the company's cash flow stream. The company also repaid mortgages during 2007 that added some additional assets to the unencumbered pool. As of Dec. 31, 2007, the company had stabilized assets in the unencumbered pool with a gross book value of approximately $3.7 billion, representing over 75% of the total portfolio. Fitch calculated Brandywine's unencumbered asset coverage to be modestly above 1.5 times at Dec. 31, 2007, which is adequate for the rating category. However, this is down significantly from 2.1x at June 30, 2005. The company also maintains a solid leasing profile with a diverse tenant base that includes many strong credit tenants and a manageable lease expiration schedule with fewer than 15% of annualized base rents coming due in any given year. The company's core portfolio, which excludes assets under development or redevelopment, was 94.6% leased at Dec. 31, 2007, up significantly from 91.5% a year earlier. No tenant represents more than 3% of base rents and 10 of the top 20 tenants have investment grade ratings from Fitch. The revision in Outlook to Stable from Positive is driven primarily by the company's meaningful increase in leverage and reduced debt service coverage metrics over the past two years combined with the slow progress in leasing activity within the development pipeline. These trends are occurring as transaction activity in most real estate markets has slowed significantly over the past several months, potentially making it more challenging for Brandywine to improve these ratios meaningfully in the near term. At Dec. 31, 2005, Brandywine's total debt to undepreciated book capital was 49.8%, and total debt plus preferred stock to undepreciated book capital was 50.1%. These ratios increased to 55.4% and 57.3%, respectively, at Dec. 31, 2006, and to 56.5% and 58.5%, respectively, at Dec. 31, 2007. While Fitch anticipated some degree of increased leverage associated with the closing of the Prentiss acquisition, these levels have risen to the point that they are consistent with 'BBB-' level debt ratings. At a 'BBB' stress level, Fitch calculated Brandywine's risk- adjusted capital ratio to be 0.7x for 2007, down from 0.8x at Dec. 31, 2005. The decline was driven by the additional debt that the company has taken on over the past two years as well as the relatively high capital charges given to office assets. The company's total interest coverage was 2.2x in 2007, compared to 2.1x in 2006 and 2.7x in 2005. Fixed-charge coverage was 1.6x in 2007, 1.6x in 2006, and 1.9x in 2005. These coverage ratios remain solid for the current ratings. Based in Radnor, Pennsylvania, Brandywine Realty Trust is a Real Estate Investment Trust that is primarily engaged in the acquisition, development, redevelopment, and leasing of office and industrial real estate. As of Dec. 31, 2007, the company had $5.2 billion in total book assets. Its portfolio consisted of 216 office properties, 23 industrial facilities, and one mixed-use project containing an aggregate of 3.7 million net rentable square feet. The company also has seven properties under development and seven properties under redevelopment containing an aggregate of 3.7 million net rentable square feet. BUFFALO PITT: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Buffalo Pitt, LLC 210 Federal Street Pittsburgh, PA 15212 Bankruptcy Case No.: 08-22208 Chapter 11 Petition Date: April 4, 2008 Court: Western District of Pennsylvania (Pittsburgh) Debtor's Counsel: Robert O. Lampl, Esq. (rol@lampllaw.com) 960 Penn Avenue, Suite 1200 Pittsburgh, PA 15222 Tel: (412) 392-0330 Fax: (412) 392-0335 http://www.lampllaw.com/ Estimated Assets: $500,000 to $1 million Estimated Debts: $1 million to $10 million The Debtor does not have any creditors who are not insiders. CA INC: Cuts 2,800 Jobs in Expanded 2007 Restructuring Plan ----------------------------------------------------------- CA, Inc. approved additional cost reduction and restructuring actions relating to its Fiscal 2007 Restructuring Plan disclosed in August 2006, meant to improve the company's expense structure and increase its competitiveness. The objectives under the Fiscal 2007 Restructuring Plan now include: (1) a total workforce reduction of approximately 2,800 positions, (2) global facilities consolidations, and (3) other cost reduction initiatives. CA, Inc. expects to incur additional pre-tax restructuring charges of approximately $75 million to 100 million, bringing the total pre-tax restructuring charges that CA, Inc. expects to incur in connection with the Fiscal 2007 Restructuring Plan to $275 million to 300 million, including termination costs of approximately $200 million to $215 million and global facilities consolidations of approximately $75 million to $85 million. Restructuring in August 2006 As reported in the Troubled Company Reporter on Aug. 15, 2006, CA Inc. disclosed a fiscal year 2007 cost reduction and restructuring plan designed to significantly improve the company's expense structure and increase its competitiveness. The plan's objectives included a workforce reduction of approximately 1,700 positions, including 300 positions associated with consolidated joint ventures, and global facilities consolidations and other cost reduction initiatives, which CA expected to deliver about $200 million in annualized savings when completed in late fiscal year 2008. The company expected to incur pre-tax restructuring charges of $200 million associated with the workforce reductions and facilities consolidations, with the majority of these charges to be incurred over the next two quarters. The company also expected to implement other programs over the remainder of its fiscal year to further reduce costs throughout the organization including tighter control of travel and a reduction in the use of consultants. The company estimated that half of the workforce reductions will take place in North America. "CA's senior management is focused on making the company's cost structure competitive with that of its peers and aligning it with CA's strategic market opportunities and initiatives," said Michael Christenson, CA's chief operating officer. "The initiative we announced today reflects our ongoing commitment to improve the efficiency of our operations, reduce our operating expenses, improve our rate of return on invested capital and deliver a stronger bottom-line performance." About CA Inc. Based in Islandia, New York, CA Inc. (NYSE:CA) -- http://www.ca.com/-- is an information technology management software company that unifies and simplifies the management ofenterprise-wide IT. Founded in 1976, CA serves customers in more than 140 countries. The company has operations in Brazil, Indonesia, Luxembourg, Philippines and Thailand. * * * As reported in the Troubled Company Reporter on Dec. 19, 2007, Fitch Ratings affirmed these ratings of CA, Inc., including Issuer Default Rating at 'BB+'; Senior unsecured revolving credit facility at 'BB+'; and Senior unsecured debt at 'BB+'. Additionally, Fitch revised the Rating Outlook on CA Inc. to Stable from Negative. Fitch's actions affect about $2.8 billion of total debt, including the company's $1.0 billion revolving credit facility. CAPCO ENERGY: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------- Lead Debtor: Capco Energy, Inc. fka Amco Petroleum, Inc. 1800 West Loop South, Suite 1925 Houston, TX 77027 Bankruptcy Case No.: 08-32282 Type of Business: The Debtor is a publicly traded oil & gas exploration and production company, which explores for, acquires, develops, and operates oil and gas producing properties in the Gulf of Mexico, Texas, and Mid-Continent areas of the United States. See http://www.capcoenergy.net/ Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Capco Asset Management, Inc. 08-32283 Capco Operating Corp. 08-32284 AMCO Energy, Inc. 08-32285 Capco Offshore of Texas, Inc. 08-32286 Packard Gas Co. 08-32288 Solano Well Services, LLC 08-32289 Chapter 11 Petition Date: April 7, 2007 Court: Southern District of Texas (Houston) Judge: Karen K. Brown Debtors' Counsel: Craig Harwyn Cavalier, Esq. (ccavalier@cavalierlaw.com) 3355 West Alabama, Suite 1160 Houston, TX 77098 Tel: (713) 621-4720 Fax: (713) 621-4779 http://www.cavalierlaw.com/ Capco Energy, Inc's Financial Condition: Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million A. Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Vince Murchinson Attorney for-Hoactzin $2,072,759 Patton Boggs, LLP Partners, L.P. 2001 Ross Avenue, Suite 3000 Dallas, TX 75201 Nabors Offshore Corp. General Unsecured $1,157,250 515 West Greens Road, Suite 500 Houston, TX 77067 Texas General Land Office General Unsecured $745,007 1700 North Congress Avenue Austin, TX 78701 Omimex General Unsecured $422,692 2001 Beach Street, Suite 810 Fort Worth, TX 76103 Hunt Chieftain Development, LP General Unsecured $360,551 P.O. Box 848018 Dallas, TX 75284-8018 Wood Group Production General Unsecured $340,028 Services, Inc. Coastal Production Services P.O. Box 203372 Houston, TX 77216-3372 Merit Energy General Unsecured $278,498 13727 Noel Road, Suite 500 Dallas, TX 75240 REC Marine Logistics General Unsecured $243,594 Energy Resource Tech General Unsecured $239,277 Production Wireline & General Unsecured $234,044 Cased Hole Services Group, LLC Walter Oil & Gas Corp. General Unsecured $207,236 Production Service Network General Unsecured $183,497 Harvest Oil and Gas, LLC General Unsecured $173,812 Helis Oil & Gas Co., LLC General Unsecured $171,555 Energy Partners, Ltd. General Unsecured $169,254 Gerald Nichols General Unsecured $150,000 Hercules Liftboat Co., LLC General Unsecured $136,526 Wise Well Intervention General Unsecured $128,081 Services, Inc. Moncla Well Services, Inc. General Unsecured $108,627 E20on Mobil General Unsecured $107,415 B. Capco Asset Management, Inc. did not file a list of its largest unsecured creditors. C. Capco Operating Corp. did not file a list of its largest unsecured creditors. D. AMCO Energy, Inc. did not file a list of its largest unsecured creditors. E. Capco Offshore of Texas, Inc.did not file a list of its largest unsecured creditors. F. Packard Gas Co. did not file a list of its largest unsecured creditors. G. Solano Well Services, LLC did not file a list of its largest unsecured creditors. CARLYLE CAPITAL: Bedell Cristin Asked to Provide Legal Advice ------------------------------------------------------------- Mark Helyar, Esq., and Christopher Anderson, Esq., of Bedell Cristin in Guernsey, Channel Islands, have been appointed by Begbies Traynor (Jersey) Limited, liquidators of Carlyle Capital Corporation Limited, as local counsel. Bedell Cristin will provide legal advice on the liquidation of CCC. Court applications in Guernsey on March 17 and March 18 led to the appointment of four liquidators from Begbies Traynor to act on behalf of the stricken Guernsey registered fund, which is listed on the Euronext Amsterdam exchange. CCC is one of the latest high profile collapses arising from recent global market turmoil. With reported predominantly residential mortgage assets on February 27 of $21.7 billion, CCC is by far the largest and internationally high profile compulsory liquidation ever brought before Guernsey's courts. "Our team is working closely and intensively with the liquidators and counsel in Guernsey, London, New York and Holland, together with the relevant regulatory and listing authorities, to facilitate the orderly liquidation of CCC's remaining assets," Bedell Cristing managing partner Mark Helyar, Esq., said. According to a report by TheLawyer.Com, Jay Goffman, Esq., at Skadden Arps Slate Meagher & Flom is engaged to assist CCC and Carlyle Investment Group in the U.S. while Wim Hazeleger, Esq., at Linklaters Law Firm will assist CCC and its liquidator with the Dutch legal matters. About Carlyle Capital Carlyle Capital Corporation Limited (Euronext Amsterdam: CCC; ISIN: GG00B1VYV826) -- http://www.carlylecapitalcorp.com/-- is a Guernsey investment company that was formed on Aug. 29, 2006. It is a closed-end investment fund domiciled and registered as a limited company under the laws of Guernsey, Channel Islands. The company invests in a diversified portfolio of fixed income assets including high-grade mortgages and credit products. The company's day-to-day activities and investment portfolio are managed by Carlyle Investment Management LLC, whose investment professionals have extensive experience in the areas of mortgage finance, leveraged finance, capital markets transaction structuring and risk/portfolio management. CIM manages the company pursuant to a management agreement. CIM is a registered investment adviser under the U.S. Investment Advisers Act of 1940 and is an affiliate of The Carlyle Group. The company was put into compulsory liquidation on March 17, 2008, under the Companies Law in Guernsey after failing to meet margin calls and receiving default notices from lenders. CASA DE CAMBIO: Wants to Hire Luis V. Echeverria as Consultant -------------------------------------------------------------- Casa de Cambio Majapara S.A. de C.V. seeks permission from the U.S. Bankruptcy Court for the Northern District of Illinois to employ Luis V. Echeverria as consultant and foreign representative in its insolvency and bankruptcy proceedings in the United States and in Mexico. Mr. Echeverria is the president and CEO of JOM Corp., which is a registered money transmitter and was a customer of the Debtor before the bankruptcy filing. Mr. Echeverria, efficient in reading, writing and speaking Spanish and English, will: a) advise and assist the Debtor with the administration of its estate, operation of its business and management of its properties; b) consult the Debtor regarding the disposition of its assets and take actions, as may be necessary, to effectuate those dispositions; c) coordinate and take any actions in foreign countries, including the commencement and oversight of ancillary insolvency proceedings in Mexico; d) represent the Debtor with respect to inquiries and negotiations relating to its creditors and property of its estate; e) assist the Debtor with the formulation and confirmation of a plan of reorganization; f) participate on behalf of the Debtor in all proceedings before the United states Bankruptcy Court and any other Court including Courts in Mexico; and g) perform any and other consulting or representive services on behalf of the Debtor in the proper administration of the Debtor's estate. Mr. Echeverria relates that the Debtor agreed to pay his standard hourly rate of $550 and will reimburse out-of-pocket expenses incurred in relation to the consulting services. The Debtor proposes to pay Mr. Escheverria a flat fee of $100,000 for services rendered between the bankruptcy filing to June 30, 2008. Mr. Echeverria assures the Court that he is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code. Headquartered in Mexico City, Casa de Cambio Majapara S.A. de C.V. aka Majapara Casa de Cambio is engaged in financial transactions processing, reserve, and clearing house activities. The company filed for Chapter 11 protection on March 5, 2008 (Bankr. N.D. Illinois). Andrew L. Wool, Esq., at Katten Muchin Rosenman, LLP, in Chicago, Illinois, represent the Debtor. When the Debtor filed for protection from its creditors, it listed assets and debts between $10 million to $50 million. CATHOLIC CHURCH: Tort Claims Against Davenport May Be Estimated --------------------------------------------------------------- The Diocese of Davenport and its Official Committee of Unsecured Creditors obtained approval from the U.S. Bankruptcy Court for the Southern District of Iowa to estimate tort claims for voting purposes. As reported in the Troubled Company Reporter on March 3, 2008, Hamid R. Rafatjoo, Esq., at Pachulski Stang Ziehl & Jones LLP, in Los Angeles, California, relates that as of the July 16, 2007 claims bar date, 154 tort claims were filed in the bankruptcy case. Six additional claims were filed after the Bar Date. Prior to the bankruptcy filing, one Tort Claim was liquidated for $1,600,000 after a jury trial in the U.S. District Court for Scott County. The Diocese dispute that Tort Claim, Mr. Rafatjoo says. Thus, as of Feb. 12, 2008, all Tort Claims are unliquidated or disputed, and would be affected by the request. Pursuant to Section 157(b)(2) of the Judiciary and Judicial Procedures Code, Section 502(c) of the Bankruptcy Code and Rule 3018(a) of the Federal Rules of Bankruptcy Procedure, the Diocese and the Creditors Committee propose that all Tort Claims, which have not been disallowed, be temporarily allowed and estimated at $1 per claim. Mr. Rafatjoo contends that the request is not for distributions from the bankruptcy estate, but is limited to temporary allowance and estimation of Tort Claims for voting to accept or reject the Joint Plan of Reorganization recently filed by the Diocese and the Creditors Committee. The Creditors Committee has considered the impact of the proposed estimation, and the fact that individuals, who assert large monetary claims will be impacted by equating their votes with those with smaller claims, Mr. Rafatjoo discloses. The Creditors Committee, however, considered the factor and support the request based on the cost and time savings, which will realized by the proposed estimation process. About Diocese of Davenport The Diocese of Davenport in Iowa filed for chapter 11 protection (Bankr. S.D. Ia. Case No. 06-02229) on Oct. 10, 2006. Richard A. Davidson, Esq., at Lane & Waterman LLP, represents the Davenport Diocese in its restructuring efforts. Hamid R. Rafatjoo, Esq., and Gillian M. Brown, Esq., at Pachulski Stang Zhiel Young Jones & Weintraub LLP represent the Official Committee of Unsecured Creditors. In its schedules of assets and liabilities, the Davenport Diocese reported $4,492,809 in assets and $1,650,439 in liabilities. The Court approved on April 3, 2008, the Diocese of Davenport's second amended disclosure statement explaining its joint plan of reorganization. The Committee is a proponent to the plan. The confirmation hearing of the Debtor's plan will start on April 30, 2008. (Catholic Church Bankruptcy News, Issue No. 121; Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/ or 215/945-7000). CATHOLIC CHURCH: US Trustee Seals Names of Fairbanks Panel Members ------------------------------------------------------------------ Robert D. Miller, Jr., acting United States Trustee for Region 18, has appointed an Official Committee of Unsecured Creditors in the bankruptcy case of the Catholic Bishop of Northern Alaska, aka The Roman Catholic Diocese of Fairbanks in Alaska. The U.S. Trustee filed with the U.S. Bankruptcy Court for the District of Alaska documents relating to the appointment under seal. Judge Donald MacDonald, IV, directed the Office of the U.S. Trustee to serve copies of the sealed appointment on the Catholic Bishop of Northern Alaska, and all appointees to the Committee. About Diocese of Fairbanks The Roman Catholic Diocese of Fairbanks in Alaska, aka Catholic Bishop of Northern Alaska, aka Catholic Diocese of Fairbanks, aka The Diocese of Fairbanks, aka CBNA filed for chapter 11 bankruptcy on March 1, 2008 (Bankr. D. Alaska Case No. 08-00110). Susan G. Boswell, Esq., at Quarles & Brady LLP represents the Debtor in its restructuring efforts. Michael R. Mills, Esq., of Dorsey & Whitney LLP serves as the Debtor's local counsel and Cook, Schuhmann & Groseclose Inc. as its special counsel. Judge Donald MacDonald, IV, of the United States Bankruptcy Court for the District of Alaska presides over Fairbanks' Chapter 11 case. The Debtor's schedules show total assets of $13,316,864 and total liabilities of $1,838,719. The church's exclusive plan filing period expires on June 29, 2008. (Catholic Church Bankruptcy News, Issue No. 121; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CATHOLIC CHURCH: Dorsey & Whitney Ok'd as Fairbank's Local Counsel ------------------------------------------------------------------ Donald J. Kettler, sole Director of the Catholic Bishop of Northern Alaska, and bishop of the Diocese of Fairbanks, obtained permission from the U.S. Bankruptcy Court for the District of Alaska to employ Dorsey & Whitney LLP as its local and special counsel, nunc pro tunc to the bankruptcy filing. As reported in the Troubled Company Reporter on March 11, 2008, Michael R. Mills, Esq., of Dorsey & Whitney, has represented many Chapter 11 debtors in the state of Alaska, and his experience and expertise will be beneficial to the Diocese, relates Susan G. Boswell, Esq., at Quarles & Brady LLP, in Tucson, Arizona, the Diocese's proposed counsel. She discloses that Dorsey & Whitney has represented the Diocese prepetition, and that all of its fees and costs have been paid in full. Hence, Dorsey & Whitney is not a creditor of the bankruptcy estate. Dorsey & Whitney will be paid in its standard hourly rates, and will be reimbursed for expenses incurred in relation to its retention. Michael R. Mills, as primary attorney will be paid $320 per hour, while Michele Droege, a paralegal, will be paid $160. Hourly rates of others working on the bankruptcy case may vary depending on their experience and expertise. Ms. Boswell discloses that Dorsey & Whitney is currently holding a retainer of $6,412. Any application of the retainer will be subject to Court approval, including approval of any monthly payment procedures. Mr. Mills assures the Court that Dorsey & Whitney is a "disinterested person" within the meaning of Sections 101(13), 328 and 1103(b) of the Bankruptcy Code. About Diocese of Fairbanks The Roman Catholic Diocese of Fairbanks in Alaska, aka Catholic Bishop of Northern Alaska, aka Catholic Diocese of Fairbanks, aka The Diocese of Fairbanks, aka CBNA filed for chapter 11 bankruptcy on March 1, 2008 (Bankr. D. Alaska Case No. 08-00110). Susan G. Boswell, Esq., at Quarles & Brady LLP represents the Debtor in its restructuring efforts. Michael R. Mills, Esq., of Dorsey & Whitney LLP serves as the Debtor's local counsel and Cook, Schuhmann & Groseclose Inc. as its special counsel. Judge Donald MacDonald, IV, of the United States Bankruptcy Court for the District of Alaska presides over Fairbanks' Chapter 11 case. The Debtor's schedules show total assets of $13,316,864 and total liabilities of $1,838,719. The church's exclusive plan filing period expires on June 29, 2008. (Catholic Church Bankruptcy News, Issue No. 121; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CATHOLIC CHURCH: Counsels Agree to Mediation in Portland's Case --------------------------------------------------------------- In a letter sent to the U.S. Bankruptcy Court for the District of Oregon, Erin K. Olson, Esq., at the Law Office of Erin Olson, P.C., in Portland, Oregon, notifies the Hon. Elizabeth L. Perris that all participating counsel have agreed to a mediation before Federal Magistrate Judge John V. Acosta beginning April 16, 2008, to resolve issues on disclosure of certain documents. Ms. Olson represents certain parties alleging claims against the Archdiocese of Portland in Oregon, related to clergy abuse. About Archdiocese of Portland The Archdiocese of Portland in Oregon filed for chapter 11 protection (Bankr. Ore. Case No. 04-37154) on July 6, 2004. Thomas W. Stilley, Esq., and William N. Stiles, Esq., at Sussman Shank LLP, represent the Portland Archdiocese in its restructuring efforts. Albert N. Kennedy, Esq., at Tonkon Torp, LLP, represents the Official Tort Claimants Committee in Portland, and scores of abuse victims are represented by other lawyers. David A. Foraker serves as the Future Claimants Representative appointed in the Archdiocese of Portland's Chapter 11 case. In its Schedules of Assets and Liabilities filed with the Court on July 30, 2004, the Portland Archdiocese reports $19,251,558 in assets and $373,015,566 in liabilities. The Court approved the Debtor's disclosure statement explaining its Second Amended Joint Plan of Reorganization on Feb. 27, 2007. On April 17, 2007, the Court confirmed Portland's 3rd Amended Plan. On Sept. 28, 2007, the Court entered a final decree closing Portland's case. The case was subsequently reopened at Ms. Olson's request of further case administration. The Hon. Elizabeth L. Perris reopened the bankruptcy case of the Archdiocese of Portland in Oregon for further administration. Erin K. Olson, Esq., at the Law Office of Erin Olson, P.C., previously asked the Court to reopen the case to resolve certain issues, including her request to unseal, and file in redacted form, the documents and accompanying exhibits filed as Docket Nos. 4765 and 4766 in the bankruptcy case. (Catholic Church Bankruptcy News, Issue No. 121; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). CELL THERAPEUTICS: Scott Stromatt Resigns as EVP of Clinical Dev't ------------------------------------------------------------------ Scott C. Stromatt, M.D. voluntarily resigned from his position with Cell Therapeutics Inc. as executive vice president of Clinical Development and Regulatory Affairs, effective April 4, 2008. Dr. Stromatt and the company entered into a Severance Agreement and General Release on April 3, 2008, in connection with his departure. Pursuant to the Agreement, Dr. Stromatt: i) agreed to release the company and certain related parties, including the company's officers, directors and employees, from all claims and liabilities under federal and state laws arising prior to the separation date and reaffirmed that he will continue to abide by the confidentiality and trade secrets provisions of his Employee Agreement dated Jan. 27, 2003, which provisions will survive the Agreement, ii) will receive $291,666.66, which is equivalent to ten months of pay, at his current annual wage, paid in two formats: one lump sum payment of $87,500.04, and 14 semi-monthly payments of $14,583.33, iii) will receive a one-time payment of $15,000 to assist with transitioning to new health insurance, iv) will be paid for all accrued and unused vacation through April 4, 2008, and v) will discontinue vesting in any stock option grants or restricted stock grants on April 4, 2008, with the exception of 60,161 shares of restricted stock, which will forward vest upon Dr. Stromatt's assisting the company with its response letter to the European Regulatory Agency pursuant to the terms of the Agreement. About Cell Therapeutics Based in Seattle, Cell Therapeutics Inc. (NasdaqGM: CTIC) -- http://cticseattle.com/-- is a biopharmaceutical company committed to developing an integrated portfolio of oncology products aimed at making cancer more treatable. * * * As reported in the Troubled Company Reporter on March 31, 2008, Cell Therapeutics Inc.'s consolidated balance sheet at Dec. 31, 2007, showed $73.5 million in total assets, $181.4 million in total liabilities, and $26.2 million in no par value convertible preferred stock, resulting in a $134.1 million total stockholders' deficit. CHATEAUX FRAMING: Voluntary Chapter 11 Case Summary --------------------------------------------------- Debtor: Chateaux Framing, Inc. 3701 Georgeann Pl. Ceres, CA 9530 Bankruptcy Case No.: 08-90575 Type of Business: The Debtor provides carpentry work. Chapter 11 Petition Date: April 4, 2008 Court: Eastern District of California (Modesto) Judge: Robert S. Bardwil Debtor's Counsel: David C. Johnston, Esq. (djohnston@gianelli-law.com) Gianelli & Associates P.O. Box 3212 Modesto, CA 95353 Tel: (209) 521-6260 http://www.gianelli-law.com/ Estimated Assets: $100,000 to $1 million Estimated Debts: $1 million to $10 million The Debtor did not file a list of its largest unsecured creditors. CHRYSLER LLC: Plastech Can Get Funding from Lender Consortium ------------------------------------------------------------- Crain's Detroit Business and The Detroit Free Press report that the Honorable Phillip Shefferly of the U.S. Bankruptcy Court for the Eastern District of Michigan has granted Plastech Engineered Products, Inc., and its debtor-affiliates authorization to: i) transfer the DIP facility to a new lender selected and formed by their Debtors' major customers General Motors Corporation, Ford Motor Company, Johnson Controls Inc.; and ii) continue to draw under the interim facility provided provide for a continuation of the interim postpetition facility provided by Bank of America, N.A., pending the transfer. A draft amendment, dated March 31, 2008, to the Postpetition Loan and Security Agreement signed by Plastech and Bank of America provides that the maturity date of the revolving credit facility will be extended to April 30, 2008, and the maximum amount available under the facility will be raised to $51,500,000 equal to: -- $44,703,000, plus -- additional amounts delivered by the major customers. A full-text copy of the proposed Fifth Amendment to the DIP Agreement is available for free at: http://researcharchives.com/t/s?2a08 Crain's Detroit Business said Judge Shefferly approved the transfer of post-April 30 financing responsibilities to Plastech's major customers -- GM, Ford, Johnson Controls and possibly Chrysler. Details of the agreement