T R O U B L E D   C O M P A N Y   R E P O R T E R

             Saturday, April 26, 2008, Vol. 12, No. 99

                             Headlines

ACCEPTANCE INSURANCE: Posts $10,917 Net Loss in February 2008
ACCEPTANCE INSURANCE: Posts $62,337 Net Loss in March 2008
AMERICAN HOME: AHM CORP Files February 2008 Operating Report
AMERICAN HOME: AHMIC Files February 2008 Operating Report
AMERICAN HOME: AHMAI Files February 2008 Operating Report

AMERICAN HOME: AHMSI Files February 2008 Operating Report
BLUE WATER: Incurs February 2008 Net Loss of $1,372,723
BLUE WATER: Incurs March 2008 Net Loss of $4,123,096
BUFFETS HOLDINGS: Files Schedules of Assets and Debts
BUFFETS HOLDINGS: Buffets Inc. Files Schedules of Assets and Debts

NEUMANN HOMES: Delivers Monthly Operating Report for March 2008
NEW CENTURY: Posts $7,586,039 Net Loss in Month Ended February 29
PERFORMANCE TRANSPORTATION: Posts $9,290,000 Loss in March 2008
PERFORMANCE TRANSPORTATION: Liquidating Trust's Jan. 2008 Report
PERFORMANCE TRANSPORTATION: Liquidating Trust's Feb. 2008 Report

PERFORMANCE TRANSPORTATION: Liquidating Trust's March 2008 Report
TOUSA INC: Posts $23,293,009 Net Loss in March 31, 2008
ZIFF DAVIS: Files Schedules of Assets and Debts
ZIFF DAVIS: Five Affiliates File Schedules of Assets and Debts

                             *********

ACCEPTANCE INSURANCE: Posts $10,917 Net Loss in February 2008
-------------------------------------------------------------
Acceptance Insurance Companies, Inc. reported total assets of
$36,846,031, total liabilities of $138,184,380, and total
stockholders' deficit of $101,338,349 as of Feb. 29, 2008.

For the month ended Feb. 29, 2008, the company generated revenue
of $2,681 and incurred a net loss of $10,917.

Net cash increase for the month of February 2008 was $24,178.

A full-text copy of the company's February 2008 operating report
is available for free at http://ResearchArchives.com/t/s?2b22

Headquartered in Council Bluffs, Iowa, Acceptance Insurance
Companies, Inc. -- http://www.aicins.com/-- owns, either directly
or indirectly, several companies, one of which is an insurance
company that accounts for substantially all of the business
operations and assets of the corporate groups.

The company filed for chapter 11 protection on Jan. 7, 2005
(Bankr. D. Nebr. Case No. 05-80059).  The Debtor's affiliates--
Acceptance Insurance Services, Inc. and American Agrisurance, Inc.
-- each filed chapter 7 petitions (Bankr. D. Nebr. Case Nos.
05-80056 and 05-80058) on Jan. 7, 2005.  John J. Jolley, Esq.,
at Kutak Rock LLP, represents the Debtor in its restructuring
efforts.  Lawyers at McGrath North Mullin & Kratz PC LLO.
represent the the Official Committee of Unsecured Creditors in
Acceptance Insurance's case.  As of December 2007, the Debtor
listed $36,326,172 in total assets and $138,187,943 in total
debts.


ACCEPTANCE INSURANCE: Posts $62,337 Net Loss in March 2008
----------------------------------------------------------
Acceptance Insurance Companies, Inc. reported total assets of
$36,762,616, total liabilities of $138,163,302, and total
stockholders' deficit of $101,400,686 as of March 31, 2008.

For the month ended March 31, 2008, the company generated revenue
of $2,539 and incurred a net loss of $62,337.

Net cash increase for the month of March 2008 was $1,297.

A full-text copy of the company's March 2008 operating report is
available for free at http://ResearchArchives.com/t/s?2b22

Headquartered in Council Bluffs, Iowa, Acceptance Insurance
Companies, Inc. -- http://www.aicins.com/-- owns, either directly
or indirectly, several companies, one of which is an insurance
company that accounts for substantially all of the business
operations and assets of the corporate groups.

The company filed for chapter 11 protection on Jan. 7, 2005
(Bankr. D. Nebr. Case No. 05-80059).  The Debtor's affiliates--
Acceptance Insurance Services, Inc. and American Agrisurance, Inc.
-- each filed chapter 7 petitions (Bankr. D. Nebr. Case Nos.
05-80056 and 05-80058) on Jan. 7, 2005.  John J. Jolley, Esq.,
at Kutak Rock LLP, represents the Debtor in its restructuring
efforts.  Lawyers at McGrath North Mullin & Kratz PC LLO.
represent the the Official Committee of Unsecured Creditors in
Acceptance Insurance's case.  As of December 2007, the Debtor
listed $36,326,172 in total assets and $138,187,943 in total
debts.


AMERICAN HOME: AHM CORP Files February 2008 Operating Report
------------------------------------------------------------

                  American Home Mortgage Corp.
                Statement of Financial Condition
                     As of February 29, 2008

Assets:
   Cash and cash equivalents                          $9,861,784
   Restricted cash                                     9,933,996
   Securities purchased under agreements                     147
   Accounts receivable                                31,961,672
   Intercompany receivable                           696,910,601
   Mortgage loans                                    666,541,844
   Derivative assets                                     743,601
   Mortgage servicing rights                         376,844,753
   Other real estate, net                             62,137,493
   Premises and equipment, net                        22,319,881
   Investment in subsidiaries                         73,693,715
   Other assets                                        3,097,782
                                                    ------------
      Total Assets                                $1,954,047,269
                                                    ============

Liabilities and Stockholders' Equity

   Liabilities:
      Warehouse lines of credit                     $648,313,640
      Derivative liabilities                          10,481,560
      Accrued expenses & other liabilities           502,009,522
      Intercompany payable                         1,489,709,565
      Notes payable                                      905,856
      Income taxes payable                             4,648,544
                                                    ------------
         Total Liabilities                         2,656,068,687

   Stockholders' Equity
      Additional paid-in capital                     153,195,272
      Retained earnings                             (855,216,690)
      Other comprehensive loss                                 -
                                                    ------------
         Total Stockholders' Equity                 (702,021,418)
                                                    ------------
Total Liabilities & Stockholders' Equity          $1,954,047,269
                                                    ============

                  American Home Mortgage Corp.
                       Statement of Income
                  Month Ended February 29, 2008

Net Interest Income:
   Interest income                                    $4,452,174
   Interest expense                                       (5,585)
                                                    ------------
      Net interest income                              4,446,589

   Provision for loan losses                                   -
                                                    ------------
      Net interest income after provision              4,446,589
        for loan losses

Non-Interest Income:
   Gain (loss) on mortgage loans                      29,504,676
   Loan servicing fees                                12,213,565
   Changes in fair value of MSR                        1,840,261
   Income (loss) from subsidiaries                       244,625
   Other non-interest (loss) income                  (12,952,395)
                                                    ------------
      Non-interest income                             30,850,732

Expenses
   Salaries, commissions & benefits, net               2,231,250
   Occupancy and equipment                               885,383
   Data processing and communications                    170,710
   Office supplies and expenses                           87,639
   Marketing and promotion                                23,684
   Travel and entertainment                                1,996
   Professional fees                                   1,708,608
   Other real estate operating expense                 5,305,029
   Other                                               1,852,181
                                                    ------------
      Total expenses                                  12,266,480

Income (Loss) before income taxes                     23,030,841
Income taxes                                                   -
                                                    ------------
Net income                                           $23,030,841
                                                    ============

                  American Home Mortgage Corp.
           Schedule of Cash Receipts and Disbursements
                  Month Ended February 29, 2008

Cash - Beginning of Month, 02/01/2008                $23,130,928

Receipts:
   Cash sales                                                  -
   Accounts receivable                                         -
   Sale of assets                                              -
   Loans and advances                                          -
   Administrative                                              -
   Net payroll                                            55,915
   Other                                                       -
   Transfers (from DIP accounts)                          24,940
                                                    ------------
      Total Receipts                                      80,856

Disbursements:
   Net payroll
   Payroll taxes                                               -
   Sales, use & other taxes                                    -
   Loans and advances                                  2,292,039
   Inventory purchases                                         -
   Secured/rental/leases                                       -
   Insurance                                                   -
   Administrative                                      1,123,966
   Selling                                                     -
   Other                                                       -
   Transfers (from DIP accounts)                               -
   Professional fees                                           -
   U.S. Trustee quarterly fees                                 -
   Court costs                                                 -
                                                    ------------
      Total Disbursements                              3,416,005
                                                    ------------
      Net Cash Flow                                   (3,335,150)
                                                    ------------
Cash - End of Month - 02/29/08                       $19,795,778
                                                    ============

                       About American Home

Based in Melville, New York, American Home Mortgage Investment
Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage       
real estate investment trust engaged in the business of investing
in mortgage-backed securities and mortgage loans resulting from
the securitization of residential mortgage loans originated and
serviced by its subsidiaries.

American Home Mortgage and seven affiliates filed for chapter 11
protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047
through 07-11054).  James L. Patton, Jr., Esq., Joel A. Waite,
Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt &
Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC
acts as the Debtors' claims and noticing agent. The Official
Committee of Unsecured Creditors selected Hahn & Hessen LLP as
its counsel.  As of March 31, 2007, American Home Mortgage's
balance sheet showed total assets of $20,553,935,000, total
liabilities of $19,330,191,000.

The U.S. Bankruptcy Court for the District of Delaware extended
the exclusive periods for American Home Mortgage Investors Corp.
and its debtor-affiliates to file a plan of reorganization through
June 2, 2008; and solicit and obtain acceptances for that plan
through July 31, 2008.

(American Home Bankruptcy News, Issue No. 34; Bankruptcy
Creditors' Service, Inc., Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


AMERICAN HOME: AHMIC Files February 2008 Operating Report
---------------------------------------------------------

             American Home Mortgage Investment Corp.
                Statement of Financial Condition
                     As of February 29, 2008

Assets:
   Cash and cash equivalents                          $6,020,775
   Restricted cash                                   150,799,967
   Accounts receivable                                 3,700,171
   Intercompany receivable                         1,322,684,844
   Securities                                      1,265,989,258
   Derivative assets                                           5
   Investment in subsidiaries                       (891,086,210)
   Other assets                                            4,948
                                                    ------------
      Total Assets                                $1,858,113,758
                                                    ============

Liabilities and Stockholders' Equity

   Liabilities:
      Reverse repurchase agreements                  $16,602,590
      Junior subordinated note                       180,416,000
      Derivative liabilities                          53,817,031
      Accrued expenses & other liabilities         1,348,625,847
      Intercompany payable                           577,287,945
                                                    ------------
         Total Liabilities                         2,176,749,413

   Stockholders' Equity
      Preferred stock - Series A                      50,856,875
      Preferred stock - Series B                      83,183,125
      Common Stock                                       543,074
      Additional paid-in capital                   1,057,864,155
      Retained earnings                           (1,511,082,884)
      Other comprehensive loss                                 -
                                                    ------------
         Total Stockholders' Equity                 (318,635,655)
                                                    ------------
Total Liabilities & Stockholders' Equity          $1,858,113,758
                                                    ============

             American Home Mortgage Investment Corp.
                       Statement of Income
                  Month Ended February 29, 2008

Net Interest Income:
   Interest income                                    $3,211,107
   Interest expense                                            -
                                                    ------------
      Net interest income                              3,211,107

   Provision for loan losses                                   -
                                                    ------------
      Net interest income after provision              3,211,107
        for loan losses

Non-Interest Income:
   Loss on mortgage loans                                     (2)
   Loss on securities and derivatives                   (926,335)
   Gain (loss) from Subsidiaries                      50,359,145
   Other non-interest income                                   -
                                                    ------------
      Non-interest income                             49,432,808

Other
   Data processing and communications                        989
   Professional fees                                       5,797
   Other expenses                                              -
                                                    ------------
      Total expenses                                       6,786

Loss before income taxes                              52,637,129
Income taxes                                                   -
                                                    ------------
Net income                                           $52,637,129
                                                    ============

             American Home Mortgage Investment Corp.
           Schedule of Cash Receipts and Disbursements
                  Month Ended February 29, 2008

Cash - Beginning of Month, 02/01/2008               $153,113,658

Receipts:
   Cash sales                                                  -
   Accounts receivable                                         -
   Sale of assets                                      2,448,381
   Loans and advances                                  2,030,786
   Administrative                                              -
   Net payroll                                                 -
   Other                                               2,799,193
   Transfers (from DIP accounts)                               -
                                                    ------------
      Total Receipts                                   7,278,359

Disbursements:
   Net payroll                                         2,416,592
   Payroll taxes                                               -
   Sales, use & other taxes                                    -
   Loans and advances                                          -
   Inventory purchases                                         -
   Secured/rental/leases                                       -
   Insurance                                                   -
   Administrative                                      1,154,684
   Selling                                                     -
   Other                                                       -
   Transfers (from DIP accounts)                               -
   Professional fees                                           -
   U.S. Trustee quarterly fees                                 -
   Court costs                                                 -
                                                    ------------
      Total Disbursements                              3,571,276
                                                    ------------
      Net Cash Flow                                    3,707,083
                                                    ------------
Cash - End of Month - 02/29/08                      $156,820,741
                                                    ============

                       About American Home

Based in Melville, New York, American Home Mortgage Investment
Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage       
real estate investment trust engaged in the business of investing
in mortgage-backed securities and mortgage loans resulting from
the securitization of residential mortgage loans originated and
serviced by its subsidiaries.

American Home Mortgage and seven affiliates filed for chapter 11
protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047
through 07-11054).  James L. Patton, Jr., Esq., Joel A. Waite,
Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt &
Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC
acts as the Debtors' claims and noticing agent. The Official
Committee of Unsecured Creditors selected Hahn & Hessen LLP as
its counsel.  As of March 31, 2007, American Home Mortgage's
balance sheet showed total assets of $20,553,935,000, total
liabilities of $19,330,191,000.

The U.S. Bankruptcy Court for the District of Delaware extended
the exclusive periods for American Home Mortgage Investors Corp.
and its debtor-affiliates to file a plan of reorganization through
June 2, 2008; and solicit and obtain acceptances for that plan
through July 31, 2008.

(American Home Bankruptcy News, Issue No. 34; Bankruptcy
Creditors' Service, Inc., Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


AMERICAN HOME: AHMAI Files February 2008 Operating Report
---------------------------------------------------------

             American Home Mortgage Acceptance, Inc.
                Statement of Financial Condition
                     As of February 29, 2008

Assets:
   Cash and cash equivalents                            $206,982
   Restricted cash                                             -
   Accounts receivable                                 2,177,983
   Intercompany receivable                           517,059,825
   Mortgage loans                                    134,235,834
   Mortgage servicing rights                          16,744,758
   Other real estate, net                              4,092,208
   Investment in subsidiaries                        (25,664,254)
   Other assets                                          156,271
                                                    ------------
      Total Assets                                  $649,009,607
                                                    ============

Liabilities and Stockholders' Equity

   Liabilities:
      Warehouse lines of credit                     $144,618,085
      Accrued expenses & other liabilities            18,032,637
      Intercompany payable                           672,586,413
                                                    ------------
         Total Liabilities                           835,237,135

   Stockholders' Equity
      Additional paid-in capital                      40,298,920
      Retained earnings                             (226,526,448)
                                                    ------------
         Total Stockholders' Equity                 (186,227,528)
                                                    ------------
Total Liabilities & Stockholders' Equity            $649,009,607
                                                    ============

               American Home Mortgage Acceptance, Inc.
                       Statement of Income
                 Month Ended February 29, 2008

Net Interest Income:
   Interest income                                    $1,384,560
   Interest expense                                            -
                                                    ------------
      Net interest income                              1,384,560

   Provision for loan losses                                   -
                                                    ------------
      Net interest income after provision              1,384,560
        for loan losses

Non-Interest Income:
   Gain (Loss) on mortgage loans                      25,601,449
   Gain on securities & derivatives                            -
   Loan servicing fees                                         -
   Changes in fair value of MSR                                -
   Income (Loss) from subsidiaries                        (6,114)
                                                    ------------
      Non-interest income                             25,595,335

Expenses
   Salaries, commissions & benefits, net                 279,844
   Office supplies and expenses                                -
   Marketing and promotion                                     -
   Professional fees                                           -
   Other real estate operating (income) expense          119,040
   Other                                                       -
                                                    ------------
      Total expenses                                     398,884

(Loss) Income before income taxes                     26,581,011
Income taxes                                                   -
                                                    ------------
Net income                                           $26,581,011
                                                    ============

AHM Acceptance also reports that its cash at the start of
February was $226,076.  Since it paid $19,095 for loans and
advances, its cash decreased to $206,982 as of Feb. 29, 2008.

                       About American Home

Based in Melville, New York, American Home Mortgage Investment
Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage       
real estate investment trust engaged in the business of investing
in mortgage-backed securities and mortgage loans resulting from
the securitization of residential mortgage loans originated and
serviced by its subsidiaries.

American Home Mortgage and seven affiliates filed for chapter 11
protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047
through 07-11054).  James L. Patton, Jr., Esq., Joel A. Waite,
Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt &
Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC
acts as the Debtors' claims and noticing agent. The Official
Committee of Unsecured Creditors selected Hahn & Hessen LLP as
its counsel.  As of March 31, 2007, American Home Mortgage's
balance sheet showed total assets of $20,553,935,000, total
liabilities of $19,330,191,000.

The U.S. Bankruptcy Court for the District of Delaware extended
the exclusive periods for American Home Mortgage Investors Corp.
and its debtor-affiliates to file a plan of reorganization through
June 2, 2008; and solicit and obtain acceptances for that plan
through July 31, 2008.

(American Home Bankruptcy News, Issue No. 34; Bankruptcy
Creditors' Service, Inc., Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


AMERICAN HOME: AHMSI Files February 2008 Operating Report
---------------------------------------------------------

             American Home Mortgage Servicing, Inc.
                Statement of Financial Condition
                     As of February 29, 2008

Assets:
   Cash and cash equivalents                         $59,212,372
   Restricted cash                                       174,209
   Securities purchased under agreements             225,734,604
   Accounts receivable & servicing advances                    -
   Intercompany receivable                           160,456,253
   Premises and equipment, net                         2,523,929
   Investment in subsidiaries                          9,727,945
   Other assets                                          775,733
                                                    ------------
      Total Assets                                  $458,605,045
                                                    ============

Liabilities and Stockholders' Equity

   Liabilities:
      Warehouse lines of credit                                -
      Accrued expenses & other liabilities          $219,035,625
      Intercompany payable                           131,091,739
      Income taxes payable                             1,791,454
                                                    ------------
         Total Liabilities                           351,918,818

   Stockholders' Equity
      Additional paid-in capital                      37,000,200
      Retained earnings                               69,686,027
                                                    ------------
         Total Stockholders' Equity                  106,686,227
                                                    ------------
Total Liabilities & Stockholders' Equity            $458,605,045
                                                    ============

             American Home Mortgage Servicing, Inc.
                       Statement of Income
                  Month Ended February 29, 2008

Net interest income:
   Interest income                                             -
   Interest expense                                            -
   Provision for loan losses                                   -
                                                    ------------
   Net interest income after losses                            -

Non-Interest Income:
   (Loss) Gain on mortgage loans                        (370,926)
   Loan servicing fees                                         -
   Gain on sale of servicing platform                          -
   Other non-interest income (loss)                      974,546
                                                    ------------
      Non-interest income [loss]                         603,620

Expenses
   Salaries, commissions & benefits, net               1,642,007
   Occupancy and equipment                               165,200
   Data processing and communications                    185,346
   Office supplies and expenses                          309,251
   Marketing and promotion                                     -
   Travel and entertainment                               18,980
   Professional fees                                      97,593
   Other real estate operating expense                         -
   Other                                              (2,789,305)
                                                    ------------
      Total expenses                                    (370,928)

Income (Loss) before income taxes                        974,548
Income taxes                                                   -
                                                    ------------
Net income [loss]                                       $974,548
                                                    ============

             American Home Mortgage Servicing, Inc.
           Schedule of Cash Receipts and Disbursements
                  Month Ended February 29, 2008

Cash - Beginning of Month, 02/01/2008                $82,238,840

Receipts:
   Cash sales                                                  -
   Accounts receivable                                         -
   Sale of assets                                              -
   Loans and advances                                          -
   Administrative                                              -
   Net payroll                                                 -
   Other                                                       -
   Transfers (from DIP accounts)                               -
                                                    ------------
      Total Receipts                                           0

Disbursements:
   Net payroll                                         1,478,610
   Payroll taxes                                               -
   Sales, use & other taxes                                    -
   Loans and advances                                 19,646,983
   Inventory purchases                                         -
   Secured/rental/leases                                       -
   Insurance                                                   -
   Administrative                                      1,726,666
   Selling                                                     -
   Other                                                       -
   Transfers (from DIP accounts)                               -
   Professional fees                                           -
   U.S. Trustee quarterly fees                                 -
   Court costs                                                 -
                                                    ------------
      Total Disbursements                             22,852,259
                                                    ------------
      Net Cash Flow                                  (22,852,259)
                                                    ------------
Cash - End of Month - 02/29/08                       $59,386,581
                                                    ============

                       About American Home

Based in Melville, New York, American Home Mortgage Investment
Corp. (NYSE: AHM) -- http://www.americanhm.com/-- is a mortgage       
real estate investment trust engaged in the business of investing
in mortgage-backed securities and mortgage loans resulting from
the securitization of residential mortgage loans originated and
serviced by its subsidiaries.

American Home Mortgage and seven affiliates filed for chapter 11
protection on Aug. 6, 2007 (Bankr. D. Del. Case Nos. 07-11047
through 07-11054).  James L. Patton, Jr., Esq., Joel A. Waite,
Esq., and Pauline K. Morgan, Esq. at Young, Conaway, Stargatt &
Taylor LLP represent the Debtors. Epiq Bankruptcy Solutions LLC
acts as the Debtors' claims and noticing agent. The Official
Committee of Unsecured Creditors selected Hahn & Hessen LLP as
its counsel.  As of March 31, 2007, American Home Mortgage's
balance sheet showed total assets of $20,553,935,000, total
liabilities of $19,330,191,000.

The U.S. Bankruptcy Court for the District of Delaware extended
the exclusive periods for American Home Mortgage Investors Corp.
and its debtor-affiliates to file a plan of reorganization through
June 2, 2008; and solicit and obtain acceptances for that plan
through July 31, 2008.

(American Home Bankruptcy News, Issue No. 34; Bankruptcy
Creditors' Service, Inc., Bankruptcy Creditors'
Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000).


BLUE WATER: Incurs February 2008 Net Loss of $1,372,723
-------------------------------------------------------

               Blue Water Automotive Systems, Inc.
                      Unaudited Balance Sheet
                      As of February 24, 2008

ASSETS:
Cash                                                 $1,040,794
Inventory                                             7,708,361
Accounts Receivable                                  48,900,698
Insider Receivables                                           -
Land and Buildings                                            -
Furniture, Fixtures & Equipment                      38,385,552
Accumulated Depreciation                            (10,087,302)
Other: Current Assets                                 5,404,899
Other: Long Term Assets                              10,551,117
                                                   ------------
TOTAL ASSETS                                       $101,904,119
                                                   ============

LIABILITIES:
Postpetition Liabilities:                                     -
Accounts Payable                                     $3,591,501
Rent and Lease Payable                                        -
Wages and Salaries                                            -
Taxes Payable                                           320,068
Other:                                                        -
                                                   ------------
     Total Postpetition Liabilities                   3,911,569

Secured Liabilities:
Subject to Postpetition Collateral or DIP Order               -
All Other Secured Liabilities                        36,976,963
                                                   ------------
     Total Secured Liabilities                       36,976,963

Prepetition Liabilities:
Taxes and Other Priority Liabilities                  1,913,342
Unsecured Liabilities:                               63,869,182
Other:                                                        -
                                                   ------------
     Total Prepetition Liabilities                   65,782,524

EQUITY:
Owners Capital                                       20,827,488
Retained Earnings - Prepetition                     (24,221,702)
Retained Earnings - Postpetition                     (1,372,723)
                                                   ------------
    Total Equity:                                    (4,766,937)
                                                   ------------
TOTAL LIABILITIES AND EQUITY                       $101,904,119
                                                   ============

               Blue Water Automotive Systems, Inc.
                  Unaudited Operating Statement
                  Month Ended February 24, 2008

Total Revenue/Sales                                  $9,298,171
Cost of Sales                                         9,652,762
                                                   ------------
    Gross Profit                                       (354,591)

Expenses:
Officer compensation                                     16,346
Salary Expenses other Employees                         129,900
Employee Benefits & Pensions                             64,606
Payroll Taxes                                            36,933
Other Taxes                                              51,443
Rent and Lease Expense                                   57,773
Interest Expense                                         73,976
Insurance                                                 4,628
Automobile and Truck Expense                             15,686
Utilities (gas, electric, phone)                          6,330
Depreciation                                             26,040
Travel and Entertainment                                  5,306
Repairs and Maintenance                                   2,303
Advertising                                                   -
Supplies, Office Expense, etc                            93,786
Other Specify: Legal                                     17,105
Other Specify: Misc                                         548
                                                   ------------
     Total Expenses                                     602,709
                                                   ------------
Net Operating Profit (Loss)                            (957,300)

Add: Non-Operating Income:
        Interest Income                                       -
        Other Income                                          -

Less: Non-Operating Expenses:
         Professional Fees                              415,423
         Other                                                -  
                                                   ------------
NET INCOME/(LOSS)                                   ($1,372,723)
                                                   ============

                 About Blue Water Automotive

Blue Water Automotive Systems, Inc. designs and manufactures
engineered thermoplastic components and assemblies for the
automotive industry.  The company's product categories include
airflow management, full interior trim/sub-systems, functional
plastic components, and value-added assemblies.  They are
supported by full-service design, program management,
manufacturing and tooling capabilities.  With more than 1,400
employees, Blue Water operates eight manufacturing and product
development facilities and has annual revenues of approximately
US$200 million.  The company's headquarters and technology
center is located in Marysville, Mich.  The company has
operation in Mexico.

In 2005, KPS Special Situations Fund II, L.P., and KPS Special
Situations Fund II(A), L.P., acquired Blue Water Automotive
through a stock purchase transaction.  In 2006, the company
acquired the automotive assets and operations of Injectronics,
Inc., a manufacturer of thermoplastic injection molded
components and assemblies.  KPS then set about reorganizing the
company.  The company implemented a program to improve operating
performance and address its liquidity issues.  During 2007, the
company replaced senior management, closed two facilities, and
reduced overhead spending by one third.

Blue Water Automotive and four affiliates filed for chapter 11
bankruptcy protection Feb. 12, 2008, before the United States
Bankruptcy Court Eastern District of Michigan (Detroit) (Case No.
08-43196).  Judy O'Neill, Esq., and Frank DiCastri, Esq., at Foley
& Lardner, LLP, serves as the Debtors' bankruptcy counsel.  
Administar Services Group LLC acts as the Debtors' claims,
noticing, and balloting agent.  Blue Water's bankruptcy petition
lists assets and liabilities each in the range of US$100 million
to US$500 million.  The Debtors' exclusive plan filing period
expires on June 11, 2008.  (Blue Water Automotive Bankruptcy News,
Issue No. 12; Bankruptcy Creditors' Service Inc.,
http://bankrupt.com/newsstand/or  215/945-7000).


BLUE WATER: Incurs March 2008 Net Loss of $4,123,096
----------------------------------------------------

               Blue Water Automotive Systems, Inc.
                      Unaudited Balance Sheet
                        As of March 30, 2008

ASSETS:
Cash                                                 $1,991,356
Inventory                                             9,097,506
Accounts Receivable                                  54,973,704
Insider Receivables                                           -
Land and Buildings                                            -
Furniture, Fixtures & Equipment                      38,231,077
Accumulated Depreciation                            (10,578,523)
Other: Current Assets                                 8,493,683
Other: Long Term Assets                                  61,251
                                                   ------------
TOTAL ASSETS                                       $102,270,054
                                                   ============
LIABILITIES:
Postpetition Liabilities:                                     -
Accounts Payable                                     $4,111,606
Rent and Lease Payable                                        -
Wages and Salaries                                            -
Taxes Payable                                           657,288
Other:                                                        -