T R O U B L E D C O M P A N Y R E P O R T E R Thursday, May 1, 2008, Vol. 12, No. 103 Headlines ABACUS 2006-11: Moody's Downgrades Ratings on Seven Note Classes ABACUS 2006-15: Moody's Junks Ratings on Eight Classes of Notes AMERICAN LAFRANCE: Confirmation Hearing Adjourned Sine Dine AMERICAN LAFRANCE: Creditors Vote to Accept Reorganization Plan AMERICAN LAFRANCE: Addresses Plan Confirmation Objections ASCALADE COMMS: CCAA Monitor Files Chapter 15 Petition in U.S. ASCALADE COMMS: Chapter 15 Petition Summary ATLANTIS SYSTEMS: Working on Replacement of Defaulted Bank Loan BALLYROCK ABS: Moody's Junks Ratings on Four Classes of Notes BEAR STEARNS ASSET: Fitch Cuts Ratings on Six certificate Classes BFC AJAX: Weak Credit Quality Cues Moody's Four Rating Downgrades BRIGANTINE HIGH: Moody's Cuts Four Ratings on Poor Credit Quality BURNHAM HARBOR: Moody's Cuts Ratings on Three Notes to Low-Bs CABLEVISION SYSTEMS: Eyes $650MM Offer for Tribune's Newsday Unit CAMULOS LOAN: Moody's Attaches 'Ba2' Rating on $24.5 Mil. Notes CARRINGTON MORTGAGE: S&P Junks Rating on Class M-11 Certificates CHL MORTGAGE: Moody's Cuts 42 Tranches' Ratings on Delinquencies CHL MORTGAGE: S&P Puts Ratings on 11 Classes Under Neg CreditWatch CHRYSLER LLC: Financial Results Are Better than Daimler's CHRYSLER LLC: To Review Terms of CAW-Ford Tentative Agreement CLYDESDALE CBO: Notes Paydown Cues S&P to Withdraw Ratings COLOWYO COAL: S&P Affirms 'BB' Rating on $192.8 Million Bonds COLUMBUS PARK: Moody's Puts 'Ba2' Rating on $13 Mil. Class D Notes COMMODORE INT'L: Dutch Subsidiary's Bankruptcy Case Cancelled CONSOLIDATED CONTAINER: S&P Holds 'B-' Rating and Revises Outlook CORNERSTONE MINISTRIES: U.S. Trustee Wants Examiner Appointed CORPORACION DURANGO: Poor Business Cues Fitch to Cut IDRs to B- COUNTRYWIDE FINANCIAL: BofA Promises More Aid to Stop Foreclosures CSFB ABS: S&P Puts Default Rating on Class B 2001-HE16 Certs. DELPHI CORP: Closes Sale of Bearings Business to Hephaestus' Unit DUKE FUNDING: Moody's Junks Ratings on Seven Classes of Notes EINSTEIN NOAH: Board Approves 2008 Bonus Plan for Executives EMPIRE LAND: Turns Over Stake in Palmdale Project to Lessen Debt ENHANCED MORTGAGE: Moody's Reviews 'Ba3' Rating on $20 Mil. Notes EOS AIRLINES: Faces Employee Lawsuit Over Termination EOS AIRLINES: Taps Menzies Corporate as Joint U.K. Administrators EOS AIRLINES: Files List of 19 Largest Unsecured Creditors ESMARK INC: Gets Nasdaq Non-compliance Notice on 10-K Filing Delay EXTRA SPACE: Failed ARS Auctions Move Liquidity, Spurs $1.4MM Loss FC CBO: Notes Paydown Prompts S&P to Withdraw Rating FINLAY ENTERPRISES: Has Until July 1 to Comply with Nasdaq Rules FIRST FRANKLIN: Fitch Chips Ratings on $1 Billion Certificates FREMONT HOME: Fitch Lowers Ratings on Three Cert. Classes to B G-I HOLDINGS: Wants Plan Filing Period Extended to Oct. 30 GENERAL MOTORS: Posts $3.3 Bil. Net Loss in 2008 First Quarter GENERATION RESOURCES: Files for Chapter 7 Bankruptcy Protection GLOBAL PREF: S&P Cuts Preferred Shares Rating to B from B+ GMAC 2005-C1: Fitch Junks Ratings on Three Certificate Classes GSC ABS: Eroding Credit Quality Cues Moody's Rating Downgrades GSR MORTGAGE: High Delinquencies Prompt S&P to Lower Ratings HARBOURVIEW CDO: Moody's Cuts Ratings on $311.25 Mil. Notes to B3 INSIGHT MIDWEST: Insight, Comcast Division Cues Moody's B1 Rating IXIS ABS: Moody's Cuts Five Notes' Ratings on Poor Credit Quality JPMORGAN CHASE: S&P Lowers Ratings on Three Certificate Classes JPMORGAN CHASE: Fitch Puts B-/DR1 Rating on $10.8MM Class P Certs. KEYS FITNESS: Voluntary Chapter 11 Case Summary LOOK COMMS: February 29 Balance Sheet Upside Down By $1.9 Million LUNAR FUNDING: Moody's Reviews 'Ba1' Rating on $200 Million Notes LUNAR FUNDING: Moody's Junks Ratings on Three Classes of Notes LAWRENCE J. PETERS: Case Summary & 11 Largest Unsecured Creditors LOS OJUELOS: Case Summary & Six Largest Unsecured Creditors MACROVISION SOLUTIONS: $50MM Loan Increase Cues S&P to Cut Ratings MAINLAND NURSERY: Case Summary & 20 Largest Unsecured Creditors MAJESTIC STAR: Moody's Reviews Low-B Ratings For Possible Cuts MANUEL GONZALEZ: Case Summary & 10 Largest Unsecured Creditors MARK L. HAGEN: Case Summary & 11 Largest Unsecured Creditors MARKWEST ENERGY: Moody's Keeps 'B1' Ratings on Same Terms on Notes MARKWEST ENERGY: Improved Recovery Cues S&P to Hold 'B+' Rating MESA 2002-3: S&P Lowers CCC Rating to CC on Class B-2 Notes MULBERRY STREET: Moody's Reviews 'Ba1' Rating on $52.5 Mil. Notes MAXKO PETROLEUM: Case Summary & 20 Largest Unsecured Creditors NORTH STREET: Six Classes of Notes Get Moody's Rating Downgrades NORTHLAKE CDO: Moody's Reviews 'B3' Ratings on $45 Mil. Notes OCEANVIEW CBO: Two Classes of Notes Get Moody's Low-B Ratings OSI RESTAURANT: S&P Revises Outlook to Negative from Stable OTC INTERNATIONAL: Cannot Access Lender's Cash; to Sell Assets PALISADES CDO: Moody's Downgrades Ratings on Five Notes Classes PHARMED GROUP: Wants Exclusive Plan Filing Period Moved to May 26 PHH ALTERNATIVE: Moody's Downgrades Ratings on Eight Tranches PINNACLE POINT: Moody's Downgrades Ratings on Three Note Classes PRESIDENTIAL LIFE: Improved Leverage Prompts S&P to Lift Ratings QUEBECOR WORLD: Final Recovery is 41.1%, Global DiSCS Says RESTRUCTURED ASSET: S&P Chips Rating on $75MM Certs. to BB from A+ RANGE RESOURCES: S&P Rates Proposed $250 Million Notes BB RAPID LINK: Completes Initial Round of $7 Bil. Debt Financing RENAISSANCE HOME: Fitch Downgrades Ratings on $46.7MM Certificates RFC CDO: Moody's Downgrades Ratings on Five Classes of Notes RIVERSIDE CASINO: Moody's Withdraws Ratings on Loan Redemption RIVERSIDE PARK: $13 Mil. Class D Notes Gets Moody's 'Ba2' Rating SAND TECHNOLOGY: Earns $1 Mil. in Private Placement of 1,114 Units SASCO TRUSTS: Higher Delinquencies Cue Moody's Rating Downgrades SCHAWK INC: Completes Financial Restatement for Fiscal 2005 & 2006 SIRVA INC: Resolves Creditors Committee's Plan Objections SOUNDVIEW HOME: Moody's Downgrades Ratings on Two Cert. Classes SPACEHAB INC: Has Until Oct 6 to Comply with Nasdaq Pricing Rule STRUCTURED FINANCE: Three Note Classes Get Moody's Junk Ratings SUNCREST LLC: Court Okays Bidding Procedures for Sale of Assets TALON FUNDING: Moody's Reviews 'B2' Rating on $402.5 Mil. Notes TARPON INDUSTRIES: Case Summary & 40 Largest Unsecured Creditors TERWIN MORTGAGE: Recent Losses Cue S&P to Junk Rtng. Cl. M-2 Notes THORNBURG MORTGAGE: Fitch Revises ID Rating to 'CCC' from 'RD' TRIBUNE CO: Newsday Unit May Get $650MM Bid from Cablevision UNIQUE BROADBAND: Feb. 29 Balance Sheet Upside Down by $2.0 Mil. VALERO ENERGY: Net Income Plummets to $261MM in 2008 First Quarter VALLEY CLUB: Case Summary & 20 Largest Unsecured Creditors VERSO PAPER: Parent Co.'s Stock Sale Plan Cues S&P Positive Watch VICOR TECHNOLOGIES: Converts $1.25 Mil. Debt to Shares on Default VONAGE HOLDINGS: Secures $215MM Financing to Redeem $253MM Notes WACHOVIA BANK: Fitch Lifts Rating on $4.5MM Certs. to BB- from B+ WILSONS LEATHER: KPMG LLP Raises Substantial Doubt WELLMAN INC: CRO Fees Shouldn't be Charged to Second Lien Lenders WELLMAN INC: Panel Says Stay Has Been Vacated as to Lenders WORLDSPACE INC: Grant Thornton Raises Substantial Doubt ZIFF DAVIS: Amends Plan Amid Unsecured Creditors' Support * Moody's Says P&C Insurers' Share Buybacks Could Slow in 2008 * S&P Takes Various Rating Actions on Synthetic CDO Transactions * S&P Lowers Ratings on 196 Classes from 96 US NIM Securities * S&P Cuts Ratings on 2,183 Classes of RMBS from 334 Transactions * Hughes Watters' Kitchens to Talk on 363 Sales in Austin Today * Chapter 11 Cases with Assets & Liabilities Below $1,000,000 ********* ABACUS 2006-11: Moody's Downgrades Ratings on Seven Note Classes ---------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Abacus 2006-11, Ltd.: Class Description: $82,500,000 Class A-1 Variable Rate Notes Due 2045 -- Prior Rating: Aa3, on review for possible downgrade -- Current Rating: A2, on review for possible downgrade Class Description: $20,000,500 Class A-2 Series 1 Variable Rate Notes Due 2045 -- Prior Rating: A3, on review for possible downgrade -- Current Rating: Baa3, on review for possible downgrade Class Description: $25,937,500 Class A-2 Series 2 Variable Rate Notes Due 2045 -- Prior Rating: A3, on review for possible downgrade -- Current Rating: Baa3, on review for possible downgrade Class Description: $19,375,000 Class B Variable Rate Notes Due 2045 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: Ba3, on review for possible downgrade Class Description: $12,500,000 Class B Series 2 Variable Rate Notes Due 2045 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: Ba3, on review for possible downgrade Class Description: $18,750,000 Class C Variable Rate Notes Due 2045 -- Prior Rating: Ba1, on review for possible downgrade -- Current Rating: Caa1, on review for possible downgrade Class Description: $10,000,000 Class D Variable Rate Notes Due 2045 -- Prior Rating: B1, on review for possible downgrade -- Current Rating: Caa3, on review for possible downgrade According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. ABACUS 2006-15: Moody's Junks Ratings on Eight Classes of Notes --------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by ABACUS 2006-15, Ltd.: Class Description: $70,000,000 Class A-2 Variable Rate Notes, Due 2045 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: Caa2, on review for possible downgrade Additionally, Moody's downgraded these notes: Class Description: $36,000,000 Class A-3 Variable Rate Notes, Due 2045 -- Prior Rating: Ba2, on review for possible downgrade -- Current Rating: Ca Class Description: $37,500,000 Class B Series 1 Variable Rate Notes, Due 2045 -- Prior Rating: B2, on review for possible downgrade -- Current Rating: Ca Class Description: $6,000,000 Class B Series 2 Variable Rate Notes, Due 2037 -- Prior Rating: B2, on review for possible downgrade -- Current Rating: Ca Class Description: $41,150,000 Class C Series 1 Variable Rate Notes, Due 2045 -- Prior Rating: Caa1, on review for possible downgrade -- Current Rating: C Class Description: $2,850,000 Class C Series 2 Variable Rate Notes, Due 2037 -- Prior Rating: Caa1, on review for possible downgrade -- Current Rating: C Class Description: $14,650,000 Class D Series 1 Variable Rate Notes, Due 2045 -- Prior Rating: Caa2, on review for possible downgrade -- Current Rating: C Class Description: $2,850,000 Class D Series 2 Variable Rate Notes, Due 2037 -- Prior Rating: Caa2, on review for possible downgrade -- Current Rating: C According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. AMERICAN LAFRANCE: Confirmation Hearing Adjourned Sine Dine ----------------------------------------------------------- The hearing to consider confirmation of the Third Amended Plan of Reorganization of American LaFrance, LLC, has been adjourned to a date yet to be specified by the U.S. Bankruptcy Court for the District of Delaware. A full-text copy of the Third Amended Plan of Reorganization is available for free at: http://bankrupt.com/misc/ALF_ThirdAmendedPlan.pdf With the consent of the Official Committee of Unsecured Creditors, the DIP Lenders, and the RT Jedburg Commerce Park, LLC, the landlord for the Debtor's Summerville facility, the Debtor has sought an adjournment of the Confirmation Hearing, according to Christopher A. Ward, Esq., at Klehr, Harrison, Harvey, Branzburg & Ellers, LLP, in Wilmington, Delaware. The Confirmation Hearing was originally set for April 29, 2008. About American LaFrance Headquartered in Summerville, South Carolina, American LaFrance LLC -- http://www.americanlafrance.com/-- is one of the oldest fire apparatus manufacturers and one of the top six suppliers of emergency vehicles in North America. The company filed for Chapter 11 protection on Jan. 28, 2008 (Bankr. D. Del. Case No. 08-10178). Ian T. Peck, Esq., and Abigail W. Ottmers, Esq., at Haynes and Boone LLP, are the Debtor's proposed Lead Counsel. Christopher A. Ward, Esq., at Klehr, Harrison, Harvey, Branzburg & Ellers LLP, are the Debtor's proposed local counsel. In its schedules of assets and debts filed Feb. 4, 2008, the Debtor disclosed $188,990,680 in total assets and $89,065,038 in total debts. The Debtor's exclusive period to file a plan expires on May 27, 2008. (American LaFrance Bankruptcy News, Issue No. 15; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN LAFRANCE: Creditors Vote to Accept Reorganization Plan --------------------------------------------------------------- American LaFrance, LLC, has received support from more than 90% of its creditors entitled to vote on its Third Amended Plan of Reorganization. Kurtzman Carson Consultants LLC, the voting agent tapped by the Debtor, certified the voting results to the U.S. Bankruptcy Court for the District of Delaware. Kurtzman gathered close to 300 ballots. American LaFrance LLC Plan Voting Results Ballots Accepting Plan Ballots Rejecting Plan ---------------------------- ------------------------- Number Amount Number Amount (% of Amount (% of Amount (% of Amount (% of Amount Class Voted) Voted) Voted) Voted) ----- ------------ ------------ ------------ ----------- Class 1 1 $154,467,080 0 $0 Secured (100.0%) (100.0%) (0.0%) (0.0%) Claims of Prepetition Lenders ----- ------------ ------------ ------------ ----------- Class 4 200 46,592,347 21 6,592,347 General (90.5%) (87.6%) (10.5%) (12.4%) Unsecured Claims ----- ------------ ------------ ------------ ----------- Class 5 272 397,015 0 0 Convenience (100.0%) (100.0%) (0.0%) (0.0%) Claims ===== ============ ============ ============ =========== A copy of the complete schedule of the Tabulated Ballots is available for free at: http://bankrupt.com/misc/ALF_BallotReport.pdf According to Michael J. Paque, a senior consultant at Kurtzman Carson Consultants LLC, certain sets of ballots were excluded in the tabulation because they did not meet the requirements of a valid ballot set in the Solicitation Procedures Order. The unacceptable ballots include: * Class 4 Ballots that were either late-filed or not a member of the voting class, a list of which is available for free at http://bankrupt.com/misc/ALF_Unacceptable_Class4Ballots.pdf * Class 5 Ballots that were late-filed, a list of which is available for free at: http://bankrupt.com/misc/ALF_Unacceptable_Class5Ballots.pdf About American LaFrance Headquartered in Summerville, South Carolina, American LaFrance LLC -- http://www.americanlafrance.com/-- is one of the oldest fire apparatus manufacturers and one of the top six suppliers of emergency vehicles in North America. The company filed for Chapter 11 protection on Jan. 28, 2008 (Bankr. D. Del. Case No. 08-10178). Ian T. Peck, Esq., and Abigail W. Ottmers, Esq., at Haynes and Boone LLP, are the Debtor's proposed Lead Counsel. Christopher A. Ward, Esq., at Klehr, Harrison, Harvey, Branzburg & Ellers LLP, are the Debtor's proposed local counsel. In its schedules of assets and debts filed Feb. 4, 2008, the Debtor disclosed $188,990,680 in total assets and $89,065,038 in total debts. The Debtor's exclusive period to file a plan expires on May 27, 2008. (American LaFrance Bankruptcy News, Issue No. 15; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN LAFRANCE: Addresses Plan Confirmation Objections --------------------------------------------------------- Christopher A. Ward, Esq., at Klehr, Harrison, Harvey, Branzburg & Ellers, LLP, in Wilmington, Delaware, relates that American LaFrance, LLC, has spent considerable time reviewing the objections filed against its Third Amended Plan of Reorganization. He avers that in order to alleviate the concerns raised by the objecting parties and to better frame the issues, the Debtor has come up with a comprehensive omnibus response, detailing the treatment and resolution of the Objections. Mr. Ward lists down the Objecting Parties and the Debtor's proposed actions towards the resolution of those Parties' Objections: * INCAT Systems Inc.'s objection has been resolved as the Debtor and INCAT have agreed to the terms of the assumption of the parties' contract. * The Objection of Freightliner of San Antonio, Ltd., has been resolved. The parties agree that the Debtor will assume (i) the 15 Condor Trucks with Serial Nos. Z69230 through Z69244, and (ii) the dealership agreement which cover the San Antonio and Laredo, Texas Dealerships. All objections on flooring credits, and interim carrying costs under the Sale and Repurchase Agreement, have been settled. * The adequate assurance of future performance issue of RT Jedburg Commerce Park will be addressed at the confirmation hearing. As of April 25, 2008, the Debtor is continuing negotiations with RT Jedburg since the Debtor intends to present a resolution of the Objection by the confirmation hearing. * The City of Bellingham, Washington's clamor for adequate assurance of future performance will be directed at the confirmation hearing. The Debtor, however, clarifies that the City's Objection raises a claim resolution issue, instead of a plan confirmation issue. The City's assertion of a secured claim against the Debtor will be addressed pursuant to the claims resolution process. * The Debtor asserts that Southwest Emergency Response Team has the Plan misunderstood, as the Plan does not impair SERT's rights against any bond. * According to the Debtor, the City of Downingtown is not a secured creditor of the Debtor though the Claimant may have a secured interest in the performance bond. However, the Debtor reiterates that the Plan does not impair the City's rights against any bond. * The Debtor will address Pneu-Mech Systems' issue on adequate assurance of payment at the confirmation hearing. As of April 25, 2008, the Debtor is negotiating with Pneu-Mech to resolve the Objection in time for the confirmation hearing. To the extent that an Objection is not resolved prior to the confirmation hearing, the Debtor says it intends to ask the U.S. Bankruptcy Court for the District of Delaware to consider the unresolved Objections at a hearing to be scheduled after the confirmation of the Plan. Other Parties Reply RT Jedburg Commerce Park, LLC, complains that the Plan is not confirmable to the extent the Debtor contends that the language of the Plan allows it to "assume" the Summerville Property and then, after confirmation, determine whether the proposed cure satisfies the statutory requirements of assuming a contract. RT Jedburg asserts that the Plan ails to comply with Section 365(b)(1)(A) of the Bankruptcy Code, which requires a determination of whether the Lease can be assumed for the Proposed Cure no later than the entry of the confirmation order. In a separate letter to the Court, Beth Gouge, secretary of Limestone Cove Volunteer Fire Department, tells the Court that LCVFD no longer has a contract pending with Deep South or the Debtor. Deep South broke the Contract by failing to deliver a truck by the due date despite LCVFD's attempts to reach Dennis Graves of Deep South through e-mails to set another grant deadline of the truck. She discloses that Deep South neither responded to the emails nor upheld the agreement. About American LaFrance Headquartered in Summerville, South Carolina, American LaFrance LLC -- http://www.americanlafrance.com/-- is one of the oldest fire apparatus manufacturers and one of the top six suppliers of emergency vehicles in North America. The company filed for Chapter 11 protection on Jan. 28, 2008 (Bankr. D. Del. Case No. 08-10178). Ian T. Peck, Esq., and Abigail W. Ottmers, Esq., at Haynes and Boone LLP, are the Debtor's proposed Lead Counsel. Christopher A. Ward, Esq., at Klehr, Harrison, Harvey, Branzburg & Ellers LLP, are the Debtor's proposed local counsel. In its schedules of assets and debts filed Feb. 4, 2008, the Debtor disclosed $188,990,680 in total assets and $89,065,038 in total debts. The Debtor's exclusive period to file a plan expires on May 27, 2008. (American LaFrance Bankruptcy News, Issue No. 15; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ASCALADE COMMS: CCAA Monitor Files Chapter 15 Petition in U.S. -------------------------------------------------------------- In connection with the on-going legal proceedings filed by Ascalade Communications Inc. and Ascalade Technologies Inc. in Canada under the Companies' Creditors Arrangement Act, on April 29 2008, Deloitte & Touche Inc., the court-appointed monitor in the CCAA proceedings, on behalf of the companies, filed a case under Chapter 15 of the U.S. Bankruptcy Code to seek a stay of proceedings with respect to any actions which have or might be brought against them in the United States. Upon recognition by the U.S. Court, the action previously filed against Ascalade by Riparius Ventures LLC will be stayed. Any creditors in the United States with claims against the companies will eventually be able to file Proofs of Claim in the CCAA proceeding once the Companies have filed a Plan of Arrangement under the CCAA. Any recovery in the CCAA for creditors and other stakeholders, including shareholders, is uncertain and is highly dependent upon a number of factors, including the recovery from the sale of the Company's factory and equipment in the People's Republic of China and the outcome of the Scheme of Arrangement in Hong Kong. The company filed on March 3, 2008, a petition in the Supreme Court of British Columbia under the Companies' Creditors Arrangement Act, the Canada Business Corporations Act and the British Columbia Business Corporations Act. Based in Richmond, British Columbia, Ascalade Communications Inc. (TSX: ACG) -- http://www.ascalade.com/-- design, develop and manufacture digital wireless communication products and works with distributors, telecommunication companies, and technology partners to deliver digital communication products to the end consumer. Their products include digital cordless phones, voice over Internet protocol phones, digital wireless baby monitors and digital wireless conference phones. They deliver their products by offering its partners and customers complete vertical integration, from product designs and development to final production. These products are distributed under more than 80 regional brands in more than 35 countries, and are available through retail stores like Radio Shack, Target, Best Buy and Wal- Mart, as well as through on-line channels like Dell and Amazon.com. Ascalade has design, manufacturing and distribution facilities in Richmond, British Columbia (head office), Qingyuan (China), Hong Kong and a sales office in Hertfordshire, (United Kingdom). On the Net: http://www.ascalade.com/ ASCALADE COMMS: Chapter 15 Petition Summary ------------------------------------------- Petitioner: Jervis Rodrigues Senior Vice-President Deloitte & Touche, Inc. Debtor: Ascalade Communications, Inc. 12051 Riverside Way Richmond, BC V6W 1K7 Canada Case No.: 08-10612 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Ascalade Technologies, Inc. 08-10616 Chapter 15 Petition Date: April 29, 2008 Court: Northern District of Illinois (Chicago) Judge: Susan Pierson Sonderby Petitioner's Counsel: Jeffrey G. Close, Esq. Email: jclose@chapman.com Chapman and Cutler, LLP 111 West Monroe St. Chicago, IL 60603 Tel: (312) 845-2984 Fax: (312) 701-6631 http://www.chapman.com/ Ascalade Communications, Inc's Quarterly Financial Condition as of September 2007: Total Assets: $99,630,000 Total Debts: $40,410,000 ATLANTIS SYSTEMS: Working on Replacement of Defaulted Bank Loan --------------------------------------------------------------- Atlantis Systems Corp. provided an update on the status of its financing efforts. Atlantis confirmed that it is continuing to work diligently to close a financing that would replace its bank term loan which is currently in default. Atlantis confirmed that negotiations are ongoing with potential lenders and that supporting and legal documents are expected to be finalized next week. However, as terms and conditions are still under negotiation, there can be no assurance that any financing will be completed. On March 25, 2008, Atlantis reported that it will not be able to meet the March 31, 2008 deadline for filing with the securities regulatory authorities in Ontario and Quebec its annual financial statements. On April 1, 2008, the company confirmed that it has not met the regulatory filing deadline of March 31, 2008 for filing of its management’s discussion and analysis and annual information form for the fiscal year ended Dec. 31, 2007 and the related certifications. On April 7, 2008, Atlantis provided an update on the status of its proposed financing and confirmed that the proposed new lender, ComVest Capital LLC, has completed its due diligence and has advised Atlantis that it intends to pursue the financing. According to the Troubled Company Reporter on April 21, 2008, Atlantis advised that the annual meeting of the company's shareholders, which has been scheduled for May 22, 2008, will be deferred to a later date to be determined once the annual filings have been filed. As required by CSA Notice 57-301, Atlantis will provide bi-weekly updates on the status of the failure to file its annual filings until they have been filed. An "issuer" cease trade order could be issued if the annual filings are not filed before May 31, 2008. An "issuer" cease trade order may be imposed sooner if Atlantis fails to provide bi-weekly updates. About Atlantis Systems Headquartered near Toronto, Canada, Atlantis (TSX: AIQ) is a globally recognized training integrator for customers in the military, commercial aviation sectors and energy markets. Atlantis combines desktop and full-flight simulation, knowledge management, learning management systems, flight training devices and multimedia e-learning to provide integrated flight training and aircraft maintenance training to a global list of customers. For more than 29 years, Atlantis has drawn on its extensive engineering background and proprietary technology to offer cost- efficient, state of the art alternatives to real-life conditions and situations. Atlantis is registered under a number of quality management programs including ISO 9001:2000, AS 9100:2004, CSA- Z299.1-1985, Boeing BQMS D6-82479 and Rockwell Collins RC-9000, among others. On the Net: http://www.atlantissi.com/ BALLYROCK ABS: Moody's Junks Ratings on Four Classes of Notes ------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Ballyrock ABS CDO 2007-1 Limited: Class Description: $56,250,000 Class A-2 Senior Secured Floating Rate Notes Due 2047 -- Prior Rating: Ba1, on review for possible downgrade -- Current Rating: Caa1, on review for possible downgrade Additionally, Moody's downgraded these notes: Class Description: $56,250,000 Class B Secured Floating Rate Notes Due 2047 -- Prior Rating: Ba2, on review for possible downgrade -- Current Rating: Ca Class Description: $27,500,000 Class C Secured Deferrable Floating Rate Notes Due 2047 -- Prior Rating: B3, on review for possible downgrade -- Current Rating: Ca Class Description: $26,250,000 Class D Mezzanine Secured Deferrable Floating Rate Notes Due 2047 -- Prior Rating: Caa2, on review for possible downgrade -- Current Rating: Ca According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. BEAR STEARNS ASSET: Fitch Cuts Ratings on Six certificate Classes ----------------------------------------------------------------- Fitch Ratings has taken rating actions on Bear Stearns Asset Backed Securities mortgage pass-through certificates. Unless stated otherwise, any bonds that were previously placed on Rating Watch Negative are now removed. Affirmations total $75.5 million and downgrades total $79.1 million. BSABS Trust 2003-ABF1 -- $13.7 million class A affirmed at 'AAA'; -- $28.8 million class M downgraded to 'A+' from 'AA'. Deal Summary -- Originators: American Business Financial Services -- 60+ day Delinquency: 21.26% -- Realized Losses to date (% of Original Balance): 2.38% Bear Stearns Asset Backed Securities, Inc 2004-HE6 -- $14.8 million class M-1 affirmed at 'AA'; -- $47.0 million class M-2 affirmed at 'A'; -- $13.8 million class M-3 downgraded to 'BBB' from 'A-'; -- $11.5 million class M-4 downgraded to 'BB+' from 'BBB+'; -- $10.1 million class M-5 downgraded to 'BB' from 'BBB'; -- $9.0 million class M-6 downgraded to 'B' from 'BBB-'; -- $5.9 million class M-7B downgraded to 'C/DR5' from 'BB'. Deal Summary -- Originators: People's Choice Home Loan, Inc. (42.15%), Fremont Investment & Loan (30.38%), Encore Credit Corporation (17.06%). -- 60+ day Delinquency: 20.49% -- Realized Losses to date (% of Original Balance): 1.88% BFC AJAX: Weak Credit Quality Cues Moody's Four Rating Downgrades ----------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by BFC Ajax CDO Ltd.: Class Description: $15,000,000 Class B Floating Rate Notes Due 2046 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: Ba2, on review for possible downgrade Class Description: $10,000,000 Class X Deferrable Floating Rate Notes Due 2046 -- Prior Rating: Ba3, on review for possible downgrade -- Current Rating: B3, on review for possible downgrade Class Description: $20,000,000 Class C Deferrable Floating Rate Notes Due 2046 -- Prior Rating: B3, on review for possible downgrade -- Current Rating: Caa1, on review for possible downgrade Additionally, Moody's downgraded these notes: Class Description: $40,000,000 Class D Deferrable Floating Rate Notes Due 2046 -- Prior Rating: Caa2, on review for possible downgrade -- Current Rating: Ca According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. BRIGANTINE HIGH: Moody's Cuts Four Ratings on Poor Credit Quality ----------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the rating of four classes of notes issued by Brigantine High Grade Funding, Ltd. The notes affected by this rating action are: Class Description: $500,000,000 Class A-1B Floating Rate Notes Due 2051 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: B2, on review for possible downgrade Class Description: $100,000,000 Class A-1C Floating Rate Notes Due 2051 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: B2, on review for possible downgrade Class Description: Up to $1,180,000,000 Class A-1AL Floating Rate Notes Due 2007 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: B2, on review for possible downgrade Class Description: Up to $100,000,000 Class A-1DL Floating Rate Notes Due 2008 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: B2, on review for possible downgrade The rating actions reflect deterioration in the credit quality of the underlying portfolio, as well as the occurrence on April 7, 2008, as reported by the Trustee, of an event of default caused a default in the payment of accrued interest on the Class A-2 and Class B Notes, as described in Section 5.1(a) of the Indenture dated Dec. 20, 2006. As provided in Article V of the Indenture during the occurrence and continuance of an Event of Default, certain parties to the transaction may be entitled to direct the Trustee to declare the maturity of the notes to be accelerated and to commence the process of sale and liquidation of the collateral. The rating downgrades taken reflect the increased expected loss associated with each tranche. Losses are attributed to diminished credit quality on the underlying portfolio. The severity of losses of certain tranches may be different, however, depending on the remedy pursued following the event of default. Because of this uncertainty, the ratings assigned to the Class A-1AL, Class A-1B, Class A-1C and Class A-1DL remain on review for possible further action. Brigantine High Grade Funding, Ltd. is a collateralized debt obligation backed primarily by a portfolio of structured finance securities. BURNHAM HARBOR: Moody's Cuts Ratings on Three Notes to Low-Bs ------------------------------------------------------------- Moody's Investors Service downgraded and left on review for possible further downgrade the ratings on these notes issued by Burnham Harbor CDO 2006-1 Ltd.: Class Description: $110,000,000 Class A-1LB Floating Rate Notes Due September 2039 -- Prior Rating: A2, on review for possible downgrade -- Current Rating: Baa2, on review for possible downgrade Class Description: $60,000,000 Class A-2L Floating Rate Notes Due September 2039 -- Prior Rating: Baa2, on review for possible downgrade -- Current Rating: Ba1, on review for possible downgrade Class Description: $54,000,000 Class A-3L Floating Rate Notes Due September 2039 -- Prior Rating: Baa3, on review for possible downgrade -- Current Rating: Ba3, on review for possible downgrade Class Description: $29,000,000 Class B-1L Floating Rate Notes Due September 2039 -- Prior Rating: Ba1, on review for possible downgrade -- Current Rating: B1, on review for possible downgrade According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. CABLEVISION SYSTEMS: Eyes $650MM Offer for Tribune's Newsday Unit ----------------------------------------------------------------- Cablevision Systems Corporation intends to acquire Newsday from Tribune Company for about $650 million or $70 million more than the previous offers of New York Post owner News Corp. and Daily News owner Mortimer Zuckerman, The Wall Street Journal's Vishesh Kumar and Sam Schechner report. According to WSJ, Cablevision's bid could lead to the auction of the newspaper. It will be the second proposal to counter an informal agreement reached with News Corp., which values Newsday at $580 million, WSJ notes. WSJ, citing a person familiar with the situation, says the cable operator and New York Observer owner Jared Kushner had been talking about a joint bid, but it is unclear whether Cablevision is working with Mr. Kushner in its offer. Mr. Zuckerman was the first to counter News Corp.'s preliminary deal, matching the $580 million offer for the paper last week, WSJ relates. Cablevision's offer isn't only higher, it is also better as the cable operator would likely face fewer regulatory barriers than either News Corp. or Mr. Zuckerman, WSJ says. Both rivals could face tougher antitrust scrutiny due to their current New York newspaper holdings, WSJ notes. According to WSJ quoting Donald Baker, a former head of the antitrust division at the U.S. Department of Justice: "I would definitely think that Cablevision has more chance of sailing through." About Cablevision Systems Cablevision Systems Corporation (NYSE: CVC) -- is a cable operator in the United States that operates cable programming networks, entertainment businesses and telecommunications companies. As of Dec. 31, 2006, the company served approximately 3.1 million basic video subscribers in and around the New York City metropolitan area. Through its wholly owned subsidiary, Rainbow Media Holdings LLC, Cablevision owns interests in and manages numerous national and regional programming networks, the Madison Square Garden sports and entertainment businesses, and cable television advertising sales companies. Through Cablevision Lightpath Inc., its wholly owned subsidiary, the company provides telephone services and Internet access to the business market. The company operates in three segments: Telecommunications Services, Rainbow and Madison Square Garden. As reported in the Troubled Company Reporter on March 11, 2008, Cablevision Systems Corporation's balance sheet at Dec. 31, 2007, showed total assets of $9.1 billion and total debts of $14.2 billion, resulting in a $5.0 billion stockholders' deficit. Deficit, as of Dec. 31, 2006, was $5.3 billion. * * * As reported in the Troubled Company Reporter on Feb. 11, 2008, Moody's Investors Service upgraded to Ba3, from B1, the Corporate Family Ratings for Cablevision System Corporation and its wholly- owned indirect subsidiary Rainbow National Services LLC. The rating outlooks for both companies were also changed to Stable from Developing. About Tribune Company Headquartered in Chicago, Tribune Company (NYSE: TRB) -- http://www.tribune.com/-- is a media company, operating businesses in publishing, interactive and broadcasting. It reaches more than 80% of U.S. households and is the only media organization with newspapers, television stations and websites in the nation's top three markets. In publishing, Tribune's leading daily newspapers include the Los Angeles Times, Chicago Tribune, Newsday (Long Island, New York), The Sun (Baltimore), South Florida Sun-Sentinel, Orlando Sentinel and Hartford Courant. The company's broadcasting group operates 23 television stations, Superstation WGN on national cable, Chicago's WGN-AM and the Chicago Cubs baseball team. * * * As reported in the Troubled Company Reporter on March 20, 2008, Standard & Poor's Ratings Services lowered its ratings on the class A and B units from the $79.795 million Structured Asset Trust Unit Repackaging Tribune Co. Debenture Backed Series 2006-1 to 'CCC' from 'CCC+' and removed them from CreditWatch with negative implications. CAMULOS LOAN: Moody's Attaches 'Ba2' Rating on $24.5 Mil. Notes --------------------------------------------------------------- Moody's Investors Service assigned these ratings to Notes issued by Camulos Loan Vehicle I, Ltd.: (1) Aaa to the $555,000,000 Class A Senior Term Notes Due 2018; (2) Aa2 to the $46,750,000 Class B Senior Term Notes Due 2018; (3) A2 to the $31,500,000 Class C Deferrable Mezzanine Term Notes Due 2018; (4) Baa2 to the $20,500,000 Class D Deferrable Mezzanine Term Notes Due 2018; and (5) Ba2 to the $24,500,000 Class E Deferrable Junior Term Notes Due 2018. The Moody's ratings of the Notes address the ultimate cash receipt of all required interest and principal payments, as provided by the Notes' governing documents, and are based on the expected loss posed to Noteholders, relative to the promise of receiving the present value of such payments. The ratings reflect the risks due to the diminishment of cash flow from the underlying portfolio consisting of senior secured loans and, second lien loans, senior secured bonds, senior unsecured loans and senior unsecured bonds due to defaults, the transaction's legal structure and the characteristics of the underlying assets. Camulos Capital LP will manage the selection, acquisition and disposition of collateral on behalf of the Issuer. CARRINGTON MORTGAGE: S&P Junks Rating on Class M-11 Certificates ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on four classes of asset-backed pass-through certificates issued by Carrington Mortgage Loan Trust's series 2005-NC3 and 2005-NC5. In addition, S&P affirmed its ratings on six classes from series 2004-NC1. The downgrades reflect credit enhancement levels that are insufficient to support the previous ratings given the level of severe delinquencies for each of the transactions. The transactions with lowered ratings have sizeable loan amounts that are severely delinquent, which suggests that performance trends are likely to deteriorate. The severe delinquencies relative to overcollateralization are (series: severe delinquency amount {$}; % of current pool balance; multiple of O/C): -- 2005-NC3: $144.463 million; 24.33%; 2.74x; and -- 2005-NC5: $187.992 million; 31.97%; 5.18x. These severely delinquent loan amounts have increased significantly over levels from a year ago (series: multiple of amount recorded in March 2007): -- 2005-NC3: 1.63x; and -- 2005-NC5: 2.14x. As of the March 2008 remittance report, cumulative realized losses for the deals were as follows (series: realized losses {$}; % of original pool balance): -- 2005-NC3: $13,190,305; 0.74%; and -- 2005-NC5: $11,172,123; 0.83%. Losses for the transactions with lowered ratings have been relatively moderate to date; however, the increases in delinquencies indicate that current performance trends may further compromise credit support for the downgraded classes. The affirmations reflect both current and projected credit support percentages that meet or exceed the loss coverage levels for the current ratings. The other outstanding ratings on these transactions are not affected. Credit support for these transactions is provided through a combination of subordination, excess interest, and O/C. At closing, collateral for the transactions consisted of loans that were originated by New Century Mortgage Corp. and are a mix of adjustable- and fixed-rate, interest-only and fully amortizing, first- and second-lien subprime mortgage loans. The deals with IO loans had IO periods, which initially ranged from 36 to 84 months. Ratings Lowered Carrington Mortgage Loan Trust Asset-backed pass-through certificates Rating ------ Series Class To From ------ ----- -- ------ 2005-NC3 M-9 BB- BB+ 2005-NC5 M-9 BB- BB 2005-NC5 M-10 B- B 2005-NC5 M-11 CCC B Ratings Affirmed Carrington Mortgage Loan Trust 2004-NC1 Asset-backed pass-through certificates Class Rating ----- ------ M-1 AA M-2 A M-3 A- M-4 BBB+ M-5 BBB M-6 BBB- CHL MORTGAGE: Moody's Cuts 42 Tranches' Ratings on Delinquencies ---------------------------------------------------------------- Moody's Investors Service has downgraded the ratings of 42 tranches from fourteen Alt-A transactions issued by CHL Mortgage Pass-Through Trust. Thirteen tranches remain on review for possible further downgrade. Additionally, 62 tranches were placed on review for possible downgrade. The collateral backing these transactions consists primarily of first-lien, fixed and adjustable-rate, Alt-A mortgage loans. The ratings were downgraded, in general, based on higher than anticipated rates of delinquency, foreclosure, and REO in the underlying collateral relative to credit enhancement levels. The actions are a result of Moody's on-going review process. Complete rating actions are: Issuer: CHL Mortgage Pass-Through Trust 2005-HYB10 -- Cl. 1-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 3-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 3-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 4-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 4-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 5-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M, Downgraded to Ba2 from Aa2 -- Cl. B-1, Downgraded to B2 from Baa2; Placed Under Review for further Possible Downgrade -- Cl. B-2, Downgraded to Ca from B2 Issuer: CHL Mortgage Pass-Through Trust 2005-HYB6 -- Cl. M, Downgraded to A1 from Aa2 -- Cl. B-1, Downgraded to Ba1 from A2 -- Cl. B-2, Downgraded to B2 from Baa2; Placed Under Review for further Possible Downgrade Issuer: CHL Mortgage Pass-Through Trust 2005-HYB7 -- Cl. 1-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 3-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 3-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 5-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 5-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 6-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M, Downgraded to A3 from Aa2 -- Cl. B-1, Downgraded to B1 from A2 -- Cl. B-2, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade Issuer: CHL Mortgage Pass-Through Trust 2005-HYB8 -- Cl. 4-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. I-M, Downgraded to Aa3 from Aa2 -- Cl. I-B-1, Downgraded to Baa1 from A2 -- Cl. I-B-2, Downgraded to Ba3 from Baa2 -- Cl. I-B-3, Downgraded to Ca from B1 -- Cl. II-M, Downgraded to A3 from Aa2 -- Cl. II-B-1, Downgraded to B1 from A3 -- Cl. II-B-2, Downgraded to Ca from Ba3 Issuer: CHL Mortgage Pass-Through Trust 2006-HYB1 -- Cl. 1-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-B, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 3-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 3-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M, Downgraded to B1 from Aa2 -- Cl. B-1, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade -- Cl. B-2, Downgraded to Ca from B3 Issuer: CHL Mortgage Pass-Through Trust 2006-HYB2 -- Cl. M, Downgraded to Baa2 from Aa2 -- Cl. B-1, Downgraded to B2 from A3; Placed Under Review for further Possible Downgrade -- Cl. B-2, Downgraded to B3 from Ba1; Placed Under Review for further Possible Downgrade Issuer: CHL Mortgage Pass-Through Trust 2006-HYB3 -- Cl. M, Downgraded to Baa2 from Aa2 -- Cl. B-1, Downgraded to B2 from A2; Placed Under Review for further Possible Downgrade -- Cl. B-2, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade Issuer: CHL Mortgage Pass-Through Trust 2006-HYB4 -- Cl. 1-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 3-AB, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 3-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M, Downgraded to B3 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. B-1, Downgraded to Ca from Ba2 -- Cl. B-2, Downgraded to Ca from B3 Issuer: CHL Mortgage Pass-Through Trust 2006-HYB5 -- Cl. 1-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 3-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 3-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 4-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M, Downgraded to B1 from Aa2 -- Cl. B-1, Downgraded to B3 from Baa2; Placed Under Review for further Possible Downgrade -- Cl. B-2, Downgraded to Ca from B1 Issuer: CHL Mortgage Pass-Through Trust 2007-HY3 -- Cl. B-1, Downgraded to Baa1 from A2 -- Cl. B-2, Downgraded to B3 from Baa2 Issuer: CHL Mortgage Pass-Through Trust 2007-HY6 -- Cl. B-1, Downgraded to Baa2 from A2 -- Cl. B-2, Downgraded to B3 from Baa2 Issuer: CHL Mortgage Pass-Through Trust 2007-HYB1 -- Cl. 1-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-3-A2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 3-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 4-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 4-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 5-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 5-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M, Downgraded to B1 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. B-1, Downgraded to Ca from B2 -- Cl. B-2, Downgraded to Ca from Caa2 Issuer: CHL Mortgage Pass-Through Trust 2007-HYB2 -- Cl. 1-A, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 1-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 3-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 3-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 4-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 4-A-IO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. M, Downgraded to B1 from Aa2; Placed Under Review for further Possible Downgrade -- Cl. B-1, Downgraded to Ca from Ba2 -- Cl. B-2, Downgraded to Ca from Caa2 Issuer: CHL Mortgage Pass-Through Trust 2007-J2 -- Cl. 1-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A-1, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A-2, Placed on Review for Possible Downgrade, currently Aaa -- Cl. 2-A-4, Placed on Review for Possible Downgrade, currently Aa1 -- Cl. 2-A-7, Placed on Review for Possible Downgrade, currently Aa1 -- Cl. 2-A-13, Placed on Review for Possible Downgrade, currently Aa1 -- Cl. B-2, Downgraded to B3 from Baa3; Placed Under Review for further Possible Downgrade -- Cl. PO, Placed on Review for Possible Downgrade, currently Aaa -- Cl. X, Placed on Review for Possible Downgrade, currently Aaa CHL MORTGAGE: S&P Puts Ratings on 11 Classes Under Neg CreditWatch ------------------------------------------------------------------ Standard & Poor's Ratings Services placed its ratings on 37 classes of mortgage pass-through certificates from Alternative Loan Trust 2007-24, CHL Mortgage Pass-Through Trust 2007-J2, and IndyMac INDX Mortgage Loan Trust 2007-AR13 on CreditWatch with negative implications. The CreditWatch placements reflect the rising amount of severely delinquent loans in these series compared with the available credit support. S&P will continue to monitor these transactions as more performance data becomes available. The collateral for these transactions consists primarily of prime, Alt-A, adjustable-rate, and fixed-rate first-lien mortgage loans secured by one- to four-family residential properties. Ratings Placed on Creditwatch Negative Alternative Loan Trust Rating ------ Transaction Class To From ----------- ----- -- ---- 2007-24 A-10 AAA/Watch Neg AAA 2007-24 A-11 AAA/Watch Neg AAA 2007-24 A-13 AAA/Watch Neg AAA 2007-24 A-15 AAA/Watch Neg AAA 2007-24 A-17 AAA/Watch Neg AAA 2007-24 A-19 AAA/Watch Neg AAA 2007-24 A-21 AAA/Watch Neg AAA 2007-24 A-22 AAA/Watch Neg AAA 2007-24 A-23 AAA/Watch Neg AAA 2007-24 A-3 AAA/Watch Neg AAA 2007-24 A-5 AAA/Watch Neg AAA 2007-24 A-7 AAA/Watch Neg AAA 2007-24 A-8 AAA/Watch Neg AAA 2007-24 A-9 AAA/Watch Neg AAA 2007-24 PO AAA/Watch Neg AAA 2007-24 X AAA/Watch Neg AAA CHL Mortgage Pass-Through Trust Rating ------ Transaction Class To From ----------- ----- -- ---- 2007-J2 1-A-1 AAA/Watch Neg AAA 2007-J2 2-A-1 AAA/Watch Neg AAA 2007-J2 2-A-13 AAA/Watch Neg AAA 2007-J2 2-A-4 AAA/Watch Neg AAA 2007-J2 2-A-7 AAA/Watch Neg AAA 2007-J2 PO AAA/Watch Neg AAA 2007-J2 M AA/Watch Neg AA 2007-J2 B-1 A/Watch Neg A 2007-J2 B-2 BBB/Watch Neg BBB 2007-J2 B-3 BB/Watch Neg BB 2007-J2 B-4 B/Watch Neg B IndyMac INDX Mortgage Loan Trust Rating ------ Transaction Class To From ----------- ----- -- ---- 2007-AR13 1-A-1 AAA/Watch Neg AAA 2007-AR13 2-A-1 AAA/Watch Neg AAA 2007-AR13 3-A-1 AAA/Watch Neg AAA 2007-AR13 3-A-X AAA/Watch Neg AAA 2007-AR13 4-A-1 AAA/Watch Neg AAA 2007-AR13 4-A-X AAA/Watch Neg AAA 2007-AR13 A-R AAA/Watch Neg AAA 2007-AR13 C-M AAA/Watch Neg AAA 2007-AR13 B-1 AA/Watch Neg AA 2007-AR13 B-5 B-/Watch Neg B- CHRYSLER LLC: Financial Results Are Better than Daimler's --------------------------------------------------------- Since the acquisition of Chrysler LLC by affiliates of Cerberus Capital Management, LP on Aug. 3, 2007, the company has enjoyed positive operating earnings, Chrysler said in a news statement. Chrysler related that Daimler AG reports Chrysler Holding LLC's results on a one quarter lag based on International Financial Reporting Standards, rather than U.S. GAAP which is utilized by the company. Due to that lag, the results disclosed by Daimler on April 29 primarily relate to the fourth quarter of 2007. The results for Chrysler Holding LLC include both the automotive and financial services operations. There are significant differences between IFRS and U.S. GAAP accounting standards. Major differences include the effects of the acquisition of Chrysler Holding LLC by Cerberus, including recent restructuring actions by Chrysler LLC and the accounting for pension costs under the 2007 UAW contract. Accordingly, the 2007 financial results of Chrysler LLC under U.S. GAAP are substantially better than the IFRS-based financial results utilized by Daimler. The Wall Street Journal's Neal E. Boudette said Tuesday that Daimler has cut by nearly two-thirds the book value of its 19.9% stake in Chrysler. Mr. Boudette said the move is a sign the former U.S. unit continues to weigh on Daimler. Cerberus acquired an 80.1% stake in Chrysler in August. At that time, Mr. Boudette related, Daimler assigned its remaining stake a value of EUR1.4 billion or $2.19 billion. At the end of 2007, Daimler lowered that to EUR916 million to reflect the impact of losses Chrysler ran up after the deal. According to Mr. Boudette, Chrysler's Chief Executive Robert Nardelli said recently Chrysler will not be profitable in 2008. In March, Mr. Nardelli acknowledged the U.S. automaker isn't yet generating positive cash flow, Mr. Boudette added. Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. * * * As reported in the Troubled Company Reporter on Dec. 10, 2007, Standard & Poor's Ratings Services revised its recovery rating on Chrysler's $2 billion senior secured second-lien term loan due 2014. The issue-level rating on this debt remains unchanged at 'B', and the recovery rating was revised to '3', indicating an expectation for 50% to 70% recovery in the event of a payment default, from '4'. Both the issue-level and recovery ratings on Chrysler's $7 billion first-lien term loan due 2013 remain unchanged. The issue-level rating on this debt is 'BB-' with a recovery rating of '1', indicating an expectation for 90% to 100% recovery in the event of a payment default. CHRYSLER LLC: To Review Terms of CAW-Ford Tentative Agreement ------------------------------------------------------------- Chrysler LLC will review the terms of a tentative agreement between the Canadian Auto Workers union and Ford Motor Company of Canada Ltd. to gain a better understanding of the economics put forth in the Master Economics Offer. Chrysler views the bargaining process with the CAW to be confidential in nature, between the company and CAW, therefore it refrains from discussing or negotiating details in the media. As reported in the Troubled Company Reporter on April 29, 2008, following early background negotiations, Ford Canada and CAW reached an agreement on a Master Economics Offer that will now become the centerpiece of all-out collective bargaining aimed at reaching a tentative agreement between the two sides later this week. For a full tentative agreement to be reached, agreement also must now be attained on all local agreements, such as skilled trades, health and safety. That tentative agreement must then be ratified by CAW members at all Canadian locations. The current collective agreement expires at midnight September 16. The Master Economics Offer was endorsed unanimously by members of the CAW- Ford Master and local bargaining committees at a special meeting in Toronto on Monday. Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. Cerberus acquired an 80.1% interest in Chrysler in August 2007. Chrysler Holding LLC, a unit of Daimler AG, holds the remaining 19.9% stake. * * * As reported in the Troubled Company Reporter on Dec. 10, 2007, Standard & Poor's Ratings Services revised its recovery rating on Chrysler's $2 billion senior secured second-lien term loan due 2014. The issue-level rating on this debt remains unchanged at 'B', and the recovery rating was revised to '3', indicating an expectation for 50% to 70% recovery in the event of a payment default, from '4'. Both the issue-level and recovery ratings on Chrysler's $7 billion first-lien term loan due 2013 remain unchanged. The issue-level rating on this debt is 'BB-' with a recovery rating of '1', indicating an expectation for 90% to 100% recovery in the event of a payment default. CLYDESDALE CBO: Notes Paydown Cues S&P to Withdraw Ratings ---------------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings on the class A and B notes issued by Clydesdale CBO I Class B Restructured CDO Ltd., a collateralized debt obligation retranchings transaction. The rating withdrawals follow the complete paydown of the class A and B notes on the March 31, 2008, payment date. Ratings Withdrawn Clydesdale CBO I Class B Restructured CDO Ltd. Rating Balance ------ ------- Class To From Current Original ----- -- ---- ------- -------- A NR A+ $0.000 $6,450,000 B NR A- $0.000 $600,000 Other Outstanding Rating Clydesdale CBO I Class B Restructured CDO Ltd. Balance ------- Class Rating Current Original ----- ------ ------- -------- C BB 2.132 2.650 NR - Not rated. COLOWYO COAL: S&P Affirms 'BB' Rating on $192.8 Million Bonds --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' rating on Colowyo Coal Funding Corp.'s $192.8 million bonds due 2011 and 2016. The outlook is negative. "The rating reflects the transaction's structural weakness caused by a broadly defined force majeure clause," said Standard & Poor's credit analyst Matthew Hobby. During the first and second halves of 2007, the project recorded debt service coverage ratios of 0.97x and 0.96x, respectively, requiring about $780,000 of draws on its debt service reserve letter of credit. At Dec. 31, 2007, about $20.8 million of the LOC remained, down from $21.7 million at Dec. 31, 2006. A cash- funded debt service reserve has been exhausted. A DSCR of slightly less than 1x is expected from time to time, requiring moderate draws on the LOC. The Colowyo transaction securitizes the coal production payments generated from two long-term coal sales contracts between the Colowyo coal mine in Colorado and the Craig Station power generating facility about 27 miles away by rail. The Craig Station contracts expire in 2017, after the debt matures. A third contract with the city of Colorado Springs expired at the end of 2004. Colowyo is a special-purpose entity formed to securitize the coal production payments generated from these contracts. Cash flow available for debt service is calculated as gross price per ton of coal delivered (about $29 in 2007) minus transfer payments to Colowyo per ton of coal delivered (about $20 in 2007). Twice a year, the contract pricing is adjusted according to inflation indices. Once every five years, the contract pricing is adjusted to the market price, but the maximum adjustment each time is limited to 15% of the base price. W.R. Grace & Co. (not rated) has committed to pay all unpaid principal and interest in excess of the long-term coal contract revenues and the debt service reserve (now exhausted), up to a maximum of $25 million. The LOC guarantees this commitment. Kennecott Colorado has committed to pay all operating and capital costs of Colowyo Coal Co. L.P. Rio Tinto America (BBB+/Watch Pos/A-2) has an ownership interest in Kennecott Colorado. If the Colowyo transaction had been more tightly structured, the rating would have reflected the lowest of those on the counterparties involved, using Standard & Poor's "weak-link" approach. However, because the project has some significant structural weaknesses, its rating is considerably lower than those on the counterparties. The project's primary structural weakness is a broadly defined force majeure clause contained in the coal sales contracts that allows purchasers to take less coal during force majeure events. This weakness is problematic for the project when the market price is substantially below the contract price and coal purchasers have an incentive to take advantage of this clause. In the late 1990s, when coal prices were depressed, Colowyo's coal purchasers made a series of force majeure claims that drove the DSCR from operations below 1x. The project avoided a payment default by tapping its debt service reserve, which is now depleted. Colowyo, through a legal challenge, was able to invalidate many of the coal purchasers' force majeure claims, and, as part of a 2000 settlement process, the purchasers agreed to a tighter definition of a force majeure event. The coal purchasers have not made any significant force majeure claims since that time, and the DSCR has remained close to 1x. Nonetheless, the project remains vulnerable because a forced outage at the purchasers' power plant is still regarded as a force majeure event. As forced outages are not unusual, Colowyo could experience further cash flow shortfalls that it would have to supplement with the debt service reserve LOC. The negative outlook reflects our concern that the debt service reserve will continue to decline whenever the DSCR falls below 1x. When the DSCR rises above 1x, which could happen if market prices for Colowyo coal continue to rise for an extended period of time, then Colowyo must use any surplus cash flow to repay Rio Tinto, the parent, for price support it has provided in the past to maintain the DSCR at 1x. COLUMBUS PARK: Moody's Puts 'Ba2' Rating on $13 Mil. Class D Notes ------------------------------------------------------------------ Moody's Investors Service assigned these ratings to Notes issued by Columbus Park CDO Ltd.: (1) Aaa to the $288,000,000 Class A-1 Senior Secured Floating Rate Notes due 2020; (2) Aa2 to the $19,000,000 Class A-2 Senior Secured Floating Rate Notes due 2020; (3) A2 to the $19,000,000 Class B Senior Secured Deferrable Floating Rate Notes due 2020; (4) Baa2 to the $12,000,000 Class C Senior Secured Deferrable Floating Rate Notes due 2020; and (5) Ba2 to the $13,000,000 Class D Secured Deferrable Floating Rate Notes due 2020. The Moody's ratings of the Notes address the ultimate cash receipt of all required interest and principal payments, as provided by the Notes' governing documents, and are based on the expected loss posed to Noteholders, relative to the promise of receiving the present value of such payments. The ratings reflect the risks due to the diminishment of cash flow from the underlying portfolio consisting of interests in bank loans and high-yield debt securities due to defaults, the transaction's legal structure and the characteristics of the underlying assets. GSO Debt Funds Management LLC will manage the selection, acquisition and disposition of collateral on behalf of the Issuer. COMMODORE INT'L: Dutch Subsidiary's Bankruptcy Case Cancelled ------------------------------------------------------------- Commodore International Corp. reported that the court in 's-Hertogenbosch, The Netherlands, has decided to rewind the bankruptcy of Commodore International BV, a subsidiary of Commodore International Corporation. As a result of the court decision, the case has been concluded successfully. As reported in the Troubled Company Reporter on April 24, 2008, Commodore International Corp. was informed by the court in The Netherlands that Commodore International B.V. was declared bankrupt. Both CIC and the petitioning party established that procedural mistakes resulting in this judicial declaration were made erroneously beyond CIC's control. The petitioner and CIC had already concluded a written and mutually confirmed an agreement for the cancellation of the bankruptcy proceedings. About Commodore Commodore International Corporation (OTC:CDRL) -- http://www.commodorecorp.com/-- creates, develops and offers innovative digital media services, software and hardware. Innovations such as the CommodoreWorld(TM) multi media platform, the Gravel(TM) premium product line and the In Public MediaTower, open up new opportunities for the customization and sharing of media entertainment, such as music, movies and games. CIC's European operational office headquarters is in Baarn, The Netherlands and its U.S. headquarters is in Century City, California. CONSOLIDATED CONTAINER: S&P Holds 'B-' Rating and Revises Outlook ----------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Consolidated Container Co. LLC to stable from positive. At the same time, S&P affirmed its ratings on the company, including the 'B-' long-term corporate credit rating. "The outlook revision reflects the company's weaker-than-expected earnings performance and higher-than-expected debt leverage, both of which reduce the likelihood of an upgrade over the near term," said Standard & Poor's credit analyst Liley Mehta. S&P expect the company's operating results in 2008 to remain pressured by weaker demand in dairy, beverage, and food categories as consumer spending is squeezed by higher energy costs, higher food prices, and, to a certain extent, home-mortgage-related costs. The ratings on Consolidated Container and its wholly owned subsidiary Consolidated Container Capital Inc. reflect its highly leveraged financial profile, which overshadows its weak business risk profile in the relatively stable beverage and consumer product packaging markets. Atlanta, Georgia-based Consolidated Container has annual revenues of about $850 million and is a domestic producer of rigid plastic containers for dairy products, water, juice, and other beverages; food, household, and agricultural chemicals; and motor oil. The company derives about 59% of its revenues from dairy, water, and juice packaging, which are relatively commodity-type products and have mature demand patterns. CORNERSTONE MINISTRIES: U.S. Trustee Wants Examiner Appointed ------------------------------------------------------------- Donald F. Walton, the U.S. Trustee for Region 21, asks the U.S. Bankruptcy Court for the Northern District of Georgia to appoint an examiner to investigate alleged misconduct and irregularity in the management of the affairs of Cornerstone Ministries Investments Inc. by its current and former officers. The examiner is expected to determine whether certain management decisions made by the Debtor's officers would be declared as fraud. The U.S. Trustee alleges that two of the Debtor's officers and two eNable Business Solutions Inc. -- fka Cornerstone Capital Advisors Inc., as investment and financial advisor -- each acquired an 18% ownership interest in Wellstone LLC, the Debtor's largest borrower in September 2006. The outstanding principal on the loans to Wellstone reached $76 million on Sept. 30, 2007. In addition, three of the loans with outstanding principal of $6,574,991 was added after Wellstone became a related party. The U.S. Trustee says that the Debtor has transfered at least $11 million in loans in the aggregate to wholly owned subsidiaries of Cornerstone Group Holdings Inc. Regulatory Filing According to the Debtor's regulatory filing with the Securities and Exchange Commission, the Debtor suffered a $417,183 net operating loss during the nine month period ending Sept. 30, 2007, compared with a $606,658 net operating income a year earlier. Despite the loss, the Debtor was able to dole out dividends of at least $517,931 to shareholders during the nine month ended Sept. 30, 2007. The Debtor's regulatory filing indicates that the advisory fees payable to eNable Business rose from $1,085,322, for the nine months ended Sept. 30, 2006, to $1,239,174 for the nine months ended Sept. 30, 2007, an increase of $153,842. The Debtor experienced cash shortfalls in September, October and November of 2007, according to the Debtor's President and Chief Executive Officer John T. Ottinger, Jr., in an affidavit filed on Feb. 13, 2008. As of Nov. 12, 2007, "[the Debtor] had approximately $8.5 million in real estate loan draw request which it was not able to fund and $300,000 in bond redemption commitments from October 2007 that it was holding pending receipt of cash," Mr. Ottinger said. A full-text copy of the Debtor's Regulatory Filing is available for free at http://ResearchArchives.com/t/s?2b5b About Cornerstone Ministries Headquartered in Cumming, Georgia, Cornerstone Ministries Investments Inc. -- http://www.cmiatlanta.com/-- is engaged in financing the acquisition and development of facilities for use by churches, faith-based or non-profit organizations and for-profit organizations. The company offers development, construction, bridge and interim loans, usually due within one to three years. The company makes loans to four distinct groups of borrowers, including churches, senior housing facilities, family housing development projects and daycare/faith-based schools. The company filed for Chapter 11 protection on Feb. 10, 2008 (N.D. Ga. Case No. 08-20355). J. Robert Williamson, Esq., at Scroggins and Williamson, represents the Debtor. The Debtor selected BMC Group Inc. as claims, noticing and balloting agent. When the Debtor filed for protection from its creditors, it listed assets was $159,118,892 and debts of $153,847,984. * * * The Debtor reported an opening cash balance of $223,168 and a closing cash balance of $256,014 for the period March 1, 2008 until March 31, 2008, according to its monthly financial report. CORPORACION DURANGO: Poor Business Cues Fitch to Cut IDRs to B- --------------------------------------------------------------- Fitch Ratings has downgraded these credit ratings of Corporacion Durango S.A. de C.V.: -- Foreign Currency Issuer Default Rating to 'B-' from 'B'; -- Local Currency IDR to 'B-' from 'B'; -- Notes due in 2017 to 'B/RR3' from 'B+/RR3'. All of the above ratings have been placed on Rating Watch Negative. The downgrades reflect the deterioration of the company's business and financial profile during the latest 12 months ended March 31, 2008. The Rating Watch Negative indicates that the rating could be downgraded further in the near term if the company's cash flow does not recover. Durango generated $83 million of EBITDA during the LTM ended March 31, 2008, a decline from $128 million of EBITDA during the LTM ended March 31, 2007. The company's EBITDA fell sharply to $13 million for the quarter ended March 31, 2008, from $21 million during the fourth quarter of 2007. Durango is facing financial pressure due to rising input costs for old corrugated containers, a key raw material; OCC prices have escalated during the past 12 months due to the aggressive purchases of OCC in the U.S. by the Chinese. Durango has also been hurt by rising energy costs. The increase in these two costs, plus other factors, have led to a rise in the company's per-ton unit cost to $583 for the quarter ended March 31, 2008 from $506 during the same quarter in 2007. Price increases have not offset these costs increases, as Durango's prices have risen on average by only $29 per ton during this time period. As of March 31, 2008, Durango had $56 million of cash and marketable securities and $538 million of total debt. The company's debt consists of $14 million of short-term debt and $524 million of long-term debt. Of the company's long-term debt, $508 million is due in October 2017. Managing liquidity will become a crucial issue for the company during the next 12 months if prices do not increase sharply or costs decline. Durango's cash position was reduced in April 2008 when the company made interest payments of approximately $27 million. To preserve cash, Durango has extended its trade accounts payable to $122 million as of March 31, 2008 from $101 million as of Dec. 31, 2007. An issue rating of 'RR3' is consistent with an anticipated recovery in the event of default of between 51% and 70%. COUNTRYWIDE FINANCIAL: BofA Promises More Aid to Stop Foreclosures ------------------------------------------------------------------ A Bank of America N.A. executive disclosed that the bank will do more to help borrowers of Countrywide Financial Corp. avert home foreclosures, the Associated Press reports. Specifically, BofA will modify $40 billion in problems loans from 265,000 borrowers in two years' time, the AP relates, citing Countrywide executive Liam E. McGee. BofA revealed this course of action as the Board of the U.S. Federal Reserve held a two-day meeting with both parties on BofA's $4.1 billion takeover of Countrywide. As reported in the Troubled Company Reporter on Apr. 1, 2008, the Federal Reserve aimed to determine whether or not the purchase will "benefit the public". About Countrywide Financial Based in Calabasas, California, Countrywide Financial Corporation (NYSE: CFC) -- http://www.countrywide.com/-- is a diversified financial services provider and a member of the S&P 500, Forbes 2000 and Fortune 500. Through its family of companies, Countrywide originates, purchases, securitizes, sells, and services residential and commercial loans; provides loan closing services such as credit reports, appraisals and flood determinations; offers banking services which include depository and home loan products; conducts fixed income securities underwriting and trading activities; provides property, life and casualty insurance; and manages a captive mortgage reinsurance company. * * * As reported in the Troubled Company Reporter on Jan. 15, 2008, Moody's placed the ratings of Countrywide Financial Corporation and its subsidiaries under review for upgrade. CFC and Countrywide Home Loans senior debt is rated Baa3 and short-term debt is rated Prime-3. Countrywide Bank FSB's bank financial strength rating is C-, deposits are rated Baa1 and short-term debt Prime-2. All long and short-term ratings are placed under review for possible upgrade. CSFB ABS: S&P Puts Default Rating on Class B 2001-HE16 Certs. ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on the class M-1, M-2, and B mortgage pass-through certificates from CSFB ABS Trust Series 2001-HE16. At the same time, S&P affirmed its rating on one additional class from this transaction as well as the ratings on three classes from Credit Suisse First Boston Mortgage Securities Corp.'s series 2004-FRE1. The downgrades reflect realized losses that continue to exceed monthly excess interest cash flow. This has reduced overcollateralization for series 2001-HE16 to zero and caused a principal write-down of $87,984.70 to the class B certificates during the March 2008 remittance period. Series 2001-HE16 has sizable loan amounts that are severely delinquent, suggesting that the unfavorable performance trend will continue. Severe delinquencies for series 2001-HE16 total $3.798 million, or 26.39% of the current pool balance, and cumulative realized losses amount to $12,323,438, or 4.36% of the original pool balance. The average loss severity for the loans that have been liquidated from this transaction over the past 12 months is 72%. As of the March 2008 remittance period, severe delinquencies for series 2004-FRE1 were $4.997 million, or 20.9% of the current pool balance; this is 1.33x the current O/C of $3.745 million. O/C is 97% of its target amount of $3,857,976. The 12-month average loss severity for liquidated loans from series 2004-FRE1 is 43%. Cumulative losses for series 2004-FRE1 total $3,199,254, or 0.41% of the original pool balance. The affirmations on the non-bond-insured classes reflect current and projected credit support levels sufficient to maintain the current ratings. The affirmed 'AAA' rating on class A from series 2001-HE16 reflects bond insurance provided by Financial Security Assurance Inc. ('AAA' financial strength rating). Subordination, O/C, and excess interest cash flow provide credit support for these transactions. Furthermore, the class A certificates have additional support from the bond insurance policy provided by Financial Security Assurance Inc. The collateral for this transaction consists of closed-end, fixed- and adjustable-rate first-lien mortgage loans with original terms to maturity of no more than 30 years. Ratings Lowered CSFB ABS Trust Series 2001-HE16 Mortgage pass-through certificates Rating ------ Class To From ----- -- ---- M-1 CCC BB M-2 CC B B D CCC Rating Affirmed CSFB ABS Trust Series 2001-HE16 Mortgage pass-through certificates Class Rating ----- ------ A* AAA * Bond-insured class. Ratings Affirmed Credit Suisse First Boston Mortgage Securities Corp. Home equity pass-through certificates series 2004-FRE1 Class Rating ----- ------ B-2 A- B-3 BBB+ B-4 BBB DELPHI CORP: Closes Sale of Bearings Business to Hephaestus' Unit ----------------------------------------------------------------- Delphi Corp. completed the sale of substantially all the non-cash assets primarily used in the North American Bearings Business to Kyklos Bearing International, Inc., an indirect, wholly owned subsidiary of Hephaestus Holdings, Inc. As reported in the Troubled Company Reporter on Feb. 22, 2008, Delphi entered into a purchase agreement with Kyklos, which follows Kyklos being declared the successful bidder in an auction conducted on Feb. 21, 2008, as part of a sale process under Section 363 of the United States Bankruptcy Code. In January 2008, Delphi Automotive Systems LLC and Delphi Technologies, Inc., debtor-subsidiaries of Delphi Corp., planned to sell their global bearings business to ND Acquisition Corp., or to another party submitting a higher and better offer for the business. ND Acquisition, a wholly owned subsidiary of private equity investment firm Resilience Capital Partners LLC, agreed to submit a stalking horse bid of $44,200,000, subject to adjustments, for the Bearings Business. Kyklos acquired substantially all of the Bearings Business's inventory, intellectual property, and machinery and equipment, including the manufacturing and engineering facility located in Sandusky, Ohio. Kyklos has also hired substantially all of the Bearings Business's employees and has assumed all of the customer and supplier contracts. "We are delighted with HHI's profitable growth under George Thanopoulos's leadership and look forward to supporting the company as it proceeds with its aggressive growth and industry consolidation strategies," Michael G. Psaros, a Managing Partner of KPS, said. "HHI has now completed three successful acquisitions since its creation by KPS in September 2005, and the company has also achieved significant organic growth and customer diversification. HHI is well capitalized, with access to significant additional capital, and we welcome inquiries from potential sellers of forging businesses, assets or products lines that contain large forging value content." "I am thrilled with the success and rapid growth of HHI since its creation," George Thanopoulos, Chief Executive Officer of HHI, said. "HHI was formed to consolidate the North American forging industry and to expand into products and markets where our forging and metalworking expertise result in immediate synergy and value creation. We are very excited to expand into the wheel bearings business, and we look forward to becoming a significant global competitor in the industry." Based in Troy, Michigan, Delphi Corporation (PINKSHEETS: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for Chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Bu