/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/080527.mbx T R O U B L E D C O M P A N Y R E P O R T E R Tuesday, May 27, 2008, Vol. 12, No. 125 Headlines AFFINITY GROUP: Possible Covenant Breach Cues S&P's Rating Cuts AMERICAN APPAREL: Board Approves Repurchase of $25MM Common Stock AMERICAN LAFRANCE: Can Hire Polsinelli Shalton as Co-Counsel AMERICAN RESERVE: A.M. Best Assigns 'bb' Issuer Credit Rating AMERICAN ROCK: Improved Credit Metrics Cue S&P to Change Outlook AMERICAN SOIL: March 31 Balance Sheet Upside-Down by $431,831 AMERICAN UNITY: March 31 Balance Sheet Upside-Down by $1,802,873 BANC OF AMERICA: Fitch Holds 'C/DR6' Rating on $5.6MM Cl. O Certs. BANC OF AMERICA: Stable Performance Cues Fitch to Affirm Ratings BEACH LANE: Court Approves Backenroth Frankel as Bankr. Counsel BHM TECHNOLOGIES: Wants to Employ Alixpartners as Advisors BHM TECHNOLOGIES: Wants to Employ Kurtzman as Claims Agent BHM TECHNOLOGIES: Wants to Employ Pepper Hamilton as Counsel BIOJECT MEDICAL: Bid Price Non-compliance Cues Stocks Delisting BON-TON STORES: Paying 5 Cents Per Share to Shareholders on Aug. 1 BRIDGEWATER POINTE: Can Hire Magee Foster as Bankruptcy Counsel BUILDING MATERIALS: S&P Affirms 'B+' Corporate Credit Rating CARDIMA INC: Posts $2,316,000 Net Loss in 2008 First Quarter CGCMT 2006-FL2: Fitch Puts 'BB+' Rating Under Negative Watch CHARYS HOLDING: Wants Until October 11 to File Chapter 11 Plan CKRUSH INC: March 31 Balance Sheet Upside-Down by $10,781,823 CV THERAPEUTICS: VP Amends Trading Plan & Approves Sale of Shares DANNY WOODS: Voluntary Chapter 11 Case Summary DANNY NICHOLSON: Voluntary Chapter 11 Case Summary DIANE DICIURCIO: Voluntary Chapter 11 Case Summary DISH NETWORK: Moody's Rates Echostar's $750MM Bond Offering Ba3 ENTERGY NEW: Fitch Revises Outlook to Positive from Stable ESMARK INC: Files Annual Report, Expects Nasdaq Rules Compliance ETHOS ENVIRONMENTAL: Posts $585,839 Net Loss in 2008 First Quarter EUGENE RICCI: Voluntary Chapter 11 Case Summary EXCO RESOURCES: S&P Affirms 'B' Corporate Credit Rating FERRELLGAS PARTNERS: Moody's Affirms Ba3 CRF; Outlook Negative FORGITRON LLC: Gets Green Light to Borrow $165,000 from KeyBank GLOBAL BEVERAGE: March 31 Balance Sheet Upside-Down by $5,179,439 GENERAL MOTORS: Ends Work Stoppage in 30 North American Plants GOEN TECHNOLOGIES: Files for Chapter 11 Protection in New Jersey HARBOUR WALK PRESERVE: Voluntary Chapter 11 Case Summary HAWAIIAN TELCOM: PUC Denies Request to Increase Borrowing Capacity HEALTHSOUTH CORP: Reduces High Cost Debt to $2 Billion by Q4 2007 HEARTLAND INC: Earns $401,756 in 2008 First Quarter Ended March 31 HERITAGE WORLDWIDE: Posts $817,868 Net Loss in Qtr. Ended March 31 HOOP HOLDINGS: Pepper Hamilton Approved as Panel's Del. Counsel HORACE MANN: A.M. Best Affirms 'bb' Rating on Preferred Stock HORIZON LINES: S&P Holds Ratings and Changes Outlook to Negative HSI ASSET: S&P Slashes Certificates Rating to 'D' from 'CC' IMPLANT SCIENCES: Posts $1,528,000 Net Loss in Qtr. Ended March 31 INDALEX HOLDINGS: Completes Amended and Restated Credit Deal INTEGRATED MEDIA: March 31 Balance Sheet Upside-Down by $7,572,803 ISABEL RABBANI: Case Summary & 5 Largest Unsecured Creditors ISCO INTERNATIONAL: Inks Funding Pact, Realigns Board & Management JEANNINE A. GRIFFON: Case Summary & 2 Largest Unsecured Creditors JEFF Y. WER: Case Summary & 20 Largest Unsecured Creditors JEFFERSON COUNTY: Bankers Involved in Swap Deals Under Probe JHCI ACQUISITION: S&P Places 'B' Rating Under Negative CreditWatch JOHN H. BUXELL: Case Summary & 20 Largest Unsecured Creditors JOHN T. DRISCOLL: Case Summary & 13 Largest Unsecured Creditors JOSE RUSSE: Case Summary & 10 Largest Unsecured Creditors JOSEPH T. BUBONIC: Case Summary & 2 Largest Unsecured Creditors JOSEPH F. CONNERS: Voluntary Chapter 11 Case Summary JUSTIN BUNNELL: Case Summary & Largest Unsecured Creditor JUSTIN DAVIS ENTERPRISES: Voluntary Chapter 11 Case Summary KINGSLEY CAPITAL: Case Summary & Nine Largest Unsecured Creditors LIBERTY MUTUAL: A.M. Best Puts 'bb+' Rating on $1.25BB Debentures LIFE SCIENCES: Five Directors Re-elected at Shareholders Meeting L TERSIGNI: Court Appoints Hugh Ray as Examiner to Probe Firm LINENS N THINGS: Section 341(a) Meeting Scheduled for June 10 MERRILL LYNCH: Names Doug Mallach to Liquidate Bad Assets MIRANT CORP: AER-Alliance Lawsuit Denied Over Litigation Expenses MONTE CARLO: Case Summary & 20 Largest Unsecured Creditors NEW YORK HEALTH: March 31 Balance Sheet Upside-Down by $2,759,357 ONONDAGA COUNTY: S&P Chips Bond Rating to BB- on Weak Financial ORBITZ WORLDWIDE: S&P Revises Outlook to Neg. and Holds All Rtngs. PLASTECH ENGINEERED: Roush Insists Entitlement to Molds PNM RESOURCES: Moody's Confirms Ba2 Senior Unsecured Ratings PRC LLC: Wants to Employ Grant Thornton as Accountants PRIMUS TELECOMMUNICATIONS: Reduces Debt by $63.2 Million QUAKER DEVELOPMENT: Voluntary Chapter 11 Case Summary RMIW LLC: Case Summary & Seven Largest Unsecured Creditors RURAL/METRO CORP: Moody's Holds Sr. Discount Notes' Rating at Caa1 RURAL/METRO CORP: Moody's Upgrades Sr. Sub. Notes' Ratings to B2 RITE AID: Fitch Assigns 'CCC/RR6' Rating on $150MM Conv. Notes RUTLAND RATED: Fitch Withdraws 'BB' Rating on $60 Million Notes SCOTTISH RE: S&P Junks Counterparty Credit and FS Ratings SPEEDWAY MOTORSPORTS: Moody's Reviewing Ba1 CFR for Downgrade TRAILER BRIDGE: S&P Affirms 'B-' Long-Term Corp. Credit Rating US FARMS: March 31 Balance Sheet Upside-Down by $2,539,455 VERTIS INC: 2nd Lien Noteholders Approve Forbearance Deal Changes WELWIND ENERGY: Posts C$590,030 Net Loss in 2008 First Quarter WEST CORP: Additional $134MM Loan Prompts S&P to Hold 'BB-' Rating WOLF HOLLOW: Moody's Keeps B2 Rating on Review for Downgrade WIREFREE PARTNERS: Fitch Holds 'BB+' Rating and Removes Neg. Watch WORLDGATE COMMS: March 31 Balance Sheet Upside-Down by $3,486,000 * S&P Chips Ratings on 69 Tranches from 18 Cash Flow & Hybrid CDOs * New York and Delaware Bankruptcy Courts Still Heavily Favored * Large Companies with Insolvent Balance Sheets ********* AFFINITY GROUP: Possible Covenant Breach Cues S&P's Rating Cuts --------------------------------------------------------------- Standard & Poor's Ratings Services lowered all its ratings on Affinity Group Holding Inc. and its operating subsidiary, Affinity Group Inc., including its corporate credit rating, to 'B-' from 'B'. At the same time, S&P placed all ratings on CreditWatch with negative implications. The Ventura, California-based direct marketing company had $406.6 million of debt outstanding as of March 31, 2008. "The downgrade reflects our concern about the company's possible covenant violation from further deterioration in EBITDA," said Standard & Poor's credit analyst Tulip Lim, "and the decline in operating performance from the effects of the weak economy." AMERICAN APPAREL: Board Approves Repurchase of $25MM Common Stock ----------------------------------------------------------------- American Apparel Inc.'s board of directors has authorized the repurchase of up to an aggregate of $25 million of its outstanding common stock. It is expected that repurchases will be made from time to time on the open market at prevailing market prices or in negotiated transactions off the market. The repurchase program is expected to continue over the next twelve months unless extended or shortened by the board. The actual number and timing of share repurchases will be determined at American Apparel's discretion and will be subject to market conditions, applicable legal requirements and other factors. "This share repurchase program reflects the confidence we have in our business and our commitment to preserving shareholder value," Adrian Kowalewski, American Apparel's director of corporate finance and development, said. "By authorizing this repurchase program, it is our intent to address some of the dilution from the warrant redemption completed in March of this year," About American Apparel Inc. Based in Los Angeles, California, American Apparel Inc. (AMEX:APP) -- http://www.americanapparel.net/-- fka Endeavor Acquisition Corp, is a manufacturer, distributor, and retailer of branded fashion basic apparel. As of May 15, 2008, American Apparel employed more than 7,000 people and operated 187 retail stores in 15 countries, including the United States, Canada, Mexico, United Kingdom, Belgium, France, Germany, Italy, the Netherlands, Sweden, Switzerland, Israel, Australia, Japan and South Korea. American Apparel also operates a wholesale business that supplies high quality T-shirts and other casual wear to distributors and screen printers. In addition to its retail stores and wholesale operations, American Apparel operates an online retail e-commerce website at http://store.americanapparel.net. Waiver As reported in the Troubled Company Reporter on May 26, 2008, American Apparel Inc. received a waiver from the LaSalle Bank for its covenant violation under a revolving credit facility. American Apparel failed to meet certain covenants under its credit facility with the bank and private investment firm as at March 31, 2008. AMERICAN LAFRANCE: Can Hire Polsinelli Shalton as Co-Counsel ------------------------------------------------------------ American LaFrance, LLC, sought and obtained the authority of the U.S. Bankruptcy Court for the District of Delaware to hire Polsinelli Shalton Flanigan Suelthaus P.C., as its co- counsel, nunc pro tunc to May 12, 2008. As Christopher A. Ward ceased to be employed by Klehr Harrison Branzburg & Ellers LLP, and has opened the Wilmington office for Polsinelli Shalton, the Debtor determined to employ the firm pursuant to the intimate involvement of Mr. Ward in its Chapter 11 case. As the Debtor's co-counsel, Polsinelli Shalton will: * provide legal advice with respect to the Debtor's powers and duties as a debtor-in-possession in its continued operation of its business and management of its property; * take necessary action to protect and preserve the Debtor's estate, including assisting in the prosecution of actions in behalf of the Debtor, the defense of any action commenced against the Debtor, negotiations concerning all litigation in which the Debtor is involved, and objecting to claims filed against the Debtor's estate; * prepare on the Debtor's behalf all necessary applications, motions, responses, objections, orders, reports and other legal papers; * negotiate and draft any agreements for the sale or purchase of assets of the Debtor, if appropriate; * negotiate and draft a plan of reorganization, consensual or otherwise, and all documents related, including the disclosure statements and ballots for voting; * take steps necessary to confirm and implement the Plan, including, if needed, modifications and negotiating financing for the Plan; * render other legal services for the Debtor as may be necessary and appropriate in the case; and * advise the Debtor with respect to the local rules and practice and procedure before the Court. Polsinelli Shalton's principal attorneys and paralegals designated to represent the Debtor and their current hourly rates are: Professional Hourly Rate ------------ ----------- Christopher A. Ward $330 Caretta Whiteen 125 Polsinelli Shalton's hourly rates are subject to periodic increase in the normal course of the firm's business. It is Polsinelli Shalton's policy to charge its clients in all areas of practice for all other out-of-pocket expenses incurred in connection with the clients' case, including, telephone and telecopier toll charges, photocopying charges, travel expenses, expenses for working meals, computerized research, as well as non-ordinary expenses like secretarial overtime. Christopher A. Ward, Esq., a lawyer at Polsinelli Shalton, discloses that to the best of his knowledge and information, the firm does not have any connection with the Debtor or any other significant party-in-interest and does not hold or represent any interest adverse to the Debtor's estate. Polsinelli Shalton is a "disinterested person" as the term is defined pursuant to Section 101(14) of the Bankruptcy Code, Mr. Ward assures the Court. 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. Pepper Hamilton, LLP is the proposed counsel of the Official Committee of Unsecured Creditors. 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. (American LaFrance Bankruptcy News, Issue No. 16; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). AMERICAN RESERVE: A.M. Best Assigns 'bb' Issuer Credit Rating ------------------------------------------------------------- A.M. Best Co. has assigned issuer credit ratings of "bb" and affirmed the financial strength ratings of B(Fair) of American Reserve Life Insurance Company and its two major life insurance subsidiaries, Liberty Bankers Life Insurance Company and Mid- Continent Preferred Life Insurance Company. All companies are domiciled in Edmond, Oklahoma. The outlook assigned to the ICRs is stable, and the outlook for the FSRs is stable. The ratings reflect the group's modest risk-adjusted capitalization, high proportion of interest-sensitive business and elevated investment allocation to mortgage loans, real estate and other alternative investments. Liberty Bankers, the flagship operating entity, is the group's primary marketing arm with over $160 million in direct premiums written for 2007. While Liberty Bankers has experienced strong growth in fixed annuity sales over the past few years, the ordinary life line of business has grown only modestly. Going forward, the company is focused on expanding life insurance sales through a newly established life division. A number of new products were recently developed and filed, and production has begun through a newly developed master general agent network. Although Liberty Bankers has experienced favorable operating results over the past two years, its risk-adjusted capitalization is modest relative to its insurance and investment risks. This is despite substantial capital contributions from its parent company and recently reduced exposure to mortgage loans and other alternative investments. A.M. Best notes that these investments remain at an elevated level compared to industry norms. A.M. Best believes the group will remain challenged to maintain a balance between a prudent risk-adjusted capital position and its desire to build additional scale. ARLIC's other key insurance subsidiary, Mid-Continent, has experienced an increase in net premiums through its current reinsurance relationship in which it assumes pre-need and whole life insurance policies. A.M. Best will continue to monitor the company's progress in expanding its currently limited business profile. AMERICAN ROCK: Improved Credit Metrics Cue S&P to Change Outlook ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on American Rock Salt Co. LLC to positive from stable. At the same time, S&P affirmed the ratings on the company, including the 'B-' corporate credit rating. "The outlook revision reflects the company's improved credit metrics and enhanced liquidity because of strong results in the past few quarters resulting from severe winter weather in the northeastern U.S.," said Standard & Poor's credit analyst Anna Alemani. "In addition, we expect that ARSC's stronger liquidity position will provide a cushion against potentially milder-than- usual weather next winter." The rating on Mount Morris, New York-based ARSC reflects the company's limited diversity because of its reliance on a single mine to produce its primary product (highway deicing salt), which heightens the risk of disruption to operations. The rating also reflects the company's aggressive financial profile, seasonal demand (which results in volatile operating performance), and limited financial flexibility. These factors are offset partially by the company's leading position in its geographic markets, its high margins, and the recession-resistant characteristics of the market for highway deicing salt. AMERICAN SOIL: March 31 Balance Sheet Upside-Down by $431,831 ------------------------------------------------------------- American Soil Technologies Inc.'s consolidated balance sheet at March 31, 2008, showed $3,611,706 in total assets and $4,043,537 in total liabilities, resulting in a $431,831 total stockholders' deficit. At March 31, 2008, the company's consolidated balance sheet also showed strained liquidity with $347,104 in total current assets available to pay $3,130,874 in total current liabilities. The company reported a net loss of $473,687, on revenue of $214,764, for the second quarter ended March 31, 2008, compared with a net loss of $877,518, on revenue of $254,939, in the same period last year. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2c7b Going Concern Disclaimer As reported in the Troubled Company Reporter on Feb. 21, 2008, McKennon Wilson & Morgan LLP, in Irvine, California, expressed substantial doubt about American Soil Technologies Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Sept. 30, 2007. The auditing firm stated that the company has incurred losses in recent history, and has significant working capital and accumulated deficits. About American Soil Based in Pacoima, California, American Soil Technologies Inc. (OTC BB: SOYL) -- http://www.americansoiltech.com/-- develops, manufactures, and markets polymer soil amendments to the agricultural, turf, and horticulture industries in North America. It manufactures three primary products: Agriblend, a soil amendment developed for agriculture; Soil Medic, a slow release liquid fertilizer; and Nutrimoist, developed for homes, parks, golf courses, and other turf related applications. The company was founded in 1993. AMERICAN UNITY: March 31 Balance Sheet Upside-Down by $1,802,873 ---------------------------------------------------------------- American Unity Investments Inc.'s consolidated balance sheet at March 31, 2008, showed $2,152,100 in total assets and $4,072,041 in total liabilities, resulting in a $1,802,873 total stockholders' deficit. At March 31, 2008, the company's consolidated balance sheet also showed strained liquidity with $1,916,098 in total current assets available to pay $3,727,374 in total current liabilities. The company reported a net loss of $157,068, on zero revenues, for the first quarter ended March 31, 2008, compared with a net loss of $230,407, on zero revenues, in the same period last year. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2c82 Going Concern Disclaimer David m. K. Yeung & Co., in Hong Kong, expressed substantial doubt about American Unity Investments Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm pointed to the company's recurring net losses and accumulated deficit of $2,156,814 as of Dec. 31, 2007. About American Unity Based in New York City, American Unity Investments Inc. (OTC BB: AUNI) -- http://www.ameriunity.com/-- through its subsidiary, Beijing TKE Resource Development Co. Limited, engages in the business of forestry in the People's Republic of China. BANC OF AMERICA: Fitch Holds 'C/DR6' Rating on $5.6MM Cl. O Certs. ------------------------------------------------------------------ Fitch Ratings has affirmed Banc of America Commercial Mortgage Inc.'s commercial mortgage pass-through certificates, series 2001-1, as: -- $456.3 million class A-2 at 'AAA'; -- $43.2 million class A-2F at 'AAA'; -- Interest-only class X at 'AAA'; -- $35.6 million class B at 'AAA'; -- $21.3 million class C at 'AAA'; -- $19.0 million class D at 'AAA'; -- $9.5 million class E at 'AAA'; -- $9.5 million class F at 'AAA'; -- $19.0 million class G at 'AA'; -- $14.2 million class H at 'A-'; -- $13.3 million class J at 'BBB'; -- $23.5 million class K at 'BB'; -- $2.1 million class L at 'BB-'; -- $5.5 million class M at 'B+'; -- $6.8 million class N at 'B-/DR1'; -- $5.6 million class O at 'C/DR6'. Class A-1 has been paid in full. The affirmations are due to minimal expected losses from specially serviced loans. As of the May 2008 distribution date, the pool's aggregate balance has decreased 27.8% to $684.4 million from $948.1 million at issuance. Thirty-nine loans (36.7%) have defeased. Fitch has designated 24 loans (18.4%) as Fitch Loans of Concern. These include the five specially serviced assets (3%) and four of the top ten loans in the transaction (9%), as well as loans with low debt service coverage ratios or occupancy. The largest Fitch Loan of Concern, which is the second largest loan (2.4%) in the pool, is an office property in Phoenix, AZ, which has been performing poorly since 2003 due to occupancy issues and a competitive market. The loan remains current, and occupancy has declined to 75.9% at year-end (YE) 2007 from 82% at YE 2006. The second largest Loan of Concern (2.2%) is an office property Bellevue, Washington which has experienced a decline in cash flows due to fluctuations in occupancy. Occupancy as of September 2007 was 93% with a DSCR of 0.98 times. The two largest specially serviced assets (2.2%) are real-estate owned multi-family properties in Columbia, Missouri. The properties were transferred to special servicing due to monetary default. The third largest specially serviced asset (0.4%) is an REO office property in Greenville, South Carolina. The special servicer is marketing the property for sale. Fitch expected losses on the specially serviced assets are anticipated to impact class O. BANC OF AMERICA: Stable Performance Cues Fitch to Affirm Ratings ---------------------------------------------------------------- Fitch Ratings has affirmed Banc of America Commercial Mortgage Securities, Inc.'s mortgage pass-through certificates, series 2007-2, as: -- $51.6 million class A-1 at 'AAA'; -- $753 million class A-2 at 'AAA'; -- $162.6 million class A-3 at 'AAA'; -- $61 million class A-AB at 'AAA'; -- $602 million class A-4 at 'AAA'; -- $528.1 million class A-1A at 'AAA'; -- Interest-only class XW at 'AAA'; -- $317.3 million class A-M at 'AAA'; -- $153.8 million class A-J at 'AAA'; -- $100 million class A-JFL at 'AAA'; -- $55 million class A-2FL at 'AAA'; -- $15.9 million class B at 'AA+'; -- $47.6 million class C at 'AA'; -- $31.7 million class D at 'AA-'; -- $15.9 million class E at 'A+'; -- $27.8 million class F at 'A'; -- $27.8 million class G at 'A-'; -- $43.6 million class H at 'BBB+'; -- $35.7 million class J at 'BBB'; -- $35.7 million class K at 'BBB-'; -- $15.9 million class L at 'BB+'; -- $7.9 million class M at 'BB'; -- $15.9 million class N at 'BB-'; -- $4 million class O at 'B+'; -- $4 million class P at 'B'; -- $11.9 million class Q at 'B-'. Fitch does not rate the $39.7 million class S. The affirmations are the result of stable performance since issuance in June 2007. As of the May 2008 distribution date, the pool's certificate balance has decreased 0.2% to $3.165 billion from $3.172 billion at issuance. One hundred and two loans (81.2%) are interest-only or partial interest-only. Loan maturities range from 2011 to 2021 with 27.3% of the pool scheduled to mature in 2012 and 59.4% scheduled to mature in 2017. Five loans (1.5%) are considered Fitch Loans of Concern. This includes three specially serviced loans (0.5%) secured by retail properties in Indianapolis, Indiana which are 90+ days delinquent. Losses are not expected at this time. In addition, two multifamily loans (1.0%) located in Reno and Las Vegas, Nevada are chronically delinquent, and as of May 2008, are 30+ days delinquent. The Harlem River Yard industrial/ warehouse complex (0.9%) maintains its investment-grade shadow rating. Servicer reported weighted average occupancy as of December 2007 was 100% with a debt service coverage ratio of 2.07 times. The largest loan (12.5%) is a pari-passu note collateralized by a portfolio of 16 office properties, a mortgage pledge, and three cash flow pledges on properties in the Washington DC area and Washington state. The weighted average occupancy as of September 2007 was 97%, stable since issuance. Although 65% of the leases expire during the first five years of the loan, the properties have experienced historically high retention rates and continue to out perform the market. The second largest loan (5.9%) is secured by a 924,501 square foot office building in New York, NY. Occupancy as of year-end 2008 was 97% compared to 98% at issuance. BEACH LANE: Court Approves Backenroth Frankel as Bankr. Counsel --------------------------------------------------------------- Beach Lane Estate Corp. obtained authority from the United States Bankruptcy Court for Southern District of New York to employ Backenroth Frankel & Krinsky LLP as its counsel. Backenroth Frankel is expected to: a) provide the Debtor with legal counsel with respect to its powers and duties as a debtor-in possession in the continued operation of its business and management of its property during the Chapter 11 case; b) prepare on behalf of the Debtor all necessary applications, answers, orders, reports, and other legal documents which may be required in connection with the Chapter 11 case; c) provide the Debtor with legal services with respect to formulating and negotiating a plan of reorganization with creditors; and d) perform other legal services for the Debtor as may be required during the course of the Chapter 11 case, including but not limited to, the institution of actions against third parties, objections to claims, and the defense of actions which may be brought by third parties against the Debtor. Mark A. Frankel, a member of the firm of Backenroth Frankel & Krinsky LLP, told the Court that Backenroth Frankel received a $4,000 retainer from third party funds contributed by Michael Weisbrod, the Debtor's vice president. Mr. Frankel assured the Court that Backenroth Frankel is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. Mr. Frankel can be reached at: Backenroth Frankel & Krinsky LLP No. 489 Fifth Avenue New York, NY 10017 Tel (212) 593-1100 Fax (212) 644-0544 Headquartered in New York City, Beach Lane Estate Corp. owns and manages real estate. The Debtor filed for Chapter 11 protection on April 10, 2008, (Bank. S.D. N.Y. Case No.: 08-11296) The Debtor related that no receiver, trustee or examiner has been appointed nor have any official committees been appointed in this case. When the Debtor filed for protection from its creditors, it has estimated assets and debts of $1 million to $100 million. BHM TECHNOLOGIES: Wants to Employ Alixpartners as Advisors ---------------------------------------------------------- BHM Technologies Holdings, Inc., and its debtor-subsidiaries seek the authority of the United States Bankruptcy Court for the Western District of Michigan to employ AlixPartners LLP as their financial advisors, pursuant to an engagement letter, dated March 13, 2008. Ray VanderKooi, chief financial officer of BHM Technologies Holdings, Inc., states that AlixPartners provided prepetition services to the Debtors. As a result of the prepetition work, AlixPartners acquired significant knowledge of the Debtors and their businesses and is now intimately familiar with the Debtors' financial affairs, debt structure, operations, and related matters. As financial advisors, AlixPartners will: (a) assist senior management of the Debtors in the analysis of the Debtors' 2008 budget and three-year business plan forecast, and assist in modifications to the forecast and preparation of other plans and forecasts that the Debtors develop; (b) assist the Debtors in negotiating a restructuring plan with their lenders and interest holders, assist the Debtors in developing tactical plans and their implementation related to customer negotiations and vendor management; (c) coordinate and lead the process of obtaining a DIP loan in connection with the Debtors' restructuring, assist in developing the processes and reporting tools required to support an asset-based loan and related borrowing base reporting; (d) assist the Debtors as required with the administrative elements of their Chapter 11 cases, including assistance in tasks like compiling reporting required by the Court, gathering and reconciling data required to provide notices to parties-in-interest, reconciling, managing and negotiating claims, calculating and evaluating potential preferences, evaluating executory contracts for treatment and providing support to the Debtors' legal counsel in connection with motions and hearings; and (e) assist with other matters as may be requested that fall within the firm's expertise and that are mutually agreed to by AlixPartners and the Debtors. The Debtors will pay AlixPartners according to its customary hourly rates: Professionals Hourly Rates ------------- ------------ Managing Directors $650 to $850 Directors $485 to $650 Vice Presidents $335 to $480 Associates $250 to $340 Analysts $225 to $250 Paraprofessionals $170 to $200 The Debtors will also reimburse AlixPartners for reasonable and necessary out-of-pocket expenses incurred in connection with the Debtors' Chapter 11 cases, including transportation costs, lodging, food, copying, messenger services, and telephone and facsimile charges. The Engagement Letter provides that AlixPartners reserves its right to seek a success fee. Edward J. Stenger, a managing director at AlixPartners, assures the Court his firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code. He adds his firm does not hold or represent an interest adverse to the Debtors and their estates, and has no connection to the Debtors, their creditors, or their related parties. Mr. Stenger discloses that during the 90 days before the Petition Date, AlixPartners received $2,885,450 for professional services performed and expenses incurred. He says those payments have been applied to outstanding invoices on account of fees and expenses incurred in providing services to the Debtors in contemplation of, and in connection with, prepetition restructuring activities. He says AlixPartners also received an advance retainer of $50,000 in June 2007 for professional services. Headquartered in Ionia, Michigan, BHM Technologies Holdings Inc. -- http://www.browncorp.com/-- manufactures and sells automobile parts including air bags and electrical systems. It has manufacturing facilites in Mexico and operates under Brown Corp. BHM Technologies Holdings, Inc. and 14 affiliates filed separate voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Western District of Michigan on May 19, 2008 (Lead Case No. 08- 04413). Hannah Mufson McCollum, Esq., Kay Standridge Kress, Esq., Robert S. Hertzberg, Esq., and Leon R. Barson, Esq. of Pepper Hamilton, LLP represent the Debtors in their restructuring efforts. When the Company filed for bankruptcy, it listed estimated assets and debts to be both between $100 million and $500 million. (BHM Technologies Bankruptcy News, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) BHM TECHNOLOGIES: Wants to Employ Kurtzman as Claims Agent ---------------------------------------------------------- BHM Technologies Holdings, Inc., and its debtor-subsidiaries seek the authority of the United States Bankruptcy Court for the Western District of Michigan to employ Kurtzman Carson Consultants LLC as their notice, claims and solicitation agent. As notice, claims processing, and ballot administration agent, Kurtzman Carson will: (a) prepare and serve required notices in the Debtors' Chapter 11 cases, including (i) a notice of the commencement of their Chapter 11 cases and the initial meeting of creditors under Section 341(a) of the Bankruptcy Code; (ii) notices of objections to claims if necessary; (iii) notices of any hearings on a disclosure statement and confirmation of a plan or plans of reorganization; and (iv) other miscellaneous notices as the Debtors or the Court may deem necessary or appropriate for an orderly administration of their Chapter 11 cases; (b) file with the office of the Bankruptcy Clerk a certificate or affidavit of service that includes (i) an alphabetical list of persons on whom the notice was served, along with their addresses, and (ii) the date and manner of service; (c) maintain copies of all proofs of claim and proofs of interest filed in the Debtors' Chapter 11 cases; (d) maintain official claims registers in the Debtors' Chapter 11 cases by docketing all proofs of claim and proofs of interest in a claims database that includes (i) the name and address of the claimant or interest holder and any agent, if the proof of claim or proof of interest was filed by an agent; (ii) the date the proof of claim or proof of interest was received; (iii) the claim number assigned to the proof of claim or proof of interest; and (iv) the asserted amount and classification of the claim; (e) implement necessary security measures to ensure the completeness and integrity of the claims registers; (f) transmit to the Clerk's Office a copy of the claims registers on a weekly basis unless requested more or less frequently by the Clerk's Office; (g) maintain an up-to-date mailing list for all entities that filed proofs of claim or proofs of interest and making the list available upon request to the Clerk's Office or any party-in-interest; (h) provide access to the public for examination of copies of the proofs of claim or proofs of interest filed in the Debtors' Chapter 11 cases without charge during regular business hours; (i) record all transfers of claims pursuant to Rule 3001(e) of the Federal Rules of Bankruptcy Procedure and, if directed to do so by the Court, provide notice of those transfers; (j) comply with applicable federal, state, municipal, and local statutes, ordinances, rules, regulations, orders, and other requirements; (k) provide temporary employees to process claims; (l) comply promptly with conditions and requirements as the Clerk's office or the Court may at any time prescribe; (m) provide other claims processing, noticing, balloting, and related administrative services as may be requested from time to time by the Debtors; and (n) provide balloting services, including: -- printing of ballots, including the printing of creditor and shareholder specific ballots; -- prepare voting reports by plan class, creditor, or shareholder and amount for review and approval by the client and its counsel; -- coordinate the mailing of ballots, disclosure statement, and plan of reorganization to all voting and non-voting parties and provide affidavit of service; -- establish a toll-free "800" number to receive questions regarding voting on the plan; and -- receive ballots, inspecting ballots for conformity to voting procedures, date stamping and numbering ballots consecutively, and tabulating and certifying voting results. Pursuant to an agreement, dated April 3, 2008, between the Debtors and Kurtzman, the firm will receive a $25,000 retainer for its services. The Debtors also agreed to indemnify and hold Kurtzman harmless, except in circumstances of the firm's gross negligence or willful misconduct. Sheryl Betance, director of restructuring services at Kurtzman, assures the Court that her firm is a "disinterested person" within the meaning of Section 101(14) of the Bankruptcy Code, and does not hold or represent an interest adverse to the Debtors and their estates. Headquartered in Ionia, Michigan, BHM Technologies Holdings Inc. -- http://www.browncorp.com/-- manufactures and sells automobile parts including air bags and electrical systems. It has manufacturing facilites in Mexico and operates under Brown Corp. BHM Technologies Holdings, Inc. and 14 affiliates filed separate voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Western District of Michigan on May 19, 2008 (Lead Case No. 08- 04413). Hannah Mufson McCollum, Esq., Kay Standridge Kress, Esq., Robert S. Hertzberg, Esq., and Leon R. Barson, Esq. of Pepper Hamilton, LLP represent the Debtors in their restructuring efforts. When the Company filed for bankruptcy, it listed estimated assets and debts to be both between $100 million and $500 million. (BHM Technologies Bankruptcy News, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) BHM TECHNOLOGIES: Wants to Employ Pepper Hamilton as Counsel ------------------------------------------------------------ BHM Technologies Holdings, Inc., and its debtor-subsidiaries seek the authority of the United States Bankruptcy Court for the Western District of Michigan to employ Pepper Hamilton, LLP as their general bankruptcy counsel. As general bankruptcy counsel, Pepper Hamilton will: (a) advise the Debtors with respect to their rights, powers and duties as debtors and debtors-in-possession in the continued management and operation of their businesses and properties; (b) attend meetings and negotiations with representatives of creditors other parties-in-interest; (c) advise and consult the Debtors regarding the conduct of their Chapter 11 cases, including all of the legal and administrative requirements of operating in Chapter 11; (d) advise the Debtors on matters relating to the evaluation of the assumption, rejection or assignment of unexpired leases and executory contracts; (e) take all necessary action to protect and preserve the Debtors' estates, including the prosecution of actions on their behalf, the defense of any actions commenced against those estates, negotiations concerning all litigation in which the Debtors may be involved and objections to claims filed against the estates; (f) assist in prosecuting a plan of reorganization and disclosure statement and all related agreements and documents and take any necessary action on behalf of the Debtors to obtain confirmation of a plan; (g) appear before the Court, any appellate courts, and the Office of the United States Trustee, and protect the interests of the Debtors' estates before the courts and the Office of the United States Trustee; and (h) perform all other necessary legal services and provide all other necessary legal advice to the Debtors in connection with their Chapter 11 cases to bring the cases to a conclusion. The Debtors will pay Pepper Hamilton according to its customary hourly rates: Professional Hourly Rates ------------ ------------ Partners $450 to $750 Associates $240 to $345 Legal Assistants $175 to $205 The Debtors will also reimburse Pepper Hamilton for all expenses it incurs in connection with its representation of the Debtors. Robert S. Hertzberg, Esq., a partner at Pepper Hamilton, assures the Court that his firm does not hold or represent any interest materially adverse to the interest of the Debtors and their estates. He adds that the firm is a "disinterested person" within the meaning of Section 101(14), as modified by Section 1107(b) of the Bankruptcy Code. Mr. Hertzberg discloses that on the Petition Date, Pepper Hamilton was holding a retainer for services to be rendered as counsel to the Debtors in the amount of $192,500. During the one year before the Petition Date, Pepper Hamilton received payments from the Debtors totaling $556,670 on account of legal services. During the 90-day period before the Petition Date, Pepper Hamilton billed the Debtors for prepetition services and expenses totaling $556,670, which the Debtors paid in full. Headquartered in Ionia, Michigan, BHM Technologies Holdings Inc. -- http://www.browncorp.com/-- manufactures and sells automobile parts including air bags and electrical systems. It has manufacturing facilites in Mexico and operates under Brown Corp. BHM Technologies Holdings, Inc. and 14 affiliates filed separate voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Western District of Michigan on May 19, 2008 (Lead Case No. 08- 04413). Hannah Mufson McCollum, Esq., Kay Standridge Kress, Esq., Robert S. Hertzberg, Esq., and Leon R. Barson, Esq. of Pepper Hamilton, LLP represent the Debtors in their restructuring efforts. When the Company filed for bankruptcy, it listed estimated assets and debts to be both between $100 million and $500 million. (BHM Technologies Bankruptcy News, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) BIOJECT MEDICAL: Bid Price Non-compliance Cues Stocks Delisting --------------------------------------------------------------- Bioject Medical Technologies Inc. received a letter from the Listing Qualifications Staff of The NASDAQ Stock Market LLC notifying that Bioject's securities are subject to delisting from The NASDAQ Capital Market unless the company requests a hearing before the NASDAQ Listing Qualifications Panel. The notice was based upon the company's non-compliance with the $1 minimum bid price requirement set forth in NASDAQ Marketplace Rule 4310(c)(4). The company plans to request a hearing before the NASDAQ Panel, which will stay any action with respect to the Staff Determination until the Panel renders a decision subsequent to the hearing. The company anticipates that the hearing will be scheduled to occur within the next 45-60 days. There can be no assurance that the Panel will grant the company's request for continued listing. "Given the new strategy and the envisioned activities anticipated to transpire in the near future, Bioject plans to fully pursue the NASDAQ hearing process and all viable options, which are aligned with the long term interests of the company, to remain listed on the NASDAQ," Ralph Makar, president and CEO of Bioject, said. "The team at Bioject is excited about the new strategic plan and has already taken the initial steps to take the organization to the next level," Mr. Makar stated. On Nov. 20, 2007, NASDAQ indicated that if the company fail to regain compliance with the $1 minimum bid price requirement by May 19, 2008, NASDAQ would provide the company with written notification of such non-compliance and the opportunity to request a hearing before the NASDAQ Panel. About Bioject Medical Technologies Inc. Headquartered in Portland, Oregon, Bioject Medical Technologies Inc. (NASDAQ:BJCT) -- http://www.bioject.com/-- together with its subsidiaries, develops, manufactures, and distributes needle-free drug delivery systems to pharmaceutical and biotechnology industries in the United States. Its products include Biojector 2000 that enables healthcare professionals to deliver measured variable doses of medication through the skin, either intramuscularly or subcutaneously, without a needle; drug reconstitution system, which allows for the transfer of diluents to reconstitute powdered medications into liquid form and withdrawal of liquid medication into a syringe without the use of a needle; and Vitajet, a home-use self-injection solution for insulin. In addition, the company is developing Iject, a single prefilled disposable injector for self injection and pre-filled Biojector syringes. It has licensing and development agreements with Serono Laboratories Inc., Merial, and the Centers for Disease Control and Prevention. Going Concern Doubt As reported in the Troubled Company Reporter on April 18, 2008, Moss Adams LLP raised substantial doubt about the ability of Bioject Medical Technologies Inc., to continue as a going concern after it audited the company's financial statements for the year ended Dec. 31, 2007. The auditor reported that the company has suffered recurring losses, has had significant recurring negative cash flows from operations, and has an accumulated deficit. BON-TON STORES: Paying 5 Cents Per Share to Shareholders on Aug. 1 ------------------------------------------------------------------ The Board of Directors of The Bon-Ton Stores, Inc., declared a cash dividend of five cents per share on the Class A Common Stock and Common Stock of the company payable Aug. 1, 2008 to shareholders of record as of July 15, 2008. York, Pennsylvania-based The Bon Ton Stores Inc. (Nasdaq: BONT) -- http://www.bonton.com/-- operates 280 department stores, which includes eleven furniture galleries, in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner's, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger's and Younkers nameplates and, under the Parisian nameplate, three stores in the Detroit, Michigan area. The stores offer a broad assortment of brand-name fashion apparel and accessories for women, men and children, as well as cosmetics and home furnishings. * * * As reported in the Troubled Company Reporter on March 17, 2008, Fitch Ratings affirmed The Bon-Ton Stores, Inc.'s 'B' issuer default rating. The rating outlook has been revised to negative from stable. As reported in the Troubled Company Reporter on Feb. 13, 2008, Moody's Investors Service downgraded the corporate family rating of Bon-Ton Stores Inc. to B2 from B1, downgraded the probability of default rating to B2 from B1, and downgraded the rating on the $510 million senior unsecured notes to Caa1 (LGD 5, 78%) from B3 (LGD 5, 83%). The company's speculative grade liquidity rating of SGL-3 was affirmed. The outlook on all ratings is stable. BRIDGEWATER POINTE: Can Hire Magee Foster as Bankruptcy Counsel --------------------------------------------------------------- Bridgewater Pointe Partners LLC and its debtor-affiliate obtained authority from the U.S. Bankruptcy Court for the Western District of Virginia to employ Magee Foster Goldstein & Sayers PC as their counsel nunc pro tunc to the bankruptcy filing date. In the Debtors' amended motion for Magee Foster's employment, the Debtors stated that the firm is expected to: a) take necessary action to protect and preserve the Debtors' estate, including: * the prosecution of actions on the Debtors' behalf; * the defense of any action commenced against the Debtors; * the negotiation of disputes in which the Debtors are involved; and * the preparation of objections to claims filed against the Debtors' estate; b) prepare on behalf of the Debtors, as debtor-in-possession, all necessary motions, applications, answers, orders, reports, and other papers in connection with the administration of the Debtors' estate; c) assist the Debtors in any sale of assets, refinance of their existing secured debt, or restructure their current obligation; and d) perform all other necessary legal services in connection with these Chapter 11 cases. The Debtors will pay Magee Foster according to the firm's standard hourly rates under a general retainer. The hourly rates for Magee Foster's professionals are: Designation Rate ----------- ---- Partners $135 - $300 Paralegal and Paraprofessionals $75 - $85 Prior to bankruptcy filing, the Debtors paid Magee Foster a $56,250 initial retainer. The Debtors will also pay the firm a postpetition retainer of $18,750. To the best of the Debtors' knowledge, Magee Foster is "disinterested" as that term is defined in Section 101(14) of the Bankruptcy Code. The Magee Foster's professionals can be reached at: Magee Foster Goldstein & Sayers PC 310 First Street, S.W., Suite 1200 P.O. Box 404 Roanoke, VA 24003-0404 Tel 540-343-9800 Fax 540-343-9898 Email info@mfgs.com Headquartered in Moneta, Virginia, Bridgewater Pointe Partners LLC -- http://bridgewaterpointe.com/-- is a real estate developer. The Debtor and its debtor-affiliates filed for separate Chapter 11 protection on April 16, 2008, (Bankr. W.D. Va. Case No.: 08-70682 to 08-70684). No trustee or examiner has been appointed in these Chapter 11 cases. Bridgewater Pointe's financial condition at bankruptcy filing showed estimated assets of $10 million to $50 million and estimated debts of $1 million to $10 million. BUILDING MATERIALS: S&P Affirms 'B+' Corporate Credit Rating ------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'B+' corporate credit rating on Wayne, New Jersey-based Building Materials Corp. of America. At the same time, S&P revised the recovery rating on the company's $975 million first-lien term loan due 2014 to '3', indicating that lenders can expect meaningful (50% to 70%) recovery in the event of a payment default, from '2'. As a result, S&P lowered the issue-level rating on the term loan to 'B+' from 'BB-', in accordance with its issue rating framework. S&P also assigned a '3' recovery rating on BMCA's outstanding $250 million 7.75% senior notes due 2014. Standard & Poor's removed all the ratings from CreditWatch, where they had been placed with negative implications on Jan. 10, 2008. The outlook is negative. "The affirmation and CreditWatch removal reflect our assessment that despite the high likelihood that competitive conditions in the residential construction and repair markets will remain difficult in the next several quarters, BMCA's operating results will stabilize somewhat," said Standard & Poor's credit analyst Thomas Nadramia. S&P expect this to result from an uptick in volume resulting from storm-related repairs in the Midwest and southern U.S., the recovery of increased raw material costs via pricing improvements, and the full realization of synergies related to the 2007 acquisition of ElkCorp. The rating on BMCA reflects the company's cyclical earnings, the current weak operating environment, volatile petroleum-based raw material costs, and a highly leveraged financial profile. These risks outweigh the company's presence as North America's largest roofing manufacturer, its national distribution network, and its good brands. CARDIMA INC: Posts $2,316,000 Net Loss in 2008 First Quarter ------------------------------------------------------------ Cardima Inc. reported a net loss of $2,316,000, on net sales of $417,000, for the first quarter ended March 31, 2008, compared with a net loss of $9,849,000, on net sales of $319,000, in the same period last year. At March 31, 2008, the company's balance sheet showed $6,285,000 in total assets, $1,941,000 in total liabilities, and $4,344,000 in total stockholders' equity. Full-text copies of the company's financial statements for the quarter ended March 31, 2008, are available for free at: http://researcharchives.com/t/s?2c79 Going Concern Disclaimer PMB Helin Donovan, in San Francisco, expressed substantial doubt about Cardima Inc.'s ability to continue as a going concern after auditing the company's financial statements for the year ended Dec. 31, 2007. The auditing firm pointed to the company's recurring losses from operations. About Cardima Inc. Headquartered in Fremont, Calif., Cardima Inc. (OTC BB: CRDM.OB) -- http://www.cardima.com/-- has developed the PATHFINDER(R) and REVELATION(R) Series of diagnostic catheters, the INTELLITEMP(R) Energy Management Device, and the Surgical Ablation System. The REVELATION(R) Series of ablation catheters with the INTELLITEMP(R) EP Energy Management Device was developed and marketed for the treatment of atrial fibrillation after receiving CE mark approval in Europe; it is not currently available in the U.S. CGCMT 2006-FL2: Fitch Puts 'BB+' Rating Under Negative Watch ------------------------------------------------------------ Fitch Ratings upgraded these class of CGCMT 2006-FL2: -- $1.2 million class MVP to 'AAA' from 'BBB-'. Fitch also places on Rating Watch Negative these classes: -- $2 million class RAM-1 at 'BBB-'; -- $2.4 million class RAM-2 at 'BB+'. Additionally, Fitch affirmed these classes: -- $22.2 million class A-1 at 'AAA'; -- $237.2 million class A-2 at 'AAA'; -- Interest-Only class X-2 at 'AAA'; -- Interest-Only class X-3 at 'AAA' -- $17.9 million class B at 'AAA'; -- $20.9 million class C at 'AAA'; -- $38.8 million class D at 'AA+'; -- $26.9 million class E at 'AA-'; -- $26.9 million class F at 'A+'; -- $23.9 million class G at 'A'; -- $20.9 million class H at 'A-'; -- $22.4 million class J at 'BBB+'; -- $22.4 million class K at 'BBB'; -- $23.9 million class L at 'BBB-'; -- $257,664 class CAC-1 at 'BBB+'; -- $176,519 class CAC-2 at 'BBB'; -- $205,253 class CAC-3 at 'BBB-'; -- $801,000 class CAN-1 at 'BBB+'; -- $1.2 million class CAN-2 at 'BBB'; -- $2.3 million class CAN-3 at 'BBB-'. -- $10.6 million class CNP-1 at 'BBB-'; -- $20.1 million class CNP-2 at 'BBB-'; -- $5.2 million class CNP-3 at 'BB+'; -- $1 million class DSG-1 at 'BBB-'. Fitch does not rate classes DHC-1, DHC-2, DHC-3, DSG-2, PHH-1, PHH-2, and SRL. Classes X-1, HFL, HGI-1, HGI-2, HMP-1, HMP-2, HMP-3, WBD-1, WBD-2 and WPP have paid in full. The upgrade to class MVP is due to improved performance of the Mervyn's Portfolio (3.1%). Originally the second largest loan (12.9%), the Mervyn's Portfolio was secured by 13.6 million square feet in 144 retail properties, four distribution properties, and one office. As of April 30, 2008, 61 stores have been released from the collateral, resulting in a reduction of the loan's outstanding principal balance. The loan consists of three pari passu A notes: the $20.3 million A-1 (included in GSMSC 2006-GSFL VIII), the $20.3 million A-2 (included in GCCF 2006-FL4 and rated by Fitch), and the A-3, which is included in this transaction and has an outstanding balance of $18 million. The loan matured Jan. 1, 2008 and is in year one of three one-year extension options. The placement of class RAM-1 and RAM-2 on Rating Watch Negative is due to declining performance of the Radisson Ambassador Plaza Hotel and Casino (9.8%). The property is a full-service, 233-room hotel and casino located one block from the beach in the Condado sector of San Juan, Puerto Rico. The casino, which is located within the hotel, occupies approximately 14,000 sf on the hotel's ground floor. The property was renovated between October 2005 and May 2006, which affected occupancy and average daily rate. The property has not stabilized and occupancy has not increased as expected following the renovations. The year-end 2007 occupancy, ADR, and RevPAR were 79.3%, $150.34, and $119.16, respectively, as compared to YE 2006 occupancy, and RevPAR of 83.1%, $147.30 and $122.39. Performance has declined as a result of the softening of the Puerto Rico economy and increased competition primarily from renovated and upgraded casinos. The largest loan, City National Plaza (63.2%) is secured by 2.6 million sf of office space in two 51-story office towers, a three- story office building, 404 on-site parking spaces, and a freestanding 2,485-space parking structure all located in downtown Los Angeles, California. Major tenants include City National Bank (rated 'A-' by Fitch), Paul, Hastings, Janofsky & Walker LLP; and Jones Day. The property benefits from the experienced sponsorship of CalSTRS, the third largest pension fund in the U.S. As of Dec. 31, 2007, occupancy has increased to 81.4% from 63.3% at issuance. There is no significant tenant rollover occurring in 2008 or 2009. The loan matures July 17, 2008 and has two one-year extension options. The borrower has requested an extension. Extension is subject to an LTV constraint of no greater than 75%, increased amount of letter of credit, and an interest rate cap. A new appraisal has been ordered and request is under review. CHARYS HOLDING: Wants Until October 11 to File Chapter 11 Plan -------------------------------------------------------------- Charys Holdings Company Inc. and Crochet & Borel Services Inc. ask the Hon. Brendan L. Shannon of the United States Bankruptcy Court for the District of Delaware to further extend the exclusive periods to: -- file a Chapter 11 plan until Oct. 11, 2008, and -- solicit acceptances of that plan until Dec. 10, 2008. The Debtors say in their request that they have made significant progress during their Chapter 11 bankruptcy cases. They have reached agreements with majority of their creditors with respect to the terms of a Chapter 11 plan, which will be included into the Debtors' Chapter 11 plan. The Debtors are currently in the process of finalizing such agreements. The Debtors' exclusive plan filing period will expire on June 13, 2008. A hearing is set for June 17, 2008, at 11:00 a.m., to consider approval of the Debtors' request. Objections, if any, are due June 10, 2008, at 4:00 p.m. Headquartered in Atlanta, Georgia, Charys Holding Co., Inc., -- http://www.charys.com/-- provide remediation & reconstruction and wireless communications & data infrastructure. The company and its Crochet & Borel Services, Inc. subsidiary filed for Chapter 11 protection on Feb. 14, 2008 (Bankr. Del. Case No.08-10289). Chun I. Jang, Esq., Mark D. Collins, Esq., and Paul Noble Heath, Esq., at Richards, Layton & Finger, P.A., represent the Debtors in their restructuring efforts. The U.S. Trustee for Region 3 appointed five creditors to serve on an Official Committee of Unsecured Creditors. The Committee selects Morris Nichols Arsht & Tunnell LLP as Delaware co-counsel. When the Debtors filed for protection against their creditors, it listed total assets of $245,000,000 and total debts of $255,000,000. CKRUSH INC: March 31 Balance Sheet Upside-Down by $10,781,823 ------------------------------------------------------------- Ckrush Inc.'s consolidated balance sheet at March 31, 2008, showed in $2,214,102 in total assets, $8,894,802 in total liabilities, and $4,101,123 in minority interest, resulting in a $10,781,823 total stockholders' deficit. The company reported a net loss of $1,341,028, on net revenues of $96,638, for the first quarter ended March 31, 2008, compared with a net loss of $1,318,929, on net revenues of $871,625, in the same period last year. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2c80 Going Concern Disclaimer As reported in the Troubled Company Reporter on May 5, 2008, Rosenberg Rich Baker Berman & Company, in Bridgewater, N.J., expressed substantial doubt about Ckrush Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditor pointed to the company's significant operating losses and significant working capital deficit. About Ckrush Inc. Headquartered in New York, Ckrush Inc. (OTC BB: CKRU.OB) -- http://www.ckrush.net/-- is an entertainment and interactive media group. The company produces feature films and other content and develop and maintain websites, including online communities, primarily geared towards young adults, 18-34. The company's services also include website design, development, hosting, advertising and media placement. CV THERAPEUTICS: VP Amends Trading Plan & Approves Sale of Shares ----------------------------------------------------------------- Brent K. Blackburn, Ph.D., the Senior Vice President, Drug Discovery and Development, of CV Therapeutics, Inc., amended his written trading plan dated Nov. 15, 2007, with E*TRADE Securities, LLC, in accordance with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. Trading under Dr. Blackburn's amended plan will begin as early as June 17, 2008, and end on December 17, 2008, unless terminated earlier, and authorizes the sale of up to 23,394 shares (prior to tax withholding) of common stock of CV Therapeutics. Reports of the details of actual sales under the amended plan will be filed by Dr. Blackburn in accordance with the Securities and Exchange Commission's regulations. The shares subject to the amended trading plan do not represent all of Dr. Blackburn's holdings in CV Therapeutics' securities. During the term of the amended trading plan, Dr. Blackburn may from time-to-time buy or sell CV Therapeutics' securities outside of the amended plan. Headquartered in Palo Alto, California, CV Therapeutics Inc. (NasdaqGM: CVTX) -- http://www.cvt.com/-- is a biopharmaceutical company focused on applying molecular cardiology to the discovery, development and commercialization of novel, small molecule drugs for the treatment of cardiovascular diseases. CV Therapeutics' approved products include Ranexa(R) (ranolazine extended-release tablets), indicated for the treatment of chronic angina in patients who have not achieved an adequate response with other antianginal drugs, and Lexiscan(TM) (regadenoson) injection for use as a pharmacologic stress agent in radionuclide myocardial perfusion imaging in patients unable to undergo adequate exercise stress. At March 31, 2008, the company's consolidated balance sheet showed $228.0 million in total assets and $436.1 million in total liabilities, resulting in a $208.1 million total stockholders' deficit. DANNY WOODS: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Danny Elvin Woods dba Triangle Wholesale Printing Co. dba Triangle Printing Company 141 Caldwell DR Hendersonville, TN 37075 Bankruptcy Case No.: 08-03652 Chapter 11 Petition Date: April 30, 2008 Court: Middle District of Tennessee (Nashville) Debtor's Counsel: Steven l. Lefkovitz Law Offices Lefkovitz & Lefkovitz 618 Church St Ste 410 Nashville, TN 37219 Tel: 615 256-8300 Fax: 615 250-4926 e-mail: Stevelefkovitz@aol.com Total Assets: $1,274,611 Total Debts: $1,077,078 A copy of the Debtor's Chapter 11 petition and list of 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/DANNY_WOODS_PETITION.pdf DANNY NICHOLSON: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Danny Nicholson, Inc. c/o Danny Nicholson, Sr. 339 City Lake Road Lexington, NC 27295-8439 336-249-7204 Bankruptcy Case No.: 08-50694 Chapter 11 Petition Date: April 24, 2008 Court: Middle District of North Carolina (Winston-Salem) Debtor's Counsel: Robert A. Lefkowitz 101 S. Main St., Suite 800 P. O. Box 1150 High Point, NC 27261-1150 Tel: (336) 883-9156 e-mail: rlefkowitz@highpointlaw.com Total Assets: $3,401,000 Total Debts: $7,737,947 A list of the Debtor's 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/DANNY_WOODS_PETITION.pdf DIANE DICIURCIO: Voluntary Chapter 11 Case Summary -------------------------------------------------- Debtor: Diane Beyers DiCiurcio 4 Pommel Court Mount Laurel, NJ 08054 Bankruptcy Case No.: 08-18556 Chapter 11 Petition Date: May 8, 2008 Court: District of New Jersey (Camden) Debtor's Counsel: John D. DiCiurcio DiCiurcio, DiCiurcio, P.A. 80 Barclay Center, Suite 5 Cherry Hill, NJ 08034 Tel: (856) 427-9293 Fax: (856) 427-9291 e-mail: diciurciowmpa@aol.com Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million Ms. DiCiurcio identified GMAC Mortgage in Phoenix, Arizona, as her largest unsecured creditor with a claim for $667,000, the value of security is $550,000 and the value of senior lien is $550,000. DISH NETWORK: Moody's Rates Echostar's $750MM Bond Offering Ba3 --------------------------------------------------------------- Moody's Investors Service assigned a Ba3 (LGD4-65%) rating to the new bond issuance of Dish Network Corporation's ("DISH" - Ba3 Corporate Family rating - "CFR") subsidiary, Echostar DBS Corporation ("EDBS"). The new $750 million 7.75% senior unsecured global bond offering matures on 5/31/2015. The rating assignment reflects the pari-passu nature of the issuance with existing EDBS debt. In addition, the assessment reflects the absence of any senior secured claims on the assets of EDBS and the structural priority to debt issued at DISH. Net proceeds from the new debt offering will be used for general corporate purposes. Assignments: Issuer: EchoStar DBS Corporation * $750 million 7.75% Senior Unsecured Bond due 2015 - Assigned Ba3 (LGD4 - 65%) The bond issuance further solidifies DISH's SGL-1 speculative grade liquidity rating. This rating continues to reflect the company's sizeable cash and marketable securities position ($2.3 billion at 3/31/08 pro forma for the new debt issuance) and strong internal cash flow generation. We expect the company will generate in the range of $800 to $900 million of free cash flow in 2008. The company has $1 billion of debt maturing on 10/1/2008, which the new bonds will likely help to pre-fund along with cash on hand, and therefore will not have any meaningful impact on credit metrics. DISH's Ba3 CFR and stable rating outlook continue to reflect the uncertainty regarding management's strategic direction, particularly given its competitive disadvantage relative to rival triple-play product offerings, its recent investment in broadcast spectrum, and the potential for continued shareholder-friendly activity. Moody's remains concerned that competition from cable and telecommunication companies, who offer multiple products (video, voice, and data), will pressure margins and cash flow generation as the costs to grow and retain subscribers will continue to escalate. Partially mitigating our concern are company's very strong credit metrics, strong liquidity, large subscriber base and attractive near term operating performance. EchoStar DBS Corporation is a wholly-owned subsidiary of Dish Network Corporation. DISH is the second largest provider of direct-to-home digital television service and third largest pay television provider in the United States with 13.8 million subscribers as of 3/31/2008. EDBS is the rated debt issuer and accounts for over 90% of DISH's debt capital structure and virtually all of DISH's revenue and EBITDA. All debt at EDBS is guaranteed by EDBS's subsidiaries. ENTERGY NEW: Fitch Revises Outlook to Positive from Stable ---------------------------------------------------------- Fitch Ratings has revised the Rating Outlook of Entergy New Orleans, Inc. to Positive from Stable and affirmed the Issuer Default Rating and outstanding debt ratings for as: -- IDR at 'BB'; -- Senior secured at 'BBB-'; -- Preferred stock at 'BB'. Approximately $260 million of debt is affected. The Outlook revision to Positive reflects: -- Stronger than expected credit metrics driven by customer growth; -- A more constructive regulatory environment; -- Recovery of storm damage costs from insurance and other sources; and -- Slower than expected capital spending, particularly spending to rebuild the gas system. For 2008-2009, Fitch projects that ENOI's FFO interest coverage will range from 5.0 times to 6.0x, while debt-to-FFO will range from 3.0x to 4.0x. These projections assume ENOI pays down the $30 million of first mortgage bonds due later this year. Cash flow from operations is expected to cover maintenance capital spending, while cash from insurance and other sources is expected to cover gas system rebuild costs for the next several years. Fitch expects to upgrade ENOI's ratings if ETR's spin-off of its non-regulated nuclear assets yields a credit neutral to positive outcome, and if there is a neutral to positive outcome of the base rate case ENOI will file in July 2008 for rates to begin in March 2009. A negative outcome of either these issues would likely result in Fitch revising ENOI's Rating Outlook to either Stable or Negative. In addition, Fitch notes that the service territory is susceptible to future storms and storm damage could result in negative rating actions. ENOI is a regulated utility that provides electric and gas service to customers located in and around the City of New Orleans. ESMARK INC: Files Annual Report, Expects Nasdaq Rules Compliance ---------------------------------------------------------------- Esmark Incorporated filed its 2007 Annual Report on Form 10-K on May 20, 2008, and relates it is in compliance with NASDAQ Marketplace Rule 4310(c)(14) with respect to such filing. As reported in the Troubled Company Reporter on May 1, 2008, Esmark Incorporated confirmed that, due to the failure to timely file its 2007 annual report on form 10-K with the Securities and Exchange Commission, it received from Nasdaq a Staff Determination letter stating that the company is not in compliance with Nasdaq Marketplace Rule 4310(c)(14) for continued listing. On April 1, 2008, the company disclosed that it was unable to timely file its annual report on form 10-K for the year ended Dec. 31, 2007, without unreasonable effort or expense because finalization of the financial statements had been delayed due to the complexity of accounting to the business combination of the company, Wheeling-Pittsburgh Corporation and Esmark Steel Service Group Inc. consummated on Nov. 27, 2007. The company also stated that on May 20, the NASDAQ Stock Market notified the company that it is not in compliance with NASDAQ Marketplace Rule 4310(c)(14) for continued listing, because of its failure to file its Quarterly Report on Form 10-Q for the quarter ended March 31, 2008. The delisting of the company's securities from The NASDAQ Stock Market will be considered when the company appears before the NASDAQ Listing Qualifications Panel on June 12, 2008. Any suspension of trading and the delisting from The NASDAQ Stock Market is stayed pending the issuance of a written decision by the hearing panel. The company also expects that it will be in compliance with such Rule when it files its Form 10-Q, which the company anticipates filing prior to the hearing date. About Esmark Incorporated Headquartered in Wheeling, West Virginia, Esmark Incorporated (NASDAQ:ESMK) -- http://www.esmark.com-- formerly Wheeling- Pittsburgh Corporation, is a holding company that, together with its subsidiaries and joint ventures, produces steel and steel products using both integrated and electric arc furnace technology. The company's principal operating subsidiary is Wheeling-Pittsburgh Steel Corporation. The company produces flat rolled steel products for steel service centers, converters, processors, and the construction, container and agriculture industries. Its product offerings focus on higher value-added finished steel products, such as cold rolled products, fabricated products, and tin and zinc coated products. Higher value-added products comprised 60.8% of the company's shipments during the year ended Dec. 31, 2006. In addition, it produces hot rolled steel products, which represent the least processed of its finished goods. In March 2008, the company completed the sale of its minority equity interest in Wheeling-Nisshin Inc. to Nisshin Holding Inc. ETHOS ENVIRONMENTAL: Posts $585,839 Net Loss in 2008 First Quarter ------------------------------------------------------------------ Ethos Environmental Inc. reported a net loss of $585,839, on revenue of $1,104,467, for the first quarter ended March 31, 2008, compared with a net loss of $924,407, on revenue of $2,697,133, in in the same period last year. At March 31, 2008, the company's consolidated balance sheet showed $9,213,596 in total assets, $1,780,922 in total liabilities, and $7,432,674 in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2c7f Going Concern Disclaimer Moore & Associates Chartered, in Las Vegas, expressed substantial doubt about Ethos Environmental Inc.'s ability to continue as a going concern after editing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm pointed to the company's net loss due to non-cash transactions. About Ethos Environmental Ethos Environmental Inc. manufactures and distributes a line of fuel reformulators that contain a blend of low and high molecular weight esters. The product adds cleaning and lubrication qualities to any type of fuel or motor oil. EUGENE RICCI: Voluntary Chapter 11 Case Summary ----------------------------------------------- Debtor: Eugene Renato Ricci 2620 West Live Oak Dr. Prescott, AZ 86305 Bankruptcy Case No.: 08-05287 Chapter 11 Petition Date: May 7, 2008 Court: District of Arizona (Phoenix) Debtor's Counsel: PERNELL W. MCGUIRE LAW OFFICE OF PERNELL W. MCGUIRE, PLLC P.O. BOX 1448 FLAGSTAFF, AZ 86002 Tel: 928-779-1173 Fax: 928-779-1175 e-mail: pmcguire@pmcguirelaw.com Total Assets: $5,633,271 Total Debts: $5,366,382 A copy of the Debtor's Chapter 11 petition and list of 18 largest unsecured creditors is available for free at: http://bankrupt.com/misc/EugeneRicci_PETITION.pdf EXCO RESOURCES: S&P Affirms 'B' Corporate Credit Rating ------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on independent exploration and production company EXCO Resources Inc. and removed the rating from CreditWatch with negative implications. The outlook is stable. At the same time, S&P affirmed its 'B-' unsecured issue rating and assigned a '5' recovery rating to EXCO Resources' $450 million senior notes. The ratings reflect S&P's expectation of modest (10% to 30%) recovery in the event of a payment default. The CreditWatch removal follows a full review of EXCO and contemplates several notable events: various acquisitions completed in 2007 and early 2008, the cancellation of a large planned master-limited-partnership offering, and the recent announcement of an increased capital spending program in 2008. "The rating affirmation reflects our view that a substantially transformed asset base, aggressively hedged production, and a favorable 2008 production outlook should support stable performance at the current ratings level over the near-to- intermediate term, despite persistently high debt levels," said Standard & Poor's credit analyst Jeffrey Morrison. In addition, EXCO's budding domestic natural gas shale plays bode well for its long-term future reserve and production growth prospects. The ratings on EXCO Resources reflect a highly leveraged financial risk profile, a historically acquisitive growth strategy, and a fast-paced and transaction-oriented management team. Weaknesses are partially tempered by a large and well-diversified base of onshore (predominantly natural gas-focused) reserves, a substantial hedging program to help smooth exposure to potential volatility in near term commodity prices, and a fairly low-risk, largely development-geared drilling program. As of March 31, 2008, Dallas, Texas-based EXCO Resources had about $4.6 billion in consolidated adjusted debt, which includes $2 billion in convertible preferred equity that S&P treat as debt- like and $1.1 in non-recourse bank debt that resides at wholly owned unrestricted subsidiary EXCO Partners Operating Partnership L.P. FERRELLGAS PARTNERS: Moody's Affirms Ba3 CRF; Outlook Negative -------------------------------------------------------------- Moody's Investors Service changed the rating outlook for Ferrellgas Partners, LP (Ferrellgas) to negative from stable. Moody's affirmed Ferrellgas' Ba3 corporate family rating (CFR) and probability of default rating and the B2 (LGD 6, 91%) rating on the partnership's $268 million senior notes due 2012. Moody's also affirmed the Ba3 (LGD 3, 44%) rating on Ferrellgas, LP's (OLP) $250 million senior unsecured notes due 2014. OLP is the wholly owned operating partnership subsidiary of Ferrellgas. Moody's does not rate the OLP's senior unsecured bank facilities or the OLP's approximately $277 million of private placement senior unsecured notes. "The outlook was changed to negative based on Ferrellgas' high leverage and increased business risk related to customer conservation trends and commodity price risk management," commented Pete Speer, Moody's Vice-President/Senior Analyst. "Despite Ferrellgas' significant operational improvements and progress in reducing leverage over recent years, we are concerned that the headwinds of high propane prices and declining volumes have reduced the likelihood that the partnership will be able to reduce its leverage to levels more consistent with its Ba3 rating." Ferrellgas' Ba3 CFR is supported by its leading market position and geographic diversification. The partnership is the second largest retail marketer of propane in the United States and services approximately one million propane customers from locations in all 50 states and Puerto Rico. Through its Blue Rhino brand, it is the largest retail distributor of propane cylinders for grills, with an estimated 50% market share. Ferrellgas has also invested heavily in system and process improvements over the past three years, which has yielded significant improvement in operational efficiency, pricing management and margins. The ratings are pressured by very high leverage and weak coverage ratios in comparison to the Ba3 rated propane and other midstream peers. Ferrellgas had reduced its adjusted debt/EBITDA from near 7x at the end of the fiscal year 2004 following its Blue Rhino acquisition to 5x at July 31, 2007 through steady increases in EBITDA over the period. The large and rapid increase in propane prices during this past heating season has resulted in elevated customer conservation driven volume declines and losses related to the partnership's commodity price exposures related to its fixed and indexed priced sales agreements with customers. The trends are expected to reduce FY 2008 EBITDA somewhat from prior year and thereby increase debt/EBITDA to around 5.25x. In order to return to a stable outlook, Ferrellgas' leverage needs to be reduced to around 4.5x on a sustainable basis over the course of the next fiscal year. If the partnership's leverage remains elevated or if it increases further due to debt funded acquisitions then the ratings could be downgraded. In addition, if there are additional significant losses related to Ferrellgas' commodity risk management activities or further declines in operating performance then the ratings could be downgraded. Ferrellgas Partners, LP is a publicly traded master limited partnership (MLP) based in Overland Park, KS. FORGITRON LLC: Gets Green Light to Borrow $165,000 from KeyBank --------------------------------------------------------------- The Hon. Randolph Baxter of the U.S. Bankruptcy Court for the Northern District of Ohio granted Forgitron LLC and Hadgitron LLC authority, on a final basis, to borrow up to $165,000 from KeyBank National Association and to continue using KeyBank's cash collateral. Representing the Debtors, Harry W. Greenfield, Esq., at Buckley King, LPA, in Cleveland, Ohio, told the Court the Debtors needed the funds to pay necessary administrative expenses, like taxes, utilities and professionals. The Debtors' operations have been shut down since April 2007, and the Debtors are seeking to sell substantially all of their assets. According to Mr. Greenfield, the Debtors lack any collections of accounts receivable or other funds with which to pay postpetition administrative expenses. KeyBank's postpetition loans are the only means by which the Debtors realistically can ensure that their estates will not be administratively insolvent. The Official Committee of Unsecured Creditors appointed in the Debtors' cases tried to block the approval of the DIP loan. That objection was later withdrawn. Forgitron is a party to a Revolving Credit and a Term Loan Note dated August 10, 2005, pursuant to which KeyBank advanced funds to Forgitron secured by, among other things, security interests in substantially all of Forgitron's business assets. Upon the Debtors' bankruptcy filing, Forgitron owed in respect of Forgitron Note #1 $10,000,000 to KeyBank. Forgitron is also party to a Promissory Note dated July 2, 2007, pursuant to which KeyBank advanced $150,000 to Forgitron. The principal amount remains outstanding and due as of the Petition Date. Hadgitron is a party to a Construction Loan Note dated December 1, 2005, pursuant to which KeyBank advanced funds to Hadgitron secured by, among other things, a mortgage on Hadgitron's real property located in Kershaw County, South Carolina. As of the Petition Date, Hadgitron owed $3,950,000 to KeyBank. The obligations to KeyBank under the prepetition notes are secured by the Debtors' assets. The DIP loan will incur interest at a fixed rate of 9% per annum. To secure the DIP loans, the Court held that KeyBank will be granted first priority liens on all unencumbered assets of the Debtors and "priming" liens on all encumbered assets of the Debtors, pursuant to 11 U.S.C. Sections 364(c)(2) and 364(d). The DIP loans will be treated as administrative claims having superpriority under 11 U.S.C. Section 364(c)(1). The Debtors will grant KeyBank adequate protection liens pursuant to Sections 361 and 363(e) of the Bankruptcy Code to protect the Lender's interest in the collateral. The Lender's liens are subject and subordinate in all respects to certain "Carve-Out Expenses," which consist of fees required to be paid to the Office of the United States Trustee pursuant to 28 U.S.C. Section 1930(a), and (b) compensation for services rendered or reimbursement of expenses incurred by professionals hired in the bankruptcy cases. About Forgitron and Hadgitron Forgitron LLC was formed in 2005 to manufacture aluminum wheels for Accuride Corporation pursuant to the terms of a supply agreement between the parties, under which Accuride was to purchase 12,000 units per month from Forgitron. Using Accuride as a base, Forgitron planned to expand its operations to provide wheels to other customers. Ultimately, Accuride refused to accept delivery of wheels manufactured by Forgitron, and Forgitron ceased all business operations in April 2007. Hadgitron LLC is the owner of real property located at 30 Hengst Drive, Camden, South Carolina, which it leases to Forgitron. The Real Property served as the base of Forgitron's business operations until the operations shut down in April 2007. The Debtors filed for chapter 11 on March 15, 2008, before the U.S. Bankruptcy Court for the Northern District of Ohio (Case Nos. 08-11762 and 08-11763). The Debtors are represented by Harry W. Greenfield, Esq., in Buckley King, LPA. Forgitron, LLC disclosed $10 million to $50 million in estimated assets and debts when it filed for bankruptcy. GLOBAL BEVERAGE: March 31 Balance Sheet Upside-Down by $5,179,439 ----------------------------------------------------------------- Global Beverage Solutions Inc.'s consolidated balance sheet at March 31, 2008, showed $3,237,057 in total assets and $8,416,496 in total liabilities, resulting in a $5,179,439 total stockholders' deficit. At March 31, 2008, the company's consolidated balance sheet also showed strained liquidity with $1,101,713 in total current assets available to pay $8,416,496 in total current liabilities. The company reported a net loss of $720,673, on revenues of $2,572,256, for the first quarter ended March 31, 2008, compared with a net loss of $1,231,076, on revenues of $811,696, in the same period last year. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2c83 Going Concern Disclaimer As reported in the Troubled Company Reporter on May 14, 2008, Turner, Stone & Company LLP, in Dallas, expressed substantial doubt about Global Beverage Solutions Inc.'s ability to continue as a going concern after auditing the company's financial statemens for the the year ended Dec. 31, 2007. The auditing firm or pointed to the company's limited revenues and losses totaling $33,766,869 for the period from Aug. 26, 2002, through Dec. 31, 2007. About Global Beverage Headquartered in Plantation, Fla., GlobaL Beverage Solutions Inc. (OTC BB: GBVS.OB) -- http://www.globalbeveragesolutions.com/-- is a business development company organized pursuant to applicable provisions of the Investment Company Act of 1940. The company primarily focuses on manufacturing, distribution and sales of unique beverages globally. GENERAL MOTORS: Ends Work Stoppage in 30 North American Plants -------------------------------------------------------------- The United Auto Workers local union ratified a new labor agreement with American Axle & Manufacturing Holdings Inc. on May 22, 2008, ending a work stoppage that affected approximately 30 General Motors Corp. plants in North America. As disclosed in the Troubled Company Reporter on May 19, 2008, the work stoppage at American Axle resulted in a loss of approximately 100,000 production units in the first quarter of 2008, which had an estimated impact on earnings before tax of approximately $800 million. In the second quarter, the American Axle strike is expected to result in the loss of an additional 230,000 production units, which is estimated to have an earnings before tax impact of approximately $1.8 billion. GM anticipates only a portion of this lost production will be recovered, due to the current economic environment in the United States and to the market shift away from the types of vehicles that were impacted by the action at American Axle. GM previously disclosed that it had agreed to provide American Axle upfront support capped at $200 million to help fund employee buyouts, early retirements and buydowns to facilitate a settlement of the work stoppage. Final negotiations resulted in total support of $215 million. In addition, as reported in the TCR, several other GM plants have been idled by work stoppages associated with finalizing local UAW agreements. These work stoppages are expected to result in the loss of approximately 33,000 production units in the second quarter, which are estimated to have an earnings before tax impact of approximately $200 million. Members of the local union at the Lansing Delta Township plant in Lansing, Michigan have ratified a new local labor agreement and production resumed on May 19. Members of the local union at the Fairfax plant in Kansas City, Kansas have also ratified a new local labor agreement and production resumed on May 22. GM plans to recover the lost production due to the impact of the local strikes over the remainder of this year. Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. At March 31, 2008, GM's balance sheet showed total assets of $145,741,000,000 and total debts of $186,784,000,000, resulting in a stockholders' deficit of $41,043,000,000. Deficit, at Dec. 31, 2007, and March 31, 2007, was $37,094,000,000 and $4,558,000,000, respectively. * * * As reported in the Troubled Company Reporter on April 28, 2008, Standard & Poor's Ratings Services said that its 'B' long-term and 'B-3' short-term corporate credit ratings on General Motors Corp. remain on CreditWatch with negative implications, where they were placed March 17, 2008. The CreditWatch update follows downgrades of 49%-owned subsidiaries GMAC LLC (B/Negative/C) and Residential Capital LLC (CCC+/Watch Neg/C). The rating actions on Residential Capital LLC and GMAC were triggered by the resignation of the only independent directors at Residential Capital LLC. GOEN TECHNOLOGIES: Files for Chapter 11 Protection in New Jersey ---------------------------------------------------------------- Goen Technologies Corporation and four of its affiliates filed for Chapter 11 protection with the U.S. Bankruptcy Court for the District of New Jersey. Based in East Hanover, New Jersey, Goen Technologies Corporation and its affiliates, TrimSpa Inc., Vitamerica Corp., and Winfuel Inc. are the makers of dietary supplements. Their most notable product was the supplement TrimSpa, which had been promoted by the late actress Anna Nicole Smith. They filed for bankruptcy on May 21, 2008 (Bankr. N.J. Lead Case No. 08-19499). The Debtors listed consolidated total assets of $1,459,219 and total debts of $31,999,096. HARBOUR WALK PRESERVE: Voluntary Chapter 11 Case Summary -------------------------------------------------------- Debtor: Harbour Walk Preserve, LLC 4227 Northlake Blvd. Palm Beach Gardens, Fl 33410 Bankruptcy Case No.: 08-16789 Chapter 11 Petition Date: May 23, 2008 Court: Southern District of Florida (West Palm Beach) Judge: Paul G. Hyman, Jr. Debtor's Counsel: Bradley S. Shraiberg, Esq. Email: bshraiberg@kpkb.com John E. Page, Esq. Email: jpage@kpkb.com Kluger Peretz Kaplan & Berlin, P.L. 2385 N.W. Executive Ctr. Dr. Ste. 300 Boca Raton, FL 33431 Tel: (561) 443-0801, (561) 443-0819 Fax: (561) 998-0047, (561) 998-0047 -- and -- Eyal Berger, Esq. Email: eberger@kpkb.com 201 S. Biscayne Blvd., 17th Fl. Miami, FL 33131 Tel: (305) 379-9000 Fax: (305) 351-3801 Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million The Debtor did not file a list of its largest unsecured creditors. HAWAIIAN TELCOM: PUC Denies Request to Increase Borrowing Capacity ------------------------------------------------------------------ Hawaiian Telcom Communications, Inc. reported last week that the Public Utilities Commission of the State of Hawaii denied the Company�s request to increase its borrowing capacity from $90 million to $150 million under its existing senior secured revolving credit facility. The Company�s right to elect to increase its borrowing capacity under its existing senior secured revolving credit facility will expire on June 1, 2008. Hawaiian Telcom is the state�s leading telecommunications provider, offering a wide spectrum of telecommunications products and services, which include local and long distance service, high- speed Internet, and wireless services. The Troubled Company Reporter reported on April 10, 2008, that Moody's Investors Service downgraded the Corporate Family Rating of Hawaiian Telcom Communications Inc., to B3 from B2, and changed the outlook for the company to negative from stable. In addition, Moody's downgraded the company's probability of default rating to PDR-Caa1 from PDR-B2. The rating actions reflect the fact that the serious systems problems that developed in 2006 unexpectedly extended into a good part of 2007. Consequently, operating and financial performance fell well short of expectations and, in Moody's opinion, may have caused significant long-term damage to the company's competitive position. In 2007, HI-Tel residential access lines declined 11.0%, total lines fell 7.0% and high-speed-data lines grew just 1.3%. Overall revenues fell by almost 4.0%. In addition, the Hawaiian Public Utilities Commission continues its investigation into the company's service quality and performance levels. Despite recent signs of systems stabilization and improving functionality and the efforts of a new management team to refocus the business and reduce costs, Moody's believes that the company's credit profile over the next 18 to 24 months will be more consistent with a B3 rating. HEALTHSOUTH CORP: Reduces High Cost Debt to $2 Billion by Q4 2007 ----------------------------------------------------------------- According to a Securities and Exchange Commission filing, Healthsouth Corp. disclosed that it has prioritized reducing high cost debt such as the purchase of $5 million of 10.75% senior notes in January and February in 2008, and the plan to repay $30 million of 10.75% senior subordinated notes in the fourth quarter of 2008. Healthsouth also disclosed future debt reduction from sale of corporate campus, additional income tax recoveries, excess cash from operations, and derivative proceeds. A "new" HealthSouth emerged after a turnaround progra, which included the election of a new, independent board and a new management; resolution of a bond holder dispute; a settlement with the Department of Justice and the SEC; reconstruction of financial statements; and sale of non-core assets. The old HealthSouth was described as a complex company with four operating divisions and no synergies -- some actual dis-synergies. The old company was heavily levered with $3.5 billion of debt and had more than $1 billion total cash outflows related to government settlements and professional fees. The old company was also riddled with corporate governance issues. The new HealthSouth is a post-acute provider with emphasis on inpatient rehabilitation, with a reduced debt of $2 billion in the fourth quarter of 2007. The new company created comprehensive internal controls from ground up. According to the regulatory filing, excess cash flow will be used for: * reducing debt, * upgrading existing hospitals * building new hospitals, and acquiring competitors. HEARTLAND INC: Earns $401,756 in 2008 First Quarter Ended March 31 ------------------------------------------------------------------ Heartland Inc. reported net income of $401,756, on sales of $4,058,796, for the first quarter ended March 31, 2008, compared with a net loss of $653,018, on net sales of $3,401,070, in the same period last year. At March 31, 2008, the company's consolidated balance sheet showed $7,125,117 in total assets, $4,827,944 in total liabilities, and $2,297,173 in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2c84 Going Concern Disclaimer Meyler & Company LLC, in Middletown, N.J., expressed substantial doubt about Heartland Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm pointed to the company's loss from continuing operations of $1,090,267 in 2007 and accumulated deficit of $14,958,608 at Dec. 31, 2007. In addition, the auditing firm said that there are existing uncertain conditions which the company faces relative to its obtaining capital in the equity markets. About Heartland Inc. Headquartered in Middlesboro, Ky., Heartland Inc. (OTC BB: HTLJ.OB) -- http://www.heartlandholdingsinc.com/-- through its subsidiary, Mound Technologies Inc. of Springboro, Ohio, is engaged in the business of steel fabrication. HERITAGE WORLDWIDE: Posts $817,868 Net Loss in Qtr. Ended March 31 ------------------------------------------------------------------ Heritage Worldwide Inc. reported a net loss of $817,868, on revenues of $3,652,235, for the third quarter ended March 31, 2008, compared with net income of $3,314, on revenues of $3,188,873 in the same period last year. The increase in revenues during the three-month period ended March 31, 2008, when compared to the prior year period is primarily attributable to increased volume of breast implants sold to distributors in Latin America and in Europe. At March 31, 2008, the company's balance sheet showed $18,794,626 in total assets, $15,450,677 in total liabilities, $826,593 in minority interest, and $2,517,356 in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2c7c Going Concern Disclaimer Sherb & Co. LLP, in New York, expressed substantial doubt about Heritage Worldwide Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended June 30, 2007. The auditing firm pointed to the company's significant losses and working capital deficiency. About Heritage Worldwide Heritage Worldwide Inc (OTC BB: HWWI) manufactures and distributes cosmetic implants including pre-filled breast and other body implants, as well as body support products. HWWI was incorporated in the State of Delaware in 2001 with headquarters and a production facility in the Toulon metropolitan area of southern France, and a distribution facility in Spain. HWWI products are sold directly and indirectly through independent distributors and sales representatives to surgeons and clinics outside the United States. More than 68% of sales are derived from international operations outside France, where main operations are conducted. HOOP HOLDINGS: Pepper Hamilton Approved as Panel's Del. Counsel --------------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware authorized the Official Committee of Unsecured Creditors of the Chapter 11 proceedings of Hoop Holdings LLC and its debtor- affiliates to retain Pepper Hamilton LLP as Delaware counsel. As the Committee's Delaware counsel, Pepper Hamilton is expected to: a) assist OSHR in representing the Committee; b) advise the Committee with respect to its rights, duties and powers in these Cases; c) assist and advise the Committee in its consultations with the Debtors, other committees and other parties in interest, relating to the administration of these cases; d) assist the Committee in analyzing the claims of the Debtors' creditors and capital structure and in negotiating with the holders of claims and, if appropriate, equity interests; e) assist the Committee's investigation of the acts, conduct, assets, liabilities and financial condition of the Debtors and other parties involved with the Debtors, and of the operation of the Debtors' businesses; f) assist the Committee in analyzing intercompany transactions; g) assist the Committee in its analysis of, and negotiations, with the Debtors or any other third party concerning matters related to, among other things, the assumption or rejection of certain leases of non-residential real property and executory contracts, asset dispositions, financing of other transactions and the terms of a plan of reorganization for the Debtors; h) assist and advise the Committee as to its communications, if any, to the general creditor body regarding significant matters in these cases; i) represent the Committee at all hearings and other proceedings; j) review, analyze, and advise the Committee with respect to all applications, orders, statements of operations and schedules filed with the Court; k) assist the Committee in preparing pleadings and applications as may be necessary in furtherance of the Committee\u2019s interests and objectives; and l) perform such other services as may be required and are deemed to be in the interests of the Committee in accordance with the Committee's powers and duties as set forth in the Bankruptcy Code. The firm's professionals and their compensation rates are: Designations Hourly Rates ------------ ------------ Partners $450-$695 Special Counsel $450-$695 Counsel $450-$695 Associates $250-$400 Paraprofessionals $175-$205 David B. Stratton, Esq., a partner of the firm, assures the Court that the firm is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. About Hoop Holdings Headquartered in Secausus, New Jersey, Hoop Holdings LLC owns and operates gift, novelty, and souvenir shops. The company and two of its affiliates (Hoop Retail Stores, LLC and Hoop Canada Holdings, Inc.) filed for Chapter 11 protection on March 27, 2008 (Bankr. D. Del. Lead Case No.08-10544). Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, represents the Debtors in their restructuring efforts. The Debtors selected Epiq Bankruptcy Solutions LLC as claims and noticing agent. The U.S. Trustee for Region 3 has appointed seven creditors to serve on an official committee of unsecured creditors or examiner under these cases. When the Debtors' filed for protection against their creditors, they listed assets and debts between $100 million to $500 million. HORACE MANN: A.M. Best Affirms 'bb' Rating on Preferred Stock ------------------------------------------------------------- A.M. Best Co. has affirmed the financial strength ratings of A- (Excellent) and issuer credit ratings of "a-" of Horace Mann Educators Corporation's property/casualty group, Horace Mann Insurance Group, its members and HMEC's life/health insurance company, Horace Mann Life Insurance Company. A.M. Best also has affirmed the ICR of "bbb-" and debt ratings of HMEC. The outlook for all ratings is stable. The ratings reflect Horace Mann's strengthened capitalization driven by the corrective measures management has taken in recent years to its operations. The 2007 operating results have been driven by positive underwriting results in the homeowners, private passenger auto liability and private passenger auto physical damage lines. The performance of Horace Mann's property book has improved markedly as rate increases and improvements in underwriting terms have continued to produce earnings results. The group also benefits from its expertise in personal line products for the educator market, which has enabled it to obtain numerous endorsements from local, state and national educational associations. Horace Mann's negative rating factors center around its continued above average underwriting leverage measures and exposure to severe weather losses in its property book, despite the marked improvements the company recently has made. Horace Mann Life's ratings reflect its important role within HMEC, solid stand-alone risk-adjusted capitalization, overall profitable earnings performance and a distribution model that employs the use of both independent and captive agents to market its 403(b) tax- qualified annuity products. Partially offsetting these strengths is the continued challenges of spread management on the company's fixed annuity block, exposure to potential equity market volatility in the form of reduced fee income from its variable annuity business and growing its proprietary ordinary life segment while sustaining sales momentum in its 403(b) business in the face of pending regulatory changes effective Jan. 1, 2009. A.M. Best recognizes the recent positive trends in Horace Mann's capitalization, although it remains cautious and continues to monitor closely the demands on Horace Mann Life's financial resources to support HMEC. HMEC continues to operate through a corporate structure that affords financial flexibility as a publicly traded holding company with access to the capital markets, moderate financial leverage and historically solid fixed charge coverage. The FSR of A-(Excellent) and ICRs of "a-" have been affirmed for Horace Mann Insurance Group and its following members: -- Horace Mann Insurance Company -- Horace Mann Property & Casualty Insurance Company -- Teachers Insurance Company -- Horace Mann Lloyds The FSR of A-(Excellent) and ICR of "a-" have been affirmed for Horace Mann Life Insurance Company. The ICR of "bbb-" has been affirmed for Horace Mann Educators Corporation. These debt ratings have been affirmed: Horace Mann Educators Corporation -- -- "bbb-" on $75 million 6.05% senior unsecured notes, due 2015 -- "bbb-" on $125 million 6.85% senior unsecured notes, due 2016 These indicative ratings have been affirmed on securities available under the $300 million shelf registration: Horace Mann Educators Corporation -- -- "bbb-" on senior unsecured debt -- "bb+" on subordinated debt -- "bb" on preferred stock HORIZON LINES: S&P Holds Ratings and Changes Outlook to Negative ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Horizon Lines Inc. to negative from stable. S&P affirmed the 'BB-' long- term corporate credit rating. At the same time, S&P affirmed the 'BB+' rating on the senior secured debt, two notches above the corporate credit rating on the company, while leaving the recovery rating on this debt unchanged at '1', indicating expectations of a substantial (90%-100%) recovery in the event of a payment default. In addition, S&P affirmed the 'B' rating on the senior unsecured notes, two notches below the corporate credit rating, while leaving the recovery rating unchanged at '6', indicating expectations of a negligible (0%-10%) recovery in the event of a payment default. "The outlook revision reflects our expectation that earnings will remain under pressure due to rising bunker fuel prices, despite a fuel surcharge program, and continued softness in Puerto Rico, market trends we expect to continue over at least the next year," said Standard & Poor's Funmi Afonja. The company recently lowered its 2008 earnings guidance for these reasons and cited expectations of reduced cargo volumes in Puerto Rico. The negative outlook also reflects the potential for credit measures to weaken further if the company makes an acquisition in the next year to grow its logistics segment. Ratings on Charlotte, North Carolina-based Horizon Lines reflect the company's highly leveraged financial profile, shareholder- friendly financial policies, and participation in the capital- intensive and competitive shipping industry. Positive credit factors include barriers to entry afforded by the Jones Act (which applies to intra-U.S. shipping) and fairly stable demand from the company's diverse customer base. Horizon Lines primarily transports goods between the continental U.S. and Alaska, Hawaii, Guam, Micronesia, Asia, and Puerto Rico. In September 2007, the company created Horizon Logistics to expand and develop its existing fully integrated logistics services business and to help maintain its established container shipping business. Horizon Lines operates under the Jones Act, which requires that shipments between U.S. ports be carried on U.S.- built vessels that are flagged in the U.S., crewed by U.S. citizens, and operated by companies that are at least 75% owned by U.S. citizens. These requirements narrow the competitive landscape by excluding direct competition from foreign-flagged vessels. The negative outlook reflects our expectations of increased earnings pressures because of rising fuel prices (despite a fuel surcharge program), weak market conditions in Puerto Rico, and the likelihood of an acquisition in the next year. A material weakening in earnings or an increase in debt leverage to finance an acquisition would likely result in a downgrade. S&P could revise the outlook back to stable if earnings and credit metrics strengthen as a result of improved market conditions or the company adopts a less-aggressive financial policy. On April 17, 2008, the company confirmed that U.S. federal agents served search warrants and a grand jury subpoena relating to an investigation of pricing practices of ocean carriers operating in the Puerto Rico trade. At this time, ratings and outlook on Horizon Lines Inc. are not affected. S&P will continue to monitor developments. HSI ASSET: S&P Slashes Certificates Rating to 'D' from 'CC' ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on the class M-8 and M-9 certificates from HSI Asset Securitization Corp. Trust 2006-WMC1 to 'D' from 'CC.' S&P downgraded the class M-8 and M-9 certificates because they had realized cumulative losses of $5,656,663.13 and $6,312,000, respectively, as of the May 2008 remittance period. To date, the transaction has experienced $47.983 million in cumulative realized losses. Subordination, excess interest, and overcollateralization provide credit support for the transaction. At issuance, the collateral backing the deals consisted of subprime fixed- and adjustable-rate fully amortizing first-lien mortgage loans secured by one- to four-family residential properties. IMPLANT SCIENCES: Posts $1,528,000 Net Loss in Qtr. Ended March 31 ------------------------------------------------------------------ Implant Sciences Corp. reported a net loss of $1,528,000, on security revenues of $787,000, for the third quarter ended March 31, 2008, compared with a net loss of $1,892,000, on security revenues of $1,121,000, in the same period last year. At March 31, 2008, the company's consolidated balance sheet showed $9,665,000 in total assets, $5,274,000 in total liabilities, $2,551,000 in redeemable convertible preferred stock, and $1,840,000 in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2c81 Going Concern Disclaimer As reported in the Troubled Company Reporter on Oct. 19, 2007, UHY LLP, in Boston, expressed substantial doubt about Implant Sciences Corporation's ability to continue as a going concern after auditing the company's consolidated financial statements for the fiscal year ended June 30, 2007. The auditing firm pointed to the company's recurring losses from operations. About Implant Sciences Headquartered in Wakefield, Mass., Implant Sciences Corporation -- http://www.implantsciences.com/-- develops, manufactures and sells products through its primary business units: (i) explosives trace detection systems for homeland security, defense, and other security related applications and (ii) state of the art services for the medical and semiconductor industries. The company has developed proprietary technology used in its commercial portable and bench-top ETD systems, which ship to a growing number of locations domestically and around the world. INDALEX HOLDINGS: Completes Amended and Restated Credit Deal ------------------------------------------------------------ Indalex Holdings Finance Inc. completed an amended and restated credit agreement which allows Indalex to receive a $15 million senior secured term loan from Sun Indalex Finance LLC, an affiliate of Sun Capital Partners Inc., and pursue up to $20 million in sale-leaseback transactions. In addition, an incremental $15 million senior secured term loan would be available in the future at the lender's sole option. Indalex also disclosed that the initial term loan was completed, and Indalex has received the initial term loan from the lender. "I am delighted to report that we have obtained approval of an amended credit agreement, which will further enhance our revolver availability as we continue the implementation of our Manufacturing Improvement Strategy to position the business not just for short-term market conditions, but also to grow with our customers when market conditions improve," Timothy R.J. Stubbs, president and chief executive officer, said. "Our strong support from our equity sponsor enables us to quickly drive necessary improvements and efficiencies through our business, something that many of our competitors cannot do during these continued weak market conditions," Mr. Stubbs added. The key terms of the amended credit agreement and term loans include: * the addition of a $15 million senior secured term loan from the lender as part of the existing senior facility and the ability to put in place an incremental $15 million senior secured term loan with substantially the same terms as the Initial Term Loan that would be available in the future at the lender's sole option; and * the ability to pursue up to $20 million of real estate sales in sale-leaseback transactions; Under the terms of the amended credit agreement, the proceeds of the term loans will pay down the outstanding revolving loan balance under the existing credit facility, and pay fees and expenses herewith, thereby increasing the company's liquidity. About Indalex Holdings Finance Inc. Indalex Holding Corp., -- http://www.indalex.com/-- is a wholly owned subsidiary of Indalex Holdings Finance Inc., through its operating subsidiaries Indalex Inc. and Indalex Ltd., with headquarters in Lincolnshire, Illinois, is the second largest producer of soft alloy aluminum extrusion products in North America. The company's aluminum extrusion products are widely used throughout industrial, commercial, and residential applications and are customized to meet specific end-user requirements. The company's North American network includes 12 extrusion facilities, 33 extrusion presses with circle sizes up to 14 inches, a variety of fabrication and close tolerance capabilities, three anodizing operations, two billet casting facilities, and six electrostatic paint lines, including powder coat capability. As of March 30, 2008, the company showed strained liquidity with total current assets of $207.1 million and total current liabilities of $238.6 million. The company had total assets of $474.8 million and total liabilities of $482.2 million, resulting in total stockholders' deficit of $7.3 million. INTEGRATED MEDIA: March 31 Balance Sheet Upside-Down by $7,572,803 ------------------------------------------------------------------ Integrated Media Holdings Inc.'s consolidated balance sheet at March 31, 2008, showed $3,527,500 in total assets and $11,100,303 in total liabilities, resulting in a $7,572,803 total stockholders' deficit. At March 31, 2008, the company's consolidated balance sheet also showed strained liquidity with $1,145,892 in total current assets available to pay $9,636,337 in total current liabilities. The company reported a net loss of $201,374, on revenues of $852,372, for the first quarter ended March 31, 2008, compared with net income of $2,735, on revenue of $1,020,749, in the same period last year. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2c85 Going Concern Disclaimer Malone & Bailey, PC, in Houston, expressed substantial doubt about Integrated Media Holdings Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm pointed to the company's recurring losses, negative working capital, and stockholders' deficit. About Integrated Media Integrated Media Holdings Inc. (OTC BB: IMHI) -- http://www.arrayit.com/-- owns, as a wholly owned subsidiary, TeleChem International Inc., which is doing business as Arrayit Company, and is headquartered in Sunnyvale, California. Arrayit leads and empowers the genetic, research, pharmaceutical, and diagnostic communities through the discovery, development and manufacture of proprietary life science technologies and consumables for disease prevention, treatment and cure. ISABEL RABBANI: Case Summary & 5 Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Isabel L Rabbani aka Isabel L Woods 33601 Holtz Hill Rd Dana Point, CA 92629 Bankruptcy Case No.: 08-12473 Chapter 11 Petition Date: May 7, 2008 Court: Central District Of California (Santa Ana) Judge: Erithe A. Smith Debtor's Counsel: Matthew E Faler, Esq. 17330 Brookhurst St Ste 240 Fountain Valley, CA 92708 Tel: 714-965-7800 Fax: 714-965-7823 Total Assets: $2,016,100 Total Debts: $4,720,623 A copy of the Debtor's petition and list of five largest unsecured creditors is available for free at: http://bankrupt.com/misc/cacb08-12473.pdf ISCO INTERNATIONAL: Inks Funding Pact, Realigns Board & Management ------------------------------------------------------------------ ISCO International, Inc., disclosed an agreement in principle of a new credit line arrangement with its lenders. Additionally, ISCO reported the addition of Steve McCarthy to the Board of Directors, as well as departures from the Board of Directors and Management Team. New Credit Line Facility ISCO secured an agreement in principle for a new $2.5 million credit facility with its lenders. The line would be expected to expire on Aug. 1, 2010, and borrowings on the line will be charged a 9.5% interest rate. ISCO would borrow on the line immediately, using a portion of the proceeds to repay the outstanding $500,000 short term debt to Lenders related to the receivables factoring arrangement, including accrued interest. "This credit line indicates validation of our plan and provides us the capital resources we need to implement our strategy," Gordon Reichard, Jr., Chief Executive Officer of ISCO, said. "We will accelerate our realignment of the Company around key growth initiatives and transition our focus to sales and marketing activities that most effectively implement our go-to-market strategy. We expect to announce an investor call for early June to review our plan with our investors. I am pleased to see the buy in from our lenders and investors, and appreciate their continued support of our Company." Stephen McCarthy to the Board of Directors ISCO welcomes Mr. Stephen McCarthy to its Board of Directors. Mr. McCarthy served as Tellabs' Executive Vice President of Global sales, services and marketing from 2004 through 2007. Previously at Tellabs, he served as Sr. VP of Operations and Services, Sr. VP Optical Networking, Sr. VP Global Marketing and Sr. VP of Global Solutions and Services. Prior to Tellabs, Mr. McCarthy was Sr. VP of ADP's Major accounts division, and from 1989 through 1997 he held executive positions in both marketing and sales at Ameritech. Mr. McCarthy has a Bachelor of Science degree in Finance from the University of Illinois and an MBA from DePaul University. "As we evolve our company, this addition shows the deliberate, continuing diversification of our Board to support our market- focused plans for the future," Mr. Ralph Pini, Chairman of the Board of Directors, said. "His experience, perspective and judgment should provide great benefit to our company. We are very pleased to welcome him aboard." Board of Directors Resignations ISCO disclosed the resignation of Mr. John Thode from the Board of Directors. Mr. Thode was CEO of ISCO until November 2007 when he joined a large Fortune 500 company, but continued to serve on ISCO's Board of Directors until May 2008. Additionally, Mr. Jim Fuentes also resigned, both as a director and an employee. Mr. Fuentes was a member of the Board of Directors since 2003 and became Chief Strategy Officer following the acquisition of Clarity Communication Systems Inc. by ISCO during January 2008. "First and foremost, I'd like to thank John and Jim for their assistance in getting me up to speed here at ISCO since I joined two months ago," Mr. Reichard said. "We are making profound changes to our Company and business model. This process often includes the departures of some good people. Please join me in wishing them thanks for their contributions and only success in the future." Company Departure In addition to Jim Fuentes' departure, ISCO announces the departure of Mr. Frank Cesario, its Chief Financial Officer since 2002. "Frank has been with the Company a long time and has been key to managing through the many tough transitions that have occurred over the years," said Mr. Pini. "Over the past 60 days, Frank has provided the support and invaluable insight regarding all aspects of the Company allowing us to create the new plan we are about to embark upon," said Mr. Reichard. "Frank has a great future in front of him and I know everyone wishes him the best." The Company is in the advanced stages of the CFO selection process and will make an announcement at the appropriate time. About ISCO International Headquartered in Elk Grove Village, Ill., ISCO International Inc. (AMEX: ISO) -- http://www.iscointl.com/-- is a supplier of RF management and interference-control solutions for the wireless telecommunications industry. Going Concern Disclaimer As reported in the Troubled Company Reporter on April 18, 2008, Grant Thornton LLP, in Chicago, expressed substantial doubt about ISCO International Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2007, and 2006. The auditing firm reported that the company incurred a net loss of approximately $6.4 million during the year ended Dec. 31, 2007, and, as of that date, the company's accumulated deficit was approximately $171.0 million. The auditing firm also said that the company has consistently used, rather than provided, cash in its operations. JEANNINE A. GRIFFON: Case Summary & 2 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Jeannine A. Griffon 6646 N.W. 127th Terrace Parkland, FL 33076 Bankruptcy Case No.: 08-15004 Chapter 11 Petition Date: April 22, 2008 Court: Southern District of Florida (Fort Lauderdale) Judge: John K Olson Debtor's Counsel: David Marshall Brown, Esq. 33 NE 2 St # 208 Ft. Lauderdale, FL 33301 Tel: (954) 765-3166 e-mail: dmbrownpa@bellsouth.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor's two largest unsecured creditors are: Entity Claim Amount ------ ------------ Ford Motor Credit $4,000.00 POB 542000 Omaha, NE 68154 Wachovia Bank $2,000.00 1460 Coral Ridge Drive Coral Springs, FL 33071 JEFF Y. WER: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtors: Jeff Y. Wer dba Casa Blanca Bar & Grill Reina D. Wer 2602 N Camino Principal Tucson, AZ 85715 Bankruptcy Case No.: 08-04378 Chapter 11 Petition Date: April 18, 2008 Court: District of Arizona (Tucson) Judge: Eileen W. Hollowell Debtors' Counsel: Eric Slocum Sparks, Esq. Eric Slocum Sparks PC 110 S Church Ave #2270 Tucson, AZ 85701 Tel: 520-623-8330 Fax: 520-623-9157 e-mail: ericssparks@hotmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 Debtors' 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Avelo Mortgage Mortgage Deficiency $416,000 PO Box 660138 Dallas, TX 75266 Emad Alwer Loan $120,000 7850 N. Oracle Rd Tucson, AZ 85704 Humberto Alas Loan $50,000 4134 N. Business St. Long Beach, CA 90807 Resturaunt Standard Supplies Personal guarantee $40,219 Khawla Papkov Loan $30,000 Pawnee Leasing Corp. Personal guarantee $25,511 Khawla Papkou Loan $25,000 Paragon Productions Lawsuit $23,000 c/o West Christoffel & Zickerman City of Tucson Sales taxes $21,000 Luis Duarte Loan $20,500 Reward Systems Services $20,000 Maria Canizales Loan $17,000 Maria Cahizalez Loan $16,000 Claro Cahizalez Gregory D'Antonio Personal guarantee $11,400 Luis Alas Loan $10,000 Arizona Dept. of Revenue Sales taxes $10,000 Monroe & McDonough Attorney fees $9,276 Arizona Keyboard Accep Corp. Personal guarantee $8,734 HSBC Credit card debt $8,027 JEFFERSON COUNTY: Bankers Involved in Swap Deals Under Probe ------------------------------------------------------------ The U.S. Securities and Exchange Commission and the Justice Department are now investigating bankers and officials involved in Jefferson County's swap agreements between 2001 and 2004, William Selway and Martin Z. Braun of Bloomberg News report. The SEC and Justice Department are probing whether the banks conspired nationwide to fix prices for derivatives, violating the Sherman Antitrust Act, the report stated, citing target letters sent to bank employees. The banks that helped Jefferson County arrange the deals are JPMorgan, Bank of America, Bear Stearns, and Lehman Brothers Holdings Inc. Bankers who worked for the banks could face criminal charges. The county has 13 interest-rate swap transactions with Bank of America, Bear Stearns Inc., JPMorgan Chase & Co. and Lehman Brothers. As reported by the Troubled Company Reporter on March 10, 2008, Jefferson County was in technical default in relation to its sewer debt. The county was unable to post $184 million in collateral on $5.4 billion of interest-rate swaps tied to the bonds. The collateral was required under the agreement after a series of downgrades on the debt. The Jefferson County Commission has for the third time secured an extension or the payment of a $53 million sewer debt until June 1. Jefferson County has $4.6 billion in overall debt, including $3.2 billion in sewer bonds. Two of the firms that guarantee to make the payments on Jefferson County's sewer bonds in the event of default were FGIC Corp. and XL Capital Assurance Inc. FGIC insured $1.56 billion of Jefferson County auction-rate securities, and XL Capital backed $397 million of the bonds. The Commission has voted to enter an agreement with Haskell, Slaughter, Young and Rediker to help the county find a way to avert a bankruptcy that stands to be the largest municipal bankruptcy in U.S. history. About Jefferson County Jefferson County was founded in 1819. It has its seat in Birmingham. It has a population of 660,000. It ended its 2006 fiscal year with a $42.6 million general fund balance, according to Standard & Poor's. Patrick Darby, a lawyer with the Birmingham firm of Bradley Arant Rose & White, represents Jefferson County. Porter, White & Co. in Birmingham is the county's financial adviser. * * * As reported by the TCR on March 28, 2008, Moody's Investors Service downgraded to Caa3 from B3 the rating on the $3.2 billion outstanding sewer revenue warrants. Moody's said the county has not presented a concrete plan that would prevent a default on its sewer obligations. The county has publicly proposed using excess funds generated by a countywide 1% sales and use tax, currently securing the outstanding school warrants. The tax generated an additional $27 million in fiscal 2007 over the school warrant debt service; the initial intention was to use the excess for early redemption of debt. This proposal would require state legislation and it is unclear that the additional funds would provide enough revenue to cover the county's sewer obligations. As reported by the TCR on April 2, 2008, Standard & Poor's Ratings Services lowered its underlying rating on Jefferson County's series 2003 B-2 through 2003 B-7 sewer revenue refunding warrants to 'D' from 'CCC' due to the sewer system's failure to make a principal payment on the warrants when due on April 1, 2008, in accordance with the terms of the standby warrant purchase agreement. As reported by the TCR on April 10, 2008, Moody's Investors Service downgraded the rating on $800,000 of outstanding Jefferson County Assisted Housing Corporation, First Mortgage Refunding Housing Revenue Bonds (Spring Gardens Project) Series 1999 to Ba2 from Baa1. The outlook has been revised to negative from stable. The downgrade is based on a significant decline in debt service coverage, resulting from an increase in property expenses and a lack of rental rate increases. JHCI ACQUISITION: S&P Places 'B' Rating Under Negative CreditWatch ------------------------------------------------------------------ Standard & Poor's Ratings Services placed its ratings, including the 'B' long-term corporate credit rating, on JHCI Acquisition Corp on CreditWatch with negative implications. "The CreditWatch placement reflects heightened concerns over the third-party logistics company's constrained liquidity position," said Standard & Poor's credit analyst Anita Ogbara. Currently, JHCI does not have access to its $30 million revolver. As of March 31, 2008, the company was not in compliance with its total leverage covenant; however, it is not required to comply because there are no borrowings under the revolving credit facility. At the same time, Standard & Poor's placed the 'B+' rating on JHCI's $460 million senior secured credit facility on CreditWatch with negative implications. JHCI offers various third-party logistics services, including warehousing (accounting for a majority of revenues), freight management, packaging and manufacturing, transportation and brokerage, and staffing. S&P will assess the company's operating prospects and liquidity in resolving the CreditWatch. S&P could lower ratings if it appears that financial performance is unlikely to improve over the next several quarters, or if the liquidity position deteriorates further. JOHN H. BUXELL: Case Summary & 20 Largest Unsecured Creditors ------------------------------------------------------------- Debtors: John H. Buxell aka Jack Buxell Jane D. Buxell 260 Maiden Lane St. Paul, MN 55102 Bankruptcy Case No.: 08-32049 Chapter 11 Petition Date: April 29, 2008 Court: District of Minnesota (St Paul) Judge: Gregory F. Kishel Debtors' Counsel: Ralph Mitchell, Esq. Lapp Libra Thomson Stoebner & Pusch One Financial Plaza Ste 2500 120 S 6th St Mpls, Mn 55402 Tel: 612-338-5815 e-mail: rmitchell@lapplibra.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtors' petition and list of their 20 largest unsecured creditors is available for free at: http://bankrupt.com/misc/mnb08-32049.pdf JOHN T. DRISCOLL: Case Summary & 13 Largest Unsecured Creditors --------------------------------------------------------------- Debtors: John T Driscoll Monique M Driscoll 3099 Venezia Terrace Chino Hills, CA 91709 Bankruptcy Case No.: 08-15144 Chapter 11 Petition Date: May 5, 2008 Court: Central District Of California (Riverside) Judge: Meredith A. Jury Debtors' Counsel: Warren G Enright, Esq. 25219 Terreno Dr Mission Viejo, CA 92961 Tel: 949-419-6895 Fax: 949-419-6875 e-mail: enrightlawcenter@gmail.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Debtors' petition and list of their 13 largest unsecured creditors is available for free at: http://bankrupt.com/misc/cacb08-15144.pdf JOSE RUSSE: Case Summary & 10 Largest Unsecured Creditors --------------------------------------------------------- Debtors: Jose Ramon Marrero Russe aka Chemon Marrero aka Dr. Jose Ramon Marrero Russe Sylvia Martinez Collazo PO Box 8928 Humacao, PR 00792 Bankruptcy Case No.: 08-02599-11 Chapter 11 Petition Date: April 28, 2008 Court: District of Puerto Rico (Old San Juan) Debtors' Counsel: Victor Gratacos Diaz, Esq. PO BOX 7571 Caguas, PR 00726 Tel: 787 746-4772 e-mail: vgratacd@coqui.net Total Assets: $1,272,664 Total Debts: $1,414,199 A copy of the Debtors' petition and list of their 10 largest unsecured creditors is available for free at: http://bankrupt.com/misc/prb08-02599-11.pdf JOSEPH T. BUBONIC: Case Summary & 2 Largest Unsecured Creditors --------------------------------------------------------------- Debtors: Joseph Thomas Bubonic Mary Bubonic 22 Rue St. Cloud Newport Beach, CA 92660 Bankruptcy Case No.: 08-12189 Chapter 11 Petition Date: April 28, 2008 Court: Central District Of California (Santa Ana) Judge: Theodor Albert Debtors' Counsel: Robert P Goe, Esq. Goe & Forsythe, LLP 660 Newport Center Drive, Suite 320 Newport Beach, CA 92660 Tel: (949) 467-3780 Fax: (949) 721-0409 e-mail: kmurphy@goeforlaw.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtors' two largest unsecured creditors are: Entity Nature of Claim Claim Amount ------ --------------- ------------ American Express Travel Relate Judgment $25,000 c/o Berke & Associates 555 St. Charles Drive #100 Thousand Oaks, CA 91360 Internal Revenue Service $3,900 PO Box 21126 Philadelphia, PA 19114 JOSEPH F. CONNERS: Voluntary Chapter 11 Case Summary ---------------------------------------------------- Debtor: Joseph F. Conners aka Joe F. Conners 2819 Powells Valley Road Halifax, PA 17032 Bankruptcy Case No.: 08-01564 Chapter 11 Petition Date: April 29, 2008 Court: Middle District of Pennsylvania (Harrisburg) Judge: Mary D. France Debtor's Counsel: Robert E. Chernicoff, Esq. Cunningham and Chernicoff PC 2320 North Second Street Harrisburg, PA 17110 Tel: 717 238-6570 Fax: 717 238-4809 e-mail: rec@cclawpc.com Estimated Assets: $10,000,001 to $50,000,000 Estimated Debts: $10,000,001 to $50,000,000 The Debtor did not file a list of its largest unsecured creditors. JUSTIN BUNNELL: Case Summary & Largest Unsecured Creditor --------------------------------------------------------- Debtor: Justin M Bunnell 10757 Oregon Avenue Culver City, CA 90232 Bankruptcy Case No.: 08-15938 Chapter 11 Petition Date: May 1, 2008 Court: Central District Of California (Los Angeles) Judge: Thomas B. Donovan Debtor's Counsel: Wayne A Silver, Esq. 333 W El Camino Real Ste 310 Sunnyvale, CA 94087 Tel: 408-720-7007 Fax: 408-720-7001 e-mail: w_silver@sbcglobal.net Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $100,000,001 to $500,000,000 Debtor's largest unsecured creditor: Entity Nature of Claim Claim Amount ------ --------------- ------------ Citi Cards Credit card purchases $500 PO Box 6000 The Lakes, NV 89163 JUSTIN DAVIS ENTERPRISES: Voluntary Chapter 11 Case Summary ----------------------------------------------------------- Debtor: Justin Davis Enterprises, Inc. 151 S.E. Lakeshore Dr. Madison, FL 32340 Bankruptcy Case No.: 08-06468 Chapter 11 Petition Date: May 6, 2008 Court: Middle District of Florida (Tampa) Debtor's Counsel: Daniel R. Fogarty, Esq. Stichter, Riedel, Blain & Prosser, PA 110 East Madison Street, Suite 200 Tampa, FL 33602 Tel: (813) 229-0144 e-mail: dfogarty.ecf@srbp.com Estimated Assets: $1,000,001 to $10,000,000 Estimated Debts: $1,000,001 to $10,000,000 The Debtor did not file a list of its largest unsecured creditors. KINGSLEY CAPITAL: Case Summary & Nine Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Kingsley Capital, Inc. 3773 Cherry Creek Dr. N., Ste. 575 Denver, CO 80209 Bankruptcy Case No.: 08-17152 Chapter 11 Petition Date: May 23, 2008 Court: District of Colorado (Denver) Judge: Michael E. Romero Debtor's Counsel: Christian C. Onsager, Esq. Onsager, Staelin & Guyerson, LLC 1873 S. Bellaire St., Ste. 1401 Denver, CO 80222 Tel: (303) 512-1123 Email: consager@comcast.net Estimated Assets: $10 million to $50 million Estimated Debts: $1 million to $10 million Debtor's Nine Largest Unsecured Creditors: Entity Claim Amount ------ ------------ Bloom, Murr & Accomazzo, PC $66,000.00 410 17th St., Ste. 2400 Denver, CO 80202-4436 Accord Associates $43,441 8792 Mourning Dove Ln. Highlands Ranch, CO 80126 Attn: H.A. Lowe & Associates 2200 Market St., Ste. 701 Denver, CO 80205 Hatch Jacobs, LLC $42,458 Attn: Robert Hatch 950 Seventeenth St., Ste. 1700 Denver, CO 80202 Key Bank $20,000 P.O. Box 5278 Boise, ID 83705-0278 Attn: Bus Bkg. Express Lending Ctr. Pat. P.O. BOX 94831 Cleveland, OH 44101-4831 Raines Law Group $10,289 8447 Wilshire Blvd., Ste. 450 Beverly Hills, CA 90211 Lindquist & Vennum, PLLP $7,707 Attn: J. Smiley 600 17th St., Ste. 1800 S. Denver, CO 80202-5441 Tel: (303) 573-5900 Janice Jones $5,000 3773 Cherry Creek Dr. N., Ste. 575 Denver, CO 80209 OTR $3,579 1000 SW Broadway, Ste. 920 Portland, OR 97205 Attn: Allen Stokes, Jr. 1776 South Jackson St., Ste. 900 Denver, CO 80210-3808 Allen Velone $1,861 1600 Stout St. Denver, CO 80202 LIBERTY MUTUAL: A.M. Best Puts 'bb+' Rating on $1.25BB Debentures ----------------------------------------------------------------- A.M. Best Co. has assigned a debt rating of "bb+" to the forthcoming issuance of $1.25 billion Series C 10.75% junior subordinated debentures of Liberty Mutual Group, Inc. The debentures have a scheduled maturity of 50 years. The anticipated settlement date is May 29, 2008. The outlook for the rating is stable. Proceeds from the offering will be used to strengthen capitalization in preparation for LMGI's previously announced intent to acquire Safeco Corporation. LIFE SCIENCES: Five Directors Re-elected at Shareholders Meeting ---------------------------------------------------------------- Mark L. Bibi, Secretary and General Counsel of Life Sciences Research, Inc., disclosed in a regulatory filing with the U.S. Securities and Exchange Commission that at the Company's Annual Meeting of Stockholders held on May 21, 2008, stockholders voted to re-elect for a one-year term five directors proposed by the Company. The annual stockholders' meeting was held at 53 Street, Urbanizacion Obarrio, in Panama, Republic of Panama. The elected directors are: (a) Andrew Baker, 59, who was appointed to the Huntingdon Life Sciences Group plc Board as Executive Chairman in September 1998 in connection with his leadership of a rescue plan for Huntingdon. He became a Director and Chairman and CEO of LSR on January 10, 2002. (b) Gabor Balthazar, 66, who was appointed to the Huntingdon Board as the Senior Independent Non-Executive Director in March 2000. He became a director of LSR on January 10, 2002. Mr. Balthazar serves on the Audit Committee as Chairman, Compensation Committee as Chairman, and Nominating and Corporate Governance Committee. (c) Brian Cass, FCMA, CBE, 60, who was appointed to the Huntingdon Board as Managing Director/Chief Operating Officer in September 1998 and became a Director and President and Managing Director of LSR on January 10, 2002. (d) Afonso Junqueiras, 51, who became a director of LSR on January 15, 2003. Mr. Junqueiras serves on the Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee. (e) Yaya Sesay, 65, who became a director of LSR on January 10, 2003. He serves on the Audit Committee, Compensation Committee and Nominating and Corporate Governance Committee as Chairman. About Life Sciences Headquartered in East Millstone, New Jersey, Life Sciences Research Inc. (NYSE Arca: LSR) -- http://www.lsrinc.net/-- is a global contract research organization providing product development services to the pharmaceutical, agrochemical and biotechnology industries. LSR operates research facilities in the United States and the United Kingdom. * * * As reported by the Troubled Company Reporter on May 5, 2008, Life Sciences Research Inc.'s consolidated balance sheet at March 31, 2008, showed $198.6 million in total assets and $220.4 million in total liabilities, resulting in a $21.8 million total stockholders' deficit. L TERSIGNI: Court Appoints Hugh Ray as Examiner to Probe Firm ------------------------------------------------------------- The Hon. Alan H.W. Schiff of the U.S. Bankruptcy Court for the District of Connecticut approved the appointment of Hugh M. Ray a partner with Andrews Kurth, as the Examiner to investigate the billing practices and related conduct of L. Tersigni Consulting, CPA, P.C. As reported in the Troubled Company Reporter on. Jan. 28, 2008, Judge Schiff has directed the inquiry to investigate "any fraud, dishonesty, incompetence or gross mismanagement of the affairs" of L. Tersigni by its management. The company's founder, Loreto Tersigni, died in May of 2007. Employees of the firm had notified federal authorities of possible billing discrepancies. Mr. Ray co-chairs the national bankruptcy practice of Andrews Kurth and has represented creditors, debtors, lenders and bondholders in a number of major corporate bankruptcies. He has testified several times before Congress, including the House Judiciary Committee and the Senate Judiciary Committee concerning proposed amendments to the Federal Bankruptcy Code. He chaired the American Bar Association's Business Bankruptcy Committee and was a member of the Standing Committee on Judicial Selection, Tenure and Compensation. Mr. Ray also co-authored the book, Bankruptcy Investing, now in its fourth edition. About L. Tersigni Based in Stamford, Connecticut, L. Tersigni Consulting CPA, P.C. was engaged in the business of accounting and financial advisor to various constituencies in matters relating to claims asserted primarily in asbestos litigation and asbestos related bankruptcy cases. The company filed for chapter 11 protection on Nov. 14, 2007 (Bankr. D. Conn. Case No. 07-50702). Carol A. Felicetta, Esq., at Reid and Riege, P.C., represents the Debtor in its restructuring efforts. No Official Committee of Unsecured Creditors has been appointed in this case to date. The Debtor's schedules listed total assets of $2,229,659 and total debts of $246,564. The U.S. Justice Department's Office of the U.S. Trustee has named Hugh M. Ray, a partner with Andrews Kurth, as the Examiner to investigate the billing practices and related conduct of L. Tersigni Consulting. LINENS N THINGS: Section 341(a) Meeting Scheduled for June 10 ------------------------------------------------------------- Roberta A. DeAngelis, the acting United States Trustee for Region 3, will convene a meeting of the creditors of Linens 'n Things and its debtor-affiliates on June 10, 2008, at 11:00 a.m. The meeting will be held at Room 2112 in the 2nd Floor of J. Caleb Boggs Federal Building, 844 King Street, in Wilmington, Delaware. This is the first meeting of creditors required under Sec. 341(a) of the Bankruptcy Code in all bankruptcy cases. All creditors are invited, but not required, to attend. This Meeting of Creditors offers the one opportunity in a bankruptcy proceeding for creditors to question a responsible office of the Debtors under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Clifton, New Jersey-based Linens Holding Co., which does business through its operating subsidiary Linens 'N Things Inc.-- http://www.lnt.com/--is the second largest specialty retailer of home textiles, housewares and home accessories in North America operating 589 stores in 47 U.S. states and seven Canadian provinces as of December 29, 2007. The company is a destination retailer, offering one of the broadest and deepest selections of high quality brand-name well as private label home furnishings merchandise in the industry. Linens 'N Things and 11 affiliates filed separate voluntary petitions under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware on May 2, 2008 (Lead Case No. 08-10832). The Canadian operations are not included in the filings. Linens 'N Things has secured a $700 million debtor-in-possession financing from General Electric Capital Corp. The company plans to be out of chapter 11 by the end of the year, on this timetable: 09/14/2008 DIP Facility Deadline for Filing a Chapter 11 Plan 10/14/2008 DIP Facility Deadline for Disclosure Statement Approval 11/18/2008 DIP Facility Deadline for Soliciting Votes on Plan 11/28/2008 DIP Facility Deadline for Entry of a Confirmation Order Linens 'N Things is represented by Richards, Layton & Finger, P.A., and Morgan, Lewis & Bockius LLP. Conway, Del Genio, Gries & Co., LLC will serve as the retailer's restructuring advisor until substantial consummation of a chapter 11 plan. Conway Del Genio's Michael F. Gries acts as the Debtors' chief restructuring officer and interim CEO. Kurtzman Carson Consultants LLC acts as the Debtors' claims agent. A Noteholder Committee has been formed and is represented by Kasowitz, Benson, Torres & Friedman LLP, and Pachulski Stang Ziehl & Jones. (Linens 'n Things Bankruptcy News, Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) MERRILL LYNCH: Names Doug Mallach to Liquidate Bad Assets --------------------------------------------------------- Merrill Lynch & Co. is appointing Doug Mallach, its top U.S. fixed-income sales executive, to a new role of liquidating assets that were spoiled by the subprime mortgage crisis, various reports say. Areas considered for purging have caused troubles at the brokerage and contributed in its chief executive's departure, The Wall Street Journal relates. Mr. Mallach, will be in charge of a team Merrill created to sell assets including collateralized debt obligations, the mortgage- related securities that caused most of the New York-based firm's $37 billion of writedowns over the past nine months, Bloomberg states citing a person familiar with the matter. The team, called FICC Asset Management and carved out of the fixed-income sales force that Mr. Mallach oversaw, reflects chief executive officer John Thain's focus on eradicating money-losing mortgage-related bonds accumulated under his ousted predecessor, Stan O'Neal, Bloomberg notes. The mortgage market has been frozen since 2007, thwarting a pledge Mr. Thain made in January to liquidate the assets, reports state. According to reports citing David Sobotka, global head of Merrill's fixed-income, currencies and commodities business, Mr. Mallach's appointment is part of the company's ongoing effort to optimize its asset and risk profile. Mr. Sobotka will assume Mr. Mallach's sales-management duties, reports indicate. About Merrill Lynch Merrill Lynch & Co. Inc. -- http://www.ml.com/-- is a wealth management, capital markets and advisory companies with offices in 40 countries and territories and total client assets of approximately $1.6 trillion. As an investment bank, it is a leading global trader and underwriter of securities and derivatives across a broad range of asset classes and serves as a strategic advisor to corporations, governments, institutions and individuals worldwide. Merrill Lynch owns approximately half of BlackRock, one of the world's largest publicly traded investment management companies with more than $1 trillion in assets under management. MIRANT CORP: AER-Alliance Lawsuit Denied Over Litigation Expenses ----------------------------------------------------------------- The United States Bankruptcy Court for the Northern District of Texas denied the request of AER NY-GEN, LLC and Alliance Energy Renewables, LLC to enforce the rights of AER NY-Gen under the Confirmation Order and Mirant Corp. and its debtor-affiliates' Plan of Reorganization; and, sustained the Alliance Entities' Objection which was filed under seal. The Court stated that the Membership Interest Purchase and Sale Agreement does not require Mirant New York to pay the costs of the Barrett Litigation, including whatever amounts may be required to obtain public access to the Reservoir via the Easement or otherwise. Prior to the ruling, Alliance argued that Mirant New York agreed in the PSA to ensure that Mirant NY-Gen, LLC's assets were as free and clear of liens, claims, encumbrances and interests as they would have been had Alliance acquired the assets through a sale under Section 363 of the Bankruptcy Code. Alliance reasoned out that Mirant New York's obligation under these provisions ran to ensure that the easement satisfied the license-related requirements of the Federal Energy Regulatory Commission. However, the Court pointed out that Alliance misperceives the power given a bankruptcy court by Section 363, which is limited to "cleansing" what a debtor owns from the claims, encumbrances and charges of third parties that are quantified as claims under Section 101(5) or 102(2) of the Bankruptcy Code. Neither Section 363 nor any other provision of the Bankruptcy Code gives the Bankruptcy Court the power to enhance or improve whatever ownership interest was held by the debtor prepetition that became property of the estate, the Court maintained. The Court cannot convert rights of Woodstone Lakes Development, LLC, Woodstone Toronto Development, LLC, and Woodstone Crestwood Development, LLC, into a claim since they are not creditors, the Court asserted. Whatever Woodstone's assertions regarding its rights respecting the easement do not amount to a "charge against or interest in property to secure payment of a debt or performance of an obligation," the Court noted. Because Woodstone's claims against NY Gen in a Barrett Litigation do not secure a debt or an obligation to perform, Woodstone cannot be asserting a lien. Moreover, Woodstone's claims against Mirant NY-Gen in the Barrett Litigation assert no right to payment and do not seek any performance from Mirant NY-Gen, the Court stated. Thus, Woodstone is not asserting a "claim" against Mirant NY-Gen in the Barrett Litigation. In the Barrett Litigation, Woodstone, in fact, is asserting its ownership interest as against a claim by Mirant NY-Gen that would limit that ownership interest, the Court said. Moreover, Woodstone's claims do not attach to Mirant NY-Gen's property. Rather, the issue posed in the Barrett Litigation is the extent to which Mirant NY-Gen's rights encumber Woodstone's property. Clearly, Woodstone is not asserting an "encumbrance" against Mirant NY-Gen's property, the Court stated. Woodstone claims no interest in the Easement, the Court noted. Rather, the easement is a burden on Woodstone's fee, and Woodstone seeks in the Barrett Litigation to determine only the extent of that burden, the Court averred. It is counter- intuitive to suggest that authority to sell property free of interests includes the ability to sell an interest in real property free of the underlying fee holder's ownership rights, the Court concluded. About Mirant Headquartered in Atlanta, Georgia, Mirant Corporation (NYSE: MIR) -- http://www.mirant.com/-- is an energy company that produces and sells electricity in North America, the Caribbean, and the Philippines. Mirant's investments in the Caribbean include three integrated utilities and assets in Jamaica, Grand Bahama, Trinidad and Tobago and Curacao. Mirant owns or leases more than 18,000 megawatts of electric generating capacity globally. Mirant Corporation filed for chapter 11 protection on July 14, 2003 (Bankr. N.D. Tex. 03-46590), and emerged under the terms of a confirmed Second Amended Plan on Jan. 3, 2006. thomas E. Lauria, Esq., at White & Case LLP, represented the Debtors in their successful restructuring. When the Debtors filed for protection from their creditors, they listed US$20,574,000,000 in assets and US$11,401,000,000 in debts. The Debtors emerged from bankruptcy on Jan. 3, 2006. On March 7, 2007, the Court entered a final decree closing 46 Mirant cases. Mirant NY-Gen LLC, Mirant Bowline LLC, Mirant Lovett LLC, Mirant New York Inc., and Hudson Valley Gas Corporation, were not included. On Feb. 15, 2007, Mirant NY-Gen filed its Chapter 11 Plan of Reorganization and on Feb. 22 filed a Disclosure Statement explaining that Plan. The Court approved the adequacy of Mirant NY-Gen's Disclosure Statement on March 22, 2007, and confirmed the Amended Plan on May 7, 2007. Mirant NY-Gen emerged from chapter 11 on May 7, 2007. On July 13, 2007, Mirant Lovett filed its Chapter 11 Plan of Reorganization. The Court confirmed Mirant Lovett's Plan on Sept. 19, 2007. Mirant Lovett emerged from bankruptcy on Oct. 2, 2007. (Mirant Bankruptcy News, Issue No. 138; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) * * * As reported in the Troubled Company Reporter on Dec. 26, 2007, Moody's Investors Service upgraded the ratings of Mirant Corporation (Mirant: Corporate Family Rating to B1 from B2) and its subsidiaries Mirant Mid-Atlantic, LLC (MIRMA: pass through trust certificates to Ba1 from Ba2), Mirant North America, LLC (MNA: senior unsecured to B1 from B2 and senior secured to Ba2 from Ba3) and Mirant Americas Generation, LLC (MAG: senior unsecured to B3 from Caa1). Additionally, Mirant's Speculative Grade Liquidity (SGL) rating was revised to SGL-1 from SGL-2. The rating outlook is stable for Mirant, MNA, MAG, and MIRMA. MONTE CARLO: Case Summary & 20 Largest Unsecured Creditors ---------------------------------------------------------- Debtor: Monte Carlo Group, Inc. 575 Anton Blvd., Ste. 820 Costa Mesa, CA 92626 Bankruptcy Case No.: 08-12854 Chapter 11 Petition Date: May 23, 2008 Court: Central District Of California (Santa Ana) Judge: Theodor Albert Debtor's Counsel: Marc J. Winthrop, Esq. E-mail: pj@winthropcouchot.com Peter W. Lianides, Esq. E-mail: pj@winthropcouchot.com 660 Newport Ctr. Dr. Ste. 400 Newport Beach, CA 92660 Tel: (949) 720-4100 Fax: (949) 720-4111 Estimated Assets: $10 million to $50 million Estimated Debts: $10 million to $50 million Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Legacy Drywall, Inc. trade debt $100,000 Attn: Manuel-Owner/Mike Chapman-Attorney 1253 Enterprises Ct. Corona, CA 92885 Guy Evans trade debt $83,000 Attn: Julie Glendine P.O. Box 10630 Indio, CA 92202 CLM Production trade debt $64,156 Attn: Angelique Ryan Timpson 41655 Reagan Way, Ste. J Murrieta, CA 92562 General Electric Co. trade debt $35,000 General Security Services trade debt $34,000 Gateway Concrete trade debt $30,322 Precision Painting trade debt $29,500 Inland Erosion Cont trade debt $19,034 Group 7 trade debt $18,675 Kastle Star, Inc. trade debt $16,409 Vintage Design trade debt $15,000 Integrity Windows trade debt $14,988 Caxcan, Inc. trade debt $14,000 The Press-Enterprise trade debt $12,738 Randy Bogs Masonry trade debt $12,236 Mays Masonry trade debt $12,000 Victor Valley Synthetic trade debt $9,908 Preferred Telecom trade debt $9,000 CR&R, Inc. trade debt $8,606 Top Notch Cleaning trade debt $7,772 NEW YORK HEALTH: March 31 Balance Sheet Upside-Down by $2,759,357 ----------------------------------------------------------------- New York Health Care Inc.'s consolidated balance sheet at March 31, 2008, showed $13,258,031 in total assets and $16,017,388 in total liabilities, resulting in a $2,759,357 total stockholders' deficit. At March 31, 2008, the company's consolidated balance sheet also showed strained liquidity with $11,679,263 in total current assets available to pay $16,017,388 in total current liabilities. The company reported net income of $71,110, on net patient service revenue of $11,021,811, for the first quarter ended March 31, 2008, compared with a net loss of $329,696, on net patient service revenue of $11,184,902, in the same period last year. The net income of $71,110 for the three months ended March 31, 2008, includes net income of $226,377 from the operations of the home health care segment and offset by a net loss of $155,267 from the BioBalance segment, which to date has not generated any revenue. The net loss of $329,696 for the three months ended March 31, 2007, includes net income of $357,198 from the operations of the home health care segment and offset by a net loss of $686,894 from the BioBalance segment, which to date has not generated any revenue. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2c78 Going Concern Disclaimer Holtz Rubenstein Reminick LLP, in New York, expressed substantial doubt about New York Health Care Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm pointed to the company's losses and negative working capital. About New York Health Headquartered in Brooklyn, N.Y., New York Health Care Inc. (OTC BB: BBAL.OB) -- is currently engaged in two industry segments, the delivery of home healthcare services and the development of proprietary biotherapeutic agents for the treatment of various gastrointestinal disorders, through its acquisition of BioBalance. ONONDAGA COUNTY: S&P Chips Bond Rating to BB- on Weak Financial --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on Onondaga County Industrial Development Agency, N.Y.'s series 1993B and 1998 bonds, issued for Community General Hospital of Greater Syracuse, to 'BB-' from 'BB', reflecting continued weak financial performance, lower volumes, and thin liquidity The downgrade specifically reflects operating results that were expected to improve in 2007, but ended measurably worse than projected due largely to costs related to a state-mandated nursing home consolidation and shortages in certain nursing specialties. In addition, the hospital reports weak obstetric and newborn volume trends in 2008 related to physician departures; however, other volumes, including the important orthopedic service line are doing well. Thin liquidity, due to large pension contributions, particularly in 2007 was also reported by CGH, although liquidity has stabilized. The hospital has spent limited amounts on capital for the past several years and its age of plant now exceeds 17 years, so as pension contributions abate, they will probably be replaced by growing capital needs. "The stable outlook reflects that liquidity and operations are stabilizing, albeit at weak levels reflective of the 'BB-' rating," said Standard & Poor's credit analyst Liz Sweeney. "Also lending stability to the rating are CGH's low debt and relatively short maturity of the debt," added Ms. Sweeney. S&P do not expect operations to improve measurably in the next year or two, as recruitment for the gaps in the obstetric service lines is expected to take some time to provide a positive effect on operations. However, the sizable pension contribution of 2007 is behind them, with future contributions expected to be measurably lower, and debt service is declining annually, both of which should serve to preserve liquidity. In addition, CGH expects to receive the funds needed for a sizable renovation from state moneys related to the nursing home closure, allowing CGH to expand their private-room mix without affecting their own liquidity. Support for the 'BB-' rating, includes CGH's low debt level, with only $9.9 million of long-term debt, all of which matures within 10 years, and a significant drop in debt service in 2008 resulting from a bond issue that matured in 2007. Also supporting the rating are the successful orthopedic service line, which experienced 25% volume growth in 2007, and management's recruitment efforts to replace departed physicians and increase the medical staff. ORBITZ WORLDWIDE: S&P Revises Outlook to Neg. and Holds All Rtngs. ------------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on Orbitz Worldwide Inc. to negative from stable. All ratings, including the 'B' corporate credit rating, were affirmed. "The outlook revision is based on the negative rating outlook on Orbitz's partial owner, Travelport Holdings Ltd.," said Standard & Poor's credit analyst Betsy Snyder. Although Travelport reduced its stake in Orbitz in late 2007 and deconsolidated Orbitz's financial results from its own at that time, Travelport and affiliates of the Blackstone Group, one of Travelport's owners, still own 55.5% of Orbitz common stock (a controlling stake). "In addition, we are concerned about weaker demand beginning in the second half of 2008 caused by a slowing global economy, which could negatively affect the company's bookings," the analyst continued. This will hurt the company's earnings and cash flow, delaying expected debt reduction. Ratings on Orbitz Worldwide Inc. reflect the controlling stake in the company held by Travelport and affiliates of the Blackstone Group, one of the owners of Travelport Holdings Ltd.; an aggressive financial profile; and the seasonal and cyclical nature of the travel industry. Ratings also incorporate the company's major position in on-line travel distribution and the strong cash flow this business typically generates. On July 25, 2007, Orbitz completed an IPO, which generated $475 million of net proceeds, and closed on a $685 million secured credit facility. Most of the proceeds from these financings were used to reduce Travelport's debt. From the date of the IPO through January 2008, Travelport continued to own approximately 59% of Orbitz. In January, it divested a portion of its stake so that it no longer owns a controlling interest (just under 50%). However, the shares were transferred to affiliates of the Blackstone Group, one of Travelport's owners, which now own a 55.5% stake. Orbitz is a leading on-line consumer travel distributor, which consists of a diverse group of brands that include Orbitz, Cheap Tickets, ebookers, and several others. Orbitz is a major full- service U.S. on-line travel agency. Cheap Tickets is an on-line travel agency focusing on price-sensitive travelers. Ebookers is a U.K.-based European on-line and off-line travel agency. Approximately 77% of consolidated revenues are generated in the U.S., with significant growth opportunities outside the U.S. and in the corporate on-line travel sector. In the U.S. on-line sector, Orbitz is the second-largest company, behind Expedia and ahead of Travelocity (a unit of Sabre Holdings Corp.). However, outside the U.S., its market position is significantly weaker than those of market leader Expedia as well as Travelocity. Expected reduced travel demand, caused by a weaker global economy beginning in the second half of 2008, would likely negatively affect the company's earnings and cash flow, and delay significant improvement in its financial profile. Also, S&P could lower ratings if S&P were to lower its ratings on Travelport. S&P consider an outlook revision to stable unlikely until there are indications of a sustained growth in travel bookings. PLASTECH ENGINEERED: Roush Insists Entitlement to Molds ------------------------------------------------------- Roush Manufacturing, Inc. asserts its request to enforce its moldbuilders lien and recover molds at Plastech Engineered Products Inc.'s plants. As reported in the Troubled Company Reporter on April 3, 2008, Roush Manufacturing asked the U.S. Bankruptcy Court for the Eastern District of Michigan to lift the automatic stay to allow it to recover molds that Plastech and its debtor-affiliates use in the production of parts for particular vehicles manufactured by Chrysler LLC. Roush argues that its request should not be overruled based solely on its financing statement not bearing the Debtor's full exact legal name. "Michigan Mold Lien Act and not the Uniform Commercial Code is the controlling law in determining whether Roush's lien properly attached to the Molds," Stephen M. Gross, Esq., at McDonald Hopkins PLC, in Bloomfield Hills, Michigan, tells the Court. Mr. Gross says that the unduly burdensome requirement of precision in filing a financing statement pursuant to the Uniform Commercial Code, is increased, perhaps intentionally by the Debtors that regularly held itself out as "Plastech" in all correspondences with Roush, complicating efforts of the moldbuilder to comply with the U.C.C. "Notwithstanding the issue of whether recording a U.C.C. financing statement only under the name "Plastech" was sufficient to identify Roush's lien on property of the Debtors, the Act was developed to create and simplify the legal means by which a moldbuilder could protect itself," Mr. Gross tells the Court. He adds that it would be inequitable and would defeat the purpose of the Act to find Roush's lien on the Molds invalid because it used the trade name "Plastech", which is the name the Debtors consistently used in all of its communications and contracts with Roush. Mr. Gross relates that the Michigan Mold Act legislature did not intend to require moldbuilders to file financing statements with the exact legal name of the debtors. He notes the Debtors, which consist of numerous entities, always used the trade name of Plastech, even on their purchase orders. * * * General Motors Corporation has joined the objections to Roush's request. GM adopts the arguments raised by the Debtors and Chrysler LLC. About Plastech Engineered Based in Dearborn, Michigan, Plastech Engineered Products, Inc. -- http://www.plastecheng.com/-- is full-service automotive supplier of interior, exterior and underhood components. It designs and manufactures blow-molded and injection-molded plastic products primarily for the automotive industry. Plastech's products include automotive interior trim, underhood components, bumper and other exterior components, and cockpit modules. Plastech's major customers are General Motors, Ford Motor Company, and Toyota, as well as Johnson Controls, Inc. Plastech is a privately held company and is the largest family- owned company in the state of Michigan. The company is certified as a Minority Business Enterprise by the state of Michigan. Plastech maintains more than 35 manufacturing facilities in the midwestern and southern United States. The company's products are sold through an in-house sales force. The company and eight of its affiliates filed for Chapter 11 protection on Feb. 1, 2008 (Bankr. E.D. Mich. Lead Case No. 08- 42417). Gregg M. Galardi, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Deborah L. Fish, Esq., at Allard & Fish, P.C., represent the Debtors in their restructuring efforts. The Debtors chose Jones Day as their special corporate and litigation counsel. Lazard Freres & Co. LLC serves as the Debtors' investment bankers, while Conway, MacKenzie & Dunleavy provide financial advisory services. The Debtors also employed Donlin, Recano & Company as their claims and noticing agent. An Official Committee of Unsecured Creditors has been appointed in the Debtors' cases. As of Dec. 31, 2006, the company's books and records reflected assets totaling $729,000,000 and total liabilities of $695,000,000. (Plastech Bankruptcy News, Issue No. 21; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/ or 215/945-7000) PNM RESOURCES: Moody's Confirms Ba2 Senior Unsecured Ratings ------------------------------------------------------------ New York, May 23, 2008 -- Moody's Investors Service confirmed the long-term and short-term ratings of PNM Resources, Inc. (PNMR: senior unsecured Ba2, short-term NP) and its subsidiary Public Service Company of New Mexico (PNM: senior unsecured Baa3, short- term P-3) concluding the review for downgrade that continued following their respective downgrades on April 25, 2008. The outlook for PNMR and its subsidiaries, PNM and Texas-New Mexico Power (TNMP: senior unsecured Baa3) is negative. The ratings confirmation follows a decision by the New Mexico Public Regulation Commission (NMPRC) to authorize an emergency fuel and purchased power cost adjustment clause (FPPCAC) that will likely remain in place until PNM's next rate case decision. PNM estimates the emergency FPPCAC will generate an additional $58-62 million of annual revenues. The emergency FPPCAC factor will be in place for 24 months or until rates go into effect after PNM's next rate case; will have a hard cap; will be reset every six months; will incorporate a minimum capacity factor for core base load facilities; and will be subject to a fuel cost audit with a specific emphasis on coal costs. PNM will likely apply for a permanent fuel clause in conjunction with its next general rate case filing, which is anticipated to be made during the third quarter of 2008 with rates expected to be implemented no later than the third quarter of 2009. "As a result of the NMPRC's recent base rate and FPPCAC decisions, our anticipation of PNM's return to more normal levels of operating performance, and assuming additional levels of future rate relief, Moody's believes that credit metrics for PNM could remain in a range appropriate for utilities rated Baa3," said Laura Schumacher, Vice President - Senior Analyst of Moody's. "The NMPRC's decision to allow PNM to implement an emergency FPPCAC is expected to result in a significant improvement in PNM's near term cash flow," said Ms. Schumacher. Although, the emergency FPPCAC is only a temporary measure and includes a hard cap above which costs may not be recovered, management anticipates that they will be able to manage within the cap for the coming year. We also expect that PNM will file its next rate case very quickly. The rating confirmation also reflects our assumption of expected debt reduction associated with the anticipated sale of PNM's gas operations and the improved liquidity positions of PNM and PNMR as a result of their recent issuance of long-term financing and renewed availability under their credit facilities. The negative outlooks for PNM and PNMR reflect the fact that PNM's financial performance remains highly dependent on continued regulatory support, and the fact that there is little financial "cushion" to protect against unanticipated operational issues, cost increases or extended periods between rate increases. The negative outlook for TNMP reflects financial credit metrics that have weakened since its 2005 acquisition by PNMR, and also reflects its position as a subsidiary of PNMR. TNMP is expected to file for a rate increase in Texas in the third quarter of 2008. Headquartered in Albuquerque, New Mexico, PNMR is a holding company which has as its primary subsidiaries, PNM, TNMP and First Choice Power, a Texas retail energy provider. PNMR also owns a 50% interest in EnergyCo, LLC through which PNMR conducts unregulated energy operations in the Southwest. Outlook Actions: * Issuer: PNM Resources, Inc. -- Outlook, Changed To Negative From Rating Under Review * Issuer: Public Service Company of New Mexico -- Outlook, Changed To Negative From Rating Under Review Confirmations: * Issuer: PNM Resources, Inc. -- Senior Unsecured Bank Credit Facility, Confirmed at Ba2 -- Senior Unsecured Regular Bond/Debenture, Confirmed at Ba2 -- Multiple Seniority Shelf: Preferred Stock Confirmed at (P)B1; Senior Unsecured Confirmed at (P)Ba2 * Issuer: Public Service Company of New Mexico -- Issuer Rating, Confirmed at Baa3 -- Senior Unsecured Bank Credit Facility, Confirmed at Baa3 -- Senior Unsecured Regular Bond/Debenture, Confirmed at Baa3 -- Preferred Stock Preferred Stock, Confirmed at Ba2 -- Commercial Paper, Confirmed at P-3 -- Senior Unsecured Shelf, Confirmed at (P)Baa3 PRC LLC: Wants to Employ Grant Thornton as Accountants ------------------------------------------------------ PRC LLC and its debtor-affiliates ask authority from the U.S. Bankruptcy Court for the Southern District of Florida to employ Grant Thornton LLP, as their auditors and accountants, nunc pro tunc to May 9, 2008. As auditors and accountants to the Debtors, Grant Thornton is expected to: (i) conduct an audit of the Debtors' consolidated financial statements as of Dec. 31, 2007; (ii) review certain of the Debtors' federal and state tax returns for the year ended Dec. 31, 2007; and (iii) perform other services as the Debtors and Grant Thornton may agree on. Alfredo R. Perez, Esq., at Weil, Gotshal & Manges LLP, in Houston, Texas, tells the Court that the Debtors have been advised by Grant Thornton that it will endeavor to coordinate with the other professionals retained in these Chapter 11 cases to eliminate unnecessary duplication or overlap of work. In connection with the Grant Thornton retention, the Debtors relate that they will incur certain cost for transitioning relevant documents and services from the their previous auditors, Ernst & Young LLP, to Grant Thornton. The Debtors anticipate that the Transition Costs will not exceed $10,000. Accordingly, the Debtors seek the Court's authority to pay Ernst and Young for any reasonable Transition Costs. Mr. Perez says that the employment of Grant Thornton, under a retainer and pursuant to the terms of engagement letters dated April 28, 2008 and May 9, 2008, are appropriate and necessary to enable the Debtors to execute faithfully their duties as debtors in possession and to implement their restructuring and reorganization. The Debtors relates that Grant Thornton requires from the Debtors a $50,000 retainer of $50,000 prior to commencement of the contemplated audit services and a $7,500 retainer prior to the commencement of the contemplated accounting services. Grant Thornton's services will be paid according to the firm's hourly rates, which are: Professional Hourly Rates ------------ ------------ Partners/Principals/Directors $470 to $515 Senior Managers $385 to $425 Managers $285 to $335 Senior Associates $210 to $240 Associates $170 to $190 Para-Professionals $120 With respect to the Audit Services, Grant Thornton has agreed to discount its hourly billing rates to approximate a blended rate of $196 per hour and the Accounting Services to approximate a blended rate of $256 per hour. Grant Thornton will seek reimbursement for reasonable out-of- pocket expenses. Circo Buttacavoli, a partner of Grant Thornton LLP, assures the Court that his firm a "disinterested person," as that term is defined in Section 101(14) of the Bankruptcy Code, as modified by Section 1107(b) of the Bankruptcy Code. About PRC LLC Founded in 1982 and based in Fort Lauderdale, Florida, PRC, LLC -- http://www.prcnet.com/-- is a leading provider of customer management solutions. PRC markets its services to brand-focused, Fortune 500 U.S. corporations and delivers these services through a global network of call centers in the U.S., Philippines, India, and the Dominican Republic. PRC is the sole member of each of PRC B2B, LLC, and Precision Response of Pennsylvania, LLC, and the sole shareholder of Access Direct Telemarketing, Inc., each of which is a debtor and debtor- in-possession in PRC's joint Chapter 11 cases. Panther/DCP Intermediate Holdings, LLC, is the sole member of PRC. PRC, together with its operating subsidiaries PRC B2B, Access Direct, and PRC PA, is a leading provider of complex, consultative, outsourced services in the Customer Care and Sales & Marketing segments of the business process outsourcing industry. Since 1982, the company has acquired and grown customer relationships for some of the world's largest and most brand-focused corporations in the financial services, media, telecommunications, transportation, and retail industries. The company and four of its affiliates filed for Chapter 11 protection on Jan. 23, 2008 (Bankr. S.D.N.Y. Lead Case No. 08- 10239). Alfredo R. Perez, Esq., at Weil, Gotshal & Manges, LLP, represents the Debtors in their restructuring efforts. The Debtors chose Stephen Dube, at CXO LLC, as their restructuring and turnaround advisor. Additionally, Evercore Group LLC provides investment and financial counsel to the Debtors. The Debtors' consolidated financial condition as of Dec. 31, 2007 showed total assets of $354,000,000 and total debts of $261,000,000. The Debtors submitted to the Court a Chapter 11 Plan of Reorganization on Feb. 12, 2008. (PRC LLC Bankruptcy News, Issue No. 13; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000) PRIMUS TELECOMMUNICATIONS: Reduces Debt by $63.2 Million -------------------------------------------------------- PRIMUS Telecommunications Group, Incorporated reduced its outstanding principal amount of indebtedness by $63.2 million through private exchange transactions. In aggregate, $67.1 million principal amount of 14-1/4% Senior Secured Notes were newly issued under an existing indenture by Primus Telecommunications IHC, Inc., an indirect wholly owned subsidiary of Primus Telecommunications Group, and were exchanged, together with $4.7 million in cash, for a total of $130.3 million of outstanding debt comprised of these: * $5.3 million principal amount of 12-3/4% Senior Notes due 2009 issued by Primus Telecommunications Group; * $43.0 million principal amount of 3-3/4% Convertible Senior Notes due 2010 issued by Primus Telecommunications Group; * $33.0 million principal amount of 5% Exchangeable Senior Notes due 2010 issued by Primus Telecommunications Holding, Inc., a wholly owned subsidiary of Primus Telecommunications Group; and * $49.0 million principal amount of 8% Senior Notes due 2014 issued by Primus Telecommunications Holding. Thus, in the aggregate, $67.1 million principal amount of newly issued debt, plus $4.7 million in cash, was exchanged for $130.3 million principal amount of outstanding debt. Primus Telecommunications Group estimates, as a result of the exchange transactions, the company�s annualized cash interest expense will increase by approximately $1.7 million. Headquartered in McLean, Virginia, Primus Telecommunications Group (OTC: PRTL) -- http://www.primustel.com/-- is an integrated communications services provider offering international and domestic voice, voice-over-Internet protocol, Internet, wireless, data and hosting services to business and residential retail customers and other carriers located primarily in the United States, Canada, Australia, the United Kingdom and western Europe. PRIMUS provides services over its global network of owned and leased transmission facilities, including approximately 500 points-of-presence (POPs) throughout the world, ownership interests in undersea fiber optic cable systems, 18 carrier-grade international gateway and domestic switches, and a variety of operating relationships that allow it to deliver traffic worldwide. * * * As reported in the Troubled Company Reporter on April 17, 2008, Moody's Investors Service downgraded Primus Telecommunications Group Incorporated's corporate family rating to Ca from Caa3. QUAKER DEVELOPMENT: Voluntary Chapter 11 Case Summary ----------------------------------------------------- Debtor: Quaker Development Corp. 803 W. Market St. West Chester, PA 19382 Bankruptcy Case No.: 08-13383 Chapter 11 Petition Date: May 24, 2008 Court: Eastern District of Pennsylvania (Philadelphia) Judge: Stephen Raslavich Debtor's Counsel: Peter William DiGiovanni, Esq. Email: maximvsv@aol.com P.O. Box 250 Gradyville, PA 19039-0250 Tel: (610) 640-8209 Estimated Assets: $10 million to $50 million Estimated Debts: $1 million to $10 million The Debtor did not file a list of largest unsecured creditors. RMIW LLC: Case Summary & Seven Largest Unsecured Creditors ---------------------------------------------------------- Debtor: R.M.I.W., LLC aka R.M.I.W., LLC of Texas 704 N. Thompson Conroe, TX 77301 Bankruptcy Case No.: 08-33284 Chapter 11 Petition Date: May 23, 2008 Court: Southern District of Texas (Houston) Judge: Jeff Bohm Debtor's Counsel: Julie Mitchell Koenig, Esq. Email: jkoenig@towkoenig.com Tow and Koenig PLLC 26219 Oak Ridge Dr. The Woodlands, TX 77380 Tel: (281) 681-9100 Fax: (281) 681-1441 Total Assets: $60,700,300 Total Debts: $7,786,127 Debtor's Seven Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Billy Jack Barret Fees $400,000 11987 Peyton Hwy. Peyton, CO 80831 Barton R. Bentley Legal Fees $7,000 1360 Post Oak Blvd., Ste. 1600 Houston, TX 77056 Alfred Ted Ruemke Law Office Legal Fees $3,750 704 N. Thompson Conroe,TX 77301 Willimas Lappen Hafen & Keller Business Expense $3,000 Mountain View Electric Utilities $1,600 Hamachen Well Works, Inc. Business Debt $1,500 Tow & Koenig, PLLC Attorney Fees $0 RURAL/METRO CORP: Moody's Holds Sr. Discount Notes' Rating at Caa1 ------------------------------------------------------------------ Moody's Investors Service upgraded the ratings on the senior subordinated notes of Rural/Metro LLC, a wholly-owned subsidiary of Rural/Metro Corporation, to B2 from B3 in accordance with the application of Moody's Loss Given Default Methodology. Concurrently, Moody's affirmed the ratings on the senior secured credit facilities of Rural/Metro LLC at Ba2 and the senior discount notes of Rural/Metro Corporation at Caa1. Moody's also affirmed the Corporate Family Rating and Probability of Default Rating at B2. The ratings outlook remains negative. The upgrade of the rating on Rural/Metro LLC's senior subordinated notes reflects the expectation of additional recovery at the subordinated debt level following the repayment of a meaningful amount of the company's senior secured term loan. The affirmation of the B2 Corporate Family Rating reflects the expectation that the company will continue to operate with high financial leverage. Anticipated improvements in adjusted leverage and other credit metrics have not been realized as margins were pressured by increases in uncompensated care and Medicare and Medicaid denials. However, the rating is supported by the company's national presence in a highly fragmented industry. Top-line growth has remained sound reflecting favorable demographics, the company's presence in high-growth markets and its ability to successfully leverage expansion in markets in which it has 911 contracts. Revenues are expected to continue to grow over the near term as a result of the trend toward outsourcing of hospital-based ambulance services and opportunities for public/private partnerships. The ratings also reflect the fact that the company's cash flow coverage of debt metrics remain strong for the rating category, despite the erosion in profitability experienced in the second half of fiscal 2007. Further, Moody's notes that Rural/Metro has shown a commitment to reduce debt through voluntary prepayements against the balance of the company's term loan. While Moody's acknowledges recent improvement in the company's operating results, the negative outlook reflects our expectation that EBITDA growth and profitability could to continue to be pressured by changes in uncompensated care and payor mix. The outlook also reflects the aggressive tightening of covenants under the credit agreement through the next four quarters. Moody's believes that evidence of sustained improvement in operating margins from recent initiatives, increased certainty of compliance with financial covenants, a continued reduction in the amount of term loan outstanding and the remediation of material weaknesses noted in the company's SEC filings could result in a stabilization of the outlook. Ratings upgraded: * Rural/Metro LLC -- 9.875% senior subordinated notes due 2015, to B2 (LGD4, 56%) from B3 (LGD4, 59%) Ratings affirmed/LGD assessments revised: * Rural/Metro LLC -- Senior secured revolving credit facility due 2010, Ba2 (LGD2, 12%) -- Senior secured letter of credit facility due 2011, Ba2 (LGD2, 12%) -- Senior secured term loan B due 2011, Ba2 (LGD2, 12%) * Rural/Metro Corporation -- 12.75% senior discount notes due 2016, to Caa1 (LGD5, 89%) from Caa1 (LGD6, 91%) -- Corporate Family Rating, B2 -- Probability of Default Rating, B2 Rural Metro Corporation provides emergency and non-emergency medical transportation, fire protection, airport fire and rescue and home healthcare services in 23 states and approximately 400 communities within the United States. The services are provided under contract with government entities, hospitals, healthcare facilities and other healthcare organizations. Net revenue for the twelve months ended March 31, 2008 was approximately $492 million. RURAL/METRO CORP: Moody's Upgrades Sr. Sub. Notes' Ratings to B2 ---------------------------------------------------------------- Moody's Investors Service upgraded the ratings on the senior subordinated notes of Rural/Metro LLC, a wholly-owned subsidiary of Rural/Metro Corporation, to B2 from B3 in accordance with the application of Moody's Loss Given Default Methodology. Concurrently, Moody's affirmed the ratings on the senior secured credit facilities of Rural/Metro LLC at Ba2 and the senior discount notes of Rural/Metro Corporation at Caa1. Moody's also affirmed the Corporate Family Rating and Probability of Default Rating at B2. The ratings outlook remains negative. The upgrade of the rating on Rural/Metro LLC's senior subordinated notes reflects the expectation of additional recovery at the subordinated debt level following the repayment of a meaningful amount of the company's senior secured term loan. The affirmation of the B2 Corporate Family Rating reflects the expectation that the company will continue to operate with high financial leverage. Anticipated improvements in adjusted leverage and other credit metrics have not been realized as margins were pressured by increases in uncompensated care and Medicare and Medicaid denials. However, the rating is supported by the company's national presence in a highly fragmented industry. Top-line growth has remained sound reflecting favorable demographics, the company's presence in high-growth markets and its ability to successfully leverage expansion in markets in which it has 911 contracts. Revenues are expected to continue to grow over the near term as a result of the trend toward outsourcing of hospital-based ambulance services and opportunities for public/private partnerships. The ratings also reflect the fact that the company's cash flow coverage of debt metrics remain strong for the rating category, despite the erosion in profitability experienced in the second half of fiscal 2007. Further, Moody's notes that Rural/Metro has shown a commitment to reduce debt through voluntary prepayements against the balance of the company's term loan. While Moody's acknowledges recent improvement in the company's operating results, the negative outlook reflects our expectation that EBITDA growth and profitability could to continue to be pressured by changes in uncompensated care and payor mix. The outlook also reflects the aggressive tightening of covenants under the credit agreement through the next four quarters. Moody's believes that evidence of sustained improvement in operating margins from recent initiatives, increased certainty of compliance with financial covenants, a continued reduction in the amount of term loan outstanding and the remediation of material weaknesses noted in the company's SEC filings could result in a stabilization of the outlook. Ratings upgraded: * Rural/Metro LLC -- 9.875% senior subordinated notes due 2015, to B2 (LGD4, 56%) from B3 (LGD4, 59%) Ratings affirmed/LGD assessments revised: * Rural/Metro LLC -- Senior secured revolving credit facility due 2010, Ba2 (LGD2, 12%) -- Senior secured letter of credit facility due 2011, Ba2 (LGD2, 12%) -- Senior secured term loan B due 2011, Ba2 (LGD2, 12%) * Rural/Metro Corporation -- 12.75% senior discount notes due 2016, to Caa1 (LGD5, 89%) from Caa1 (LGD6, 91%) -- Corporate Family Rating, B2 -- Probability of Default Rating, B2 Rural Metro Corporation provides emergency and non-emergency medical transportation, fire protection, airport fire and rescue and home healthcare services in 23 states and approximately 400 communities within the United States. The services are provided under contract with government entities, hospitals, healthcare facilities and other healthcare organizations. Net revenue for the twelve months ended March 31, 2008 was approximately $492 million. RITE AID: Fitch Assigns 'CCC/RR6' Rating on $150MM Conv. Notes -------------------------------------------------------------- Fitch Ratings has assigned 'CCC/RR6' ratings to Rite Aid Corporation's new 8.5% $150 million senior unsecured convertible notes due 2015. The proceeds of the new offering will be used to redeem its $150 million of its 6.125% senior unsecured notes due 2008 at a price equal to approximately 102% of the principal outstanding amount. Fitch rates Rite Aid as: -- Issuer Default Rating 'B-'; -- $1.75 billion bank credit facility 'BB-/RR1'; -- $1.25 billion term loans 'BB-/RR1'; -- $1.061 billion 2nd lien senior secured notes 'BB-/RR1'; -- $1.851 billion guaranteed senior unsecured notes 'CCC+/RR5'; -- $758 million non guaranteed senior unsecured notes 'CCC/RR6'. The Rating Outlook is Stable. The ratings consider the risk associated with integrating over 1,800 Brooks and Eckerd stores with Rite Aid's existing store base and improving operations at these stores; the company's high leverage, with total adjusted debt/EBITDAR of 8.1 times for the fiscal year ended March 1, 2008; operating statistics that trail those of competitors; and the intense competition in the drug retailing sector. The ratings also reflect Rite Aid's management's concerted efforts to improve the productivity of its store base, the positive demographics of the drug retailing industry, as well as the benefits from leveraging a larger store base. RUTLAND RATED: Fitch Withdraws 'BB' Rating on $60 Million Notes --------------------------------------------------------------- Fitch Ratings has withdrawn these ratings on Rutland Rated Investments Sedona 2005-1 following notification that the holders of the notes have exercised their option to be redeemed: -- $20,000,000 class A-3F secured limited recourse fixed-rate credit linked notes due 2010 'BBB'; -- $2,000,000 class A3-LK secured limited recourse floating-rate credit linked notes due 2010 'BBB'; -- $60,000,000 class B3-LEK secured limited recourse floating- rate credit linked notes due 2010 'BB'. Sedona 2005-1 was a synthetic collateralized debt obligation referencing a static portfolio of primarily investment grade corporate obligations. At close, proceeds from the issuance of the notes were used to collateralize credit default swaps between the issuer and Bear Stearns Credit Products Inc. SCOTTISH RE: S&P Junks Counterparty Credit and FS Ratings --------------------------------------------------------- Standard & Poor's Ratings Services lowered its counterparty credit rating on Scottish Re Group Ltd. to 'CCC-' from 'B' and its counterparty credit and financial strength ratings on Scottish Re's operating companies to 'B-' from 'BB'. Standard & Poor's also said that it lowered its ratings on all these companies' dependent unwrapped securitized deals by four notches. All of these ratings remain on CreditWatch with negative implications. "The downgrade reflects our materially increased estimate of expected losses on Scottish Re's residential mortgage-backed securities investments since initially placing the ratings on CreditWatch on Jan. 31, 2008," explained Standard & Poor's credit analyst Robert A. Hafner. Because of the disclosure of a material weakness in their accounting controls and the pending revised application of accounting principles to its distressed assets Standard & Poor's believes Scottish Re's financial flexibility could be severely limited. The rating action also reflects our opinion that an obligor rated 'CCC' is currently vulnerable and is dependent upon favorable business, financial, and economic conditions to meet its financial commitments. Since S&P placed the ratings on CreditWatch, Scottish Re has significantly reduced the risk of losing material reserve credits secured through its XXX securitizations. The loss of reserve credits could still occur, but the magnitude of the potential shortfall is greatly reduced. However, losing reserve credits would immediately affect Scottish Re's capitalization because the company would have to post collateral external to the XXX structures to reestablish the reserve credits. Scottish Re's capacity to post the required capital if it becomes necessary continues to be increasingly strained, and present circumstances make it exceedingly difficult for Scottish Re to source external capital infusions until the market disruption dissipates and the impact on the company is known with near certainty. The company's weakened financial condition has also resulted in a discretionary payment default on its $125 million of 7.25% noncumulative perpetual preferred shares. On April 14, 2008, the company also notified the holders of these shares that it might not pay the July dividend and may be precluded by the terms of the shares from declaring and paying dividends on the Oct. 15, 2008, dividend payment date. The ratings will remain on CreditWatch negative until we can determine the full extent to which the company's limited financial flexibility and reduced financial strength are weakened. This will not likely be determinable until the company is able to file its outstanding financial reports. "We will lower the ratings further if the deterioration is more severe than expected," Mr. Hafner added. SPEEDWAY MOTORSPORTS: Moody's Reviewing Ba1 CFR for Downgrade ------------------------------------------------------------- Moody's Investors Service placed Speedway Motorsports, Inc.'s Ba1 Corporate Family rating, Ba1 Probability of Default Rating and associated debt ratings on review for possible downgrade. The review follows the company's announcement that it has entered into an agreement to acquire Kentucky Speedway, LLC for a purchase price of approximately $78.3 million including debt assumed or satisfied and $7.5 million of contingent payments. The company's CEO also indicated that SMI might expand Kentucky Speedway's approximate 68,000-person seating capacity by up to 50,000 seats. The LGD point estimates for the individual debt instruments are also subject to change. On Review for Possible Downgrade: Issuer: Speedway Motorsports Inc. * Corporate Family Rating, Placed on Review for Possible Downgrade, currently Ba1 * Probability of Default Rating, Placed on Review for Possible Downgrade, currently Ba1 * Senior Secured Bank Credit Facility, Placed on Review for Possible Downgrade, currently Baa3, LGD2-28% * Senior Subordinated Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently Ba2, LGD5-82% Outlook Actions: Issuer: Speedway Motorsports Inc. * Outlook, Changed To Rating Under Review Down From Stable Moody's will evaluate the incremental revenue and cash flow benefits to SMI of expanding its track portfolio and the effect on SMI's leverage and financial profile. In particular, Moody's will consider the effect on SMI's operating plans for its entire track portfolio given the proposed acquisition and expansion of a facility that does not currently have a Sprint Cup race entitlement, which entitlements account for the vast majority of broadcast rights fees under Nascar's national television contract and allow for premium event pricing. Moody's will also evaluate the company's plans for additional track acquisitions and development. Moody's will consider the effect of the company's plans on its ability to maintain an adequate liquidity cushion under the covenants in its credit facility. The proposed acquisition is occurring shortly after SMI completed its largely debt financed $340 million purchase of New Hampshire International Speedway ("NHIS") in January 2008. Moody's indicated at the time that the NHIS acquisition would "significantly reduce SMI's flexibility within the Ba1 CFR level over the intermediate term for additional track acquisitions or development projects." In the review, Moody's will evaluate the leverage levels appropriate for SMI at the Ba1 CFR level given the increasing size of the company's track portfolio. Speedway Motorsports, Inc. (SMI), headquartered in Concord, NC, is the second largest promoter, marketer and sponsor of motor sports activities in the US, primarily through its ownership of seven major race tracks. NASCAR sanctioned events account for the majority of SMI's $620 million annual revenues. TRAILER BRIDGE: S&P Affirms 'B-' Long-Term Corp. Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Trailer Bridge Inc. to negative from stable. S&P affirmed the 'B-' long- term corporate credit rating. At the same time, S&P affirmed the 'B-' senior secured debt rating, the same as the corporate credit rating. The recovery rating on that debt remains '3', indicating expectations of a meaningful (50%-70%) recovery in the event of a payment default. "The outlook revision reflects our expectations that earnings will remain under pressure because of rising marine diesel fuel prices [despite a fuel surcharge program], continued softness in Puerto Rico, and weaker-than-expected operating performance in the recently launched Dominican Republic service," said Standard & Poor's credit analyst Funmi Afonja. Ratings on Jacksonville, Florida-based Trailer Bridge reflect the company's highly leveraged financial profile, concentrated end- market demand, and participation in the capital-intensive and competitive shipping industry. Positive credit factors include a steady demand for ocean cargo shipments of food and other staples by residents of Puerto Rico, and barriers to entry provided by the Jones Act (which regulates intra-U.S. shipping). Trailer Bridge provides transportation between the continental U.S. and Puerto Rico, and in August 2007 launched a new service into the Dominican Republic. Trailer Bridge operates a fleet of ocean-going barges, truck tractors, containers, and chassis. The company currently utilizes two roll-on/roll-off vessels and three triplestack box carriers to transport freight between Jacksonville, Florida, San Juan, P.R., and the Dominican Republic. The new Dominican service allows the company to balance its north- and south-bound volumes somewhat and provides limited additional market diversity. The Jones Act requires shipments between U.S. ports to be carried on U.S.-built vessels registered in the U.S. and crewed by U.S. citizens, thereby prohibiting direct competition from foreign- flagged vessels. Trailer Bridge faces ocean-based competition from one other barge line, Crowley Maritime Corp., and two containership companies, Horizon Lines Holding Corp. and Sea Star Lines LLC, as well as land-based trucking competition from a large number of truckload companies. Customers include major manufacturing and consumer products companies that provide food and other staples. Competition from other modes of transportation is limited due to cost and geographic considerations. The company recently announced that it is under review by the Department of Justice as part of an antitrust investigation into pricing practices among Puerto Rico carriers. As a result of the DOJ investigation, the committee Trailer Bridge formed to explore strategic alternatives, including the potential sale of the McLean family's 47.8% ownership stake, has suspended its active review. S&P will continue to closely monitor developments. The negative outlook reflects our expectations that earnings will remain under pressure because of rising marine diesel fuel prices (despite a fuel surcharge program), continued softness in Puerto Rico, and weaker-than-expected operating performance in the recently launched Dominican trade. At this time, there is no evidence that the DOJ investigation in progress could affect the rating or outlook. As a result of the DOJ investigation, Trailer Bridge has suspended the committee formed to explore strategic alternatives, including the potential sale of the McLean family's 47.8% ownership stake. However, any transaction that leads to a material change in strategy or financial policy could have outlook or rating implications. S&P will continue to closely monitor developments. US FARMS: March 31 Balance Sheet Upside-Down by $2,539,455 ---------------------------------------------------------- US Farms Inc.'s consolidated balance sheet at March 31, 2008, showed $3,303,446 in total assets and $5,842,901 in total liabilities, resulting in a $2,539,455 total stockholders' deficit. At March 31, 2008, the company's consolidated balance sheet also showed strained liquidity with $2,357,864 in total current assets available to pay $5,746,178 in total current liabilities. The company reported a net loss of $1,696,492, on net sales of $2,351,089, for the first quarter ended March 31, 2008, compared with a net loss of $550,005, on net sales of $1,673,949, in the same period last year. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2c7e Going Concern Disclaimer Gruber & Company LLC, in Saint Louis, Mo., expressed substantial doubt about US Farms Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm said that for the year ended Dec. 31, 2007 the company reported a net loss of $5,955,327 and has an accumulated deficit of $23,396,921 as of Dec. 31, 2007. The auditing firm added that the company's current liabilities exceeded current assets by $2,537,724 as of Dec. 31, 2007. About US Farms Inc. US Farms Inc. (OTC BB: USFI.OB) -- http://www.usfarmsinc.com/-- is a diversified commercial farming, nursery and brokerage company based in Southern California. Currently, the company's principal operations are located in Southern California in the Imperial Valley, North County San Diego and Los Angeles. The agricultural products are sold through supermarkets, home centers, retail merchandisers, garden centers, re-wholesalers, and landscapers throughout the United States. VERTIS INC: 2nd Lien Noteholders Approve Forbearance Deal Changes ----------------------------------------------------------------- Vertis Inc. dba Vertis Communications disclosed that the holders of more than 75% of the outstanding principal amount of the Second Lien Notes agreed to a second amendment to the Forbearance Agreement. Under the Forbearance Agreement as amended by the Second Amendment, the holders of the requisite percentage of the outstanding principal amount of the Second Lien Notes agreed to forbear from exercising their rights and remedies under the indenture governing the Second Lien Notes and from directing the trustee under the indenture from exercising any such rights and remedies on the holders� behalf until the occurrence of these events: (i) the failure of a specified percentage of certain note holders having executed a restructuring and lock-up agreement on or before May 27, 2008, (ii) the termination of the Restructuring Agreement in accordance with its terms, (iii) the occurrence of certain events under the forbearance agreement dated April 3, 2008 between the Company and the lenders under the Company�s four-year revolving credit agreement, as may be amended, (iv) the occurrence of certain events under the forbearance agreement dated as of April 2, 2008 by and among Vertis Receivables II, LLC, Webcraft, LLC, Webcraft Chemicals, LLC, Enteron Group, LLC, Vertis Mailing, LLC, the Company and General Electric Capital Corporation, as may be amended and (v) the occurrence of certain other events described in the Forbearance Agreement. All other terms of the Forbearance Agreement remain unchanged by the Second Amendment. Headquartered in Baltimore, Vertis Inc., doing business as Vertis Communications -- http://www.vertisinc.com/-- is a provider of print advertising and direct marketing solutions to America's leading retail and consumer services companies. At Dec. 31, 2007, the company's consolidated balance sheet showed $528.2 million in total assets and $1.403 billion in total liabilities, resulting in a $875.1 million total stockholders' deficit. * * * As reported in the Troubled Company Reporter on April 4, 2008, Deloitte & Touche LLP, in Baltimore, Maryland, expressed substantial doubt about Vertis Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Dec. 31, 2007, and 2006. The auditing firm said that the company has incurred recurring net losses and is experiencing difficulty in generating sufficient cash flow to meet its obligations and sustain its operations. As reported in the Troubled Company Reporter on April 3, 2008, Standard & Poor's Ratings Services revised its CreditWatch implications for its 'CC' corporate credit rating on Vertis Inc. to negative from developing following the company's announcement that it had engaged a financial advisor to assist in a possible debt exchange offering. At the same time, Standard & Poor's lowered its ratings on Vertis's $350 million senior secured second-lien notes and $350 million senior unsecured notes to 'C' from 'CCC'. The notes remain on CreditWatch with negative implications, where they were originally placed on April 4, 2007. WELWIND ENERGY: Posts C$590,030 Net Loss in 2008 First Quarter -------------------------------------------------------------- Welwind Energy International Corp. reported a net loss of C$590,030, on zero revenue, for the first quarter ended March 31, 2008, compared with a net loss of C$1,188,328, on zero revenue, in the same period last year. At March 31, 2008, the company's balance sheet showed C$1,552,331 in total assets, C$1,196,116 in total liabilities, and C$356,215 in total stockholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2c7d Going Concern Disclaimer Manning Elliott LLP, in Vancouver, Canada, expressed substantial doubt about Welwind Energy International Corp.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm said that the company has incurred significant operating losses and it will need additional equity or debt financing to sustain operations. About Welwind Energy Headquartered in Maple Ridge, British Columbia, Canada, Welwind Energy International Corp. fka Vitasti Inc. (OTC BB: WWEI) -- http://www.welwind.com/-- was founded in 2005 to build, own and operate wind farms on an international scale. Its current project is focused on bridging the North America-China link by building wind farms in China. Concurrently with the development of the wind farm projects, the company intends to continue to operate the retail bakery and food store and its manufacturing and distribution of specialty health food products. WEST CORP: Additional $134MM Loan Prompts S&P to Hold 'BB-' Rating ------------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB-' loan rating on the senior secured first-lien bank facility of West Corp. (B+/Stable/--), following the announcement that the company will add $134 million to its first-lien term loan. The bank loan rating is one level higher than the corporate credit rating on the Omaha-Nebraska-based company. The '2' recovery rating on the loan remains unchanged and indicates our expectation of substantial (70%-90%) recovery of principal in the event of a payment default. Pro forma for the proposed add-on term loan, the facility will consist of a $250 million revolving credit facility due 2012 and a $2.5 billion term loan B due 2013. Proceeds from the add-on term loan, an unrated $75 million multicurrency revolving credit loan facility due 2011, and $80 million of cash from the balance sheet will be used to finance the acquisition of Genesys SA (not rated). Genesys is an international conferencing service provider with significant presence in Europe and Asia. West plans to combine Genesys with its InterCall subsidiary. "Currently, West has a good cushion of compliance with its bank covenant to ensure access to its revolving credit facility," said Standard & Poor's credit analyst Andy Liu, "but if West is unable to lower its leverage ratio by at least 0.25x-0.5x in 2009, the cushion of its bank covenant compliance could narrow and risk access to its revolving credit facility." WOLF HOLLOW: Moody's Keeps B2 Rating on Review for Downgrade ------------------------------------------------------------ Moody's Investors Service affirmed Wolf Hollow I L.P.'s (Wolf Hollow) first lien senior secured rating of B1 and the second lien senior secured rating of B2. The ratings remain on review for possible downgrade. In affirming the ratings, Moody's recognizes the strong fundamentals of the project, given its location in the ERCOT north power market which has increasingly favorable supply demand characteristics for combined cycle power generation plants. The ratings also recognize the following key credit considerations: 1) the long-term power purchase agreements (PPA) with Exelon Generation Company and the shorter term hedge with J. Aron & Company; 2) offtake contracts providing for a pass-through of fuel costs, although project's performance against the contractual heat rate thresholds fall short of full recovery of fuel costs; 3) traditional project finance structure including a cash flow waterfall funding mechanism, a 100% cash sweep mechanism that could facilitate a degree of debt reduction; 4) long-term services agreements with Mitsubishi, the original equipment manufacturer; 5) a new operations and maintenance (O&M) agreement with North American Energy Services, an experienced operator in the industry, and 6) the overall sponsor support and commitment to the project to date. The ratings remain under review for possible downgrade in view of Moody's expectation that the project's financial performance and credit metrics relative to the financial covenants under its bank credit facilities will remain weak at least the through the first half of 2008. The residual impact of the operating problems incurred during the first half of 2007 continue to dampen the project's performance against its financial covenants, which are measured on a rolling four quarter basis. Despite its poor financial performance during 2006 and 2007, the project has been able to meet its minimum 1.20x DSCR and maximum 9.25x debt to cash flow ratio tests during the past two years given its ability to include releases from the pre-funded operating reserve and the major maintenance reserve in the calculation of cash available for debt service until the end of 2007, as permitted under its credit agreement. However, beginning in 2008, the credit agreement will not permit Wolf Hollow to include any of the reserves in order to comply with its covenant test, resulting in a greater level of susceptibility to violating its covenants if operating problems were to recur and operating cash flows are less than anticipated. Additionally, Moody's views that based on the heat rate levels achieved by the project relative to the requirements under its offtake arrangements, the project remains exposed to low or negative levels of energy margins unless incremental merchant revenues are sufficiently large to offset the less than full pass through of its fuel costs under its offtake agreements. Wolf Hollow is also required to buy power in the spot market to satisfy obligations under its hedge with J. Aron & Company if the plant is not available when dispatched, which could continue to strain the project's cash flows and further exacerbate its ability to meet its financial covenant tests if unforeseen plant outages were to occur. Moody's will review and monitor the project's ongoing performance as measured against budget. The project's management has taken several measures recently to not only improve the project's cost structure, but also to improve operations and reduce the likelihood of forced outages that plagued the project from optimizing its performance during 2006 and the first half of 2007. A rating downgrade is likely if the project continues to incur further operating problems, dampening its financial performance and credit metrics or there is indication of an imminent financial covenant violation. Wolf Hollow is a 730 MW natural gas-fired combined-cycle power generation facility located in the Electric Reliability Council of Texas (ERCOT) North control area, approximately 30 miles southwest of Fort Worth, Texas. Wolf Hollow is indirectly wholly-owned by Stark Investments. WIREFREE PARTNERS: Fitch Holds 'BB+' Rating and Removes Neg. Watch ------------------------------------------------------------------ Fitch Ratings has removed from Rating Watch Negative affirmed and the ratings of Wirefree Partners III, LLC PCS Spectrum Lease- Backed Notes Series 2005-1 at 'BB+'. The notes are backed primarily by leases of Personal Communications Services spectrum licenses. The lessees of the licenses are SprintCom, Inc. and WirelessCo, L.P., two wholly owned subsidiaries of Sprint Nextel Corporation. Annual payments of interest and principal were made in November 2007 after the second annual lease payment was received from Sprint Nextel. The rating of PCS spectrum lease-backed Series 2005-1 notes is highly dependent on the senior unsecured credit rating of Sprint Nextel. The rating action is based on Fitch's recent affirmation of the unsecured credit rating of Sprint Nextel and its subsidiaries at 'BB+'. Wirefree Partners, LLC (not rated by Fitch) is a wireless broadband service provider formed for the purpose of managing, on behalf of the issuer, its participation in the Federal Communication Commission's Auction 58 and its acquired spectrum leases. Wirefree Partners, LLC was founded on Nov. 15, 2004 by the former executives and founders of Sprint PCS affiliate, AirGate PCS, Inc., and is a private company based in Atlanta. WORLDGATE COMMS: March 31 Balance Sheet Upside-Down by $3,486,000 ----------------------------------------------------------------- Worldgate Communications Inc.'s consolidated balance sheet at March 31, 2008, showed $3,978,000 in total assets and $7,464,000 in total liabilities, resulting in a $3,486,000 total stockholders' deficit. At March 31, 2008, the company's consolidated balance sheet also showed strained liquidity with $3,214,000 in total current assets available to pay $7,464,000 in total current liabilities. The company reported a net loss of $2,151,000, on net revenues of $114,000, for the first quarter ended March 31, 2008, compared with a net loss of $4,594,000, on net revenues of $310,000, in the same period last year. Full-text copies of the company's consolidated financial statements for the quarter ended March 31, 2008, are available for free at http://researcharchives.com/t/s?2c7a Going Concern Disclaimer As reported in the Troubled Company Reporter on May 5, 2008, Marcum & Kliegman LLP expressed substantial doubt about WorldGate Communications Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended Dec. 31, 2007. The auditing firm reported that the company has suffered recurring losses from operations and had an accumulated deficit of $262,000,000, stockholders' deficiency of $1,500,000 and a working capital deficit of $2,400,000 at Dec. 31, 2007. The company also experienced severe cash shortfalls, deferred payment of some of its operating expenses, and plans to shut down its operations for a period of time during 2008, and further curtailments of its operations could be necessary in the near future. About Worldgate Communications Based in Trevose, Pennsylvania, WorldGate Communications Inc. (Nasdaq: WGAT) -- http://www.wgate.com/-- designs, manufactures, and distributes the Ojo line of personal videophones. Ojo personal videophones offer real-time, two-way video communications with video messaging. * S&P Chips Ratings on 69 Tranches from 18 Cash Flow & Hybrid CDOs ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its ratings on 69 tranches from 18 U.S. cash flow and hybrid collateralized debt obligation transactions. S&P removed 25 of the lowered ratings from CreditWatch with negative implications. At the same time, S&P affirmed one rating at 'AAA' and removed it from CreditWatch with negative implications. S&P also placed the rating on one tranche on CreditWatch with negative implications. In addition, the ratings on 46 of the downgraded tranches remain on CreditWatch with negative implications, indicating a significant likelihood of further downgrades. The CreditWatch placements primarily affect transactions for which a significant portion of the collateral assets currently have ratings on CreditWatch negative or which have significant exposure to assets rated in the 'CCC' category. The downgraded tranches have a total issuance amount of $11.929 billion. Seven of the 18 affected cash flow and hybrid transactions are high-grade structured finance CDOs of asset- backed securities, which are CDOs collateralized at origination primarily by 'AAA' through 'A' rated tranches of residential mortgage-backed securities and other SF securities. The other 11 transactions are mezzanine SF CDOs of ABS, which are collateralized in large part by mezzanine tranches of RMBS and other SF securities. At the same time, S&P lowered and left on CreditWatch negative its rating on one tranche from one U.S. synthetic CDO transaction. The downgraded tranche has a total issuance amount of $80 million. The downgrade of the Tribune Ltd. Series 48 note reflects the direct link of the note rating to the rating of its reference obligation, the super-senior swap issued by ABCDS 2006-1 Ltd., which S&P lowered to 'B-srb/Watch Neg' from 'Bsrb/Watch Neg' as part of the rating actions. The CDO downgrades reflect a number of factors, including credit deterioration and recent negative rating actions on U.S. subprime RMBS securities and on U.S. Alternative-A RMBS securities, as well as changes Standard & Poor's has made to the recovery rate and correlation assumptions it uses to assess U.S. RMBS held within CDO collateral pools. To date, including the CDO tranches listed below and including actions on both publicly and confidentially rated tranches, S&P have lowered its ratings on 3,389 tranches from 803 U.S. cash flow, hybrid, and synthetic CDO transactions as a result of stress in the U.S. residential mortgage market and credit deterioration of U.S. RMBS. In addition, 552 ratings from 155 transactions are currently on CreditWatch negative for the same reasons. In all, S&P have downgraded $354.449 billion of CDO issuance. Additionally, S&P's ratings on $10.675 billion in securities have not been lowered but are currently on CreditWatch negative, indicating a high likelihood of downgrades. Rating Actions Rating ------ Transaction Class To From ----------- ----- -- ---- ABCDS 2006-1 Ltd. A-2 CCC-/Watch Neg CCC/Watch Neg ABCDS 2006-1 Ltd. A-3 CC CCC-/Watch Neg ABCDS 2006-1 Ltd. Super Sr Swap B-srb/Watch Neg Bsrb/Watch Neg Acacia CDO 11 Ltd. A CCC-/Watch Neg BBB Acacia CDO 11 Ltd. B CC BB+ Acacia CDO 11 Ltd. C CC B+ Acacia CDO 11 Ltd. D CC B- Citation High Grade ABS CDO I A-1 B+/Watch Neg BBB+ Citation High Grade ABS CDO I A-2 CCC/Watch Neg CCC+ Citation High Grade ABS CDO I B-1 CCC-/Watch Neg CCC Citation High Grade ABS CDO I B-2 CC CCC Citation High Grade ABS CDO I C CC CCC- Duke Funding High Grade V A-1 BBB-/Watch Neg AA-/Watch Neg Duke Funding High Grade V A-2 BB-/Watch Neg BB+/Watch Neg Duke Funding High Grade V B CCC+/Watch Neg B/Watch Neg Duke Funding High Grade V C CCC-/Watch NegCCC+/Watch Neg Duke Funding High Grade V D CC CCC-/Watch Neg Duke Funding IX Ltd. A1 AA/Watch Neg AAA/Watch Neg Duke Funding IX Ltd. A2F BBB-/Watch NegBBB+/Watch Neg Duke Funding IX Ltd. A2V BBB-/Watch NegBBB+/Watch Neg Duke Funding IX Ltd. A3F B-/Watch Neg B+/Watch Neg Duke Funding IX Ltd. A3V B-/Watch Neg B+/Watch Neg Duke Funding IX Ltd. B CC CCC-/Watch Neg Halcyon Securitized Products A-1a BBB-/Watch Neg A-/Watch Neg Investors ABS CDO II Ltd. Halcyon Securitized Products A-1b B-/Watch Neg BB-/Watch Neg Investors ABS CDO II Ltd. Halcyon Securitized Products A-2 CC CCC+/Watch Neg Investors ABS CDO II Ltd. Halcyon Securitized Products B CC CCC/Watch Neg Investors ABS CDO II Ltd. Halcyon Securitized Products C CC CCC-/Watch Neg Investors ABS CDO II Ltd. Longstreet CDO I Ltd. A-1 CCC+/Watch Neg BB- Longstreet CDO I Ltd. A-2 CC CCC+ Longstreet CDO I Ltd. B CC CCC- Los Robles CDO Ltd. A-2 B-/Watch Neg B+/Watch Neg Los Robles CDO Ltd. A-3 CCC-/Watch NegCCC+/Watch Neg Los Robles CDO Ltd. B CC CCC/Watch Neg Los Robles CDO Ltd. C CC CCC-/Watch Neg Los Robles CDO Ltd. D CC CCC-/Watch Neg Millstone II CDO Ltd. A-1M BBB/Watch Neg A+/Watch Neg Millstone II CDO Ltd. A-1Q BBB/Watch Neg A+/Watch Neg Millstone II CDO Ltd. A-2 BB/Watch Neg BB+/Watch Neg Millstone II CDO Ltd. B B/Watch Neg BB/Watch Neg Millstone II CDO Ltd. C CCC+/Watch Neg B+/Watch Neg Millstone II CDO Ltd. D CCC-/Watch Neg B-/Watch Neg Montrose Harbor CDO I Ltd. A-1 B-/Watch Neg BB/Watch Neg Montrose Harbor CDO I Ltd. A-2 CC B/Watch Neg Montrose Harbor CDO I Ltd. B-1 CC CCC/Watch Neg Orient Point CDO II Ltd. A B-/Watch Neg B+/Watch Neg Orient Point CDO II Ltd. B CCC+/Watch Neg B-/Watch Neg Orient Point CDO II Ltd. C CCC-/Watch Neg CCC/Watch Neg Orient Point CDO II Ltd. D CC CCC-/Watch Neg Pinnacle Point Funding Ltd. A-1 A AA/Watch Neg Pinnacle Point Funding Ltd. A-2 BB/Watch Neg BBB-/Watch Neg Pinnacle Point Funding Ltd. B CC CCC-/Watch Neg Ridgeway Court Funding I Ltd. A1M BB-/Watch Neg AA-/Watch Neg Ridgeway Court Funding I Ltd. A1Q BB-/Watch Neg AA-/Watch Neg Ridgeway Court Funding I Ltd. A2 CCC/Watch Neg BBB/Watch Neg Sagittarius CDO I Ltd. S CCC/Watch Neg B-/Watch Neg Sagittarius CDO I Ltd. Super Sr CCC+/Watch Neg B-/Watch Neg Sherwood Funding CDO Ltd. A-2 A-/Watch Neg A+/Watch Neg Sherwood Funding CDO Ltd. B-1 BBB-/Watch Neg BBB/Watch Neg Sherwood Funding CDO Ltd. B-2 BBB-/Watch Neg BBB/Watch Neg Sherwood Funding CDO Ltd. C B+/Watch Neg BB/Watch Neg Term CDO 2007-1 Ltd. A-1LA BB-/Watch Neg A- Term CDO 2007-1 Ltd. A-1LB B-/Watch Neg BBB- Term CDO 2007-1 Ltd. A-2L CC B- Term CDO 2007-1 Ltd. A-3L CC CCC+ Term CDO 2007-1 Ltd. B-1L CC CCC- Tribune Ltd. Series 48 CLN B- B/Watch Neg Western Springs CDO Ltd. A-1 B/Watch Neg BB/Watch Neg Western Springs CDO Ltd. A-2 CCC-/Watch NegCCC+/Watch Neg Western Springs CDO Ltd. A-3 CC CCC-/Watch Neg Rating Placed on Creditwatch Negative Rating ------ Transaction Class To From ----------- ----- -- ---- Sherwood Funding CDO Ltd. A-1 AAA/Watch Neg AAA Rating Affirmed and Removed from Creditwatch Negative Rating ------ Transaction Class To From ----------- ----- -- ---- Pinnacle Point Funding Ltd. ABCP AAA/A-1+ AAA/A-1+/Watch Neg Other Outstanding Ratings Transaction Class Rating ----------- ----- ------ ABCDS 2006-1 Ltd. B CC ABCDS 2006-1 Ltd. C CC ABCDS 2006-1 Ltd. D CC ABCDS 2006-1 Ltd. E CC ABCDS 2006-1 Ltd. Series B-1 CC ABCDS 2006-1 Ltd. Series P-1 AAA ABCDS 2006-1 Ltd. Series P-2 AAA ABCDS 2006-1 Ltd. Series P-3 AAA Citation High Grade ABS CDO I, Ltd. D CC Halcyon Securitized Products D-1 CC Investors ABS CDO II Ltd. Halcyon Securitized Products D-2 CC Investors ABS CDO II Ltd. Halcyon Securitized Products E CC Investors ABS CDO II Ltd. Longstreet CDO I Ltd. C CC Longstreet CDO I Ltd. D CC Longstreet CDO I Ltd. E CC Longstreet CDO I Ltd. F CC Longstreet CDO I Ltd. G CC Los Robles CDO Ltd. A-1a AA/Watch Neg Los Robles CDO Ltd. A-1b AA/Watch Neg Los Robles CDO Ltd. TRS AAsrp/Watch Neg Millstone II CDO Ltd. X AAA/Watch Neg Montrose Harbor CDO I, Ltd. B-2 CC Montrose Harbor CDO I, Ltd. C CC Montrose Harbor CDO I, Ltd. D CC Orient Point CDO II Ltd. E CC Ridgeway Court Funding I Ltd. A3 CC Ridgeway Court Funding I Ltd. A4 CC Ridgeway Court Funding I Ltd. B CC Ridgeway Court Funding I Ltd. C CC Ridgeway Court Funding I Ltd. Q CC Sagittarius CDO I Ltd. A CC Sagittarius CDO I Ltd. B CC Sagittarius CDO I Ltd. C CC Sagittarius CDO I Ltd. D-1 CC Sagittarius CDO I Ltd. D-2 CC Sagittarius CDO I Ltd. D-3 CC Sagittarius CDO I Ltd. E CC Sagittarius CDO I Ltd. X CC Sherwood Funding CDO Ltd. D CC Western Springs CDO Ltd. B CC Western Springs CDO Ltd. C CC Western Springs CDO Ltd. D CC Western Springs CDO Ltd. E CC Western Springs CDO Ltd. F CC * New York and Delaware Bankruptcy Courts Still Heavily Favored --------------------------------------------------------------- The federal bankruptcy courts of Manhattan and Wilmington, Delaware continue to be the most favored venues for bankruptcy applications and restructuring for big, multi-million-dollar companies, Emily Chasan of Reuters reports. Citing data from BankruptcyData.com, Reuters relates that 12 of the 44 of the Chapter 11 and Chapter 7 cases initiated by publicly-traded companies filed with the U.S. Bankruptcy Court for the Southern District of New York, while 10 of them were filed with the District of Delaware in Wilmington. The other 22 filings were distributed among other bankruptcy courts in the country. Reuters says that most lawyers would still prefer the judges' experience in these cities. Lawyers want judges who are more experienced in quickly navigating bankruptcy cases to emergence, given the difficulty of securing exit financing and the complications of the latest bankruptcy reforms. In addition, the absence of juries and limited opportunities for appeal also make these courts attractive, says Reuters. Other bankruptcy venues in large cities, such as Chicago, have tried to compete for attention by making amendments to local court rules, according to Reuters. Other courts have also been busy, since most companies naturally file for bankruptcy within the principal place of their operations. However, "There is a sense that processes will go smoother in New York and Delaware," Reuters quotes bankruptcy law professor Stephen Lubben as saying. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Shareholders Total Working Equity Assets Capital Company Ticker ($MM) ($MM) ($MM) ------- ------ ------------ ------ ------- Absolute Software ABT (3) 89 30 AFC Enterprises AFCE (40) 155 (20) APP Pharmaceutic APPX (73) 1,077 227 Ariad Pham ARIA (8) 101 65 Bare Escentuals BARE (76) 236 99 Blount Intl BLT (44) 407 138 CableVision System CVC (5,114) 9,180 (476) Centennial Comm CYCL (1,063) 1,343 14 Cheniere Energy CQP (228) 1,905 146 Cheniere Energy LNG (16) 2,962 428 Choice Hotels CHH (157) 328 (42) Cincinnati Bell CBB (668) 2,020 0 Claymont Stell PLTE (40) 158 80 Compass Minerals CMP (5) 820 201 Corel Corp. CRE (14) 266 (15) Crown Media HL CRWN (684) 676 4 CV Therapheutics CVTX (185) 259 177 Cyberonics CYBX (15) 136 (15) Cytori Therapeut CYTX (11) 18 2 Deltek Inc PROJ (86) 166 (28) Denny's Corp DENN (179) 381 74 Domino's Pizza DPZ (1,450) 473 51 Dun & Bradstreet DNB (437) 1,659 (192) Einstein Noah Re BACL (34) 149 4 Extendicare Real EXE-U (32) 1,440 (15) Gencorp Inc. GY (52) 995 77 General Motors GM (35,480) 148,883 (9,720) Healthsouth Corp. HLS (1,070) 2,051 (331) Human Genome Sci HGSI (12) 949 47 ICO Global C-New ICOG (131) 602 101 IDEARC Inc IAR (8,600) 1,667 205 IMAX Corp IMAX (85) 208 (8) IMAX Corp IMX (85) 208 (8) Incyte Corp INCY (160) 276 228 Indevus Pharma IDEV (86) 199 40 Intermune Inc ITMN (31) 262 209 IPCS Inc IPCS (40) 547 76 Knology Inc KNOL (35) 619 7 Life Sciences Re LSR (29) 502 1 Linear Tech Corp LLTC (564) 1,410 912 Lodgenet Interac LNET (48) 694 8 Maxxam Inc MXM (242) 544 120 Mediacom Comm-A MCCC (253) 3,615 (268) Moody's Corp MCO (784) 1,715 (360) National Cinemed NCMI (572) 464 67 Navistar Intl NAVZ (1,699) 10,786 164 Nexstar Broadcasting NXST (89) 709 (11) NPS Pharm Inc NPSP (188) 231 107 Primedia Inc PRM (129) 282 6 Protection One PONE (23) 673 6 Radnet Inc RDNT (53) 434 41 Regal Entertai-A RGC (119) 2,635 (2) Riviera Holdings RIV (48) 218 14 RSC Holdings Inc RRR (44) 3,460 (128) Rural Cellular-A RCCC (590) 1,350 110 Sally Beauty Hol SBH (745) 1,440 414 Sealy Corp. ZZ (113) 1,025 22 Sonic Corp SONC (102) 765 (27) Spectrum Brands SPC (141) 3,265 828 Theravance THRX (66) 162 101 Tribune Co TRB (3,514) 13,150 (805) UST Inc UST (292) 1,487 446 Valence Tech VLNC (61) 20 8 Virgin Mobile-A VM (410) 259 (173) Voyager Learning VLCY (53) 917 (637) Warner Music Gro WMG (47) 4,599 (764) Weight Watchers WTW (926) 1,046 (172) Westmoreland Coal WLB (178) 783 (85) WR Grace & Co. GRA (285) 3,927 (1,091) XM Satellite-A XMSR (1,038) 1,662 (293) ********* Monday's edition of the TCR delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR editor holds some position in the issuers' public debt and equity securities about which we report. Each Tuesday edition of the TCR contains a list of companies with insolvent balance sheets whose shares trade higher than $3 per share in public markets. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com/ On Thursdays, the TCR delivers a list of recently filed chapter 11 cases involving less than $1,000,000 in assets and liabilities delivered to nation's bankruptcy courts. The list includes links to freely downloadable images of these small-dollar petitions in Acrobat PDF format. Each Friday's edition of the TCR includes a review about a book of interest to troubled company professionals. All titles are available at your local bookstore or through Amazon.com. Go to http://www.bankrupt.com/books/to order any title today. Monthly Operating Reports are summarized in every Saturday edition of the TCR. For copies of court documents filed in the District of Delaware, please contact Vito at Parcels, Inc., at 302-658-9911. For bankruptcy documents filed in cases pending outside the District of Delaware, contact Ken Troubh at Nationwide Research & Consulting at 207/791-2852. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Shimero R. Jainga, Ronald C. Sy, Joel Anthony G. Lopez, Cecil R. Villacampa, Melanie C. Pador, Ludivino Q. Climaco, Jr., Loyda I. Nartatez, Tara Marie A. Martin, Joseph Medel C. Martirez, Ma. Cristina I. Canson, Christopher G. Patalinghug, and Peter A. Chapman, Editors. Copyright 2008. All rights reserved. ISSN: 1520-9474. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR subscription rate is $775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 240/629-3300. *** End of Transmission ***