/raid1/www/Hosts/bankrupt/TCR

/raid1/www/Hosts/bankrupt/TCR_Public/080929.mbx T R O U B L E D C O M P A N Y R E P O R T E R Monday, September 29, 2008, Vol. 12, No. 232 Headlines 2510 WASHINGTON: Case Summary & 20 Largest Unsecured Creditors ACCELLENT INC: S&P Holds 'B' Rating; Changes Outlook to Stable ACCEPTANCE INSURANCE: Terminates Employment of Pres. and Treasurer AFFINIA GROUP: S&P's Rating Unmoved by Suspended Debt Refinancing AMDL INC: Private Placement of Convertible Notes Closes AMERALIA INC: Sept. 2007 Balance Sheet Upside-down by $22 Mil. AMERIBUILD CONSTRUCTION: Voluntary Chapter 11 Case Summary ARIAD PHARMACEUTICALS: Board Approves Subsidiary's Integration ASARCO LLC: Bondholders Spurn at Parent's Disclosure Statement BANC OF AMERICA: Moody's Affirms 'Ba1' Rating on Class H Certs. BANC OF AMERICA: S&P Slashes Certificate Ratings to 'B' from 'A' BAYBERRY FUNDING: Moody's Trims $96MM Notes Rating to B3 from Aaa CARROLS CORP: S&P Chips Corp. Credit to 'B'; Keeps Neg. Outlook CASH TECHNOLOGIES: Posts $800,052 Loss for Year Ended May 31 CENTAUR LLC: S&P Affirms 'CCC' Credit Rating; Outlook Developing CENTERLINE 2007-1: Moody's Downgrades Ratings on 16 Cert. Classes CFM US: Court Okays Amendment of Huntington Closing Agreement CFM US: Seeks Court Okay to Dispose of Books & Records CFM US: Court Extends Lease Decision Period Until November 6 CHUKCHANSI ECONOMIC: Moody's Holds 'B2' Rating; Outlook Negative CLAIRE'S STORES: Moody's Confirms PD Rating at 'Caa1' COLLYBUS CDO: Moody's Cuts Ratings on Two Note Classes to 'C' CREEK COURSE: Case Summary & Three Largest Unsecured Creditors DD-OH FAMILY: Hearing on Going-Out-of-Business Sale Set for Oct. 6 DETROIT MEDICAL: Fitch Rates $342.1MM Refunding Bonds 'BB' DIOGENES CDO: Moody's Chips $364.8MM Notes Rating to 'Ca' DOMARK INT'L: Liquidity Concerns Cue Auditor's Substantial Doubt DPP BEAVERTON: Case Summary & Largest Unsecured Creditor DVA ARENA: Developer Files Appeal on Chapter 11 Case Dismissal ENERGAS RESOURCES: Posts $81,514 Losses for Quarter Ended July 31 ENVIRONMENTAL TECTONICS: H.F. Lenfest Unit Withdraws Buyout Offer ENVIRONMENTAL TECTONICS: Amex Accepts Compliance Plan EPICEPT CORP: Amends DURECT License; Gets $2.25MM Cash Payment ESTATE FINANCIAL: Files List of 20 Largest Unsecured Creditors EURAMAX INTERNATIONAL: Moody's Reviews Ratings for Possible Cut FANNIE MAE: FBI Investigating Firm's Financial Troubles FAWCETT BOAT: Reorganization Plan OKd, Emerges from Chapter 11 FORT APACHE: Voluntary Chapter 11 Case Summary FREDDIE MAC: FBI Investigating Firm's Financial Troubles FT APACHE: Voluntary Chapter 11 Case Summary FUEGO ENT: Moore & Associates Expresses Going Concern Doubt GE COMMERCIAL: S&P Junks Rating on Class O Commercial Certificates GEORGIA GULF: Suspends Quarterly Dividend Due to Weak Economy GOODYEAR TIRE: To Tap $600MM Credit Facility Due to Fund Woes GOODYEAR TIRE: Drawing $600MM Facility Won't Affect S&P's Ratings GOODY'S FAMILY: Closing Almost 70 Stores, Opens Richmond Unit GREATER ATLANTA: Files Chapter 11 Bankruptcy in Atlanta Court GREAT LAKES TISSUE: Files For Chapter 11 Bankruptcy Protection GREEKTOWN CASINO: Wants Until December 15 to File Chapter 11 Plan GREYSTONE LOGISTICS: Deficits Cue Auditor's Going Concern Doubt GS MORTGAGE: Moody's Lowers Ratings on Six Classes of Securities HAMILTON BEACH: S&P Changes Outlook to Neg. on Weaker Income HAMILTON GARDENS: Moody's Junks $315MM Class A-1 Notes Rating HARBOR SERIES: Moody's Slashes Ratings on Two Classes to 'Ca' HEARTLAND AUTOMOTIVE: Wants Ties with BP Plc Subsidiary to Emerge HINES HORTICULTURE: Files Schedules of Assets and Liabilities ICFQ DESARROLLOS: U.S. Trustee Sets 341(a) Meeting for October 10 INTERGRAPH CORP: S&P Holds 'B+' Rating; Revises Outlook to Pos. INTERMET CORP: Court Gives Final Authority to Use Cash Collateral INTERMET CORP: CapitalSource to Withdraw Case Conversion Bid INTERMUNE INC: June 30 Balance Sheet Upside-Down by $81.5 Million INTERMUNE INC: BNP Paribas Discloses 5.8% Equity Stake IRIDIUM SATELLITE: GHL Agreement Cues S&P to Put on Positive Watch J&D RESTAURANT: Files for Chapter 11 Bankruptcy JEFFERSON COUNTY: Moody's Cuts $270MM GO Debt Rating to 'B3' JPMORGAN AUTO: Fitch Assigns 'BB' Rating on $6.37MM Certificates JUNIPER NETWORKS: S&P Puts 'BB' Corp. Credit Under Positive Watch KING PHARMACEUTICALS: Moody's Rates Proposed $1BB Facilities 'Ba2' LEHMAN BROTHERS: SEC Subpoenas Funds on Share Manipulation LEHMAN BROTHERS: S&P Withdraws Ratings in All Related Entities LOEHAMNN'S CAPITAL: S&P Retains 'CCC-' Issue-Level Notes Rating LVPR ENTERPRISES: Case Summary & 11 Largest Unsecured Creditors LYNX 2002-1: S&P Maintains 'CCC' Rating on Class D Notes MEDAVANT HEALTHCARE: Completes Sale of Business to Marlin Equity MERISANT WORLDWIDE: June 30 Balance Sheet Upside-Down by $212.5MM MERISANT WORLDWIDE: Operating Unit Has $83MM Deficit at June 30 MILLENNIUM INORGANIC: S&P Cuts Rating to 'CCC+'; Outlook Negative NORTHERN BERKSHIRE: Fitch Lifts Revenue Bonds Rating to 'BB+' OAKRIDGE HOMES: Wants Exclusivity Period Extended to Jan. 9, 2009 OAKRIDGE HOMES: Files Schedules of Assets and Liabilities PIERRE FOODS: Seeks to Employ Battelle as General Tax Advisors PIERRE FOODS: Wants Ernst & Young as Bankruptcy Tax Advisors PILGRIM'S PRIDE: Cut By Moody's on 4Q Loss, Covenant Waiver Talks PILGRIM'S PRIDE: Likely Covenant Breach Cues S&P to Junk Rating PLAINS EXPLORATION: Permian Interest Sale Won't Affect S&P's Rtngs POWER EFFICIENCY: Files Amendment to Share Registration Statement QUICKSILVER RESOURCES: S&P Lowers Rating on $700MM Term Loan to B RENAISSANCE CUSTOM: Case Summary & 20 Largest Unsecured Creditors REVLON CONSUMER: Moody's Lifts Corp. Family Rating to B3 from Caa1 REVLON INC: Completes 1-for-10 Reverse Split for Class A & B Stock RETAIL PRO: John C. Redding Quits as Secretary and General Counsel RGIS HOLDINGS: Weak Performance Cues Moody's to Cut Rating to 'B3' RITE AID: Moody's Junks Probability of Default Rating ROUNDY'S SUPERMARKETS: S&P Trims Corp. Credit Rating to B from B+ SCO GROUP: July 31 Balance Sheet Upside-Down by $3.2 Million SOUTH STREET: Moody's Trims Class B-2 Notes Rating to Ca from C SOUTHEAST WAFFLES: Agrees to Have CRO Rather than Trustee SPORTSQUEST INC: Kramer Weisman Expresses Going Concern Doubt ST LOUIS CHARTER: Fitch Holds 'BB' Rating on $5.32MM Revenue Bonds STONE ARTIST: Files for Chapter 11 Protection TORRENT ENERGY: Lender Withdraws from DIP Credit and Guaranty Deal TURKEY LAKE: Chapter 11 Petition Incomplete; Needs to Hire Counsel US MEDICAL: Case Summary & 12 Largest Unsecured Creditors VALENA LAND: Case Summary & Eight Largest Unsecured Creditors WACHOVIA BANK: Moody's Cuts $32.793MM Certificate Rating to 'Ba3' WASHINGTON MUTUAL: Files for Chapter 11 in Delaware WASHINGTON MUTUAL: Case Summary & 13 Largest Unsecured Creditors WASHINGTON MUTUAL: Moody's Places 31 Trusts Ratings Under Review WCI COMMUNITIES: Gets Final Nod to Use $150MM Wachovia DIP Loan WHITEHALL JEWELERS: Court Sets Dec. 1 General Bar Date WHITEHALL JEWELERS: May Obtain Up to $80MM in Postpetition Loans WII COMPONENTS: S&P Trims Rating to 'B'; Puts on Negative Watch WILMA SHORE: Case Summary & Four Largest Unsecured Creditors YOUNG BROADCASTING: Continued Cash Burn Cues Moody's Ratings Cut * Moody's Says Pressures Build Up in Rate-Regulated Gas Sectors * Moody's Downgrades Ratings on 35 Credit Linked Notes * Fitch Puts Ratings on 22 Hedge Fund CFOs Under Negative Watch * S&P Cuts Ratings on 110 Tranches from 30 Cash Flow & Hybrid CDOs * S&P Lowers Ratings on 48 Classes from 14 RMBS Transactions * S&P Puts 884 Ratings on 117 US RMBS Under Negative CreditWatch * S&P: Consumer Discretionary & Auto Sectors Leads Debt Market * S&P: Capital Goods Shift to Lower Gear as Global Growth Slows * S&P: Composite Credit Spread Hits 314 Bps, Highest in Five Yrs * BOND PRICING: For the Week of Sept. 22 - Sept. 26, 2008 ********* 2510 WASHINGTON: Case Summary & 20 Largest Unsecured Creditors -------------------------------------------------------------- Debtor: 2510 Washington LLC 2510 Washington Blvd. Ogden, UT 84401 Bankruptcy Case No.: 08-26464 Chapter 11 Petition Date: September 25, 2008 Court: District of Utah (Salt Lake City) Debtor's Counsel: Russell S. Walker, Esq. rwalker@wklawpc.com Woodbury & Kesler 265 East 100 South, Suite 300 Salt Lake City, UT 84111 Tel: (801) 364-1100 Fax: (801) 359-2320 Estimated Assets: $10 million to $50 million Estimated Debts: $1 million to $10 million Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Saunders Construction Improvements to $120,660 realty JG Johnson Architectural $114,000 Moyes Glass Services rendered $90,000 1590 Wall Avenue Ogden, UT 84404 Dan Tabish $88,137 Ken Free Consulting $80,000 services Internal Revenue Service Withholding and $76,067 David Watson Architect Services rendered $62,614 Daniel & Tracey Marz $55,000 Jeff Van Dyke $52,077 Utah State Tax Commission $27,909 Heritage Consulting Services rendered $13,000 Carpet Giant Carpet One Carpet purchases $12,000 Serta Miscellaneous $10,730 purchase Thyssen-Krupp Elevators Services rendered $8,846 Durham, Jones & Pinegar Services rendered $7,135 Kone, Inc. $7,006 Ogden City Corporation $6,623 Augie DiGiacomo Loan $5,300 Kevin Wiese Consulting $5,000 Services Ulrich & Assoc. Services rendered $4,335 ACCELLENT INC: S&P Holds 'B' Rating; Changes Outlook to Stable -------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Wilmington, Massachusetts-based Accellent Inc. to stable from negative. At the same time, Standard & Poor's affirmed its 'B' corporate credit rating and other ratings on the company. "The outlook revision reflects improved liquidity, as demonstrated by development of a 12.8% cushion under its leverage covenant, a 17.2% cushion under its interest coverage covenant, and financial performance that has exceeded our expectations," said Standard & Poor's credit analyst Michael Berrian. "The 'B' rating on Accellent reflects the company's high debt leverage, still-tight liquidity, end-market challenges, and ongoing operational improvement efforts at its wholly owned subsidiary, Accellent Corp.," added Mr. Berrian. "These concerns are partly mitigated by the company's position as a leading participant in the fragmented, niche medical device contract manufacturing business." Accellent is a participant in the niche medical device contracting business that has been affected by industry difficulties and has been working to overcome operational issues that overshadow the company's business risk profile. The company offers a low-cost outsource alternative for the manufacturers of commoditized devices and components in the orthopedic, cardio, and endoscopy markets. While recent safety concerns for implantable cardiac defibrillators and drug-eluting stents have abated, the industry remains subject to cyclical swings and periods of softness. Accellent also has some revenue concentration, with cardio and endoscopy accounting for more than one-half of the company's sales, and only two customers accounting for more than 20% of sales. The pricing power and the competitive and fragmented nature of the market require that Accellent retain a strong manufacturing track record and excellent customer relationships in order to win and renew contracts. This was a concern since the operational difficulties, which included an inefficient use of manufacturing capacity and resources, had strained some customer relationships. The outlook is stable. Industry conditions have stabilized and Accellent has exceeded Standard & Poor's expectations of at least 7% sales growth for the first half of the year, and improved its liquidity and covenant cushion. While Standard & Poor's expects growth during the second half of 2008 and for 2009 to decline to the mid-to-high single digits, Accellent will still be able to generate free cash flow for debt repayment, aided by improving margins. If margins do not improve through more efficient plant utilization over the next 12 to 18 months and result in a lease- adjusted leverage of 7x or higher, or result in a covenant cushion that is less than 10%, an outlook revision to negative could occur. Conversely, if the company continues to generate free cash flow, retaining substantial revolver availability and a covenant cushion of more than 12%, the outlook could be revised to positive. ACCEPTANCE INSURANCE: Terminates Employment of Pres. and Treasurer ----------------------------------------------------------------- The Special Deputy Rehabilitator for Acceptance Insurance Company, a subsidiary of Acceptance Insurance Companies Inc., has notified John Martin and Gary Thompson that their employment with AIC as president and treasurer will be terminated on Sept. 30, 2008. Headquartered in Council Bluffs, Iowa, Acceptance Insurance Companies, Inc. -- http://www.aicins.com/-- owns, either directly or indirectly, several companies, one of which is an insurance company that accounts for substantially all of the business operations and assets of the corporate groups. The company filed for chapter 11 protection on Jan. 7, 2005 (Bankr. D. Nebr. Case No. 05-80059). The Debtor's affiliates -- Acceptance Insurance Services, Inc. and American Agrisurance, Inc. -- each filed chapter 7 petitions (Bankr. D. Nebr. Case Nos. 05-80056 and 05-80058) on Jan. 7, 2005. John J. Jolley, Esq., at Kutak Rock LLP, represents the Debtor in its restructuring efforts. Lawyers at McGrath North Mullin & Kratz PC, LLO represent the Official Committee of Unsecured Creditors in Acceptance Insurance's case. AFFINIA GROUP: S&P's Rating Unmoved by Suspended Debt Refinancing ----------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on auto aftermarket supplier Affinia Group Inc. (B/Negative/--) are not immediately affected by the company's suspension of its debt refinancing plans. Affinia cited difficult credit market conditions in announcing that it is suspending plans to syndicate a $340 million asset-based revolving credit facility and issue up to $200 million in senior secured notes. The refinancing would have improved liquidity by eliminating the threat of restrictive financial covenants in Affinia's existing secured term loan. Absent an improvement in market conditions that allows Affinia to return to the debt markets, the company could face substantially lower borrowing availability in the fourth quarter of 2008, when its leverage covenant steps down to 3.75x from 4x, and this is a risk to the rating. S&P will closely monitor Affinia's financial performance in the third and fourth quarters, including the company's ability to sustain recent price increases to offset raw material price increases. As S&P noted in its research update published Sept. 24, 2008, it could lower the ratings if it came to expect that the company would fail to remain in compliance with its covenants, if free operating cash flow turned substantially negative in the third and fourth quarters, or if liquidity otherwise deteriorated from current levels. AMDL INC: Private Placement of Convertible Notes Closes ------------------------------------------------------- AMDL, Inc., a pharmaceutical company with major operations in China and the U.S., said it closed a $2,510,000 private placement offering of 10% convertible notes on Sept. 15, 2008. The placement agents for the offering were Jesup & Lamont Securities Corporation and Dawson James Securities, Inc. Gary Dreher, president and CEO of AMDL, Inc., said, "This financing strengthens our cash position and allows us to accelerate key business initiatives. We appreciate the financial support from our investors and their vote of confidence in AMDL's China and US-led operations." AMDL sold $2,510,000 of 10% convertible notes at par value. The notes mature at the earlier of 12 months from the completion of a registered follow-on public offering or 24 months after issuance. The notes will be repaid either at maturity in cash equal to 150% of the principal amount of the notes plus an amount equivalent to 10% per annum interest, or upon forced mandatory conversion into shares of the Company's common stock in the event of a public offering of at least $25 million in gross proceeds to AMDL. At any time after February 15, 2009, the holders of the notes have the right to convert the entire principal and interest due thereon into common stock of the Company. The conversion price will be at a discount of fifty percent (50%) to the: (i) price of the Company's common stock on the closing of the public offering; or (ii) common stock on February 15, 2009; provided, however, in no event shall the conversion price be less than $1.20 per share. In the event of a voluntary conversion, the shares issued will not be registered. The shares issuable on conversion carry "piggy-back" registration rights should the Company file a registration statement subsequent to conversion. In the event of a forced conversion into common shares in the public offering, note holders will be subject to a lock-up on any remaining shares not sold in the offering for 90 days after the public offering. Upon any conversion of the notes into common stock of the Company, the Company shall also issue warrants to purchase common stock to the converting investors in the amount equal to 50% of the number of shares of common stock into which their notes were converted. Warrants shall have a term of five years from the date of issuance and shall be exercisable at a price equal to 120% of the closing price of the Company's common stock on the date of conversion; provided however, in no event shall the exercise price of the warrants be less than 120% of the five day volume average weighted price (VWAP) of the Company's common stock the on closing date of the debt offering. The placement agents received cash commissions of $251,000, representing 10% of the principal amount of the notes purchased, $62,750 in non-accountable expenses and due diligence fees (2-1/2% of the principal amount of the notes purchased), and five year warrants to purchase a maximum of 209,167 shares of the Company's common stock (which number will be adjusted and reduced when the initial conversion price of the notes is determined) exercisable at $2.69 per share, representing a price equal to 115% of the five day VWAP of the common stock of the Company up to the closing. AMDL structured the debt financing so the conversion price will be determined at or about the same time as an anticipated 1st quarter 2009 "at market" public offering. Prior to this event, the Company expects to meet certain milestones that it believes will positively impact the conversion price. Specifically, AMDL intends to a secure new comprehensive credit facility in China. The credit facility is anticipated to include collateralized mortgage financing, construction financing, as well as lines of credit for accounts payable and research and development. AMDL intends to use proceeds from these financings for, among other things, the release of new pharmaceutical products in the China market; to advance business development efforts for the recently FDA-approved DR-70(R) ELISA cancer monitoring test; accelerate the product development pipeline for leading products that include Goodnak(R), the MyHPV Chip Test Kit(R), and Domperidone; and to fund AMDL's other general working capital needs in China and the US. No assurances can be given that these milestones can be achieved or what the timing thereof will be. About AMDL Inc. Based in Tustin, California, AMDL, Inc., (AMEX: ADL) -- http://www.amdl.com/-- with operations in Shenzhen, Jiangxi, and Jilin, China, is a vertically integrated specialty pharmaceutical company. In combination with its subsidiary Jade Pharmaceutical Inc., AMDL engages in the research, development, manufacture, and marketing of diagnostic products. Going Concern Doubt As reported in the Troubled Company Reporter on April 25, 2008, KMJ Corbin & Company LLP expressed substantial doubt about AMDL 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 significant operating losses and negative cash flows from operations through Dec. 31, 2007, and accumulated deficit at Dec. 31, 2007. The company incurred net losses off $429,567 and $2,264,305 during the three months ended June 30, 2008 and 2007, respectively, and had an accumulated deficit of $38,788,660 at June 30, 2008. In addition, the company used cash in operations of $1,348,241 and $2,876,356 during the six months ended June 30, 2008 and 2007, respectively. At June 30, 2008, the company's consolidated balance sheet showed $33,531,920 in total assets, $5,901,153 in total liabilities, and $27,630,767 in total stockholders' equity. AMERALIA INC: Sept. 2007 Balance Sheet Upside-down by $22 Mil. -------------------------------------------------------------- AmerAlia Inc. disclosed in form 10-Q, filed with the Securities and Exchange Commission on Sept. 24, 2008, its consolidated balance sheets for Sept. 30, 2007, showing $37,627,851 in total assets, $44,429,728 in total liabilities, $15,360,103 in minority interest, resulting in a $22,161,980 stockholders' deficit. The company consolidated balance sheets further showed strained liquidity with $4,061,400 in total current assets available to pay $43,492,238 in total current liabilities. At Sept. 30, 2008, the company reported $1,015,687 net loss on revenues of $4,212,711 for the three months ended Sept. 30, 2007, compared with $1,707,365 net loss on revenues of $3,980,888 for the same period a year ago. According to the company's regulatory filing, during the quarter ended Sept. 30, 2007, it increased its accrued expenses due to related parties by $709,244, interest payable by $177,633, reduced inventory by $57,193 and raised $350,000 through issuing a promissory note to Sentient II and increased its factoring facility with the Wells Fargo bank by $960,480. In addition, it borrowed $94,464 as a bank overdraft. it utilized these funds to place $960,480 on deposit to secure its bonding arrangements, increased other accrued expenses by $228,926, increased other deposits and prepaid expenses by $130,409, increased accounts receivable by $19,509, paid creditors $460,343, applied payments of $85,309 to our cavities development and $4,430 to equipment purchases and reduced our capital leases by $12,037 and repaid other loans by $36,494. The net reduction in cash for the quarter represented $7,139. Furthermore, the company said that it has agreed to some interim arrangements with various Sentient funds: -- effective as of Oct. 31, 2007, Sentient I acquired from NSI its $750,000 Series A Secured debenture and accrued interest of $271,215 for consideration of $1,021,215. -- effective as of March 31, 2008, Sentient Global Resources Fund III LP purchased AmerAlia's rights to outstanding interest due on its Series A Secured 10% Debentures for $1,406,875. AmerAlia used these funds to pay some of the outstanding interest owed to the holders of its Series A Debenture Secured promissory notes. Sentient III also acquired Sentient I's rights to interest owed on its Series A debentures, including the interest due on the debenture previously owned by NSI, for $2,076,334. -- in May 2008, Sentient I loaned AmerAlia $465,000 for the purpose of contributing capital to NSHI which, in turn, contributed $465,000 to NSI as its proportionate share of $1,000,000 raised by NSI for well field development expenditures. -- In June 2008, the company issued another promissory note to Sentient III for $300,000 at 6% per annum interest repayable on Sept. 30, 2008 to enable us to access funds to pay ordinary trade payables as approved by Sentient III. It has borrowed $283,000 against this note to pay various expenses and creditors. In June, it was also advised that Sentient III had acquired the promissory note for $1,200,000 it has issued to US Filter and had since been assigned to HPD, LLC. As a material inducement to Sentient III to acquire the note, HPD agreed to provide Sentient III with up to $600,000 of discounts on any contracts awarded by Sentient III or its nominee to HPD for the supply of equipment or services within a twelve month period of its acquisition of the note. A full-text copy of the company's financial statement is available for free at http://ResearchArchives.com/t/s?32db Going Concern Doubt HJ & Associates LLC in Salt Lake City, Utah, expressed on July 16, 2008, substantial doubt about AmerAlia Inc.'s ability to continue as a going concern after auditing the company's financial statements for the years ended June 30, 2007 and 2006. The firm reported that the company has suffered losses from operations, stockholders' deficit and minimal working capital. AmerAlia, Inc., produces and sells natural sodium bicarbonate, commonly known as baking soda, for use in a wide variety of products and activities. AMERIBUILD CONSTRUCTION: Voluntary Chapter 11 Case Summary ---------------------------------------------------------- Debtor: Ameribuild Construction Management, Inc. c/o Ameribuild Program Mgt. 1122 East Atlantic Avenue Delray Beach, FL 33483 Bankruptcy Case No.: 08-13707 Chapter 11 Petition Date: September 25, 2008 Court: Southern District of New York (Manhattan) Judge: Allan L. Gropper Debtor's Counsel: Gerard DiConza, Esq. gdiconza@dlawpc.com DiConza Law, P.C. 630 Third Avenue Seventh Floor New York, NY 10017 Tel: (212) 682-4940 Fax: (212) 682-4942 Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million The Debtor did not file a list of 20 largest unsecured creditors. ARIAD PHARMACEUTICALS: Board Approves Subsidiary's Integration -------------------------------------------------------------- ARIAD Pharmaceuticals Inc. disclosed in a Securities and Exchange Commission filing that on September 11, 2008, its Board of Directors approved a transaction to merge ARIAD Gene Therapeutics, Inc. (AGTI), an 80%-owned subsidiary of ARIAD, with and into ARIAD. The transaction was approved by the unanimous vote of ARIAD's independent and disinterested Board members. As stockholders of AGTI, Harvey J. Berger, M.D., ARIAD's chairman and chief executive officer, and Jay R. LaMarche, a member of the ARIAD Board, are not independent and disinterested with regard to this transaction and, therefore, abstained from the vote. Under the terms of the merger agreement, each outstanding share of AGTI common stock owned by AGTI's minority stockholders will be converted into the right to receive two shares of ARIAD common stock. The exchange ratio was determined by the independent and disinterested members of ARIAD's Board based on analyses received from an investment banking firm. A total of 2,252,128 shares of ARIAD common stock will be issued, representing approximately 3.1% of the outstanding common stock of ARIAD following the transaction. The shares will not be registered under the Securities Act of 1933 and will become eligible for sale under Rule 144 in six months. "In order to create additional value for our stockholders, the independent and disinterested members of the ARIAD Board undertook, with the assistance of an investment banking firm, an extensive evaluation of strategic alternatives with respect to acquiring the 20 percent minority interest of AGTI that ARIAD did not own," stated Sandford D. Smith, vice chairman of the ARIAD Board. "Based on our evaluation, we believe that this is an appropriate time to combine the companies and that this agreement is in the best interests of all parties." "Upon the consummation of this merger, ARIAD is poised to realize all of the potential future economic benefit from deforolimus and other assets previously owned by AGTI," stated Dr. Berger. About ARIAD Pharmaceuticals Headquartered in Cambridge, Mass., ARIAD Pharmaceuticals Inc. (Nasdaq: ARIA) -- http://www.ariad.com/-- is engaged in the discovery and development of breakthrough medicines to treat cancer by regulating cell signaling with small molecules. ARIAD has a global partnership with Merck & Co. Inc. to develop and commercialize deforolimus, ARIAD's lead cancer product candidate, which is in Phase 3 clinical development. At June 30, 2008, the company's consolidated balance sheet showed $82.0 million in total assets and $121.1 million in total liabilities, resulting in a $39.1 million total stockholders' deficit. ASARCO LLC: Bondholders Spurn at Parent's Disclosure Statement -------------------------------------------------------------- Harbinger Capital Partners Master Fund I Ltd., Harbinger Capital Partners Special Situations Fund L.P. and Citigroup Global Markets Inc. -- the Majority Bondholders; Deutsche Bank Securities Inc.; Mitsui & Co. (U.S.A.); the Indenture Trustees; Plainfield Special Situations Master Fund Limited; The Pension Benefit Guaranty Corporation; and the Official Committee of Unsecured Creditors filed objections with the U.S. Bankruptcy Court for the Southern District of Texas to the Disclosure Statement explaining the Asarco LLC's Parent's Plan of Reorganization for selected Debtors. (a) Majority Bondholders The Majority Bondholders, holding approximately two-thirds of the principal amount of unsecured bonds and debentures issued by ASARCO LLC, assert that the Parent's Plan cannot be confirmed as a matter of law, saying that the proposed alterations of Bondholders' rights, under either of Grupo's options, are unacceptable to the because bonds to be paid in whatever amount the Court determines -- is a "litigation plan" unacceptable to Majority Bonds which does not qualify as "unimpairment" under Section 1124 of the Bankruptcy Code. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP in New York, contends that the Parent's plan is unconfirmable because the Plan does not cure all defaults required by Section 1124 of the Bankruptcy Code. Moreover, Grupo's Disclosure Statement fails to contain "adequate information" as required by Section 1125 of the Bankruptcy Code. The Court should decline to approve Grupo's Disclosure Statement, Mr. Moer says. Babson Capital Management LLC is an assignee of Murray Capital Management, Inc. under one or more investment management agreements. Babson joins in the Majority Bondholders' objection to the Parent's motion for approval of its Disclosure Statement. (b) Deutsche Bank Deutsche Bank Securities, Inc., a creditor of ASARCO LLC, requests the Court to disapprove the parent's Disclosure Statement because of its failure to provide sufficient factual disclosure to enable creditors to fully evaluate the Parent Plan as a result of the parent's exclusion of, among others, the proposed interest rate for postpetition interest to be paid unsecured creditors of the Debtors under the Parent Plan. The plan for which the Disclosure Statement is prepared is unconfirmable, and as a matter of law, both the plan and the Disclosure Statement should be denied, William L. Wallander, Esq., at Vinson & Elkins L.L.P. in Dallas, Texas says. (c) Mitsui Mitsui, a creditor in these Chapter 11 cases says that the Parent's Disclosure Statement contains multiple incorrect statements that may prejudice Mitsui's interests. Mitsui requests the Court to direct the Parent to amend its Disclosure Statement so as to include the changes and corrective language proposed by Mitsui to the parent's disclosure Statement, the plan and Exhibits. (d) Indenture Trustees Wells Fargo Bank, national Association, Wilmington Trust Company, and Deutsche Bank Trust Company Americas are the Debtors' Indenture Trustees in these Chapter 11 cases. The Indenture Trustees request the Court to deny the Parent's Disclosure Statement, saying a Disclosure Statement must contain "adequate information." The Indenture Trustees in in the Majority Bondholders' objection to the parent's Disclosure Statement. (e) Plainfield Special Situations Plainfield Special Situations Master Fund Limited joins in the objections made by the Majority Bondholders to the Parent's Disclosure Statement, and states further that the Parent's Disclosure Statement cannot be approved because the parent plan incorrectly specifies allowed claims general unsecured claims including trade claims, bondholders' claims, toxic tort claims, and previously settled environmental claims as unimpaired, thus depriving holders of those Allowed Claims of the opportunity to vote for or against the Parent Plan. (f) PBGC The Pension Benefit Guaranty Corporation is a U.S. Government corporation established by the Employee Retirement Income Security Act or 1974. PBGC guarantees the payment of certain pension benefits upon termination of a pension plan. PBGC contends that the Parent and Americas Mining Corporation's proposed Disclosure Statement does not meet the basic requirements of the Bankruptcy Code. (g) Creditors' Panel The Official Committee of Unsecured Creditors moves to strike the parent's Disclosure Statement because it does not contain "adequate information" that would make a reasonable investor typical of holders of claims or interests of the relevant class to make an informed judgment of the plan. Another information that the Committee wants to see in the disclosure Statement concerns the Debtors' collective bargaining agreement and the related pending litigation. About ASARCO LLC Based in Tucson, Arizona, ASARCO LLC -- http://www.asarco.com/-- is an integrated copper mining, smelting and refining company. Grupo Mexico S.A. de C.V. is ASARCO's ultimate parent. The Company filed for Chapter 11 protection on Aug. 9, 2005 (Bankr. S.D. Tex. Case No. 05-21207). James R. Prince, Esq., Jack L. Kinzie, Esq., and Eric A. Soderlund, Esq., at Baker Botts L.L.P., and Nathaniel Peter Holzer, Esq., Shelby A. Jordan, Esq., and Harlin C. Womble, Esq., at Jordan, Hyden, Womble & Culbreth, P.C., represent the Debtor in its restructuring efforts. Lehman Brothers Inc. provides the ASARCO with financial advisory services and investment banking services. Paul M. Singer, Esq., James C. McCarroll, Esq., and Derek J. Baker, Esq., at Reed Smith LLP give legal advice to the Official Committee of Unsecured Creditors and David J. Beckman at FTI Consulting, Inc., gives financial advisory services to the Committee. When the Debtor filed for protection from its creditors, it listed $600 million in total assets and $1 billion in total debts. The Debtor has five affiliates that filed for chapter 11 protection on April 11, 2005 (Bankr. S.D. Tex. Case Nos. 05-20521 through 05-20525). They are Lac d'Amiante Du Quebec Ltee, CAPCO Pipe Company, Inc., Cement Asbestos Products Company, Lake Asbestos of Quebec, Ltd., and LAQ Canada, Ltd. Sander L. Esserman, Esq., at Stutzman, Bromberg, Esserman & Plifka, APC, in Dallas, Texas, represents the Official Committee of Unsecured Creditors for the Asbestos Debtors. Former judge Robert C. Pate has been appointed as the future claims representative. Details about their asbestos-driven Chapter 11 filings have appeared in the Troubled Company Reporter since April 18, 2005. Encycle/Texas, Inc. (Bankr. S.D. Tex. Case No. 05-21304), Encycle, Inc., and ASARCO Consulting, Inc. (Bankr. S.D. Tex. Case No. 05- 21346) also filed for chapter 11 protection, and ASARCO has asked that the three subsidiary cases be jointly administered with its chapter 11 case. On Oct. 24, 2005, Encycle/Texas' case was converted to a Chapter 7 liquidation proceeding. The Court appointed Michael Boudloche as Encycle/Texas, Inc.'s Chapter 7 Trustee. Michael B. Schmidt, Esq., and John Vardeman, Esq., at Law Offices of Michael B. Schmidt represent the Chapter 7 Trustee. ASARCO's affiliates, AR Sacaton LLC, Southern Peru Holdings LLC, and ASARCO Exploration Company Inc., filed for Chapter 11 protection on Dec. 12, 2006. (Bankr. S.D. Tex. Case No. 06-20774 to 06-20776). Six of ASARCO's affiliates, Wyoming Mining & Milling Co., Alta Mining & Development Co., Tulipan Co., Inc., Blackhawk Mining & Development Co., Ltd., Peru Mining Exploration & Development Co., and Green Hill Cleveland Mining Co. filed for Chapter 11 protection on April 21, 2008. (Bank. S.D. Tex. Case No. 08-20197 to 08-20202). The Debtors submitted to the Court a joint plan of reorganization and disclosure statement on July 31, 2008. The plan incorporates the sale of substantially all of the Debtors' assets to Sterlite Industries, Ltd., for $2,600,000,000. Americas Mining Corporation, an affiliate of Grupo Mexico SAB de CV, submitted a reorganization plan to retain its equity interest in ASARCO LLC, by offering full payment to ASARCO's creditors in connection with ASARCO's Chapter 11 case. AMC would provide up to $2.7 billion in cash as well as a $440 million guarantee to assure payment of all allowed creditor claims, including payment of liabilities relating to asbestos and environmental claims. AMC's plan is premised on the estimation of the approximate allowed amount of the claims against ASARCO. Asarco Inc. and AMC are represented by Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York. (ASARCO Bankruptcy News Issue No. 85; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). BANC OF AMERICA: Moody's Affirms 'Ba1' Rating on Class H Certs. --------------------------------------------------------------- Moody's Investors Service downgraded the ratings of two classes and affirmed 11 classes of Banc of America Commercial Mortgage Inc., Commercial Mortgage Pass-Through Certificates, Series 2000-1 as: -- Class A-2A, $269,939,065, affirmed at Aaa -- Class A-3B, $4,751,840, affirmed at Aaa -- Class X, Notional, affirmed at Aaa -- Class B, $40,999,766, affirmed at Aaa -- Class C, $35,142,657, affirmed at Aaa -- Class D, $11,714,219, affirmed at Aaa -- Class E, $27,333,177, affirmed at Aa1 -- Class F, $11,714,219, affirmed at Aa3 -- Class G, $11,714,219, affirmed at A3 -- Class H, $19,523,698, affirmed at Ba1 -- Class K, $3,904,740, affirmed at Ba3 -- Class L, $15,618,958, downgraded to B3 from B2 -- Class M, $7,809,479, downgrade to Caa1 from B3 Moody's downgraded Classes L and M due to an overall decline in the performance of the pool, realized and anticipated losses from specially serviced loans and increased dispersion. As of the September 15, 2008 distribution date, the transaction's aggregate certificate balance has decreased by approximately 38.4% to $475.3 million from $771.2 million at securitization. The Certificates are collateralized by 95 mortgage loans ranging in size from less than 1.0% to 5.7% of the pool, with the top 10 loans representing 32.9% of the pool. Thirty loans, representing 43.5% of the pool, have defeased and are collateralized with U.S. Government securities. Seven loans have been liquidated from the pool, resulting in an aggregate realized loss of approximately $4.4 million. Currently there is one real estate owned loan, representing 1.0% of the pool, in special servicing. Moody's is estimating a $2.5 million loss from this loan. Twenty-three loans, representing 22.4% of the pool, are on the master servicer's watchlist. The watchlist includes loans which meet certain portfolio review guidelines established as part of the Commercial Mortgage Securities Association's monthly reporting package. As part of Moody's ongoing monitoring of a transaction, Moody's reviews the watchlist to assess which loans have material issues that could impact performance. Moody's is concerned about two loans that are currently on the watch list due to debt service coverage ratios below 1.0x. The first, the Cimarron and Farmstead Apartments Loan ($15.8 million - 3.3%), is secured by two multifamily properties located in Mesa, Arizona. Performance has declined due to a significant decline in occupancy. Currently the properties are 50.0% occupied. The second loan is the Radisson Suites Loan ($11.9 million - 2.5%), which is secured by a limited service hotel located in Secaucus, New Jersey. RevPAR has declined to $63.30 for calendar year 2007 compared to $72.30 in 2005. The hotel, which is currently flagged as La Qunita, has changed flags four times since securitization. Moody's was provided with partial and year-end 2007 operating results for 90.7% of the pool. Moody's loan to value ratio is 83.7% compared to 81.1% at Moody's prior full review in September 2007 and 85.1% at securitization. Based on Moody's analysis, 14.3% of the pool has an LTV greater than 120.0% compared to 12.6% at last review. Approximately 29.0% of the pool has a Moody's stressed DSCR less than 1.0x. The top three non-defeased loans represent 15.0% of the outstanding pool balance. The largest loan is the Worth Avenue Retail Portfolio Loan ($26.9 million -- 5.7%), which is secured by two retail properties located on Worth Avenue in Palm Beach, Florida. The two properties total 66,300 square feet and have been 100.0% occupied by high-end retailers since securitization. Financial performance has improved since last review due to increased rental revenues and amortization. The loan has amortized 8.5% since securitization. Moody's LTV is 78.5% compared to 82.6% at last review. The second largest loan is the SCI Portfolio Loan ($22.9 million -- 4.8%), which is secured by a 350,000 square foot office building located in downtown Dallas, Texas. The property is 100.0% occupied, the same as at last review and at securitization. Bank of America Corporation (Moody's senior unsecured rating Aa2, on review for possible downgrade) occupies 99.0% of the building through December 2009 with two five-year renewal options. The value of this property would be significantly impacted if Bank of America were not to renew. The most recently reported data for the Class B/C Dallas office sub-market reflects a 29.0% vacancy rate and $10.40 per square foot rental rate. Moody's value has been stressed to reflect the possibility of Bank of America not renewing and current market conditions. Moody's LTV is 74.3% compared to 74.9% at last review. The third largest loan is the Dutch Square Center Loan ($21.3 million -- 4.5%), which is secured by a 540,000 square foot retail center located in Columbia, South Carolina. The center is anchored by Belks, Burlington Coat Factory and a 14-screen AMC cinema. Belks and Burlington Coat Factory recently renewed their leases for 10 and five year terms, respectively. As of January 2008 the in-line space was 80.0% leased. The loan matures in February 2009 and is on the servicer's watchlist due to a DSCR below 1.0x. Performance has declined since last review due to higher operating expenses and lower occupancy. Moody's LTV is 94.1% compared to 83.9% at last review. Moody's periodically completes full reviews in addition to monitoring transactions on a monthly basis. Moody's prior full review is summarized in a press release dated September 12, 2007. Moody's has published rating methodologies outlining its analytical approach to surveillance and its approach to rating conduit and fusion transactions. In addition, Moody's has published numerous articles outlining its ratings approach to the various property types customarily deposited within these transactions along with other articles on credit issues unique to CMBS. The major rating methodologies employed in analyzing this transaction include: CMBS: Moody's Approach to Surveillance, September 30, 2002 -- this paper provides an overview of Moody's surveillance philosophy, an indication of what prompts a conduit review, how conduit and large loan monitoring is performed, and what its objectives are with respect to post-closing requests and servicer reviews; and CMBS: Moody's Approach to Rating U.S. Conduit Transactions, September 15, 2000 -- this paper provides an overview of rating methodology and process with details on property level analysis, loan level analysis, legal and structural characteristics, and portfolio characteristics with supplementary information on legal issues, a research summary, helpful information for commercial real estate transactions, capitalization rates, and guidelines for capital reserves. BANC OF AMERICA: S&P Slashes Certificate Ratings to 'B' from 'A' ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on the class A-1 and A-3 mortgage-backed certificates from Banc of America Funding 2006-R1 Trust to 'B' from 'A-' and removed them from CreditWatch, where they were placed with negative implications on June 10, 2008. In addition, S&P raised its rating on class A-2 from this transaction to 'AAA' from 'A-' and removed it from CreditWatch negative. The transaction is a re-REMIC structure. The downgrades of the class A-1 and A-3 certificates reflect S&P's belief that these classes may no longer have sufficient credit enhancement to support the ratings at their previous levels. S&P's belief is based on its projected lifetime losses on the underlying transactions, which S&P derived from the dollar amount of loans currently in the underlying deals' delinquency pipelines. Credit support is provided by subordinate classes within the re- REMIC structure, as well as from classes subordinate to the class pledged to the re-REMIC within the underlying deal. In addition, CIFG Assurance North America Inc. provides a bond insurance policy that reimburses bondholders for any losses allocated to these classes. S&P upgraded class A-2 to reflect its super-senior status, whereby any losses allocable to class A-2 will instead be allocated to class A-3 until class A-3 is no longer outstanding. Class A-2 also has the support of the bond insurance policy from CIFG. The standard long-term rating assigned to a fully credit-enhanced class is the higher of the rating on the credit enhancer and Standard & Poor's underlying rating on the affected class. The revised ratings on these classes reflect this methodology. The transaction is a resecuritization of 41 certificates from eight previously issued prime jumbo transactions and four Alternative-A transactions. The underlying transactions were issued by Bank of America N.A. and Countrywide Home Loans in 2005 and 2006. The collateral for these deals consists primarily of U.S. residential prime jumbo and Alt-A first-lien mortgage loans. Subordination is the sole means of credit support in the underlying transactions. Classes A-1, A-2, and A-3 had an original total principal balance of approximately $121.42 million and have a current balance of approximately $118.54 million. Ratings Lowered and Removed from Creditwatch Negative Banc of America Funding 2006-R1 Trust Rating ------ Class To From ----- -- ---- A-1 B A-/Watch Neg A-3 B A-/Watch Neg Rating Raised and Removed from Creditwatch Negative Banc of America Funding 2006-R1 Trust Rating ------ Class To From ----- -- ---- A-2 AAA A-/Watch Neg BAYBERRY FUNDING: Moody's Trims $96MM Notes Rating to B3 from Aaa ----------------------------------------------------------------- Moody's Investors Service has downgraded and left on review for possible further downgrade the rating on the notes issued by Bayberry Funding, Ltd.: Class Description: $96,000,000 Class II Senior Floating Rate Notes Due 2041 -- Prior Rating: Aaa, on review for possible downgrade -- Prior Rating Date: April 9, 2008 -- Current Rating: B3, on review for possible downgrade In addition, Moody's has downgraded these notes: Class Description: $86,000,000 Class III Senior Floating Rate Notes Due 2041 -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: April 24, 2008 -- Current Rating: Ca Class Description: $17,250,000 Class IV Mezzanine Floating Rate Deferrable Notes Due 2041 -- Prior Rating: Baa2, on review for possible downgrade -- Prior Rating Date: April 24, 2008 -- Current Rating: C Class Description: $42,500,000 Class V Mezzanine Floating Rate Deferrable Notes Due 2041 -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Date: April 24, 2008 -- Current Rating: C According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. CARROLS CORP: S&P Chips Corp. Credit to 'B'; Keeps Neg. Outlook --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Syracuse, New York-based Carrols Corp. to 'B' from 'B+.' The outlook remains negative. "The downgrade reflects our concern that Carrols' cushion over financial covenants of its senior secured credit facility will significantly narrow in the fourth quarter of fiscal 2008, when the covenants become more restrictive," said Standard & Poor's credit analyst Jackie E. Oberoi. Specifically, should debt levels remain at June 30, 2008, levels and EBITDA decline slightly, EBITDA cushion over financial covenants would narrow to less than 5% of EBITDA at year-end. "Profitability has weakened at Carrols during the first half of 2008 and we believes the company will have a difficult time improving profitability or free cash flows significantly over the next few quarters," added Ms. Oberoi, "given the cost and competitive pressures facing the restaurant industry." Therefore, any meaningful improvement of the leverage ratios for covenant purposes is unlikely. CASH TECHNOLOGIES: Posts $800,052 Loss for Year Ended May 31 ------------------------------------------------------------ Cash Technologies Inc. posted $800,052 in net losses on $336,615 in net revenues for fiscal year ended May 31, 2008, compared with $3,065,247 in net losses on $313,946 in net revenues for fiscal year ended May 31, 2007. As of May 31, 2008, Cash Technologies' balance sheet showed $17.71 million in total assets, $10.07 million in total liabilities, and $7.76 million in shareholders' equity. The company has generated limited revenues since our inception, and, while it expects to generate significant revenues within the next fiscal year, there is no assurance that it will be successful. Losses will continue until and unless its products are more widely sold. The company is unable to pay current liabilities, and must rely on the continued forbearance of specific creditors to avoid bankruptcy. As of May 31, 2008, the company had outstanding current liabilities of $8,142,075, consisting of obligations and accruals for loans, dividends and notes payable, trade payables, taxes, unpaid salaries and other items of which approximately $1,400,000 is not being paid as agreed. Cash Technologies creditors have, to date, agreed not to accelerate on these obligations and not to foreclose on the company's assets. However, should the creditors demand immediate repayment, the company said it would have to raise the needed funds to satisfy the obligations, possibly on unsatisfactory terms or failing that, it would have to consider ceasing operations or filing for bankruptcy protection. "We have an immediate need for capital and if we are unable to obtain the financing we need, our business may fail," Bruce Korman, the company's President and Chief Executive Officer, said. Going Concern Doubt Vasquez & Company LLP expressed substantial doubt about Cash Technologies Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended May 31, 2007. The auditing firm noted that the company has suffered significant recurring losses and is in immediate need of substantial working capital to continue its business and operations. At Feb, 29, 2008, the company had a working capital deficit of $8,511,620 compared to working capital deficit of $6,662,505 at May 31, 2007. The large change is a direct result of a write off of the Champion note receivable. To date, the company has been funding its operations primarily through the issuance of equity in private placement transactions with existing stockholders or affiliates of stockholders. About Cash Technologies Headquartered in Los Angeles, Cash Technologies Inc. (AMEX: TQ) -- http://www.cashtechnologies.com/-- develops and markets innovative data processing solutions in the healthcare and financial services industries. CENTAUR LLC: S&P Affirms 'CCC' Credit Rating; Outlook Developing ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'CCC' corporate credit rating on Indianapolis-based Centaur LLC, and removed them from CreditWatch, where they were initially placed with developing implications on July 11, 2008. The outlook is developing. At the same time, S&P lowered its ratings on Centaur's first-lien senior secured facility to 'CCC+' from 'B-', and revised its recovery rating on the facility to '2' from '1'. The '2' recovery rating indicates that lenders can expect substantial (70%-90%) recovery in the event of a payment default. Standard & Poor's also lowered its issue-level rating on Centaur's second-lien credit facility to 'CC' from 'CCC-'. S&P also revised the recovery rating on this debt to '6' from '5'. The '6' recovery rating indicates that lenders can expect negligible (0%-10%) recovery in the event of a payment default. "We have removed the ratings from CreditWatch as it will likely take a few more months to determine whether Centaur's Indiana- based racino Hoosier Park, which opened on June 2, 2008, will generate sufficient cash flow to service its obligations," explained Standard & Poor's credit analyst Ariel Silverberg. Recent credit agreement amendments will reduce outstanding debt, but fixed charges remain significant, and a meaningful ramp-up of the property is necessary to satisfy these requirements. CENTERLINE 2007-1: Moody's Downgrades Ratings on 16 Cert. Classes ----------------------------------------------------------------- Moody's Investors Service downgraded 16 classes of Certificates, issued by Centerline 2007-1 Resecuritization Trust: -- Class A-1, $276,040,000, Certificates due December 2049, downgraded to Aa1 from Aaa -- Class A-2, $51,757,000, Certificates due December 2049, downgraded to A1 from Aa1 -- Class B, $35,737,000, Certificates due December 2049, downgraded to A2 from Aa2 -- Class C, $30,808,000, Certificates due December 2049, downgraded to A3 from Aa3 -- Class D, $40,666,000, Certificates due December 2049, downgraded to Baa1 from A1 -- Class E, $41,899,000, Certificates due December 2049, downgraded to Baa2 from A2 -- Class F, $43,131,000, Certificates due December 2049, downgraded to Baa3 from A3 -- Class G, $36,969,000, Certificates due December 2049, downgraded to Ba1 from Baa1 -- Class H, $29,575,000, Certificates due December 2049, downgraded to Ba2 from Baa2 -- Class J, $34,505,000, Certificates due December 2049, downgraded to Ba3 from Baa3 -- Class K, $44,363,000, Certificates due December 2049, downgraded to B2 from Ba1 -- Class L, $29,575,000, Certificates due December 2049, downgraded to B3 from Ba2 -- Class M, $29,575,000, Certificates due December 2049, downgraded to Caa1 from Ba3 -- Class N, $49,292,000, Certificates due December 2049, downgraded to Caa2 from B1 -- Class O, $34,505,000, Certificates due December 2049, downgraded to Caa3 from B2 -- Class P, $34,505,000, Certificates due December 2049, downgraded to Caa3 from B3 Moody's is downgrading the deal, which was previously put on review for downgrade, due to deteriorating pool performance. As of the September 22, 2008 distribution date, the transaction's aggregate collateral balance is $ 985.8 million, the same as that at issuance. The Certificates are currently collateralized by 114 classes of CMBS securities from 18 separate transactions (89.5% of the pool balance) and three classes from one CRE Re-Remic transaction (10.5%). Since issuance, among the Moody's rated securities (49.7%), there have been no upgrades or downgrades to the CMBS securities. Credit estimates were performed on 51 non-Moody's rated CMBS / CRE Re-Remic classes (50.3%) resulting in a deterioration in credit quality. Moody's uses a weighted average rating factor (WARF) as an overall indicator of the credit quality of a CRE CDO transaction. Based on Moody's analysis, the current WARF is 5,875 compared to 4,522 at issuance. Moody's reviewed the ratings or performed credit estimates on all the collateral supporting the Certificates. The distribution is as follows: Baa1 -- Baa3 (1.9% compared to 8.3% at issuance), Ba1 -- Ba3 (26.0% compared to 31.1% at issuance), B1-B3 (20.9% compared to 24.5% at issuance), and Caa1-NR (51.2% compared to 36.1% at issuance). The CMBS securities are from pools securitized between 2004 and 2007. The two largest vintage exposures are 2006 (58.4%) and 2007 (27.3%). The five largest CMBS/CRE Re-Remic exposures are JPMCC 2007-CB18 (10.9%), ARCAP 2006-RR7 (10.5 %), BSCMS 2007-PWR15 (7.8%), BSCMS 2006-PWR14 (6.9%) and MSC 2006-IQ12 (6.6%). Moody's periodically completes full reviews in addition to monitoring transactions on a monthly basis. Moody's had placed 15 classes on review for possible downgrade as summarized in a press release dated May 16, 2008. Moody's prior full review is summarized in a Presale Report dated July 10, 2007. Moody's has published rating methodologies outlining its analytical approach to surveillance and its approach to rating static commercial real estate collateralized debt obligations. In addition, Moody's has published numerous articles outlining its ratings approach to the various collateral types customarily deposited within these transactions along with other articles on credit issues unique to the sector. The major rating methodologies employed in analyzing this transaction include: -- CMBS: Moody's Approach to Rating Static CDOs Backed by Commercial Real Estate Securities, June 17, 2004 -- this paper details the evolution of its analytic approach to rating CRE CDOs touching on the binomial expansion model, extension risk, correlation, severity rates, pari passu notes, diversity, and interest shortfalls with a discussion of simulation engines, cash flow analysis, scenario analysis, and other elements in Moody's analysis with detailed supplementary information on deriving a CDO collateral loss distribution by simulating pool loss for each CMBS transaction and by simulating default probability and severity for each CMBS certificate; and -- The Inclusion of Commercial Real Estate Assets in CDOs, October 8, 1999 -- this paper describes the development of commercial real estate backed CDOs, speaks to collateral pool analysis including industry classifications, diversification, credit quality, recovery rate, and cash flow characteristics, and refers to other aspects of CMBS as CDO collateral including prepayment risk, sequential pay structure, ability to defer interest payments temporarily, servicer advancing, losses, extension risk, recovery rates, and servicer risk. CFM US: Court Okays Amendment of Huntington Closing Agreement ------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware approved CFM U.S. Corp. and its debtor-affiliate's amended Huntington Closing Agreement with Sheet Metal Workers International Association. The Debtors and the union are parties to a collective bargaining agreement that expires on May 6, 2010. On April 9, the Debtors gave the union written notice that later this year, they would be closing their facility at 1000 East Market Street, Huntington, Indiana. After engaging in negotiations on the closing of the facility, the Debtors and the union reached a Closing Agreement on July 29 and July 30. Under the agreement, the Debtors will work with the union to secure any local, state or federal funding to provide retraining for bargaining unit employees affected by the closing of the facility. The Debtors will pay all bargaining unit employees affected by the closing, including unused and accrued vacation with their last payroll checks. The Debtors agreed to sign the Addendum to the Collective Bargaining Agreement Adopting the 2008 Alternative Schedule regarding the union's national Pension Fund. As agreed, the Debtors will provide health insurance coverage to affected bargaining unit employees in compliance with the Contract. The Debtors agreed to offer any buyer of the facility the names and last known contact information for the bargaining unit employees who worked at the facility. The Debtors will follow the Contract for any remaining bargaining unit work done by the employees during the phase down and the closing of the facility. The Contract will end when the last bargaining unit employee is terminated as a result of the closing of the facility. During the phase down and closing of the facility, the Debtors can use outside contractors and non-bargaining unit employees to close the facility in an orderly manner. Any dispute between the parties on the terms of the Closing Agreement will be resolved pursuant to the grievance and arbitration procedures contained in the Contract. On Aug. 26, the Debtors and the union amended the Closing Agreement. Under the amended agreement, the Debtors will provide the remaining employed union workers with a monthly payment in lieu of providing insurance to those employees pursuant to the terms of the Contract. The two parties agreed that these Montly Payments will be made to each union employee during the employment and during the month after the worker is laid off: Employee's Current Coverage Category Monthly Payment ------------------------------------ --------------- Single $477 Employee Plus One $943 Family $1,622 The parties agreed that all remaining provisions of the Closing Agreement remain valid. The Court held a hearing on the amended agreement on Sept. 18. About CFM Headquartered in Huntington, Indiana, CFM U.S. Corp. -- http://www.majesticproducts.com/-- manufactures two product categories: Hearth and Heating Products and Barbecue and Outdoor Products. The company and its affiliate, CFM Majestic U.S. Holdings, Inc., filed for Chapter 11 protection on April 9, 2008 (Bankr. D. Del. Lead Case No. 08-10668). William Pierce Bowden, Esq., at Ashby & Geddes, represents the Debtors. The Debtors selected Administar Services Group LLC as their claims agent. The U.S. Trustee for Region 3 appointed seven creditors to serve on an Official Committee of Unsecured Creditors. Patrick J. Reilley, Esq., at Cole Schotz Meisel Forman & Leonard, P.A., represents the Committee in these cases. As reported in the Troubled Company Reporter on June 18, 2008, the Debtors' summary of schedules showed total assets of $91,316,300 and total debts of $32,7367,890. The Debtors' Canadian affiliates filed for protection under Companies' Creditors Arrangement Act with the Ontario Court of Justice on April 9, 2008. CFM US: Seeks Court Okay to Dispose of Books & Records ------------------------------------------------------ CFM U.S. Corp. and its debtor-affiliate, CFM Majestic U.S. Holdings, Inc., ask the U.S. Bankruptcy Court for the District of Delaware for permission to dispose of certain books and records. The Debtors tell the Court that the documents to be disposed of -- which include financial and management records -- are of inconsequential to the estate and irrelevant to the wind-down of the Debtors' operations, resolution of claims against the Debtors, any pending litigation, or any potential litigation of preference or other avoidance actions. As a result of the sale of all of the Debtors' assets, the Debtors no longer need to retain the documents currently in their possession. A list of the documents is available at: http://bankrupt.com/misc/CFM_records_to_be_disposed_of.pdf The Debtors are winding-down their operations and recently closed on the sale of all their assets. The Debtors assure the Court that they have spent a substantial period of time reviewing their records to determine, among other things, records that could be disposed of. The Debtors assure the Court that the documents are not necessary to in the performance of their duties and responsibilities, any pending litigation, the filing of any tax returns, the resolution of claims against the Debtors, and in any potential causes of action that the Debtors may have. The Debtors tell the Court that they have no proposed future operations and the documents have no independent value to the Debtors' Chapter 11 cases. According to the Debtors, the cost to store the records far exceeds the benefit of maintaining the records. The Debtors have determined that disposing of the records will advance their efforts for an orderly wind-down of the cases by eliminating this unnecessary cost. The Debtors are exploring various means of disposing of the records. About CFM Headquartered in Huntington, Indiana, CFM U.S. Corp. -- http://www.majesticproducts.com/-- manufactures two product categories: Hearth and Heating Products and Barbecue and Outdoor Products. The company and its affiliate, CFM Majestic U.S. Holdings, Inc., filed for Chapter 11 protection on April 9, 2008 (Bankr. D. Del. Lead Case No. 08-10668). William Pierce Bowden, Esq., at Ashby & Geddes, represents the Debtors. The Debtors selected Administar Services Group LLC as their claims agent. The U.S. Trustee for Region 3 appointed seven creditors to serve on an Official Committee of Unsecured Creditors. Patrick J. Reilley, Esq., at Cole Schotz Meisel Forman & Leonard, P.A., represents the Committee in these cases. As reported in the Troubled Company Reporter on June 18, 2008, the Debtors' summary of schedules showed total assets of $91,316,300 and total debts of $32,7367,890. The Debtors' Canadian affiliates filed for protection under Companies' Creditors Arrangement Act with the Ontario Court of Justice on April 9, 2008. CFM US: Court Extends Lease Decision Period Until November 6 ------------------------------------------------------------ The Hon. Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware granted CFM U.S. Corp. and its affiliate's request to extend their deadline to assume or reject unexpired leases of nonresidential real property for 90 days, through and including Nov. 6, 2008. Headquartered in Huntington, Indiana, CFM U.S. Corp. -- http://www.majesticproducts.com/-- manufactures two product categories: Hearth and Heating Products and Barbecue and Outdoor Products. The company and its affiliate, CFM Majestic U.S. Holdings, Inc., filed for Chapter 11 protection on April 9, 2008 (Bankr. D. Del. Lead Case No. 08-10668). William Pierce Bowden, Esq., at Ashby & Geddes, represents the Debtors. The Debtors selected Administar Services Group LLC as their claims agent. The U.S. Trustee for Region 3 appointed seven creditors to serve on an Official Committee of Unsecured Creditors. Patrick J. Reilley, Esq., at Cole Schotz Meisel Forman & Leonard, P.A., represents the Committee in these cases. As reported in the Troubled Company Reporter on June 18, 2008, the Debtors' summary of schedules showed total assets of $91,316,300 and total debts of $32,7367,890. The Debtors' Canadian affiliates filed protection under Companies' Creditors Arrangement Act with the Ontario Court of Justice on April 9, 2008. CHUKCHANSI ECONOMIC: Moody's Holds 'B2' Rating; Outlook Negative ---------------------------------------------------------------- Moody's Investors Service revised the rating outlook on Chukchansi Economic Development Authority to negative from stable. It also affirmed the B2 corporate family rating, B1 probability of default rating and B2 senior note rating. The change in outlook reflects Moody's expectation that the challenging economic environment could continue to negatively affect EBITDA and preclude a sufficient improvement in financial condition in the near term to adequately position Chukchansi in its rating category. In Moody's opinion, the downward economic pressure observed in the first half of 2008 is unlikely to abate in the near term and could more than offset the benefits linked to the recently completed expansion project. While additional non-gaming amenities and hotel rooms aim at capturing guests from a broader geographic radius, extend the length of stay and ultimately increase revenues, they might not provide the expected upside in a weak economy. As a result, Moody's believes that total debt/EBITDA could remain above 5 times in the near term, which weakly positions the Authority in its rating category. Additionally, free cash flow is expected to be near breakeven in the next twelve months, constrained by tribal distributions and capital spending beyond maintenance capex. The outlook could return to stable, should total debt/EBITDA decline and remain sustainably below 5 times, the expansion project resulting in improved EBITDA. A downgrade is likely if total debt/EBITDA deteriorates and approaches 6 times or if free cash flow turns materially negative. Moody's assigned a B2 corporate family rating to Chukchansi on October 25, 2005. Ratings affirmed: -- B2 Corporate Family Rating -- B1 Probability of Default Rating -- B2 Senior Note Rating (LGD assessment slightly revised to LGD4/66% from LGD4/65%) Chukchansi is a wholly owned enterprise of the Picayune Rancheria of Chukchansi Indians, a federally-recognized Indian tribe with approximately 1,250 enrolled members. Chukchansi operates the Chukchansi Gold Resort & Casino, a property located 35 north of Fresno, California. CLAIRE'S STORES: Moody's Confirms PD Rating at 'Caa1' ----------------------------------------------------- Moody's Investors Service confirmed Claire's Stores, Inc., long term ratings, including its probability of default rating at Caa1. In addition, Moody's affirmed Claire's speculative grade liquidity rating at SGL-4. The rating outlook is negative. The confirmation reflects Moody's view that the Caa1 appropriately reflects higher-than-average probability of default over the near to medium term, given what Moody's views as an overleveraged and unsustainable capital structure. It also reflects the view that the company will be able to fund its free cash flow deficits with excess cash over the next twelve months, providing it some time in order to improve operating performance. In addition, given the reduction in capital expenditures, improvements in working capital, and the company's election to defer paying cash interest on a portion of its debt, the confirmation reflects that Claire's is not likely to need to utilize its revolving credit facility over the next twelve months. Claire's Caa1 corporate family rating is primarily driven by the company's very weak credit metrics as a result of its heavy debt load and its weak operating performance. The rating also considers the company's concentration in specialty retail, the current challenging economic environment, and the likelihood of the company continuing to generate free cash flow deficits. Positive ratings consideration is given to the fact that there are no near-term scheduled debt maturities, and the fact that Claire's revolving credit facility has no financial covenants. The negative outlook reflects the risk Claire's faces that it will be unable to support its capital structure without stabilizing its free cash flow deficit and improving its operating performance over the medium term. The SGL-4 reflects Claire's weak liquidity primarily driven by its continued free cash flow deficits. While Claire's will likely be able to finance its level of free cash flow deficits with excess cash over the next twelve months, a further weakening in operating results and/or working capital changes during the next twelve months could rapidly absorb this excess cash cushion. In addition, Claire's ability to finance its free cash flow deficits is driven by the fact that it is able to defer paying a portion of its interest expense in cash. The company currently has adequate external liquidity provided by a covenant free $200 million revolving credit facility. The revolving credit facility is only expected to be utilized for about $6 million of letters of credit, leaving $194 million available and has no financial covenants. These ratings are confirmed: -- Corporate family rating at Caa1; -- Probability of default rating at Caa1; -- $200 million senior secured revolving credit facility at B2 (LGD3; 32%); -- $1,450 million senior secured term loan to B2 (LGD3, 32%); -- Senior unsecured notes at Caa2 (LGD4, 67%); -- Senior subordinated notes at Caa3(LGD6, 93%). This rating is affirmed: -- Speculative grade liquidity rating at SGL-4. Claire's Stores, Inc., headquartered in Pembroke Pines, Florida, is the leading specialty retailer of value-price jewelry and fashion accessories for pre-teens, teenagers, and young adults. It operates 3,053 stores in North America and Europe. Revenues for the fiscal year ended LTM period ending August 2, 2008 were about $1.5 billion. COLLYBUS CDO: Moody's Cuts Ratings on Two Note Classes to 'C' ------------------------------------------------------------- Moody's Investors Service has downgraded and left on review for possible downgrade, the ratings on the notes issued by Collybus CDO I Ltd.: Class Description: $675,000,000 Class A-2 Senior Secured Floating Rate Notes due 2047 -- Prior Rating: Aa3, on review for possible downgrade -- Prior Rating Action Date: June 5, 2008 -- Current Rating: Baa2, on review for possible downgrade Class Description: $55,000,000 Class A-3 Senior Secured Floating Rate Notes due 2047 -- Prior Rating: A1, on review for possible downgrade -- Prior Rating Action Date: June 5, 2008 -- Current Rating: B2, on review for possible downgrade Class Description: $53,000,000 Class B Senior Secured Floating Rate Notes due 2047 -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Action Date: June 5, 2008 -- Current Rating: Caa2, on review for possible downgrade In addition, Moody's downgraded the ratings on these notes: Class Description: $35,000,000 Class C Deferrable Senior Secured Floating Rate Notes due 2047 -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Action Date: June 5, 2008 -- Current Rating: C Class Description: $44,000,000 Class D Deferrable Senior Secured Floating Rate Notes due 2047 -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Action Date: June 5, 2008 -- Current Rating: C According to Moody's, these rating actions are as a result of the increased deterioration in the credit quality of the transaction's underlying collateral pool consisting primarily of structured finance securities. CREEK COURSE: Case Summary & Three Largest Unsecured Creditors -------------------------------------------------------------- Debtor: The Creek Course, LLC 101 Back Creek Drive Middletown, DE 19709 Bankruptcy Case No.: 08-12219 Chapter 11 Petition Date: September 25, 2008 Court: District of Delaware (Delaware) Debtor's Counsel: Anthony M. Saccullo, Esq. asaccullo@ciardilaw.com Ciardi, Ciardi & Astin, P.C. 919 N. Market Street, Suite 725 Wilmington, DE 19899-2323 Tel: (302) 658-1100 Fax: (302) 658-1300 Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million A list of the Debtor's largest unsecured creditors is available for free at: http://bankrupt.com/misc/deb08-12219.pdf DD-OH FAMILY: Hearing on Going-Out-of-Business Sale Set for Oct. 6 ------------------------------------------------------------------ John Anastasi at Bucks County Courier Times reports that the U.S. Bankruptcy Court for the District of New Jersey has scheduled an Oct. 6 hearing for DD-OH Family Partners LLC's proposed going-out- of-business sale. Bucks County Courier quoted the attorney for DD-OH Family Hal Baume, Esq., at Fox Rothschild LLP as saying, "Our immediate objective is to hold a going-out-of-business sale to generate money for the creditors. Then it will be determined if it is feasible to reorganize around a smaller number of stores. But that analysis is not done yet." Acording to Bucks County Courier, D&D Home Furnishings and Oskar Huber Furniture & Design merged operations six months ago and operated under DD-OH Family, "hoping to achieve economies of scale in purchasing and advertising." Court documents indicate that a few months after the merger, DD-OH Family quickly saw sales decline 40 to 50 percent from pre-merger levels, while costs of inventory "skyrocketed, affected by the sharp increase in the cost of manufacturing and shipping finished goods." Bucks County Courier relates that DD-OH's profit margins were slashed by higher freight costs and fuel prices, which made it harder to secure financing. According to court documents, DD-OH Family owes: -- $729,000 to Sealy Mattress Co., -- $409,000 to Hooker Furniture Corp., -- $308,000 to Kohl's Department Stores, -- $220,000 to Lane Home Furnishings, -- $131,000 to KYW TV-3, and -- $118,830 to ABC Inc. Bucks County Courier states that the merger lessened expenses by allowing DD-OH Family to have better deals on purchases, advertisements, warehousing, and overhead due to their size. "[Despite that], the reductions were more than offset by the declining sales, tighter credit options, increased fuel costs and the sagging economy. This left the [company] with few options and the ultimate decision was to pursue the [going out of business] sale and file for relief under Chapter 11," court documents say. About DD-OH Family Upper Southampton-based DD-OH Family Partners LLC runs D&D Home Furnishings and Oskar Huber Furniture & Design. It operates nine locations, including a D&D Home Furnishings store on Route 309 in Hatfield Township and an Oskar Huber Furniture & Design on Second Street Pike in Upper Southampton. The company filed for Chapter 11 bankruptcy protection on Sept. 22, 2008 (Bankr. D. N.J. Case No. 08-28140). It disclosed assets below $50,000 and debts below $50,000 when it filed for bankruptcy. DETROIT MEDICAL: Fitch Rates $342.1MM Refunding Bonds 'BB' ---------------------------------------------------------- Fitch Ratings has assigned a 'BB' rating to approximately $342.1 million Michigan State Hospital Finance Authority hospital revenue and refunding bonds series 2008 (Detroit Medical Center Obligated Group). In addition, Fitch upgrades to the rating on Detroit Medical Center's approximately $524.5 million of outstanding bonds to 'BB' from 'B+'. The Rating Outlook has been revised to Stable from Positive. Bond proceeds are expected to refund DMC outstanding series 1988, 1993A and 1995 bonds (aggregating $139.6 million), to fund approximately $85 million of prior and future capital expenditures, fund $92 million of new capital projects including a new outpatient center for Children's Hospital of Detroit, fund a debt service reserve fund and pay associated costs of issuance. The series 2008 bonds are expected to be structured as traditional fixed rate bonds with pricing the week of Oct. 13 via negotiated sale. The 'BB' rating reflects the improved reimbursement under the Michigan Medicaid program, excellent management practices resulting in year over year improvement in operating performance since 2003 and DMC's excellent clinical outcomes and reputation. As the safety net hospital in metropolitan Detroit, DMC's payor mix is heavily weighted towards Medicaid payors. In fiscal 2003, the state implemented a provider tax program to increase the federal match under the Medicaid program. Fitch believes the program in its current form should continue to provide adequate funding to provide services to the Medicaid population. In addition, DMC's improved profitability reflects strong management practices which have controlled expenses and increased efficiency and coordination throughout the system. The renegotiated contract with Wayne State University physicians has increased the productivity of certain faculty practioners as well as improved the environment for independent physicians admitting to DMC and allowed for successful recruitment of new physicians and specialists. DMC has posted year over year improvements in operating profitability since fiscal 2003. Operating profitability has improved in each of the last five fiscal years with operating EBITDA margins strengthening from negative 0.3% in fiscal 2003 to a solid 8.0% in fiscal 2007. Not surprisingly, coverage of pro forma maximum annual is a solid 2.5 times in fiscal 2007. Finally, DMC hospitals have been recognized nationally for their clinical excellence. In 2008, DMC was the only hospital system with three hospitals (Children's, Harper and Sinai-Grace) named to US News and World Reports Best Hospitals List. Further, four DMC hospitals were among the 33 hospital named '2008 Top Hospitals' for quality and patient safety by Leapfrog Group. Primary credit concerns include DMC's thin liquidity position, a high level of bad debt expense and increased debt burden. At July 31, 2008 DMC had $133.5 million of unrestricted cash and investments which translates into very low 30 days cash on hand and 25.4% of long-term debt. However, Fitch expects liquidity measures to improve from reimbursement of prior capital expenditures from bond proceeds and DMC fully funding its pension obligation as of Jan. 1, 2008. DMC's bad debt as percentage of total revenue was a high 13.8% of total revenues in 2007. Given DMC's role as the safety net hospital, the tougher economic conditions in southeast Michigan and the on-going cost shifting onto employees and patients Fitch believes bad debt expense will be a continuing challenge. Lastly, upon closing of the series 2008 bond issue maximum annual debt service increases to $61.2 million from $57.3 million causing historical pro-forma MADS coverage to drop to 2.5x in 2007 from 2.7x actual MADS coverage. The Stable Rating Outlook reflects Fitch's belief that DMC will maintain its operating profitability at current levels. Management expects to maintain liquidity at or above at least 50 DCOH as the system balances liquidity growth against capital reinvestment in operations. Liquidity growth from current levels will be necessary for upward movement in the rating. Detroit Medical Center operates eight hospitals, five of which are located on the main campus west of downtown Detroit. In 2007, DMC had total revenues of $1.9 billion. DMC will covenant to provide audited annual financial statements, utilization data and a management discussion and analysis as well as quarterly financial statements, utilization data and a MD&A. Historically, DMC's disclosure to Fitch has been excellent. DIOGENES CDO: Moody's Chips $364.8MM Notes Rating to 'Ca' --------------------------------------------------------- Moody's Investors Service has downgraded the note issued by Diogenes CDO II, Ltd.: Class Description: Up to $364,800,000 Class A-1 Floating Rate Notes Due June 15, 2049 -- Prior Rating: Caa3, on review for possible downgrade -- Current Rating: Ca According to Moody's, the rating actions reflect increased deterioration in the credit quality of the underlying portfolio. DOMARK INT'L: Liquidity Concerns Cue Auditor's Substantial Doubt ---------------------------------------------------------------- Davis, Fla.-based Kramer Weisman and Associates LLP raised substantial doubt about the ability of DoMark International, Inc., to continue as a going concern after it audited the company's financial statements for the year ended May 31, 2008. The auditor reported that the company has operating and liquidity concerns, has incurred an accumulated deficit of $1,431,970 through the period ended May 31, 2008, and current liabilities exceeded current assets by $3,828,255 at May 31, 2008. The company has inadequate working capital to maintain or develop its operations, and is dependent upon funds from private investors and the support of certain stockholders. Management is planning to raise any necessary additional funds through loans and additional sales of its common stock. There is no assurance that the company will be successful in raising additional capital. The company posted a net loss of $1,419,170 on total revenues of $15,750 for the year ended May 31, 2008, as compared with a net loss of $12,460 on zero revenues in the prior year. At May 31, 2008, the company's balance sheet showed $14,796,347 in total assets, $4,981,949 in total liabilities, and $9,814,398 in total stockholders' equity. The company's consolidated balance sheet at May 31, 2008, showed strained liquidity with $165,181 in total current assets available to pay $3,993,436 in total current liabilities. A full-text copy of the company's 2008 annual report is available for free at http://ResearchArchives.com/t/s?32d0 Results of Operations Revenues for fiscal 2008 increased to $15,750 from $0.00 during fiscal 2007. This increase in revenue is directly the result of changes in the company's strategic direction in core operations. The company continues to aggressively pursue and devote its resources and focus its direction in building asset value. The company has further refocused in new acquisitions to increase its revenues and cash flow. General and administrative expenses for the fiscal 2008 increased to $1,007,027 as compared with fiscal 2007 of $12,460. This increase is attributed to the company's increase in acquisitions and issuance of stock for assets delivered. Interest expense for fiscal 2008 increased to $245,643 as compared with fiscal 2007. This increase is a result of embedded warrants in certain bond and loan payables of the company's majority owned subsidiary SportsQuest, Inc., which required the company to accrue for the beneficial conversations feature in theses derivatives. The loss for fiscal 2007 increased to ($1,419,170) as compared to fiscal 2007 of ($12,460). The increase is due to the increase in non-cash transactions for assets delivered. No tax benefit was recorded on the expected operating loss for fiscal 2008 and 2007 as required by Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes. For the year ended the company does not expect to realize a deferred tax asset and it is uncertain, therefore the company has provided a 100% valuation of the tax benefit and assets until the company is certain to experience net profits in the future to fully realize the tax benefit and tax assets. Liquidity & Capital Resources The company's operating requirements have been funded primarily on its sale of media content, financing facilities, and sales of its common stock. During the fiscal 2008, the company's net proceeds from the media content were $15,000 as compared with fiscal 2007 of $28,183. The company has received $0.00 in fiscal 2008 as compared with Fiscal 2007 of $50,000 in proceeds from the sale of common stock. The management believes that the cash flows are inadequate to repay the capital obligations and has relied upon the sale of common stock to sustain its operations. Cash provided in operating activities for the fiscal year 2008 was $75,490 compared with ($14,027) for fiscal year 2007. The company has its focus on core operations results in an increase in acquisitions. However the company is still operating in a deficit. The company has depreciation expenses for fiscal 2008 of $449 as compared with fiscal 2007 of $5.00 Cash provided in investing activities was ($724,569) for fiscal 2008, compared with $(302) for fiscal 2007. The company has advanced financing to affiliates of $717,076, and purchased new equipment of $7,493. Cash provided by financing activities was $647,313 for fiscal 2008 as compared with $50,000 for fiscal 2007. Financing activities primarily consisted of proceeds from bond and loan payables from third parties. The company does not have adequate cash flows to satisfy its obligations although have improved cash flow and anticipates has adequate cash flows in the upcoming fiscal period. The company received proceeds from its bond issuance of $733,308. The company received proceeds from its loan payables of $255,205 and has advanced proceeds to its affiliate of ($341,200). DoMark International, Inc., acquires and manages majority owned public entities and privately owned companies in various industries. The company, through its subsidiary, JAVACO, Inc., distributes equipment and tools for cable television and telecommunications industry in North and Latin America. The company, through its other subsidiary, SportsQuest, Inc., creates, develops, and manages high end sports events, as well as executing a growth strategy involving acquisition of diverse and effective sports marketing platforms. Formerly known as DoMar Exotic Furnishings, Inc., the company was incorporated in 2006 and is based in Oviedo, Fla. DPP BEAVERTON: Case Summary & Largest Unsecured Creditor -------------------------------------------------------- Debtor: DPP Beaverton Condominiums LLC 210 S Orange Grove Blvd. Pasadena, CA 91105 Bankruptcy Case No.: 08-25891 Chapter 11 Petition Date: September 25, 2008 Court: Central District of California (Los Angeles) Judge: Richard M Neiter Debtor's Counsel: John P. Schock, Esq. Shock & Shock 210 S Orange Grove #200 Pasadena, CA 91105 Tel: (626) 298-6444 Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million A list of the Debtor's largest unsecured creditors is available for free at: http://bankrupt.com/misc/califcb08-25891.pdf DVA ARENA: Developer Files Appeal on Chapter 11 Case Dismissal -------------------------------------------------------------- Frank Gluck at HeraldTribune.com (Fla.) reports that Sal Diaz- Verson, the developer of DVA Arena, LLC, filed an "emergency appeal" against the dismissal of his company's Chapter 11 case. According to HeraldTribune.com, Mr. Diaz-Verson filed for bankruptcy on the day a foreclosure sale of DVA Arena property had been scheduled. Mr. Diaz-Verson, according to HeraldTribune.com, wanted to stave off $16 million in liens held by Schroeder-Manatee Ranch and other creditors while he searched for financiers to help him get DVA Arena's $70 million hockey arena project in Lakewood Ranch started again. The report says that Schroeder-Manatee, which holds the $6.5 million mortgage, had hoped to reclaim the property and find a new developer to finish the project, the report states. The Hon. Caryl Delano of the U.S. Bankruptcy Court for the Middle District of Florida dismissed DVA Arena's Chapter 11 case when Mr. Diaz Verson failedto make $60,000 in interest payments to Schroeder-Manatee by a Sept. 18 deadline, HeraldTribune.com states. A court hearing is scheduled for Oct. 2 for Mr. Diaz-Verson's appeal, according to HeraldTribune.com. HeraldTribune.com says that Mr. Diaz-Verson explained that he could not sell off some unspecified retirement holdings in time to meet the Sept. 18 payment deadline. Mr. Diaz-Verson has until Oct. 2 to pay the $60,000 in interest he owes to Schroeder-Manatee to avoid losing the unfinished hockey arena in Lakewood Ranch, the report states. Mr. Diaz-Verson said in court filings that he will use some of his retirement funds to pay the debt, HeraldTribune.com relates. About DVA Arena Based in Sarasota, Fla., DVA Arena, LLC owns and operates a hockey arena. The Debtor filed for Chapter 11 reorganization on July 25, 2008 (Bankr. M.D. Fla., Case No. 08-11099). Buddy D. Ford, Esq., of Buddy D. Ford P.A. represents the Debtor as counsel. When the Debtor filed for protection from its creditors, it listed assets of between $10 million and $50 million, and debts of between $10 million and $50 million. ENERGAS RESOURCES: Posts $81,514 Losses for Quarter Ended July 31 ----------------------------------------------------------------- Energas Resources, Inc. posted $81,514 in net losses on $84,109 in net revenues for the three months ended July 31, 2008, compared with $258,699 in net losses on $121,565 in net revenues for three months ended July 31, 2007. The company posted $124,428 in net losses on $204,821 in net revenues for six months ended July 31, 2008, compared with $470,597 in net losses on $260,229 million in net revenues for six months ended July 31, 2007. As of July 31, 2008, Energas' balance sheet showed $3,650,989 in total assets, $450,374 in total liabilities, and $3,200,615 in shareholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended July 31, 2008, are available for free at http://researcharchives.com/t/s?329a About Energas Resources Based in Oklahoma City, Okla., Energas Resources Inc. (OTC BB: EGSR) -- http://www.energasresources.com/-- is primarily engaged in the operation, development, production, exploration and acquisition of petroleum and natural gas properties in the United States through its wholly-owned subsidiary, A.T. Gas Gathering Systems Inc. In addition, the company owns and operates natural gas gathering systems located in Oklahoma, which serve wells operated by the company for delivery to a mainline transmission system. The majority of the company's operations are maintained and occur through A.T. Gas. Going Concern Doubt As reported in the Troubled Company Reporter on May 26, 2008, Murrell, Hall, McIntosh & Co PLLP, in Oklahoma City, Okla., expressed substantial doubt about Energas Resources Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended Jan. 31, 2008, and 2007. The auditing firm pointed to the company's recurring losses from operations. The company is in the process of acquiring and developing petroleum and natural gas properties with adequate production and reserves to operate profitability. However, in excess of 41% of the company's proved reserves are proved not producing or proved undeveloped and will require substantial funds to bring into production. ENVIRONMENTAL TECTONICS: H.F. Lenfest Unit Withdraws Buyout Offer ----------------------------------------------------------------- Environmental Tectonics Corporation disclosed that on Sept. 11, 2008, it was informed by an affiliate of H. F. Lenfest that Lenfest was withdrawing its proposal to purchase all of the publicly traded shares of the common stock of the Company not already owned by Lenfest. H. F. Lenfest is a member of the Board of Directors of the Company and beneficially owns 48.7% of the Company's common stock, on a fully diluted basis assuming the conversion of outstanding convertible notes and convertible preferred stock. Specifically, Mr. Lenfest may be deemed to beneficially own: (a) 2,370,449 shares of common stock, (b) 1,818,182 shares of common stock issuable upon conversion of the 10.0% Senior Subordinated Convertible Note purchased by H.F. Lenfest on February 18, 2003, (c) 606,060 shares of common stock issuable upon conversion of the Series B Convertible Preferred Stock purchased by H.F. Lenfest on April 6, 2006, (d) 449,101 shares of common stock issuable upon conversion of the Series B Cumulative Convertible Preferred Stock purchased by H.F. Lenfest on July 31, 2006, and (e) 1,089,108 shares of common stock issuable upon conversion of the Series C Cumulative Convertible Participating Preferred Stock purchased by H. F. Lenfest on August 23, 2007. In connection with the withdrawal of the acquisition proposal, Mr. Lenfest, who is a member of the Company's Board of Directors and its largest shareholder, stated: "I continue to be optimistic regarding the Company's prospects and remain committed to its success." William F. Mitchell, the Company's Chairman and Chief Executive Officer, stated: "The Company appreciates all of the support that Mr. Lenfest has provided to the Company and looks forward to continuing to work with Mr. Lenfest to build on the Company's recent successes to enhance shareholder value." About Environmental Tectonics Southampton, Pennsylvania-based Environmental Tectonics Corporation (AMEX: ETC) -- http://www.etcusa.com/-- designs, develops, installs and maintains aircrew training systems (aeromedical, tactical combat and general), disaster management training systems and services, entertainment products, sterilizers (steam and gas), environmental testing products, hyperbaric chambers and related products for domestic and international customers. At May 30, 2008, the company had long-term obligations of $19.1 million, as compared with long-term obligations of $18.2 million at Feb. 29, 2008. At May 30, 2008, the company's consolidated balance sheet showed $35.2 million in total assets, $36.2 million in total liabilities, $6.0 million in Series B cumulative convertible preferred stock, and $3.3 million in Series C cumulative convertible participating preferred stock, resulting in a $10.4 million stockholders' deficit. The company had a net loss of $1.5 million during the first fiscal quarter ended May 30, 2008, compared to a net loss of $5.7 million for the first quarter of fiscal 2008. The company attributed the decrease in net loss to a significant increase in sales and corresponding gross profit and reduced claim settlement costs, attributable to claims costs associated with a U.S. Navy settlement. Acting as partial offsets were higher research and development expenses and interest expenses. ENVIRONMENTAL TECTONICS: Amex Accepts Compliance Plan ----------------------------------------------------- Environmental Tectonics Corporation reported that on Sept. 16, 2008, the American Stock Exchange had accepted the company's Compliance Plan and agreed to continue the listing of the company's common stock through at least March 16, 2009, subject to the company attaining certain milestones set forth. The Plan had been submitted on July 31, 2008, in response to a letter received from AMEX on July 2, 2008, stating that the company was not in compliance with Section 1003 of the AMEX Company Guide. Specifically, the company is not in compliance with: -- Section 1003(a)(i) of the AMEX Company Guide with stockholders' equity of less than $2,000,000 and losses from continuing operations and net losses in two out of its three most recent fiscal years, -- Section 1003(a)(ii) of the AMEX Company Guide with stockholders' equity of less than $4,000,000 and losses from continuing operations and net losses in three out of its four most recent fiscal years, and -- Section 1003(a)(iii) of the AMEX Company Guide with stockholders' equity of less than $6,000,000 and net losses in its five most recent fiscal years. This non-compliance by the company with Section 1003 of the AMEX Company Guide made the company's common stock subject to being delisted from AMEX. The Company has been granted an extension until March 16, 2009, to regain compliance with the continued listing standards and must meet certain milestones during that timeframe. The Company will be subject to periodic review by AMEX Exchange Staff during the extension period. Failure to make progress consistent with the Plan or to regain compliance with the continued listing standards by the end of the extension period could result in the company being delisted from the AMEX. As a consequence of falling below the continued listing standards of the AMEX Company Guide, the company will be included in a list of issuers that are not in compliance with AMEX's continued listing standards. Additionally, an indicator will be added to the company's trading symbol noting the company's non-compliance with the continued listing standards of the AMEX Company Guide until such time as the company regains compliance with the applicable listing standards. About Environmental Tectonics Southampton, Pennsylvania-based Environmental Tectonics Corporation (AMEX: ETC) -- http://www.etcusa.com/-- designs, develops, installs and maintains aircrew training systems (aeromedical, tactical combat and general), disaster management training systems and services, entertainment products, sterilizers (steam and gas), environmental testing products, hyperbaric chambers and related products for domestic and international customers. At May 30, 2008, the company had long-term obligations of $19.1 million, as compared with long-term obligations of $18.2 million at Feb. 29, 2008. At May 30, 2008, the company's consolidated balance sheet showed $35.2 million in total assets, $36.2 million in total liabilities, $6.0 million in Series B cumulative convertible preferred stock, and $3.3 million in Series C cumulative convertible participating preferred stock, resulting in a $10.4 million stockholders' deficit. The company had a net loss of $1.5 million during the first fiscal quarter ended May 30, 2008, compared to a net loss of $5.7 million for the first quarter of fiscal 2008. The company attributed the decrease in net loss to a significant increase in sales and corresponding gross profit and reduced claim settlement costs, attributable to claims costs associated with a U.S. Navy settlement. Acting as partial offsets were higher research and development expenses and interest expenses. EPICEPT CORP: Amends DURECT License; Gets $2.25MM Cash Payment -------------------------------------------------------------- EpiCept Corporation has amended its Dec. 20, 2006 licensing agreement with DURECT Corporation granting DURECT exclusive, worldwide rights to certain EpiCept intellectual property for a transdermal patch containing bupivacaine for the treatment of back pain. Under the terms of the amended agreement, EpiCept has granted DURECT royalty-free, fully paid up, perpetual and irrevocable rights to the intellectual property licensed as part of the original agreement in exchange for a cash payment of $2,250,000 from DURECT. EpiCept intends to use the proceeds of this non-dilutive cash payment as working capital and for general corporate purposes as the Company prepares for the launch of Ceplene(R) (histamine dihydrochloride) following receipt of final marketing authorization in Europe, which EpiCept anticipates receiving within the next several weeks. About EpiCept Corporation Based in Tarrytown, New York, EpiCept Corporation (NASDAQ:EPCT) -- http://www.epicept.com/-- is a specialty pharmaceutical company focused on the development of pharmaceutical products for the treatment of cancer and pain. The company has a portfolio of five product candidates in active stages of development. It includes an oncology product candidate submitted for European registration, two oncology compounds, a pain product candidate for the treatment of peripheral neuropathies and another pain product candidate for the treatment of acute back pain. The two wholly owned subsidiaries of the company are Maxim, based in San Diego, California, and EpiCept GmbH, based in Munich, Germany, which are engaged in research and development activities. Going Concern Doubt Deloitte & Touche LLP, in Parsippany, New Jersey, expressed substantial doubt about EpiCept 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 pointed to the company's recurring losses from operations and stockholders' deficit. The company disclosed in its Form 10-Q for the second quarter ended June 30, 2008, a net loss of $7,765,000. EpiCept Corp.'s consolidated balance sheet at June 30, 2008, showed total assets of $3,093,000, total liabilities of $22,598,000, and a stockholders' deficit of $19,505,000, compared to a deficit of $14,177,000 at Dec. 31, 2007. The company said it expects to incur substantial net losses, in the aggregate and on a per share basis, for the foreseeable future as it attempts to market and sell Ceplene(R). "We are unable to predict the extent of these future net losses, or when we may attain profitability, if at all. These net losses, among other things, have had and will continue to have an adverse effect on our stockholders' equity. We anticipate that for the foreseeable future our ability to generate revenues and achieve profitability will be dependent on the successful commercialization of Ceplene(R). There is no assurance that we will be able to obtain or maintain governmental regulatory approvals to market Ceplene(R) in Europe. If we are unable to generate significant revenue from Ceplene(R), or attain profitability, we may not be able to sustain our operations." ESTATE FINANCIAL: Files List of 20 Largest Unsecured Creditors -------------------------------------------------------------- Estate Financial Inc. files a list of its 20 largest unsecured creditors. Name of Entity Nature of Claim Amount of Claim -------------- --------------- --------------- Estate Financial Investment $39,305872 Mortgage Fund LLC Chapter 11 Trustee 333 S. Grand Avenue Los Angeles, CA 90071 Conselho Supremo da Investment $650,090 Sociedade do Espirito Santo P.O. Box 247 Santa Clara, CA 95052-0247 Jim W. Davis Investment $575,209 P.O. Box 15 Lemoore, 93245s John L. Sommer Investment $574,172 5094 Avenida Hacienda Tarzana, CA 91356-4223 Thomas K. Schultheis Investment $504,581 Toni L. Schultheis 4455 Via Bendita Santa Barbara, CA 93110 Burdette H. Andersen Investment $434,222 Georgina C. Andersen Trustees of the Andersen Living Trust Dated February 4, 1985 565 Oak Lane Paso Robles, CA 93446 Clifford Andreas Munk Investment $409,620 Trustee of the Clifford Andreas Munk and Lois Elaine Munk Revocable Trust Dated April 10, 1991 P.O. Box 433 Paso Robles, CA 93447 Frances L. Bellis, IRA Investment $384,188 P.O. Box 548 Paso Robles, CA 93447 Marilynn M. Hanson, Investment $367,500 Trustee of the Restated Marilynn M. Hanson Trust Dated June 15, 2004 5030 Vineyard Drive Paso Robles, CA 93446 Donna & Robert Berg Investment $353,247 Foundation 5161 Vineyard Drive Paso Robles, CA 93446 Melvin L. DeYoung Investment $353,237 Marjorie L. DeYoung 312 Travis Drive Los Osos, CA 93402 Nancy Lee Missakian Trotter Investment $325,537 Trustee of The Nancy Lee Missakian Trotter Trust Dated August 11, 1998 amended November 5, 2002 3901 Laguna Blanca Drive Santa Barbara, CA 93110 John G. Henry, M.D. Investment $320,103 Pension Fund 1905 Hidden Valley Road Templeton, CA 93465 Robin Fairbairn Investment $308,155 Rossie Fairbairn 2195 Cloudy Meadow Road Templeton, CA 93465 Bryan Cave LLP Investment $308,101 120 Broadway, Suite 300 Santa Monica, CA 90401- 2386 Marjorie L. Jacobsen Investment $307,530 Trustee of the Marjorie La Verne Jacobsen 2002 Revocable Trust Dated August 19, 2002 261 Leighton Cambria, CA 93428 Lorraine Cagliero Investment $272,000 Trustee of the Cagliero Family Trust Dated September 1971 Survivors Trust 76362 Vineyard Cyn. Rd. San Miguel, CA 93451 Richard G. Alvarez Investment $252,224 Patricia A. Alvarez 4750 N. Engleheart Ave. Reedley, CA 93654 Clavis Development Investment $247,874 International LLC 300F Danville Boulevard, Ste. #547 Alamo, CA 94507 Russell F. Beglau, Trustee Investment $235,328 of the Russell F. Beglau Family Trust under agreement dated 7/24/91 6030 Kathy Court San Luis Obispo, CA 9340 Five creditors of Paso Robles, California-based Estate Financial Inc. -- http://www.estatefinancial.com/-- filed an involuntary chapter 11 petition against the real estate broker on June 25, 2008 (Bankr. C.D. Calif. Case Number 08-11457). Petitioner Steve Gardality asserted a claim of $6,269,768. Estate Financial Inc. consented to the bankruptcy filing on July 16, 2008. A Chapter 11 trustee, Thomas P. Jeremiassen, was appointed by the Court on July 23, 2008. Estate Financial Mortgage Fund, LLC, is a fund organized by sole manager Estate Financial Inc. to invest in construction loans for residential and commercial properties. The Fund filed for Chapter 11 protection on July 1, 2008 (Bankr. C.D. Calif. 08-11535). Lewis R. Landau, Esq., in Calabasas, California, represents the Debtor as counsel. When the Fund filed for protection from its creditors, it listed assets of more than $100,000,000, and debts of $100,001 to $1,000,000. Bradley D. Sharp was appointed as Chapter 11 trustee for the case. EURAMAX INTERNATIONAL: Moody's Reviews Ratings for Possible Cut -------------------------------------------------------------- Moody's Investors Service placed the ratings of Euramax International, Inc. under review for possible downgrade. Moody's believes that the risk of financial covenant violations in 2008 has heightened due to growing softness in the company's end- markets, particularly within its European operations and building products segment. Moody's believes these markets will continue to soften into 2009. As a result, the company's access to its revolving credit facility may be limited by financial covenant challenges. Specifically, the company's maximum leverage ratio begins to step down in the third quarter of 2008 and further tightens into 2009. In order to fully consider these matters, Moody's will look to clarify and review 1) the third quarter operating results and 2009 business outlook, 2) the likelihood of covenant compliance over the near term and the company's ability to re-negotiate financial covenants with its lenders, if necessary, and 3) the financial strategy of the company's sponsor. Moody's expects this review to be completed within 45 days. Ratings Under Review: Issuer: Euramax International, Inc. -- Corporate Family Rating, B2 -- First Lien Sr. Secured Term Loan, B1 (LGD3, 34%) -- First Lien Sr. Secured Revolver, B1 (LGD3, 34%) -- Second Lien Sr, Secured Term Loan, Caa1 (LGD5, 81%) -- Outlook, Changed To Review for Possible Downgrade From Negative Issuer: Euramax Netherlands B.V. -- First Lien Sr. Secured Term Loan, B1 (LGD3, 34%) -- First Lien Sr. Secured Revolver, B1 (LGD3, 34%) -- Outlook, Changed To Review for Possible Downgrade From Negative Headquartered in Norcross, Georgia, Euramax International Inc. is an international producer of value-added aluminum, steel, vinyl and fiberglass products. FANNIE MAE: FBI Investigating Firm's Financial Troubles -------------------------------------------------------- Bloomberg News reported that the Federal Bureau of Investigation is probing the financial troubles of American International Group, Lehman Brothers, Fannie Mae and Freddie Mac. Evan Perez at The Wall Street Journal relates that law enforcement officials said that the FBI's preliminary inquiries are focusing on whether fraud helped cause some of the troubles at these four companies. Stephen Foley at The Independent reports that the FBI are checking documents and e-mails related to the collapse of Lehman Brothers and AIG and the events leading to the nationalization of Fannie Mae and Freddie Mac. The Indpendent states that the FBI launched more than 500 prosecutions against mortgage brokers and appraisers who helped foist millions of inappropriate loans on people who could never afford to pay them back. According to WSJ, the U.S. Attorney in Brooklyn has brought charges against brokers who allegedly tricked some institutional investors into purchasing risky auction-rate securities. About Fannie Mae The Federal National Mortgage Association -- (FNMA) (NYSE: FNM) -- commonly known as Fannie Mae, is a shareholder-owned U.S. government-sponsored enterprise. Fannie Mae has a federal charter and operates in America's secondary mortgage market, providing mortgage bankers and other lenders funds to lend to home buyers at low rates. Fannie Mae was created in 1938, under President Franklin D. Roosevelt, at a time when millions of families could not become homeowners, or risked losing their homes, for lack of a consistent supply of mortgage funds across America. The government established Fannie Mae to expand the flow of mortgage funds in all communities, at all times, under all economic conditions, and to help lower the costs to buy a home. In 1968, Fannie Mae was re-chartered by the U.S. Congress as a shareholder-owned company, funded solely with private capital raised from investors on Wall Street and around the world. Fannie Mae is the U.S. largest mortgage buyer, according to The New York Times. FAWCETT BOAT: Reorganization Plan OKd, Emerges from Chapter 11 -------------------------------------------------------------- Katie Arcieri at Hometownannapolis.com (Maryland) reports that Fawcett Boat Supplies, Inc., has emerged from Chapter 11 bankruptcy protection after the U.S. Bankruptcy Court for the District of Maryland approved the company's reorganization plan on Sept. 10. According to Hometownannapolis.com, Fawcett Boat said the plan will repay more than 100 creditors and fuel growth. It addresses 38 classes of creditors holding $5.6 million in claims against the company, the report says, citing Fawcett Boat President Steve Ripley. According to the report, Mr. Ripley said that majority of the creditors will be paid back 10 cents on the dollar. Hometownannapolis.com relates that Fawcett Boat will continue retail operations from its Compromise Street building with 25 workers. Mr. Ripley said that Jammet Investment Associates, headed by investor Bernard Jammet, has recapitalized Fawcett Boat, the report states. Citing Mr. Ripley, Hometownannapolis.com says that Fawcett Boat has reopened a Fawcett walk-in store at 1811 Virginia Street. According to Hometownannapolis.com, the company also entered into a deal with Richard Sadler, owner of Chesapeake Marine Fasteners, to sell inventory including nuts, bolts, and screws at Fawcett Boat's second location. Headquartered in Annapolis, Maryland, Fawcett Boat Supplies, Inc. -- http://www.fawcettboat.com/-- serves customers throughout the Chesapeake Bay region, the US, and the world. Boatyards, riggers, cruisers, live-aboards and racers have relied upon Fawcett since 1948. The company filed for Chapter 11 bankruptcy protection on Dec. 12, 2007 (Bankr. D.Md. Case No. 07-22624). Alan M. Grochal, Esq., at Tydings & Rosenberg, LLP, represents the company in its restructuring efforts. The company listed assets of between $1 million and $100 million and debts of between $1 million and $100 million when it filed for bankruptcy. FORT APACHE: Voluntary Chapter 11 Case Summary ---------------------------------------------- Debtor: Fort Apache & Martin LLC 2967 Soft Horizon Way Las Vegas, NV 89135 Bankruptcy Case No.: 08-21122 Chapter 11 Petition Date: September 25, 2008 Court: District of Nevada (Las Vegas) Judge: Bruce A. Markell Debtor's Counsel: David J. Winterton, Esq. david@davidwinterton.com David J. Winterton & Assoc. Ltd. 211 N. Buffalo Dr. #A LAS VEGAS, NV 89145 Tel: (702) 363-0317 Estimated Assets: $3,700,000 Estimated Debts: $3,017,503 The Debtor does not have any creditors who are not insiders. FREDDIE MAC: FBI Investigating Firm's Financial Troubles -------------------------------------------------------- Bloomberg News reported that the Federal Bureau of Investigation is probing the financial troubles of American International Group, Lehman Brothers, Fannie Mae and Freddie Mac. Evan Perez at The Wall Street Journal relates that law enforcement officials said that the FBI's preliminary inquiries are focusing on whether fraud helped cause some of the troubles at these four companies. Stephen Foley at The Independent reports that the FBI are checking documents and e-mails related to the collapse of Lehman Brothers and AIG and the events leading to the nationalization of Fannie Mae and Freddie Mac. The Indpendent states that the FBI launched more than 500 prosecutions against mortgage brokers and appraisers who helped foist millions of inappropriate loans on people who could never afford to pay them back. According to WSJ, the U.S. Attorney in Brooklyn has brought charges against brokers who allegedly tricked some institutional investors into purchasing risky auction-rate securities. About Freddie Mac The Federal Home Loan Mortgage Corporation -- (FHLMC) NYSE: FRE -- commonly known as Freddie Mac, is a stockholder-owned government- sponsored enterprise authorized to make loans and loan guarantees. Freddie Mac was created in 1970 to provide a continuous and low cost source of credit to finance America's housing. Freddie Mac conducts its business primarily by buying mortgages from lenders, packaging the mortgages into securities and selling the securities -- guaranteed by Freddie Mac -- to investors. Mortgage lenders use the proceeds from selling loans to Freddie Mac to fund new mortgages, constantly replenishing the pool of funds available for lending to homebuyers and apartment owners. FT APACHE: Voluntary Chapter 11 Case Summary -------------------------------------------- Debtor: Ft. Apache Tompkins, LLC 2697 Soft Horizon Way Las Vegas, NV 89135 Bankruptcy Case No.: 08-21124 Chapter 11 Petition Date: September 25, 2008 Court: District of Nevada (Las Vegas) Judge: Bruce A. Markell Debtor's Counsel: David J. Winterton, Esq. david@davidwinterton.com David J. Winterton & Assoc. Ltd. 211 N. Buffalo Dr. #A LAS VEGAS, NV 89145 Tel: (702) 363-0317 Total Assets: $6,000,000 Total Debts: $3,354,614 The Debtor does not have any creditors who are not insiders. FUEGO ENT: Moore & Associates Expresses Going Concern Doubt ----------------------------------------------------------- Las Vegas-based Moore & Associates Chartered raised substantial doubt about Fuego Entertainment, Inc.'s ability to continue as a going concern after it audited the company's financial statements for the year ended May 31, 2008. According to the auditing firm, the company sustained significant losses in the last two years, and has deficits in working capital. The company has an accumulated deficit of $1,036,317 as of May 31, 2008. The company's ability to continue in existence is dependent on its ability to develop additional sources of capital, or achieve profitable operations. The company sustained significant losses in the last two years, and has deficits in working capital as of May 31, 2008, and 2007 as well as a stockholders' deficit as of May 31, 2007. The company's financial position at those dates and presently is of great concern to the management and to the company's investors, however, management's plan is to obtain additional capital and to continue to develop, market and distribute musical tracks through Fuego and its new joint venture, Echo-Fuego Music Group, LLC. The company posted net loss of $444,593 on total revenues of $559,214 for the year ended May 31, 2008, as compared with a net loss of $505,558 on total revenues of $184,243 in the prior year. At May 31, 2008, the company's balance sheet showed $1,167,118 in total assets, $498,720 in total liabilities, and $668,398 in total stockholders' equity. The company's consolidated balance sheet at May 31, 2008, showed strained liquidity with $108,077 in total current assets available to pay $217,171 in total current liabilities. A full-text copy of the company's 2008 annual report is available for free at http://ResearchArchives.com/t/s?32d6 About Fuego Entertainment Fuego Entertainment, Inc. (OTC BB: FUGO) -- www.fuegoentertainment.net/ -- directs, produces, markets, and distributes entertainment products, including short films, documentaries, television shows, music, and tour productions. The company also produces and markets filmed and television content, and music content through traditional distribution channels and digital downloads; and manages, promotes, and exploits music compositions, as well as provides management, marketing, and public relations services to the entertainment industry. It primarily focuses on Hispanic/Latin and English-speaking markets. The company was founded in 2004 as Durango Entertainment, Inc., and changed its name to Fuego Entertainment, Inc., in 2005. Fuego Entertainment is based in Miami Lakes, Fla. GE COMMERCIAL: S&P Junks Rating on Class O Commercial Certificates ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its rating on the class O commercial mortgage pass-through certificates from GE Commercial Mortgage Corp. Series 2006-C1 Trust to 'CCC+' from 'B-'. Concurrently, S&P affirmed its ratings on the remaining 21 classes from this series. The downgrade reflects credit concerns with one of the seven loans in the pool that have reported debt service coverage of less than 1.0x, as well as the weakened performance of the ninth-largest exposure. The affirmed ratings reflect credit enhancement levels that provide adequate support through various stress scenarios. The seven loans ($82.1 million, 5%) in the pool that have reported low DSCs are secured by a variety of retail, multifamily, and mixed-use properties. They have an average balance of $11.7 million and have experienced a weighted average decline in DSC of 52% since issuance. Six of these loans have, however, posted improved occupancy and performance in 2008. The loan that is a credit concern, Knight Chase Apartments ($6.6 million), is secured by a 158-unit multifamily apartment complex in Stockbridge, California. The low reported DSC of 0.16x for the 12 months ended Dec. 31, 2007, was attributable primarily to 115 units that were under renovation in 2007. The borrower indicated that it has subsequently re-leased these units at a higher rental rate and that the property's performance should stabilize this year. Even after recalculating the DSC assuming the higher rental income, S&P still arrived at a low DSC. The ninth-largest exposure, Atlanta Mall Area Portfolio ($29.1 million, 2%), is secured by two retail properties totaling 158,300 sq. ft. in Lithonia and Buford, Georgia. The 50,980-sq.- ft. retail property in Buford is currently 49% occupied after the largest tenant vacated before its March 31, 2009, lease expiration date. The vacated tenant is paying rent through its lease expiration date. The borrower is currently marketing the vacant space. The adjusted DSC, including amortization, was 1.01x for the 12 months ended Dec. 31, 2007, and combined occupancy is 80% as of September 2008. The DSC will fall below 1.0x if the space remains vacant. As of the Sept. 10, 2008, remittance report, the trust collateral consisted of 145 loans with an aggregate principal balance of $1.59 billion, compared with $1.61 billion and the same number of loans at issuance. The master servicer, Wachovia Bank N.A., reported financial information for 100% of the loans in the pool. Ninety-one percent of the servicer-reported information was full- year 2007 data. Based on this information, Standard & Poor's calculated a weighted average DSC of 1.69x, down from 1.81x at issuance. The current weighted average DSC includes amortization for loans totaling 39% of the trust balance that originally had partial interest-only periods from seven to 60 months. All of the loans in the trust are current, and no loans are with the special servicer. To date, the trust has not experienced any losses. The top 10 exposures secured by real estate have an aggregate principal balance of $697.0 million (44%) and a weighted average DSC of 2.00x, down from 2.32x at issuance. The calculation includes additional debt service for three of the top 10 exposures that have initial IO periods but did not begin to fully amortize in 2007. The seventh-largest exposure is on the master servicer's watchlist and is discussed below. Standard & Poor's reviewed the property inspection reports provided by Wachovia for the assets underlying the top 10 exposures. All of the properties were characterized as "good." The credit characteristics of 277 Park Avenue, KinderCare Portfolio, Level 3 Communications, and Embassy Suites are consistent with those of investment-grade obligations. Standard & Poor's adjusted values for these loans are comparable to their levels at issuance. Wachovia reported a watchlist of 14 loans totaling $142.9 million (9%). The largest loan on the watchlist, and the seventh-largest exposure in the pool, Grand Marc at Riverside ($42.1 million, 3%), is secured by a 212-unit (760-bed) class A gated student housing property in Riverside, California. The loan is on the watchlist because of a low reported DSC of 0.63x and low occupancy of 73% for the 12 months ended Dec. 31, 2007. The loan was assumed in May 2008. The new borrower indicated that performance should improve because the property is currently 100% occupied for the 2008-2009 school term. The remaining loans are on the watchlist due to declines in DSC since issuance or deferred maintenance items. Standard & Poor's identified 30 properties in areas affected by Hurricane Ike, which are part of the KinderCare Portfolio ($632.1 million, 9%), Michelin North America ($24.5 million, 2%), Bay Area Self Storage ($4.8 million, 0.3%), and Bullseye Storage Gulfgate ($2.7 million, 0.2%) exposures. Wachovia notified S&P that five of the properties securing the KinderCare Portfolio loan experienced no damage, while the remaining 25 properties securing the four loans incurred minor to moderate damage, mainly to the roof, ceiling, and fencing. Standard & Poor's was able to confirm that the KinderCare Portfolio loan has flood and windstorm insurance, while the remaining three loans have windstorm insurance. In addition, three of the four loans have business interruption insurance. S&P will continue to monitor the situation. Standard & Poor's stressed the loans on the watchlist and other loans with credit issues as part of its analysis. The resultant credit enhancement levels adequately support the lowered and affirmed ratings. Rating Lowered GE Commercial Mortgage Corp. Series 2006-C1 Trust Commercial mortgage pass-through certificates Rating ------ Class To From Credit enhancement ----- -- ---- ------------------ O CCC+ B- 1.14% Ratings Affirmed GE Commercial Mortgage Corp. Series 2006-C1 Trust Commercial mortgage pass-through certificates Class Rating Credit enhancement ----- ------ ------------------ A-1 AAA 30.34% A-2 AAA 30.34% A-3 AAA 30.34% A-AB AAA 30.34% A-4 AAA 30.34% A-1A AAA 30.34% A-M AAA 20.23% A-J AAA 11.00% B AA 8.72% C AA- 7.84% D A 6.32% E A- 5.44% F BBB+ 4.55% G BBB 3.67% H BBB- 2.78% J BB+ 2.40% K BB 2.02% L BB- 1.64% M B+ 1.52% N B 1.26% X-W AAA N/A N/A -- Not applicable. GEORGIA GULF: Suspends Quarterly Dividend Due to Weak Economy ------------------------------------------------------------- Georgia Gulf Corporation disclosed in a Securities and Exchange Commission filing that its board of directors has suspended the quarterly cash dividend due to the impact of continued weak economic conditions, particularly the U.S. housing market. Georgia Gulf remains focused on targeted cost, working capital and debt reduction initiatives. The Company announced an amendment to its senior credit facility on September 11, 2008, that adjusted certain financial covenant ratios to reflect current market conditions. The Company continues to evaluate options to refinance the senior credit facility to obtain a structure with greater long-term flexibility. About Georgia Gulf Headquartered in Atlanta, Georgia, Georgia Gulf Corporation (NYSE:GGC) -- http://www.ggc.com/-- manufactures and markets two integrated product lines: chlorovinyls and aromatics. The company's primary chlorovinyls products are chlorine, caustic soda, vinyl chloride monomer, vinyl resins and vinyl compounds, and itsaromatics products are cumene, phenol and acetone. GGC operates through four segments: chlorovinyls; window and door profiles and mouldings products; outdoor building products, and aromatics. On Oct. 3, 2006, GGC completed the acquisition of Royal Group Technologies Limited, a North American manufacturer and marketer of vinyl-based building and home improvement products. * * * As reported in the Troubled company Reporter on May 12, 2008, Standard & Poor's Ratings Services lowered its ratings on Georgia Gulf Corp. by one notch, including its corporate credit rating to 'CCC+' from 'B-'. The outlook is negative. The Troubled Company Reporter reported on July 17, 2008, that Georgia Gulf Corporation entered into a settlement agreement with certain holders of its 7-1/8% senior notes due 2013 that sent a notice of default on June 6, 2008. The company has agreed to pay $1.4 million of the legal fees of the signing holders. GOODYEAR TIRE: To Tap $600MM Credit Facility Due to Fund Woes ------------------------------------------------------------- The Goodyear Tire & Rubber Co. will draw $600 million from its existing U.S. revolving credit facility due to a temporary delay in its ability to access $360 million of cash currently invested with The Reserve Primary Fund. The funds will also be used to support seasonal working capital needs and to enhance the company's cash liquidity position. The Reserve Primary Fund, a money market fund, has delayed the payment of requested redemptions pursuant to a U.S. Securities and Exchange Commission Order allowing an orderly disposition of its securities. David Horn at The North Carolina News Network relates that a run on redemptions had led to the Reserve Primary Fund losing more than 60% of its assets, as the fund lost value because some of its investments were in Lehman Brothers' debt. Goodyear's other U.S. cash investments remain fully accessible by the company. Goodyear also said that the expiration of the 30-day period to appeal the U.S. District Court's Order approving the settlement agreement that established the Voluntary Employees' Beneficiary Association trust, which will provide healthcare benefits to the company's current and future United Steelworkers retirees. No appeals were filed. Goodyear now can remove liabilities for USW union retiree healthcare benefits from its balance sheet. As of year-end 2007, these liabilities were approximately $1.2 billion. As previously announced, the company fully funded the $1 billion VEBA following the court's Aug. 22 settlement approval. At the end of the second quarter, Goodyear reported a global cash balance of approximately $2.1 billion prior to funding the VEBA. About Goodyear Tire Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 60 facilities in 26 countries and employs 80,000 people worldwide. Goodyear has subsidiaries in New Zealand, Venezuela, Peru, Mexico, Luxembourg, Finland, Korea and Japan, among others. * * * As reported by the Troubled Company Reporter-Europe on March 6, 2008, Fitch Ratings upgraded The Goodyear Tire & Rubber Company's Issuer Default Rating to 'BB-' from 'B+' and senior unsecured debt rating to 'B+' from 'B-/RR6'. GOODYEAR TIRE: Drawing $600MM Facility Won't Affect S&P's Ratings ----------------------------------------------------------------- Standard & Poor's Ratings Services said that its ratings on The Goodyear Tire & Rubber Co. (BB-/Positive/--) are not immediately affected by the company's announcement that it will draw down $600 million of its U.S. revolving credit facility because Goodyear's access to $360 million of cash invested with The Reserve Primary Fund has been delayed temporarily. Once the drawdown has been completed, S&P believes the company's cash position and available credit facilities will be sufficient to support near-term cash needs. In light of the anxious state of the capital markets, S&P believes the company's action reflects prudent steps to minimize the effects of any unexpected credit disruptions. Although recent events have diminished Goodyear's liquidity, S&P expects the impact to be temporary and therefore will not significantly affect the company's financial risk profile. Nevertheless, S&P remains concerned that weak credit markets, if sustained, could complicate Goodyear's funding of its business plan. GOODY'S FAMILY: Closing Almost 70 Stores, Opens Richmond Unit ------------------------------------------------------------- Laura Butler at The Eastern Progress Online (Ky.) reports that Goody's Family Clothing, Inc., has opened a store in Richmond Centre, a new outlet-style mall near Goggins Lane, while it is closing almost 70 stores across the country, including a store at Richmond Mall. The Eastern Progress relates that Goody's, which is in need of new business, is "embracing a reorganization plan to restore its ability to function and thrive in a competitive market." A new store at Richmond Centre could encourage growth for Goody's, according to the report. The new shopping center will provide "a more expedient shopping experience, allowing patrons to park in front of the door and get in and out quickly," The Eastern Progress says. Richmond Centre is larger compared to Richmond Mall and will house a wider variety of merchandise, the report states, citing Bill Birkenmeier, a store manager of Richmond JCPenney. About Goody's Family Headquartered in Knoxville, Tennessee, Goody's Family Clothing Inc. -- http://www.shopgoodys.com/-- operates chains of clothing stores. The company is owned by Goody's Holdings Inc., a non- debtor entity. As of May 31, 2008, the company operates 355 stores in several states with approximately 9,868 personnel, of which 170 employees are covered under a collective bargaining agreement. The company and 19 of its affiliates filed for Chapter 11 protection on June 9, 2008 (Bankr. D. Del. Lead Case No. 08-11133). Gregg M. Galardi, Esq., and Marion M. Quirk, Esq., at Skadden Arps Slate Meagher & Flom LLP, and Paul G. Jennings, Esq., at Bass, Berry & Sims PLC, represent the Debtors. The Debtors selected Logan and Company Inc. as their claims agent. The U.S. Trustee for Region 3 appointed seven creditors to serve on an Official Committee of Unsecured Creditors. Frederick Brian Rosner, Esq., at Duane Morris LLP, and Lawrence C. Gottlieb, Esq., Cathy Herschopf, Esq., and Jeffrey L. Cohen, Esq., at Cooley Godward Kronish LLP, represent the Committee in these cases. When the Debtors filed for protection from their creditors, they listed assets and debts of between $100 million and $500 million. As of May 3, 2008, the Debtors' records reflected total assets of $313,000,000 -- book value -- and total debts of $443,000,000. GREATER ATLANTA: Files Chapter 11 Bankruptcy in Atlanta Court ------------------------------------------------------------- Greater Atlanta Bar-B-Q LLC filed for bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of Georgia, J. Scott Trubey of the Atlanta Business Chronicle reported Thursday. According to Mr. Trubey, the Norcross, Ga.-based operator of 10 metro Atlanta Sonny's Real Pit Bar-B-Q restaurants listed secured debts of $8.8 million and assets of between $1 million and $10 million. Greater Atlanta Bar-B-Q will close its Smyrna, Austell, Indian Trail Road and Cheshire Bridge Road locations, but its restaurants in Athen, conyers, Marietta, Buford, Jonesboro and Lawrenceville will remain open, the report said. The report says that Greater Atlanta Bar-B-Q purchased 14 distressed Sonny's locations from The Georgia Bar-B-Q Co. in 2006, but sales at certain locations continued to wane and rents were too high, the filing stated. About Greater Atlanta Bar-B-Q Based in Norcross, Georgia, Greater Atlanta Bar-B-Q, LLC is an operator of 10 Sonny's Real Pit Bar-B-Q eateries in metro Atlanta. The company filed for Chapter 11 relief on Sept. 25, 2008 (Bankr. N.D. Ga. 08-78865). Wendy L. Hagenau, Esq., at Powell Goldstein LLP represents the Debtor as counsel. When the Debtor filed for protection from its creditors, it listed assets of $1 million to $10 million, and debts of $1 million to $10 million. GREAT LAKES TISSUE: Files For Chapter 11 Bankruptcy Protection -------------------------------------------------------------- Bill Rochelle of Bloomberg News reports that Great Lakes Tissue Co. filed for Chapter 11 bankruptcy protection on Sept. 22, 2008, with the U.S. Bankruptcy Court for the Eastern District of Michigan (Case No. 08-22796). The filing took place after a sale to Wisconsin-based National Packaging Services Corp. fell through, according to the report. The Debtor listed assets of $7.7 million and debt of $14.2 million in its filing. Cheboygan, Michigan-based Great Lakes Tissue Co. is a paper products maker. GREEKTOWN CASINO: Wants Until December 15 to File Chapter 11 Plan ----------------------------------------------------------------- After negotiating with the objecting parties to their request for an extension of the exclusivity period, Greektown Holdings LLC and its debtor-affiliates noted in a recent filing with the United States Bankruptcy Court for the Eastern District of Michigan that they now seek to extend their exclusivity period through December 15, 2008, without prejudice to seek further extensions. The Debtors originally sought an extension of the Exclusivity Period through June 1, 2009. On the Debtors' behalf, Michael R. Wernette, Esq., at Schafer and Weiner, in Bloomfield Hills, Michigan, reminds the Court that as noted in an August 18, 2008 hearing, the Michigan Gaming Board, the Official Committee of Unsecured Creditors, and Dimitrios and Viola Papas do not object to a December 15 extension. The Debtors agree that a relatively short, first request for extension of exclusive periods under Section 1121(d) of the Bankruptcy Code is subject to a lighter burden. The Debtors add that the large nature of their bankruptcy cases weighs heavily in favor of an exclusivity extension. In addition, the Debtors believe a rapid sale of the Greektown Casino, as to which the city of Detroit, Michigan, is pushing for, will not maximize value for their estates. Exclusivity Hearing Set for Sept. 23 Before the Debtors proposed a new extension date of their Exclusivity Period, the Debtors stipulated with Objecting Parties Daniel M. McDermott as U.S. Trustee for Region 9; the Official Committee of Unsecured Creditors; Deutsche Bank Trust Company Americas; the City of Detroit, Michigan; the Michigan Gaming Control Board; Ted and Maria Gatzaros; and Dimitrios and Viola Papas for the adjournment of the Exclusivity Motion Hearing to September 23, at 1:30 p.m. An evidentiary hearing with respect to the Exclusivity Motion was originally set for September 15, 2008. That hearing has been adjourned to September 23. The Court approved the parties' Stipulation. Creditors Committee Opposes Exclusivity Extension Proposed Order "The Court in no way granted the [Exclusivity] Motion at the [Aug. 18 hearing] but rather extended the Plan Period and the Acceptance Period solely to accommodate the Evidentiary Hearing," Robert D. Gordon, Esq., at Clark Hill PLC, in Detroit, Michigan, clarifies, on the Committee's behalf. The Creditors Committee is concerned that certain provisions of the Debtors' proposed order for the Exclusivity Motion failed to comport with decisions made by the Court during the August 18 hearing. The Creditors Committee does not believe that the Court found the Exclusivity Motion to be in the best interests of anyone or that it established cause for any extension. Mr. Gordon adds that contrary to the language of the Debtors' Proposed Exclusivity Order, the participation and approval of certain prepetition and postpetition lender agents is not required for the resolution of objections to the Exclusivity Motion. The Committee reiterates that the Court never suggested it would extend the plan period and the plan acceptance period after the Evidentiary Hearing or at any other time. Including those provisions in the Proposed Order is improper as the Court never made those determinations and they are not in accordance with Section 1121 of the Bankruptcy Code, Mr. Gordon asserts. Mr. Gordon relates that at the August 18 hearing, the Debtors revised their requested Plan Period extension from June 1, 2009, through February 12, 2009, and the Debtors also discussed on the record for a December 15, 2008, or shorter extension. The Committee notes that it asked the Debtors' counsel during the August 18 hearing to clarify in the Proposed Order what specific relief the Debtors were seeking as to both the Plan Period and the Acceptance Period. The Debtors, however, ignored the requested clarification, Mr. Gordon elaborates. The Committee maintains that a clarification must be made in the Debtor's Proposed Exclusivity Order to avoid any confusion in discovery and at the Evidentiary Hearing. In this light, the Committee presented its own proposed exclusivity order, with changes that more precisely comports with the Court's decisions and ruling at the August 18 Hearing. About Greektown Casino Based in Detroit, Michigan, Greektown Holdings, LLC and its affiliates -- http://www.greektowncasino.com/-- operates world- class casino gaming facilities located in Detroit's historic Greektown district featuring more than 75,000 square feet of casino gaming space with more than 2,400 slot machines, over 70 tables games, a 12,500-square foot salon dedicated to high limit gaming and the largest live poker room in the metropolitan Detroit gaming market. Greektown Casino employs approximately 1,971 employees, and estimates that it attracts over 15,800 patrons each day, many of whom make regular visits to its casino complex and related properties. In 2007, Greektown Casino achieved a 25.6% market share of the metropolitan Detroit gaming market. Greektown Casino has also been rated as the "Best Casino in Michigan" and "Best Casino in Detroit" numerous times in annual readers' polls in Detroit's two largest newspapers. The company and seven of its affiliates filed for Chapter 11 protection on May 29, 2008 (Bankr. E.D. Mich. Lead Case No. 08-53104). Daniel J. Weiner, Esq., Michael E. Baum, Esq., and Ryan D. Heilman, Esq., at Schafer and Weiner PLLC, represent the Debtors in their restructuring efforts. Judy B. Calton, Esq., at Honigman Miller Schwartz and Cohn LLP, represents the Debtors as their special counsel. The Debtors chose Conway MacKenzie & Dunleavy as their financial advisor, and Kurtzman Carson Consultants LLC as claims, noticing, and balloting agent. When the Debtor filed for protection from its creditors, it listed consolidated estimated assets and debts of $100 million to $500 million. (Greektown Casino Bankruptcy News, Issue No. 12; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). GREYSTONE LOGISTICS: Deficits Cue Auditor's Going Concern Doubt --------------------------------------------------------------- Taylor Sartain & Sartain LLP in Tulsa, Oklahoma, stated in its report dated Sept. 15, 2008, that in previous years, Greystone Logistics, Inc., suffered significant losses from operations, which resulted in a cumulative stockholders' deficit of $9,279,367 and a working capital deficit of $13,223,360. The auditor pointed out that these deficits at May 31, 2008 raise substantial doubt about the company's ability to continue as a going concern. Management Statement The company was incorporated on Feb. 24, 1969. From April 1993 to December 1997, the company was engaged in various businesses, including the business of exploration, production, and development of oil and gas properties in the continental United States and the operation of a related service business. In December 1997, the company acquired all of the issued and outstanding stock of Plastic Pallet Production, Inc., and its principal business changed to selling plastic pallets. Since such time, the company has continued to incur losses from operations until the year ended May 31, 2008, when it showed an operating profit and positive cash flows. There is no assurance that Greystone will continue to achieve a positive operating profit or otherwise obtain funds to finance continued operations. Greystone achieved its first year of profitable operations in recent years, reporting net income available to common stockholders of $419,729 and cash provided by operations of $744,240. However, total stockholder deficit still exceeds $9,000,000 and working capital deficit still exceeds $13,000,000. The company's ability to continue to exist as a going concern for the next fiscal year depends primarily on the forbearance of the company's creditors. The most significant creditors include related party Greystone Plastics, Inc., and lending institution F&M Bank & Trust Company. Some refinancing has already occurred and F&M Bank has communicated to the company that it anticipates it will renew the debt that is currently due on terms similar to existing terms. While management is optimistic about the forbearance of its creditors and the conversion of its credit facilities to long-term, there can be no assurance that management's efforts will allow the company to meet its obligations when due. While 2008 results are viewed by the management with optimism, the company does not have an adequate history of profitable operations to provide reasonable assurance of continuation as a going concern. Management is working to enhance the value of the company's contracts with its two most significant customers, which accounted for about 75% and 85% of sales, respectively, for the fiscal year ended May 31, 2008, and 2007, and expand its customer base and product offerings. Some of these efforts will require additional capital to implement. There is no assurance that management's efforts will be sufficiently successful, or that needed capital will be available, for the company to continue as a going concern. Financials The company posted a net income of $928,420 on total sales of $21,081,114 for the year ended May 31, 2008, as compared with a net loss of $2,599,976 on total sales of $12,454,293 in the prior year. At May 31, 2008, the company's consolidated balance sheet showed $11,446,004 in total assets and $20,725,371 in total liabilities, resulting in a $9,279,367 stockholders' deficit. The company's consolidated balance sheet at May 31, 2008, also showed strained liquidity with $2,448,848 in total current assets available to pay $15,471,208 in total current liabilities. A full-text copy of the company's 2008 annual report is available for free at http://ResearchArchives.com/t/s?32d5 About Greystone Logistics Headquartered in Tulsa, Oklahoma, Greystone Logistics, Inc. (OTC BB: GLGI) -- http://greystonelogistics-glgi.com/-- manufactures and sells plastic pallets, made from recycled plastic, through its wholly owned subsidiaries, Greystone Manufacturing LLC and Plastic Pallet Production, Inc. Greystone sells its pallets through an exclusive distribution arrangement with Decade Products whereby Decade sells Greystone's pallets nationwide through direct sales and a network of independent contractor distributors. Greystone also sells its pallets and pallet leasing services to certain large customers direct through its president, senior vice president of Sales and Marketing and other employees. Greystone currently derives approximately 86% of its revenue from two national brewers. GS MORTGAGE: Moody's Lowers Ratings on Six Classes of Securities ---------------------------------------------------------------- Moody's Investors Service downgraded the ratings of six classes of GS Mortgage Securities Corporation II, Series 2006-RR2 as: -- Class E, $11,564,000, Certificates Due 2017, downgraded to A2 from A1 -- Class F, $8,673,000, Certificates Due 2017, downgraded to A3 from A2 -- Class G, $8,673,000, Certificates Due 2017, downgraded to Baa1 from A3 -- Class H, $13,491,000, Certificates Due 2018, downgraded to Baa2 from Baa1 -- Class J, $9,637,000, Certificates Due 2018, downgraded to Baa3 from Baa2 -- Class K, $7,709,000, Certificates Due 2018, downgraded to Ba1 from Baa3 Moody's is downgrading the six classes due to deteriorating pool performance. As of the September 25, 2008 distribution date, the transaction's aggregate collateral balance has decreased to $770.1 million from $770.9 million at issuance, due to $0.8 million in pay-downs to the Class A-1 Certificates. The Certificates are currently collateralized by 77 classes of CMBS securities from 57 separate transactions (95.6% of the pool balance) and one CTL transaction (4.4%). Since issuance, among the Moody's rated securities (59.7%), there have been two upgrades and two downgrades to CMBS securities. Credit estimates were performed on 31 non-Moody's rated CMBS / CTL classes (40.3 %) resulting in a deterioration in credit quality. Moody's uses a weighted average rating factor as an overall indicator of the credit quality of a CRE CDO transaction. Based on Moody's analysis, the current WARF is 876 compared to 799 at issuance. Moody's reviewed the ratings or performed credit estimates on all the collateral supporting the Certificates. The distribution is as follows: A1-A3 (7.7% compared to 6.7% at issuance), Baa1-Baa3 (70.7% compared to 73.4% at issuance), Ba1- Ba3 (8.3% compared to 11.5% at issuance), B1-B3 (9.7% compared to 6.2% at issuance), and Caa1-NR (3.6% compared to 2.2% at issuance). The CMBS securities are from pools securitized between 1996 and 2006. The two largest vintage exposures are 2005 (55.1%) and 2006 (18.7 %). The five largest exposures are WBCMT 2006-C23 (6.5%), GGCFC 2005-GG5 (6.1%), GSMS 2006-GG6 (5.2%), CSFB 2005-C5 (4.8%) and BC 2000-A (4.4%). Moody's periodically completes full reviews in addition to monitoring transactions on a monthly basis. Moody's had placed the classes on review for possible downgrade as summarized in a press release dated August 1, 2008. Moody's prior full review is summarized in a Presale Report dated July 10, 2006. Moody's has published rating methodologies outlining its analytical approach to surveillance and its approach to rating static commercial real estate collateralized debt obligations. In addition, Moody's has published numerous articles outlining its ratings approach to the various collateral types customarily deposited within these transactions along with other articles on credit issues unique to the sector. The major rating methodologies employed in analyzing this transaction include: -- CMBS: Moody's Approach to Rating Static CDOs Backed by Commercial Real Estate Securities, June 17, 2004 -- this paper details the evolution of its analytic approach to rating CRE CDOs touching on the binomial expansion model, extension risk, correlation, severity rates, pari passu notes, diversity, and interest shortfalls with a discussion of simulation engines, cash flow analysis, scenario analysis, and other elements in Moody's analysis with detailed supplementary information on deriving a CDO collateral loss distribution by simulating pool loss for each CMBS transaction and by simulating default probability and severity for each CMBS certificate; and -- The Inclusion of Commercial Real Estate Assets in CDOs, October 8, 1999 -- this paper describes the development of commercial real estate backed CDOs, speaks to collateral pool analysis including industry classifications, diversification, credit quality, recovery rate, and cash flow characteristics, and refers to other aspects of CMBS as CDO collateral including prepayment risk, sequential pay structure, ability to defer interest payments temporarily, servicer advancing, losses, extension risk, recovery rates, and servicer risk. These methodologies are available on Moodys.com. The analysis of this transaction is consistent with Moody's published rating methodologies. HAMILTON BEACH: S&P Changes Outlook to Neg. on Weaker Income ------------------------------------------------------------ Standard & Poor's Ratings Services revised its outlook on Glen Allen, Virginia-based Hamilton Beach Brands Inc. to negative from stable. At the same time, Standard & Poor's affirmed its ratings on the company, including its 'B' corporate credit rating. As of June 30, 2006, the company had about $146 million of debt. The outlook revision reflects S&P's concerns about the company's weaker-than-anticipated operating income and very tight cushion on its financial covenants. S&P expects that the operating environment for Hamilton Beach will remain difficult and its financial covenants will likely further tighten over the next few quarters as a result of the effect of reduced consumer spending and inflationary cost pressures on its business. While the company received a $3 million capital contribution from its parent, NACCO Industries Inc. (unrated) during first-quarter 2008, covenant cushion remains limited. In addition, S&P is concerned about Hamilton Beach's future ability to comply with these covenants, given a step-down in the required debt leverage covenant level beginning in fourth-quarter 2008. The negative outlook on Hamilton Beach reflects Standard & Poor's expectation that the company's operating environment will remain challenging over the next 12 months and that covenant cushion will remain very constrained or diminish further. "We could lower the ratings in the event that Hamilton Beach does not meet financial covenants, if credit protection measures meaningfully weaken, and/or if operating performance weakens further," noted Standard & Poor's credit analyst Rick Joy. S&P estimates that a 7.5% decline in EBITDA could result in a leverage covenant violation in the third quarter, absent any further capital contribution from NACCO, and that an EBITDA decline of less than 2% in the fourth quarter would result in a covenant violation. "Although unlikely over the near term, we could consider a stable outlook if the company can restore sufficient cushion on its financial covenants, stabilize margins, and maintain credit measures comfortably above medians for the rating category," he continued. HAMILTON GARDENS: Moody's Junks $315MM Class A-1 Notes Rating ------------------------------------------------------------- Moody's Investors Service has downgraded the ratings on the two notes issued by Hamilton Gardens CDO Ltd, and left one of them on review for further possible downgrade: Class Description: Up to $315,000,000 Class A-1 Floating Rate Variable Funding Notes Due 2046 -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Action Date: May 18, 2008 -- Current Rating: Caa3, on review for possible downgrade Class Description: $54,250,000 Class A-2 Floating Rate Notes Due 2046 -- Prior Rating: Caa1, on review for possible downgrade -- Prior Rating Action Date: May 18, 2008 -- Current Rating: Ca According to Moody's, these rating actions are as a result of the increased deterioration in the credit quality of the transaction's underlying collateral pool consisting primarily of structured finance securities. HARBOR SERIES: Moody's Slashes Ratings on Two Classes to 'Ca' ------------------------------------------------------------- Moody's Investors Service has downgraded the ratings on the notes issued by Harbor Series 2006-3: Class Description: $46,000,000 Class A Variable Rate Notes Due 2051 -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Action Date: 04/22/2008 -- Current Rating: Ca Class Description: $8,000,000 Class B Variable Rate Notes Due 2051 -- Prior Rating: Aa3, on review for possible downgrade -- Prior Rating Action Date: 04/22/2008 -- Current Rating: Ca Class Description: $10,500,000 Class C Variable Rate Notes Due 2051 -- Prior Rating: Baa1, on review for possible downgrade -- Prior Rating Action Date: 04/03/2008 -- Current Rating: C Class Description: $5,500,000 Class D Variable Rate Notes Due 2051 -- Prior Rating: Baa3, on review for possible downgrade -- Prior Rating Action Date: 04/03/2008 -- Current Rating: C According to Moody's, these rating actions are as a result of the increased deterioration in the credit quality of the transaction's underlying collateral pool consisting primarily of structured finance securities. HEARTLAND AUTOMOTIVE: Wants Ties with BP Plc Subsidiary to Emerge ----------------------------------------------------------------- Bill Rochelle of Bloomberg News reports that Heartland Automotive Holdings, Inc., and its debtor-affiliates asked for authority from the United States Bankruptcy Court for the Northern District of Texas on Sept. 22, 2008, to enter into an agreement to pay London- based BP Plc a breakup fee ranging between $150,000 and $500,000 if the agreement with BP subsidiary to finance the Debtors' Chapter 11 plan in exchange for dropping the Jiffy Lube brand and reflagging the locations as Castrol Premium Lube Express doesn't work out. According to Mr. Rochelle, the Debtors say they will switch to using BP products exclusively while BP will "fund a major portion of the conversion costs" together with providing "competitive pricing." The Debtors, according to the report, say current franchisor, Jiffy Lube International, Inc., "embarked on a strategy designed to break up the Debtors' enterprise." The Debtors concluded that even successful lawsuits against Jiffy Lube would be less beneficial than the proposed new arrangements with BP, according to the report. The Court, according to the report, arranged an Oct. 20 hearing to consider approving the breakup fees. The terms of a Chapter 11 reorganization plan weren't mentioned in the court filing, according to the report. The details of the prospective arrangements with BP are secret, according to the report. About Heartland Automotive Based in Omaha, Nebraska, Heartland Automotive Holdings Inc. -- http://www.heartlandjiffylube.com/-- and its debtor-affiliates are franchisees of Jiffy Lube International Inc. since 1980. The Debtors operate 438 quick-oil-change stores in 20 states across the Eastern, Midwestern and Western U.S. They employed in excess of 4,000 employees. The company and its nine affiliates filed for Chapter 11 protection on Jan. 7, 2008 (Bank. N.D. Tex. Lead Case No. 08-40057). Jeff P. Prostok, Esq., at Forshey & Prostok, LLP represents the Debtors in their restructuring efforts. The Debtors selected Epiq Bankruptcy Solutions LLC as claims, noticing and balloting agent. The U.S. Trustee for Region 6 appointed five creditors to serve on an Official Committee of Unsecured Creditors on these cases. The Committee selected Cadwalader Wickersham & Taft LLP as counsel. As of Nov. 29, 2007, the Debtors' financial statements reflected assets totaling about $334 million and liabilities totaling about $396 million. HINES HORTICULTURE: Files Schedules of Assets and Liabilities ------------------------------------------------------------- Bill Rochelle of Bloomberg News reports that Hines Horticulture, Inc., filed its schedule of assets and liabilities with the U.S. Bankruptcy Court for the District of Delaware on Sept. 19, 2008, listing assets of $30 million and debt of $218 million. It isn't clear from the schedule how much overlap there is between the Debtor and its Hines Nurseries, Inc., affiliate, although both show secured claims of $36 million, according to the report. About Hines Horticulture Headquartered in Irvine, California, Hines Horticulture, Inc. -- http://www.hineshorticulture.com/-- operates nursery facilities located in Arizona, California, Oregon and Texas. Through its affiliate, the company produces and distributes horticultural products. As of August 2008, the Debtors employed about 1,600 workers. The company and its affiliate, Hines Nurseries, Inc., filed for Chapter 11 protection on Aug. 20, 2008 (Bankr. D. Del. Case No. 08-11922). Anup Sathy, Esq., and Ross M. Kwasteniet, Esq., at Kirkland & Ellis, LLP, represent the Debtors in their restructuring efforts. Robert S. Brady, Esq., and Edmon L. Morton, Esq., at Young, Conaway, Stargatt & Taylor, serve as the Debtors' co-counsel. The Debtors selected Epiq Bankruptcy Solutions LLC as their voting and claims agent, and Financial Balloting Group LLC as their securities voting agent. When the Debtors filed for protection against their creditors, they listed assets and debts of between $100 million and $500 million each. ICFQ DESARROLLOS: U.S. Trustee Sets 341(a) Meeting for October 10 ----------------------------------------------------------------- The United States Trustee for the District of Puerto Rico will convene a meeting of creditors of ICFQ Desarrollos Carraizo Inc. at 11:00 a.m., on Oct. 10, 2008, in Courtroom 1 at the U.S. Post Office and Courthouse Building in San Juan, Puerto Rico. This is the first meeting of creditors required under Section 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 Debtor under oath about the company's financial affairs and operations that would be of interest to the general body of creditors. Based Caguas, Puerto Rico, real estate developer ICFQ Desarrollos Carraizo, Inc., filed for Chapter 11 protection on July 3, 2008 (Bankr. D. P.R. Case No. 08-04351). Charles A. Cuprill, P.S.C., Law Offices, serves as the Debtor's bankruptcy counsel. When the Debtor filed for protection from its creditors, it listed estimated assets of $55,985,918 and debts of $3,687,843. INTERGRAPH CORP: S&P Holds 'B+' Rating; Revises Outlook to Pos. -------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Huntsville, Alabama-based Intergraph Corp. to positive from stable as a result of favorable operating trends and improved debt leverage. At the same time, S&P affirmed the ratings on the company, including the 'B+' corporate credit rating. The rating on Intergraph reflects the highly competitive and consolidating government information technology services industry, a short track record at current profitability levels, and high leverage. A recurring and predictable revenue stream stemming from long-term contracts and entrenched customer relationships offsets these factors. Privately held Intergraph designs and provides computer graphics software and services for the commercial and government sectors. The outlook on Intergraph is positive, with support from expectations for solid growth, continued free operating cash flow generation, and a recurring revenue base. "Further improvement in business mix, with continued higher growth in the company's Process, Power & Marine segment, leading to an increase in profitability and free cash flow, and debt-to-EBITDA in the mid-3x area, could result in a ratings upgrade," noted Standard & Poor's credit analyst David Tsui. "We could revise the outlook to stable if Intergraph experiences customer defections and margin erosions because of loss of technology leadership, or if discretionary management decisions on investments or shareholder returns lead to an increase in the debt-to-EBITDA ratio to the 5x level," he continued. INTERMET CORP: Court Gives Final Authority to Use Cash Collateral ----------------------------------------------------------------- Bill Rochelle of Bloomberg News reports that Intermet Corp. and its debtor-affiliates were given final authority on Sept. 19, 2008, to use cash representing collateral for the secured lenders. The revolving credit lenders owed $20 million are to receive $1.5 million at the end of every month until the loan is paid off, according to the report. The first-lien lenders, owed almost $53 million including contingent liabilities on letters of credit, are to receive interest payments at an increased rate, according to the report. The third-lien lenders, owed $97.4 million, won't be paid interest, although interest will continue to accrue, according to the report. As reported by the Troubled Company Reporter on August 22, 2008, the Bankruptcy Court authorized the Debtors to use, on an interim basis, cash collateral of several lenders including CapitalSource Finance LLC, as collateral agent. The proceeds of the cash collateral will be used to maintain daily operations and to fund working capital needs. The Debtors told the Court at that time that the absence of cash collateral will cause irreparable harm and prejudice to their estates and all parties in interest. About Intermet Corp. Based in Fort Worth, Texas, Intermet Corp. designs and manufactures machine precision iron and aluminum castings for the automotive and industrial markets. The company and its debtor- affiliates filed for chapter 11 protection on Aug. 12, 2008 (D. Del. Case Nos. 08-11859 to 08-11866 and 08-11868 to 08-11878). Dennis F. Dunne, Esq., Matthew S. Barr, Esq., and Michael E. Comerford, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as the Debtors' counsel. James E. O'Neill, Esq., Laura Davis Jones, Esq. and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors' co-counsel. Kurtzman Carson Consultants LLC serves as the Debtors' claims, notice and balloting agent. An Official Committee of Unsecured Creditors has been formed in this case. When the Debtors filed for protection from their creditors, they listed assets of between $50 million and $100 million and debts of between $100 million and $500 million. This is the Debtors' second bankruptcy filing. Intermet Corp., along with its debtor-affiliates, filed for Chapter 11 protection on Sept. 29, 2004 (Bankr. E.D. Mich. Case Nos. 04-67597 through 04-67614). Salvatore A. Barbatano, Esq., at Foley & Lardner LLP, represents the Debtors. In their previous bankruptcy filing, they listed $735,821,000 in total assets and $592,816,000 in total debts. Intermet Corporation emerged from this first bankruptcy filing in November 2005. INTERMET CORP: CapitalSource to Withdraw Case Conversion Bid ------------------------------------------------------------ Kenneth J. Ottaviano, Esq., at KATTEN, MUCHIN, ROSENMAN, LLP, in Chicago, Illinois, counsel to CapitalSource Finance LLC, advised the U.S. Bankruptcy Court for the District of Delaware at a Sept. 16 hearing that the first lien revolving lenders "have reached an economic accommodation" with Intermet Corp. and its debtor- affiliates. With respect to CapitalSource's motion to convert the case, Mr. Ottaviano said "we will be asking the Court for permission to withdraw that motion without prejudice and hopefully this case can move forward." As reported by the Troubled Company Reporter on Sept. 11, 2008, the Debtors' prepetition lenders pressed the Court to convert the Debtors' chapter 11 case to a chapter 7 liquidation proceeding. CapitalSource, as administrative and collateral agent for the prepetition revolving lenders, said that the Debtors' financial condition is continuing to rapidly deteriorate. It added that the Debtors have no realistic hope for a constructive rehabilitation of their business operations. CapitalSource pointed to the Debtors substantial, continuing operating losses since the bankruptcy filing. Although the Debtors' estates include fixed assets, these assets are already fully encumbered, and do not provide working capital needed to continue operations under chapter 11 of the U.S. Bankruptcy Code, CapitalSource argued. CapitalSource also pointed out that the Debtors simply cannot survive on cash collateral alone, and that the Debtors are on the verge of being administratively insolvent. The Debtors are unable to replenish their cash given their cash burn rate of more than $250,000 per day coupled with the devastating effects of their contracts with 19 major customers, including Ford, GM and Chysler. A temporary concession from these customers, CapitalSource contended, is merely a temporary band-aid to slow the hemorrhage. The TCR, citing The Lake Gazette, said on Sept. 26 that since the bankruptcy filing, Intermet has been working with major customer representatives to negotiate an accommodation agreement. Matthew Barr, Esq., counsel to Intermet, told the Court at the Sept. 16 hearing that "Intermet has agreements in principal with most of its major customers." Intermet, the Lake Gazette report says, is proposing a 21-month price agreement with its suppliers while it "endeavors consolidation of its operation as it transitions through filing and getting out of bankruptcy through a merger sale or through a standalone plan of reorganization." A meeting of creditors pursuant to Section 341 of the Bankruptcy Code was held September 22, 2008, at 2:00 p.m. in the case. About Intermet Corp. Based in Fort Worth, Texas, Intermet Corp. designs and manufactures machine precision iron and aluminum castings for the automotive and industrial markets. The company and its debtor- affiliates filed for chapter 11 protection on Aug. 12, 2008 (D. Del. Case Nos. 08-11859 to 08-11866 and 08-11868 to 08-11878). Dennis F. Dunne, Esq., Matthew S. Barr, Esq., and Michael E. Comerford, Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve as the Debtors' counsel. James E. O'Neill, Esq., Laura Davis Jones, Esq. and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, in Wilmington, Delaware, serve as the Debtors' co-counsel. Kurtzman Carson Consultants LLC serves as the Debtors' claims, notice and balloting agent. An Official Committee of Unsecured Creditors has been formed in this case. When the Debtors filed for protection from their creditors, they listed assets of between $50 million and $100 million and debts of between $100 million and $500 million. This is the Debtors' second bankruptcy filing. Intermet Corp., along with its debtor-affiliates, filed for Chapter 11 protection on Sept. 29, 2004 (Bankr. E.D. Mich. Case Nos. 04-67597 through 04-67614). Salvatore A. Barbatano, Esq., at Foley & Lardner LLP, represents the Debtors. In their previous bankruptcy filing, they listed $735,821,000 in total assets and $592,816,000 in total debts. Intermet Corporation emerged from this first bankruptcy filing in November 2005. INTERMUNE INC: June 30 Balance Sheet Upside-Down by $81.5 Million ----------------------------------------------------------------- Intermune, Inc. disclosed in a Securities and Exchange Commission filing that as of June 30, 3008, its balance sheet showed $210.4 million in total assets, $128.9 million in total liabilities, resulting to $81.5 million in shareholders' deficit. Intermune posted $26.5 million in net losses on $8.1 million in net revenues for three months ended June 30, 2008, compared with $19.8 million in net losses on $25.4 million in net revenues for three months ended June 30, 2007. The company posted $52.8 million in net losses on $17.4 million in net revenues for six months ended June 30, 2008, compared with $40.6 million in net losses on $45.7 million in net revenues for six months ended June 30, 2007. Intermune's quarterly report on Form 10-Q is available free of charge at http://researcharchives.com/t/s?32c2 About InterMune Inc. Brisbane, Calif.-based InterMune Inc. (Nasdaq: ITMN) -- http://www.intermune.com/-- is a biotechnology company, engages in the research, development, and commercialization of therapies in pulmonology and hepatology. INTERMUNE INC: BNP Paribas Discloses 5.8% Equity Stake ------------------------------------------------------ BNP Paribas Arbitrage SA disclosed in a Securities and Exchange Commission filing that it beneficially owns 2,284,758 shares of InterMune, Inc.'s common stock, representing 5.8% of the shares issued and outstanding. Brisbane, Calif.-based InterMune Inc. (Nasdaq: ITMN) -- http://www.intermune.com/-- is a biotechnology company, engages in the research, development, and commercialization of therapies in pulmonology and hepatology. Intermune, Inc. disclosed in a Securities and Exchange Commission filing that as of June 30, 3008, its balance sheet showed $210.4 million in total assets, $128.9 million in total liabilities, resulting to $81.5 million in shareholders' deficit. Intermune posted $26.5 million in net losses on $8.1 million in net revenues for three months ended June 30, 2008, compared with $19.8 million in net losses on $25.4 million in net revenues for three months ended June 30, 2007. IRIDIUM SATELLITE: GHL Agreement Cues S&P to Put on Positive Watch ------------------------------------------------------------------ Standard & Poor's Ratings Services placed its ratings on Bethesda, Maryland-based satellite services provider Iridium Satellite LLC, including the 'B-' corporate credit rating, on CreditWatch with positive implications. This action follows the announcement that Iridium has signed a definitive agreement to combine with GHL Acquisition Corp., a special-purpose acquisition company sponsored by Greenhill & Co., Inc. Upon completion of the transaction, the combined enterprise will be renamed Iridium Communications Inc. and will apply for listing on the NASDAQ. The transaction is expected to close in early 2009, and is subject to approval by GHL shareholders and the FCC, and the expiration of the applicable Hart-Scot-Rodino waiting period. "The CreditWatch listing reflects our view that the proposed transaction will provide additional capital to partially fund Iridium's development of its second-generation satellite fleet, Iridium NEXT," said Standard & Poor's credit analyst Susan Madison. Iridium NEXT is estimated to cost approximately $2 billion. "We also expect that as a publicly traded company, Iridium will benefit from better access to capital and greater financial transparency," added Ms. Madison. J&D RESTAURANT: Files for Chapter 11 Bankruptcy ----------------------------------------------- J&D Restaurant Holdings, LLC has filed for Chapter 11 bankruptcy protection, Paul Brinkmann of the South Florida Business Journal reported Thursday. J&D Restaurant Holdings, LLC, owns 13 R.J. Gator's restaurants in Florida, including locations in Jupiter, Palm Beach Gardens and Boynton Beach. The restaurant chain is owned by Kevin Dalton and business partner Timothy Jeffrey. According to Mr. Brinkmann, J&D purchased R.J. Gators last year for $1.85 million, citing previously published reports. The report said that other casual dining restaurants in South Florida had earlier filed for Chapter 11, including Shells Seafood and T.G.I. Friday's. About J&D Restaurant Based in West Palm Beach, Florida, J&D Restaurant Holdings, LLC owns a chain of R.J. Gator's restaurants. The company filed for Chapter 11 relief on Sept. 24, 2008 (Bankr. S.D. Fla. Case No. 08-23858) Bradley S. Shraiberg, Esq. at Kluger Peretz Kaplan & Berlin represents the Debtor as counsel. When the Debtor filed for protection from its creditors, it listed assets of $1 million to $10 million, and debts of $1 million to $10 million. The company listed the Internal Revenue Service in Philadelphia as its largest unsecured creditor with a claim of $354,668 followed by the Florida Department of Revenue ($247,000) and the Indian River Mall in Pittsburgh, PA (trade debt - $115,024). JEFFERSON COUNTY: Moody's Cuts $270MM GO Debt Rating to 'B3' ------------------------------------------------------------ Moody's Investors Service has downgraded to B3 from Ba3 the rating on Jefferson County's $270 million in outstanding general obligation debt. At this time, Moody's has also downgraded: to Caa1 from B1 the rating on the county's $86.7 million in outstanding lease revenue warrants issued through the Jefferson County Public Building Authority; to B3 from B1 the rating on the county's $996.8 million in limited obligation school warrants secured by sales taxes; to B3 from Ba3 the rating on $20.3 million in special tax bonds issued by the Birmingham-Jefferson Civic Center Authority partially secured by the county's occupational tax; and to B3 from B1 the rating on $40.86 million in debt issued by BJCCA partially secured by a beverage tax and lodging tax levied and the collected by the county. The county's sewer revenue bonds have been affirmed at Caa3. All ratings remain on review for possible downgrade The downgrade of the rating on the county's general obligation debt reflects the county's failure to make a principal payment on Bank Bonds held by liquidity providers due September 15, 2008, constituting an Event of Default under the Trust Indenture and the Liquidity Facility. Given that Moody's ratings do not apply to Bank Bonds, Moody's does not view the default on the Bank Bonds as a default on the general obligations that it rates. While a forbearance agreement is in place with the liquidity provider who is owed the payment, the nonpayment indicates further weakening of the county's overall credit quality. The downgrade on the lease revenue bonds reflects the nature of the security, which is subject to annual budget and appropriation of the county and therefore is weaker than the general obligation rating. Moody's has downgraded the sales tax-secured limited obligation school warrants and the two BJCCA obligations to B3. Moody's believes that there is high risk that the county will pursue a bankruptcy filing given that the county has continued to be unable to craft a solution to the sewer system financial crisis, has missed a payment on the general obligation Bank Bonds, and is now embroiled in a lawsuit and countersuit with the sewer debt bond insurers. Given the lack of history of municipal bankruptcy, Moody's is unable to determine what county revenues, assets and debt obligations could be affected by bankruptcy proceedings and that a bankruptcy filing could weaken the county's ability to meet these other debt obligations. The affirmation of the Caa3 sewer rating reflects the ongoing strong risk of nonpayment on the sewer debt. At this time, the Bond Trustee is utilizing the cash in the Debt Service Reserve Fund to make debt service payments on its outstanding sewer debt. The trustee reports that the cash in the Debt Service Reserve Fund will be depleted by the end of this month, at which time the trustee will draw on surety policies to meet debt service on the sewer obligations. JPMORGAN AUTO: Fitch Assigns 'BB' Rating on $6.37MM Certificates ---------------------------------------------------------------- Fitch rated JPMorgan Auto Receivables Trust 2008-A as: -- $121,000,000 3.41250% class A-1 notes 'F1+'; -- $81,000,000 4.82% class A-2 notes 'AAA'; -- $86,000,000 5.22% class A-3 notes 'AAA'; -- $19,700,000 5.22% class A-4 notes AAA'; -- $14,570,000 5.22% class B notes 'AA'; -- $11,840,000 5.22% class C notes 'A'; -- $12,740,000 5.22% class D notes 'BBB'; -- $6,370,000 5.22% certificates 'BB'. JUNIPER NETWORKS: S&P Puts 'BB' Corp. Credit Under Positive Watch ----------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB' corporate credit rating on Juniper Networks Inc. on CreditWatch with positive implications. The Sunnyvale, California-based company derives about 75% of its revenues from its Infrastructure segment, which provides router and Ethernet switching products, and the balance from networking solutions that provides network security and bandwidth optimization. Juniper Networks continues to post impressive revenue gains including a 32% year-over-year increase in sales in the June quarter, with particular strength in the Infrastructure segment, enabling it to generate strong discretionary cash flow. Cash has grown to $2.3 billion and the company's sole debt issue, $400 million of senior notes, converted into stock on June 16. "An important factor that we will examine in consideration of a possible upgrade," said Standard & Poor's credit analyst Richard Siderman, "will include the company's ability to maintain growth momentum in what will continue to be an intensely competitive environment." Another factor is the company's financial policy, given that there are over $1 billion of stock repurchase authorizations remaining. KING PHARMACEUTICALS: Moody's Rates Proposed $1BB Facilities 'Ba2' ------------------------------------------------------------------ Moody's Investors Service assigned a Ba2 rating to the proposed new $1 billion senior secured credit facilities of King Pharmaceuticals, Inc. At the same time, Moody's affirmed King's Ba3 Corporate Family Rating. The outlook for King's ratings remains stable. King is entering the new senior secured credit facilities in conjunction with its revised proposal to acquire Alpharma, Inc. for approximately $1.6 billion in cash. The acquisition proposal is subject to shareholder and required regulatory approvals. Moody's most recent previous rating action on King was an affirmation of its ratings on August 25, 2008 when the company announced its proposal to acquire Alpharma for $1.4 billion. "The affirmation of King's Ba3 ratings reflects sound strategic rationale for acquiring Alpharma, and good cushion in King's credit metrics even following the recent launch of Altace generics," stated Michael Levesque, Moody's Senior Vice President. Despite the increased offer price for Alpharma, the affirmation of King's Ba3 Corporate Family rating continues to reflect: (1) cushion within the rating category based on good CFO/Debt and FCF/Debt metrics; (2) the sound strategic rationale for the transaction, which would significantly expand King's product offerings for chronic pain and also provide increased product diversification; and (3) the expectation that free cash flow will be applied to debt reduction. In addition, Moody's expects the combined company to achieve annual cost synergies at between $50 million and $70 million in the second year following the close of the transaction. Moody's believes the acquisition should provide an improved growth platform, helping to mitigate negative rating pressure that could otherwise develop based on King's exposure to generic competition. King is already facing rapidly declining revenues resulting from the recent loss of exclusivity on Altace, one of its key products. Successful execution of King's late stage pipeline, including the recent FDA filing for Remoxy and two additional potential FDA filings in 2008, will be a critical factor in the company's rating. The stable rating outlook reflects Moody's assumption that King will comfortably maintain key credit ratios within Moody's "Ba" ranges for pharmaceutical companies, including adjusted CFO/Debt of 15% to 25% and FCF/Debt of 10% to 15%. Moody's anticipates that liquidity will remain strong, based on good free cash flow, availability under the credit agreement, and ample cushion under financial covenants. The Ba2 rating on the new senior secured credit facilities is 1- notch higher than the Ba3 Corporate Family rating based on its senior position in King's capital structure, and Moody's understanding that collateral will consist of an all-asset pledge including hard assets and intellectual property. The Ba2 rating on the secured credit facilities also reflects loss absorption provided by King's $400 million senior unsecured convertible notes due 2026, which Moody's does not rate. Following is a summary of ratings assigned. The ratings remain subject to Moody's review of final documentation. -- $150 million senior secured first lien revolving credit facility, Ba2 (LGD3, 33%) -- $350 million senior secured first lien term loan A due 2013, Ba2 (LGD3, 33%) -- $500 million senior secured first lien term loan B due 2014, Ba2 (LGD3, 33%) Ratings affirmed: -- Ba3 Corporate Family Rating -- Ba3 Probability of Default Rating -- Speculative grade liquidity rating of SGL-1 Moody's anticipate withdrawing the existing Ba3 (LGD4, 52%) rating on King's $475 million senior secured credit facility due 2012 upon closing of the transaction. King Pharmaceuticals, Inc., headquartered in Bristol, Tennessee, is a vertically integrated pharmaceutical company that develops, manufactures, markets and sells branded pharmaceutical products. The company targets specialty-driven pharmaceutical markets, with a focus on neuroscience, hospital and acute care medicines. King had total revenues of approximately $1.91 billion during the twelve months ended June 30, 2008. LEHMAN BROTHERS: SEC Subpoenas Funds on Share Manipulation ---------------------------------------------------------- The U.S. Securities and Exchange Commission subpoenaed more than two dozen hedge funds on Sept. 22 as part of its probe on whether traders were spreading rumors to manipulate shares, Kara Scannell at The Wall Street Journal reports, citing people familiar with the matter. Elizabeth MacDonald at Foxbusiness.com relates that the SEC has subpoenaed 50 hedge funds to find out if they were engaging in rumor mongering to drive down shares in 19 financial companies "they had shorted in naked short sales to book a profit." According to WSJ, the subpoenas identified these financial institutions affected by manipulation: -- American International Group Inc., -- Goldman Sachs Group Inc., -- Lehman Brothers Holdings Inc., -- Morgan Stanley, -- Washington Mutual Inc., and -- Merrill Lynch & Co. WSJ relates that the subpoenas seek trading data -- include details of funds' positions in stocks, derivatives, swaps and other financial instruments, when trades were initiated and settled, and whom they involved -- and e-mail communications between Sept. 1 and Sept. 19, when certain financial markets came close to freezing up. Bloomberg News relates that the Federal Bureau of Investigation is probing the financial troubles of AIG, Lehman Brothers, Fannie Mae and Freddie Mac. Evan Perez at WSJ relates that law enforcement officials said that the FBI's preliminary inquiries are focusing on whether fraud helped cause some of the troubles at these four companies. According to WSJ, the U.S. Attorney in Brooklyn has brought charges against brokers who allegedly tricked some institutional investors into purchasing risky auction-rate securities. About Lehman Brothers Lehman Brothers Holdings Inc. -- http://www.lehman.com-- is the fourth largest investment bank in the United States. For more than 150 years, Lehman Brothers has been a leader in the global financial markets by serving the financial needs of corporations, governmental units, institutional clients and individuals worldwide. Through its team of more than 25,000 employees, Lehman Brothers offers a full array of financial services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. Its worldwide headquarters in New York and regional headquarters in London and Tokyo are complemented by a network of offices in North America, Europe, the Middle East, Latin America and the Asia Pacific region. The firm, through predecessor entities, was founded in 1850. Lehman filed for chapter 11 bankruptcy September 15, 2008 (Bankr. S.D.N.Y. Case No.: 08-13555). Lehman's bankruptcy petition listed $639 billion in assets and $613 billion in debts, effectively making the firm's bankruptcy filing the largest in U.S. history. The September 15 Chapter 11 filing by Lehman Brothers Holdings, Inc., does not include any of its subsidiaries. Subsidiary LB 745 LLC, submitted a Chapter 11 petition on Sept. 16 (Case No. 08-13600). The Debtors' bankruptcy cases are handled by Judge James M. Peck. Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife, Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil, Gotshal & Manges, LLP, in New York, represent Lehman. Epiq Bankruptcy Solutions serves as claims and noticing agent. Dennis F. Dunne, Esq., Luc A. Despins, Esq., and Wilbur F. Foster, Jr., Esq., at MILBANK, TWEED, HADLEY & McCLOY LLP, in New York, and Paul Aronzon, Esq., and Gregory A. Bray, Esq., at MILBANK in Los Angeles, California, represent the official unsecured creditors committee. International Operations Collapse Lehman Brothers International (Europe), the principal UK trading company in the Lehman group, was placed into administration, together with Lehman Brothers Ltd., LB Holdings PLC and LB UK RE Holdings Ltd. These are currently the only UK incorporated companies in administration. Tony Lomas, Steven Pearson, Dan Schwarzmann and Mike Jervis, partners at PricewaterhouseCoopers LLP, have been appointed as joint administrators to Lehman Brothers International (Europe) on September 15, 2008. The joint administrators have been appointed to wind down the business. Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc. filed for bankruptcy in the Tokyo District Court on September 16. The two units of Lehman Brothers Holdings, Inc., which have filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York, have combined liabilities of JPY4 trillion -- US$38 billion). Lehman Brothers Japan Inc. reported about JPY3.4 trillion ($33 billion) in liabilities in its petition. Akio Katsuragi, a former Morgan Stanley executive, runs Lehman's Japan units. Lehman Brothers Asia Limited, Lehman Brothers Securities Asia Limited and Lehman Brothers Futures Asia Limited have suspended its operations with immediate effect, including ceasing to trade on the Hong Kong Securities Exchange and Hong Kong Futures Exchange, until further notice. The Asian units' asset management company, Lehman Brothers Asset Management Limited, will continue to operate on a business as usual basis. A further notice concerning the retail structured products issued by or arranged by any Lehman Brothers group company will be issued as soon as possible, a press statement said. LEHMAN BROTHERS: S&P Withdraws Ratings in All Related Entities -------------------------------------------------------------- Standard & Poor's Ratings Services has withdrawn its ratings on Lehman Brothers Holdings Inc. and all related entities. "LBHI filed for Chapter 11 bankruptcy protection on Sept. 15, 2008. Subsequently, a court order was granted to Securities Investor Protection Corp. beginning a liquidation proceeding against Lehman Brothers Inc., LBHI's principal U.S. broker-dealer subsidiary, while its U.K.-based broker-dealer affiliate, Lehman Brothers International (Europe), was placed under an administrator," said Standard & Poor's credit analyst Scott Sprinzen. LOEHAMNN'S CAPITAL: S&P Retains 'CCC-' Issue-Level Notes Rating --------------------------------------------------------------- Standard & Poor's Ratings Services assigned a recovery rating to Loehamnn's Capital Corp.'s $110 million senior secured notes due 2011. S&P assigned a recovery rating of '6' to the notes, indicating the expectation for negligible (0%-10%) recovery in the event of a payment default. The 'CCC-' issue-level rating on the notes remains unchanged. The corporate credit rating on parent Loehmann's Holdings Inc. is 'CCC+' and the rating outlook is negative, reflecting the S&P could lower the rating if continued declines in operations further impair liquidity. Ratings List Loehmann's Holdings Inc. Corporate Credit Rating CCC+/Negative/-- Loehmann's Capital Corp. Senior Secured CCC- New Rating Loehmann's Capital Corp. Senior Secured Recovery Rating 6 LVPR ENTERPRISES: Case Summary & 11 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: LVPR Enterprises, LLC aka Belmont Steaks 139 Flatbush Avenue Brooklyn, NY 11217 Bankruptcy Case No.: 08-46382 Type of Business: The Debtor operates steak house restaurants. Chapter 11 Petition Date: September 25, 2008 Court: Eastern District of New York (Brooklyn) Judge: Carla E. Craig Debtor's Counsel: Jonathan S. Pasternak, Esq. jsp@rattetlaw.com Rattet, Pasternak & Gordon Oliver, LLP 550 Mamaroneck Avenue, Suite 510 Harrison, NY 10528 Tel: (914) 381-7400 Fax: (914) 381-7406 Total Assets: $1,258,000 Total Debts: $558,200 A list of the Debtor's largest unsecured creditors is available for free at: http://bankrupt.com/misc/nyeb08-46382.pdf LYNX 2002-1: S&P Maintains 'CCC' Rating on Class D Notes --------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'AAA' rating on the class A notes issued by Lynx 2002-1 Ltd., a cash flow CDO of CDO transaction collateralized primarily by CDOs and commercial mortgage-backed securities managed by Structured Credit Partners LLC. The rating withdrawal follows the complete paydown of the class A notes after the class D failed its par coverage test on the Aug. 8, 2008, payment date. Rating Withdrawn Lynx 2002-1 Ltd. Rating Balance ------ ------- Class To From Current Original ----- -- ---- ------- -------- A NR AAA 0.000 $300,000,000 Other Outstanding Ratings Lynx 2002-1 Ltd. Balance ------- Class Rating Current Original ----- ------ ------- -------- B AAA 63.587 65.000 C BBB 97.000 97.000 D CCC- 25.685 20.000 NR -- Not rated. MEDAVANT HEALTHCARE: Completes Sale of Business to Marlin Equity --------------------------------------------------------------- MedAvant Healthcare Solutions closed the sale of its business to Marlin Equity, a private equity firm with more than $300 million under management. As reported in the Troubled Company Reporter on Sept. 11, 2008, MedAvant Healthcare Solutions said that an affiliate of Marlin Equity emerged as the winning bidder in the company's Sept. 8 auction with a final purchase price of $24.35 million. The U.S. Bankruptcy Court for the District of Delaware approved the results of the auction on Sept. 9. "Building long-term value is our core investment strategy," said George Kase, Partner, of Marlin Equity. "And this is our plan with MedAvant. The company will continue its long-term commitment to providing its clients with quality services and support. The relationship with Marlin Equity Partners will enable MedAvant to pursue an aggressive growth strategy." "We are very pleased with the results of our reorganization process and our new partnership with Marlin Equity," Peter Fleming, MedAvant's interim chief executive officer, said. "During the past year we have divested our non-core business lines in order to focus on our electronic data interchange business." In addition, we needed to transform our balance sheet in order to provide the company with the freedom it needs to operate in this market," Mr. Fleming said. "Lastly, we needed a new financial partner to invest capital toward the growth of our company. We have accomplished all of these objectives and we are now 100% focused on building a new, stronger company." About MedAvant Healthcare Solutions Headquartered in Norcross, Georgia, MedAvant Healthcare Solutions (NASDAQ:PILL) -- http://www.medavanthealth.com/-- provides healthcare transaction processing, medical cost containment services, business process outsourcing services and related value- added products to physicians, payers, pharmacies, medical laboratories, and other healthcare suppliers. MedAvant is a trade name of ProxyMed Inc. Headquartered in Norcross, Georgia, ProxyMed Inc. fka MedUnite, Inc. -- http://www.medavanthealth.com-- facilitates the exchange of medical claim and clinical information. The company and two of its affiliates filed for Chapter 11 protection on July 23, 2008 (Bankr. D. Del. Lead Case No.08-11551). Kara Hammond Coyle, Esq., and Michael R. Nestor, Esq., at Young Conaway Stargatt & Taylor, L.L.P., Michael P. Richman at Foley & Lardner LLP, and Court H. Houseworth at Cain Brothers & Company LLC represent the Debtors in their restructuring efforts. The Debtors disclosed $40,655,000 in total consolidated assets and $47,640,000 in total consolidated debts as of December 31, 2007. In its petition, ProxyMed Transaction Services, Inc. disclosed $10,000,0000 in estimated assets and $10,000,000 in estimated MERISANT WORLDWIDE: June 30 Balance Sheet Upside-Down by $212.5MM ----------------------------------------------------------------- Merisant Worldwide, Inc. disclosed in a Securities and Exchange Commission that as of June 30, 2008, its balance sheet showed $429.1 million in total assets, $641.4 million in total liabilities, resulting to $212.5 million in shareholders' deficit. Merisant Worldwide posted $14.4 million in net losses on $67 million in net revenues for three months ended June 30, 2008, compared with $10.5 million in net profit on $71.1 million in net revenues for three months ended June 30, 2007. The company posted $23.7 million in net losses on $135.9 billion in net revenues for six months ended June 30, 2008, compared with $1.6 million in net losses on $140.4 billion in net revenues for six months ended June 30, 2007. To maximize value, the company management is focused on refinancing or restructuring all or part of its debt obligations. On Jan. 11, 2009, approximately $4.1 million principal amount of the Term A loans and any revolving loans outstanding under its senior credit facility will become due and payable, and it will no longer be able to draw revolving loans or issue letters of credit under Merisant Worldwide's senior credit facility. In addition, interest on the company's 12-1/4% senior subordinated discount notes due 2014 will become payable in cash commencing on May 15, 2009. The indenture governing the Notes limits Merisant Worldwide's ability to pay dividends or loan cash to our company, which has no operations of its own. On March 17, 2008, Merisant Worldwide launched efforts to arrange a new $245 million senior secured credit facility, comprised of $210 million of term loans and a $35 million revolving loan facility. On April 2, 2008, Merisant Worldwide ceased these particular refinancing efforts due to adverse market conditions that prevented it from obtaining favorable terms. The company may engage in discussions from time to time with its noteholders on ways to restructure all or part of its other debt obligations. Copy of Merisant Worldwide's quarterly report is available free of charge at http://researcharchives.com/t/s?32b3 About Merisant Worldwide Headquartered in Chicago, Illinois, Merisant Worldwide Inc. -- http://www.merisant.com/-- through its operating company Merisant Co. is a player in marketing of low-calorie tabletop sweeteners. The company's premium-priced brands include Equal and Canderel. In addition to Equal and Canderel, Merisant Company markets its products under 18 other regional brands. The company sells its brands in over 90 countries. * * * In April 2008, Standard & Poor's Ratings Services said that the ratings and outlook on Merisant Worldwide Inc. (CCC/Negative/--) and operating company Merisant Co. would not be immediately affected by the company's announcement that it would cease its efforts to refinance its existing senior secured credit facilities. MERISANT WORLDWIDE: Operating Unit Has $83MM Deficit at June 30 --------------------------------------------------------------- Merisant Company disclosed in a Securities and Exchange Commission that as of June 30, 2008, its balance sheet showed $427.2 million in total assets, $510.2 million in total liabilities, resulting to $83 million in shareholders' deficit. Merisant Co. posted $10.5 million in net losses on $67 million in net revenues for three months ended June 30, 2008, compared with $14 million in net profit on $71.1 million in net revenues for three months ended June 30, 2007. The company posted $16.9 million in net losses on $135.9 billion in net revenues for six months ended June 30, 2008, compared with $5.4 million in net profit on $140.4 billion in net revenues for six months ended June 30, 2007. A copy of Merisant's quarterly report is available free of charge at http://researcharchives.com/t/s?32b4 About Merisant Headquartered in Chicago, Illinois, Merisant Worldwide Inc. -- http://www.merisant.com/-- through its operating company Merisant Co. is a player in marketing of low-calorie tabletop sweeteners. The company's premium-priced brands include Equal and Canderel. In addition to Equal and Canderel, Merisant Company markets its products under 18 other regional brands. The company sells its brands in over 90 countries. * * * In April 2008, Standard & Poor's Ratings Services said that the ratings and outlook on Merisant Worldwide Inc. (CCC/Negative/--) and operating company Merisant Co. would not be immediately affected by the company's announcement that it would cease its efforts to refinance its existing senior secured credit facilities. MILLENNIUM INORGANIC: S&P Cuts Rating to 'CCC+'; Outlook Negative ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Millennium Inorganic Chemicals to 'CCC+' from 'B-' and removed the rating from CreditWatch where it was placed with negative implications on April 3, 2008. The outlook is negative. At the same time S&P lowered the issue-level rating on Millennium's revolving credit facility and first-lien bank loans to 'B-' from 'B+'. S&P revised the recovery rating to '2', which indicates its expectation of substantial (70% to 90%) recovery in the event of a payment default, from '1'. S&P lowered the issue- level rating on the second-lien bank loan to 'CCC-' from 'CCC'. The recovery rating is unchanged at '6', which indicates its expectation of negligible (0% to 10%) recovery in the event of default. All issue-level ratings were removed from CreditWatch where they were placed with negative implications on April 3, 2008. "The downgrades reflect our heightened concern about Millennium's financial covenants, expectation of weaker operating results in the next few quarters, and an increased concern about liquidity and financial flexibility as the company navigates through a difficult operating environment," said Standard & Poor's credit analyst Henry Fukuchi. "The downgrade also reflects our expectation of continued challenging market conditions as a result of weak economic conditions, the domestic housing downturn, and elevated energy and input costs for titanium dioxide producers." In light of ongoing operating challenges and difficult credit market conditions, tight financial covenants could constrain liquidity in the next few quarters, or, if covenants are amended, credit margins could meaningfully increase on the company's borrowing, which would further weaken profitability and credit metrics. S&P notes the company's total leverage covenant steps down to 5x in the fourth quarter of 2008 from 5.5x, and the interest coverage ratio increases to 2.25x in the fourth quarter of 2008 from 2x. S&P believes an equity cure could be necessary for the company to with its covenants in the fourth quarter of 2008. In addition, the company's availability on its revolving credit facility has not improved as expected. The rating on Millennium reflects the company's limited business diversity, exposure to cyclical end markets and commodity product cycles, mediocre operating margins in recent years, and weak cash flow protection measures. Mitigating factors include the company's good geographic diversity, solid position in TiO2 markets, and ownership by The National Titanium Dioxide Co. Ltd. (Cristal), an industry player with experience operating a very profitable TiO2 plant in the Middle East. Cristal acquired Millennium in May 2007 from Lyondell Chemical Co. NORTHERN BERKSHIRE: Fitch Lifts Revenue Bonds Rating to 'BB+' ------------------------------------------------------------- Fitch Ratings has upgraded the rating on approximately $26.7 million of Massachusetts Health and Educational Facilities Authority (Northern Berkshire Healthcare) revenue bonds, series 2004, to 'BB+' from 'BB'. The Rating Outlook is Stable. The upgrade is based on Northern Berkshire Healthcare's continued financial success demonstrated by positive operating profitability, NBH's strong market position of approximately 68.2% in the service area, and continued inpatient and outpatient utilization growth. NBH implemented a turnaround plan in fiscal 2006 under the direction of FTI Cambio Health Solutions and has witnessed financial and operational improvement to date. As of the 10-month interim period ending July 31, 2008 (unaudited), NBH earned approximately $1.3 million (1.9% margin) from operations, which marks the first time since 2000 NBH has been profitable. Subsequently, NBH's overall financial profile has improved as liquidity and coverage indicators have increased. Through the July 2008 interim period, NBH had 81 days cash on hand and MADS coverage of 2.5x, which compare favorably to Fitch's 'Below Investment Grade' medians of 53.6 days and coverage of 2.0x. Other factors contributing to NBH's ongoing profitability is the fact that NBH gained Medicare-dependent status in December 2007 and was awarded essential community provider grants by Massachusetts for two consecutive years. Ongoing strengths include NBH's location in a rural, isolated area, with a market share that remains near 70%. The nearest competitor is Berkshire Medical Center (rated 'BBB+' by Fitch), which is approximately 25 miles away. In addition, acute discharges, outpatient surgeries, and emergency room visits continued to increase as of fiscal year-end 2007. Credit concerns remain NBH's high debt burden, light liquidity, and historical operating losses. NBH's debt burden is high as MADS as a percentage of revenue at 5.3% and debt to capitalization of 86.4% in fiscal 2007, compare unfavorably to Fitch's below investment grade medians of 3.4% and 67.1%, respectively. While NBH's liquidity position is improving it still remains light with a cushion ratio of 3.6x and cash to debt measuring 28% in 2007. The Stable Outlook reflects Fitch's expectation that NBH will remain profitable and continue to build its balance sheet. NBH is located in North Adams, Massachusetts with North Adams Regional Hospital (70 staffed bed hospital), Sweetwood Continuing Care Retirement Community (70 independent living units), and Sweet Brook Care Centers (184 bed skilled nursing facility) as the main revenue generating components. Operating revenue of the health system was approximately $79 million in fiscal 2007. NBH covenants to provide quarterly disclosure to bondholders, which includes a consolidated and consolidating balance sheet, income statement, utilization statistics, and management discussion and analysis. Financial disclosure is disseminated through the nationally recognized municipal securities information repositories. OAKRIDGE HOMES: Wants Exclusivity Period Extended to Jan. 9, 2009 ----------------------------------------------------------------- Oakridge Homes LLC asks the U.S. Bankruptcy Court for the Central District of California to further extend its exclusive periods to: a) file a Plan of Reorganization to Jan. 9, 2009, and b) solicit acceptances of that plan to March 10, 2009. The Debtor's exclusive periods will expire Oct. 11 and Dec. 10. The Debtor tells the Court that it has not had sufficient time to make a final determination as to the ultimate direction and ideal exit strategy for its bankruptcy case. The Debtor believes that an extension of the exclusive periods will provide the Debtor with the necessary time to allow the Debtor to fully evaluate all possible exit strategies. The Debtor further relates that if it proceeded to file a Plan at this time, it is likely that the Plan would have to be modified given the current circumstances in this case because: (i) the claims bar date has not been set and the full scope of the creditor body would not be known until after the expiration of the plan exclusivity period; and (ii) the Debtor is still attempting to formulate the optimal exit strategy for this case through sales or financing. A hearing on the matter is scheduled for Oct. 7, 2008, at 10:00 a.m., in Courtroom 301 at 21041 Burbank Boulevard in Woodland Hills, California. Cathay Bank's Objection Secured creditor Cathay Bank opposes the Debtor's request to extend exclusivity periods insisting that the Debtor has demonstrated its inability to effectively manage and develop the property, all to the detriment of the estate and the creditors. Instead of honesty and due diligence, the Debtor's motion is based on fraud and gross mismanagement. Furthermore, Cathay Bank recounts that the Debtor provided no facts or details as to its alleged marketing afforts and alleged efforts to obtain financing or refinancing, or as to the current status of those efforts. About Oakridge Homes Based in Valencia, California, Oakridge Homes, LLC is a homebuilder. The company filed for Chapter 11 on June 13, 2008 (C.D. Calif. Case No. 08-13977). Ron Bender, Esq., at Levene, Neale, Bender, Rankin & Brill LLP, represents the Debtor as counsel. The Debtor's Schedules disclosed assets of $20,038,129 and liabilities of $28,552,123. OAKRIDGE HOMES: Files Schedules of Assets and Liabilities --------------------------------------------------------- Oakridge Homes LLC delivered to the United States Bankruptcy Court for the Central District of California its schedules of assets and liabilities disclosing: Name of Schedule Assets Liabilities ---------------- ----------- ----------- A. Real Property $17,000,000 B. Personal Property 3,038,129 C. Property Claimed as Exempt D. Creditors Holding $9,570,000 Secured Claims E. Creditors Holding $0 Unsecured Priority Claims F. Creditors Holding $18,982,123 Unsecured Nonpriority Claims ----------- ------------ TOTAL $20,038,129 $28,552,123 Based in Valencia, California, Oakridge Homes, LLC is a homebuilder. The company filed for Chapter 11 on June 13, 2008 (C.D. Calif. Case No. 08-13977). Ron Bender, Esq., at Levene, Neale, Bender, Rankin & Brill LLP, represents the Debtor as counsel. PIERRE FOODS: Seeks to Employ Battelle as General Tax Advisors -------------------------------------------------------------- Pierre Foods, Inc., and its debtor-affiliates ask the Hon. Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware to approve the employment of Battelle & Battelle LLP as general tax consultants and advisors for the Debtors. Battelle will perform certain tax advisory services for the Debtors, including auditing services and tax compliance services. Battelle will gather, comput and analyze financial information related to the tax issues Battelle will charge the Debtors these hourly rates: Partners $225-$285 Principal $200-$220 Manager $155-$175 Senior $105-$140 Staff $90-$120 Intern $75 The Debtors assure the Court that services performed by Battelle won't duplicate or overlap with the services being performed by Earnst & Young, whom the Debtors want to retain as specialized bankruptcy tax advisors. Battelle will coordinate with Earnst & Young, who will provide specialized and strategic bankruptcy tax consulting services including analyzing the tax implications of various restructuring alternatives, research and documentation of complex tax matters, reviewing tax language contained in various filings, and assessing the validity of tax claims. The Debtors tell the Court that the employment of Battelle will reduce professional fees associated with tax professionals. Because Battelle is a local accounting firm, it can provide general tax consulting and advisory services to the Debtors at a lower cost compared to a larger, national public accounting firm like Earnst & Young, which has higher rates. Jay J. Moeller, a partner at Battelle, assures the Court that Battelle is a "disinterested person" and does not hold or represent an interest adverse to the Debtors' estates. About Pierre Foods Based in Cincinnati, Ohio, Pierre Foods, Inc. -- http://www.pierrefoods.com-- manufactures and sells ready-to-cook and pre-cook products. The company and and 13 of its affiliates filed for Chapter 11 protection on July 15, 2008 (Bankr. D. Del. Lead Case No. 08-11469). Jonathan S. Henes, Esq., a partner at Kirkland & Ellis, and Paul Noble Heath, Esq., at Richards, Layton & Finger P.A., represent the Debtors in their restructuring efforts. The Debtors selected Kurtzman Carson Consultants LLC as their claims agent. The United States Trustee for Region 3 appointed creditors to serve on an Official Committee of Unsecured Creditors. The Committee selected Akin Gump Strauss Hauer & Feld LLP as its co-counsel. PIERRE FOODS: Wants Ernst & Young as Bankruptcy Tax Advisors ------------------------------------------------------------ Pierre Foods, Inc., and its affiliates ask the Hon. Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware to approve the employment of Ernst & Young LLP as the specialized bankruptcy tax advisors for the Debtors. Alan Greenwell, a partner at Ernst & Young, tells the Court that the firm will provide specialized bankruptcy tax advisory services to the Debtors. Ernst & Young will charge the Debtors these hourly rates: National Executive/Director/Principal/Partner $850 Executive Director/Principal/Partner $750 Manager/Senior Manager $480-$600 Staff/Senior $150-290 Ernst & Young's employment is intended to provide more specialized bankruptcy tax advisory services with respect to the tax consequences arising during and upon emergence from the Chapter 11 cases. The Debtors assure the Court that services performed by Ernst & Young won't duplicate or overlap with the services being performed by Battelle & Battelle LLP, whom the Debtors want to retain as general tax consultant. Ernst & Young will be largely responsible for providing specialized bankruptcy tax consulting services including: -- analysis of the tax matters, -- review of tax language contained in various filings, and -- assessment of the validity of tax claims. Battelle, in addition to rendering general tax services, will be responsible for gathering, computing, and analyzing financial information related to the tax issues arising in the Chapter 11 cases. The Debtors tell the Court that the employment of Battelle will reduce professional fees associated with tax professionals. Because Battelle is a local accounting firm, it can provide general tax consulting and advisory services to the Debtors at a lower cost compared to a larger, national public accounting firm like Ernst & Young, which has higher rates. Hiring Ernst & Young for the purpose of rendering specialized bankruptcy tax advice allows the Debtors to obtain comprehensive tax advice related to its various restructuring aleternatives from a well-qualified firm in a cost-effective manner. Ernst & Young is aware that the Debtors may retain additional professionals and agrees to work cooperatively with Battelle and any other professionals to integrate any respective work conducted by the professionals on behalf of the Debtors. The Debtors will also ensure that the services performed by Ernst & Young won't duplicate or overlap with the services being performed by Battelle. Mr. Greenwell assures the Court that Ernst & Young is a "disinterested person" and does not hold or represent an interest adverse to the Debtors' estates. Objections to the employment of Ernst & Young as the Debtors' specialized bankruptcy tax advisors must be filed in the Court by on Oct. 1, 2008, at 4:00 p.m. A hearing on the objections will be held on Oct. 8, 2008, at 10:00 a.m. About Pierre Foods Based in Cincinnati, Ohio, Pierre Foods, Inc. -- http://www.pierrefoods.com-- manufactures and sells ready-to-cook and pre-cook products. The company and and 13 of its affiliates filed for Chapter 11 protection on July 15, 2008 (Bankr. D. Del. Lead Case No. 08-11469). Jonathan S. Henes, Esq., a partner at Kirkland & Ellis, and Paul Noble Heath, Esq., at Richards, Layton & Finger P.A., represent the Debtors in their restructuring efforts. The Debtors selected Kurtzman Carson Consultants LLC as their claims agent. The United States Trustee for Region 3 appointed creditors to serve on an Official Committee of Unsecured Creditors. The Committee selected Akin Gump Strauss Hauer & Feld LLP as its co-counsel. PILGRIM'S PRIDE: Cut By Moody's on 4Q Loss, Covenant Waiver Talks ----------------------------------------------------------------- Moody's Investors Service lowered the ratings of Pilgrim's Pride Corporation, including the company's corporate family rating and probability of default rating to B2 from B1. LGD assessments are also subject to adjustment. This action follows Pilgrim's Pride's announcement that it expects to report a significant loss in the fiscal fourth quarter ending September 27, 2008, and that it is in discussion with its revolving credit banks on a temporary waiver of the fixed charge coverage covenant for that quarter. The review for possible downgrade of the company's ratings continues pending receipt of permanent amendments to its revolving credit agreements and improved liquidity. Moody's previous rating action was to place the company's ratings under review for possible downgrade on September 3, 2008. Ratings lowered and continuing under review for possible downgrade: -- Corporate family rating to B2 from B1 -- Probability of default rating to B2 from B1 -- $400 million 7.625% senior notes due 2015 to Caa1 from B3 -- $250 million senior subordinated notes due in 2017 and $5.1 million (original $100 million) senior subordinated notes due 2013 to Caa1 from B3 Pilgrim's Pride believes that it has reached an understanding with the agents for its revolving credit agreements to temporarily waive the fixed charge coverage covenant through October 28, 2008 and to provide continued liquidity under these facilities during the same period. This temporary waiver is subject to the negotiation and execution of a written agreement. Moody's is concerned that the current credit environment could make the timely resolution of a permanent waiver or amendment challenging. Pilgrim's Pride anticipates that its fiscal 2008 feed grain costs will rise by more than $900 million over fiscal 2007's. Chicken prices have not kept pace with this input cost inflation; Pilgrim's Pride has noted that the market price for breast meat on August 11th was approximately $1.33 per pound, well below the average price of over $1.80 four years earlier. Moody's review will focus on the company's liquidity and on its efforts to restore the profitability of its operations. Headquartered in Pittsburg, Texas, Pilgrim's Pride Corporation is the world's largest chicken company. Sales for the twelve months ended June 28, 2008 were approximately $8.5 billion. PILGRIM'S PRIDE: Likely Covenant Breach Cues S&P to Junk Rating --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Pilgrim's Pride Corp., including its corporate credit rating to 'CCC+' from 'BB-'. In addition, S&P revised the CreditWatch implications to developing from negative. The downgrade follows the company's announcement that it will not likely be in compliance with the fixed-charge ratio covenant as of its fiscal year-end, Sept. 27, 2008, due to the expected significant loss in the fourth fiscal quarter. The loss is due to the negative effect of hedged grain positions during the quarter, higher feed costs, and weak pricing and demand for breast meat. The company does expect to be in compliance with its other covenants. S&P expects that Pilgrim's Pride will receive a temporary waiver from its bank group through Oct. 28, 2008. However, this waiver is subject to the negotiation of a definitive agreement with the company's lenders. Pilgrim's Pride's failure to negotiate a permanent waiver or amendment could result in the lenders declaring an event of default and precluding the company from drawing under the facilities. The company does have interest payments on its senior unsecured debt and subordinated notes on Nov. 1, 2008 of approximately $26 million. As of Sept. 24, 2008, Pilgrim's Pride had more than $250 million in cash and availability under its credit facilities. Developing implications mean that the rating could be raised or lowered depending on the outcome of negotiations with the bank. If the company were to successfully renegotiate covenants, S&P would review the ratings for a possible affirmation or an upgrade. Alternatively, the ratings could be lowered if the company does not successfully execute an amendment to its bank facilities. PLAINS EXPLORATION: Permian Interest Sale Won't Affect S&P's Rtngs ------------------------------------------------------------------ Standard & Poor's Ratings Services said that the ratings on Plains Exploration & Production Co. (PXP; BB/Stable/--) are not affected by the company's announcement that it will sell its remaining interests in oil and gas properties in the Permian and Piceance Basins to Occidental Petroleum Corp. (A/Stable/A-1) for $1.25 billion. S&P notes that PXP had previously sold assets in these areas to Occidental in a transaction that closed earlier in the year. The properties to be sold include approximately 92 million barrels of oil equivalent of proved reserves and 13,000 barrels of net production. As a result of the sale, PXP's portfolio will become once again more weighted toward crude oil (70% of production versus 56% currently). >From a financial perspective, S&P views the transaction positively. After deploying asset sale proceeds to debt reduction, S&P expects PXP will have improved liquidity with more than $1 billion in borrowing capacity under its senior secured revolving credit facility. Borrowings under PXP's credit facility have increased over recent months due to outlays associated with its joint venture agreement with Chesapeake Energy Corp. (BB/Watch Pos/--) in the Haynesville Shale play. Pro forma debt leverage (on a proved per barrel basis) is expected to recover to $4 to $5 per boe from $5 to $6 currently. POWER EFFICIENCY: Files Amendment to Share Registration Statement ----------------------------------------------------------------- Power Efficiency Corporation has filed a Registration Statement on Form S-1 to the Registration Statements on Form SB-2. The prospectus contained in the Registration Statement will, upon effectiveness, supersede the prospectuses dated May 18, 2007. The company amended the registration statement to delay its effective date. The company will file a further amendment to state: -- the date the Registration Statement becomes effective; or -- until the Registration statement becomes effective on a date as the Securities and Exchange Commission may determine. A full-text copy of the Power Efficiency's Registration Statement is available free of charge at: http://researcharchives.com/t/s?328a Going Concern Doubt As reported in the Troubled Company Reporter on April 4, 2008, Livingston, N.J.-based Sobel & Co., LLC, expressed substantial doubt about Power Efficiency Corporation's ability to continue as a going concern after the firm audited the company's financial statements for the year ended Dec. 31, 2007. The auditing firm pointed to the company's recurring losses from operations and deficiency of cash from operations. About Power Efficiency Corp. Based in Las Vegas, Power Efficiency Corporation (OTC BB: PEFF) -- http://www.powerefficiency.com/-- is a green energy company focused on efficiency technologies for electric motors. The company has developed a patented and patent-pending technology platform, called E-Save Technology(TM), which has been demonstrated in independent testing to improve the efficiency of electric motors by 15% to 35% in appropriate application. QUICKSILVER RESOURCES: S&P Lowers Rating on $700MM Term Loan to B ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its issue-level rating on Quicksilver Resources Inc.'s $700 million second-lien term loan and $475 million senior notes to 'B' from 'B+', based on its revision of the recovery rating on the second-lien debt to '6', which indicates S&P's expectation of negligible (0% to 10%) recovery in the event of a payment default, from '5'. The issue- level rating on the company's $350 million subordinated notes is unchanged at 'B'. The unsubordinated notes have a recovery rating of '6', which indicates S&P's expectation for negligible (0% to 10%) recovery in the event of a default. "These changes follow Quicksilver's announcement that it increased its first-lien secured asset-based revolving loan facility to $1.45 billion from $1.2 billion (borrowing base increase to $1.2 billion from $1 billion)," said Standard & Poor's credit analyst Amy Eddy. "We previously cited a potential increase in the amount of first-lien debt as a trigger for lower issue-level and recovery ratings on the second lien debt. S&P does not rate the revolving credit facility or the company's $150 million convertible debentures." The rating on Fort Worth, Texas-based independent oil and gas exploration and production company Quicksilver reflects the company's weak business profile and aggressive financial risk profile. The business risk assessment is based on the company's participation in a competitive, capital-intensive, and highly cyclical industry; its small- to medium-size reserve base (2.1 trillion cubic feet of natural gas equivalent); low but increasing production; and its competitive cost structure. The aggressive financial profile incorporates an ambitious drilling program that will exceed cash flow under current commodity prices. RENAISSANCE CUSTOM: Case Summary & 20 Largest Unsecured Creditors ----------------------------------------------------------------- Debtor: Renaissance Custom Homes, LLC 16771 Boones Ferry Rd. Lake Oswego, OR 97035 Bankruptcy Case No.: 08-35023 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- Renaissance Development Corporation 08-35025 The Lakes at Fishers Landing LLC 08-35026 Type of Business: The Debtors is in the residential real estate and home-building business. See: http://www.renaissance-homes.com/ Chapter 11 Petition Date: September 25, 2008 Court: District of Oregon Judge: Trish M. Brown Debtor's Counsel: Albert N. Kennedy, Esq. al.kennedy@tonkon.com Ava L. Schoen, Esq. avas@tonkon.com Timothy J. Conway, Esq. tim.conway@tonkon.com Tonkon Torp LLP 888 SW 5th Ave #1600 Portland, OR 97204 (503) 802-2013 Estimated Assets: $50 million to $100 million Estimated Debts: $50 million to $100 million Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Howells Custom Cabinets Trade Debt $541,372 dba David Howells 7609 SE Overland Portland, OR 97222 Tel: (503) 849-3734 Curt Heintz Excavating Trade Debt $415,825 POB 1105 Sherwood, OR 97140 Tel: (503) 519-6613 TruGreen Landcare LLC Trade Debt $378,070 7920 SW Hunziker St. Tigard, OR 97223 Tel: (503) 793-1794 Precision Countertops Trade Debt $275,284 POB 387 Wilsonville, OR 97070 Tel: (503) 692-6660 Rex Hill Masonry Inc Trade Debt $218,708 Parr Lumber Co. Inc. Trade Debt $185,362 General Electric Co. Trade Debt $160,029 Teufels Nursery Inc. Trade Debt $153,952 Globe Lighting Trade Debt $124,902 Ulven Design Group Inc. Trade Debt $121,775 Lighthouse Electric LLC Trade Debt $107,766 West Lake Coatings Trade Debt $101,787 White Wykoff and Co. Trade Debt $97,600 Tualatin Valley Paint Trade Debt $96,938 Canby Plumbing Inc. Trade Debt $84,291 Milgard Mfg. Trade Debt $82,211 J and S Concrete Inc. Trade Debt $75,895 Azimuth Comm Inc. Trade Debt $75,674 Lance Dunning Const. Inc. Trade Debt $73,468 Trus-Way Inc. Trade Debt $66,520 REVLON CONSUMER: Moody's Lifts Corp. Family Rating to B3 from Caa1 ------------------------------------------------------------------ Moody's Investors Service upgraded Revlon Consumer Products Corporation's corporate family rating to B3 from Caa1 and speculative grade liquidity rating to SGL-3 from SGL-4 while retaining a positive outlook. At the same time, Moody's upgraded the company's rating for its $160 million senior secured asset- based revolving credit facility to Ba3 from B1 while affirming the Caa2 rating for its $387 million 9.5% senior notes. The upgrade of Revlon's corporate family rating to B3 reflects the company's sustained improvement in operating profit and cash flow which have contributed to meaningful gains in Revlon's profitability and credit metrics. The upgrade of the company's SGL rating to SGL-3 from SGL-4 reflects Revlon's significantly improved liquidity position following it's recent sale of a non- core asset with net proceeds used in part to reduce the current senior subordinated term loan from its affiliate MacAndrews and Forbes. Moody's affirmation of the senior notes reflects the elimination of more junior subordinated debt in the capital structure following Revlon's partial repayment of the $170 million subordinated term loan. The positive outlook reflects Moody's expectation that the company will proceed with its planned $107 million equity rights offering as early as the fourth quarter of 2008 and use the gross proceeds to repay the remaining balance under its senior subordinated term loan which will further improve the company's liquidity position and credit metrics. Should the company be successful in completing the equity rights offering while maintaining its current operating performance, Revlon's ratings could be further upgraded. "Over the last twelve months, Revlon's has continued to improve its profitability and reduce financial leverage while showing early evidence of sustainable growth in its core Revlon and Almay franchises through successful new product initiatives," says Moody's Vice President Janice Hofferber. These ratings of Revlon were upgraded: -- Corporate family rating to B3 from Caa1; -- Probability of default rating to B3 from Caa1; -- $160 million senior secured asset based revolving credit facility due 2012 to Ba3 (LGD 2, 24%) from B1 (LGD 2, 12%); -- $840 million senior secured term loan facility to B1 (LGD 2, 28%) from B3 (LGD 3, 37%); and -- Speculative grade liquidity rating to SGL-3 from SGL-4. These ratings of Revlon were affirmed/LGD assessments revised: -- $387 million 9.5% senior notes due 2011 to Caa2 (LGD 5, 79%) from Caa2 (LGD 4, 63%) Outlook is positive. Revlon's B3 corporate family rating reflects the company's marked improvement in profitability and cash flow metrics, stabilized market share position for its well known core global brand franchises offset by its relatively weaker position in the highly competitive cosmetics and personal care category. In addition, the ratings are constrained by the company's still high leverage and near-term maturity of the remaining $107 senior subordinated term loan due to its indirect parent, M&F, in August 2009. The last rating action regarding Revlon was in December 2007 when Moody's revised the company's ratings outlook to positive from stable and affirmed all of its ratings including its Caa1 corporate family rating. Headquartered in New York, Revlon Consumer Products Corporation (NYSE: REV) is a worldwide cosmetics, skin care, fragrance, and personal care products company. The company is a wholly-owned subsidiary of Revlon, Inc., which is majority-owned by MacAndrews & Forbes, which is in turn wholly-owned by Ronald O. Perelman. Revlon's net sales for the twelve-month period ended June 2008 were approximately $1.4 billion. MacAndrews & Forbes beneficially owns approximately 61% of Revlon's outstanding Class A common stock, 100% of Revlon's Class B common stock and 60% of the Revlon's combined outstanding shares of Class A and Class B common stock, which together represent approximately 74% of the combined voting power of such shares. REVLON INC: Completes 1-for-10 Reverse Split for Class A & B Stock ------------------------------------------------------------------ Revlon, Inc. disclosed in a Securities and Exchange Commission filing that the 1-for-10 reverse stock split of its Class A and Class B common stock became effective as of 11:59 p.m., New York City time, on Sept. 15, 2008. Revlon effected the reverse stock split by filing a charter amendment with the Delaware Secretary of State. The reverse stock split was previously approved by the Company's Board of Directors and stockholders pursuant to Sections 228 and 242 of the Delaware General Corporation Law. Revlon's Class A common stock began trading on the NYSE on a split-adjusted basis when the market opened September 16, 2008, under a new CUSIP number -- 761525 609. As a result of the reverse stock split, each 10 shares of Revlon's Class A and Class B common stock issued and outstanding immediately prior to the Effective Time were automatically combined into one share of Class A common stock and Class B common stock, respectively, subject to the elimination of fractional shares. The same 1-for-10 reverse stock split ratio was used to effect the reverse stock split of both Revlon Class A and Class B common stock, and accordingly, all stockholders were affected proportionately. The reverse stock split reduced the Company's issued and outstanding shares of common stock from approximately 481,887,883 shares of Class A common stock and 31,250,000 shares of Class B common stock to approximately 48,188,788 and 3,125,000 shares, respectively. The number of shares of Class A common stock subject to Revlon's outstanding employee and director stock options and unvested employee and director restricted stock, as well as the relevant exercise price per share, were proportionately adjusted to reflect the reverse stock split. Accordingly, the approximately 20,786,384 outstanding stock options and approximately 8,219,892 unvested restricted shares were reduced to approximately 2,078,638 outstanding stock options and approximately 821,989 unvested restricted shares, respectively. The number of shares authorized for issuance under Revlon's stock plan was also reduced from 65,500,000 shares of Class A common stock to 6,550,000 shares using the same 1-for-10 split ratio. Revlon has retained its transfer agent, American Stock Transfer & Trust Company, to act as exchange agent for the reverse stock split. AST will manage the exchange of old, pre-reverse stock split shares for new post-split shares. Stockholders of record as of the Effective Time will receive a letter of transmittal providing instructions for the exchange of their shares as soon as practicable following the Effective Time. Stockholders who hold their shares in "street name" will be contacted by their banks or brokers with any instructions. About Revlon Inc. Headquartered in New York City, Revlon Inc. (NYSE: REV) -- http://www.revloninc.com/-- is a worldwide cosmetics, hair color, beauty tools, fragrances, skincare, anti- perspirants/deodorants and personal care products company. The company's brands, which are sold worldwide, include Revlon(R), Almay(R), Mitchum(R), Charlie(R), Gatineau(R) and Ultima II(R). At June 30, 2008, the company's consolidated balance sheet showed $883.7 million in total assets and $1.94 billion in total liabilities, resulting in roughly $1.06 billion in stockholders' deficit. RETAIL PRO: John C. Redding Quits as Secretary and General Counsel ------------------------------------------------------------------ Retail Pro, Inc. disclosed in a Securities and Exchange Commission filing that effective Sept. 12, 2008, John C. Redding resigned as the company's Secretary and General Counsel. Headquartered in La Jolla, California, Retail Pro, Inc. (OTC: IPIN.PK) -- http://www.retailpro.com/--provides Point of Sale, Store Operations, Merchandising, Planning, Business Intelligence, and Payment Processing software applications for the specialty retail industry. Retail Pro(R) is delivered through a world-wide network of channel partners. The company maintains offices in the United States, United Kingdom, Australia, Mexico, Italy, Poland and China. Going Concern Doubt Goldman & Parks LLP, in Encino, California, expressed substantial doubt about Island Pacific Inc. nka. Retail Pro Inc.'s ability to continue as a going concern after auditing the company's consolidated financial statements for the years ended March 31, 2007, and 2006. The auditing firm reported that the company has suffered recurring losses from operations and has an accumulated deficit of $81,979,000 as of March 31, 2007. RGIS HOLDINGS: Weak Performance Cues Moody's to Cut Rating to 'B3' ------------------------------------------------------------------ Moody's downgraded the Corporate Family Rating and Probability of Default Rating of RGIS Holdings, LLC to B3 from B2 and lowered the rating on the secured bank facility to B1 from Ba3. The downgrade reflected weaker than expected financial performance, aggressive pricing actions by competitors and a difficult retail climate in the US. The rating outlook is stable. The B3 Corporate Family Rating also reflects credit metrics that are adequate for the rating category, moderate customer concentration and concern that tightening covenant requirements during the remainder of 2008 and 2009 could lead to reduced effective availability under the revolving credit facility. The ratings are supported by the company's leading market position and scale in the outsourced inventory verification market, long standing relationships with large retail accounts and the potential for further efficiency initiatives to improve profitability. These ratings were downgraded (no changes to assessments): -- $75 million senior secured revolver due 2013, to B1 (LGD 3, 31%) from Ba3 (LGD 3, 31%) -- $520 million senior secured term loan due 2014, to B1 (LGD 3, 31%) from Ba3 (LGD 3, 31%) -- Corporate Family Rating, to B3 from B2 -- Probability of Default Rating, to B3 from B2 Moody's last rating action on RGIS was the assignment of a Ba3 rating to a $25 million delayed draw term loan on April 10, 2007. Headquartered in Auburn Hills, Michigan, RGIS Holdings, LLC is the leading supplier of inventory services for retailers, warehouses, and distributors in North America. Revenues for the twelve month period ended June 30, 2008 were $695 million. RITE AID: Moody's Junks Probability of Default Rating ----------------------------------------------------- Moody's Investors Service downgraded Rite Aid Corporation's long term ratings, including its probability of default rating, to Caa1 from B3 and affirmed its speculative grade liquidity rating at SGL-4. In addition, Rite Aid's long term ratings were placed on review for further possible downgrade. The downgrade to Caa1 reflects Rite Aid's very weak operating performance for the second quarter ended August 30, 2008 (EBIT fell to negative $62 million versus positive $29 million in the prior period) which has resulted in a weakening in credit metrics. The review for further possible downgrade reflects Rite Aid's continued difficulties at its Eckert subsidiary, management's downward earnings revision, as well as the high likelihood that EBIT will be unable to cover interest for the full year ended March 2009 and that many of Rite Aid's debt protection measures will deteriorate further. Moody's review for downgrade will focus on the outlook for the company's near term operating performance, the expected levels of cash flow, as well as its availability under its credit facilities and overall liquidity. Moody's review will also focus on any new strategies implemented by the new members of senior management as well as the performance of the acquired Eckerd stores. Rite Aid's SGL-4 speculative grade liquidity rating indicates weak liquidity. The company reported negative free cash flow of $194 million for the six months ended August 30, 2008. Given the steep hurdles Rite Aid faces to improve its cash flow through working capital and operating performance improvements, Moody's believes that the company will continue to report a free cash flow deficit in fiscal 2009. As a result, Moody's believes that the company will remain a net borrower under its revolving credit facilities over the next twelve months. At August 30, 2008, Rite Aid had about $549 million in availability under its revolver. While the company appears to have enough availability to fund its free cash deficit over the next twelve months, unfavorable operating results or working capital changes during the period could rapidly absorb this availability. Despite the company's operating and liquidity challenges, positive consideration is given to the fact that there are no near-term scheduled debt maturities, and Rite Aid's revolving credit facility only requires the testing of one financial covenant, fixed charge coverage, when total availability falls below $100 million. These ratings are downgraded and placed on review for further possible downgrade: -- Corporate family rating to Caa1 from B3; -- Probability of default rating to Caa1 from B3; -- First-lien bank facilities to B2 from Ba3; -- Second-lien secured notes to Caa1 from B3; -- Guaranteed senior notes to Caa2 from Caa1; -- Senior notes and debentures to Caa3 from Caa2. This rating is affirmed: -- Speculative grade liquidity rating at SGL-4. The current LGD assessments remain subject to change. The last rating action on this company was on June 12, 2008 when Moody's rated the company's $350 million senior secured term loan tranche 2 and its senior secured notes due 2016. Rite Aid Corporation, headquartered in Camp Hill, Pennsylvania, is the third largest domestic drug store chain with more than 4,900 stores in 31 states and the District of Columbia. Revenues in FY08 amounted to $24.3 billion. ROUNDY'S SUPERMARKETS: S&P Trims Corp. Credit Rating to B from B+ ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Milwaukee-based Roundy's Supermarkets Inc., including the corporate credit rating, to 'B' from 'B+'. At the same time, S&P placed the ratings on CreditWatch with negative implications. "The downgrade and CreditWatch placement reflect our concern that the weak results in the second quarter increase the likelihood that Roundy's will breach financial covenants of its senior secured credit facility in the coming quarters," said Standard & Poor's credit analyst Charles Pinson-Rose. Furthermore, the decline in EBITDA was a result of sales declines and from operating fewer stores and negative comparable-store sales, in addition to margin contraction from increased promotional activity. "In the future, we expect these trends will likely continue based on weak consumer spending trends, coupled with competitive and cost pressures in the supermarket industry," added Mr. Pinson-Rose. S&P will resolve the CreditWatch after reviewing the company's third-quarter results and determining Roundy's ability to maintain covenant compliance. SCO GROUP: July 31 Balance Sheet Upside-Down by $3.2 Million ------------------------------------------------------------ The SCO Group Inc.'s balance sheet at July 31, 2008, showed total assets of $9,522,000 and total liabilities of $12,740,000, resulting in a shareholders' deficit of $3,218,000. The company reported that net loss for three months ended July 31, 2008, was $4,071,000 compared to net loss of $2,511,000 for the same period in the previous year. Net loss for nine month ended July 31, 2008, was $5,493,000 compared to net loss of $4,839,000 for the same period in the previous year. Liquidity and Capital Resources The company's cash and cash equivalents balance decreased from $5,554,000 as of Oct. 31, 2007, to $2,117,000 as of July 31, 2008. As of July 31, 2008, the company also had $2,680,000 of restricted cash, of which $1,639,000 is set aside to cover expert and other costs related to the SCO Litigation and $1,041,000 payable to Novell for royalties earned by Novell post bankruptcy petition. The company intend to use the cash as of July 31, 2008 to run its UNIX business and pursue the SCO Litigation, and believe that it has sufficient liquidity resources to fund its operations through at least April 30, 2009. However, as a result of both the Court's Aug. 10, 2007, order and its entry into Chapter 11, among other matters, there is substantial doubt about its ability to continue as a going concern. The company is operating pursuant to Chapter 11 of the Bankruptcy Code and continuation of its business as a going concern is contingent upon, among other things, its ability to (i) construct and obtain confirmation of a plan of reorganization under the Bankruptcy Code; (ii) reduce payroll and benefits costs and liabilities under the bankruptcy process; (iii) achieve profitability; (iv) achieve sufficient cash flows from operating activities; and (v) obtain financing sources to meet its future obligations. These matters well as the aforementioned ruling in favor of Novell create substantial doubt about its ability to continue as a going concern. The company's net cash used in operating activities during the nine months ended July 31, 2008, was $3,602,000 and was attributable to a net loss of $7,623,000, and a net decrease in operating assets and liabilities of $107,000, partially offset by increase in liabilities subject to compromise of $3,343,000 for Novell under the court order as full discussed in Recent Developments and by non-cash items of $785,000. The company's net cash used in operating activities during the nine months ended July 31, 2007, was $690,000 and was attributable to a net loss of $4,565,000, partially offset by a net increase in operating assets and liabilities of $2,309,000 and non-cash items of $1,566,000. The company's investing activities have consisted of equipment purchases and the purchase and sale of available-for-sale marketable securities. During the nine months ended July 31, 2008, cash provided by investing activities was $104,000, which was from distributions from our 30% ownership in a Chinese company of $114,000, partially offset by the purchases of equipment of $10,000. During the nine months ended July 31, 2007, cash provided by investing activities was $2,168,000, which was a result of proceeds from the sale of available-for-sale marketable securities of $2,249,000, offset by purchases of equipment of $81,000. The company's financing activities provided $22,000 of cash during the nine months ended July 31, 2008, which were generated from proceeds received from the sale of common stock through its employee stock purchase plan. The company's financing activities provided $493,000 of cash during the nine months ended July 31, 2007. The sources of cash were from the exercise of options to acquire common stock of $57,000 and proceeds of $436,000 received from the sale of common stock through its employee stock purchase plan. The company's net accounts receivable balance decreased from $3,365,000 as of Oct. 31, 2007, to $2,592,000 as of July 31, 2008, as a result of lower sales generated during the three months ended July 31, 2008, as compared to the three months ended Oct. 31, 2007. The majority of its accounts receivable are current and its allowance for doubtful accounts was $124,000 as of July 31, 2008, which represented approximately 5% of its gross accounts receivable balance. The company's write-offs of uncollectible accounts during the three and nine months ended July 31, 2008, and 2007 were not significant. The company continues to pay for expert, consulting and other expenses relating to the SCO Litigation. These expenses have been material in the past and even though we expect these expenses to be lower for the year ending Oct. 31, 2008, as compared to the year ended Oct. 31, 2007, the company expects to continue to be material to its financial statements. In addition, the company may pay one or more contingency fees upon certain amounts the company or its stockholders may receive as a result of a settlement, judgment, or a sale of the company. As of July 31, 2008, the company did not have any long-term debt obligations, purchase obligations or material capital lease obligations. The company stated that the restructuring imposed by the Bankruptcy Court may also adversely affect its ability to raise debt or equity capital. Its delisting from NASDAQ will also impair its ability to raise capital. About The SCO Group Headquartered in Lindon, Utah, The SCO Group Inc. (Nasdaq:SCOX) fka Caldera International Inc. -- http://www.sco.com/-- provides software technology for distributed, embedded and network-based systems, offering SCO OpenServer for small to medium business and UnixWare for enterprise applications and digital network services. The company has office locations in Australia, Austria, Argentina, Brazil, China, Japan, Poland, Russia, the United Kingdom, among others. The company and its affiliate, SCO Operations Inc., filed for Chapter 11 protection on Sept. 14, 2007, (Bankr. D. Del. Lead Case No. 07-11337). Paul Steven Singerman, Esq., and Arthur Spector, Esq., at Berger Singerman P.A., represent the Debtors in their restructuring efforts. James O'Neill, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones LLP, are the Debtors' Delaware and conflicts counsels. Epiq Bankruptcy Solutions LLC, acts as the Debtors' claims and noticing agent. The United States Trustee failed to form an Official Committee of Unsecured Creditors in these cases due to insufficient response from creditors. The Debtors' schedules showed total assets of $9,549,519 and total liabilities of $3,018,489. SOUTH STREET: Moody's Trims Class B-2 Notes Rating to Ca from C --------------------------------------------------------------- Moody's Investors Service has withdrawn the rating on the following notes issued by South Street CBO 2000-1 Ltd.: Class Description: Class A-2L Floating Rate Notes due 2012 -- Prior Rating: Aaa -- Prior Rating Action Date: 5/4/2000 -- Current Rating: WR According to Moody's, this rating action is a result of the Class A-2L Notes being redeemed in full. In addition, Moody's has downgraded these notes: Class Description: Class B-2 Notes due 2012 -- Prior Rating: Ca -- Prior Rating Action Date: 8/20/2002 -- Current Rating: C According to Moody's, this rating action is a result of par loss due to defaulted securities in the portfolio. SOUTHEAST WAFFLES: Agrees to Have CRO Rather than Trustee --------------------------------------------------------- Bill Rochelle of Bloomberg News reports that Southeast Waffles, LLC, agreed to the appointment of a chief restructuring officer and to end its exclusive right to propose a plan in late December 2008 as a compromise in the face of a motion by secured creditor FirstBank for the appointment of a Chapter 11 trustee. The agreement to avoid a trustee provides that the Debtor's principal, Jim Shaub, will have no operating authority, although he will receive $80,000 in compensation in the next four months, according to the report. If the Debtor files a Chapter 11 plan, the exclusive right to propose a reorganization will end automatically so any other creditor could file a plan, Mr. Rochelle says. About SouthEast Waffles Headquartered in Nashville, Tennessee, SouthEast Waffles, LLC dba Waffle House -- http://www.southeastwaffles.com-- operates restaurants. The company filed for Chapter 11 protection on Aug. 25, 2008 (Bankr. M.D. Tenn. Case No. 08-07552). Barbara Dale Holmes, Esq., David Phillip Canas, Esq., Glenn Benton Rose, Esq., and Tracy M. Lujan, Esq., at Harwell Howard Hyne Gabbert & Manner represent the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed assets and debt of between $10 million and $50 million each. SPORTSQUEST INC: Kramer Weisman Expresses Going Concern Doubt ------------------------------------------------------------- Davis, Fla.-based Kramer Weisman and Associates LLP raised substantial doubt about the ability of SportsQuest, Inc., to continue as a going concern after it audited the company's financial statements for the year ended May 31, 2008. The auditor stated in its report that the company has operating and liquidity concerns, has incurred an accumulated deficit of $2,852,972 through the period ended May 31, 2008, and current liabilities exceeded current assets by $3,854,841 at May 31, 2008. The company has inadequate working capital to maintain or develop its operations, and is dependent upon funds from private investors and the support of certain stockholders. The company posted a net loss of $1,406,796 on total revenues of $15,750 for the year ended May 31, 2008, as compared with zero income on zero sales in the prior year. At May 31, 2008, the company's consolidated balance sheet showed $14,766,521 in total assets, $4,981,950 in total liabilities, and $9,784,572 in total stockholders' equity. The company's consolidated balance sheet at May 31, 2008, showed strained liquidity with $138,595 in total current assets available to pay $3,993,436 in total current liabilities. A full-text copy of the company's 2008 annual report is available for free at http://ResearchArchives.com/t/s?32d3 Results of Operations Revenues for period ended May 31, 2008, was $15,750. This revenue is directly the result of changes in the company's strategic direction in core operations. The company continues to aggressively pursue and devote its resources and focus its direction in building asset value. The company has further refocused in new acquisitions to increase its revenues and cash flow. General and administrative expenses for the period ended May 31, 2008, was $994,708. This increase is attributed to the company's increase in acquisitions and issuance of stock for compensations and issuance of warrants with convertible debt. The loss for period ended May 31, 2008, was $1,406,796. The loss was due to the increase in non-cash transactions for services rendered and warrants issued for convertible debt. No tax benefit was recorded on the expected operating loss for period ended May 31, 2008, as required by Statement of Financial Accounting Standards No. 109, Accounting for Income Taxes. For the quarter ended the company does not expect to realize a deferred tax asset and it is uncertain, therefore the company has provided a 100% valuation of the tax benefit and assets until it is certain to experience net profits in the future to fully realize the tax benefit and tax assets. Liquidity And Capital Resources The company's operating requirements have been funded primarily on its sale of media content, financing facilities, and sales of its common stock. During the period ended May 31, 2008, the net proceeds from the media content were $15,750. Management believes that the cash flows are inadequate to repay the capital obligations and has relied upon the sale of common stock to sustain its operations. Cash used in operating activities for the period ended May 31, 2008, was $312,489. The company has focused on core operations, which resulted in an increase in acquisitions. However, the company is still operating in a deficit. The company has depreciation expenses for the period ended May 31, 2008, of $394. Cash used in investing activities was ($179,937) for the period ended May 31, 2008. The company has advanced to affiliates of $179,937. Cash provided by financing activities was $327,910 for the period ended May 31, 2008. Financing activities primarily consisted of proceeds from bond and loan payables from third parties. The company does not have adequate cash flows to satisfy its obligations although has improved cash flow and anticipates has adequate cash flows in the upcoming fiscal period. The company received proceeds from its bond issuance of $70,448. It also received proceeds from its loan payables of $255,205. As of Oct. 31, 2007, the company's open convertible secured note balance was $662,860. About SportQuest, Inc. SportQuest, Inc., (Other OTC: SPQS.PK) -- http://www.sportquest.org/-- SportsQuest, Inc., creates, develops, owns and manages high-end sports events and their operating entities. The company manages the US Pro Golf Tour. Before March 2007, its primary business activity was the realization of commissions from the operation by Air Brook Limousine, Inc., one of its stockholders, of two airport ground transportation terminals in New Jersey. In March 2007, Air Brook Limousine notified SportsQuest of its intent to cancel certain agreements relating to the payment of such commissions, and as a result of such cancellation, the company lost its source of revenue. On Aug. 16, 2007, Lextra Management Group, Inc., acquired 51.16% of the company's issued and outstanding common stock. On Aug. 21, 2007, SportsQuest acquired all of the assets of Lextra pursuant to an asset purchase agreement dated Aug. 21, 2007. The assets of Lextra were transferred to its wholly owned subsidiary, SportsQuest Management Group, Inc. ST LOUIS CHARTER: Fitch Holds 'BB' Rating on $5.32MM Revenue Bonds ------------------------------------------------------------------ Fitch Ratings affirmed the 'BB' rating on St. Louis Charter School's $5,320,000 of Missouri Health and Educational Facilities Authority, revenue bonds, series 2002A. The Rating Outlook is revised to Stable from Negative. The bonds are secured by a gross revenue pledge, a leasehold mortgage over the school's facility, and a debt service reserve fund. The 'BB' rating is based on the school's weak liquidity; historically negative operating performance; and standard charter renewal risk. Importantly, Fitch notes that weak liquidity and weak operating performance are not atypical for charter schools rated in the non-investment grade category. The school's operating margin has been approximately negative 5% for each of the past three fiscal years. Other considerations reflected in the 'BB' rating include the school's stable enrollment levels; stable operating performance; and solid academic performance, which earned the school its third consecutive charter renewal in 2007. The Stable Rating Outlook reflects Fitch's expectation that the school will maintain enrollment levels at or near capacity; continue to produce solid student academic performance; and maintain stable, albeit weak, financial operations. Following reductions in 2002 and 2003, per pupil funding received from the state has improved and increased three of the past four years. PPF was $11,456 and $10,254 in academic years 2007 and 2006 respectively. The school continues to maintain a positive relationship with the St. Louis City School District and the University of Missouri, St. Louis, its charter granting agency. Payments made from the school district are made in a timely manner and the school does not anticipate any funding reductions in the foreseeable future. The current enrollment of 930 students has remained stable and is at the school's capacity level. It also maintains an actively managed waiting list, which currently has 165 students for kindergarten through grade 8. The average daily attendance at the school has averaged between 93% and 94%. The school terminated its management contract with Imagine Schools Inc. in May 2007 in favor of managing itself internally. As part of the separation agreement with Imagine Schools Inc., the school negotiated a $500,000 management fee reduction for fiscal 2007 and $664,000 in debt forgiveness. This also eliminates the $600,000 annual management fee. The school hired a new controller in 2006 who now serves as the Head of Finance and oversees all non- educational functions of the school. Concerns over the new management structure are partially mitigated by the proactive management steps taken by the Head of Finance, to include cost cutting measures and seeking new revenue sources. St. Louis Charter School is a public charter school serving 930 students in kindergarten through eighth grade. The school was established in 2000 and is located in St. Louis, Missouri. STONE ARTIST: Files for Chapter 11 Protection --------------------------------------------- The Business Review reports that Stone Artist, Inc., filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Northern District of New York. According to The Business Reivew, Stone Artist filed for bankruptcy after its board of directors weighed "various options and alternatives to rehabilitate the company." Court documents indicate that the company's assets and debts are no greater than $1 million each. Jerome Pollock, Jr., Stone Artist, Inc., is a masonry business in Argyle, New York. It has more than 50 workers, and has done work on multi-million-dollar homes in Saratoga Springs. The company performed work on the Colonie home featured on ABC's "Extreme Home Makeover" show in 2007. The company filed for Chapter 11 bankruptcy protection on Sept. 22, 2008 (Bankr. N.D. N.Y. Case No. 08-13130). Lisa M. Penpraze, Esq., at Segel Goldman Mazzotta & Siegel, P.C., represents the company in its restructuring effort. TORRENT ENERGY: Lender Withdraws from DIP Credit and Guaranty Deal ------------------------------------------------------------------ Torrent Energy Corporation disclosed that YA Global issued a Notice of Lender's Election to Cease Funding pursuant to the DIP Credit Agreement. On June 6, 2008, the company entered into a senior secured super- priority debtor-in-possession credit and guaranty agreement with YA Global Investments L.P., as lender, pursuant to which YA Global provided the company with funds to permit the company to continue its operations during its reorganization under Chapter 11. The notice stated that YA Global has elected to exercise its right to cease funding the company, and will provide no further advances to the company, under the DIP Credit Agreement, except for advances for compensation payable to certain employees of the company. YA Global has informed the company that its election to cease funding is irrevocable. YA Global has not claimed that the company is in default, and the company does not believe it is in default, under the DIP Credit Agreement. The stated that as a result of YA Global's election to cease funding under the DIP Credit Agreement and the company's limited cash resources, the company's ability to continue operations is severely limited. The company is considering its options in light of YA Global's election. About Torrent Energy Headquartered in Portland, Oregon, Torrent Energy Corporation -- http://www.torrentenergy.com/-- is an exploration stage company engaged in the exploration for coalbed methane in the Coos Bay region of Oregon and in the Chehalis Basin region of Washington State. The company and two of its affiliates filed for Chapter 11 protection on June 2, 2008 (Bankr. D. Ore. Case Nos. 08-32638 through 08-32640). Jeanette L. Thomas, Esq., at Perkins Coie LLP, represents the Debtors in their restructuring efforts. Going Concern Doubt Peterson Sullivan PLLC, in Seattle, Washington, expressed substantial doubt about Torrent Energy Corporation's ability to continue as a going concern after auditing the company's consolidated financial statements for the year ended March 31, 2008. The auditing firm pointed to the company's recurring losses from operations since inception, substantial accumulated deficit, and the company's filing for reorganization under Chapter 11 of the U.S. Bankruptcy Code. TURKEY LAKE: Chapter 11 Petition Incomplete; Needs to Hire Counsel ------------------------------------------------------------------ Orlando Business Journal reports that the Chapter 11 petition filed by the Turkey Lake Partners LLC in the U.S. Bankruptcy Court for the Middle District of Florida lacked several required documents. Orlando Business relates that Turkey Lake petition was missing documents, including: -- a list of 20 largest unsecured creditors, -- a corporate ownership statement, -- statement of financial affairs, and -- a case summary. Court records filed on Sept. 16 indicated that Raymond Sussman, the attorney for Turkey Lake, was not a member of the bar of the Court. This, according to the court documents, would prevent Mr. Sussman from acting as counsel for Turkey Lake's bankruptcy case. Turkey Lake must employ another or an additional qualified attorney by Oct. 7, or the case would be dismissed, court records say. Brooklyn, New York-based Turkey Lake Partners LLC owns a single assets real estate. It had planned to open the Sage Resort near Big Sand Lake by 2009. The company's managing partner is Ryze Group Holdings LLC, whose principal is Orlando-based Faiza Khanani. The company filed for Chapter 11 bankruptcy protection on Sept. 12, 2008 (Bankr. M.D.Fla. Case No. 08-08174). Raymond S. Sussman, Esq., who has an office at Hartsdale, New York, represents the company in its restructuring effort. The company listed assets of between $1 million and $10 million and debts of between $1 million and $10 million when it filed for bankruptcy. US MEDICAL: Case Summary & 12 Largest Unsecured Creditors --------------------------------------------------------- Debtor: U.S. Medical Care Holdings, L.L.C. 3350 NW Boca Raton Blvd., #B38 Boca Raton, FL 33431 Bankruptcy Case No.: 08-24027 Chapter 11 Petition Date: September 25, 2008 Court: Southern District of Florida (West Palm Beach) Judge: Erik P. Kimball Debtor's Counsel: Kenneth S. Rappaport, Esq. rappaport@kennethrappaportlawoffice.com Rappaport Osborne & Rappaport, PL 1300 N. Federal Hwy. #203 Boca Raton, FL 33432 Tel: (561) 368-2200 Total Assets: $361,280 Total Debts: $1,520,391 A list of the Debtor's largest unsecured creditors is available for free at: http://bankrupt.com/misc/flsb08-24027.pdf VALENA LAND: Case Summary & Eight Largest Unsecured Creditors ------------------------------------------------------------- Debtor: Valena Land Co., Inc. 613 College Ave. Santa Rosa, CA 95404 Bankruptcy Case No.: 08-12016 Type of Business: The Debtor offers interior design services. Chapter 11 Petition Date: September 25, 2008 Court: Northern District of California (Santa Rosa) Judge: Alan Jaroslovsky Debtor's Counsel: David N. Chandler, Esq. DChandler1747@yahoo.com Law Offices of David N. Chandler 1747 4th St. Santa Rosa, CA 95404 Tel: (707) 528-4331 Total Assets: $12,476,866 Total Debts: $8,957,282 Debtor's Eight Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Alice Valena $63,077 14885 McDonough Hgts. Rd. Healdsburg, CA 95448 Clement Fitzpatrick & legal fees $4,420 Kenworthy 3333 Mendocino Ave., #200 Santa Rosa, CA 95403 Beyers Costin legal fees $3,065 200 Fourth St. Santa Rosa, CA 95402 Anderson & Co. accounting $1,355 Bellisima Hair Studio tenant security $1,450 deposit City of Santa Rosa weed abatement $420 Godfrey Engineering Engineering $988 Muegge Baldi & Hardcastle Tax Accounting $816 WACHOVIA BANK: Moody's Cuts $32.793MM Certificate Rating to 'Ba3' ----------------------------------------------------------------- Moody's Investors Service upgraded the rating of two classes, downgraded the rating of one class and affirmed the ratings of two classes of Wachovia Bank Commercial Mortgage Trust, Commercial Mortgage Pass-Through Certificates, Series 2005-Whale 6 as: -- Class X-1B, Notional, affirmed at Aaa -- Class X-2, Notional, affirmed at Aaa -- Class H, $13,346,000, upgraded to Aaa from A3 -- Class J, $21,861,000, upgraded to A2 from Baa2 -- Class K, $32,793,000, downgraded to Ba3 from Ba2 Moody's is upgrading Class H and Class J due to increased credit support from the payoff of the One Oliver Plaza Loan ($40.0 million pooled balance). Moody's is downgrading Class K due to performance issues related to the 230 Peachtree Loan. The transaction's aggregate certificate balance has decreased by approximately 94.0% to $68.0 million from $1.1 billion at securitization due to the payoff of 13 loans initially in the pool. Currently the Certificates are collateralized by two loans ranging in size from 26.5% to 73.5% of the pool. The trust has not realized any losses since securitization and no loans are currently in special servicing. The Grand Resort Apartments Loan ($50.0 million -- 73.5%) is secured by a 768-unit multifamily property located in Anaheim, California. The property, which was built in 1969, is located approximately five miles northwest of Disneyland. Occupancy as of March 2008 was 92.3%, compared to 86.9% in March 2007 and 94.7% at securitization. Property performance during 2006 and 2007 was adversely affected by a renovation program. However, as of September 2008, the renovations are substantially finished and occupancy levels have improved. The $80.0 million mortgage loan includes two non-trust junior participation interests with a combined balance of $17.9 million and a non-trust advance participation interest in the maximum amount of $12.1 million to fund capital improvements. As of September 2008, $11.4 million of the $12.1 million advance participation interest has been funded. There is also mezzanine debt in the amount of $20.0 million. The property consists of 12 three-story garden-style apartment buildings constructed in 1969. The property benefits from various amenities including an elevator in each building, three swimming pools, tennis courts and fitness facilities. Monthly average in- place rents range from approximately $2.30 to $2.70 per square foot for studio units (28.1% of total units), $1.82 to $2.05 PSF for one-bedroom/one-bath units (51.6 %) and $1.68 to $1.75 PSF for two-bedroom/two-bath units (20.3%). Torto Wheaton Research reports a Second Quarter 2008 multifamily market occupancy rate in Anaheim of 3.9% and average market rent equal to $1.54 PSF. The loan matures in May, 2010 and is interest only. The loan sponsor is Pacific Property Company. PPC was formed in 1998 as a wholly-owned subsidiary of Marcus & Millichap and is one of the top five apartment investors in California. Moody's loan to value ratio is 62.1%, compared to 59.7% at Moody's last review in October, 2007 and at securitization. Moody's current underlying rating is Baa3, the same as at Moody's last review and compared to Baa2 at securitization. The 230 Peachtree Loan ($18.0 million -- 26.5%) is secured by a 414,768 square foot Class A office building located in downtown Atlanta, Georgia. The building was built in 1965 and renovated in 1997. Occupancy as of March 2008 was 67.0%, compared to 67.7% in June 2007 and 73.6% at securitization. At securitization, Moody's had anticipated a stabilized occupancy rate of 83.0%. As of March 2008, the in-place gross rent was $16.12 PSF, compared to $18.73 PSF at securitization. The building is leased to approximately 40 tenants. The two largest tenants are Booz Allen Hamilton - 12.2% of net rentable area, and Constangy Brooks & Smith - 7.8% of NRA. Lease expirations for these two tenants are in 2012 and 2016, respectively. Torto Wheaton Research reports a Second Quarter 2008 Class A office market vacancy rate of 21.2% for downtown Atlanta. 230 Peachtree has been underperforming the market. The $28.0 million mortgage loan includes a $10.0 million non-trust junior component. The interest-only loan matured in July, 2007 with three 12-month extension options. The loan sponsor is Southcoast Capital Management Corporation. Moody's LTV is 72.7%, compared to 67.1% at Moody's last review and 56.1% at securitization. Moody's current underlying rating is Ba3, compared to Ba2 at Moody's last review and Baa2 at securitization. Moody's periodically completes full reviews in addition to monitoring transactions on a monthly basis. Moody's prior full review is summarized in a press release dated October 4, 2007. Moody's has published rating methodologies outlining its analytical approach to surveillance and its approach to rating large loan/single borrower transactions. In addition, Moody's has published numerous articles outlining its ratings approach to the various property types customarily deposited within these transactions along with other articles on credit issues unique to CMBS. The major rating methodologies employed in analyzing this transaction include: US CMBS: Moody's Approach to Surveillance of Large Loan Transactions, March 8, 2006 -- this paper details a brief review of Moody's new issue ratings approach, the specific steps in a surveillance review of a large loan deal, additional methods of evaluation, a discussion of pro rata pay and rake classes, information on the impact of paydowns and credit drift on ratings, a discussion of pool diversity and leverage adjustments, and an indication of the equivalency of surveillance and new issue ratings; CMBS: Moody's Approach to Rating Large Loan/Single Borrower Transactions, July 7, 2000 -- this paper defines large loans, details Moody's large loan rating approach, discusses target LTV levels and how changes in credit risk impact LTV levels, speaks to how Moody's determines an assets credit risk profile, comments on pooling and diversity benefits along with structural and legal issues and borrower quality, and provides supplementary information on the impact of changes in amortization schedules, capitalization rates for different property types, and the information requirements for ratings these types of deals; CMBS: Moody's Approach to Rating Floating Rate Transactions, May 12, 2000 -- this paper discusses the market drivers behind floating rate deals, Moody's CMBS floating rate methodology, how interest rate volatility impacts credit risk, how to calculate the floating rate credit enhancement adjustment, and the potential credit benefits of interest rate caps; and Positive and Negative Pooling: Moody's Approach to Tranching Large Loan CMBS, December 18, 2001 -- this paper provides an evaluation of how diversity affects the bond capital structure leading to a rationale for positive and negative pooling, discusses the Monte Carlo simulation approach, and indicates some general ratings guidelines based on simulation results. WASHINGTON MUTUAL: Files for Chapter 11 in Delaware --------------------------------------------------- Washington Mutual, Inc., together with its wholly owned subsidiary, WMI Investment Corp., commenced on Friday voluntary cases under chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The chapter 11 filings were a result of the appointment, by the Office of Thrift Supervision, of the Federal Deposit Insurance Company as receiver of Washington Mutual Bank, Washington Mutual, Inc.'s banking subsidiary on Sept. 25, 2008. WaMu's banking subsidiary was taken over by U.S. government regulators after customers withdrew $16.7 billion over 10 days, making it the biggest U.S. bank to fail, Bloomberg's Jef Feeley and Steven Church say. WaMu is the latest casualty of the liquidity crunch in the financial markets. Lehman Brothers Holdings Inc. and IndyMac Bancorp Inc. have filed for bankruptcy. Merrill Lynch & Co. sold itself to Bank of America Corp, and Wachovia is reportedly in takeover talks with Citigroup, Wells Fargo and Spain's Santander. The Federal Reserve financed the purchase of Bear Stearns Cos. by JPMorgan Chase & Co., and issued an $85 billion bailout loan to American International Group. "The expectation is we may see more banks being forced to take this route," said Kevin Mangan, a Wilmington bankruptcy lawyer with Womble Caryle Sandridge & Rice, Bloomberg relates. Mr. Mangan is not connected with the case. Bloomberg says JPMorgan Chase & Co. became the biggest U.S. bank by deposits when it bought WaMu's branches with a $1.9 billion payment to the Federal Deposit Insurance Corp. Bloomberg notes that WaMu shares had fallen 98% over the past year on losses tied to subprime lending before trading was halted on news of the FDIC seizure. According to Bloomberg, WaMu was one of the financial firms the U.S. Securities and Exchange Commission protected from short selling this month as part of an effort to stabilize equity markets. WaMu's bank had $188 billion in deposits. The savings and loan itself may not seek bankruptcy protection under federal law, Bloomberg notes. According to Bloomberg, Ronald Greenspan, a senior managing director with FTI Consulting Inc., said WaMu's court filings don't reflect the company's entire debt because many liabilities are spread out among its various units, many of which haven't sought court protection. Mr. Greenspan has represented creditors in bankruptcies of the biggest subprime mortgage companies, including New Century Financial Corp., Bloomberg notes. "[W]e are going to see a meaningful number of additional insolvencies" among banks, said Mr. Greenspan said, according to Bloomberg. About Washington Mutual Based in Seattle, Washington, Washington Mutual Inc. -- http://www.wamu.com/-- is a holding company for Washington Mutual Bank as well as numerous non-bank subsidiaries. The company operates in four segments: the Retail Banking Group, which operates a retail bank network of 2,257 stores in California, Florida, Texas, New York, Washington, Illinois, Oregon, New Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and Connecticut; the Card Services Group, which operates a nationwide credit card lending business; the Commercial Group, which conducts a multi-family and commercial real estate lending business in selected markets, and the Home Loans Group, which engages in nationwide single-family residential real estate lending, servicing and capital markets activities. Washington Mutual Bank was taken over Sept. 25 by U.S. government regulators. The next day, WaMu and its debtor-affiliate, WMI Investment Corp., filed separate petitions for Chapter 11 relief (Bankr. D. Del. 08-12229 and 08-12228, respectively). Wamu owns 100% of the equity in WMI Investment. Weil Gotshal & Manges represents the Debtors as counsel. When WaMu filed for protection from its creditors, it listed assets of $32,896,605,516 and debts of $8,167,022,695. WMI Investment listed assets of $500,000,000 to $1,000,000,000 with zero debts. Bloomberg notes that WaMu's debt ranks it among the largest U.S. bankruptcies by indebtedness. Lehman Brothers Holdings' bankruptcy filing on Sept. 15 is the largest, with $613 billion in debt. WorldCom Inc., the telecommunications firm that filed for protection in 2002 after accounting malfeasance was disclosed, listed $41 billion in debt in what's now the second-largest Chapter 11 case, according to Bloomberg. WASHINGTON MUTUAL: Case Summary & 13 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Washington Mutual, Inc. 1301 Second Avenue Seattle, WA 98101 Bankruptcy Case No.: 08-12229 Debtor-affiliates filing separate Chapter 11 petitions: Entity Case No. ------ -------- WMI Investment Corp. 08-12228 Type of Business: Washington Mutual is a consumer and small business banking company with operations in United States markets. The Company is a savings and loan holding company. It owns two banking subsidiaries, Washington Mutual Bank and Washington Mutual Bank fsb, as well as numerous non-bank subsidiaries. The company operates in four segments: the Retail Banking Group, which operates a retail bank network of 2,257 stores in California, Florida, Texas, New York, Washington, Illinois, Oregon, New Jersey, Georgia, Arizona, Colorado, Nevada, Utah, Idaho and Connecticut; the Card Services Group, which operates a nationwide credit card lending business; the Commercial Group, which conducts a multi-family and commercial real estate lending business in selected markets, and the Home Loans Group, which engages in nationwide single-family residential real estate lending, servicing and capital markets activities. As reported in the Troubled Company Reporter on Sept. 16, 2008, Standard & Poor's Ratings Services lowered its counterparty credit rating on WaMu to 'BB-/B' from 'BBB-/A-3'. As reported by the TCR on Sept. 22, Fitch Ratings placed the ratings of Washington Mutual, Inc. ('BBB-/F3'), Washington Mutual Bank ('BBB/F3') and related entities on Rating Watch Evolving. This action reflects recent market developments, specifically, the waiver by WaMu's largest investors of the price reset rights under their investment agreement and warrants associated with their June 2008 capital investments. Washington Mutual owns 100% of the equity in WMI Investment. See: http://www.wamu.com/ Chapter 11 Petition Date: September 26, 2008 Court: District of Delaware (Delaware) Judge: Mary F. Walrath Debtors' Counsel: Weil Gotshal & Manges LLP Debtors' Local Counsel: Mark D. Collins, Esq. collins@RLF.com Richards Layton & Finger One Rodney Square P.O. Box 551 Wilmington, DE 19899 Tel: (302) 651-7700 Fax: (302) 651-7701 Special Counsel: Simpson Thacher & Bartlett LLP Estimated Assets Estimated Debts ---------------- --------------- Washington Mutual $32,896,605,516 $8,167,022,695 WMI Investment $500 million to $0 $1 billion Debtor's 13 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ The Bank of New York, as junior subordinated $1,150,000,000 trustee for holders of Junior debentures Subordinated Debentures Corporate Trust Administration 100 Barclay St. 8W New York, NY 10286 The Bank of New York, as senior debt $805,000,000 trustee for holders of 4.00% Fixed Rate Notes due 2009 Corporate Trust Administration 100 Barclay St. 8W New York, NY 10286 The Bank of New York, as subordinate $732,000,000 successor to Harris Trust and Savings Bank, as trustee for holders of 4.625% Subordinated Notes due 2014 Corporate Trust Administration 100 Barclay St. 8W New York, NY 10286 The Bank of New York, as senior debt $730,000,000 trustee for holders of 5.25% Fixed Rate Notes due 2017 Corporate Trust Administration 100 Barclay St. 8W New York, NY 10286 The Bank of New York, as senior debt $504,000,000 trustee for holders of 4.2% Fixed Rate Notes due 2010 The Bank of New York, as senior debt $359,000,000 trustee for holders of $500,000,000 Floating Rate Notes due 2009 Corporate Trust Administration 100 Barclay St. 8W New York, NY 10286 The Bank of New York, as subordinate $452,000,000 successor to Harris Trustee and Savings Bank, as trustee for holders of 8.250% Subordinated Notes due 2010 Corporate Trust Administration 100 Barclay St. 8W New York, NY 10286 The Bank of New York, as senior debt $447,000,000 successor to Harris Trust and Savings Bank, as trustee for holders of $500,000,000 Floating Rate Notes due 2012 Corporate Trust Administration 100 Barclay St. 8W New York, NY 10286 The Bank of New York, as subordinate $440,000,000 trustee for holders of 7.250% Subordinated Notes due 2017 Corporate Trust Administration 100 Barclay St. 8W New York, NY 10286 The Bank of New York, as senior debt $376,000,000 trustee for holders of 5.0% Fixed Rate Notes due 2012 Corporate Trust Administration 100 Barclay St. 8W New York, NY 10286 The Bank of New York, as senior debt $363,000,000 trustee for holders of $450,000,000 Floating Rate Notes due 2012 Corporate Trust Administration 100 Barclay St. 8W New York, NY 10286 The Bank of New York, as senior debt $361,000,000 trustee for holders of 5.50% Fixed Rate Notes due 2011 Corporate Trust Administration 100 Barclay St. 8W New York, NY 10286 The Bank of New York, as senior debt $176,000,000 trustee for holders of $250,000,000 Floating Rate Notes due 2010 Corporate Trust Administration 100 Barclay St. 8W New York, NY 10286 WASHINGTON MUTUAL: Moody's Places 31 Trusts Ratings Under Review ---------------------------------------------------------------- Moody's Investors Service has placed under review for possible downgrade the ratings on 31 classes of credit card receivable- backed securities issued through the Washington Mutual Master Note Trust and the Washington Mutual Master Trust. The complete rating actions are: Under Review for Possible Downgrade Issuer: Washington Mutual Master Note Trust -- $775,000,000 Floating Rate Class 2005-A2 Asset Backed Notes, rated A1 -- $125,000,000 Floating Rate Class 2005-M2 Asset Backed Notes, rated A3 -- $150,000,000 Fixed Rate Class 2005-B2 Asset Backed Notes, rated Baa3 -- $150,000,000 Floating Rate Class 2005-C2 Asset Backed Notes, rated Ba2 -- $900,000,000 Floating Rate Class 2006-A1 Asset Backed Notes, rated A1 -- $750,000,000 Floating Rate Class 2006-A2 Asset Backed Notes, rated A1 -- $1,250,000,000 Floating Rate Class 2006-A3 Asset Backed Notes, rated A1 -- $500,000,000 Floating Rate Class 2006-A4 Asset Backed Notes, rated A1 -- $300,000,000 Floating Rate Class 2006-M1 Asset Backed Notes, rated A3 -- $200,000,000 Fixed Rate Class 2006-B1 Asset Backed Notes, rated Baa3 -- $200,000,000 Floating Rate Class 2006-C1 Asset Backed Notes, rated Ba2 -- $150,000,000 Floating Rate Class 2006-C2 Asset Backed Notes, rated Ba2 -- $200,000,000 Floating Rate Class 2006-C3 Asset Backed Notes, rated Ba2 -- $1,100,000,000 Floating Rate Class 2007-A1 Asset Backed Notes, rated A1 -- $875,000,000 Floating Rate Class 2007-A2 Asset Backed Notes, rated A1 -- $425,000,000 Fixed Rate Class 2007-A4 Asset Backed Notes, rated A1 -- $200,000,000 Floating Rate Class 2007-A5 Asset Backed Notes, rated A1 -- $150,000,000 Fixed Rate Class 2007-B1 Asset Backed Notes, rated Baa3 -- $125,000,000 Floating Rate Class 2007-C1 Asset Backed Notes, rated Ba2 -- Class 2005-D2 Variable Funding Asset Backed Notes, rated B3 -- Class 2007-C2 Variable Funding Asset Backed Notes, rated Ba2 Issuer: Washington Mutual Master Trust -- Class D Certificates, Variable Funding Series 2004-G, rated Ba2 -- Class E Certificates, Variable Funding Series 2004-G, rated B3 -- Class A Certificates, Variable Funding Series 2007-A, rated A1 -- Class B Certificates, Variable Funding Series 2007-A, rated A3 -- Class C Certificates, Variable Funding Series 2007-A, rated Baa3 -- Class D Certificates, Variable Funding Series 2007-A, rated Ba2 -- Class A Certificates, Variable Funding Series 2007-B, rated A1 -- Class B Certificates, Variable Funding Series 2007-B, rated A3 -- Class C Certificates, Variable Funding Series 2007-B, rated Baa3 -- Class D Certificates, Variable Funding Series 2007-B, rated Ba2 Rationale The rating actions were prompted by the September 22nd review of Washington Mutual Bank's deposit and issuer ratings, and follows Moody's September 15 downgrade of 31 outstanding classes of notes from the Trusts. The September 15 action took into account the potential negative impact that restricted access to funding could have on the economic viability of WaMu's credit card program given the severe asset quality issues that continue to deplete WaMu's capital base which, in turn, could lead to further erosion of the bank's franchise. As WaMu considers potential alternatives for stabilizing its funding base, including possible acquisition with or without regulatory assistance, uncertainty about the future of the credit card portfolio increases. The -- Current Rating action reflects Moody's concern that even in an acquisition scenario an acquiring entity may elect to either not purchase the credit card operation or to discontinue funding it. The credit card portfolio is characterized by sub- and near-prime accounts with geographic conentrations in states that have been most negatively impacted by housing-related economic factors. Given these characteristics, and its current performance, the future profitability of the portfolio is in doubt. During its review, Moody's focus will be on the company's ability to maintain the viability of its credit card franchise through a potential sale or other strategic initiatives. Bank Rating Action On September 22, Moody's placed all outstanding ratings of the bank (Baa3 senior unsecured) under review for possible downgrade, and downgraded the bank's financial strength rating to E from D+. These actions stemmed from asset quality issues that are substantially limiting WaMu's financial flexibility and potentially preventing it from replenishing capital and preserving diversified and stable funding sources. This could lead to the acquisition of WaMu by a stronger financial institution with or without regulatory assistance. Although Moody's believes that the US Treasury's $700 billion asset purchase program has the potential to restore confidence in US banks, benefits of the program to WaMu are uncertain in the short-term. WaMu's troubled asset portfolios are sizeable in relation to its capital base. Although details of the program are still being worked out, mark-downs that could be required if a large portion of its troubled assets were sold into the program are likely to erode its capital position. Additionally, the imminence of WaMu's need to restore confidence in its funding base may not be consistent with the timing of the implementation of the Treasury's proposed program. Background Washington Mutual Bank is a wholly owned subsidiary of Washington Mutual, Inc. (Ba2) headquartered in Seattle, Washington. As of June 30, 2008 Washington Mutual, Inc. had reported assets of $310 billion. WCI COMMUNITIES: Gets Final Nod to Use $150MM Wachovia DIP Loan --------------------------------------------------------------- The United States Bankruptcy Court for the District of Delaware authorized WCI Communities Inc. and its debtor-affiliates, on a final basis, to borrow money and obtain letters of credit in the aggregate principal amount of $150,000,000 from Wachovia Bank, N.A., as administrative agent, and a syndicate of lenders. The Court entered the Final DIP Order on September 23, 2008. The designated Debtor subsidiaries are authorized to guarantee the Debtor borrowers' borrowings and obligations with respect to the letter of credit committed by the DIP Lenders. The Debtors are authorized to use the DIP Loan to provide for their working capital, to pay certain interests, fees and expenses noted in the DIP Credit Agreement, and to make adequate protection payments, cure amounts and any other payments permitted to be made by the Court. They are also directed to use a portion of the DIP Loan to repay debt obligations with respect to a September 2005 Revolving Credit Construction Loan Agreement among the Debtors, Wachovia Bank and certain other lenders -- the "Tower Debt." All of the Debtors' Obligations under the DIP Credit Agreement constitute "superpriority claims" or allowed claims against the Debtors with priority over all administrative expenses, diminution claims and all other claims, subject only to the Carve-Out. As security for the DIP Obligations, those obligations are granted (i) first priority liens on all of the Debtors' unencumbered property; (ii) liens priming the liens of the Debtors' prepetition lenders; and (iii) liens junior to certain other liens valid and unavoidable liens. Subject to Court approval, the Debtors may amend the DIP Credit Agreement for any purpose, including to add additional financial institutions as DIP Lenders and reallocate financing commitments among the DIP Lenders. No portion of the DIP Loan or cash collateral may be used to challenge the validity and priority of the DIP Loan amounts or assert any claim or cause of action against the Prepetition Lenders and the DIP Lenders, Judge Carey ruled. Advisors to the Official Committee of Unsecured Creditors may, however, investigate prepetition liens of the Prepetition Lenders, at an expense not to exceed $250,000, incurred from and after September 23, 2008 or the DIP Order date, the Court clarified. In a separate order, Judge Carey permitted the Debtors to file the Fee Letter related to the DIP Credit Agreement under seal. The Fee Letter will remain under seal and confidential and will only be made available to certain parties under appropriate confidentiality agreements reasonably satisfactory to the Debtors and the DIP Lenders. The Judge ruled that service of the Debtors' DIP financing request is enough without transmittal of the Fee Letter. The terms of the DIP Credit Agreement will mature on September 23, 2009. * * * The Court also authorized the Debtors to use, on a final basis, the cash collateral of their prepetition lenders. The Prepetition Lenders are also granted adequate protection for the aggregate net diminution in the value of their security interests in and liens on the prepetition collateral. About WCI Communities Headquartered in Bonita Springs, Florida, WCI Communities, Inc. -- http://www.wcicommunities.com/-- is a fully integrated homebuilding and real estate services company. It has operations in Florida, New York, New Jersey, Connecticut, Massachusetts, Virginia and Maryland. The company directly employs roughly 1,800 people, as well as roughly 1,800 sales representatives as independent contract employees. The company and 126 of its affiliates filed for Chapter 11 protection on Aug. 4, 2008 (Bankr. D. Del. Lead Case No. 08-11643 through 08-11770). Thomas E. Lauria, Esq., Frank L. Eaton, Esq., Linda M. Leali, Esq., at White & Case LLP, in Miami, Florida. Eric Michael Sutty, Esq., and Jeffrey M. Schlerf, Esq., at Bayard, P.A, are the Debtors' local bankruptcy counsel. Lazard Freres & Co. represents the Debtors as financial advisors. The Debtors selected Epiq Bankruptcy Solutions LLC as their claims & notice agent. The U.S. Trustee for Region 3 appointed five creditors to serve on an Official Committee of Unsecured Creditors. Daniel H. Golden, Esq., Lisa Beckerman, Esq., and Philip C. Dublin, Esq., at Akin Gump Strauss Hauer & Feld LLP, and Laura Davis Jones, Esq., Michael R. Seidl, Esq., and Timothy P. Cairns, Esq., at Pachulski Stang Ziehl & Jones LLP, represent the Committee in these cases. When the Debtors filed for protection from their creditors, they listed total assets of $2,178,179,000 and total debts of $1,915,034,000. (WCI Communities Bankruptcy News, Bankruptcy Creditors' Service Inc.; http://bankrupt.com/newsstand/or 215/945-7000). WHITEHALL JEWELERS: Court Sets Dec. 1 General Bar Date ------------------------------------------------------ The U.S. Bankruptcy Court for the District of Delaware has granted Whitehall Jewelers Holdings, Inc. and Whitehall Jewelers, Inc.'s request to extend the deadlines for filing proofs of claim in their bankruptcy cases, to: i) General Bar Date - Dec. 1, 2008 ii) Government Bar Date - Dec. 23, 2008 Proofs of Claim, if sent by mail, should be sent to: Whitehall Jewelers Holdings, Inc. Claims Processing Center c/o Epiq Bankruptcy Solution, LLC FDR Station, P.O. Box 5015 New York, NY 10150-5015 Proofs of claim, if delivered by hand, courier service or overnight service, should be sent to: Whitehall Jewelers Holdings, Inc. Claims Processing Center c/o Epiq Bankruptcy Solutions, LLC 757 Third Avenue, 3rd Floor New York, NY 10017 About Whitehall Jewelers Headquartered in Chicago, Illinois, Whitehall Jewelers Holdings Inc. -- http://www.whitehalljewellers.com/-- owns and operates 375 stores jewelry stores in 39 states. The company operates stores in regional and regional shopping malls under the brand names Whitehall Jewellers, Marks Bros. Jewellers and Lundstrom Jewellers. The Debtors' retail stores operate under the names Whitehall (271 locations), Lundstrom (24 locations), Friedman's (56 locations, and Crescent (22 locations). As of June 23, 2008, the Debtors have about 2,852 workers. The company and its affiliates, Whitehall Jewelers Inc., filed for Chapter 11 protection on June 23, 2008 (Bankr. D. Del. Lead Case No. 08-11261). James E. O'Neill, Esq., Kathleen P. Makowski, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. Epiq Bankruptcy Solutions LLC is their claims, noticing and balloting agent. Whitehall Jewelers Holdings, Inc. and Whitehall Jewelers, Inc. filed their schedules of assets and liabilties on Aug. 5, 2008. Whitehall Jewelers Holdings disclosed that it had $112,707,780 in secured debts. Whitehall Jewelers Inc. disclosed $246,571,775 in total assets and $173,694,918 in total debts. WHITEHALL JEWELERS: May Obtain Up to $80MM in Postpetition Loans ---------------------------------------------------------------- The U.S. Bankruptcy Court for the District of Delaware has granted Whitehall Jewelers Holdings, Inc. and Whitehall Jewelers, Inc. authority, on a final basis, to obtain post-petition secured indebtedness of up to $80,000,000, as follows: DIP Facility: A senior secured, superpriority revolving credit facility in the aggregate amount of $80 million Lenders: BofA, Wells Fargo Retail Finance, LLC, and GMAC Commercial Finance LLC Purpose: (a) working capital and general corporate purposes, (b) payment of costs of administration of the Debtor's cases, to the extent set forth in the Budget or this Final Order, (c) re-issuance of all pre- petition L/C's issued under the Pre- Petition Credit Agreement, and (d) payment in full of the remaining obligations under the Pre-Petition Revolving Facility. Interest: Prime plus 1.50% p.a. or LIBOR plus 2.75% p.a. Default rate interest shall be at the otherwise applicable interest rate plus 2% Superpriority To secure the prompt payment of the DIP Claims: Facility, the DIP Lenders shall be granted first priority priming, valid, perfected, and enforceable liens, subject only to the Carve-Out and the Prior Permitted Liens, upon all of the Debtors' real and personal property, including, without limitation, the PrePetition Collateral, as provided in the DIP Credit Agreement. Superpriority Subject to the Carve-Out, all DIP Administrative Obligations shall be an allowed Claims superpriority administrative claim with priority in the Debtors' cases and otherwise over all administrative expense claims and unsecured claims against the Debtors and theri estates Carve-Out: (a) allowed administrative expense pursuant to 28 U.S.C. Section 1930(a)(6)(the "U.S. Trustee Fees"); (b) allowed actual and necessary expenses incurred by members of the Creditors' Committee, and (c) allowed fees and expenses of attorneys and financial advisors employed by the Debtors and the Creditors' Committee pursuant to Sections 327 and 1103 of the Bankruptcy Code. Termination Date: Date that is the earliest to occur of: (i) Dec. 31, 2008, unless a Plan, which is either acceptable to the DIP Lenders or provides for payment in full in cash on the effective date of the Plan of all DIP Obligations, has been filed and then such date that may be mutually agreed but in no event later than the effective date of such Plan; (ii) the occurence and continuance of an Event of Default and delivery of a DIP Commitment Termination Notice; (iii) the sale of all or substantially all of the assts of the Debtors; or (iv) the effective date of the Plan related to the Debtors and their assets. The Court also authorized the use of Cash Collateral in which the Pre-Petition Secured Parties and the Term Lenders have an interest solely in accordance with the terms and conditions of the DIP Facility and the DIP Credit Agreement, and in accordance with the Budget. The Pre-Petition Revolving lenders and the Pre-Petition Term Lenders shall be granted Pre-Petition Replacement Liens and Pre- Petition Superpriority Claims to the extent of any diminution in the value of their interest in the Pre-Petition Collateral and the Term Lenders' Collateral resulting from the implementation of the DIP Credit Facility. In addition, they shall be granted Adequate Protection Payments as adequate protection for the granting of the DIP Liens to the Post-Petition Lenders, the use of Cash Collateral, and the imposition of the automatic stay. The automatic stay imposed under Bankruptcy Code Section 362(a) is vacated and modified to the extent necessary to implement and effectuate the terms and provisions of the DIP Credit Agreement and this Final Order. The 10-day stay provisions of Bankruptcy Rule 6004(h) are waived and shall not apply to this Final Order. About Whitehall Jewelers Headquartered in Chicago, Illinois, Whitehall Jewelers Holdings Inc. -- http://www.whitehalljewellers.com/-- owns and operates 375 stores jewelry stores in 39 states. The company operates stores in regional and regional shopping malls under the brand names Whitehall Jewellers, Marks Bros. Jewellers and Lundstrom Jewellers. The Debtors' retail stores operate under the names Whitehall (271 locations), Lundstrom (24 locations), Friedman's (56 locations, and Crescent (22 locations). As of June 23, 2008, the Debtors have about 2,852 workers. The company and its affiliates, Whitehall Jewelers Inc., filed for Chapter 11 protection on June 23, 2008 (Bankr. D. Del. Lead Case No. 08-11261). James E. O'Neill, Esq., Kathleen P. Makowski, Esq., and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. Epiq Bankruptcy Solutions LLC is their claims, noticing and balloting agent. Whitehall Jewelers Holdings, Inc. and Whitehall Jewelers, Inc. filed their schedules of assets and liabilties on Aug. 5, 2008. Whitehall Jewelers Holdings disclosed that it had $112,707,780 in secured debts. Whitehall Jewelers Inc. disclosed $246,571,775 in total assets and $173,694,918 in total debts. WII COMPONENTS: S&P Trims Rating to 'B'; Puts on Negative Watch --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on WII Components Inc. The corporate credit rating was lowered to 'B-' from 'B'. At the same time, S&P placed all ratings on CreditWatch with negative implications. "The downgrade reflects our belief that WII's earnings and credit measures will continue to weaken because of slowing demand for residential remodeling products," said Standard & Poor's credit analyst Pamela Rice. The company's adjusted debt leverage, including its parent payment-in-kind notes, at June 30, 2008, was weaker than the 5x to 6x S&P considered acceptable for the former rating and provides only minimal cushion under its credit agreement financial covenants. With continuing turmoil in the credit markets and waning consumer confidence, S&P believes demand for kitchen and bath cabinets could continue to fall. In addition, S&P does not expect new housing construction to rebound before 2010. As a result, if trailing 12 months EBITDA declines by 10% to 20% over the next few quarters, adjusted leverage could exceed WII's credit facility maximum leverage covenant of 7.8x. In addition, the company's $110 million senior unsecured notes due 2012 must be redeemed, repurchased, refinanced, or defeased prior to March 31, 2009, or it will be an event of default under its credit agreement. Because of the current credit market turmoil, S&P expects that the company will seek to negotiate with its sole lender under the credit facility to waive or delay this requirement. Alternatively, WII could repay the $4 million outstanding under the facility. If the company is unsuccessful in resolving the issue and liquidity for seasonal working capital purposes is impaired, S&P could lower the ratings. In resolving the CreditWatch listing, S&P will discuss with management its plans to address potential near-term liquidity constraints caused by tight covenants, and potential refinancing risk given the difficult operating and credit market conditions that are likely to continue during this period. WILMA SHORE: Case Summary & Four Largest Unsecured Creditors ------------------------------------------------------------ Debtor: Wilma V. Shore 1710 W Browning Avenue Fresno, CA 93711 Bankruptcy Case No.: 08-16002 Chapter 11 Petition Date: September 24, 2008 Court: Eastern District of California (Fresno) Judge: Whitney Rimel Debtor's Counsel: Hilton A. Ryder, Esq. 5 River Park Place East PO Box 28912 Fresno, CA 93729-8912 Tel: (559) 433-1300 Estimated Assets: $1 million to $10 million Estimated Debts: $1 million to $10 million A list of the Debtor's largest unsecured creditors is available for free at: http://bankrupt.com/misc/califeb08-16002.pdf YOUNG BROADCASTING: Continued Cash Burn Cues Moody's Ratings Cut ---------------------------------------------------------------- Moody's Investors Service downgraded Young Broadcasting Inc.'s Corporate Family Rating to Caa3 from Caa1, its Probability of Default Rating to Caa3 from Caa2 and its $370 million secured credit facility ($20 million revolver, $350 million term loan) to B2 from B1. In addition, Moody's downgraded Young's 10% Senior Subordinated Notes due 2011 and 8 �% Senior Subordinated Notes due 2014 to Ca from Caa2. The rating outlook is negative. The downgrades reflect Young's continuing cash burn which contributes to an eroding liquidity profile. The company's operating performance continues to be weak and has been adversely affected by the soft economy and the related pullback in advertising. Moody's believes that the fundamental credit profile of the company as projected continues to look weak and that the company will need to execute on cost reductions and/or revenue enhancements and take additional steps to reduce leverage. Moody's notes that the company has not yet reached an agreement to sell KRON-TV, a station that has been "for sale" since January 2008. The negative outlook reflects Moody's concerns over the company's liquidity and ability to maintain the minimum cash balances in 2009 as required under the secured credit facility agreement, especially in light of the uncertainty regarding the occurrence and timing of the sale of KRON and the ongoing cash burn after debt service costs. The PDR downgrade incorporates the company's elevated risk of default. Moody's believes that there is significant value in Young's television station assets, however, Moody's expectations are tempered by the current financing environment and asset valuations, uncertainty surrounding the sale of KRON and the writedown in KRON's asset value. Additionally, Moody's continues to believe that Young's asset value will likely not adequately cover the company's debt obligations in a distress scenario, and that junior-ranking bondholders in particular are exposed to potentially material loss absorption in an event of default. Moody's has taken these ratings actions: Young Broadcasting Inc. -- Corporate family rating - downgraded to Caa3 from Caa1 -- Probability-of-default rating - downgraded to Caa3 from Caa2 -- $370 million senior secured credit facility -- downgraded to B2 (LGD 2, 13%) from B1 (LGD 1, 7%) -- 10% Senior Subordinated Notes due 2011 -- downgraded to Ca (LGD 4, 68%) from Caa2 (LGD 4, 54%) -- 8 3/4 % Senior Subordinated Notes due 2014 -- downgraded to Ca (LGD 4, 68%) from Caa2 (LGD 4, 54%) The outlook is negative. Young Broadcasting Inc.'s Caa3 corporate family rating reflects its significant debt-to-EBITDA leverage and the expectation that the company will continue to generate negative free cash flow over the rating horizon. The rating also reflects the soft advertising climate which has pressured the company's operating performance, the weak performance of KRON-TV due to market conditions and under-performance of MyNetworkTV, the inherent cyclicality of advertising spending and the increasing business risk associated with the broadcast television industry as advertising spending gets diversified over a growing number of media. The ratings benefit from the higher proportion of comparatively stable local advertising revenue (approximately 68% of gross revenue during the second quarter ended 6/30/2008), strong positions in several markets and the company's presence in the sixth largest DMA. Young Broadcasting Inc., headquartered in New York, owns and operates 10 television stations in 10 markets and a national television sales representative firm, Adam Young Inc. * Moody's Says Pressures Build Up in Rate-Regulated Gas Sectors --------------------------------------------------------------- While the outlook for the North American natural gas transmission and distribution industry is stable, pressures are building on the rate-regulated sector as the U.S. economy weakens and capital spending for new pipeline construction soars, says Moody's Investors Service. "The North American natural gas transmission and distribution industry's financial performance and credit profile remain solid, and ratings remain generally stable," said Moody's Vice President Mihoko Manabe, author of the report, which updates a sector outlook published in March and expresses Moody's expectations for the industry's fundamental credit conditions over the next 12 to 18 months. "U.S. economic weakness is starting to increase bad debt expense for local gas distribution companies as the housing and energy crises strain household budgets, leading to more rate case filings and regulatory risk," said Mr. Manabe, senior credit officer for Moody's Infrastructure Finance Group. She said 2008 could be a high-water mark in the long-term cycles for regulated gas companies in terms of the number of greenfield long-haul pipeline construction and local gas distribution rate case filings. Since the March industry outlook, LDCs have seen an increase in bad debt expense, and pipeline companies have raised their estimates of the cost and the time involved to complete the current construction boom. "Gas LDCs in some regions are seeing buildups in accounts receivable as customers struggle to pay bills," said Mr. Manabe. "This could presage lower margins if regulators hesitate to provide full and timely relief." Moody's reports that the pipeline business is in the midst of an historic construction phase that could lead to some temporary financial stress, particularly as construction costs soar. Construction spending is hitting a peak this year, and Moody's expects a second peak around 2011. "The construction boom is slowly reshaping the industry," said Mr. Manabe. "Emerging shale gas plays are stimulating construction of greenfield pipelines and expansions of existing facilities that could create overcapacity in some areas." The analyst said it is too soon to know which pipelines might be affected, but, over the long term, companies may have difficulty in renewing agreements with some shippers, or may have to do so on less-favorable terms. "These pressures have yet to affect ratings in the sector as most companies enjoy a cushion of strong financial metrics for their ratings categories," said Mr. Manabe. "Financial performance remains steady, and investment-grade gas T&D companies retain good access to capital markets as the credit crisis unfolds." Mergers and acquisitions have been fairly light, she said, but M&A activity remains a primary catalyst of rating actions in the industry. The title of the report is "North American Natural Gas Transmission and Distribution: Six-Month Update." * Moody's Downgrades Ratings on 35 Credit Linked Notes ------------------------------------------------------ Moody's Investors Service has placed 1 credit linked note on review for downgrade and downgraded the ratings of 35 credit linked notes, 3 credit default swaps and 1 CDO with respect to which the Reference Obligations are ABX.HE 07-1, ABX.HE 06-2, ABX.HE 06-1, or TABX.HE 07-1 06-2, and left 1 of these ratings on review for downgrade. The ABX.HE and TABX.HE indices are static and are 100% exposed to subprime residential mortgage backed securities issued in 2005 and 2006. In response to continued credit deterioration of first lien subprime residential mortgages securitized in 2006, Moody's has increased its loss projection to an average of 22%. See "Subprime RMBS Loss Projection Update: September 2008," Moody's Structured Finance Special Report, September 18, 2008. The rating actions reflect Moody's updated loss projections for the Reference Obligations and the increased expected loss associated with each security. The rating actions are: (i) Transactions referencing TABX.HE 07-1 06-2: Issuer: Hudson Mezzanine Funding 2006-2, Ltd.: Class Description: $7,900,000 Class S Floating Rate Notes due 2012 -- Prior Rating: Aaa -- Prior Rating Date: March 29, 2007 -- Current Rating: B1, on review for possible downgrade Class Description: $240,000,000 Class A-1 Floating Rate Notes due 2042 -- Prior Rating: Ba2, on review for possible downgrade -- Prior Rating Date: April 24, 2008 -- Current Rating: Ca Class Description: $46,000,000 Class A-2 Floating Rate Notes due 2042 -- Prior Rating: B3, on review for possible downgrade -- Prior Rating Date: April 24, 2008 -- Current Rating: C Class Description: $56,000,000 Class B Floating Rate Notes due 2042 -- Prior Rating: Caa3, on review for possible downgrade -- Prior Rating Date: April 24, 2008 -- Current Rating: C Notes and Class Description: Ixion plc 2007 Series 21 US$20,000,000 Floating Rate Portfolio Credit Linked Secured Notes Due 2045 -- Prior Rating: Ca -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Ixion plc 2007 Series 22 US$100,000,000 Floating Rate Portfolio Credit Linked Secured Notes Due 2046 -- Prior Rating: Caa3, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Ixion plc 2007 Series 23 US$85,625,000 Floating Rate Portfolio Credit Linked Secured Notes Due 2046 -- Prior Rating: Caa3, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Ixion plc 2007 Series 24 EUR20,000,000 Floating Rate Portfolio Credit Linked Secured Notes Due 2046 -- Prior Rating: Caa3, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Ixion plc 2007 Series 25 US$50,000,000 Floating Rate Portfolio Credit Linked Secured Notes Due 2046 -- Prior Rating: Ca -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Ixion plc 2007 Series 26 US$70,000,000 Floating Rate Portfolio Credit Linked Secured Notes Due 2045 -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Ixion plc 2007 Series 27 US$47,000,000 Floating Rate Portfolio Credit Linked Secured Notes Due 2046 -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Securitized Product of Restructured Collateral Limited SPC, Series 2007-1 TABXSPOKE (07-1 40-100) Segregated Portfolio US$15,000,000 Class A Floating Rate Notes Due 2046 -- Prior Rating: Caa3, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Credit Default Swap Reference Number NE7JS US$15,000,000 Due 2046 -- Prior Rating: Caa3, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Credit Default Swap Reference Number CN098112 US$30,000,000 Due 2046 -- Prior Rating: Caa3, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Rutland Rated Investment Series 43 US$10,000,000 Credit Linked Notes Due 2046 -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Rutland Rated Investment Series 50 US$20,000,000 Credit Linked Notes Due 2046 -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Coliseum SPC, TACLs 2007-I Segregated Portfolio US$ 100,000,000 Floating Rate Notes Due 2046 -- Prior Rating: Ca -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Coliseum SPC, TACLs 2007-II Segregated Portfolio US$25,000,000 Floating Rate Notes Due 2038 -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Coliseum SPC, TACLs 2007-III Segregated Portfolio US$ 37,500,000 Class I Floating Rate Notes Due 2046 -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Coliseum SPC, TACLs 2007-III Segregated Portfolio US$ 1,974,000 Subordinated Notes Due 2046 -- Prior Rating: Ca -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Coliseum SPC, TACLs 2007-IV Segregated Portfolio US$30,000,000 Class I Floating Rate Notes Due 2046 -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Coliseum SPC, TACLs 2007-IV Segregated Portfolio US$1,600,000 Subordinated Notes Due 2046 -- Prior Rating: Ca -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Coliseum SPC, TACLs 2007-V Segregated Portfolio US$20,000,000 Class I Floating Rate Notes Due 2046 -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Coliseum SPC, TACLs 2007-V Segregated Portfolio US$1,100,000 Subordinated Notes Due 2046 -- Prior Rating: Ca -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Coliseum SPC, TACLs 2007-VI Segregated Portfolio US$40,000,000 Class I Floating Rate Notes Due 2046 -- Prior Rating: Caa2, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Coliseum SPC, TACLs 2007-VI Segregated Portfolio US$2,200,000 Subordinated Notes Due 2046 -- Prior Rating: Ca -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Cloverie plc Series 2007-12 EUR 30,000,000 Class A Notes Due 2010 -- Prior Rating: Caa3, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Cloverie plc Series 2007-13 EUR 35,000,000 Class A Notes Due 2010 -- Prior Rating: Caa3, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Gloucester SPC, acting for the account of Cheyenne 2007-I Segregated Portfolio US$20,000,000 Senior Class A Floating Rate Notes Due 2046 -- Prior Rating: Aa1, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C (ii) Transactions referencing ABX.HE 06-2 and ABX.HE 06-1: Notes and Class Description: Calculus MABS Resecuritization Trust, US$12,500,000 Series 2007-1 Units Due 2046 -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Calculus MABS Resecuritization Trust, US$125,000,000 Series 2007-2 Units Due 2046 -- Prior Rating: B2, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Calculus ABS Resecuritization Trust, US$7,000,000 Series 2007-1 Units Due 2046 -- Prior Rating: Aa3, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: Ca Notes and Class Description: Calculus ABS Resecuritization Trust, US$2,000,000 Series 2007-2 Units Due 2046 -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: Ca Notes and Class Description: Credit Default Swap Reference Number 07ML45110A US$6,000,000 Due 2046 -- Prior Rating: A2, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: Ca Notes and Class Description: Coliseum SPC, Ballista 2007-II Segregated Portfolio US$ 20,000,000 Floating Rate Notes Due 2046 -- Prior Rating: Ca -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Coliseum SPC, Ballista 2007-III Segregated Portfolio US$ 8,000,000 Floating Rate Notes Due 2046 -- Prior Rating: Ca -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Ixion plc 2006-7 Series 9 US$72,000,000 Floating Rate Portfolio Credit Linked Secured Notes Due 2038 -- Prior Rating: Ca -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Ixion plc 2006-7 Series 11 US$10,000,000 Floating Rate Portfolio Credit Linked Secured Notes Due 2038 -- Prior Rating: Ca -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Restructured Asset Certificates with Enhanced Returns, Series 2006-20AT US$40,500,000 Variable Certificate Due 2046 -- Prior Rating: Ca -- Prior Rating Date: March 3, 2008 -- Current Rating: C (iii) Transactions referencing ABX.HE 07-1, ABX.HE 06-2 and ABX.HE 06-1: Notes and Class Description: Coliseum SPC acting for the account of Neapolitan 2007-I Segregated Portfolio Class I Floating Rate Notes Due 2046 -- Prior Rating: Ba1, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C Notes and Class Description: Coliseum SPC acting for the account of Neapolitan 2007-I Segregated Portfolio Subordinated Notes Due 2046 -- Prior Rating: B1, on review for possible downgrade -- Prior Rating Date: March 3, 2008 -- Current Rating: C (iv) Transactions referencing ABX.HE 06-1: Notes and Class Description: AMP ABX 2006-1, Ltd. US$65,000,000 Notes Due 2036 -- Prior Rating: Aa3 -- Prior Rating Date: November 29, 2006 -- Current Rating: Aa3, on review for possible downgrade * Fitch Puts Ratings on 22 Hedge Fund CFOs Under Negative Watch --------------------------------------------------------------- Effective immediately, Fitch Ratings has placed 22 tranches from five hedge fund collateralized fund obligations on Rating Watch Negative, as: Man Glenwood Alternative Strategies II Ltd. -- $250,000,000 class A 'AAA' -- $40,000,000 class B 'AA'; -- $15,000,000 class C 'A'; -- $43,750,000 class D 'BBB'. Phenix CFO Ltd. -- EUR 60,000,000 class S 'AAA'; -- EUR 24,000,000 class M1 'AA'; -- EUR 15,000,000 class M2 'A'; -- EUR 21,000,000 class M3 'BBB'. RMF Four Seasons CFO Ltd. -- EUR 23,500,000 class S 'AAA'; -- EUR 18,800,000 class M1 'AA+'; -- EUR 11,750,000 class M2 'A'; -- EUR 16,450,000 class M3 'BBB'. Sciens CFO I Limited -- EUR 121,200,000 class A 'AAA'; -- EUR 21,000,000 class B 'AA'; -- EUR 13,900,000 class C 'A'; -- EUR 18,600,000 class D 'BBB+'; -- EUR 7,800,000 class E 'BB+'. Zoo HF 3 plc -- EUR 94,500,000 class A 'AAA'; -- EUR 8,000,000 class B 'AA'; -- EUR 6,500,000 class C 'A'; -- EUR 12,500,000 class D 'BBB'; -- EUR 5,500,000 class E 'BB'. The Negative Watch designations are primarily the result of the application of Fitch's revised market value structures criteria, published April 18, 2008. Fitch's current criteria state that MVS backed by less liquid asset types may not be eligible to receive ratings above 'A'. Hedge fund CFOs invest, either directly or indirectly, in underlying hedge fund LP interests, which may be classified as less liquid. As such, it is possible that the ratings on the senior tranches of these transactions may be capped at 'A'. Fitch is currently reassessing its prior model-based approach for analyzing HF CFOs, given the recent market environment. Fitch is also requesting that additional detailed information be provided on an ongoing basis from managers. Where managers are unable or unwilling to provide this additional information, Fitch may be forced to withdraw its ratings. Fitch expects to finalize its review of these transactions within the next 90 days. * S&P Cuts Ratings on 110 Tranches from 30 Cash Flow & Hybrid CDOs ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its ratings on 110 tranches from 30 U.S. cash flow and hybrid collateralized debt obligation transactions. S&P removed 61 of the lowered ratings from CreditWatch with negative implications. At the same time, S&P placed 15 additional ratings from eight transactions on CreditWatch negative. In addition, S&P affirmed three ratings from two transactions and removed them from CreditWatch negative. The ratings on 48 of the downgraded tranches are 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 have significant exposure to assets rated in the 'CCC' category. The 110 downgraded U.S. cash flow and hybrid tranches have a total issuance amount of $13.929 billion. Sixteen of the 30 affected transactions are mezzanine structured finance CDOs of asset-backed securities, which are collateralized in large part by mezzanine tranches of residential mortgage-backed securities and other SF securities. Eleven of the 30 transactions are high-grade SF CDOs of ABS, which were collateralized at origination primarily by 'AAA' through 'A' rated tranches of RMBS and other SF securities. The other three transactions are CDOs of CDOs that were collateralized at origination primarily by notes from other CDOs, as well as by tranches from RMBS and other SF transactions. The CDO downgrades reflect a number of factors, including credit deterioration and recent negative rating actions on U.S. subprime RMBS. In addition, S&P reviewed the ratings assigned to Parkridge Lane Structured Finance Special Opportunities CDO I Ltd. and Synthetic Residential Asset Hybrid CDO 2004-10 Ltd., and based on the current credit support available to the tranches, S&P left the ratings at their current levels. To date, including the CDO tranches listed and including actions on both publicly and confidentially rated tranches, S&P has lowered its ratings on 3,795 tranches from 864 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, 1,358 ratings from 461 transactions are currently on CreditWatch negative for the same reasons. In all, S&P has downgraded $439.050 billion of CDO issuance. Additionally, S&P's ratings on $36.836 billion in securities have not been lowered but are currently on CreditWatch negative, indicating a high likelihood of future downgrades. Rating Actions Rating ------ Transaction Class To From ----------- ----- -- ---- Aardvark ABS CDO 2007-1 A-1 CC B/Watch Neg Aardvark ABS CDO 2007-1 A-2 CC CCC-/Watch Neg Acacia CDO 9 Ltd A AA-/Watch Neg AAA/Watch Neg Acacia CDO 9 Ltd B BBB+/Watch Neg AA-/Watch Neg Acacia CDO 9 Ltd C BBB/Watch Neg A/Watch Neg Acacia CDO 9 Ltd D BB+/Watch Neg BBB/Watch Neg Adams Square Funding II Ltd. S CC CCC/Watch Neg Adams Square Funding II Ltd. A1 CC B/Watch Neg Altius II Funding Ltd. A-1 AA/Watch Neg AAA Altius II Funding Ltd. A-2 BBB+/Watch Neg AAA Altius II Funding Ltd. B B-/Watch Neg AA Altius II Funding Ltd. C CCC-/Watch Neg A/Watch Neg Altius II Funding Ltd. D CC BBB/Watch Neg Broderick CDO 2 Ltd A-1AD AA AA/Watch Neg Broderick CDO 2 Ltd A-1AT AA AA/Watch Neg Broderick CDO 2 Ltd A-1B CC CCC/Watch Neg Broderick CDO 2 Ltd A-2 CC CCC-/Watch Neg Broderick CDO 3 Ltd A-1 BB+/Watch Neg AA+/Watch Neg Broderick CDO 3 Ltd A-2 CC BB-/Watch Neg Cairn Mezz ABS CDO IV Ltd A1S CC BB-/Watch Neg Cairn Mezz ABS CDO IV Ltd A1J CC CCC+/Watch Neg Cairn Mezz ABS CDO IV Ltd A2 CC CCC-/Watch Neg C-BASS CBO XVI Ltd A CC BB+/Watch Neg C-BASS CBO XVI Ltd B CC BB/Watch Neg C-BASS CBO XVI Ltd C CC CCC+/Watch Neg C-BASS CBO XVI Ltd D CC CCC-/Watch Neg Citation High Grade ABS CDO I, Ltd. A-1 CCC-/Watch Neg B+/Watch Neg Citation High Grade ABS CDO A-2 CC CCC/Watch Neg I Ltd. Citation High Grade ABS CDO B-1 CC CCC-/Watch Neg I Ltd. Delphinus CDO 2007-1 Ltd S CC CCC/Watch Neg Delphinus CDO 2007-1 Ltd A-1A CC CCC/Watch Neg Delphinus CDO 2007-1 Ltd A-1B CC CCC/Watch Neg Delphinus CDO 2007-1 Ltd A-1C CC CCC-/Watch Neg Delphinus CDO 2007-1 Ltd A-2 CC CCC-/Watch Neg Dutch Hill Funding II Ltd A-2 BB+ BB+/Watch Neg Dutch Hill Funding II Ltd C CC B-/Watch Neg Dutch Hill Funding II Ltd C Loan CC B-/Watch Neg Dutch Hill Funding II Ltd D-1 CC CCC+/Watch Neg Dutch Hill Funding II Ltd D-2 CC CCC/Watch Neg Dutch Hill Funding II Ltd D-3 CC CCC-/Watch Neg Glacier Funding CDO I Ltd. Pref Shrs B/Watch Neg BB-/Watch Neg Glacier Funding CDO II Ltd. A-1NV AAA/Watch Neg AAA Glacier Funding CDO II Ltd. A-1V AAA/Watch Neg AAA Glacier Funding CDO II Ltd. A-2 AAA/Watch Neg AAA GSC ABS CDO 2006-1c Ltd A-1 CCC-/Watch Neg AA-/Watch Neg GSC ABS CDO 2006-1c Ltd A-2 CC A/Watch Neg GSC ABS CDO 2006-1c Ltd B CC BBB/Watch Neg GSC ABS CDO 2006-1c Ltd C CC BB+/Watch Neg GSC ABS CDO 2006-4u Ltd. A-S1VF CC BB/Watch Neg GSC ABS CDO 2006-4u Ltd. A1 CC B/Watch Neg GSC ABS CDO 2006-4u Ltd. A2 CC CCC/Watch Neg High Grade Structured Credit A-1 AAA/Watch Neg AAA CDO 2005-1 Ltd. High Grade Structured Credit A-2 AA/Watch Neg AAA CDO 2005-1 Ltd. High Grade Structured Credit B A+/Watch Neg AA + CDO 2005-1 Ltd. High Grade Structured Credit X A-/Watch Neg A CDO 2005-1 Ltd. High Grade Structured Credit C BBB-/Watch Neg A/Watch Neg CDO 2005-1 Ltd. Highgate ABS CDO Ltd A-1 CC BBB/Watch Neg Highgate ABS CDO Ltd A-2 CC BB/Watch Neg Highgate ABS CDO Ltd B CC B/Watch Neg Highgate ABS CDO Ltd C CC CCC-/Watch Neg HSPI Diversified CDO Fund II S BB+/Watch Neg A+/Watch Neg HSPI Diversified CDO Fund II A-1 CC CCC-/Watch Neg Kent Funding Ltd ABCP BBB+/NR/WatchNeg AA+/A- 1+/WatchNeg Kent Funding Ltd A-1 BBB+/Watch Neg AA+/Watch Neg Kent Funding Ltd A-2 B/Watch Neg BBB/Watch Neg Kent Funding Ltd B CCC-/Watch Neg B-/Watch Neg Laguna ABS CDO Ltd A1SB-1 AAA/Watch Neg AAA Laguna ABS CDO Ltd A1SB-2 AAA/Watch Neg AAA Laguna ABS CDO Ltd A1ST AAA/Watch Neg AAA Lakeside CDO II Ltd B B/Watch Neg A Lakeside CDO II Ltd C CC BBB/Watch Neg Libertas Preferred Funding V X CC CCC+/Watch Neg Libertas Preferred Funding V A-1 CC CCC+/Watch Neg Libertas Preferred Funding V A-2 CC CCC/Watch Neg Libertas Preferred Funding V A-3 CC CCC-/Watch Neg Longport Funding II Ltd. A1J AA-/Watch Neg AA/Watch Neg Longport Funding II Ltd. A2 BBB+/Watch Neg A+/Watch Neg Longport Funding II Ltd. A3 B/Watch Neg BBB-/Watch Neg Longport Funding II Ltd. B CC B/Watch Neg Longport Funding II Ltd. Combo Sec B/Watch Neg BBB-/Watch Neg Longport Funding II Ltd. Income Nts CC CCC-/Watch Neg Longport Funding Ltd A-1A AAA/Watch Neg AAA Longport Funding Ltd A-1B A+/Watch Neg AAA Longport Funding Ltd A-2-P** A+/Watch Neg AAA Longport Funding Ltd Part. Note BBB/Watch Neg AA + Longport Funding Ltd A-3 CCC-/Watch Neg A-/Watch Neg Longport Funding Ltd B CC BBB-/Watch Neg Longport Funding Ltd C CC BB+/Watch Neg Longport Funding Ltd D-1 CC B/Watch Neg Longport Funding Ltd D-2 CC B/Watch Neg Manasquan CDO 2005-1 Ltd. A-1LA BBB-/Watch Neg AAA/Watch Neg Manasquan CDO 2005-1 Ltd. A-1LB B/Watch Neg AA-/Watch Neg Manasquan CDO 2005-1 Ltd. A-2L CC BBB/Watch Neg Manasquan CDO 2005-1 Ltd. A-3L CC BB+/Watch Neg Manasquan CDO 2005-1 Ltd. B-1L CC CCC+/Watch Neg Manasquan CDO 2005-1 Ltd. B-2L CC CCC-/Watch Neg Nordic Valley 2007-1 CDO Ltd A-1 CC CCC-/Watch Neg Nordic Valley 2007-1 CDO Ltd A-X CC CCC-/Watch Neg Opus CDO I Ltd. A BB+/Watch Neg AA + Opus CDO I Ltd. B CCC-/Watch Neg A+/Watch Neg Opus CDO I Ltd. C CC BBB/Watch Neg Opus CDO I Ltd. D CC BB+/Watch Neg Opus CDO I Ltd. Combo Note CCC-/Watch Neg BBB/Watch Neg Opus CDO I Ltd. Sub Notes CC B-/Watch Neg Raffles Place Funding Ltd. CP Notes BBB+/A-2/ AAA/A-1+ Watch Neg Raffles Place Funding Ltd. A-1a BB/Watch Neg AAA/Watch Neg Raffles Place Funding Ltd. A-1b B/Watch Neg AAA/Watch Neg Raffles Place Funding Ltd. A-2 CCC-/Watch Neg AA/Watch Neg Raffles Place Funding Ltd. B CC A/Watch Neg Robeco High Grade CDO I Ltd A-1 AA/Watch Neg AA South Coast Funding V Ltd. B AA/Watch Neg AA South Coast Funding V Ltd. C-1 B+/Watch Neg BBB-/Watch Neg South Coast Funding V Ltd. C-2 B+/Watch Neg BBB-/Watch Neg South Coast Funding VI Ltd A-2 AAA/Watch Neg AAA South Coast Funding VI Ltd B A-/Watch Neg AA/Watch Neg South Coast Funding VI Ltd C B/Watch Neg BBB/Watch Neg Tricadia CDO 2006-5 Ltd B A AAA Tricadia CDO 2006-5 Ltd C BBB-/Watch Neg AA Tricadia CDO 2006-5 Ltd D CCC-/Watch Neg A/Watch Neg Tricadia CDO 2006-5 Ltd E CC BB+/Watch Neg Tricadia CDO 2006-5 Ltd F CC B-/Watch Neg Witherspoon CDO Funding Ltd. A-1 CP AAA/A-1+/ AAA/A-1+ Watch Neg Witherspoon CDO Funding Ltd. A-1 LT-a AAA/Watch Neg AAA Witherspoon CDO Funding Ltd. A-2 AAA/Watch Neg AAA Witherspoon CDO Funding Ltd. B A/Watch Neg A Witherspoon CDO Funding Ltd. C B+/Watch Neg BBB-/Watch Neg Witherspoon CDO Funding Ltd. D CCC-/Watch Neg B+/Watch Neg Witherspoon CDO Funding Ltd. Combo Secs CCC-/Watch Neg BBB+/Watch Neg Other Outstanding Ratings Transaction Class Rating ----------- ----- ------ Aardvark ABS CDO 2007-1 B CC Aardvark ABS CDO 2007-1 C CC Aardvark ABS CDO 2007-1 D CC Aardvark ABS CDO 2007-1 Sub Notes CC Adams Square Funding II, Ltd. A2 CC Adams Square Funding II, Ltd. A3 CC Adams Square Funding II, Ltd. B CC Adams Square Funding II, Ltd. C CC Adams Square Funding II, Ltd. D CC Adams Square Funding II, Ltd. E CC Broderick CDO 2 Ltd B CC Broderick CDO 2 Ltd C CC Broderick CDO 2 Ltd D CC Broderick CDO 2 Ltd E CC Broderick CDO 3 Ltd A-3 CC Broderick CDO 3 Ltd A-4 CC Broderick CDO 3 Ltd A-5 CC Broderick CDO 3 Ltd B CC Broderick CDO 3 Ltd C CC Broderick CDO 3 Ltd D CC Broderick CDO 3 Ltd E CC Cairn Mezz ABS CDO IV Ltd A3 CC Cairn Mezz ABS CDO IV Ltd B1 CC Cairn Mezz ABS CDO IV Ltd B2 CC Citation High Grade ABS CDO B-2 CC I, Ltd. Citation High Grade ABS CDO C CC I, Ltd. Citation High Grade ABS CDO D CC I, Ltd. Delphinus CDO 2007-1 Ltd A-3 CC Delphinus CDO 2007-1 Ltd B CC Delphinus CDO 2007-1 Ltd C CC Delphinus CDO 2007-1 Ltd D-1 CC Delphinus CDO 2007-1 Ltd D-2 CC Delphinus CDO 2007-1 Ltd D-3 CC Delphinus CDO 2007-1 Ltd E CC Dutch Hill Funding II Ltd B BB-/Watch Neg Glacier Funding CDO I, Ltd. A-1 AAA Glacier Funding CDO I, Ltd. A-2 AAA Glacier Funding CDO I, Ltd. B AA Glacier Funding CDO I, Ltd. C BBB/Watch Neg Glacier Funding CDO II, Ltd. B CC Glacier Funding CDO II, Ltd. C CC Glacier Funding CDO II, Ltd. D CC Glacier Funding CDO II, Ltd. Pref Shrs CC GSC ABS CDO 2006-4u, Ltd. A3 CC GSC ABS CDO 2006-4u, Ltd. B CC GSC ABS CDO 2006-4u, Ltd. C CC Highgate ABS CDO Ltd D CC HSPI Diversified CDO Fund A-2 CC II, Ltd. HSPI Diversified CDO Fund A-3 CC II, Ltd. HSPI Diversified CDO Fund A-4 CC II, Ltd. HSPI Diversified CDO Fund B-1 CC II, Ltd. HSPI Diversified CDO Fund C CC II, Ltd. HSPI Diversified CDO Fund Comp Oblig CC II, Ltd. HSPI Diversified CDO Fund D CC II, Ltd. Laguna ABS CDO Ltd A1J AAA/Watch Neg Laguna ABS CDO Ltd A2 AA/Watch Neg Laguna ABS CDO Ltd A3 BBB-/Watch Neg Laguna ABS CDO Ltd Class 1 Co BBB-/Watch Neg Laguna ABS CDO Ltd Class II C AAA Laguna ABS CDO Ltd Pref Share CCC/Watch Neg Lakeside CDO II Ltd A-1 AAA Libertas Preferred Funding V B CC Libertas Preferred Funding V C CC Libertas Preferred Funding V D CC Libertas Preferred Funding V E CC Longport Funding II, Ltd. A1S AAA Longport Funding Ltd A-1* AAA Longport Funding Ltd A-2-I* AAA Nordic Valley 2007-1 CDO Ltd A-2a CC Nordic Valley 2007-1 CDO Ltd A-2b CC Nordic Valley 2007-1 CDO Ltd B CC Nordic Valley 2007-1 CDO Ltd C CC Nordic Valley 2007-1 CDO Ltd D CC Nordic Valley 2007-1 CDO Ltd E CC Parkridge Lane Structured A-1 AAA Finance Special Opportunities CDO I Ltd Parkridge Lane Structured A-2 AAA Finance Special Opportunities CDO I Ltd Parkridge Lane Structured B AA Finance Special Opportunities CDO I Ltd Parkridge Lane Structured C A Finance Special Opportunities CDO I Ltd Parkridge Lane Structured D BBB Finance Special Opportunities CDO I Ltd Parkridge Lane Structured E BB/Watch Neg Finance Special Opportunities CDO I Ltd Robeco High Grade CDO I Ltd A-2 CC Robeco High Grade CDO I Ltd A-3 CC Robeco High Grade CDO I Ltd A-4 CC Robeco High Grade CDO I Ltd B CC Robeco High Grade CDO I Ltd C CC Robeco High Grade CDO I Ltd D CC South Coast Funding V Ltd. A-1 AAA South Coast Funding V Ltd. A-2 AAA South Coast Funding V Ltd. A-3 AAA South Coast Funding VI Ltd A-1 AAA Synthetic Residential Asset B AA/Watch Neg Hybrid CDO 2004-10, Ltd. Synthetic Residential Asset C A/Watch Neg Hybrid CDO 2004-10, Ltd. Synthetic Residential Asset D BBB/Watch Neg Hybrid CDO 2004-10, Ltd. * S&P Lowers Ratings on 48 Classes from 14 RMBS Transactions ------------------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on 48 classes from 14 residential mortgage-backed securities transactions backed by U.S. prime jumbo mortgage loan collateral issued in the first half of 2006. In addition, S&P affirmed its ratings on 154 classes from these transactions, as well as on 130 classes from 12 other U.S. prime jumbo transactions also issued in the first half of 2006. The downgrades reflect S&P's opinion that projected credit support for the affected classes is insufficient to maintain the previous ratings, given its current projected losses. S&P used the 1999 prime jumbo vintage as its benchmark default curve to forecast the performance of the 2006 vintage. The 1999 vintage experienced the most stress of any issuance year over the past 10 years in terms of foreclosures. S&P expects the losses in the 2006 vintage to significantly exceed those experienced in the 1999 vintage; however, in its opinion, the timing of the losses, and therefore the shape of the loss curve, is more likely to be similar to that of 1999 than to any subsequent year. S&P calculated individual transaction projections by multiplying the current foreclosure amount by the rate of change that the foreclosure curve forecasted for the upcoming periods. In addition, S&P assumed that 100% of the 90-plus-day delinquent loans and 50% of the 60-day delinquent loans would be in foreclosure within five months and added this amount to the current foreclosure amount for transactions for which this form of analysis provided a forecast more consistent with the current delinquency performance trends. Due to current market conditions, S&P is assuming that it will take approximately 18 months to liquidate loans in foreclosure and approximately eight months to liquidate loans categorized as real estate owned. S&P is now assuming a loss severity of 30% for U.S. prime jumbo RMBS transactions issued in 2006. Additionally, S&P assumed that the loans that are currently REO will be liquidated over the next eight months, and then it added the projected loss amounts from the REO liquidations to the projected losses from foreclosures. S&P estimated the lifetime projected losses by adding these projected losses to the actual losses that the transactions have experienced to date. Finally, S&P adjusted the lifetime projected losses figure upward, if necessary, to ensure that it adequately covered two times S&P's estimated losses on the loans presently in the delinquency pipeline. S&P's lifetime projected losses, as a percentage of the original pool balances, for these 26 U.S. RMBS transactions backed by prime jumbo collateral issued in 2006 are : Issuer Series Structure group Projected loss ------ ------ --------------- -------------- BofA 2006-3 one 0.65 BofA 2006-A one 1.06 CHL 2006-J2 one 1.22 CHL 2006-J3 one 0.55 First Horizon 2006-1 one 0.91 First Horizon 2006-2 one 0.68 First Horizon 2006-AR2 one 1.50 GMACM 2006-AR1 one 2.24 GMACM 2006-AR2 one 2.20 JPMorgan 2006-A2 II 0.10 MASTR 2006-1 one 0.60 MASTR 2006-2 one 0.85 Merrill MLCC 2006-1 one 0.61 Merrill MLCC 2006-2 one 0.25 RFMSI 2006-S2 one 1.11 RFMSI 2006-S4 one 1.06 RFMSI 2006-S5 one 1.24 Thornburg 2006-1 one 0.62 Thornburg 2006-2 one 0.66 Wachovia 2006-A one 0.86 WaMu 2006-AR2 one 0.83 Wells Fargo 2006-AR1 one 1.01 Wells Fargo 2006-AR2 one 1.17 Wells Fargo 2006-AR3 one 1.35 Wells Fargo 2006-AR4 one 0.99 Wells Fargo 2006-AR8 one 1.31 To maintain a rating higher than 'B', a class had to absorb losses in excess of the base case assumption S&P used in its analysis. For example, one prime jumbo class may have to withstand 150% of S&P's projected loss assumption in order to maintain a 'BB' rating, while a different class may have to withstand losses of approximately 200% of S&P's base case loss assumption to maintain a 'BBB' rating. Each class that has an affirmed 'AAA' rating can generally withstand approximately 350% of S&P's projected loss assumptions under its analysis. The rating affirmations reflect actual and projected credit enhancement percentages that S&P believes are sufficient to support the current ratings. Subordination provides credit support for the affected transactions. The underlying collateral for these deals consists of fixed- and adjustable- rate U.S. prime jumbo mortgage loans secured primarily by first liens on one- to four-family residential properties. Ratings Lowered Banc of America Funding 2006-3 Trust Series 2006-3 Rating ------ Class CUSIP To From ----- ----- -- ---- B-5 058931BW5 CC CCC Banc of America Mortgage 2006-A Trust Series 2006-A Rating ------ Class CUSIP To From ----- ----- -- ---- B-5 05949CSC1 CC CCC GMACM Mortgage Loan Trust 2006-AR1 Series 2006-AR1 Rating ------ Class CUSIP To From ----- ----- -- ---- M-1 36185MDU3 BBB AA M-2 36185MDV1 B- A M-3 36185MDW9 CCC BBB B-1 36185MDX7 CC BB B-2 36185MDY5 D CC GMACM Mortgage Loan Trust 2006-AR2 Series 2006-AR2 Rating ------ Class CUSIP To From ----- ----- -- ---- M-1 36185MFE7 BB AA M-2 36185MFF4 B A M-3 36185MFG2 CCC BBB B-1 36185MFH0 CC BB B-2 36185MFJ6 D B JPMorgan Mortgage Trust 2006-A2 Series 2006-A2 Rating ------ Class CUSIP To From ----- ----- -- ---- II-B-5 466247H55 CCC B MASTR Adjustable Rate Mortgage Trust 2006-2 Series 2006-2 Rating ------ Class CUSIP To From ----- ----- -- ---- B-1 576438AM7 BBB AA B-2 576438AN5 BB A B-3 576438AP0 B- BBB B-4 576438AQ8 CCC BB B-5 576438AR6 CC B MASTR Asset Securitization Trust 2006-1 Series 2006-1 Rating ------ Class CUSIP To From ----- ----- -- ---- B-1 57643MMX9 A AA B-2 57643MMY7 BB A B-3 57643MMZ4 B BBB B-4 57643MNA8 CCC BB B-5 57643MNB6 CC B Merrill Lynch Mortgage Investors Trust Series MLCC 2006-1 Series 2006-1 Rating ------ Class CUSIP To From ----- ----- -- ---- B-1 59020U4W2 B BB B-2 59020U4X0 CCC B Thornburg Mortgage Securities Trust 2006-1 Series 2006-1 Rating ------ Class CUSIP To From ----- ----- -- ---- B-2 885220KL6 BBB A B-3 885220KM4 B BBB B-4 885220KN2 CCC BB B-5 885220KP7 CC B Thornburg Mortgage Securities Trust 2006-2 Series 2006-2 Rating ------ Class CUSIP To From ----- ----- -- ---- B-3 885220LD3 BB BBB B-4 885220LE1 CCC BB B-5 885220LF8 CC B Wachovia Mortgage Loan Trust LLC Series 2006-A Trust Series 2006-A Rating ------ Class CUSIP To From ----- ----- -- ---- B-1 92977TAK8 A AA B-2 92977TAL6 BB A B-3 92977TAM4 B BBB B-4 92978DAA4 CCC B B-5 92978DAC0 CC CCC WaMu Mortgage Pass-Through Certificates Series 2006-AR2 Trust Series 2006-AR2 Rating ------ Class CUSIP To From ----- ----- -- ---- B-1 92925CDU3 BBB AA B-2 92925CDV1 BB A B-3 92925CDW9 B- BBB B-4 92925CDY5 CCC BB B-5 92925CDZ2 CC B Wells Fargo Mortgage Backed Securities 2006-AR1 Trust Series 2006-AR1 Rating ------ Class CUSIP To From ----- ----- -- ---- B-2 94983JAK8 BBB- A B-3 94983JAL6 B- BBB B-4 94983JAM4 CCC B B-5 94983JAN2 CC CCC Wells Fargo Mortgage Backed Securities 2006-AR2 Trust Series 2006-AR2 Rating ------ Class CUSIP To From ----- ----- -- ---- B-10 94983KAU3 CCC B B-11 94983KAV1 CC CCC Ratings Affirmed Banc of America Funding 2006-3 Trust Series 2006-3 Class CUSIP Rating ----- ----- ------ 1-A-1 058931AB2 AAA 1-A-2 058931AC0 AAA 2-A-1 058931AD8 AAA 2-A-2 058931AE6 AAA 3-A-1 058931AF3 AAA 3-A-2 058931AG1 AAA 4-A-1 058931AH9 AAA 4-A-2 058931AJ5 AAA 4-A-3 058931AK2 AAA 4-A-4 058931AL0 AAA 4-A-5 058931AM8 AAA 4-A-6 058931AN6 AAA 4-A-7 058931AP1 AAA 4-A-8 058931AQ9 AAA 4-A-9 058931AR7 AAA 4-A-10 058931AS5 AAA 4-A-11 058931AT3 AAA 4-A-12 058931AU0 AAA 4-A-13 058931AV8 AAA 4-A-14 058931AW6 AAA 4-A-15 058931AX4 AAA 4-A-16 058931AY2 AAA 4-A-17 058931AZ9 AAA 4-A-18 058931BA3 AAA 4-A-19 058931BB1 AAA 4-A-20 058931BC9 AAA 5-A-1 058931BD7 AAA 5-A-2 058931BE5 AAA 5-A-3 058931BF2 AAA 5-A-4 058931BG0 AAA 5-A-5 058931BH8 AAA 5-A-6 058931BJ4 AAA 5-A-7 058931BK1 AAA 5-A-8 058931BL9 AAA 5-A-9 058931BM7 AAA 6-A-1 058931BN5 AAA X-IO 058931BP0 AAA X-PO 058931BQ8 AAA M 058931BR6 AA Banc of America Mortgage 2006-A Trust Series 2006-A Class CUSIP Rating ----- ----- ------ 1-A-1 05949CRP3 AAA 1-A-2 05949CRQ1 AAA 2-A-1 05949CRS7 AAA 2-A-2 05949CRT5 AAA 3-A-1 05949CRU2 AAA 3-A-2 05949CRV0 AAA 4-A-1 05949CRW8 AAA 4-A-2 05949CRX6 AAA CHL Mortgage Pass-Through Trust 2006-J2 Series 2006-J2 Class CUSIP Rating ----- ----- ------ 1-A-1 126694G93 AAA 1-A-2 126694H27 AAA 1-A-3 126694H35 AAA 1-A-4 126694H43 AAA 1-A-5 126694H50 AAA 1-A-6 126694H68 AAA 1-A-7 126694H76 AAA 1-A-8 126694H84 AAA X 126694H92 AAA PO 126694J25 AAA CHL Mortgage Pass-Through Trust 2006-J3 Series 2006-J3 Class CUSIP Rating ----- ----- ------ A-1 125433AA0 AAA A-2 125433AB8 AAA A-3 125433AC6 AAA A-4 125433AD4 AAA X 125433AF9 AAA PO 125433AG7 AAA First Horizon Mortgage Pass-Through Trust 2006-1 Series 2006-1 Class CUSIP Rating ----- ----- ------ I-A-1 32051GZ81 AAA I-A-2 32051GZ99 AAA I-A-3 32051G2A2 AAA I-A-4 32051G2B0 AAA I-A-5 32051G2C8 AAA I-A-6 32051G2D6 AAA I-A-7 32051G2E4 AAA I-A-8 32051G2F1 AAA I-A-9 32051G2G9 AAA I-A-10 32051G2H7 AAA I-A-11 32051G2J3 AAA I-A-PO 32051G2K0 AAA II-A-1 32051G2M6 AAA II-A-PO 32051G2N4 AAA First Horizon Mortgage Pass Through Trust 2006-2 Series 2006-2 Class CUSIP Rating ----- ----- ------ I-A-1 32052LAA1 AAA I-A-2 32052LAB9 AAA I-A-3 32052LAC7 AAA I-A-4 32052LAD5 AAA I-A-5 32052LAE3 AAA I-A-6 32052LAF0 AAA I-A-7 32052LAG8 AAA I-A-8 32052LAH6 AAA I-A-9 32052LAJ2 AAA I-A-10 32052LAK9 AAA I-A-11 32052LAL7 AAA I-A-12 32052LAM5 AAA I-A-13 32052LAN3 AAA I-A-14 32052LAP8 AAA I-A-15 32052LAQ6 AAA I-A-16 32052LAZ6 AAA I-A-PO 32052LBA0 AAA II-A-1 32052LAR4 AAA II-A-PO 32052LAS2 AAA First Horizon Mortgage Pass-Through Trust 2006-AR2 Series 2006-AR2 Class CUSIP Rating ----- ----- ------ I-A-1 32052KAA3 AAA II-A-1 32052KAB1 AAA III-A-1 32052KAD7 AAA IV-A-1 32052KAE5 AAA A-M 32052KAF2 AAA GMACM Mortgage Loan Trust 2006-AR1 Series 2006-AR1 Class CUSIP Rating ----- ----- ------ 1-A-1 36185MDN9 AAA 1-A-2 36185MDP4 AAA 2-A-1 36185MDQ2 AAA 2-A-2 36185MDR0 AAA 3-A-1 36185MDS8 AAA 3-A-2 36185MDT6 AAA GMACM Mortgage Loan Trust 2006-AR2 Series 2006-AR2 Class CUSIP Rating ----- ----- ------ 1-A-1 36185MET5 AAA 1-A-2 36185MEU2 AAA 2-A-1 36185MEV0 AAA 2-A-2 36185MEW8 AAA 3-A-1 36185MEX6 AAA 3-A-2 36185MEY4 AAA 4-A-1 36185MEZ1 AAA 4-A-2 36185MFA5 AAA 5-A-1A 36185MFB3 AAA 5-A-1B 36185MFC1 AAA 5-A-2 36185MFD9 AAA JPMorgan Mortgage Trust 2006-A2 Series 2006-A2 Class CUSIP Rating ----- ----- ------ 4-A-1 466247K51 AAA 4-A-2 466247K69 AAA 5-A-1 466247K77 AAA 5-A-2 466247K85 AAA 5-A-3 466247K93 AAA 5-A-4 466247L27 AAA II-B-1 466247L68 AA II-B-2 466247L76 A II-B-3 466247L84 BBB II-B-4 466247H48 BB MASTR Adjustable Rate Mortgage Trust 2006-2 Series 2006-2 Class CUSIP Rating ----- ----- ------ 1-A-1 576438AA3 AAA 1-A-2 576438AB1 AAA 2-A-1 576438AC9 AAA 3-A-1 576438AD7 AAA 3-A-2 576438AE5 AAA 4-A-1 576438AF2 AAA 4-A-2 576438AG0 AAA 5-A-1 576438AH8 AAA 5-A-2 576438AJ4 AAA MASTR Asset Securitization Trust 2006-1 Series 2006-1 Class CUSIP Rating ----- ----- ------ 1-A-1 57643MLX0 AAA 1-A-2 57643MLY8 AAA 1-A-3 57643MLZ5 AAA 1-A-4 57643MMA9 AAA 1-A-5 57643MMB7 AAA 1-A-6 57643MMC5 AAA 1-A-7 57643MMD3 AAA 1-A-8 57643MME1 AAA 1-A-9 57643MMF8 AAA 1-A-11 57643MMH4 AAA 1-A-12 57643MMJ0 AAA 1-A-13 57643MMK7 AAA 1-A-14 57643MML5 AAA 2-A-1 57643MMM3 AAA 2-A-2 57643MMN1 AAA 3-A-1 57643MMP6 AAA 3-A-2 57643MNE0 AAA 4-A-1 57643MMQ4 AAA 15-A-X 57643MMT8 AAA 30-A-X 57643MMU5 AAA 15-PO 57643MMV3 AAA 30-PO 57643MMW1 AAA Merrill Lynch Mortgage Investors Trust Series MLCC 2006-1 Series 2006-1 Class CUSIP Rating ----- ----- ------ I-A 59020U4R3 AAA II-A-1 59020U4S1 AAA II-A-2 59020U4T9 AAA M-1 59020U4U6 AA M-2 59020U4V4 A M-3 59020U5A9 BBB Merrill Lynch Mortgage Investors Trust Series MLCC 2006-2 Series 2006-2 Class CUSIP Rating ----- ----- ------ I-A 590219AD3 AAA II-A 590219AE1 AAA III-A 590219AF8 AAA IV-A 590219AG6 AAA M-1 590219AJ0 AA M-2 590219AK7 A M-3 590219AL5 BBB B-1 590219AA9 BB B-2 590219AB7 B RFMSI Series 2006-S2 Trust Series 2006-S2 Class CUSIP Rating ----- ----- ------ A-1 76111XL76 AAA A-2 76111XL84 AAA A-3 76111XL92 AAA A-4 76111XM26 AAA A-5 76111XM34 AAA A-6 76111XM42 AAA A-7 76111XM59 AAA A-P 76111XM67 AAA A-V 76111XM75 AAA RFMSI Series 2006-S4 Trust Series 2006-S4 Class CUSIP Rating ----- ----- ------ A-1 762010AA4 AAA A-2 762010AB2 AAA A-3 762010AC0 AAA A-4 762010AD8 AAA A-5 762010AE6 AAA A-6 762010AF3 AAA A-7 762010AG1 AAA A-9 762010AJ5 AAA A-10 762010AK2 AAA A-P 762010AL0 AAA A-V 762010AM8 AAA RFMSI Series 2006-S5 Trust Series 2006-S5 Class CUSIP Rating ----- ----- ------ A-1 74957EAA5 AAA A-2 74957EAB3 AAA A-3 74957EAC1 AAA A-4 74957EAD9 AAA A-5 74957EAE7 AAA A-6 74957EAF4 AAA A-7 74957EAG2 AAA A-9 74957EAJ6 AAA A-10 74957EAK3 AAA A-11 74957EAL1 AAA A-12 74957EAM9 AAA A-13 74957EAN7 AAA A-14 74957EAP2 AAA A-15 74957EAQ0 AAA A-16 74957EAR8 AAA A-17 74957EAS6 AAA A-18 74957EAT4 AAA A-P 74957EAW7 AAA A-V 74957EAX5 AAA Thornburg Mortgage Securities Trust 2006-1 Series 2006-1 Class CUSIP Rating ----- ----- ------ A-1 885220KE2 AAA A-2 885220KF9 AAA A-3 885220KG7 AAA A-X 885220KH5 AAA B-1 885220KK8 AA Thornburg Mortgage Securities Trust 2006-2 Series 2006-2 Class CUSIP Rating ----- ----- ------ A-1-A 885220KS1 AAA A-1-B 885220KT9 AAA A-1-C 885220KU6 AAA A-2-A 885220KV4 AAA A-2-B 885220KW2 AAA A-2-C 885220KX0 AAA A-X-1 885220KY8 AAA A-X-2 885220KZ5 AAA B-1 885220LB7 AA B-2 885220LC5 A Wachovia Mortgage Loan Trust LLC Series 2006-A Trust Series 2006-A Class CUSIP Rating ----- ----- ------ 1-A1 92977TAA0 AAA 1-A2 92977TAB8 AAA 2-A1 92977TAC6 AAA 2-A2 92977TAD4 AAA 3-A1 92977TAE2 AAA 3-A2 92977TAF9 AAA 4-A1 92977TAG7 AAA 4-A2 92977TAH5 AAA WaMu Mortgage Pass-Through Certificates Series 2006-AR2 Trust Series 2006-AR2 Class CUSIP Rating ----- ----- ------ 1-A1 92925CDQ2 AAA 1-A2 92925CDR0 AAA 2-A1 92925CDS8 AAA 2-A2 92925CDT6 AAA Wells Fargo Mortgage Backed Securities 2006-AR1 Trust Series 2006-AR1 Class CUSIP Rating ----- ----- ------ I-A-1 94983JAA0 AAA II-A-1 94983JAC6 AAA II-A-2 94983JAD4 AAA II-A-3 94983JAE2 AAA II-A-4 94983JAF9 AAA II-A-5 94983JAG7 AAA II-A-6 94983JAH5 AAA B-1 94983JAJ1 AA Wells Fargo Mortgage Backed Securities 2006-AR2 Trust Series 2006-AR2 Class CUSIP Rating ----- ----- ------ I-A-1 94983KAA7 AAA II-A-1 94983KAC3 AAA II-A-2 94983KAD1 AAA II-A-3 94983KAE9 AAA II-A-4 94983KAF6 AAA II-A-5 94983KAG4 AAA II-A-6 94983KAH2 AAA II-A-IO 94983KAJ8 AAA Wells Fargo Mortgage Backed Securities 2006-AR3 Trust Series 2006-AR3 Class CUSIP Rating ----- ----- ------ A-1 94983GAA6 AAA A-2 94983GAB4 AAA A-3 94983GAC2 AAA A-4 94983GAD0 AAA A-5 94983GAE8 AAA Wells Fargo Mortgage Backed Securities 2006-AR4 Trust Series 2006-AR4 Class CUSIP Rating ----- ----- ------ I-A-1 94983PAA6 AAA I-A-2 94983PAB4 AAA II-A-1 94983PAC2 AAA II-A-2 94983PAD0 AAA II-A-3 94983PAE8 AAA II-A-4 94983PAF5 AAA II-A-5 94983PAG3 AAA II-A-6 94983PAH1 AAA Wells Fargo Mortgage Backed Securities 2006-AR8 Trust Series 2006-AR8 Class CUSIP Rating ----- ----- ------ I-A-1 94983VAA3 AAA I-A-2 94983VAB1 AAA I-A-3 94983VAC9 AAA I-A-4 94983VAD7 AAA II-A-1 94983VAF2 AAA II-A-2 94983VAG0 AAA II-A-3 94983VAH8 AAA II-A-4 94983VAJ4 AAA II-A-5 94983VAK1 AAA II-A-6 94983VAL9 AAA II-A-7 94983VAM7 AAA III-A-1 94983VAN5 AAA III-A-2 94983VAP0 AAA III-A-3 94983VAQ8 AAA B-5 94983VAW5 CC * S&P Puts 884 Ratings on 117 US RMBS Under Negative CreditWatch ---------------------------------------------------------------- Standard & Poor's Ratings Services placed 884 ratings on 117 U.S. residential mortgage-backed securities transactions backed by U.S. Alternative-A mortgage collateral issued during 2006 and 2007 on CreditWatch with negative implications. Most of these Alt-A transactions are collateralized by negatively amortizing adjustable-rate mortgages. The CreditWatch placements reflect an increase in S&P's loss severity assumptions for these transactions, as outlined in "Standard & Poor's Revises U.S. Subprime, Prime, And Alternative-A RMBS Loss Assumptions," originally published on July 29, 2008. S&P has raised its loss severity assumptions for 2006 and 2007 Alt-A hybrid and neg-am transactions to 40% from 35% based on S&P's belief that continued foreclosures, distressed sales, an increase in carrying costs for properties in inventory, costs associated with foreclosures, and further declines in home sales will depress prices further and push loss severities higher than it had previously assumed. Additionally, there has been a persistent rise in the level of delinquencies among the Alt-A mortgage loans supporting these transactions. As of the August 2008 distribution, severely delinquent loans for the affected transactions made up an average 14.45% of the current pool balances. This represents an increase of almost 50% since May 2008. This poor performance trend, along with the increase in S&P's loss severity assumptions, prompted S&P to place the ratings on these transactions on CreditWatch negative. S&P will use the loss projections outlined in "Revised Projected Losses For 2006/First- Half 2007 U.S. Alt-A Short-Reset Hybrid And Neg-Am RMBS," published Aug. 20, 2008, for these transactions. In the aggregate, the affected classes represent an original par amount of approximately $19.37 billion. The current balance of the certificates with ratings placed on CreditWatch is $16.47 billion. S&P expects to review the affected classes and resolve the CreditWatch placements over the next several weeks. Creditwatch Actions Alliance Bancorp Trust 2007-OA1 Series 2007-OA1 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 01852TAC7 AAA/Watch Neg AAA M-1 01852TAD5 AA+/Watch Neg AA+ M-2 01852TAE3 AA/Watch Neg AA M-3 01852TAF0 AA-/Watch Neg AA- M-4 01852TAG8 A+/Watch Neg A+ M-5 01852TAH6 A/Watch Neg A M-6 01852TAJ2 A-/Watch Neg A- M-7 01852TAK9 BBB/Watch Neg BBB M-8 01852TAL7 BBB-/Watch Neg BBB- M-9 01852TAM5 BB+/Watch Neg BB+ Alternative Loan Trust 2006-J7 Series 2006-J7 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A-1 23244FAV6 AAA/Watch Neg AAA 1-A-2 23244FAW4 AAA/Watch Neg AAA 1-A-3 23244FAX2 AAA/Watch Neg AAA 1-A-4 23244FAY0 AAA/Watch Neg AAA 1-A-5 23244FAZ7 AAA/Watch Neg AAA 1-A-6 23244FBA1 AAA/Watch Neg AAA 1-A-7 23244FBB9 AAA/Watch Neg AAA 1-A-8 23244FBC7 AAA/Watch Neg AAA 1-A-9 23244FBD5 AAA/Watch Neg AAA 1-A-10 23244FBE3 AAA/Watch Neg AAA 1-A-11 23244FBF0 AAA/Watch Neg AAA 1-A-12 23244FBG8 AAA/Watch Neg AAA 1-A-13 23244FBH6 AAA/Watch Neg AAA 1-PO 23244FBJ2 AAA/Watch Neg AAA 1-M 23244FBL7 AA/Watch Neg AA 1-B-1 23244FBM5 A/Watch Neg A 1-B-2 23244FBN3 BBB/Watch Neg BBB 1-B-3 23244FBP8 B/Watch Neg B 2-A-2 23244FAB0 AAA/Watch Neg AAA 2-X-2B 23244FAU8 AAA/Watch Neg AAA 2-M-1 23244FAE4 AA+/Watch Neg AA+ 2-M-2 23244FAF1 AA/Watch Neg AA 2-M-3 23244FAG9 AA-/Watch Neg AA- 2-M-4 23244FAH7 A+/Watch Neg A+ 2-M-5 23244FAJ3 BBB/Watch Neg BBB 2-M-6 23244FAK0 BB/Watch Neg BB 2-M-7 23244FAL8 B/Watch Neg B Alternative Loan Trust 2006-OA1 Series 2006-OA1 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A-3 126694ZZ4 AAA/Watch Neg AAA 2-A-3 126694A57 AAA/Watch Neg AAA M-1 126694A65 AA+/Watch Neg AA+ M-2 126694A73 BBB/Watch Neg BBB M-3 126694A81 BB/Watch Neg BB M-4 126694A99 B/Watch Neg B Alternative Loan Trust 2006-OA10 Series 2006-OA10 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A-3 02146QBA0 AAA/Watch Neg AAA 2-A-3 02146QBC6 AAA/Watch Neg AAA 3-A-3 02146QBE2 AAA/Watch Neg AAA 4-A-3 02146QBG7 AAA/Watch Neg AAA M-1 02146QAL7 BBB/Watch Neg BBB M-2 02146QAM5 BB/Watch Neg BB M-3 02146QAN3 B/Watch Neg B Alternative Loan Trust 2006-OA12 Series 2006-OA12 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 23243AAE6 BBB-/Watch Neg BBB- M-1 23243AAH9 B/Watch Neg B Alternative Loan Trust 2006-OA14 Series 2006-OA14 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A-3 02146SAC3 AAA/Watch Neg AAA 2-A-3 02146SAF6 AAA/Watch Neg AAA 3-A-2 02146SAH2 AAA/Watch Neg AAA M-1 02146SAM1 AA+/Watch Neg AA+ M-4 02146SAQ2 A+/Watch Neg A+ M-5 02146SAR0 A/Watch Neg A M-6 02146SAS8 BBB/Watch Neg BBB M-7 02146SAT6 BB/Watch Neg BB M-8 02146SAU3 B/Watch Neg B M-2 02146SAN9 AA/Watch Neg AA M-3 02146SAP4 AA-/Watch Neg AA- Alternative Loan Trust 2006-OA17 Series 2006-OA17 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A3 12668PAJ1 A/Watch Neg A 2-A-2 12668PAM4 A/Watch Neg A M-1 12668PAP7 BB/Watch Neg BB M-2 12668PAQ5 B/Watch Neg B M-3 12668PAR3 B/Watch Neg B Alternative Loan Trust 2006-OA18 Series 2006-OA18 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 23244GAF9 AAA/Watch Neg AAA M-1 23244GAG7 AA+/Watch Neg AA+ M-2 23244GAH5 A/Watch Neg A M-3 23244GAJ1 BBB/Watch Neg BBB M-4 23244GAK8 BB/Watch Neg BB M-5 23244GAL6 B/Watch Neg B Alternative Loan Trust 2006-OA19 Series 2006-OA19 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3B 12668RAD0 AAA/Watch Neg AAA A-5 12668RAF5 AAA/Watch Neg AAA M-1 12668RAJ7 A/Watch Neg A M-2 12668RAK4 BB/Watch Neg BB M-3 12668RAL2 BB/Watch Neg BB M-4 12668RAM0 BB/Watch Neg BB Alternative Loan Trust 2006-OA21 Series 2006-OA21 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 23245QAC3 AAA/Watch Neg AAA M-1 23245QAF6 A/Watch Neg A M-2 23245QAG4 BB/Watch Neg BB M-3 23245QAH2 B/Watch Neg B M-4 23245QAJ8 B/Watch Neg B M-5 23245QAK5 B/Watch Neg B Alternative Loan Trust 2006-OA22 Series 2006-OA22 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 23245PAC5 AAA/Watch Neg AAA M-1 23245PAE1 AA+/Watch Neg AA+ M-2 23245PAF8 AA/Watch Neg AA M-3 23245PAG6 A/Watch Neg A M-4 23245PAH4 BBB/Watch Neg BBB M-5 23245PAJ0 BB/Watch Neg BB M-6 23245PAK7 B/Watch Neg B Alternative Loan Trust 2006-OA3 Series 2006-OA3 Rating ------ Class CUSIP To From ----- ----- -- ---- 1A3 12668BB69 AAA/Watch Neg AAA 2A2 12668BB85 AAA/Watch Neg AAA 2A3 12668BB93 AAA/Watch Neg AAA M1 12668BC43 AA+/Watch Neg AA+ M2 12668BC50 BB/Watch Neg BB M3 12668BC68 B/Watch Neg B M4 12668BC76 B/Watch Neg B Alternative Loan Trust 2006-OA7 Series 2006-OA7 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A-1 02146BAA4 AAA/Watch Neg AAA 1-A-4 02146BAD8 AAA/Watch Neg AAA 2-A-2 02146BAG1 AAA/Watch Neg AAA 2-A-3 02146BAH9 AAA/Watch Neg AAA 3-A-1 02146BAK2 AAA/Watch Neg AAA 3-A-2 02146BAL0 AAA/Watch Neg AAA Alternative Loan Trust 2006-OA9 Series 2006-OA9 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A-2 02146YAB2 AAA/Watch Neg AAA 2-A-2 02146YAE6 AAA/Watch Neg AAA 2-A-3 02146YAF3 AAA/Watch Neg AAA M-1 02146YAL0 A/Watch Neg A M-2 02146YAM8 BB/Watch Neg BB M-3 02146YAN6 B/Watch Neg B Alternative Loan Trust 2007-OA2 Series 2007-OA2 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A-3 02149LAC5 AAA/Watch Neg AAA 2-A-2 02149LAF8 AAA/Watch Neg AAA 2-A-3 02149LAG6 AAA/Watch Neg AAA M-1 02149LAK7 A/Watch Neg A M-2 02149LAL5 BB/Watch Neg BB M-3 02149LAM3 BB-/Watch Neg BB- Alternative Loan Trust 2007-OA3 Series 2007-OA3 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A-3 02150TAC4 AAA/Watch Neg AAA 2-A-3 02150TAF7 AAA/Watch Neg AAA M-1 02150TAK6 AA+/Watch Neg AA+ M-2 02150TAL4 AA/Watch Neg AA M-3 02150TAM2 A/Watch Neg A M-4 02150TAN0 BBB+/Watch Neg BBB+ M-5 02150TAP5 BBB/Watch Neg BBB M-6 02150TAQ3 BB+/Watch Neg BB+ M-7 02150TAR1 BB/Watch Neg BB Alternative Loan Trust 2007-OA4 Series 2007-OA4 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 02150DAC9 AAA/Watch Neg AAA M-1 02150DAD7 AA+/Watch Neg AA+ M-2 02150DAE5 AA/Watch Neg AA M-3 02150DAF2 AA-/Watch Neg AA- M-4 02150DAG0 A+/Watch Neg A+ M-5 02150DAH8 A-/Watch Neg A- M-6 02150DAJ4 BBB+/Watch Neg BBB+ M-7 02150DAK1 BB/Watch Neg BB M-8 02150DAL9 B/Watch Neg B Alternative Loan Trust 2007-OA7 Series 2007-OA7 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 126680AF4 AAA/Watch Neg AAA M-1 126680AH0 AA+/Watch Neg AA+ M-2 126680AJ6 AA/Watch Neg AA M-3 126680AK3 AA-/Watch Neg AA- M-4 126680AL1 A+/Watch Neg A+ M-5 126680AM9 BBB-/Watch Neg BBB- M-6 126680AN7 BB+/Watch Neg BB+ M-7 126680AP2 BB/Watch Neg BB Alternative Loan Trust 2007-OA8 Series 2007-OA8 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A-3 02148GAC7 AAA/Watch Neg AAA 2-A-3 02148GAF0 AAA/Watch Neg AAA M-1 02148GAJ2 AA+/Watch Neg AA+ M-2 02148GAK9 A/Watch Neg A M-3 02148GAL7 BBB+/Watch Neg BBB+ M-4 02148GAM5 BBB/Watch Neg BBB M-5 02148GAN3 BB+/Watch Neg BB+ M-6 02148GAP8 BB/Watch Neg BB M-7 02148GAQ6 B/Watch Neg B Alternative Loan Trust 2007-OH1 Series 2007-OH1 Rating ------ Class CUSIP To From ----- ----- -- ---- M-1 02150KAD1 AA+/Watch Neg AA+ M-2 02150KAE9 BBB/Watch Neg BBB M-3 02150KAF6 BB/Watch Neg BB M-4 02150KAG4 B+/Watch Neg B+ M-5 02150KAH2 B/Watch Neg B M-6 02150KAJ8 B-/Watch Neg B- Alternative Loan Trust 2007-OH2 Series 2007-OH2 Rating ------ Class CUSIP To From ----- ----- -- ---- A-2-B 02151RAQ6 AAA/Watch Neg AAA M-1 02151RAE3 AA+/Watch Neg AA+ M-2 02151RAF0 AA/Watch Neg AA M-3 02151RAG8 AA-/Watch Neg AA- M-4 02151RAH6 A+/Watch Neg A+ M-5 02151RAJ2 A-/Watch Neg A- M-6 02151RAK9 BBB/Watch Neg BBB M-7 02151RAL7 BB+/Watch Neg BB+ M-8 02151RAM5 BB/Watch Neg BB American Home Mortgage Assets Trust 2006-2 Series 2006-2 Rating ------ Class CUSIP To From ----- ----- -- ---- M-1 02660XAJ3 BBB/Watch Neg BBB M-2 02660XAK0 BB/Watch Neg BB M-3 02660XAL8 B/Watch Neg B American Home Mortgage Assets Trust 2006-3 Series 2006-3 Rating ------ Class CUSIP To From ----- ----- -- ---- I-A-3 02660UAD2 A/Watch Neg A II-A-3-1 02660UAH3 A/Watch Neg A II-A-3-2 02660UAJ9 A/Watch Neg A III-A-3-1 02660UAN0 A/Watch Neg A III-A-3-2 02660UAP5 A/Watch Neg A M-1 02660UAQ3 BB/Watch Neg BB M-2 02660UAR1 B/Watch Neg B M-3 02660UAS9 B/Watch Neg B American Home Mortgage Assets Trust 2006-4 Series 2006-4 Rating ------ Class CUSIP To From ----- ----- -- ---- I-A-2-2 02660LAD2 AAA/Watch Neg AAA I-A-3 02660LAE0 A/Watch Neg A II-A-3 02660LAH3 A/Watch Neg A M-1 02660LAJ9 BB/Watch Neg BB M-2 02660LAK6 B/Watch Neg B American Home Mortgage Assets Trust 2006-5 Series 2006-5 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3-1 02660KAC6 AAA/Watch Neg AAA A-3-2 02660KAD4 AAA/Watch Neg AAA M-1 02660KAE2 A/Watch Neg A M-2 02660KAF9 BBB/Watch Neg BBB M-3 02660KAG7 BB/Watch Neg BB M-4 02660KAH5 B/Watch Neg B American Home Mortgage Assets Trust 2006-6 Series 2006-6 Rating ------ Class CUSIP To From ----- ----- -- ---- A1-C 008684AC6 BBB/Watch Neg BBB A2-B 008684AE2 BBB/Watch Neg BBB M-1 008684AG7 B/Watch Neg B American Home Mortgage Assets Trust 2007-1 Series 2007-1 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 02660BAC6 AAA/Watch Neg AAA M-1 02660BAD4 AA/Watch Neg AA M-2 02660BAE2 AA-/Watch Neg AA- M-3 02660BAF9 A+/Watch Neg A+ M-5 02660BAH5 BB+/Watch Neg BB+ M-6 02660BAJ1 BB/Watch Neg BB M-4 02660BAG7 BBB/Watch Neg BBB American Home Mortgage Assets Trust 2007-2 Series 2007-2 Rating ------ Class CUSIP To From ----- ----- -- ---- M-1 026930AD9 AA+/Watch Neg AA+ M-2 026930AE7 AA/Watch Neg AA M-3 026930AF4 AA-/Watch Neg AA- M-4 026930AG2 A+/Watch Neg A+ M-5 026930AH0 A/Watch Neg A M-6 026930AJ6 A-/Watch Neg A- M-7 026930AK3 BB+/Watch Neg BB+ M-8 026930AL1 B/Watch Neg B American Home Mortgage Assets Trust 2007-4 Series 2007-4 Rating ------ Class CUSIP To From ----- ----- -- ---- M1 026934AF6 AA+/Watch Neg AA+ M2 026934AG4 AA/Watch Neg AA M3 026934AH2 AA/Watch Neg AA M4 026934AJ8 A-/Watch Neg A- M5 026934AK5 BBB/Watch Neg BBB American Home Mortgage Assets Trust 2007-5 Series 2007-5 Rating ------ Class CUSIP To From ----- ----- -- ---- M-2 026936AH7 BBB/Watch Neg BBB M-3 026936AJ3 BBB-/Watch Neg BBB- M-4 026936AK0 BB/Watch Neg BB M-5 026936AL8 B/Watch Neg B American Home Mortgage Investment Trust 2007-1 Series 2007-1 Rating ------ Class CUSIP To From ----- ----- -- ---- M-2 026932AH6 BB/Watch Neg BB M-3 026932AJ2 BB-/Watch Neg BB- M-4 026932AK9 B+/Watch Neg B+ M-5 026932AL7 B/Watch Neg B M-6 026932AM5 B-/Watch Neg B- Bear Stearns Mortgage Funding Trust 2007-AR1 Series 2007-AR1 Rating ------ Class CUSIP To From ----- ----- -- ---- I-A-3 07401MAC5 AAA/Watch Neg AAA I-B-1 07401MAJ0 AA+/Watch Neg AA+ I-B-2 07401MAK7 AA/Watch Neg AA I-B-3 07401MAL5 A-/Watch Neg A- I-B-4 07401MAM3 BBB/Watch Neg BBB I-B-5 07401MAN1 BBB-/Watch Neg BBB- I-B-6 07401MAP6 BB+/Watch Neg BB+ I-B-7 07401MAQ4 BB-/Watch Neg BB- I-B-8 07401MAR2 B+/Watch Neg B+ I-B-9 07401MAS0 B-/Watch Neg B- II-A-4 07401MAH4 AAA/Watch Neg AAA II-B-1 07401MAT8 A/Watch Neg A II-B-2 07401MAU5 BBB/Watch Neg BBB Bear Stearns Mortgage Funding Trust 2007-AR2 Series 2007-AR2 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 07401TAC0 AAA/Watch Neg AAA B-1 07401TAD8 AA-/Watch Neg AA- B-2 07401TAE6 BBB/Watch Neg BBB B-3 07401TAF3 BB/Watch Neg BB B-4 07401TAG1 B/Watch Neg B Bear Stearns Mortgage Funding Trust 2007-AR3 Series 2007-AR3 Rating ------ Class CUSIP To From ----- ----- -- ---- I-A-3 07401VAC5 AAA/Watch Neg AAA I-B-1 07401VAE1 AA+/Watch Neg AA+ I-B-2 07401VAF8 AA/Watch Neg AA I-B-3 07401VAG6 AA-/Watch Neg AA- I-B-4 07401VAH4 A+/Watch Neg A+ I-B-5 07401VAJ0 A/Watch Neg A I-B-6 07401VAK7 A-/Watch Neg A- I-B-7 07401VAL5 BBB+/Watch Neg BBB+ I-B-8 07401VAM3 BBB/Watch Neg BBB I-B-9 07401VAN1 BBB-/Watch Neg BBB- II-1A-2 07401VAQ4 AAA/Watch Neg AAA II-1A-3 07401VAR2 AAA/Watch Neg AAA II-2A-1 07401VAS0 AAA/Watch Neg AAA II-B-1 07401VAT8 AA/Watch Neg AA II-B-2 07401VAU5 BBB+/Watch Neg BBB+ II-B-3 07401VAV3 BB+/Watch Neg BB+ II-B-4 07401VAW1 BB/Watch Neg BB Bear Stearns Mortgage Funding Trust 2007-AR4 Series 2007-AR4 Rating ------ Class CUSIP To From ----- ----- -- ---- I-A-3 07401YAZ8 AAA/Watch Neg AAA I-B-2 07401YAG0 AA/Watch Neg AA I-B-3 07401YAH8 AA-/Watch Neg AA- I-B-4 07401YAJ4 A+/Watch Neg A+ I-B-5 07401YAK1 A/Watch Neg A I-B-6 07401YAL9 A-/Watch Neg A- I-B-7 07401YAM7 BBB/Watch Neg BBB I-B-8 07401YAN5 BBB-/Watch Neg BBB- I-B-9 07401YAP0 BB+/Watch Neg BB+ II-A-2B 07401YBF1 AAA/Watch Neg AAA II-A-3 07401YAT2 AAA/Watch Neg AAA II-B-1 07401YAU9 BBB/Watch Neg BBB II-B-2 07401YAV7 BB/Watch Neg BB II-B-3 07401YAW5 B/Watch Neg B II-B-4 07401YAX3 B-/Watch Neg B- Bear Stearns Mortgage Funding Trust 2007-AR5 Series 2007-AR5 Rating ------ Class CUSIP To From ----- ----- -- ---- I-B-4 07400NAL4 A+/Watch Neg A+ I-B-5 07400NAM2 A-/Watch Neg A- I-B-6 07400NAN0 BBB+/Watch Neg BBB+ I-B-7 07400NAP5 BBB-/Watch Neg BBB- I-B-8 07400NAQ3 BB+/Watch Neg BB+ I-B-9 07400NAR1 BB/Watch Neg BB II-B-1 07400NAV2 AA+/Watch Neg AA+ II-B-2 07400NAW0 AA/Watch Neg AA II-B-3 07400NAX8 A/Watch Neg A II-B-4 07400NAY6 BBB/Watch Neg BBB II-B-5 07400NAZ3 BBB-/Watch Neg BBB- II-B-6 07400NBK5 BB+/Watch Neg BB+ Chevy Chase Funding LLC Mortgage-Backed Certificates, Series 2006-2 Trust Series 2006-2 Rating ------ Class CUSIP To From ----- ----- -- ---- IO AAA/Watch Neg AAA NIO AAA/Watch Neg AAA B-1 16678WAC0 A/Watch Neg A B-1NA A/Watch Neg A B-2 16678WAD8 B/Watch Neg B B-2NA B/Watch Neg B Chevy Chase Funding LLC Mortgage-Backed Certificates, Series 2006-4 Trust Series 2006-4 Rating ------ Class CUSIP To From ----- ----- -- ---- A-2I AAA/Watch Neg AAA IO AAA/Watch Neg AAA NIO AAA/Watch Neg AAA B-1 16678XAC8 AA/Watch Neg AA B-1I AA/Watch Neg AA B-1NA AA/Watch Neg AA B-2 16678XAD6 BB/Watch Neg BB B-2I BB/Watch Neg BB B-2NA BB/Watch Neg BB Chevy Chase Funding LLC Mortgage-Backed Certificates, Series 2007-1 Trust Series 2007-1 Rating ------ Class CUSIP To From ----- ----- -- ---- A-2I AAA/Watch Neg AAA IO AAA/Watch Neg AAA NIO AAA/Watch Neg AAA B-1I A/Watch Neg A B-1NA A/Watch Neg A B-2 16679AAD5 B/Watch Neg B B-2I B/Watch Neg B B-2NA B/Watch Neg B Chevy Chase Funding LLC Mortgage-Backed Certificates, Series 2007-2 Trust Series 2007-2 Rating ------ Class CUSIP To From ----- ----- -- ---- A-2I AAA/Watch Neg AAA IO AAA/Watch Neg AAA NIO AAA/Watch Neg AAA B-1 16679BAC5 BBB/Watch Neg BBB B-1I BBB/Watch Neg BBB B-1NA BBB/Watch Neg BBB B-2 16679BAD3 B/Watch Neg B B-2I B/Watch Neg B B-2NA B/Watch Neg B Chevy Chase Funding LLC Trust, Series 2006-1 Series 2006-1 Rating ------ Class CUSIP To From ----- ----- -- ---- IO AAA/Watch Neg AAA NIO AAA/Watch Neg AAA B-1NA AA/Watch Neg AA B-2 16678RFE2 B/Watch Neg B B-2NA B/Watch Neg B CHL Mortgage Pass-Through Trust 2006-3 Series 2006-3 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A-3 126694YL6 AAA/Watch Neg AAA 1-M-1 126694YU6 AA/Watch Neg AA 1-M-2 126694YV4 AA-/Watch Neg AA- 1-M-3 126694YW2 A+/Watch Neg A+ 1-M-4 126694YX0 A/Watch Neg A 1-M-5 126694YY8 BB/Watch Neg BB 1-M-6 126694YZ5 B/Watch Neg B 2-A-3 126694YP7 AAA/Watch Neg AAA 2-M-1 126694ZB7 AA-/Watch Neg AA- 3-A-2 126694YR3 AAA/Watch Neg AAA 3-A-3 126694YS1 AAA/Watch Neg AAA 3-M-1 126694ZJ0 BBB/Watch Neg BBB 3-M-2 126694ZK7 BB/Watch Neg BB 3-M-3 126694ZL5 B/Watch Neg B Deutsche Alt-A Securities Mortgage Loan Trust Series 2006-OA1 Series 2006-OA1 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 25150QAC1 AAA/Watch Neg AAA M-1 25150QAD9 AA-/Watch Neg AA- M-2 25150QAE7 A+/Watch Neg A+ M-3 25150QAF4 A/Watch Neg A M-4 25150QAG2 A-/Watch Neg A- M-5 25150QAH0 BBB+/Watch Neg BBB+ M-6 25150QAJ6 BBB-/Watch Neg BBB- Deutsche Alt-A Securities Mortgage Loan Trust Series 2007-OA3 Series 2007-OA3 Rating ------ Class CUSIP To From ----- ----- -- ---- M-1 25150WAD6 AA+/Watch Neg AA+ M-2 25150WAE4 AA/Watch Neg AA M-3 25150WAF1 A+/Watch Neg A+ M-4 25150WAG9 A/Watch Neg A M-5 25150WAH7 A-/Watch Neg A- M-6 25150WAJ3 BBB/Watch Neg BBB M-7 25150WAK0 BBB-/Watch Neg BBB- M-8 25150WAL8 BB/Watch Neg BB M-9 25150WAM6 B/Watch Neg B Deutsche Alt-A Securities Mortgage Loan Trust Series 2007-OA4 Series 2007-OA4 Rating ------ Class CUSIP To From ----- ----- -- ---- M-1 25151XAK7 AA+/Watch Neg AA+ M-2 25151XAL5 AA/Watch Neg AA M-3 25151XAM3 A+/Watch Neg A+ M-4 25151XAN1 A/Watch Neg A M-5 25151XAP6 A-/Watch Neg A- M-6 25151XAQ4 BBB/Watch Neg BBB M-7 25151XAR2 BBB-/Watch Neg BBB- M-8 25151XAS0 BB-/Watch Neg BB- M-9 25151XAT8 B/Watch Neg B DSLA Mortgage Loan Trust 2006-AR1 Series 2006-AR1 Rating ------ Class CUSIP To From ----- ----- -- ---- M1 23332UGQ1 AA+/Watch Neg AA+ M2 23332UGR9 AA/Watch Neg AA M3 23332UGS7 A/Watch Neg A M4 23332UGT5 A/Watch Neg A M5 23332UGU2 BBB/Watch Neg BBB M6 23332UGV0 B/Watch Neg B M7 23332UGW8 B/Watch Neg B DSLA Mortgage Loan Trust 2006-AR2 Series 2006-AR2 Rating ------ Class CUSIP To From ----- ----- -- ---- M-1 23332QAG8 AA+/Watch Neg AA+ M-2 23332QAH6 AA/Watch Neg AA M-3 23332QAJ2 AA-/Watch Neg AA- M-4 23332QAK9 A+/Watch Neg A+ M-5 23332QAL7 A-/Watch Neg A- M-6 23332QAM5 BB/Watch Neg BB DSLA Mortgage Loan Trust 2007-AR1 Series 2007-AR1 Rating ------ Class CUSIP To From ----- ----- -- ---- M-2 23333YAG0 AA/Watch Neg AA M-3 23333YAH8 A+/Watch Neg A+ M-4 23333YAJ4 A/Watch Neg A M-5 23333YAK1 BBB+/Watch Neg BBB+ M-6 23333YAL9 BBB/Watch Neg BBB M-7 23333YAM7 BBB-/Watch Neg BBB- M-8 23333YAN5 B/Watch Neg B GreenPoint Mortgage Funding Trust 2006-AR1 Series 2006-AR1 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 39538WFM5 AAA/Watch Neg AAA M-1 39538WFN3 AA+/Watch Neg AA+ M-2 39538WFP8 AA/Watch Neg AA M-3 39538WFQ6 AA-/Watch Neg AA- B-1 39538WFR4 BBB/Watch Neg BBB B-2 39538WFS2 BB/Watch Neg BB B-3 39538WFT0 B/Watch Neg B Greenpoint Mortgage Funding Trust 2006-AR2 Series 2006-AR2 Rating ------ Class CUSIP To From ----- ----- -- ---- III-A-2 39538WGG7 AAA/Watch Neg AAA III-A-3 39538WGH5 AAA/Watch Neg AAA IV-A-2 39538WGK8 AAA/Watch Neg AAA IV-A-3 39538WGL6 AAA/Watch Neg AAA M-1 39538WGN2 AA/Watch Neg AA M-2 39538WGP7 BBB/Watch Neg BBB M-3 39538WGQ5 BB/Watch Neg BB B-1 39538WGR3 B/Watch Neg B B-2 39538WGS1 B/Watch Neg B GreenPoint Mortgage Funding Trust 2006-AR3 Series 2006-AR3 Rating ------ Class CUSIP To From ----- ----- -- ---- I-A 39538WGZ5 AAA/Watch Neg AAA III-A-2 39538WHD3 AAA/Watch Neg AAA III-A-3 39538WHE1 AAA/Watch Neg AAA IV-A-3 39538WHH4 AAA/Watch Neg AAA B-1 39538WHK7 AA+/Watch Neg AA+ B-2 39538WHL5 AA/Watch Neg AA B-3 39538WHM3 AA-/Watch Neg AA- B-4 39538WHN1 A/Watch Neg A B-5 39538WHP6 A/Watch Neg A B-6 39538WHQ4 BB/Watch Neg BB B-7 39538WHR2 BB/Watch Neg BB Greenpoint Mortgage Funding Trust 2006-OH1 Series 2006-OH1 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 39539GAC6 AAA/Watch Neg AAA M-1 39539GAD4 AA/Watch Neg AA M-2 39539GAE2 AA-/Watch Neg AA- M-3 39539GAF9 A+/Watch Neg A+ M-4 39539GAG7 A/Watch Neg A M-5 39539GAH5 BBB+/Watch Neg BBB+ M-6 39539GAJ1 BBB/Watch Neg BBB GreenPoint Mortgage Funding Trust Series 2007-AR2 Series 2007-AR2 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A1 39539LAA9 AAA/Watch Neg AAA 1-A2B 39539LAC5 AAA/Watch Neg AAA 1-A3 39539LAD3 AAA/Watch Neg AAA 1-A4C 39539LAG6 AAA/Watch Neg AAA 1-M1 39539LAL5 AA+/Watch Neg AA+ 1-M2 39539LAM3 AA/Watch Neg AA 2-M1 39539LAV3 AA+/Watch Neg AA+ 2-M2 39539LAW1 AA/Watch Neg AA 2-M3 39539LAX9 AA-/Watch Neg AA- 2-M4 39539LAY7 A+/Watch Neg A+ 2-M5 39539LAZ4 A/Watch Neg A 2-M6 39539LBA8 A-/Watch Neg A- 2-M7 39539LBB6 BBB/Watch Neg BBB GreenPoint Mortgage Funding Trust Series 2006-AR4 Series 2006-AR4 Rating ------ Class CUSIP To From ----- ----- -- ---- A1-B 39539FAB0 AAA/Watch Neg AAA A2-B 39539FAD6 AAA/Watch Neg AAA A3-B 39539FAF1 AAA/Watch Neg AAA A4-B 39539FAH7 AAA/Watch Neg AAA A5-A 39539FAJ3 AAA/Watch Neg AAA A6-C 39539FAM6 AAA/Watch Neg AAA M-1 39539FAN4 A/Watch Neg A M-2 39539FAP9 BBB/Watch Neg BBB M-3 39539FAQ7 BB/Watch Neg BB M-4 39539FAR5 B/Watch Neg B GreenPoint Mortgage Funding Trust Series 2006-AR5 Series 2006-AR5 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A1B 39538AAB2 AAA/Watch Neg AAA 1-A2B 39538AAF3 AAA/Watch Neg AAA 1-A3B 39538AAK2 AAA/Watch Neg AAA 1-A4 39538AAL0 AAA/Watch Neg AAA 2-A 39538AAM8 AAA/Watch Neg AAA M1 39538AAN6 AA+/Watch Neg AA+ M2 39538AAP1 AA/Watch Neg AA Greenpoint Mortgage Funding Trust Series 2006-AR6 Series 2006-AR6 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A2BU 39538BAX2 AAA/Watch Neg AAA 1-A3BU 39538BAY0 AAA/Watch Neg AAA 2-A2 39538BAJ3 AAA/Watch Neg AAA M1 39538BAK0 AA+/Watch Neg AA+ M2 39538BAL8 AA/Watch Neg AA GreenPoint Mortgage Funding Trust Series 2006-AR8 Series 2006-AR8 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A1B 39539HAB6 AAA/Watch Neg AAA 1-A3B 39539HAE0 AAA/Watch Neg AAA M1 39539HAG5 AA+/Watch Neg AA+ M2 39539HAH3 AA/Watch Neg AA GreenPoint Mortgage Funding Trust Series 2007-AR1 Series 2007-AR1 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A1B 39539KBD4 AAA/Watch Neg AAA 1-A3 39539KAC7 AAA/Watch Neg AAA 2-A1B 39539KAE3 AAA/Watch Neg AAA M1-II 39539KAT0 AA+/Watch Neg AA+ M2-II 39539KAU7 AA/Watch Neg AA M3-II 39539KAV5 AA-/Watch Neg AA- M4-II 39539KAW3 A+/Watch Neg A+ M5-II 39539KAX1 A/Watch Neg A M6-II 39539KAY9 A-/Watch Neg A- M7-II 39539KAZ6 BBB+/Watch Neg BBB+ Greenpoint Mortgage Funding Trust Series 2007-AR3 Series 2007-AR3 Rating ------ Class CUSIP To From ----- ----- -- ---- M2 39539MAE9 AA/Watch Neg AA M3 39539MAF6 A+/Watch Neg A+ M4 39539MAG4 A/Watch Neg A M5 39539MAH2 BBB+/Watch Neg BBB+ M6 39539MAJ8 BBB-/Watch Neg BBB- GSR Mortgage Loan Trust 2006-OA1 Series 2006-OA1 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A-1 362631AA1 AAA/Watch Neg AAA 2-A-3 362631AD5 AAA/Watch Neg AAA 3-A-2 362631AF0 AAA/Watch Neg AAA M-1 362631AG8 AA+/Watch Neg AA+ M-2 362631AH6 AA/Watch Neg AA M-3 362631AJ2 A/Watch Neg A M-4 362631AK9 BBB/Watch Neg BBB M-5 362631AL7 BB/Watch Neg BB M-6 362631AM5 BB/Watch Neg BB M-7 362631AN3 B/Watch Neg B M-8 362631AP8 B/Watch Neg B GSR Mortgage Loan Trust 2007-OA1 Series 2007-OA1 Rating ------ Class CUSIP To From ----- ----- -- ---- 2A-M 3622NAAG5 AAA/Watch Neg AAA M-1 3622NAAH3 AA+/Watch Neg AA+ M-2 3622NAAJ9 AA/Watch Neg AA M-3 3622NAAK6 AA-/Watch Neg AA- M-4 3622NAAL4 A/Watch Neg A M-5 3622NAAM2 BBB/Watch Neg BBB M-6 3622NAAN0 BBB-/Watch Neg BBB- M-7 3622NAAP5 BB/Watch Neg BB HarborView Mortgage Loan Trust 2006-BU1 Series 2006-BU1 Rating ------ Class CUSIP To From ----- ----- -- ---- M-1 41161PH22 AA+/Watch Neg AA+ M-2 41161PH30 AA/Watch Neg AA M-3 41161PH48 AA-/Watch Neg AA- M-4 41161PH55 A+/Watch Neg A+ M-5 41161PH63 A/Watch Neg A M-6 41161PH71 A-/Watch Neg A- M-7 41161PH89 BBB+/Watch Neg BBB+ M-8 41161PH97 BBB/Watch Neg BBB M-9 41161PJ20 BB+/Watch Neg BB+ HarborView Mortgage Loan Trust 2006-SB1 Series 2006-SB1 Rating ------ Class CUSIP To From ----- ----- -- ---- A-1B 41162BAB9 AAA/Watch Neg AAA M-1 41162BAC7 BBB/Watch Neg BBB M-2 41162BAD5 BB/Watch Neg BB M-3 41162BAE3 B/Watch Neg B M-4 41162BAF0 B/Watch Neg B HarborView Mortgage Loan Trust 2007-2 Series 2007-2 Rating ------ Class CUSIP To From ----- ----- -- ---- 1A-1A 41164LAA7 A/Watch Neg A B-1 41164LAE9 BB/Watch Neg BB B-2 41164LAF6 BB-/Watch Neg BB- B-3 41164LAG4 B/Watch Neg B HarborView Mortgage Loan Trust 2007-3 Series 2007-3 Rating ------ Class CUSIP To From ----- ----- -- ---- 2A-1C 41164UAD1 AAA/Watch Neg AAA B-2 41164UAF6 AA-/Watch Neg AA- IndyMac IMSC Mortgage Loan Trust 2007-HOA1 Series 2007-HOA1 Rating ------ Class CUSIP To From ----- ----- -- ---- B-1 45670LAJ6 BBB+/Watch Neg BBB+ B-2 45670LAK3 BBB/Watch Neg BBB B-3 45670LAL1 BBB-/Watch Neg BBB- B-4 45670LAM9 BB/Watch Neg BB B-5 45670LAN7 B/Watch Neg B IndyMac INDX Mortgage Loan Trust 2006-AR12 Series 2006-AR12 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 45661VAC0 AAA/Watch Neg AAA M-1 45661VAD8 AA/Watch Neg AA M-2 45661VAE6 A/Watch Neg A M-3 45661VAF3 BBB/Watch Neg BBB M-4 45661VAG1 BBB-/Watch Neg BBB- IndyMac INDX Mortgage Loan Trust 2006-AR14 Series 2006-AR14 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A1B 45668GAB8 AAA/Watch Neg AAA 1-A3BU 45668GAE2 AAA/Watch Neg AAA 2-A 45668GAG7 AAA/Watch Neg AAA M-1 45668GAH5 AA+/Watch Neg AA+ M-2 45668GAJ1 AA/Watch Neg AA M-3 45668GAK8 AA-/Watch Neg AA- M-4 45668GAL6 A+/Watch Neg A+ M-5 45668GAM4 A/Watch Neg A M-6 45668GAN2 A-/Watch Neg A- M-7 45668GAP7 BBB+/Watch Neg BBB+ M-8 45668GAQ5 BBB/Watch Neg BBB M-9 45668GAR3 BBB-/Watch Neg BBB- IndyMac INDX Mortgage Loan Trust 2006-AR8 Series 2006-AR8 Rating ------ Class CUSIP To From ----- ----- -- ---- A2-A2 456618AT4 AAA/Watch Neg AAA A2-B 456618AE7 AAA/Watch Neg AAA A3-B 456618AG2 AAA/Watch Neg AAA A4-B 456618AJ6 AAA/Watch Neg AAA M-1 456618AK3 AA+/Watch Neg AA+ M-2 456618AL1 AA/Watch Neg AA M-3 456618AM9 AA-/Watch Neg AA- M-4 456618AN7 A+/Watch Neg A+ M-5 456618AP2 A+/Watch Neg A+ M-6 456618AQ0 A/Watch Neg A M-7 456618AR8 BBB+/Watch Neg BBB+ M-8 456618AS6 BBB/Watch Neg BBB M-9 456618AX5 BBB-/Watch Neg BBB- IndyMac INDX Mortgage Loan Trust 2007-FLX1 Series 2007-FLX1 Rating ------ Class CUSIP To From ----- ----- -- ---- M-1 45668WAJ6 AA+/Watch Neg AA+ M-2 45668WAK3 AA/Watch Neg AA M-3 45668WAL1 A+/Watch Neg A+ M-4 45668WAM9 A/Watch Neg A M-5 45668WAN7 BBB/Watch Neg BBB M-6 45668WAP2 BBB-/Watch Neg BBB- IndyMac INDX Mortgage Loan Trust 2007-FLX2 Series 2007-FLX2 Rating ------ Class CUSIP To From ----- ----- -- ---- M-1 45668RAG3 AA/Watch Neg AA M-2 45668RAH1 AA-/Watch Neg AA- M-3 45668RAJ7 A-/Watch Neg A- M-4 45668RAK4 BBB/Watch Neg BBB M-5 45668RAL2 BB+/Watch Neg BB+ IndyMac INDX Mortgage Loan Trust 2007-FLX3 Series 2007-FLX3 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 45670AAC5 AAA/Watch Neg AAA M-1 45670AAE1 AA/Watch Neg AA M-2 45670AAF8 AA-/Watch Neg AA- M-3 45670AAG6 A-/Watch Neg A- M-4 45670AAH4 BBB/Watch Neg BBB M-5 45670AAJ0 BB+/Watch Neg BB+ M-6 45670AAK7 BB/Watch Neg BB IndyMac INDX Mortgage Loan Trust 2007-FLX4 Series 2007-FLX4 Rating ------ Class CUSIP To From ----- ----- -- ---- M-1 456687AF9 AA+/Watch Neg AA+ M-2 456687AG7 AA/Watch Neg AA M-3 456687AH5 AA-/Watch Neg AA- M-4 456687AJ1 A+/Watch Neg A+ M-5 456687AK8 A-/Watch Neg A- M-6 456687AL6 BBB+/Watch Neg BBB+ M-7 456687AM4 BBB-/Watch Neg BBB- M-8 456687AN2 BB+/Watch Neg BB+ IndyMac INDX Mortgage Loan Trust 2007-FLX5 Series 2007-FLX5 Rating ------ Class CUSIP To From ----- ----- -- ---- M-3 45669WAH9 AA-/Watch Neg AA- M-4 45669WAJ5 A/Watch Neg A M-5 45669WAK2 A-/Watch Neg A- M-6 45669WAL0 BBB/Watch Neg BBB M-7 45669WAM8 BBB-/Watch Neg BBB- M-8 45669WAN6 BB+/Watch Neg BB+ M-9 45669WAP1 BB/Watch Neg BB Lehman XS Trust, Series 2007-12N Series 2007-12N Rating ------ Class CUSIP To From ----- ----- -- ---- 1-M1 52524YAN3 AA+/Watch Neg AA+ 1-M2 52524YAP8 AA/Watch Neg AA 1-M3 52524YAQ6 AA-/Watch Neg AA- 1-M4 52524YAR4 A+/Watch Neg A+ 1-M5 52524YAS2 A/Watch Neg A 1-M6 52524YAT0 BBB+/Watch Neg BBB+ 1-M7 52524YAU7 BBB/Watch Neg BBB 1-M8 52524YAV5 BBB-/Watch Neg BBB- 1-M9 52524YAW3 BB+/Watch Neg BB+ 2-M1 52524YAX1 AA+/Watch Neg AA+ 2-M2 52524YAY9 AA/Watch Neg AA 2-M3 52524YAZ6 AA-/Watch Neg AA- 2-M4 52524YBA0 A+/Watch Neg A+ 2-M5 52524YBB8 A/Watch Neg A 2-M6 52524YBC6 BBB/Watch Neg BBB 2-M7 52524YBD4 BB+/Watch Neg BB+ 2-M8 52524YBE2 B+/Watch Neg B+ 3-M5 52524YBL6 A/Watch Neg A 3-M6 52524YBM4 BBB+/Watch Neg BBB+ 3-M7 52524YBN2 BBB/Watch Neg BBB Lehman XS Trust, Series 2007-2N Series 2007-2N Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A1B 52524LAB7 AAA/Watch Neg AAA M1 52524LAJ0 AA+/Watch Neg AA+ M2 52524LAK7 AA/Watch Neg AA M3 52524LAL5 AA-/Watch Neg AA- M4 52524LAM3 A+/Watch Neg A+ M5 52524LAN1 A/Watch Neg A M6 52524LAP6 A-/Watch Neg A- M7 52524LAQ4 BBB+/Watch Neg BBB+ M8 52524LAR2 BBB+/Watch Neg BBB+ M9 52524LAS0 BBB-/Watch Neg BBB- M10 52524LAT8 BB+/Watch Neg BB+ M11 52524LAU5 BB/Watch Neg BB M12 52524LAV3 BB-/Watch Neg BB- Lehman XS Trust, Series 2007-4N Series 2007-4N Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A1 52524HAA8 AAA/Watch Neg AAA 1-A2B 52524HAC4 AAA/Watch Neg AAA 1-A3 52524HAD2 AAA/Watch Neg AAA 3AC 52524HAL4 AAA/Watch Neg AAA M1 52524HAN0 AA+/Watch Neg AA+ M2 52524HAP5 AA/Watch Neg AA M3 52524HAQ3 AA-/Watch Neg AA- M4 52524HAR1 A+/Watch Neg A+ M5 52524HAS9 A/Watch Neg A M6 52524HAT7 A-/Watch Neg A- M7 52524HAU4 BBB+/Watch Neg BBB+ M8 52524HAV2 BB/Watch Neg BB M9 52524HAW0 BB-/Watch Neg BB- Lehman XS Trust, Series 2007-7N Series 2007-7N Rating ------ Class CUSIP To From ----- ----- -- ---- M1 52524GAM4 AA+/Watch Neg AA+ M2 52524GAN2 AA/Watch Neg AA M3 52524GAP7 AA-/Watch Neg AA- M4 52524GAQ5 A+/Watch Neg A+ M5 52524GAR3 A/Watch Neg A M6 52524GAS1 BBB+/Watch Neg BBB+ M7 52524GAT9 BBB/Watch Neg BBB M8 52524GAU6 B/Watch Neg B Luminent Mortgage Trust 2006-1 Series 2006-1 Rating ------ Class CUSIP To From ----- ----- -- ---- A3 550279AP8 AAA/Watch Neg AAA M 550279AS2 B/Watch Neg B Luminent Mortgage Trust 2006-2 Series 2006-2 Rating ------ Class CUSIP To From ----- ----- -- ---- B-1 550279BG7 B/Watch Neg B Luminent Mortgage Trust 2006-4 Series 2006-4 Rating ------ Class CUSIP To From ----- ----- -- ---- A1C 55027BAC2 BBB/Watch Neg BBB PO 55027BAE8 AAA/Watch Neg AAA B-1 55027BAG3 BB/Watch Neg BB B-2 55027BAH1 B/Watch Neg B Luminent Mortgage Trust 2006-5 Series 2006-5 Rating ------ Class CUSIP To From ----- ----- -- ---- A1C 55027XAC4 AAA/Watch Neg AAA B-1 55027XAG5 BBB/Watch Neg BBB PO 55027XAE0 AAA/Watch Neg AAA Luminent Mortgage Trust 2006-6 Series 2006-6 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 55027YAF5 AAA/Watch Neg AAA B-1 55027YAG3 AA+/Watch Neg AA+ B-2 55027YAH1 AA/Watch Neg AA B-3 55027YAJ7 AA-/Watch Neg AA- B-4 55027YAK4 A+/Watch Neg A+ B-5 55027YAL2 A/Watch Neg A B-6 55027YAM0 A-/Watch Neg A- B-7 55027YAN8 BBB/Watch Neg BBB B-8 55027YAP3 BB/Watch Neg BB B-9 55027YAQ1 B/Watch Neg B Luminent Mortgage Trust 2006-7 Series 2006-7 Rating ------ Class CUSIP To From ----- ----- -- ---- I-A-2 55028BAB3 AAA/Watch Neg AAA I-B-1 55028BAC1 AA/Watch Neg AA I-B-2 55028BAD9 A/Watch Neg A I-B-3 55028BAE7 BBB/Watch Neg BBB I-B-4 55028BAF4 BBB-/Watch Neg BBB- II-A-3 55028BAJ6 AAA/Watch Neg AAA II-B-1 55028BAK3 AA+/Watch Neg AA+ II-B-2 55028BAL1 AA/Watch Neg AA II-B-3 55028BAM9 AA-/Watch Neg AA- II-B-4 55028BAN7 A+/Watch Neg A+ II-B-5 55028BAP2 A/Watch Neg A II-B-6 55028BAQ0 A-/Watch Neg A- II-B-7 55028BAR8 BBB+/Watch Neg BBB+ II-B-8 55028BAS6 BBB/Watch Neg BBB MASTR Adjustable Rate Mortgages Trust 2006-OA1 Series 2006-OA1 Rating ------ Class CUSIP To From ----- ----- -- ---- 3-A-3 576433H25 AA/Watch Neg AA M-1 576433H82 B/Watch Neg B MASTR Adjustable Rate Mortgages Trust 2007-3 Series 2007-3 Rating ------ Class CUSIP To From ----- ----- -- ---- 2-M1 57645NAW0 AA+/Watch Neg AA+ 2-M2 57645NAX8 AA/Watch Neg AA 2-M3 57645NAY6 AA-/Watch Neg AA- 2-M4 57645NAZ3 A+/Watch Neg A+ 2-M5 57645NBA7 BBB-/Watch Neg BBB- 2-M6 57645NBB5 BB/Watch Neg BB Merrill Lynch Alternative Note Asset Trust, Series 2007-OAR1 Series 2007-OAR1 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 59023TAC9 AAA/Watch Neg AAA M-1 59023TAD7 AA+/Watch Neg AA+ M-2 59023TAE5 AA/Watch Neg AA M-3 59023TAF2 AA-/Watch Neg AA- M-4 59023TAG0 A+/Watch Neg A+ M-5 59023TAH8 A-/Watch Neg A- M-6 59023TAJ4 BBB/Watch Neg BBB B-1 59023TAK1 BB+/Watch Neg BB+ B-2 59023TAL9 B/Watch Neg B Merrill Lynch Alternative Note Asset Trust, Series 2007-OAR2 Series 2007-OAR2 Rating ------ Class CUSIP To From ----- ----- -- ---- M-1 59024BAD5 AA+/Watch Neg AA+ M-2 59024BAE3 AA/Watch Neg AA M-3 59024BAF0 AA-/Watch Neg AA- M-4 59024BAG8 A+/Watch Neg A+ M-5 59024BAH6 A/Watch Neg A M-6 59024BAJ2 BBB+/Watch Neg BBB+ B-1 59024BAK9 BBB-/Watch Neg BBB- B-2 59024BAL7 BB/Watch Neg BB B-3 59024BAM5 B/Watch Neg B Merrill Lynch Alternative Note Asset Trust, Series 2007-OAR3 Series 2007-OAR3 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 59024JAC0 AAA/Watch Neg AAA M-1 59024JAD8 AA+/Watch Neg AA+ M-2 59024JAE6 A/Watch Neg A M-3 59024JAF3 BBB+/Watch Neg BBB+ M-4 59024JAG1 BBB/Watch Neg BBB M-5 59024JAH9 BB+/Watch Neg BB+ M-6 59024JAJ5 BB/Watch Neg BB B-1 59024JAK2 BB-/Watch Neg BB- B-2 59024JAL0 B/Watch Neg B RALI Series 2006-QH1 Trust Series 2006-QH1 Rating ------ Class CUSIP To From ----- ----- -- ---- M-1 75115GAD0 BB/Watch Neg BB M-2 75115GAE8 B/Watch Neg B RALI Series 2006-QO1 Trust Series 2006-QO1 Rating ------ Class CUSIP To From ----- ----- -- ---- 1-A-2 761118RH3 BBB-/Watch Neg BBB- 2-A-2 761118RK6 AAA/Watch Neg AAA 2-A-3 761118RL4 BBB-/Watch Neg BBB- 3-A-3 761118RP5 BBB-/Watch Neg BBB- M-1 761118RQ3 BB/Watch Neg BB M-2 761118RR1 B/Watch Neg B RALI Series 2006-QO10 Trust Series 2006-QO10 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 751153AC1 AAA/Watch Neg AAA M-1 751153AD9 BBB/Watch Neg BBB M-2 751153AE7 BB/Watch Neg BB M-3 751153AF4 B/Watch Neg B M-4 751153AG2 B/Watch Neg B M-5 751153AH0 B/Watch Neg B M-6 751153AJ6 B/Watch Neg B M-7 751153AK3 B/Watch Neg B RALI Series 2006-QO2 Trust Series 2006-QO2 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 761118WA2 AAA/Watch Neg AAA M-1 761118WB0 AA+/Watch Neg AA+ M-2 761118WC8 AA/Watch Neg AA M-3 761118WD6 AA-/Watch Neg AA- M-4 761118WE4 A+/Watch Neg A+ M-5 761118WF1 A/Watch Neg A M-6 761118WG9 A-/Watch Neg A- M-7 761118WH7 BB/Watch Neg BB M-8 761118WJ3 B/Watch Neg B RALI Series 2006-QO3 Trust Series 2006-QO3 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 761118WR5 AAA/Watch Neg AAA M-1 761118WS3 AA+/Watch Neg AA+ M-2 761118WT1 AA/Watch Neg AA M-3 761118WU8 AA-/Watch Neg AA- M-4 761118WV6 A+/Watch Neg A+ M-5 761118WW4 A+/Watch Neg A+ M-6 761118WX2 A/Watch Neg A M-7 761118WY0 BBB+/Watch Neg BBB+ M-8 761118WZ7 BB/Watch Neg BB RALI Series 2006-QO4 Trust Series 2006-QO4 Rating ------ Class CUSIP To From ----- ----- -- ---- M-1 75114GAF6 AA+/Watch Neg AA+ M-2 75114GAG4 A/Watch Neg A M-3 75114GAH2 A-/Watch Neg A- M-4 75114GAJ8 BBB/Watch Neg BBB M-5 75114GAK5 BBB-/Watch Neg BBB- M-6 75114GAL3 BB/Watch Neg BB M-7 75114GAM1 BB/Watch Neg BB M-8 75114GAN9 B/Watch Neg B RALI Series 2006-QO7 Trust Series 2006-QO7 Rating ------ Class CUSIP To From ----- ----- -- ---- I-A-3 751150AC7 A/Watch Neg A II-A-3 751150AF0 A/Watch Neg A III-A-4 751150AK9 A/Watch Neg A M-1 751150AS2 B/Watch Neg B RALI Series 2006-QO8 Trust Series 2006-QO8 Rating ------ Class CUSIP To From ----- ----- -- ---- I-A1B 75115FAB6 AAA/Watch Neg AAA I-A3B 75115FAE0 AAA/Watch Neg AAA I-A4B 75115FAR1 AAA/Watch Neg AAA II-A 75115FAT7 AAA/Watch Neg AAA M-1 75115FAF7 AA/Watch Neg AA M-2 75115FAG5 BBB/Watch Neg BBB M-3 75115FAH3 BBB/Watch Neg BBB M-4 75115FAJ9 B/Watch Neg B M-5 75115FAK6 BBB-/Watch Neg BBB- M-6 75115FAL4 B/Watch Neg B RALI Series 2006-QO9 Trust Series 2006-QO9 Rating ------ Class CUSIP To From ----- ----- -- ---- I-A1BU 75115HAW6 AAA/Watch Neg AAA I-A3BU 75115HAZ9 AAA/Watch Neg AAA II-A 75115HAB2 AAA/Watch Neg AAA M-1 75115HAC0 AA/Watch Neg AA M-2 75115HAD8 BBB/Watch Neg BBB M-3 75115HAE6 BB/Watch Neg BB M-4 75115HAF3 B/Watch Neg B M-5 75115HAG1 B/Watch Neg B M-6 75115HAH9 B/Watch Neg B M-7 75115HAJ5 B/Watch Neg B RALI Series 2007-QH1 Trust Series 2007-QH1 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 74922HAC6 AAA/Watch Neg AAA M-1 74922HAD4 AA/Watch Neg AA M-2 74922HAE2 AA-/Watch Neg AA- M-3 74922HAF9 A-/Watch Neg A- M-4 74922HAG7 BBB/Watch Neg BBB M-5 74922HAH5 BB+/Watch Neg BB+ RALI Series 2007-QH2 Trust Series 2007-QH2 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 74922JAC2 AAA/Watch Neg AAA M-1 74922JAD0 AA/Watch Neg AA M-2 74922JAE8 AA-/Watch Neg AA- M-3 74922JAF5 A+/Watch Neg A+ M-4 74922JAG3 BBB+/Watch Neg BBB+ M-5 74922JAH1 BBB-/Watch Neg BBB- M-6 74922JAJ7 BB/Watch Neg BB RALI Series 2007-QH3 Trust Series 2007-QH3 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 74922WAC3 AAA/Watch Neg AAA M-1 74922WAD1 AA+/Watch Neg AA+ M-2 74922WAE9 AA/Watch Neg AA M-3 74922WAF6 AA-/Watch Neg AA- M-4 74922WAG4 A+/Watch Neg A+ M-5 74922WAH2 A/Watch Neg A M-6 74922WAJ8 BBB-/Watch Neg BBB- RALI Series 2007-QH4 Trust Series 2007-QH4 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 74922TAC0 AAA/Watch Neg AAA M-1 74922TAD8 AA+/Watch Neg AA+ M-2 74922TAE6 AA/Watch Neg AA M-3 74922TAF3 AA-/Watch Neg AA- M-4 74922TAG1 A+/Watch Neg A+ M-5 74922TAH9 BBB+/Watch Neg BBB+ M-6 74922TAJ5 BBB-/Watch Neg BBB- M-7 74922TAK2 BB/Watch Neg BB M-8 74922TAL0 BB-/Watch Neg BB- B 74922TAM8 B/Watch Neg B RALI Series 2007-QH5 Trust Series 2007-QH5 Rating ------ Class CUSIP To From ----- ----- -- ---- A-I-3 75116EAC6 AAA/Watch Neg AAA A-II 75116EAD4 AAA/Watch Neg AAA M-1 75116EAE2 AA+/Watch Neg AA+ M-2 75116EAF9 AA/Watch Neg AA M-3 75116EAG7 A+/Watch Neg A+ M-4 75116EAH5 BBB+/Watch Neg BBB+ M-5 75116EAJ1 BBB/Watch Neg BBB M-6 75116EAK8 BB+/Watch Neg BB+ RALI Series 2007-QH6 Trust Series 2007-QH6 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 74922AAC1 AAA/Watch Neg AAA M-1 74922AAD9 AA+/Watch Neg AA+ M-2 74922AAE7 AA/Watch Neg AA M-3 74922AAF4 A+/Watch Neg A+ M-4 74922AAG2 A/Watch Neg A M-5 74922AAH0 BBB/Watch Neg BBB M-6 74922AAJ6 BB/Watch Neg BB M-7 74922AAK3 B/Watch Neg B RALI Series 2007-QO1 Trust Series 2007-QO1 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 75115YAC3 AAA/Watch Neg AAA M-1 75115YAD1 AA+/Watch Neg AA+ M-2 75115YAE9 AA/Watch Neg AA M-3 75115YAF6 AA-/Watch Neg AA- M-4 75115YAG4 A+/Watch Neg A+ M-5 75115YAH2 A/Watch Neg A M-6 75115YAJ8 BBB-/Watch Neg BBB- M-7 75115YAK5 B/Watch Neg B RALI Series 2007-QO2 Trust Series 2007-QO2 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 75116AAC4 AAA/Watch Neg AAA M-1 75116AAD2 AA+/Watch Neg AA+ M-2 75116AAE0 AA/Watch Neg AA M-3 75116AAF7 AA-/Watch Neg AA- M-4 75116AAG5 A+/Watch Neg A+ M-5 75116AAH3 A-/Watch Neg A- M-6 75116AAJ9 BBB-/Watch Neg BBB- M-7 75116AAK6 B/Watch Neg B RALI Series 2007-QO3 Trust Series 2007-QO3 Rating ------ Class CUSIP To From ----- ----- -- ---- M-1 74923TAD7 AA+/Watch Neg AA+ M-2 74923TAE5 AA/Watch Neg AA M-3 74923TAF2 AA-/Watch Neg AA- M-4 74923TAG0 A+/Watch Neg A+ M-5 74923TAH8 A/Watch Neg A M-6 74923TAJ4 A-/Watch Neg A- M-7 74923TAK1 BBB+/Watch Neg BBB+ M-8 74923TAL9 BBB/Watch Neg BBB M-9 74923TAM7 BB+/Watch Neg BB+ RALI Series 2007-QO4 Trust Series 2007-QO4 Rating ------ Class CUSIP To From ----- ----- -- ---- A-3 74923LAD4 AAA/Watch Neg AAA M-1 74923LAE2 AA+/Watch Neg AA+ M-2 74923LAF9 AA/Watch Neg AA M-3 74923LAG7 AA-/Watch Neg AA- M-4 74923LAH5 A+/Watch Neg A+ M-5 74923LAJ1 A-/Watch Neg A- M-6 74923LAK8 A-/Watch Neg A- M-8 74923LAM4 BB/Watch Neg BB M-9 74923LAN2 BB-/Watch Neg BB- M-7 74923LAL6 BB+/Watch Neg BB+ WaMu Mortgage Pass-Through Certificates Series 2006-AR3 Trust Series 2006-AR3 Rating ------ Class CUSIP To From ----- ----- -- ---- B-4 92925CDJ8 A+/Watch Neg A+ B-5 92925CDK5 A/Watch Neg A B-6 92925CDL3 A-/Watch Neg A- B-7 92925CDM1 BBB+/Watch Neg BBB+ B-8 92925CDN9 BBB/Watch Neg BBB B-9 92925CDP4 BBB-/Watch Neg BBB- B-10 92925CEB4 BB+/Watch Neg BB+ B-11 92925CEC2 BB/Watch Neg BB B-12 92925CED0 BB-/Watch Neg BB- B-13 92925CEE8 B/Watch Neg B WaMu Mortgage Pass-Through Certificates Series 2006-AR7 Trust Series 2006-AR7 Rating ------ Class CUSIP To From ----- ----- -- ---- B-2 93363CAM1 B/Watch Neg B B-3 93363CAN9 B/Watch Neg B WaMu Mortgage Pass-Through Certificates Series 2007-OA1 Trust Series 2007-OA1 Rating ------ Class CUSIP To From ----- ----- -- ---- B-2 92926WAG2 A/Watch Neg A B-3 92926WAH0 BBB/Watch Neg BBB B-4 92926WAJ6 BB/Watch Neg BB B-5 92926WAK3 B/Watch Neg B B-6 92926WAL1 B/Watch Neg B WaMu Mortgage Pass-Through Certificates Series 2007-OA2 Trust Series 2007-OA2 Rating ------ Class CUSIP To From ----- ----- -- ---- B-2 933635AJ3 AA/Watch Neg AA B-3 933635AK0 A/Watch Neg A B-4 933635AL8 BB/Watch Neg BB B-5 933635AM6 B/Watch Neg B B-6 933635AN4 B/Watch Neg B WaMu Mortgage Pass-Through Certificates Series 2007-OA3 Trust Series 2007-OA03 Rating ------ Class CUSIP To From ----- ----- -- ---- B-2 93364AAK8 BBB-/Watch Neg BBB- B-3 93364AAL6 BB+/Watch Neg BB+ WaMu Mortgage Pass-Through Certificates Series 2007-OA4 Trust Series 2007-OA4 Rating ------ Class CUSIP To From ----- ----- -- ---- B-2 93364CAJ7 BBB/Watch Neg BBB B-3 93364CAK4 BBB-/Watch Neg BBB- WaMu Mortgage Pass-Through Certificates Series 2007-OA5 Trust Series 2007-OA5 Rating ------ Class CUSIP To From ----- ----- -- ---- B-1 93364BAH3 BBB+/Watch Neg BBB+ B-2 93364BAJ9 BB/Watch Neg BB B-3 93364BAK6 BB-/Watch Neg BB- B-4 93364BAL4 B/Watch Neg B WaMu Mortgage Pass-Through Certificates, Series 2006-AR9 Series 2006-AR9 Rating ------ Class CUSIP To From ----- ----- -- ---- B3 93363DAM9 AA-/Watch Neg AA- B4 93363DAN7 A+/Watch Neg A+ B5 93363DAP2 A/Watch Neg A B6 93363DAQ0 A-/Watch Neg A- B7 93363DAR8 BBB+/Watch Neg BBB+ B8 93363DAS6 BB/Watch Neg BB B9 93363DAT4 B/Watch Neg B Washington Mutual Mortgage Pass-Through Certificates WMALT Series 2006- AR1 Trust Series 2006-AR1 Rating ------ Class CUSIP To From ----- ----- -- ---- A-1C 93934FJS2 AA/Watch Neg AA B-1 93934FJV5 B/Watch Neg B * S&P: Consumer Discretionary & Auto Sectors Leads Debt Market -------------------------------------------------------------- Recent turmoil in the financial markets related to investment banks, mortgage giants, and insurance companies is having repercussions far and wide, from Wall Street to Main Street, according to an article published by Standard & Poor's. The financial landscape is now characterized by widespread deleveraging and continued tightening of lending as the speculative-grade corporate spread hit 844 basis points on Sept. 22. Given these conditions, it comes as no surprise that another measure of corporate stress within the credit markets--the Standard & Poor's distress ratio--is also on the rise, hitting 29% on Sept. 15. In September, the number of distressed issues rose to 374, with more than $190 billion in outstanding debt, attributable to 221 rated companies, according to the article, titled "U.S. Credit Comment: The Top Of The (Scrap) Heap-Leaders In The Distressed Debt Market." "Within this pool of firms are those whose debt characteristics put them in dire circumstances, and should they default, the dollar amounts affected would be in the billions," said Diane Vazza, head of Standard & Poor's Global Fixed Income Research Group. From strictly a credit perspective, issues trading at levels far in advance of the 1,000-bp threshold pose the greatest risk of default because of either recent sell-offs or a lack of buyers. When looking at the distressed market purely from a credit perspective, consumer discretionary firms lead the way, with issues trading at the most elevated levels. However, when considering the total distressed debt outstanding, the distressed market is heavily concentrated on two major automotive firms and their subsidiaries. * S&P: Capital Goods Shift to Lower Gear as Global Growth Slows --------------------------------------------------------------- U.S. capital goods companies are beginning to feel the pinch of weaker economic times, according to a commentary published by Standard & Poor's Ratings Services. Steady demand for capital equipment and industrial componentry in late-cycle end markets combined with resilience from Europe and emerging economies had cushioned these companies from the impact of the U.S. economic slowdown. But with a faster-than-expected contraction reported across Western Europe and Japan in the second quarter and decelerating growth rates in Eastern European and Asian economies, capital goods companies may not be able to rely on these markets for continued growth, according to the report, "The U.S. Capital Goods Sector Shifts To A Lower Gear As Global Growth Slows." "We expect that weakening demand in the second half of 2008 and into 2009 will constrain the outlook for the capital goods sector, but the deceleration should be gradual," said Standard & Poor's credit analyst Peter Kelly. Prospects for growth in Asia remain positive, and it could take a number of quarters for the slowdown to work through still healthy backlogs in many areas. Earnings and cash flows should also, despite the expected slowdown in order intake, continue to benefit from more stable aftermarket and service revenues and efforts to adjust cost structures and capital spending plans to the weaker environment. The report notes that turbulence in the financial markets is a more immediate risk because it will likely continue to constrain availability of credit, increase counterparty risk, and ultimately may tighten liquidity for those issuers that need to tap the capital markets for either debt refinancing, financial covenant relief, or even working capital funding. S&P's review of capital goods issuers indicates that the sector is not the most vulnerable at this stage compared with other sectors. Nevertheless, in early September S&P recorded the first default in the capital goods sector since the beginning of the credit crisis, and it will continue to monitor developments and any effects on credit quality. * S&P: Composite Credit Spread Hits 314 Bps, Highest in Five Yrs ---------------------------------------------------------------- Standard & Poor's U.S. investment-grade composite credit spread widened to 314 basis points, the widest spread in more than five years. By rating category, all investment-grade spreads widened by more than 10 bps, with the 'AA' spread at 313 bps and the 'A' and 'BBB' spreads both at five-year highs, 307 bps and 367 bps, respectively. This trend is in line with industry spreads. Financial institutions widened to 412 bps, a five-year high, and banks widened to 551 bps, the third-highest spread in five years. In the Standard & Poor's speculative-grade domain, the composite spread widened to 853 bps, driven largely by a big jump in the 'CCC' spread to 1,505 bps. The 'BB' and 'B' spreads widened about 8 bps each to 544 bps and 928 bps, respectively. The speculative-grade credit spread is poised for continued volatility, commensurate with an escalation in speculative- grade defaults over the course of this year. * BOND PRICING: For the Week of Sept. 22 - Sept. 26, 2008 --------------------------------------------------------- Issuer Coupon Maturity Bid Price ------ ------ -------- --------- ABC RAIL PRODUCT 10.5% 12/31/2004 99.98 ABC RAIL PRODUCT 10.5% 1/15/2004 99.98 ACCURIDE CORP 8.5% 2/1/2015 68.50 ADVANCED MED OPT 3.25% 8/1/2026 66.03 ADVANCED MED OPT 3.25% 8/1/2026 65.33 ADVANTA CAP TR 8.99% 12/17/2026 46.75 AHERN RENTALS 9.25% 8/15/2013 55.50 AIRTRAN HOLDINGS 7% 7/1/2023 62.00 ALERIS INTL INC 10% 12/15/2016 68.60 ALESCO FINANCIAL 7.63% 5/15/2027 52.00 ALION SCIENCE 10.25% 2/1/2015 65.03 ALLEGIANCE TEL 11.75% 2/15/2008 0.00 ALLEGIANCE TEL 12.88% 5/15/2008 0.00 AMBAC INC 6.15% 2/7/2087 33.90 AMBASSADORS INTL 3.75% 4/15/2027 38.00 AMD 6% 5/1/2015 49.20 AMD 5.75% 8/15/2012 58.00 AMD 6% 5/1/2015 46.68 AMER & FORGN PWR 5% 3/1/2030 44.75 AMER AXLE & MFG 7.88% 3/1/2017 55.00 AMER AXLE & MFG 5.25% 2/11/2014 60.00 AMER GENL CORP 7.5% 8/11/2010 60.00 AMER GENL FIN 4.5% 8/15/2010 38.25 AMER GENL FIN 8% 8/15/2010 62.00 AMER GENL FIN 4.63% 9/1/2010 74.50 AMER GENL FIN 4.6% 9/15/2010 44.06 AMER GENL FIN 5% 9/15/2010 65.18 AMER GENL FIN 5.2% 9/15/2010 26.01 AMER GENL FIN 4.25% 10/15/2010 34.01 AMER GENL FIN 4.6% 10/15/2010 34.02 AMER GENL FIN 5% 11/15/2010 54.00 AMER GENL FIN 5% 12/15/2010 48.07 AMER GENL FIN 5.5% 12/15/2010 31.50 AMER GENL FIN 5% 1/15/2011 25.01 AMER GENL FIN 4.4% 10/15/2008 51.00 AMER GENL FIN 3.35% 5/15/2009 50.51 AMER GENL FIN 4.4% 5/15/2009 25.26 AMER GENL FIN 4.63% 5/15/2009 71.50 AMER GENL FIN 4% 6/15/2009 53.13 AMER GENL FIN 4.35% 6/15/2009 44.89 AMER GENL FIN 4.4% 7/15/2009 60.00 AMER GENL FIN 5.38% 9/1/2009 74.25 AMER GENL FIN 4.3% 9/15/2009 50.03 AMER GENL FIN 5% 9/15/2009 64.05 AMER GENL FIN 3.88% 10/1/2009 61.00 AMER GENL FIN 4.55% 10/15/2009 46.97 AMER GENL FIN 4% 11/15/2009 60.07 AMER GENL FIN 4.6% 11/15/2009 59.88 AMER GENL FIN 4.13% 1/15/2010 69.50 AMER GENL FIN 4.88% 5/15/2010 50.00 AMER GENL FIN 4.3% 6/15/2010 65.00 AMER GENL FIN 4.75% 6/15/2010 28.88 AMER GENL FIN 5.2% 6/15/2010 51.50 AMER GENL FIN 4.3% 7/15/2010 40.55 AMER GENL FIN 5.35% 7/15/2010 60.04 AMER GENL FIN 6.25% 7/15/2010 50.15 AMER GENL FIN 5.25% 4/15/2011 25.01 AMER GENL FIN 4% 3/15/2011 30.70 AMER GENL FIN 5% 3/15/2011 25.26 AMER GENL FIN 7% 7/15/2015 25.25 AMER GENL FIN 5.5% 4/15/2011 26.00 AMER GENL FIN 5.2% 5/15/2011 27.88 AMER GENL FIN 5.6% 6/15/2011 40.00 AMER GENL FIN 6% 7/15/2011 25.01 AMER GENL FIN 6.25% 7/15/2011 31.50 AMER GENL FIN 6.25% 7/15/2011 43.00 AMER GENL FIN 8.15% 8/15/2011 20.10 AMER GENL FIN 5.63% 8/17/2011 60.10 AMER GENL FIN 4.3% 10/15/2011 25.89 AMER GENL FIN 5.2% 12/15/2011 37.90 AMER GENL FIN 4.63% 3/15/2012 30.60 AMER GENL FIN 5.2% 5/15/2012 55.00 AMER GENL FIN 5.5% 6/15/2012 45.00 AMER GENL FIN 4.1% 7/15/2012 30.26 AMER GENL FIN 4.88% 7/15/2012 31.90 AMER GENL FIN 5.38% 10/1/2012 29.38 AMER GENL FIN 5.25% 12/15/2012 40.00 AMER GENL FIN 5.5% 12/15/2012 40.00 AMER GENL FIN 4.25% 3/15/2013 44.93 AMER GENL FIN 6% 4/15/2013 25.26 AMER GENL FIN 5.4% 5/15/2013 26.00 AMER GENL FIN 5.85% 6/1/2013 30.50 AMER GENL FIN 5.4% 9/15/2013 30.26 AMER GENL FIN 5.5% 5/15/2014 26.26 AMER GENL FIN 5.4% 6/15/2014 30.63 AMER GENL FIN 5.5% 6/15/2014 30.26 AMER GENL FIN 5.55% 9/15/2014 50.10 AMER GENL FIN 6% 10/15/2014 41.88 AMER GENL FIN 6% 10/15/2014 30.00 AMER GENL FIN 6% 12/15/2014 46.60 AMER GENL FIN 6% 12/15/2014 36.00 AMER GENL FIN 6% 12/15/2014 49.00 AMER GENL FIN 6% 1/15/2015 41.75 AMER GENL FIN 7.25% 7/15/2015 41.00 AMER GENL FIN 7.5% 7/15/2015 25.25 AMER GENL FIN 5.4% 12/1/2015 50.50 AMER GENL FIN 5.75% 9/15/2016 40.49 AMER GENL FIN 6.9% 12/15/2017 45.00 AMER GENL INSTIT 7.57% 12/1/2045 19.85 AMER INTL GROUP 5.6% 10/18/2016 35.00 AMER INTL GROUP 5.45% 5/18/2017 53.50 AMER INTL GROUP 5.85% 1/16/2018 52.37 AMER INTL GROUP 5.38% 10/18/2011 59.10 AMER INTL GROUP 8.25% 8/15/2018 56.80 AMER INTL GROUP 6.25% 3/15/2037 12.00 AMER INTL GROUP 4.95% 3/20/2012 46.90 AMER INTL GROUP 4.88% 3/15/2067 17.47 AMER INTL GROUP 7.25% 6/27/2022 28.00 AMER INTL GROUP 5.05% 10/1/2015 55.50 AMER INTL GROUP 4.25% 5/15/2013 58.00 AMER INTL GROUP 6.25% 5/1/2036 48.50 AMER INTL GROUP 5.75% 3/15/2067 49.93 AMERICREDIT CORP 0.75% 9/15/2011 58.03 AMERICREDIT CORP 2.13% 9/15/2013 59.75 AMES TRUE TEMPER 10% 7/15/2012 49.00 AMR CORP 10.4% 3/10/2011 81.70 AMR CORP 9.2% 1/30/2012 68.90 AMR CORP 9% 8/1/2012 68.56 AMR CORP 9% 9/15/2016 49.00 AMR CORP 10.2% 3/15/2020 62.78 AMR CORP 10.15% 5/15/2020 49.95 AMR CORP 9.88% 6/15/2020 45.00 AMR CORP 10.29% 3/8/2021 40.50 AMR CORP 10% 4/15/2021 63.67 AMR CORP 9.75% 8/15/2021 45.00 AMR CORP 9.8% 10/1/2021 51.50 ANTIGENICS 5.25% 2/1/2025 30.50 ASBURY AUTO GRP 7.63% 3/15/2017 67.38 ASBURY AUTO GRP 3% 9/15/2012 58.25 ASHTON WOODS USA 9.5% 10/1/2015 58.25 ASPECT MEDICAL 2.5% 6/15/2014 57.25 ATHEROGENICS INC 4.5% 3/1/2011 11.50 ATHEROGENICS INC 4.5% 9/1/2008 11.50 ATHEROGENICS INC 1.5% 2/1/2012 11.50 AVENTINE RENEW 10% 4/1/2017 55.00 AVIS BUDGET CAR 7.63% 5/15/2014 71.00 AVIS BUDGET CAR 7.75% 5/15/2016 63.75 BALLY TOTAL FITN 13% 7/15/2011 17.00 BANK NEW ENGLAND 9.88% 9/15/1999 3.00 BANK NEW ENGLAND 8.75% 4/1/1999 5.75 BANK OF AMER CRP 4.5% 6/15/2028 68.38 BANK UNITED 8% 3/15/2009 0.25 BANKUNITED CAP 3.13% 3/1/2034 22.90 BAUSCH & LOMB 7.13% 8/1/2028 66.50 BB&T CAPT TR IV 6.82% 6/12/2057 69.00 BBN CORP 6% 4/1/2012 0.01 BEARINGPOINT INC 4.1% 12/15/2024 32.73 BEAZER HOMES USA 6.88% 7/15/2015 64.00 BEAZER HOMES USA 6.5% 11/15/2013 64.50 BEAZER HOMES USA 8.13% 6/15/2016 67.50 BERRY PLASTICS 10.25% 3/1/2016 71.00 BOISE CASCADE 7.13% 10/15/2014 68.25 BON-TON DEPT STR 10.25% 3/15/2014 31.50 BORDEN INC 8.38% 4/15/2016 44.00 BORDEN INC 9.2% 3/15/2021 60.00 BORDEN INC 7.88% 2/15/2023 53.00 BOWATER INC 9.38% 12/15/2021 45.88 BOWATER INC 9.5% 10/15/2012 50.00 BOWATER INC 6.5% 6/15/2013 40.88 BRODER BROS CO 11.25% 10/15/2010 66.13 BUDGET GROUP INC 9.13% 4/1/2006 0.06 BUFFETS INC 12.5% 11/1/2014 1.50 BURLINGTON COAT 11.13% 4/15/2014 61.00 BURLINGTON NORTH 3.2% 1/1/2045 49.61 CAPITAL 1 IV 6.75% 2/17/2037 50.02 CAPITAL ONE III 7.69% 8/15/2036 46.50 CCH I LLC 10% 5/15/2014 38.00 CCH I LLC 11.13% 1/15/2014 45.00 CCH I LLC 9.92% 4/1/2014 44.00 CCH I/CCH I CP 11% 10/1/2015 68.25 CCH I/CCH I CP 11% 10/1/2015 66.50 CELL GENESYS INC 3.13% 11/1/2011 41.50 CELL THERAPEUTIC 5.75% 12/15/2011 10.25 CHAMPION ENTERPR 2.75% 11/1/2037 61.76 CHANDLER USA INC 8.75% 7/16/2014 70.00 CHARMING SHOPPES 1.13% 5/1/2014 64.95 CHARTER COMM HLD 11.13% 1/15/2011 49.68 CHARTER COMM HLD 11.75% 5/15/2011 65.00 CHARTER COMM HLD 10% 5/15/2011 54.00 CHARTER COMM INC 6.5% 10/1/2027 36.05 CHENIERE ENERGY 2.25% 8/1/2012 16.00 CHS ELECTRONICS 9.88% 4/15/2005 99.98 CIENA CORP 0.88% 6/15/2017 50.33 CIENA CORP 0.25% 5/1/2013 60.75 CIRCUS CIRCUS 7.63% 7/15/2013 71.30 CIT GROUP INC 6% 4/1/2036 41.00 CIT GROUP INC 5.4% 3/7/2013 47.82 CIT GROUP INC 7.25% 3/15/2013 68.68 CIT GROUP INC 7.9% 3/15/2013 45.00 CIT GROUP INC 5% 2/13/2014 53.40 CIT GROUP INC 5.13% 9/30/2014 51.00 CIT GROUP INC 5% 2/1/2015 55.02 CIT GROUP INC 5.8% 12/15/2015 45.10 CIT GROUP INC 5.4% 1/30/2016 55.15 CIT GROUP INC 5.85% 9/15/2016 44.75 CIT GROUP INC 5.95% 9/15/2016 45.00 CIT GROUP INC 6.05% 9/15/2016 26.00 CIT GROUP INC 6% 11/15/2016 30.62 CIT GROUP INC 5.8% 12/15/2016 29.73 CIT GROUP INC 5.65% 2/13/2017 42.00 CIT GROUP INC 6.25% 11/15/2017 59.76 CIT GROUP INC 6.15% 9/15/2021 23.73 CIT GROUP INC 6.25% 9/15/2021 49.00 CIT GROUP INC 6.25% 11/15/2021 39.10 CIT GROUP INC 5.95% 2/15/2022 33.50 CIT GROUP INC 5.85% 3/15/2022 39.50 CIT GROUP INC 5.9% 3/15/2022 46.50 CIT GROUP INC 6% 5/15/2022 44.55 CIT GROUP INC 6.75% 12/15/2022 71.30 CIT GROUP INC 6.1% 3/15/2067 39.75 CIT GROUP INC 4.25% 2/1/2010 60.90 CIT GROUP INC 5.2% 11/3/2010 57.00 CIT GROUP INC 5.25% 11/15/2010 54.96 CIT GROUP INC 4.75% 12/15/2010 50.05 CIT GROUP INC 6.5% 3/15/2011 64.50 CIT GROUP INC 6.75% 3/15/2011 70.00 CIT GROUP INC 5.6% 4/27/2011 62.00 CIT GROUP INC 5.8% 7/28/2011 49.90 CIT GROUP INC 5.25% 11/15/2011 68.00 CIT GROUP INC 5.4% 2/13/2012 49.82 CIT GROUP INC 7.63% 11/30/2012 61.82 CITIGROUP INC 8.4% #N/A N Ap 61.00 CITIGROUP INC 5.88% 2/22/2033 73.47 CITIGROUP INC 5.88% 5/29/2037 77.14 CITIGROUP INC 6.13% 8/25/2036 65.00 CITIZENS UTIL CO 7% 11/1/2025 58.58 CITIZENS UTIL CO 6.8% 8/15/2026 66.00 CITIZENS UTIL CO 7.45% 7/1/2035 58.00 CITIZENS UTIL CO 7.05% 10/1/2046 49.50 CLAIRE'S STORES 9.25% 6/1/2015 44.00 CLAIRE'S STORES 9.63% 6/1/2015 30.00 CLAIRE'S STORES 10.5% 6/1/2017 36.63 CLEAR CHANNEL 5.5% 9/15/2014 40.00 CLEAR CHANNEL 4.9% 5/15/2015 38.46 CLEAR CHANNEL 5.5% 12/15/2016 38.40 CLEAR CHANNEL 6.88% 6/15/2018 43.20 CLEAR CHANNEL 7.25% 10/15/2027 42.50 CLEAR CHANNEL 5% 3/15/2012 56.50 CLEAR CHANNEL 5.75% 1/15/2013 50.24 CLEAR CHANNEL 4.4% 5/15/2011 65.00 CMP SUSQUEHANNA 9.88% 5/15/2014 63.50 COEUR D'ALENE 3.25% 3/15/2028 59.00 COGENT COMMUNICA 1% 6/15/2027 49.95 COLLINS & AIKMAN 10.75% 12/31/2011 0.00 COLUMBIA/HCA 7.5% 11/15/2095 68.50 COMERICA BANK 5.75% 11/21/2016 68.50 COMERICA CAP TR 6.58% 2/20/2037 39.50 COMPUCREDIT 3.63% 5/30/2025 33.15 COMPUCREDIT 5.88% 11/30/2035 27.88 CONSTAR INTL 11% 12/1/2012 20.00 COOPER TIRE&RUBR 7.63% 3/15/2027 71.07 COOPER-STANDARD 8.38% 12/15/2014 62.00 CROWN CORK &SEAL 7.5% 12/15/2096 69.11 DARDEN RESTAUR 6% 8/15/2035 70.05 DECODE GENETICS 3.5% 4/15/2011 32.10 DELPHI CORP 6.2% 11/15/2033 0.88 DELPHI CORP 8.25% 10/15/2033 0.06 DELPHI CORP 6.5% 8/15/2013 12.00 DELTA AIR LINES 8% 12/1/2015 45.75 DELTA MILLS INC 9.63% 9/1/2007 9.00 DEX MEDIA INC 8% 11/15/2013 53.50 DILLARDS INC 7% 12/1/2028 58.00 DIVA SYSTEMS 12.63% 3/1/2008 0.00 ENCOMPASS SERVIC 10.5% 5/1/2009 0.01 EPICOR SOFTWARE 2.38% 5/15/2027 62.37 EPIX MEDICAL INC 3% 6/15/2024 60.75 EVERGREEN SOLAR 4% 7/15/2013 58.75 EXODUS COMM INC 4.75% 7/15/2008 0.01 EXODUS COMM INC 11.63% 7/15/2010 0.01 EXODUS COMM INC 5.25% 2/15/2008 0.01 EXPRESSJET HLDS 11.25% 8/1/2023 60.00 FEDDERS NORTH AM 9.88% 3/1/2014 1.25 FIBERTOWER CORP 9% 11/15/2012 65.00 FIFTH THIRD BANC 4.5% 6/1/2018 63.00 FIFTH THIRD BANK 4.75% 2/1/2015 69.55 FIFTH THIRD BANK 8.25% 3/1/2038 70.00 FIFTH THIRD CAP 6.5% 4/15/2037 43.00 FIN SEC ASSUR 6.4% 12/15/2066 60.17 FINLAY FINE JWLY 8.38% 6/1/2012 14.00 FINOVA GROUP 7.5% 11/15/2009 11.50 FIRST DATA CORP 5.63% 11/1/2011 40.60 FIRST DATA CORP 4.7% 8/1/2013 54.90 FIRST DATA CORP 4.95% 6/15/2015 54.18 FIRST DATA CORP 4.85% 10/1/2014 35.00 FIRST TEN CAP II 6.3% 4/15/2034 72.00 FIRST TENN CAP 8.07% 1/6/2027 56.00 FIRST UNION CORP 6.55% 10/15/2035 59.02 FIRST UNION INST 8.04% 12/1/2026 15.00 FIVE STAR QUALIT 3.75% 10/15/2026 61.50 FORD HOLDINGS 9.38% 3/1/2020 40.47 FORD HOLDINGS 9.3% 3/1/2030 53.43 FORD MOTOR CO 6.5% 8/1/2018 40.50 FORD MOTOR CO 7.7% 5/15/2097 41.87 FORD MOTOR CO 9.22% 9/15/2021 50.46 FORD MOTOR CO 8.88% 1/15/2022 50.10 FORD MOTOR CO 7.13% 11/15/2025 37.00 FORD MOTOR CO 7.5% 8/1/2026 40.00 FORD MOTOR CO 6.63% 2/15/2028 33.00 FORD MOTOR CO 6.63% 10/1/2028 33.50 FORD MOTOR CO 6.38% 2/1/2029 31.02 FORD MOTOR CO 9.98% 2/15/2047 43.76 FORD MOTOR CO 7.45% 7/16/2031 54.50 FORD MOTOR CO 8.9% 1/15/2032 45.00 FORD MOTOR CO 9.95% 2/15/2032 54.00 FORD MOTOR CO 7.4% 11/1/2046 37.00 FORD MOTOR CO 4.25% 12/15/2036 61.50 FORD MOTOR CO 7.75% 6/15/2043 41.29 FORD MOTOR CRED 6.15% 5/20/2011 70.00 FORD MOTOR CRED 6.2% 5/20/2011 62.60 FORD MOTOR CRED 6.1% 6/20/2011 68.64 FORD MOTOR CRED 6.2% 6/20/2011 64.79 FORD MOTOR CRED 6.25% 6/20/2011 69.19 FORD MOTOR CRED 5.65% 7/20/2011 57.00 FORD MOTOR CRED 5.85% 7/20/2011 73.92 FORD MOTOR CRED 5.9% 7/20/2011 58.25 FORD MOTOR CRED 5.55% 8/22/2011 62.66 FORD MOTOR CRED 5.6% 8/22/2011 57.10 FORD MOTOR CRED 5.75% 8/22/2011 53.75 FORD MOTOR CRED 5.8% 8/22/2011 67.00 FORD MOTOR CRED 5.4% 9/20/2011 55.64 FORD MOTOR CRED 5.25% 9/20/2011 46.00 FORD MOTOR CRED 5.55% 9/20/2011 64.41 FORD MOTOR CRED 5.5% 9/20/2011 67.00 FORD MOTOR CRED 5.4% 10/20/2011 60.13 FORD MOTOR CRED 5.6% 9/20/2011 64.13 FORD MOTOR CRED 5.45% 10/20/2011 57.26 FORD MOTOR CRED 5.4% 10/20/2011 60.46 FORD MOTOR CRED 7.25% 10/25/2011 63.00 FORD MOTOR CRED 5.5% 10/20/2011 65.00 FORD MOTOR CRED 5.6% 11/21/2011 67.00 FORD MOTOR CRED 7.35% 11/7/2011 47.00 FORD MOTOR CRED 5.65% 12/20/2011 53.07 FORD MOTOR CRED 5.6% 11/21/2011 46.83 FORD MOTOR CRED 5.75% 12/20/2011 48.50 FORD MOTOR CRED 5.7% 12/20/2011 65.37 FORD MOTOR CRED 5.85% 1/20/2012 64.19 FORD MOTOR CRED 5.7% 1/20/2012 63.85 FORD MOTOR CRED 7.3% 1/23/2012 45.49 FORD MOTOR CRED 6% 1/20/2012 54.00 FORD MOTOR CRED 5.9% 2/21/2012 63.72 FORD MOTOR CRED 5.75% 2/21/2012 61.40 FORD MOTOR CRED 6.05% 3/20/2012 59.81 FORD MOTOR CRED 6.25% 2/21/2012 46.72 FORD MOTOR CRED 6.6% 3/20/2012 53.30 FORD MOTOR CRED 6.25% 3/20/2012 65.74 FORD MOTOR CRED 7.8% 6/1/2012 64.00 FORD MOTOR CRED 7.35% 5/15/2012 46.41 FORD MOTOR CRED 6.52% 3/10/2013 57.00 FORD MOTOR CRED 7% 8/15/2012 45.33 FORD MOTOR CRED 7.05% 9/20/2013 50.84 FORD MOTOR CRED 6.85% 9/20/2013 39.87 FORD MOTOR CRED 7.1% 9/20/2013 53.30 FORD MOTOR CRED 7.1% 9/20/2013 53.00 FORD MOTOR CRED 6.6% 10/21/2013 39.00 FORD MOTOR CRED 7% 10/1/2013 62.50 FORD MOTOR CRED 6.75% 10/21/2013 45.86 FORD MOTOR CRED 6.65% 10/21/2013 46.35 FORD MOTOR CRED 6.25% 12/20/2013 43.50 FORD MOTOR CRED 6.25% 12/20/2013 45.90 FORD MOTOR CRED 6.55% 12/20/2013 43.25 FORD MOTOR CRED 6.5% 12/20/2013 49.50 FORD MOTOR CRED 5.75% 1/21/2014 47.88 FORD MOTOR CRED 5.65% 1/21/2014 52.80 FORD MOTOR CRED 5.75% 2/20/2014 50.00 FORD MOTOR CRED 6% 1/21/2014 44.00 FORD MOTOR CRED 5.9% 2/20/2014 55.75 FORD MOTOR CRED 5.75% 2/20/2014 36.45 FORD MOTOR CRED 6% 3/20/2014 45.00 FORD MOTOR CRED 6.05% 2/20/2014 62.00 FORD MOTOR CRED 6% 3/20/2014 42.96 FORD MOTOR CRED 6% 3/20/2014 41.25 FORD MOTOR CRED 6.05% 3/20/2014 38.45 FORD MOTOR CRED 6% 3/20/2014 41.00 FORD MOTOR CRED 6.2% 4/21/2014 40.59 FORD MOTOR CRED 6.05% 4/21/2014 41.90 FORD MOTOR CRED 6.35% 4/21/2014 36.78 FORD MOTOR CRED 6.25% 4/21/2014 39.00 FORD MOTOR CRED 6.3% 5/20/2014 36.00 FORD MOTOR CRED 6.3% 5/20/2014 41.00 FORD MOTOR CRED 6.95% 5/20/2014 45.00 FORD MOTOR CRED 6.85% 5/20/2014 42.63 FORD MOTOR CRED 6.75% 6/20/2014 41.50 FORD MOTOR CRED 6.65% 6/20/2014 51.64 FORD MOTOR CRED 6.8% 6/20/2014 40.50 FORD MOTOR CRED 6.8% 6/20/2014 44.12 FORD MOTOR CRED 6.55% 7/21/2014 44.83 FORD MOTOR CRED 6.85% 6/20/2014 51.25 FORD MOTOR CRED 6% 11/20/2014 49.29 FORD MOTOR CRED 6% 11/20/2014 39.30 FORD MOTOR CRED 6.05% 12/22/2014 37.64 FORD MOTOR CRED 6% 11/20/2014 43.70 FORD MOTOR CRED 6.05% 12/22/2014 39.77 FORD MOTOR CRED 6.05% 12/22/2014 40.00 FORD MOTOR CRED 6% 1/20/2015 39.15 FORD MOTOR CRED 6.15% 12/22/2014 40.42 FORD MOTOR CRED 6.25% 1/20/2015 38.00 FORD MOTOR CRED 6.15% 1/20/2015 46.30 FORD MOTOR CRED 6.05% 2/20/2015 32.57 FORD MOTOR CRED 6% 2/20/2015 30.66 FORD MOTOR CRED 6.5% 2/20/2015 31.78 FORD MOTOR CRED 6.1% 2/20/2015 33.47 FORD MOTOR CRED 6.25% 3/20/2015 33.55 FORD MOTOR CRED 6.2% 3/20/2015 50.00 FORD MOTOR CRED 6.8% 3/20/2015 42.19 FORD MOTOR CRED 6.5% 3/20/2015 50.60 FORD MOTOR CRED 7.3% 4/20/2015 50.66 FORD MOTOR CRED 7.35% 3/20/2015 43.00 FORD MOTOR CRED 7.35% 9/15/2015 46.44 FORD MOTOR CRED 7.9% 5/18/2015 55.75 FORD MOTOR CRED 8% 12/15/2016 66.50 FORD MOTOR CRED 7.55% 9/30/2015 100.40 FORD MOTOR CRED 7.25% 7/20/2017 45.04 FORD MOTOR CRED 7.25% 7/20/2017 40.00 FORD MOTOR CRED 6.4% 8/20/2010 62.19 FORD MOTOR CRED 7.4% 8/21/2017 53.00 FORD MOTOR CRED 6.15% 9/20/2010 61.65 FORD MOTOR CRED 5.75% 10/20/2010 59.69 FORD MOTOR CRED 5.6% 12/20/2010 62.01 FORD MOTOR CRED 5.65% 12/20/2010 57.33 FORD MOTOR CRED 7.38% 2/1/2011 67.02 FORD MOTOR CRED 5% 2/22/2011 69.21 FORD MOTOR CRED 5.1% 2/22/2011 68.98 FORD MOTOR CRED 5.2% 3/21/2011 63.00 FORD MOTOR CRED 5.2% 3/21/2011 67.93 FORD MOTOR CRED 5.25% 3/21/2011 58.72 FORD MOTOR CRED 5.25% 3/21/2011 59.00 FORD MOTOR CRED 5.3% 3/21/2011 68.96 FORD MOTOR CRED 5.45% 4/20/2011 58.99 FORD MOTOR CRED 5.5% 4/20/2011 67.65 FORD MOTOR CRED 5.6% 4/20/2011 68.00 FORD MOTOR CRED 5.7% 5/20/2011 69.00 FORD MOTOR CRED 7.5% 8/20/2032 45.38 FORD MOTOR CRED 6% 6/21/2010 63.35 FORD MOTOR CRED 6.3% 5/20/2010 75.71 FORD MOTOR CRED 5.95% 5/20/2010 65.62 FORD MOTOR CRED 6.05% 9/20/2010 61.00 FRANKLIN BANK 4.5% 5/1/2027 26.50 FREMONT GEN CORP 7.88% 3/17/2009 45.00 FRONTIER AIRLINE 5% 12/15/2025 25.00 GEN ELEC CAP CRP 5.05% 7/15/2034 82.00 GEN ELEC CAP CRP 4.8% 6/15/2028 73.25 GENERAL MOTORS 7.7% 4/15/2016 51.22 GENERAL MOTORS 8.8% 3/1/2021 42.00 GENERAL MOTORS 7.38% 5/23/2048 33.66 GENERAL MOTORS 9.4% 7/15/2021 42.00 GENERAL MOTORS 8.25% 7/15/2023 40.00 GENERAL MOTORS 7.2% 1/15/2011 60.50 GENERAL MOTORS 9.45% 11/1/2011 50.87 GENERAL MOTORS 7.13% 7/15/2013 49.00 GENERAL MOTORS 8.38% 7/15/2033 44.00 GENERAL MOTORS 8.1% 6/15/2024 39.00 GENERAL MOTORS 6.75% 5/1/2028 37.00 GENERAL MOTORS 7.4% 9/1/2025 30.00 GENL GROWTH PROP 3.98% 4/15/2027 67.78 GEORGIA GULF CRP 7.13% 12/15/2013 70.50 GLOBAL INDUS LTD 2.75% 8/1/2027 56.84 GLOBAL INDUS LTD 2.75% 8/1/2027 59.25 GLOBALSTAR INC 5.75% 4/1/2028 47.33 GMAC 7.25% 12/15/2012 32.00 GMAC 5.05% 7/15/2009 67.50 GMAC 5% 8/15/2009 66.28 GMAC 5.1% 8/15/2009 66.76 GMAC 7.2% 8/15/2009 67.63 GMAC 5% 9/15/2009 64.23 GMAC 4.9% 10/15/2009 69.08 GMAC 5% 10/15/2009 63.90 GMAC 5.2% 11/15/2009 59.73 GMAC 5.2% 11/15/2009 63.03 GMAC 5.35% 12/15/2009 55.00 GMAC 5.4% 12/15/2009 69.31 GMAC 5.5% 1/15/2010 69.81 GMAC 6% 1/15/2010 57.01 GMAC 5.85% 2/15/2010 63.34 GMAC 6% 2/15/2010 57.06 GMAC 6% 2/15/2010 67.00 GMAC 6.05% 3/15/2010 60.43 GMAC 7% 3/15/2010 55.00 GMAC 8.05% 4/15/2010 53.30 GMAC 8% 6/15/2010 50.86 GMAC 8% 6/15/2010 60.18 GMAC 8% 7/15/2010 63.53 GMAC 8.2% 7/15/2010 56.00 GMAC 8.5% 10/15/2010 66.13 GMAC 6.75% 9/15/2011 50.57 GMAC 6.63% 10/15/2011 37.00 GMAC 6.75% 10/15/2011 52.75 GMAC 6.75% 10/15/2011 43.81 GMAC 7% 10/15/2011 36.11 GMAC 6.5% 7/15/2012 37.48 GMAC 7.13% 8/15/2012 31.66 GMAC 7.25% 8/15/2012 40.00 GMAC 6.88% 8/28/2012 40.20 GMAC 6.75% 9/15/2012 27.00 GMAC 6.75% 9/15/2012 31.23 GMAC 7% 9/15/2012 30.00 GMAC 7.1% 9/15/2012 31.20 GMAC 6.75% 10/15/2012 36.28 GMAC 6.88% 10/15/2012 30.19 GMAC 7% 10/15/2012 40.00 GMAC 7.5% 10/15/2012 27.00 GMAC 7.75% 10/15/2012 39.76 GMAC 7% 11/15/2012 41.90 GMAC 7.15% 11/15/2012 41.00 GMAC 7.63% 11/15/2012 39.56 GMAC 7.88% 11/15/2012 44.50 GMAC 7% 12/15/2012 37.38 GMAC 7.13% 12/15/2012 41.00 GMAC 7.25% 12/15/2012 46.84 GMAC 7% 1/15/2013 35.26 GMAC 7.1% 1/15/2013 29.48 GMAC 7.1% 1/15/2013 30.80 GMAC 6.45% 2/15/2013 45.00 GMAC 6.5% 2/15/2013 31.00 GMAC 6.65% 2/15/2013 47.75 GMAC 6.8% 2/15/2013 42.06 GMAC 6.25% 3/15/2013 26.50 GMAC 6.3% 3/15/2013 37.42 GMAC 6.4% 3/15/2013 45.51 GMAC 6.5% 3/15/2013 47.00 GMAC 6.5% 4/15/2013 38.80 GMAC 6.75% 4/15/2013 33.63 GMAC 6.75% 4/15/2013 45.50 GMAC 6.8% 4/15/2013 31.00 GMAC 6.88% 4/15/2013 37.42 GMAC 5.85% 5/15/2013 44.13 GMAC 6.1% 5/15/2013 52.76 GMAC 6.35% 5/15/2013 38.00 GMAC 6.5% 5/15/2013 40.00 GMAC 5.7% 6/15/2013 29.00 GMAC 5.85% 6/15/2013 26.71 GMAC 5.85% 6/15/2013 37.00 GMAC 5.85% 6/15/2013 24.69 GMAC 6.5% 6/15/2013 39.02 GMAC 6% 7/15/2013 42.00 GMAC 6.25% 7/15/2013 45.00 GMAC 6.38% 8/1/2013 45.66 GMAC 6.5% 8/15/2013 35.75 GMAC 6.15% 9/15/2013 37.57 GMAC 5.7% 10/15/2013 36.05 GMAC 6.25% 10/15/2013 44.13 GMAC 6.3% 10/15/2013 35.00 GMAC 6% 11/15/2013 37.44 GMAC 6.1% 11/15/2013 42.99 GMAC 6.15% 11/15/2013 31.91 GMAC 6.2% 11/15/2013 29.00 GMAC 6.25% 11/15/2013 31.25 GMAC 6.3% 11/15/2013 36.75 GMAC 6.5% 11/15/2013 31.99 GMAC 5.7% 12/15/2013 39.00 GMAC 5.9% 12/15/2013 43.50 GMAC 5.9% 12/15/2013 38.25 GMAC 6% 12/15/2013 32.50 GMAC 6.15% 12/15/2013 29.47 GMAC 5.25% 1/15/2014 35.89 GMAC 5.35% 1/15/2014 34.49 GMAC 5.75% 1/15/2014 36.26 GMAC 6.38% 1/15/2014 34.12 GMAC 6.7% 5/15/2014 26.88 GMAC 6.7% 5/15/2014 37.30 GMAC 6.7% 6/15/2014 27.00 GMAC 6.75% 6/15/2014 39.50 GMAC 6.75% 12/1/2014 37.65 GMAC 9% 7/15/2015 37.67 GMAC 8% 8/15/2015 52.56 GMAC 8.4% 8/15/2015 44.00 GMAC 8.4% 8/15/2015 49.56 GMAC 8.65% 8/15/2015 40.70 GMAC 6.75% 7/15/2016 32.00 GMAC 6.6% 8/15/2016 28.00 GMAC 6.7% 8/15/2016 40.70 GMAC 6.75% 8/15/2016 30.00 GMAC 6.88% 8/15/2016 28.00 GMAC 6.75% 9/15/2016 28.50 GMAC 7.38% 11/15/2016 27.00 GMAC 7.5% 11/15/2016 28.00 GMAC 6.75% 6/15/2017 22.78 GMAC 6.9% 6/15/2017 35.27 GMAC 6.95% 6/15/2017 27.83 GMAC 7% 6/15/2017 31.00 GMAC 7% 7/15/2017 34.00 GMAC 7.5% 8/15/2017 24.17 GMAC 7.25% 9/15/2017 28.50 GMAC 7.25% 9/15/2017 30.00 GMAC 7.25% 9/15/2017 23.87 GMAC 7.25% 9/15/2017 28.50 GMAC 7.13% 10/15/2017 28.00 GMAC 7.2% 10/15/2017 29.52 GMAC 7.2% 10/15/2017 27.65 GMAC 7.75% 10/15/2017 27.00 GMAC 8% 10/15/2017 43.13 GMAC 7.5% 11/15/2017 31.00 GMAC 7.5% 11/15/2017 27.00 GMAC 8% 11/15/2017 31.50 GMAC 8.13% 11/15/2017 33.37 GMAC 7.3% 12/15/2017 32.10 GMAC 7.4% 12/15/2017 29.00 GMAC 7.5% 12/15/2017 30.20 GMAC 7.5% 12/15/2017 31.00 GMAC 7.25% 1/15/2018 24.49 GMAC 7.3% 1/15/2018 26.50 GMAC 7.3% 1/15/2018 30.00 GMAC 7% 2/15/2018 31.00 GMAC 7% 2/15/2018 33.00 GMAC 7% 2/15/2018 42.75 GMAC 6.75% 3/15/2018 22.42 GMAC 7% 3/15/2018 28.15 GMAC 7.05% 3/15/2018 30.37 GMAC 7.05% 3/15/2018 32.00 GMAC 7.05% 4/15/2018 33.00 GMAC 7.25% 4/15/2018 34.09 GMAC 7.25% 4/15/2018 28.50 GMAC 7.35% 4/15/2018 22.99 GMAC 7.38% 4/15/2018 30.28 GMAC 6.6% 5/15/2018 24.76 GMAC 6.85% 5/15/2018 25.00 GMAC 7% 5/15/2018 25.75 GMAC 6.5% 6/15/2018 27.00 GMAC 6.65% 6/15/2018 38.00 GMAC 6.7% 6/15/2018 32.50 GMAC 6.7% 6/15/2018 30.50 GMAC 6.75% 7/15/2018 37.93 GMAC 6.88% 7/15/2018 29.00 GMAC 6.9% 7/15/2018 24.76 GMAC 6.9% 8/15/2018 20.89 GMAC 7% 8/15/2018 29.95 GMAC 7.25% 8/15/2018 32.88 GMAC 7.25% 8/15/2018 31.00 GMAC 6.75% 9/15/2018 31.50 GMAC 6.8% 9/15/2018 34.00 GMAC 7% 9/15/2018 29.50 GMAC 7.15% 9/15/2018 23.77 GMAC 7.25% 9/15/2018 27.00 GMAC 6.65% 10/15/2018 29.00 GMAC 6.65% 10/15/2018 26.80 GMAC 6.75% 10/15/2018 32.00 GMAC 6.8% 10/15/2018 27.50 GMAC 6.5% 11/15/2018 30.00 GMAC 6.7% 11/15/2018 34.00 GMAC 6.75% 11/15/2018 33.13 GMAC 6.25% 12/15/2018 33.25 GMAC 6.4% 12/15/2018 35.00 GMAC 6.5% 12/15/2018 29.88 GMAC 6.5% 12/15/2018 33.00 GMAC 5.9% 1/15/2019 27.00 GMAC 5.9% 1/15/2019 26.10 GMAC 6.25% 1/15/2019 33.63 GMAC 5.9% 2/15/2019 34.46 GMAC 6% 2/15/2019 31.00 GMAC 6% 2/15/2019 30.77 GMAC 6% 2/15/2019 35.00 GMAC 6% 3/15/2019 29.00 GMAC 6% 3/15/2019 28.00 GMAC 6% 3/15/2019 27.00 GMAC 6% 3/15/2019 26.00 GMAC 6% 3/15/2019 26.10 GMAC 6% 4/15/2019 25.75 GMAC 6.2% 4/15/2019 28.38 GMAC 6.25% 4/15/2019 26.00 GMAC 6.35% 4/15/2019 30.55 GMAC 6.25% 5/15/2019 29.75 GMAC 6.5% 5/15/2019 28.00 GMAC 6.75% 5/15/2019 33.45 GMAC 6.75% 5/15/2019 32.50 GMAC 6.6% 6/15/2019 37.44 GMAC 6.6% 6/15/2019 31.00 GMAC 6.7% 6/15/2019 28.00 GMAC 6.75% 6/15/2019 31.93 GMAC 6.75% 6/15/2019 38.61 GMAC 6.25% 7/15/2019 27.66 GMAC 6.35% 7/15/2019 28.00 GMAC 6.35% 7/15/2019 28.54 GMAC 6.05% 8/15/2019 26.39 GMAC 6.05% 8/15/2019 34.00 GMAC 6.15% 8/15/2019 29.25 GMAC 6.3% 8/15/2019 35.00 GMAC 6.3% 8/15/2019 28.75 GMAC 6% 9/15/2019 31.00 GMAC 6% 9/15/2019 26.78 GMAC 6.1% 9/15/2019 28.00 GMAC 6.15% 9/15/2019 32.00 GMAC 5.9% 10/15/2019 30.00 GMAC 6.05% 10/15/2019 27.00 GMAC 6.13% 10/15/2019 33.00 GMAC 6.15% 10/15/2019 36.00 GMAC 6.4% 11/15/2019 28.75 GMAC 6.4% 11/15/2019 30.55 GMAC 6.55% 12/15/2019 28.69 GMAC 6.55% 12/15/2019 45.25 GMAC 6.7% 12/15/2019 31.00 GMAC 6.5% 1/15/2020 39.00 GMAC 6.5% 2/15/2020 27.87 GMAC 6.65% 2/15/2020 34.42 GMAC 6.75% 3/15/2020 42.73 GMAC 9% 7/15/2020 32.32 GMAC 9% 7/15/2020 41.00 GMAC 7% 2/15/2021 24.47 GMAC 7% 9/15/2021 31.50 GMAC 7% 9/15/2021 32.58 GMAC 7% 6/15/2022 22.47 GMAC 7% 11/15/2023 28.75 GMAC 7% 11/15/2024 35.00 GMAC 7% 11/15/2024 28.75 GMAC 7% 11/15/2024 27.00 GMAC 7.15% 1/15/2025 38.48 GMAC 7.25% 1/15/2025 27.00 GMAC 7.25% 2/15/2025 33.95 GMAC 7.15% 3/15/2025 36.00 GMAC 7.25% 3/15/2025 26.00 GMAC 7.5% 3/15/2025 27.00 GMAC 8% 3/15/2025 43.25 GMAC LLC 6.6% 6/15/2012 54.58 GMAC LLC 6.7% 7/15/2012 47.00 GMAC LLC 6.6% 6/15/2012 54.58 GMAC LLC 7.15% 7/15/2012 59.26 GMAC LLC 6.5% 6/15/2012 54.34 GMAC LLC 6.5% 6/15/2012 48.36 GMAC LLC 6.63% 5/15/2012 40.00 GMAC LLC 6.5% 5/15/2012 54.15 GMAC LLC 6% 12/15/2011 45.02 GMAC LLC 6% 4/1/2011 46.00 GMAC LLC 7% 7/15/2012 54.91 GMAC LLC 7.1% 7/15/2012 52.25 GMAC LLC 6.75% 7/15/2012 41.00 GOLDMAN SACHS 6.35% 2/15/2034 68.18 GOLDMAN SACHS GP 6.75% 10/1/2037 64.49 GOLDMAN SACHS GP 6.45% 5/1/2036 64.00 GOLDMAN SACHS GP 5.95% 1/15/2027 81.00 HARRAHS OPER CO 10.75% 2/1/2016 53.01 HARRAHS OPER CO 5.75% 10/1/2017 26.50 HARRAHS OPER CO 6.5% 6/1/2016 24.62 HARRAHS OPER CO 5.63% 6/1/2015 29.50 HARRAHS OPER CO 5.38% 12/15/2013 30.00 HARRAHS OPER CO 8% 2/1/2011 61.50 HARRY & DAVID OP 9% 3/1/2013 55.17 HARTFORD LIFE GL 5.5% 1/15/2025 25.00 HAWAIIAN TELCOM 9.75% 5/1/2013 26.00 HAWAIIAN TELCOM 12.5% 5/1/2015 14.25 HERBST GAMING 8.13% 6/1/2012 6.00 HERBST GAMING 7% 11/15/2014 10.10 HERCULES INC 6.5% 6/30/2029 65.00 HERTZ CORP 7% 1/15/2028 64.55 HIBERNIA CORP 5.35% 5/1/2014 65.49 HILTON HOTELS 7.5% 12/15/2017 63.50 HINES NURSERIES 10.25% 10/1/2011 15.00 HRP MYRTLE BEACH 12.5% 4/1/2013 49.50 HUMAN GENOME 2.25% 8/15/2012 67.08 HUNTINGTON CAPIT 6.65% 5/15/2037 30.00 HUTCHINSON TECH 3.25% 1/15/2026 56.86 IDEARC INC 8% 11/15/2016 31.63 IMPERIAL CREDIT 9.88% 1/15/2007 99.98 INDEPENDENCE COM 3.75% 4/1/2014 40.25 INTL LEASE FIN 4.95% 2/1/2011 79.00 INTL LEASE FIN 5.65% 6/15/2011 35.00 INTL LEASE FIN 5.25% 1/10/2013 67.00 INTL LEASE FIN 5% 4/15/2010 67.50 INTL LEASE FIN 5.75% 6/15/2011 60.00 INTL LEASE FIN 5.15% 3/15/2010 60.26 INTL LEASE FIN 5.4% 2/15/2012 73.00 INTL LEASE FIN 5.3% 5/1/2012 77.46 INTL LEASE FIN 5.65% 6/1/2014 56.85 INTL LEASE FIN 5.88% 5/1/2013 54.20 INTL LEASE FIN 6.63% 11/15/2013 72.00 INTL LEASE FIN 6.5% 6/15/2015 65.00 INTL LEASE FIN 5.63% 9/20/2013 54.80 INTL LEASE FIN 7.5% 7/15/2013 40.00 INTL LEASE FIN 7.5% 7/15/2013 45.05 ION MEDIA 11% 7/31/2013 27.50 IRIDIUM LLC/CAP 14% 7/15/2005 0.50 IRIDIUM LLC/CAP 13% 7/15/2005 0.81 IRIDIUM LLC/CAP 10.88% 7/15/2005 0.66 IRIDIUM LLC/CAP 11.25% 7/15/2005 0.71 ISOLAGEN INC 3.5% 11/1/2024 32.00 ISTAR FINANCIAL 8.63% 6/1/2013 59.00 ISTAR FINANCIAL 5.65% 9/15/2011 59.50 ISTAR FINANCIAL 5.15% 3/1/2012 55.00 ISTAR FINANCIAL 5.95% 10/15/2013 54.94 ISTAR FINANCIAL 5.88% 3/15/2016 52.00 JACOBS ENTERTAIN 9.75% 6/15/2014 64.50 JAZZ TECHNOLOGIE 8% 12/31/2011 48.50 JDS UNIPHASE 1% 5/15/2026 68.18 JOHN HANCOCK LIF 4.55% 3/15/2015 62.50 JONES APPAREL 6.13% 11/15/2034 60.40 JPMC CAP XVIII 6.95% 8/17/2036 75.00 JPMORGAN CHASE 5.45% 3/15/2030 33.50 K HOVNANIAN ENTR 7.75% 5/15/2013 57.25 K HOVNANIAN ENTR 6.5% 1/15/2014 60.85 K HOVNANIAN ENTR 6.38% 12/15/2014 54.96 K HOVNANIAN ENTR 6.25% 1/15/2015 54.46 K HOVNANIAN ENTR 6.25% 1/15/2016 55.00 K HOVNANIAN ENTR 7.5% 5/15/2016 59.50 K HOVNANIAN ENTR 8.63% 1/15/2017 58.00 K HOVNANIAN ENTR 8.88% 4/1/2012 65.00 KAISER ALUMINUM 12.75% 2/1/2003 7.00 KAISER ALUMINUM 9.88% 2/15/2002 0.01 KELLWOOD CO 7.63% 10/15/2017 62.50 KEMET CORP 2.25% 11/15/2026 35.03 KEMET CORP 2.25% 11/15/2026 36.38 KEY BANK NA 5.45% 3/3/2016 68.76 KEY BANK NA 6.95% 2/1/2028 60.60 KEYCORP CAP VII 5.7% 6/15/2035 59.00 KEYSTONE AUTO OP 9.75% 11/1/2013 54.00 KIMBALL HILL INC 10.5% 12/15/2012 1.00 KNIGHT RIDDER 7.13% 6/1/2011 66.22 KNIGHT RIDDER 4.63% 11/1/2014 40.50 KNIGHT RIDDER 5.75% 9/1/2017 44.56 KNIGHT RIDDER 7.15% 11/1/2027 46.13 KNIGHT RIDDER 6.88% 3/15/2029 42.50 KOHLS CORP 6% 1/15/2033 80.50 KRATON POLYMERS 8.13% 1/15/2014 60.50 KULICKE & SOFFA 0.88% 6/1/2012 69.00 LANDRY'S RESTAUR 7.5% 12/15/2014 70.00 LAZYDAYS RV 11.75% 5/15/2012 51.00 LEAR CORP 5.75% 8/1/2014 70.00 LEHMAN BROS HLDG 5% 1/22/2013 8.88 LEHMAN BROS HLDG 6% 3/21/2031 18.00 LEHMAN BROS HLDG 6.15% 4/11/2031 8.42 LEHMAN BROS HLDG 6.25% 5/9/2031 64.82 LEHMAN BROS HLDG 6% 5/3/2032 0.25 LEHMAN BROS HLDG 6.85% 8/16/2032 14.00 LEHMAN BROS HLDG 6.85% 8/23/2032 20.00 LEHMAN BROS HLDG 6.9% 9/1/2032 14.00 LEHMAN BROS HLDG 6.8% 9/7/2032 17.00 LEHMAN BROS HLDG 7% 10/4/2032 12.50 LEHMAN BROS HLDG 6.5% 11/15/2032 11.00 LEHMAN BROS HLDG 6.5% 1/17/2033 7.65 LEHMAN BROS HLDG 6.75% 3/11/2033 12.30 LEHMAN BROS HLDG 6% 4/30/2034 4.60 LEHMAN BROS HLDG 6% 7/30/2034 7.75 LEHMAN BROS HLDG 5.55% 12/31/2034 13.75 LEHMAN BROS HLDG 5.65% 12/31/2034 23.00 LEHMAN BROS HLDG 6% 2/21/2036 5.00 LEHMAN BROS HLDG 6% 2/24/2036 13.75 LEHMAN BROS HLDG 6.4% 12/19/2036 18.25 LEHMAN BROS HLDG 6.5% 12/22/2036 12.25 LEHMAN BROS HLDG 6% 2/12/2037 10.50 LEHMAN BROS HLDG 6.5% 2/13/2037 11.00 LEHMAN BROS HLDG 6.3% 3/27/2037 14.00 LEHMAN BROS HLDG 6.5% 6/21/2037 12.46 LEHMAN BROS HLDG 6.5% 7/13/2037 13.10 LEHMAN BROS HLDG 6.88% 7/17/2037 0.24 LEHMAN BROS HLDG 7% 7/27/2037 17.27 LEHMAN BROS HLDG 7% 9/28/2037 12.63 LEHMAN BROS HLDG 6.75% 10/26/2037 7.48 LEHMAN BROS HLDG 7% 11/16/2037 23.60 LEHMAN BROS HLDG 7% 12/28/2037 17.60 LEHMAN BROS HLDG 7% 1/31/2038 10.13 LEHMAN BROS HLDG 7% 2/1/2038 20.24 LEHMAN BROS HLDG 7% 2/7/2038 44.00 LEHMAN BROS HLDG 7% 2/8/2038 4.00 LEHMAN BROS HLDG 7.05% 2/27/2038 11.94 LEHMAN BROS HLDG 7.25% 2/27/2038 11.50 LEHMAN BROS HLDG 7.1% 3/25/2038 22.00 LEHMAN BROS HLDG 7% 4/22/2038 5.04 LEHMAN BROS HLDG 7.25% 4/29/2038 13.85 LEHMAN BROS HLDG 7.35% 5/6/2038 8.00 LEHMAN BROS HLDG 7.5% 5/11/2038 0.25 LEHMAN BROS HLDG 3.6% 3/13/2009 13.90 LEHMAN BROS HLDG 4% 8/3/2009 26.88 LEHMAN BROS HLDG 7.2% 8/15/2009 13.00 LEHMAN BROS HLDG 7.88% 11/1/2009 12.60 LEHMAN BROS HLDG 3.95% 11/10/2009 13.00 LEHMAN BROS HLDG 4.25% 1/27/2010 13.02 LEHMAN BROS HLDG 4.5% 7/26/2010 14.65 LEHMAN BROS HLDG 7.88% 8/15/2010 13.13 LEHMAN BROS HLDG 4.38% 11/30/2010 14.50 LEHMAN BROS HLDG 5% 1/14/2011 15.13 LEHMAN BROS HLDG 6% 4/1/2011 27.00 LEHMAN BROS HLDG 5.75% 4/25/2011 14.00 LEHMAN BROS HLDG 5.75% 7/18/2011 11.00 LEHMAN BROS HLDG 4.5% 8/3/2011 22.17 LEHMAN BROS HLDG 6.63% 1/18/2012 13.50 LEHMAN BROS HLDG 5.25% 2/6/2012 15.38 LEHMAN BROS HLDG 6% 7/19/2012 15.38 LEHMAN BROS HLDG 5.25% 3/8/2020 13.06 LEHMAN BROS HLDG 5.63% 1/24/2013 16.25 LEHMAN BROS HLDG 5.1% 1/28/2013 8.00 LEHMAN BROS HLDG 5% 2/11/2013 13.00 LEHMAN BROS HLDG 4.8% 2/27/2013 12.00 LEHMAN BROS HLDG 4.7% 3/6/2013 13.00 LEHMAN BROS HLDG 5% 3/27/2013 13.00 LEHMAN BROS HLDG 5.75% 5/17/2013 15.50 LEHMAN BROS HLDG 5.25% 1/30/2014 20.00 LEHMAN BROS HLDG 4.8% 3/13/2014 15.50 LEHMAN BROS HLDG 5% 8/3/2014 8.25 LEHMAN BROS HLDG 6.2% 9/26/2014 15.38 LEHMAN BROS HLDG 5.15% 2/4/2015 14.00 LEHMAN BROS HLDG 5.25% 2/11/2015 13.50 LEHMAN BROS HLDG 8.8% 3/1/2015 15.00 LEHMAN BROS HLDG 8.5% 8/1/2015 11.01 LEHMAN BROS HLDG 5% 8/5/2015 8.75 LEHMAN BROS HLDG 5% 12/18/2015 13.50 LEHMAN BROS HLDG 5.5% 4/4/2016 15.55 LEHMAN BROS HLDG 5.75% 1/3/2017 0.25 LEHMAN BROS HLDG 8.92% 2/16/2017 17.50 LEHMAN BROS HLDG 6.5% 7/19/2017 0.24 LEHMAN BROS HLDG 11% 10/25/2017 7.00 LEHMAN BROS HLDG 5.88% 11/15/2017 13.00 LEHMAN BROS HLDG 6.75% 12/28/2017 0.25 LEHMAN BROS HLDG 5.6% 1/22/2018 13.06 LEHMAN BROS HLDG 5.7% 1/28/2018 11.20 LEHMAN BROS HLDG 5.5% 2/4/2018 9.90 LEHMAN BROS HLDG 5.55% 2/11/2018 10.00 LEHMAN BROS HLDG 6% 2/12/2018 57.80 LEHMAN BROS HLDG 5.5% 2/19/2018 14.00 LEHMAN BROS HLDG 5.35% 2/25/2018 12.13 LEHMAN BROS HLDG 5.25% 3/5/2018 20.00 LEHMAN BROS HLDG 6.88% 5/2/2018 16.25 LEHMAN BROS HLDG 5.5% 11/4/2018 13.56 LEHMAN BROS HLDG 8.05% 1/15/2019 16.05 LEHMAN BROS HLDG 4% 4/16/2019 9.31 LEHMAN BROS HLDG 6% 1/22/2020 12.63 LEHMAN BROS HLDG 6% 2/12/2020 8.00 LEHMAN BROS HLDG 5.1% 2/15/2020 9.90 LEHMAN BROS HLDG 5.5% 2/27/2020 11.50 LEHMAN BROS HLDG 5.4% 3/6/2020 13.56 LEHMAN BROS HLDG 6.5% 9/20/2027 12.50 LEHMAN BROS HLDG 5.35% 3/13/2020 13.06 LEHMAN BROS HLDG 5.4% 3/20/2020 13.06 LEHMAN BROS HLDG 5.2% 5/13/2020 13.00 LEHMAN BROS HLDG 5.5% 8/19/2020 45.38 LEHMAN BROS HLDG 5.8% 9/3/2020 11.00 LEHMAN BROS HLDG 6% 1/29/2021 9.90 LEHMAN BROS HLDG 6.25% 2/5/2021 9.50 LEHMAN BROS HLDG 10.75% 5/23/2022 12.00 LEHMAN BROS HLDG 6.75% 7/1/2022 9.65 LEHMAN BROS HLDG 6.6% 10/3/2022 8.40 LEHMAN BROS HLDG 6.4% 10/11/2022 8.00 LEHMAN BROS HLDG 6.25% 2/22/2023 13.00 LEHMAN BROS HLDG 9.5% 2/27/2023 6.00 LEHMAN BROS HLDG 6.5% 2/28/2023 15.00 LEHMAN BROS HLDG 6.5% 3/6/2023 14.00 LEHMAN BROS HLDG 5.5% 3/14/2023 9.90 LEHMAN BROS HLDG 5.75% 3/27/2023 9.90 LEHMAN BROS HLDG 5.5% 4/8/2023 9.90 LEHMAN BROS HLDG 5.5% 4/15/2023 16.00 LEHMAN BROS HLDG 5.5% 4/23/2023 13.00 LEHMAN BROS HLDG 5.38% 5/6/2023 22.50 LEHMAN BROS HLDG 7% 5/12/2023 54.80 LEHMAN BROS HLDG 5.25% 5/20/2023 9.00 LEHMAN BROS HLDG 5% 5/28/2023 44.35 LEHMAN BROS HLDG 5% 5/30/2023 11.52 LEHMAN BROS HLDG 5% 6/10/2023 10.00 LEHMAN BROS HLDG 5% 6/17/2023 10.00 LEHMAN BROS HLDG 4.8% 6/24/2023 16.00 LEHMAN BROS HLDG 6.1% 8/12/2023 10.00 LEHMAN BROS HLDG 5.75% 9/16/2023 9.50 LEHMAN BROS HLDG 5.6% 9/23/2023 17.00 LEHMAN BROS HLDG 5.5% 10/7/2023 11.50 LEHMAN BROS HLDG 5.75% 10/15/2023 8.75 LEHMAN BROS HLDG 5.75% 10/21/2023 8.00 LEHMAN BROS HLDG 5.75% 11/12/2023 7.00 LEHMAN BROS HLDG 5.75% 11/25/2023 13.00 LEHMAN BROS HLDG 10.38% 5/24/2024 64.00 LEHMAN BROS HLDG 5.45% 3/15/2025 14.00 LEHMAN BROS HLDG 6.2% 6/15/2027 12.63 LEHMAN BROS HLDG 6.63% 7/27/2027 13.52 LEHMAN BROS HLDG 5.65% 8/16/2030 8.88 LEHMAN BROS HLDG 7% 9/27/2027 15.63 LEHMAN BROS HLDG 6.5% 10/18/2027 10.03 LEHMAN BROS HLDG 6.5% 10/25/2027 11.60 LEHMAN BROS HLDG 6.75% 11/22/2027 14.25 LEHMAN BROS HLDG 11% 3/17/2028 11.40 LEHMAN BROS HLDG 6% 10/23/2028 4.41 LEHMAN BROS HLDG 6% 11/18/2028 9.00 LEHMAN BROS HLDG 5.75% 12/16/2028 13.06 LEHMAN BROS HLDG 5.75% 12/23/2028 14.25 LEHMAN BROS HLDG 5.5% 1/27/2029 65.24 LEHMAN BROS HLDG 5.5% 2/3/2029 7.00 LEHMAN BROS HLDG 5.7% 2/10/2029 14.00 LEHMAN BROS HLDG 5.6% 2/17/2029 11.00 LEHMAN BROS HLDG 5.6% 2/24/2029 14.04 LEHMAN BROS HLDG 5.6% 3/2/2029 13.06 LEHMAN BROS HLDG 5.55% 3/9/2029 13.78 LEHMAN BROS HLDG 5.4% 3/30/2029 20.01 LEHMAN BROS HLDG 5.45% 4/6/2029 14.00 LEHMAN BROS HLDG 5.7% 4/13/2029 9.06 LEHMAN BROS HLDG 5.9% 5/4/2029 8.00 LEHMAN BROS HLDG 6% 5/11/2029 13.75 LEHMAN BROS HLDG 6.2% 5/25/2029 13.75 LEHMAN BROS HLDG 6.05% 6/29/2029 12.00 LEHMAN BROS HLDG 6% 7/20/2029 8.50 LEHMAN BROS HLDG 5.75% 8/24/2029 9.00 LEHMAN BROS HLDG 5.7% 9/7/2029 10.13 LEHMAN BROS HLDG 5.75% 9/14/2029 11.50 LEHMAN BROS HLDG 5.75% 10/12/2029 17.12 LEHMAN BROS HLDG 5.65% 11/23/2029 8.00 LEHMAN BROS HLDG 5.7% 12/14/2029 7.00 LEHMAN BROS HLDG 5.55% 1/25/2030 13.10 LEHMAN BROS HLDG 5.45% 2/22/2030 20.00 LEHMAN BROS HLDG 5.6% 2/25/2030 16.00 LEHMAN BROS HLDG 5.63% 3/15/2030 14.10 LEHMAN BROS HLDG 5.75% 3/29/2030 16.00 LEHMAN BROS HLDG 5.6% 5/3/2030 11.50 LEHMAN BROS HLDG 5.35% 6/14/2030 20.00 LEHMAN BROS HLDG 5.4% 6/21/2030 20.00 LEHMAN BROS HLDG 5.45% 7/19/2030 13.50 LEHMAN BROS HLDG 5.5% 8/2/2030 20.00 LEHMAN BROS HLDG 5.45% 9/20/2030 13.75 LEHMAN BROS HLDG 5.55% 9/27/2030 20.00 LEHMAN BROS HLDG 5.8% 10/25/2030 9.06 LEHMAN BROS HLDG 6.75% 7/1/2022 9.65 LEHMAN BROS HLDG 10.75% 5/23/2022 12.00 LEHMAN BROS HLDG 6.25% 2/5/2021 9.50 LEHMAN BROS HLDG 6% 1/29/2021 9.90 LEHMAN BROS HLDG 5.8% 9/3/2020 11.00 LEHMAN BROS HLDG 5.5% 8/19/2020 45.38 LEHMAN BROS HLDG 5.2% 5/13/2020 13.00 LEHMAN BROS HLDG 5.4% 3/20/2020 13.06 LEHMAN BROS HLDG 5.35% 3/13/2020 13.06 LEHMAN BROS HLDG 6.5% 9/20/2027 12.50 LEHMAN BROS HLDG 5.4% 3/6/2020 13.56 LEHMAN BROS HLDG 5.5% 2/27/2020 11.50 LEHMAN BROS HLDG 5.1% 2/15/2020 9.90 LEHMAN BROS HLDG 6% 2/12/2020 8.00 LEHMAN BROS HLDG 6% 1/22/2020 12.63 LEHMAN BROS HLDG 4% 4/16/2019 9.31 LEHMAN BROS HLDG 8.05% 1/15/2019 16.05 LEHMAN BROS HLDG 5.5% 11/4/2018 13.56 LEHMAN BROS HLDG 6.88% 5/2/2018 16.25 LEHMAN BROS HLDG 5.25% 3/5/2018 20.00 LEHMAN BROS HLDG 5.35% 2/25/2018 12.13 LEHMAN BROS HLDG 5.5% 2/19/2018 14.00 LEHMAN BROS HLDG 6% 2/12/2018 57.80 LEHMAN BROS HLDG 5.55% 2/11/2018 10.00 LEHMAN BROS HLDG 5.5% 2/4/2018 9.90 LEHMAN BROS HLDG 5.7% 1/28/2018 11.20 LEHMAN BROS HLDG 5.6% 1/22/2018 13.06 LEHMAN BROS HLDG 6.75% 12/28/2017 0.25 LEHMAN BROS HLDG 5.88% 11/15/2017 13.00 LEHMAN BROS HLDG 11% 10/25/2017 7.00 LEHMAN BROS HLDG 6.5% 7/19/2017 0.24 LEHMAN BROS HLDG 8.92% 2/16/2017 17.50 LEHMAN BROS HLDG 5.75% 1/3/2017 0.25 LEHMAN BROS HLDG 5.5% 4/4/2016 15.55 LEHMAN BROS HLDG 5% 12/18/2015 13.50 LEHMAN BROS HLDG 5% 8/5/2015 8.75 LEHMAN BROS HLDG 8.5% 8/1/2015 11.01 LEHMAN BROS HLDG 8.8% 3/1/2015 15.00 LEHMAN BROS HLDG 5.25% 2/11/2015 13.50 LEHMAN BROS HLDG 5.15% 2/4/2015 14.00 LEHMAN BROS HLDG 6.2% 9/26/2014 15.38 LEHMAN BROS HLDG 5% 8/3/2014 8.25 LEHMAN BROS HLDG 4.8% 3/13/2014 15.50 LEHMAN BROS HLDG 5.25% 1/30/2014 20.00 LEHMAN BROS HLDG 5.75% 5/17/2013 15.50 LEHMAN BROS HLDG 5% 3/27/2013 13.00 LEHMAN BROS HLDG 4.7% 3/6/2013 13.00 LEHMAN BROS HLDG 4.8% 2/27/2013 12.00 LEHMAN BROS HLDG 5% 2/11/2013 13.00 LEHMAN BROS HLDG 5.1% 1/28/2013 8.00 LEHMAN BROS HLDG 5.63% 1/24/2013 16.25 LEHMAN BROS HLDG 5.25% 3/8/2020 13.06 LEHMAN BROS HLDG 6% 7/19/2012 15.38 LEHMAN BROS HLDG 5.25% 2/6/2012 15.38 LEHMAN BROS HLDG 6.63% 1/18/2012 13.50 LEHMAN BROS HLDG 5.5% 10/7/2023 11.50 LEHMAN BROS HLDG 5.75% 7/18/2011 11.00 LEHMAN BROS HLDG 5.75% 4/25/2011 14.00 LEHMAN BROS HLDG 6% 4/1/2011 27.00 LEHMAN BROS HLDG 5% 1/14/2011 15.13 LEHMAN BROS HLDG 4.38% 11/30/2010 14.50 LEHMAN BROS HLDG 7.88% 8/15/2010 13.13 LEHMAN BROS HLDG 4.5% 7/26/2010 14.65 LEHMAN BROS HLDG 4.25% 1/27/2010 13.02 LEHMAN BROS HLDG 3.95% 11/10/2009 13.00 LEHMAN BROS HLDG 7.88% 11/1/2009 12.60 LEHMAN BROS HLDG 7.2% 8/15/2009 13.00 LEHMAN BROS HLDG 4% 8/3/2009 26.88 LEHMAN BROS HLDG 3.6% 3/13/2009 13.90 LEHMAN BROS HLDG 7.5% 5/11/2038 0.25 LEHMAN BROS HLDG 7.35% 5/6/2038 8.00 LEHMAN BROS HLDG 7.25% 4/29/2038 13.85 LEHMAN BROS HLDG 7% 4/22/2038 5.04 LEHMAN BROS HLDG 7.1% 3/25/2038 22.00 LEHMAN BROS HLDG 7.25% 2/27/2038 11.50 LEHMAN BROS HLDG 7.05% 2/27/2038 11.94 LEHMAN BROS HLDG 7% 2/8/2038 4.00 LEHMAN BROS HLDG 7% 2/7/2038 44.00 LEHMAN BROS HLDG 7% 2/1/2038 20.24 LEHMAN BROS HLDG 7% 1/31/2038 10.13 LEHMAN BROS HLDG 7% 12/28/2037 17.60 LEHMAN BROS HLDG 7% 11/16/2037 23.60 LEHMAN BROS HLDG 6.75% 10/26/2037 7.48 LEHMAN BROS HLDG 7% 9/28/2037 12.63 LEHMAN BROS HLDG 7% 7/27/2037 17.27 LEHMAN BROS HLDG 6.88% 7/17/2037 0.24 LEHMAN BROS HLDG 6.5% 7/13/2037 13.10 LEHMAN BROS HLDG 6.5% 6/21/2037 12.46 LEHMAN BROS HLDG 6.3% 3/27/2037 14.00 LEHMAN BROS HLDG 6.5% 2/13/2037 11.00 LEHMAN BROS HLDG 6% 2/12/2037 10.50 LEHMAN BROS HLDG 6.5% 12/22/2036 12.25 LEHMAN BROS HLDG 6.4% 12/19/2036 18.25 LEHMAN BROS HLDG 6% 2/24/2036 13.75 LEHMAN BROS HLDG 6% 2/21/2036 5.00 LEHMAN BROS HLDG 5.65% 12/31/2034 23.00 LEHMAN BROS HLDG 5.55% 12/31/2034 13.75 LEHMAN BROS HLDG 6% 7/30/2034 7.75 LEHMAN BROS HLDG 6% 4/30/2034 4.60 LEHMAN BROS HLDG 6.75% 3/11/2033 12.30 LEHMAN BROS HLDG 6.5% 1/17/2033 7.65 LEHMAN BROS HLDG 6.5% 11/15/2032 11.00 LEHMAN BROS HLDG 7% 10/4/2032 12.50 LEHMAN BROS HLDG 6.8% 9/7/2032 17.00 LEHMAN BROS HLDG 6.9% 9/1/2032 14.00 LEHMAN BROS HLDG 6.85% 8/23/2032 20.00 LEHMAN BROS HLDG 6.85% 8/16/2032 14.00 LEHMAN BROS HLDG 6% 5/3/2032 0.25 LEHMAN BROS HLDG 6.25% 5/9/2031 64.82 LEHMAN BROS HLDG 6.15% 4/11/2031 8.42 LEHMAN BROS HLDG 6% 3/21/2031 18.00 LEHMAN BROS HLDG 5% 1/22/2013 8.88 LEHMAN BROS HLDG 5.9% 2/7/2031 17.12 LEHMAN BROS HLDG 5.95% 12/20/2030 20.00 LEHMAN BROS HLDG 5.85% 11/8/2030 13.75 LEHMAN BROS INC 7.5% 8/1/2026 8.00 LEHMAN CAP VII 5.86% 11/29/1949 99.98 LEINER HEALTH 11% 6/1/2012 9.75 LENNAR CORP 5.5% 9/1/2014 68.06 LENNAR CORP 5.6% 5/31/2015 65.00 LIBERTY MEDIA 3.25% 3/15/2031 42.50 LIBERTY MEDIA 4% 11/15/2029 44.00 LIBERTY MEDIA 3.75% 2/15/2030 45.63 LIBERTY MEDIA 3.5% 1/15/2031 29.50 LIFECARE HOLDING 9.25% 8/15/2013 56.25 LTV CORP 8.2% 9/15/2007 0.01 LUCENT TECH 6.5% 1/15/2028 57.50 MAGNA ENTERTAINM 8.55% 6/15/2010 46.20 MAGNA ENTERTAINM 7.25% 12/15/2009 51.00 MAJESTIC STAR 9.5% 10/15/2010 48.50 MAJESTIC STAR 9.75% 1/15/2011 10.50 MANNKIND CORP 3.75% 12/15/2013 53.25 MASHANTUCKET PEQ 8.5% 11/15/2015 67.80 MASONITE CORP 11% 4/6/2015 31.01 MBIA INC 6.63% 10/1/2028 53.22 MBIA INC 6.4% 8/15/2022 43.83 MEDIANEWS GROUP 6.88% 10/1/2013 42.00 MERIX CORP 4% 5/15/2013 47.10 MERRILL LYNCH 6.22% 9/15/2026 73.25 MERRILL LYNCH 10% 3/6/2009 17.23 MERRILL LYNCH 11% 4/28/2009 24.01 MERRILL LYNCH 8.1% 6/4/2009 9.23 MERRILL LYNCH 12.1% 6/25/2009 8.03 MERRILL LYNCH 11.86% 7/14/2009 6.81 MERRILL LYNCH 12.23% 8/17/2009 9.01 MERRILL LYNCH 9.25% 9/28/2010 22.45 MERRILL LYNCH 4.1% 10/4/2011 69.76 MERRILL LYNCH 6.11% 1/29/2037 55.00 MERRILL LYNCH 12% 3/26/2010 23.94 METALDYNE CORP 10% 11/1/2013 14.00 METALDYNE CORP 11% 6/15/2012 10.00 METRICOM INC 13% 2/15/2010 0.05 MICHAELS STORES 11.38% 11/1/2016 61.00 MICHAELS STORES 10% 11/1/2014 68.00 MICRON TECH 1.88% 6/1/2014 53.96 MILLENNIUM AMER 7.63% 11/15/2026 57.00 MISSOURI PAC RR 5% 1/1/2045 59.84 MORGAN STANLEY 6% 2/16/2027 64.12 MORGAN STANLEY 8% 2/23/2037 49.00 MORGAN STANLEY 8.25% 3/14/2028 52.00 MORGAN STANLEY 6.25% 8/9/2026 61.25 MORGAN STANLEY 8.38% 4/25/2023 95.00 MORGAN STANLEY 10% 5/20/2009 15.00 MORGAN STANLEY 10% 4/20/2009 15.21 MORGAN STANLEY 8% 7/20/2009 8.40 MORGAN STANLEY 12% 7/20/2009 9.15 MORGAN STANLEY 5.75% 8/31/2012 69.00 MORGAN STANLEY 4.75% 4/1/2014 39.00 MORGAN STANLEY 6% 4/28/2015 63.00 MORGAN STANLEY 5.75% 10/18/2016 65.50 MORGAN STANLEY 5.45% 1/9/2017 62.00 MORGAN STANLEY 5.55% 4/27/2017 61.60 MORGAN STANLEY 6.25% 8/28/2017 66.63 MORGAN STANLEY 5.95% 12/28/2017 62.25 MORGAN STANLEY 5.13% 2/11/2019 67.00 MORGAN STANLEY 8% 9/7/2021 60.00 MORGAN STANLEY 7.5% 2/22/2023 70.00 MORRIS PUBLISH 7% 8/1/2013 25.25 MOTOROLA INC 6.5% 9/1/2025 66.58 MRS FIELDS 9% 3/15/2011 56.50 MRS FIELDS 11.5% 3/15/2011 60.00 NATL CITY BANK 4.63% 5/1/2013 23.80 NATL CITY BANK 6.2% 12/15/2011 50.00 NATL CITY BANK 6.25% 3/15/2011 40.62 NATL CITY BK IND 4.25% 7/1/2018 49.00 NATL CITY BK KEN 6.3% 2/15/2011 62.33 NATL CITY BK PA 7.25% 10/21/2011 64.00 NATL CITY CORP 6.88% 5/15/2019 45.00 NATL CITY CORP 4.9% 1/15/2015 55.00 NATL CITY CORP 4% 2/1/2011 49.00 NATL FINANCIAL 0.75% 2/1/2012 63.62 NEFF CORP 10% 6/1/2015 38.00 NEKTAR THERAPEUT 3.25% 9/28/2012 50.00 NETWORK COMMUNIC 10.75% 12/1/2013 68.00 NETWORK EQUIPMNT 3.75% 12/15/2014 59.00 NEW ORL GRT N RR 5% 7/1/2032 50.95 NEW PLAN EXCEL 7.4% 9/15/2009 60.00 NEW PLAN EXCEL 7.5% 7/30/2029 38.00 NEW PLAN REALTY 7.65% 11/2/2026 39.12 NEW PLAN REALTY 7.68% 11/2/2026 43.52 NEW PLAN REALTY 6.9% 2/15/2028 62.38 NEW PLAN REALTY 7.97% 8/14/2026 37.62 NEW PLAN REALTY 6.9% 2/15/2028 38.00 NEWARK GROUP INC 9.75% 3/15/2014 40.00 NEXTEL COMMUNIC 5.95% 3/15/2014 70.50 NORTEK INC 8.5% 9/1/2014 58.00 NORTH ATL TRADNG 9.25% 3/1/2012 42.00 NORTHERN PAC RY 3% 1/1/2047 51.88 NORTHERN PAC RY 3% 1/1/2047 52.63 NORTHERN TEL CAP 7.88% 6/15/2026 70.00 NTK HOLDINGS INC 0% 3/1/2014 44.50 NUTRITIONAL SRC 10.13% 8/1/2009 21.50 NUVEEN INVEST 5.5% 9/15/2015 40.00 OCWEN CAP TRST I 10.88% 8/1/2027 69.88 OMNICARE INC 3.25% 12/15/2035 66.50 OSCIENT PHARM 3.5% 4/15/2011 19.13 OSCIENT PHARM 3.5% 4/15/2011 25.75 OSI RESTAURANT 10% 6/15/2015 46.50 OUTBOARD MARINE 9.13% 4/15/2017 0.13 PACKAGING DYNAMI 10% 5/1/2016 64.93 PALM HARBOR 3.25% 5/15/2024 57.00 PANAMSAT CORP 6.88% 1/15/2028 76.00 PARK N VIEW INC 13% 5/15/2008 0.05 PARK PLACE ENT 8.13% 5/15/2011 57.50 PEGASUS SATELL 13.5% 3/1/2007 0.00 PEGASUS SATELLIT 12.38% 8/1/2008 0.00 PIEDMONT AVIAT 10.25% 1/15/2049 0.00 PIERRE FOODS INC 9.88% 7/15/2012 7.88 PILGRIM'S PRIDE 8.38% 5/1/2017 44.00 PILGRIM'S PRIDE 7.63% 5/1/2015 63.50 PINNACLE AIRLINE 3.25% 2/15/2025 73.32 PIXELWORKS INC 1.75% 5/15/2024 69.94 PLY GEM INDS 9% 2/15/2012 55.25 PMI GROUP INC 6% 9/15/2016 58.00 POPE & TALBOT 8.38% 6/1/2013 0.25 POPE & TALBOT 8.38% 6/1/2013 0.38 PORTOLA PACKAGIN 8.25% 2/1/2012 51.75 POWERWAVE TECH 1.88% 11/15/2024 64.50 POWERWAVE TECH 3.88% 10/1/2027 65.75 PRIMUS TELECOM 8% 1/15/2014 32.00 PRIMUS TELECOM 3.75% 9/15/2010 51.75 PRIMUS TELECOM 5% 6/30/2009 64.50 PRIN LIFE INC FD 5.5% 10/15/2024 71.40 PROGRESSIVE CORP 6.7% 6/15/2037 68.16 PROLOGIS 1.88% 11/15/2037 70.75 PROLOGIS 2.63% 5/15/2038 70.00 PROPEX FABRICS 10% 12/1/2012 0.13 PROVIDENT FIN TR 7.41% 3/15/2038 70.00 PSINET INC 11.5% 11/1/2008 0.01 PSINET INC 10.5% 12/1/2006 0.01 PSINET INC 11% 8/1/2009 0.01 PSINET INC 10% 2/15/2005 0.01 QUALITY DISTRIBU 9% 11/15/2010 57.06 RADIAN GROUP 5.38% 6/15/2015 39.63 RADIAN GROUP 5.63% 2/15/2013 45.00 RADIAN GROUP 7.75% 6/1/2011 52.00 RADNOR HOLDINGS 11% 3/15/2010 0.00 RAFAELLA APPAREL 11.25% 6/15/2011 45.25 READER'S DIGEST 9% 2/15/2017 58.00 REALOGY CORP 12.38% 4/15/2015 37.00 REALOGY CORP 10.5% 4/15/2014 47.25 REGIONS FIN TR 6.63% 5/15/2047 53.00 RENTECH INC 4% 4/15/2013 68.18 RESIDENTIAL CAP 8% 2/22/2011 22.40 RESIDENTIAL CAP 8.5% 4/17/2013 20.10 RESIDENTIAL CAP 8.88% 6/30/2015 21.00 RESIDENTIAL CAP 9.63% 5/15/2015 29.88 RESIDENTIAL CAP 8.38% 6/30/2010 23.00 RESIDENTIAL CAP 8.5% 6/1/2012 25.92 RESTAURANT CO 10% 10/1/2013 53.38 RF MICRO DEVICES 1% 4/15/2014 62.70 RH DONNELLEY 8.88% 10/15/2017 41.50 RH DONNELLEY 8.88% 1/15/2016 41.00 RH DONNELLEY 6.88% 1/15/2013 45.00 RH DONNELLEY 6.88% 1/15/2013 45.50 RH DONNELLEY 6.88% 1/15/2013 46.00 RH DONNELLEY INC 11.75% 5/15/2015 64.56 RITE AID CORP 9.5% 6/15/2017 58.90 RITE AID CORP 7.7% 2/15/2027 43.50 RITE AID CORP 9.38% 12/15/2015 53.00 RITE AID CORP 6.88% 8/15/2013 53.10 RITE AID CORP 8.63% 3/1/2015 58.37 RITE AID CORP 6.88% 12/15/2028 37.80 RJ TOWER CORP 12% 6/1/2013 2.09 ROTECH HEALTHCA 9.5% 4/1/2012 58.00 ROUSE COMPANY 5.38% 11/26/2013 77.50 S3 INC 5.75% 10/1/2003 0.25 SABRE HOLDINGS 8.35% 3/15/2016 61.50 SAVVIS INC 3% 5/15/2012 61.50 SEARS ROEBUCK AC 7.5% 10/15/2027 68.50 SEARS ROEBUCK AC 6.75% 1/15/2028 54.57 SEARS ROEBUCK AC 6.5% 12/1/2028 50.96 SERVICEMASTER CO 7.45% 8/15/2027 34.63 SERVICEMASTER CO 7.1% 3/1/2018 43.00 SERVICEMASTER CO 7.25% 3/1/2038 52.00 SIRIUS SATELLITE 9.63% 8/1/2013 52.50 SIRIUS SATELLITE 3.25% 10/15/2011 64.00 SIX FLAGS INC 9.75% 4/15/2013 55.00 SIX FLAGS INC 4.5% 5/15/2015 44.00 SIX FLAGS INC 9.63% 6/1/2014 56.00 SLM CORP 5.75% 12/15/2029 59.71 SLM CORP 5.75% 12/15/2029 40.00 SLM CORP 5.7% 12/15/2029 38.92 SLM CORP 5.65% 12/15/2029 56.85 SLM CORP 5.65% 12/15/2029 53.69 SLM CORP 5.65% 12/15/2029 58.34 SLM CORP 5.6% 12/15/2029 56.80 SLM CORP 5.6% 12/15/2029 59.82 SLM CORP 6.25% 9/15/2029 62.66 SLM CORP 6.25% 9/15/2029 50.13 SLM CORP 6.25% 9/15/2029 61.18 SLM CORP 6.15% 9/15/2029 58.54 SLM CORP 6.15% 9/15/2029 54.67 SLM CORP 6% 9/15/2029 61.72 SLM CORP 6% 9/15/2029 58.94 SLM CORP 6% 9/15/2029 54.61 SLM CORP 6% 9/15/2029 59.85 SLM CORP 6% 9/15/2029 42.23 SLM CORP 5.85% 9/15/2029 56.50 SLM CORP 5.85% 9/15/2029 39.75 SLM CORP 5.75% 9/15/2029 59.53 SLM CORP 6.25% 6/15/2029 53.80 SLM CORP 6.25% 6/15/2029 54.63 SLM CORP 6.25% 6/15/2029 61.27 SLM CORP 6% 6/15/2029 52.73 SLM CORP 6% 6/15/2029 58.12 SLM CORP 6% 6/15/2029 54.49 SLM CORP 5.75% 6/15/2029 58.09 SLM CORP 5.75% 6/15/2029 54.54 SLM CORP 5.5% 6/15/2029 55.07 SLM CORP 5.5% 6/15/2029 60.00 SLM CORP 6% 3/15/2029 42.35 SLM CORP 5.75% 3/15/2029 60.06 SLM CORP 5.75% 3/15/2029 66.45 SLM CORP 5.75% 3/15/2029 55.38 SLM CORP 5.75% 3/15/2029 57.30 SLM CORP 5.75% 3/15/2029 52.50 SLM CORP 5.5% 3/15/2019 68.89 SLM CORP 5.7% 3/15/2029 53.56 SLM CORP 5.7% 3/15/2029 60.00 SLM CORP 5.7% 3/15/2029 58.73 SLM CORP 5.7% 3/15/2029 51.09 SLM CORP 5.7% 3/15/2029 53.00 SLM CORP 5.65% 3/15/2029 58.32 SLM CORP 5.65% 3/15/2029 60.61 SLM CORP 5.65% 3/15/2029 51.70 SLM CORP 5.6% 3/15/2029 67.45 SLM CORP 6.1% 12/15/2028 51.05 SLM CORP 6% 12/15/2028 59.43 SLM CORP 5% 9/15/2015 68.07 SLM CORP 5% 9/15/2015 59.00 SLM CORP 5.15% 3/15/2014 64.10 SLM CORP 5.1% 3/15/2014 64.65 SLM CORP 4.7% 3/15/2014 63.25 SLM CORP 4.7% 3/15/2014 67.63 SLM CORP 4.3% 12/15/2013 64.59 SLM CORP 5.2% 8/15/2012 66.59 SLM CORP 4.7% 8/15/2012 66.73 SLM CORP 5.6% 12/15/2028 56.54 SLM CORP 5.3% 12/15/2028 55.32 SLM CORP 5.25% 12/15/2028 57.64 SLM CORP 5.45% 6/15/2028 59.05 SLM CORP 5.45% 6/15/2028 59.40 SLM CORP 5.3% 6/15/2028 51.36 SLM CORP 5.55% 3/15/2028 55.00 SLM CORP 5.25% 3/15/2028 53.00 SLM CORP 6% 3/15/2027 62.11 SLM CORP 6.05% 12/15/2026 41.70 SLM CORP 6% 12/15/2026 57.20 SLM CORP 6% 12/15/2026 58.72 SLM CORP 6% 12/15/2026 54.67 SLM CORP 6.2% 9/15/2026 63.75 SLM CORP 6% 6/15/2026 43.24 SLM CORP 5.55% 6/15/2025 52.80 SLM CORP 5.35% 6/15/2025 58.86 SLM CORP 5.35% 6/15/2025 53.75 SLM CORP 5.63% 1/25/2025 61.96 SLM CORP 5.6% 3/15/2024 59.89 SLM CORP 5.35% 6/15/2023 52.45 SLM CORP 5.4% 3/15/2023 61.30 SLM CORP 5.65% 6/15/2022 64.17 SLM CORP 5.65% 6/15/2022 62.50 SLM CORP 5.6% 3/15/2022 64.82 SLM CORP 6.15% 6/15/2021 64.21 SLM CORP 6.1% 6/15/2021 65.20 SLM CORP 6% 6/15/2021 57.29 SLM CORP 6% 6/15/2021 56.34 SLM CORP 6% 6/15/2021 58.10 SLM CORP 6.15% 3/10/2021 69.26 SLM CORP 6% 9/15/2019 63.00 SLM CORP 6% 6/15/2019 47.27 SLM CORP 6% 6/15/2019 64.16 SLM CORP 6% 6/15/2019 54.00 SLM CORP 5% 6/15/2019 62.65 SLM CORP 5.19% 4/24/2019 65.75 SLM CORP 5.4% 3/15/2019 68.22 SLM CORP 5.25% 3/15/2019 54.05 SLM CORP 5.6% 6/15/2018 65.42 SLM CORP 5% 6/15/2018 68.00 SLM CORP 5.65% 3/15/2018 58.79 SLM CORP 5.6% 3/15/2018 66.16 SLM CORP 5.55% 3/15/2018 63.28 SLM CORP 5.45% 3/15/2018 62.90 SLM CORP 5.25% 3/15/2018 62.86 SLM CORP 5.15% 3/15/2017 61.30 SLM CORP 4.1% 12/15/2015 67.80 SLM CORP 5.15% 9/15/2015 66.10 SLM CORP 6% 3/15/2037 60.82 SLM CORP 6% 3/15/2037 40.82 SLM CORP 6% 3/15/2037 56.41 SLM CORP 6.85% 7/7/2036 67.35 SLM CORP 5.85% 6/15/2032 51.41 SLM CORP 5.85% 6/15/2032 58.38 SLM CORP 5.75% 6/15/2032 57.26 SLM CORP 5.75% 6/15/2032 58.91 SLM CORP 5.85% 3/15/2032 61.15 SLM CORP 5.85% 3/15/2032 54.00 SLM CORP 5.85% 3/15/2032 51.51 SLM CORP 5.8% 3/15/2032 58.69 SLM CORP 5.8% 3/15/2032 40.76 SLM CORP 5.8% 3/15/2032 54.93 SLM CORP 5.7% 3/15/2032 59.00 SLM CORP 5.65% 3/15/2032 52.86 SLM CORP 6.2% 12/15/2031 53.59 SLM CORP 6.15% 12/15/2031 60.82 SLM CORP 6.1% 12/15/2031 53.10 SLM CORP 6.05% 12/15/2031 59.53 SLM CORP 6% 12/15/2031 52.36 SLM CORP 6% 12/15/2031 56.52 SLM CORP 6% 12/15/2031 58.78 SLM CORP 6% 12/15/2031 51.79 SLM CORP 5.85% 12/15/2031 40.88 SLM CORP 6.5% 9/15/2031 56.81 SLM CORP 6.45% 9/15/2031 57.90 SLM CORP 6.4% 9/15/2031 43.32 SLM CORP 6.35% 9/15/2031 59.79 SLM CORP 6.35% 9/15/2031 61.11 SLM CORP 6.3% 9/15/2031 61.90 SLM CORP 6.25% 9/15/2031 61.21 SLM CORP 6% 6/15/2031 40.76 SLM CORP 6% 12/15/2030 53.70 SLM CORP 5.65% 9/15/2030 58.80 SLM CORP 5.3% 9/15/2030 57.00 SLM CORP 5.75% 6/15/2030 58.97 SLM CORP 5.5% 6/15/2030 50.17 SLM CORP 5.4% 6/15/2030 56.63 SLM CORP 5.4% 6/15/2030 57.97 SLM CORP 5.7% 3/15/2030 53.03 SLM CORP 5.65% 3/15/2030 51.00 SLM CORP 5.5% 3/15/2030 51.16 SLM CORP 5.4% 3/15/2030 57.33 SLM CORP 5.8% 12/15/2029 59.41 SLM CORP 5.75% 12/15/2029 59.06 SLM CORP 5.7% 3/15/2029 57.41 SONIC AUTOMOTIVE 8.63% 8/15/2013 68.50 SOUTHTRUST CORP 5.8% 6/15/2014 67.50 SOVEREIGN CAP TR 7.91% 6/13/2036 63.00 SPECTRUM BRANDS 7.38% 2/1/2015 48.25 SPHERIS INC 11% 12/15/2012 54.00 STALLION OILFIEL 9.75% 2/1/2015 65.13 STANDARD PACIFIC 9.25% 4/15/2012 74.00 STANLEY-MARTIN 9.75% 8/15/2015 35.25 STATION CASINOS 7.75% 8/15/2016 55.94 STATION CASINOS 6% 4/1/2012 60.25 STATION CASINOS 6.63% 3/15/2018 42.00 STATION CASINOS 6.88% 3/1/2016 33.00 STATION CASINOS 6.5% 2/1/2014 32.50 SYNOVUS FINL 4.88% 2/15/2013 90.30 SYNOVUS FINL 5.13% 6/15/2017 83.63 TENET HEALTHCARE 6.88% 11/15/2031 66.00 TEPPCO PARTNERS 7% 6/1/2067 64.25 THORNBURG MTG 8% 5/15/2013 55.00 TIMES MIRROR CO 7.25% 3/1/2013 26.50 TIMES MIRROR CO 6.61% 9/15/2027 29.00 TIMES MIRROR CO 7.5% 7/1/2023 22.00 TOM'S FOODS INC 10.5% 11/1/2004 0.39 TOREADOR RESOURC 5% 10/1/2025 70.00 TOUSA INC 9% 7/1/2010 45.00 TOUSA INC 9% 7/1/2010 35.00 TOUSA INC 10.38% 7/1/2012 2.00 TOUSA INC 7.5% 1/15/2015 1.50 TOUSA INC 7.5% 3/15/2011 2.00 TOYS R US 7.38% 10/15/2018 67.07 TRANS-LUX CORP 8.25% 3/1/2012 48.00 TRIAD ACQUIS 11.13% 5/1/2013 57.00 TRIBUNE CO 4.88% 8/15/2010 52.00 TRIBUNE CO 5.25% 8/15/2015 30.00 TRONOX WORLDWIDE 9.5% 12/1/2012 39.50 TRUE TEMPER 8.38% 9/15/2011 29.80 TRUMP ENTERTNMNT 8.5% 6/1/2015 40.00 TXU CORP 6.55% 11/15/2034 66.97 TXU CORP 6.5% 11/15/2024 68.00 TXU ENERGY CO 7% 3/15/2013 41.50 UAL CORP 5% 2/1/2021 43.00 UAL CORP 4.5% 6/30/2021 56.50 UNUM CORP 7.19% 2/1/2028 84.00 US AIR INC 10.3% 7/15/2049 99.98 US AIRWAYS GROUP 7% 9/30/2020 59.00 US LEASING INTL 6% 9/6/2011 62.00 US SHIPPING PART 13% 8/15/2014 60.00 USAUTOS TRUST 5.1% 3/3/2011 49.00 USEC INC 3% 10/1/2014 59.75 VERASUN ENERGY 9.38% 6/1/2017 40.00 VERASUN ENERGY 9.88% 12/15/2012 69.00 VERENIUM CORP 5.5% 4/1/2027 38.00 VERIZON MARYLAND 5.13% 6/15/2033 70.64 VERTIS INC 10.88% 6/15/2009 8.00 VESTA INSUR GRP 8.75% 7/15/2025 1.00 VISTEON CORP 12.25% 12/31/2016 64.82 VISTEON CORP 7% 3/10/2014 43.00 WACHOVIA BANK NA 5.6% 3/15/2016 36.30 WACHOVIA CORP 5.7% 8/1/2013 29.30 WACHOVIA CORP 5.25% 8/1/2014 32.00 WACHOVIA CORP 5.3% 10/15/2011 53.00 WACHOVIA CORP 4.88% 2/15/2014 32.00 WACHOVIA CORP 7.98% #N/A N Ap 22.50 WACHOVIA CORP 5.75% 2/1/2018 55.00 WACHOVIA CORP 5.5% 5/1/2013 50.00 WACHOVIA CORP 5.75% 6/15/2017 46.00 WACHOVIA CORP 5.63% 10/15/2016 35.56 WACHOVIA CORP 5.35% 3/15/2011 34.30 WASH MUT BANK FA 5.65% 8/15/2014 0.20 WASH MUT BANK FA 5.13% 1/15/2015 0.20 WASH MUT BANK FA 5.95% 5/20/2013 0.25 WASH MUT BANK FA 5.55% 6/16/2010 20.00 WASH MUTUAL INC 8.25% 4/1/2010 0.50 WASH MUTUAL INC 4% 1/15/2009 4.50 WASH MUTUAL INC 5.25% 9/15/2017 39.00 WASH MUTUAL INC 5% 3/22/2012 19.00 WASH MUTUAL INC 4.63% 4/1/2014 2.05 WASH MUTUAL INC 4.2% 1/15/2010 19.97 WASH MUTUAL INC 5.5% 8/24/2011 39.50 WCI COMMUNITIES 9.13% 5/1/2012 33.40 WCI COMMUNITIES 6.63% 3/15/2015 33.00 WCI COMMUNITIES 4% 8/5/2023 38.50 WCI COMMUNITIES 7.88% 10/1/2013 35.00 WEBSTER CAPITAL 7.65% 6/15/2037 59.00 WERNER HOLDINGS 10% 11/15/2007 0.06 WHEELING-PITT ST 5% 8/1/2011 60.00 WII COMPONENTS 10% 2/15/2012 68.00 WILLIAM LYON 10.75% 4/1/2013 41.00 WILLIAM LYON 7.5% 2/15/2014 40.00 WILLIAM LYON 7.63% 12/15/2012 46.00 WIMAR OP LLC/FIN 9.63% 12/15/2014 19.00 WINSTAR COMM INC 12.75% 4/15/2010 0.01 WITCO CORP 6.88% 2/1/2026 63.50 YANKEE ACQUISITI 9.75% 2/15/2017 59.25 YOUNG BROADCSTNG 8.75% 1/15/2014 25.00 YOUNG BROADCSTNG 10% 3/1/2011 18.00 ********* 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. Julybien D. Atadero, Sheryl Joy P. Olano, 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 ***