Thursday, June 18, 2009

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

Thursday, June 18, 2009, Vol. 13, No. 167

Headlines

ABITIBIBOWATER INC: Enters into Amended Securitization Facility
ABITIBIBOWATER INC: Seeks to Pay Augusta Newsprint's $9.5MM Claim
ABITIBIBOWATER INC: Seeks Canada Court OK to Pay Employees
ABITIBIBOWATER INC: Settlement With Alabama Power Gets Court Nod
ABITIBIBOWATER INC: Court Denies CEP's Request to Lift CCAA Stay

ACCESS WAREHOUSES: Case Summary & 4 Largest Unsecured Creditors
ACCURIDE CORP: Erie Unit Closes $2.5MM Improvement Financing
ADVANTA CORP: Fitch Downgrades Issuer Default Rating to 'RD'
AGT CRUNCH: U.S. Trustee Says Dechert Has Conflict of Interest
ALLEGHANY CORP: S&P Withdraws 'BB+' Preferred Stock Rating

AMALGAMATED ARMADILLO: Case Summary & 3 Largest Unsec. Creditors
AMERICAN HOUSING: To Pursue Late CEO's $24MM Life Insurance
AMERICAN INT'L: Says Maurice Greenberg Improperly Seized Shares
AMH HOLDINGS: Exchange Agreement Won't Affect S&P's 'CCC+' Rating
ANCHOR BLUE: DIP Financing From Wachovia Bank Has Interim Approval

ANCHOR BLUE: To Close Additional 14 Stores
APPALACHIAN OIL: NRC to Hold Sealed Bid Sale; July 9 Deadline Set
ASARCO LLC: Brattle Group's Testimony Contributes to Settlement
ASARCO LLC: Two Parties Object to Sale of Perth Amboy Property
ASSOCIATED MATERIALS: Exchange Pact Won't Affect S&P's CCC+ Rating

ASYST TECHNOLOGIES: Bid Protocol Approved; July 17 Hearing Set
ASYST TECHNOLOGIES: Can Use Lenders' Cash Collateral 'til June 30
AUDIO VISUAL: Moody's Cuts Corp. Family Rating to B2; Outlook Neg.
AVIS BUDGET: Moody's Takes Rating Actions on Four Series of Notes
BANK OF AMERICA: Court Can Retry Former Merrill Executives' Case

BANKUNITED FINANCIAL: Court Approves Interim Trading Procedures
BANKUNITED FINANCIAL: Court Limits Equity Trades to Protect NOLs
BALLY TOTAL: Committee Counsel Retained by Party in AGT Case
BALLY TOTAL: Opposes Admiral Insurance Bid to Lift Stay
BALLY TOTAL: Opposes H&S Journal Demand for $290,107 Rent

BEAZER HOMES: S&P Downgrades Corporate Credit Rating to 'CCC'
BLB MANAGEMENT: Moody's Withdraws 'Ca' Corporate Family Rating
BRSP LLC: Moody's Assigns 'B1' Rating on $275 Mil. Facility
BUILDING MATERIALS: Chapter 11 Filing Cues Moody's 'D' Rating
BUILDING MATERIALS: Gets Interim Approval For $80MM DIP Facility

BULLSEYE COLLISION: Case Summary & 20 Largest Unsecured Creditors
BUTLER INT'L: To Sell Assets to Meet Buyer's Month-End Deadline
CANTILLON CAPITAL: Will Close Hedge Funds
CANWEST MEDIA: Lenders Extend Forbearance to June 30; Talks Go On
CAPITAL CORP: Wilmington Trust Appointed to Creditors' Panel

CELL THERAPEUTICS: Defers Payment of 25% Executives Cash Bonuses
CHENIERE ENERGY: Board OKs $160,000 Compensation to Directors
CHRYSLER LLC: To Resume Production at 7 Assembly Plants
CLAIRE'S STORES: Balance Sheet Upside-Down by $79MM as of May 2
CONTINENTAL AIRLINES: S&P Puts 'CCC+' Rating on Subordinated Debt

COOPER BROTHERS: Case Summary & 20 Largest Unsecured Creditors
COOPER-STANDARD AUTOMOTIVE: S&P Cuts Corp. Credit Rating to 'D'
COREL CORP: Denies Knowledge on Surge in Trading Volume, Price
COYOTES HOCKEY: Owner to Work on Open, Transparent Sales Process
COYOTES HOCKEY: Buyers Need $20MM in City Aid, Jim Balsillie Says

CRITICAL ACCESS HEALTH: Case Summary & 20 Largest Unsec. Creditors
DBSI INC: Creditors Committee Seeks to File Competing Plan
DELPHI CORP: Panel Wants Discovery on Platinum Equity Deal
DESERT AMERICAN: Voluntary Chapter 11 Case Summary
EDDIE BAUER: Case Summary & 30 Largest Unsecured Creditors

EDRA BLIXSETH: Court Rejects Plea Not to Liquidate Assets
EDDIE BAUER: Files for Chapter 11; To Sell to CCMP for $202MM
EMPIRE RESORTS: Hires KPMGCF to Raise $75 Million in Capital
E*TRADE FIN'L: Unveils $1.2BB Plan to Strengthen Capital Structure
E*TRADE FIN'L: Updates on May 2009 Activity, Loan Delinquencies

ETHAN ALLEN: S&P Downgrades Corporate Credit Rating to 'BB'
FARMLAND INDUSTRIES: Legal Fees Gives Bankr. Court Jurisdiction
FELCOR LODGING: S&P Retains Negative CreditWatch on 'B-' Rating
FIRST INDUSTRIAL: Moody's Cuts Senior Unsecured Rating to 'Ba3'
FOAMEX INTERNATIONAL: Wayzata Drops Appeal From Sale Order

FORD MOTOR: Navistar Hikes Equity Stake in Joint Ventures
FORTUNOFF FINE: PBGC Assumes Underfunded Pension Plan
GEORGIA GULF: Fitch Downgrades Issuer Default Rating to 'RD'
GETRAG TRANSMISSION: Has Liquidating Plan in Detroit Court
GLOBE RESTAURANT: Files for Chapter 7 Bankruptcy Protection

GOODMAN GLOBAL: Moody's Affirms 'B1' Corporate Family Rating
GREG MOSS: Files for Chapter 7; Talks with Trustcash Fall
GREAT SMOKEY: Voluntary Chapter 11 Case Summary
HARMAN INTERNATIONAL: Equity Offering Won't Move S&P's BB+ Rating
HARRAH'S ENTERTAINMENT: HOC Assumes $1.3BB in Note Obligations

HARTFORD FINANCIAL: Fitch Puts 'BB+' Ratings on Negative Watch
HAWAIIAN TELCOM: Terms of Proposed Reorganization Plan
HAWAIIAN TELCOM: Projects Up to 3% Recovery for Senior Noteholders
HAWAIIAN TELCOM: Disclosure Statement Hearing on August 11
HAWAIIAN TELCOM: Proposes FBG as Securities Voting Agent

HAWAIIAN TELCOM: Seeks September 30 Extension of Plan Period
HERBST GAMING: Sr. Sub Notes, Equity Get Nothing Under Plan
HEXION SPECIALTY: FTC Sets Aside Ruling on Failed Huntsman Merger
HUNTSMAN CORP: FTC Sets Aside Ruling on Failed Huntsman Merger
IMPERIAL CAPITAL: Case Summary & 20 Largest Unsecured Creditors

INDYMAC BANCORP: Trustee Sues FDIC to Recover $736MM Transfer
ISCHUS HIGH: S&P Downgrades Ratings on Class A-1S & A-1J Notes
JJJ ENTERPRISES: Voluntary Chapter 11 Case Summary
JUANA ORTEGA: Case Summary & 6 Largest Unsecured Creditors
KIWA BIO-TECH: In Talks with Investors to Resolve Event of Default

LEAR CORP: S&P Changes Recovery Ratings on $1 Bil. Loan to '3'
LIBBEY GLASS: Weak Performance Cues Moody's to Junk Ratings
LIMITED BRANDS: Fitch Assigns 'BB' Rating on $500 Mil. Notes
LINCOLN NAT'L: Fitch Keeps Low-B Ratings on Three Notes
LINENS 'N THINGS: Court Confirms Modified Third Amended Plan

LUMINENT MORTGAGE: Court Sets June 18 Plan Confirmation Hearing
MAGNA ENTERTAINMENT: Updated Case Summary & 50 Unsecured Creditors
MAGNACHIP SEMICONDUCTOR: Has Prenegotiated Chapter 11 Plan
MAGNACHIP SEMICONDUCTOR: May Use Cash Collateral Until July 8
MARK IV INDUSTRIES: Files Schedules of Assets and Liabilities

MARK IV INDUSTRIES: Secured Lenders to Own 92% of Newco Under Plan
MARY LUDENA: Case Summary & 14 Largest Unsecured Creditors
MGM MIRAGE: Gets Requisite Consents for $750MM Secured Notes
MICHAEL CALDARON: Case Summary & 20 Largest Unsecured Creditors
MOMENTIVE PERFORMANCE: Issues $200MM of 12-1/2% Notes Due 2014

MORTON INDUSTRIAL: Wins Court OK to Sell Biz for $33MM
NANOGEN INC: Court Approves Auction of Assets on June 23
NAVISTAR INT'L: Hikes Equity Stake in Joint Ventures With Ford
NORTH SHORE MUSIC: May File for Bankruptcy Protection
NORTHSHORE ASSET: Receiver to Hold Auction of Assets on July 10

NTK HOLDINGS: Taps Blackstone and Weil Gotshal as Advisors
OMNI LINGUAL SERVICES: Voluntary Chapter 11 Case Summary
OPUS SOUTH: Wachovia Bank Agrees to Pay For Firm's Bills
OSI RESTAURANT: Chief Operating Office Resigns, CEO Assumes Role
PACIFIC ENERGY: Seeks Nov. 4 Plan Deadline; Eyes Asset Sales

PAETEC HOLDING: Moody's Assigns 'B1' Rating on $350 Mil. Notes
PAETEC HOLDING: S&P Assigns 'B' Rating on $350 Mil. Debt
PALM INC: Cuts Board Seats to Eight, Names Rubinstein CEO & Prez
PENHALL HOLDING: Moody's Cuts Corporate Family Rating to 'Caa2'
PHILADELPHIA NEWSPAPERS: Gets 60-Day Extension for Plan Filing

PHILADELPHIA NEWSPAPERS: May Have Special Lawyer for Taping Issue
PPLACE TWO: Case Summary & 46 Largest Unsecured Creditors
QPC LASERS: Unit's Assets Sale Completion Cues Directors to Resign
QUANTUM CORP: Completes Offering of 4.375% Conv. Sub. Notes
QUANTUM CORP: Delays Filing of March 31 Form 10-Q Quarterly Report

QUANTUM CORP: Will Cease Issuing EMC Corp. Warrant to Buy Shares
QUANTUM CORP: Tender Offer Won't Affect S&P's 'CC' Rating
QUEBECOR WORLD: S&P Downgrades Ratings on Loan to 'B+' From 'BB-'
QUEBECOR WORLD: Committee to Retain Experts for Adversary Cases
QUEBECOR WORLD: Proposes Settlement With Vertis, et al.

REAL MEX: Mulls Offering of $110 Million Senior Secured Notes
REGIONS FINANCIAL: Fitch Cuts Long-Term Issuer Default Rating
RESORTS MEZZANINE: Collateral to be Sold at July 7 Public Auction
RESERVE MANAGEMENT: To Make Second Payout From Int'l Liquidity
RIVIERA HOLDINGS: Files Form 25 With SEC to Delist Common Stock

SABRE HOLDINGS: S&P Downgrades Corporate Credit Rating to 'SD'
SALEM COMMUNICATIONS: S&P Puts 'B-' Rating on CreditWatch Negative
SARAHE ASSOCIATES: Case Summary & 20 Largest Unsecured Creditors
SCO GROUP: Inks Deal to Sell Unix Business to Gulf Capital
SEA CONTAINERS: Post-Confirmation Report for November 2008 Period

SEA CONTAINERS: Post-Confirmation Report for December 2008 Period
SEA CONTAINERS: Post-Confirmation Report for March 2009 Period
SENDTC INC: Seeks Court Approval on Sale to PHIDS Inc.
SHOPPES AT SILVER: Files for Chapter 11 Bankruptcy Protection
SIMTROL INC: Files Amendment to Specification of Shares Issued

SINCLAIR BROADCAST: Moody's Cuts Corporate Family Rating to 'B3'
SMITTY'S BUILDING: Court Confirms Chapter 11 Plan
SOUTHWEST ACADIA: Case Summary & 5 Largest Unsecured Creditors
SPECTRUM BRANDS: U.S. Trustee Fails to Name Creditors' Committee
STAR TRIBUNE: Reaches Tentative Pact With Teamsters Union

SWOLEN LLC: Case Summary & 7 Largest Unsecured Creditors
TARRAGON CORP: Court Approves KEIP for 8 Dallas Employees
TLC VISION: Former CEO to Receive $1-Mil. in Severance Payments
TRANS READ: Case Summary & 3 Largest Unsecured Creditors
TRUMP ENTERTAINMENT: Donald Trump Submits Offer to Acquire Firm

VINEYARD CHRISTIAN: Court Okays Bid Protocol; June 19 Auction Set
VINTAGE AT THE MESA: Case Summary & 19 Largest Unsecured Creditors
VRAD INVESTMENTS: Voluntary Chapter 11 Case Summary
WASHINGTON COUNTY: Will File for Chapter 11 Bankruptcy Protection
WATERFORD CUSTOM: Case Summary & 20 Largest Unsecured Creditors

WCI COMMUNITIES: Plan Filing Period Extended to June 30
WILLIAM LYON: S&P Raises Corporate Credit Rating to 'CCC-'
WR BERKLEY: Moody's Assigns 'Ba1' Initial Preferred Stock Rating
ZILA INC: Posts $1.4 Million Net Loss in Quarter ended April 30

* Factory Production and Wholesale Prices Make Record Lows
* Gov't Turns Down Auto Suppliers' Plea for Up to $10BB in Aid
* Household Wealth Drops $1.3 Trillion in First Quarter

* ICSC Retail Bankruptcy Program in Atlantic City on July 10
* Standard & Poor's Says 2009 Defaults Already Higher Than 2008

* Chapter 11 Cases With Assets and Liabilities Below $1,000,000