property and equipment and the related accumulated depreciation amounts , as well as certain intangible assets recorded in the company 's consolidated balance sheet as of december 31 , 2007 , are based on the independent third party appraisal . derivative instruments and hedging activities pursuant to the refinancing of the securities purchase agreement and the terms of the restructuring agreement , the restructuring parties agreed to amend the warrants issued by mezzco to purchase 17.5 % of the fully diluted equity in mezzco . the warrants contain a net cash settlement , and therefore are accounted for in accordance with emerging issues task force ( `` eitf `` ) 00-19 , `` accounting for derivative financial instruments indexed to , and potentially settled in , a company 's own stock `` . both sfas no . 133 `` accounting for derivative instruments and hedging activities `` and eitf 00-19 require that the warrants be recognized as liabilities , with changes in fair value affecting net income . see `` note 7. long-term debt . `` the terms of the loan agreement required the company to enter into an interest rate cap agreement , which expires on november 30 , 2008 , to manage interest rate risk . the company did not apply cash flow hedge accounting to this instrument . although this derivative was not afforded cash flow hedge accounting , the company retained the instrument as protection against the interest rate risk associated with its long-term borrowings . the company accounts for its derivative activity in accordance with sfas no . 133 and accordingly , recognizes all derivatives on the balance sheet at fair value with any in change in fair value being recorded in interest income or expense in the accompanying consolidated statements of operations . revenues and promotional allowances casino revenues are recognized as the net win from gaming activities , which is the difference between gaming wins and losses . all other revenues are recognized as the service is provided . revenues include the retail value of food , beverage , rooms , entertainment , and merchandise provided on a complimentary basis to customers . such complimentary amounts are then deducted from revenues as promotional allowances on our consolidated statements of operations . the estimated departmental costs of providing such promotional allowances are included in casino costs and expenses . hotel and food and beverage revenues hotel revenue recognition criteria are generally met at the time of occupancy . food and beverage revenue recognition criteria are generally met at the time of service . deposits for future hotel occupancy or food and beverage services are recorded as deferred income until revenue recognition criteria are met . cancellation fees for hotel and food and beverage services are recognized upon cancellation by the customer as defined by a written contract entered into with the customer . players ' club program players ' club members earn points based on gaming activity , which can be redeemed for cash . we accrue expense related to this program as the points are earned based on historical redemption percentages . 25 allowance for doubtful accounts our receivables balances relate primarily to our hotel and casino operations . we reserve an estimated amount for receivables that may not be collected . we estimate the allowance for doubtful accounts by applying standard reserve percentages to aged account balances under a specific dollar amount and specifically analyzing the collectibility of each account with a balance over the specified dollar amount , based on the age of the account , the customers ' financial condition , collection history and any other known information . we maintain strict controls over the issuance of markers and aggressively pursue collection from those customers who fail to pay their markers timely . markers are generally legally enforceable instruments in the united states and at december 31 , 2007 and 2006 , all of our casino receivables were owed by customers in the united states . the following table summarizes our receivable balances ( in thousands ) : replace_table_token_2_th self-insurance accruals we are self-insured , up to certain limits , for costs associated with employee medical coverage . we accrue for the estimated expense of known claims , as well as estimates for claims incurred but not yet reported . income taxes the consolidated financial statements include the operations of bh/re and its majority-owned subsidiaries : equityco , mezzco , opbiz , ph mezz ii , ph mezz i , ph fee owner and tsp owner . bh/re and equityco are limited liability companies and are taxed as partnerships for federal income tax purposes . however , mezzco has elected to be taxed as a corporation for federal income tax purposes . opbiz and ph mezz ii , wholly-owned subsidiaries of mezzco , will be treated as divisions of mezzco for federal income tax purposes , and accordingly , will also be subject to federal income taxes . additionally , ph mezz i , a wholly-owned subsidiary of ph mezz ii , ph fee owner , a wholly owned subsidiary of ph mezz i and tsp owner , a wholly owned subsidiary of ph fee owner will also be subject to federal income taxes . mezzco , opbiz , ph mezz ii , ph mezz i , ph fee owner and tsp owner account for income taxes in accordance with sfas no . 109 , `` accounting for income taxes `` . sfas 109 requires the recognition of deferred income tax assets , net of applicable reserves , related to net operating loss carryforwards and certain temporary differences . the standard requires recognition of a future tax benefit to the extent that realization of such benefit is more likely than not . otherwise , a valuation allowance is applied . 26 membership interests as of december 31 , 2007 , our membership interests had not been unitized and our members do not presently intend to unitize these membership interests . story_separator_special_tag the decrease in sg & a expenses was primarily due to reductions in repair and maintenance expenses that were incurred in 2005 but were not incurred in 2006. depreciation and amortization depreciation and amortization expense for the year ended december 31 , 2007 was approximately $ 34.6 million compared to $ 22.5 million for year ended december 31 , 2006. the increase in depreciation and amortization expense was directly related to the assets that were placed in service as the renovation was completed . 32 depreciation and amortization expense for the year ended december 31 , 2006 was approximately $ 22.5 million compared to $ 23.6 million for year ended december 31 , 2005. there were no significant additions to depreciable assets during the year as the most of the additions related to the renovation were placed in service during 2007 as the areas were completed . net interest expense net interest expense increased to $ 71.9 million for the year ended december 31 , 2007 as compared to $ 61.7 million for the year ended december 31 , 2006. interest expense increased as the future funding available under the loan was drawn . see `` management 's discussion and analysis of financial condition and results of operations description of certain indebtedness `` below . net interest expense increased to $ 61.7 million for the year ended december 31 , 2006 as compared to $ 55.0 million for the year ended december 31 , 2005. for the year ended december 31 , 2005 , the interest expense under the credit agreement was calculated using the minimum spread of libor plus 125 basis points which increased to libor plus 325 basis points for the year ended december 31 , 2006. additionally , the paid-in-kind interest on the mezzanine financing increased as the outstanding principal balance increased . story_separator_special_tag of the credit agreement , upon repayment of all amounts due , the warrant to purchase 2.5 % of the equity in equityco issued to the lenders at the closing of the credit agreement became exercisable . the company compensated the holders of all unexercised warrants in accordance with the terms of a letter agreement between the parties and the warrants were canceled . in order to permit the lender to foreclose on the hotel and casino separately and to allow opbiz to continue to operate the casino after such a foreclosure ( should the lender choose to do so ) , title to the real property comprising the hotel and casino ( the `` property `` ) was transferred from opbiz to ph fee owner . opbiz and ph fee owner then entered into a lease pursuant to which opbiz agreed to continue to operate the hotel in the manner it had been and to pay monthly rent of approximately $ 916,000. opbiz and ph fee owner also entered into a lease pursuant to which opbiz agreed to continue to operate the casino in the manner it had been and to pay monthly rent of approximately $ 1,160,000. in connection with the loan , the lender required that trophy hunter investments , ltd. , bay harbour 90-1 , ltd. and bay harbour master ltd. , which are affiliates of bay harbour management , execute and deliver a certain guaranty ( as described below ) . in exchange for trophy hunter investments , ltd. and bay harbour master ltd. ( the `` guarantors `` ) executing the guaranty , opbiz and ph fee owner agreed to pay to trophy hunter investments , ltd. and bay harbour master ltd. a fee 35 equal to $ 1,500,000 per year . the fee is accrued and only payable once opbiz hits certain debt service coverage ratios defined in the loan agreement . in connection with the loan , the guarantors entered into a guaranty , dated november 30 , 2006 ( the `` guaranty `` ) , pursuant to which the guarantors agreed to indemnify the lender against losses related to certain prohibited actions of the borrower and guarantied full repayment of the loan in the case of a voluntary or collusive bankruptcy of the borrower , a transfer of the property or interests in the borrower in violation of the loan agreement and if the borrower fails to maintain its status as a bankruptcy remote entity and as a result sees its assets consolidated with those of an affiliate in a bankruptcy . the liability of the guarantors is capped at $ 15,000,000 per entity and $ 30,000,000 in the aggregate , however this cap does not apply to ( i ) liability arising from events , acts or circumstances actually committed or brought about by the willful acts of any of the guarantors and ( ii ) the extent of any benefit received by any of the guarantors as a result of the acts giving rise to the liability under the guaranty . each of douglas teitelbaum and robert earl executed and delivered guaranties substantially the same as that delivered by the guarantors , however the liability of each of them was limited to ( i ) liability arising from events , acts or circumstances actually committed or brought about by willful acts by him and ( ii ) the extent of any benefit received by him as a result of the acts giving rise to the liability under the guaranty . in connection with the loan , the guarantors and robert earl executed and delivered a completion guaranty , dated november 30 , 2006 , pursuant to which they jointly and severally guarantied the completion of the renovation of the property and payment of all costs associated therewith . the liability under the completion guaranty is capped at the greater of ( a ) $ 35,000,000 and ( b ) only in the case that cost overruns for the renovation exceed $ 15,000,000 , 24 % of the then unpaid costs of the completion of the renovation . in addition , in connection

loss on early extinguishment of debt for the year ended december 31 , 2006 , the company recorded a loss on early extinguishment of debt of $ 60.2 million associated with the repayment of the debt outstanding under the credit agreement once the refinance was complete . this loss was comprised of the unamortized balance of the original issue discount recorded in connection with the credit agreement of $ 20.6 million , an exit fee payable to the lenders under the credit agreement of $ 3.7 million , a call premium on the notes of $ 26.8 million and the write-off of previously deferred debt issuance costs and warrant amortization of $ 9.1 million . liquidity and capital resources during the year ended december 31 , 2007 , the ph resort utilized cash flows from operating activities of approximately $ 20.7 million and had a balance of $ 21.5 million in cash and cash equivalents as of december 31 , 2007. we also had current restricted cash and cash equivalents of approximately $ 32.0 million and long-term restricted cash and cash equivalents of approximately $ 45.6 million at december 31 , 2007. the current restricted cash and cash equivalents are primarily reserve accounts that have been established under the loan agreement to guarantee payment of property taxes , insurance and furniture , fixtures and equipment replacement . current restricted cash also includes the balance in the cash management account . under the terms of the loan agreement , all cash receipts are deposited into a cash management account under lender control which is used to fund reserves and operating expenses . the long-term cash and cash equivalents include funds designated for the remaining payments associated with the renovation project and the interest reserve account balance which will be released once certain debt service coverage ratios are achieved . see `` description of certain indebtedness '' below . our primary cash requirements for 2008 are expected to include ( i ) approximately $ 10.7 million for maintenance capital expenditures or replacement furniture , fixtures and equipment and ( ii ) up to approximately $ 54.8 million in interest payments on our debt .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```loss on early extinguishment of debt for the year ended december 31 , 2006 , the company recorded a loss on early extinguishment of debt of $ 60.2 million associated with the repayment of the debt outstanding under the credit agreement once the refinance was complete . this loss was comprised of the unamortized balance of the original issue discount recorded in connection with the credit agreement of $ 20.6 million , an exit fee payable to the lenders under the credit agreement of $ 3.7 million , a call premium on the notes of $ 26.8 million and the write-off of previously deferred debt issuance costs and warrant amortization of $ 9.1 million . liquidity and capital resources during the year ended december 31 , 2007 , the ph resort utilized cash flows from operating activities of approximately $ 20.7 million and had a balance of $ 21.5 million in cash and cash equivalents as of december 31 , 2007. we also had current restricted cash and cash equivalents of approximately $ 32.0 million and long-term restricted cash and cash equivalents of approximately $ 45.6 million at december 31 , 2007. the current restricted cash and cash equivalents are primarily reserve accounts that have been established under the loan agreement to guarantee payment of property taxes , insurance and furniture , fixtures and equipment replacement . current restricted cash also includes the balance in the cash management account . under the terms of the loan agreement , all cash receipts are deposited into a cash management account under lender control which is used to fund reserves and operating expenses . the long-term cash and cash equivalents include funds designated for the remaining payments associated with the renovation project and the interest reserve account balance which will be released once certain debt service coverage ratios are achieved . see `` description of certain indebtedness '' below . our primary cash requirements for 2008 are expected to include ( i ) approximately $ 10.7 million for maintenance capital expenditures or replacement furniture , fixtures and equipment and ( ii ) up to approximately $ 54.8 million in interest payments on our debt .
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 Suspicious Activity Report : property and equipment and the related accumulated depreciation amounts , as well as certain intangible assets recorded in the company 's consolidated balance sheet as of december 31 , 2007 , are based on the independent third party appraisal . derivative instruments and hedging activities pursuant to the refinancing of the securities purchase agreement and the terms of the restructuring agreement , the restructuring parties agreed to amend the warrants issued by mezzco to purchase 17.5 % of the fully diluted equity in mezzco . the warrants contain a net cash settlement , and therefore are accounted for in accordance with emerging issues task force ( `` eitf `` ) 00-19 , `` accounting for derivative financial instruments indexed to , and potentially settled in , a company 's own stock `` . both sfas no . 133 `` accounting for derivative instruments and hedging activities `` and eitf 00-19 require that the warrants be recognized as liabilities , with changes in fair value affecting net income . see `` note 7. long-term debt . `` the terms of the loan agreement required the company to enter into an interest rate cap agreement , which expires on november 30 , 2008 , to manage interest rate risk . the company did not apply cash flow hedge accounting to this instrument . although this derivative was not afforded cash flow hedge accounting , the company retained the instrument as protection against the interest rate risk associated with its long-term borrowings . the company accounts for its derivative activity in accordance with sfas no . 133 and accordingly , recognizes all derivatives on the balance sheet at fair value with any in change in fair value being recorded in interest income or expense in the accompanying consolidated statements of operations . revenues and promotional allowances casino revenues are recognized as the net win from gaming activities , which is the difference between gaming wins and losses . all other revenues are recognized as the service is provided . revenues include the retail value of food , beverage , rooms , entertainment , and merchandise provided on a complimentary basis to customers . such complimentary amounts are then deducted from revenues as promotional allowances on our consolidated statements of operations . the estimated departmental costs of providing such promotional allowances are included in casino costs and expenses . hotel and food and beverage revenues hotel revenue recognition criteria are generally met at the time of occupancy . food and beverage revenue recognition criteria are generally met at the time of service . deposits for future hotel occupancy or food and beverage services are recorded as deferred income until revenue recognition criteria are met . cancellation fees for hotel and food and beverage services are recognized upon cancellation by the customer as defined by a written contract entered into with the customer . players ' club program players ' club members earn points based on gaming activity , which can be redeemed for cash . we accrue expense related to this program as the points are earned based on historical redemption percentages . 25 allowance for doubtful accounts our receivables balances relate primarily to our hotel and casino operations . we reserve an estimated amount for receivables that may not be collected . we estimate the allowance for doubtful accounts by applying standard reserve percentages to aged account balances under a specific dollar amount and specifically analyzing the collectibility of each account with a balance over the specified dollar amount , based on the age of the account , the customers ' financial condition , collection history and any other known information . we maintain strict controls over the issuance of markers and aggressively pursue collection from those customers who fail to pay their markers timely . markers are generally legally enforceable instruments in the united states and at december 31 , 2007 and 2006 , all of our casino receivables were owed by customers in the united states . the following table summarizes our receivable balances ( in thousands ) : replace_table_token_2_th self-insurance accruals we are self-insured , up to certain limits , for costs associated with employee medical coverage . we accrue for the estimated expense of known claims , as well as estimates for claims incurred but not yet reported . income taxes the consolidated financial statements include the operations of bh/re and its majority-owned subsidiaries : equityco , mezzco , opbiz , ph mezz ii , ph mezz i , ph fee owner and tsp owner . bh/re and equityco are limited liability companies and are taxed as partnerships for federal income tax purposes . however , mezzco has elected to be taxed as a corporation for federal income tax purposes . opbiz and ph mezz ii , wholly-owned subsidiaries of mezzco , will be treated as divisions of mezzco for federal income tax purposes , and accordingly , will also be subject to federal income taxes . additionally , ph mezz i , a wholly-owned subsidiary of ph mezz ii , ph fee owner , a wholly owned subsidiary of ph mezz i and tsp owner , a wholly owned subsidiary of ph fee owner will also be subject to federal income taxes . mezzco , opbiz , ph mezz ii , ph mezz i , ph fee owner and tsp owner account for income taxes in accordance with sfas no . 109 , `` accounting for income taxes `` . sfas 109 requires the recognition of deferred income tax assets , net of applicable reserves , related to net operating loss carryforwards and certain temporary differences . the standard requires recognition of a future tax benefit to the extent that realization of such benefit is more likely than not . otherwise , a valuation allowance is applied . 26 membership interests as of december 31 , 2007 , our membership interests had not been unitized and our members do not presently intend to unitize these membership interests . story_separator_special_tag the decrease in sg & a expenses was primarily due to reductions in repair and maintenance expenses that were incurred in 2005 but were not incurred in 2006. depreciation and amortization depreciation and amortization expense for the year ended december 31 , 2007 was approximately $ 34.6 million compared to $ 22.5 million for year ended december 31 , 2006. the increase in depreciation and amortization expense was directly related to the assets that were placed in service as the renovation was completed . 32 depreciation and amortization expense for the year ended december 31 , 2006 was approximately $ 22.5 million compared to $ 23.6 million for year ended december 31 , 2005. there were no significant additions to depreciable assets during the year as the most of the additions related to the renovation were placed in service during 2007 as the areas were completed . net interest expense net interest expense increased to $ 71.9 million for the year ended december 31 , 2007 as compared to $ 61.7 million for the year ended december 31 , 2006. interest expense increased as the future funding available under the loan was drawn . see `` management 's discussion and analysis of financial condition and results of operations description of certain indebtedness `` below . net interest expense increased to $ 61.7 million for the year ended december 31 , 2006 as compared to $ 55.0 million for the year ended december 31 , 2005. for the year ended december 31 , 2005 , the interest expense under the credit agreement was calculated using the minimum spread of libor plus 125 basis points which increased to libor plus 325 basis points for the year ended december 31 , 2006. additionally , the paid-in-kind interest on the mezzanine financing increased as the outstanding principal balance increased . story_separator_special_tag of the credit agreement , upon repayment of all amounts due , the warrant to purchase 2.5 % of the equity in equityco issued to the lenders at the closing of the credit agreement became exercisable . the company compensated the holders of all unexercised warrants in accordance with the terms of a letter agreement between the parties and the warrants were canceled . in order to permit the lender to foreclose on the hotel and casino separately and to allow opbiz to continue to operate the casino after such a foreclosure ( should the lender choose to do so ) , title to the real property comprising the hotel and casino ( the `` property `` ) was transferred from opbiz to ph fee owner . opbiz and ph fee owner then entered into a lease pursuant to which opbiz agreed to continue to operate the hotel in the manner it had been and to pay monthly rent of approximately $ 916,000. opbiz and ph fee owner also entered into a lease pursuant to which opbiz agreed to continue to operate the casino in the manner it had been and to pay monthly rent of approximately $ 1,160,000. in connection with the loan , the lender required that trophy hunter investments , ltd. , bay harbour 90-1 , ltd. and bay harbour master ltd. , which are affiliates of bay harbour management , execute and deliver a certain guaranty ( as described below ) . in exchange for trophy hunter investments , ltd. and bay harbour master ltd. ( the `` guarantors `` ) executing the guaranty , opbiz and ph fee owner agreed to pay to trophy hunter investments , ltd. and bay harbour master ltd. a fee 35 equal to $ 1,500,000 per year . the fee is accrued and only payable once opbiz hits certain debt service coverage ratios defined in the loan agreement . in connection with the loan , the guarantors entered into a guaranty , dated november 30 , 2006 ( the `` guaranty `` ) , pursuant to which the guarantors agreed to indemnify the lender against losses related to certain prohibited actions of the borrower and guarantied full repayment of the loan in the case of a voluntary or collusive bankruptcy of the borrower , a transfer of the property or interests in the borrower in violation of the loan agreement and if the borrower fails to maintain its status as a bankruptcy remote entity and as a result sees its assets consolidated with those of an affiliate in a bankruptcy . the liability of the guarantors is capped at $ 15,000,000 per entity and $ 30,000,000 in the aggregate , however this cap does not apply to ( i ) liability arising from events , acts or circumstances actually committed or brought about by the willful acts of any of the guarantors and ( ii ) the extent of any benefit received by any of the guarantors as a result of the acts giving rise to the liability under the guaranty . each of douglas teitelbaum and robert earl executed and delivered guaranties substantially the same as that delivered by the guarantors , however the liability of each of them was limited to ( i ) liability arising from events , acts or circumstances actually committed or brought about by willful acts by him and ( ii ) the extent of any benefit received by him as a result of the acts giving rise to the liability under the guaranty . in connection with the loan , the guarantors and robert earl executed and delivered a completion guaranty , dated november 30 , 2006 , pursuant to which they jointly and severally guarantied the completion of the renovation of the property and payment of all costs associated therewith . the liability under the completion guaranty is capped at the greater of ( a ) $ 35,000,000 and ( b ) only in the case that cost overruns for the renovation exceed $ 15,000,000 , 24 % of the then unpaid costs of the completion of the renovation . in addition , in connection

