The Securities and Exchange Commission has not necessarily reviewed the information in this filing and has not determined if it is accurate and complete.
The reader should not assume that the information is accurate and complete.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 13F

FORM 13F INFORMATION TABLE
OMB APPROVAL
OMB Number: 3235-0006
Estimated average burden
hours per response: 23.8
COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 COLUMN 8
VALUE SHRS OR SH/ PUT/ INVESTMENT OTHER VOTING AUTHORITY
NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DISCRETION MANAGER SOLE SHARED NONE
AAR CORP COM 000361105 2,106 92,500 SH Call DFND 1 92,500 0 0
ALASKA AIR GROUP INC COM 011659109 12,684 240,000 SH Call DFND 1 240,000 0 0
ALLIANCE HEALTHCARE SRVCS IN COM PAR $0.01 018606301 11,951 764,143 SH   DFND 1 764,143 0 0
ARCH COAL INC COM 039380100 7,137 1,950,000 SH Call DFND 1 1,950,000 0 0
BEAZER HOMES USA INC COM NEW 07556Q881 8,760 500,000 SH   DFND 1 500,000 0 0
BOEING CO COM 097023105 43,361 420,000 SH Call DFND 1 420,000 0 0
BOYD GAMING CORP COM 103304101 5,650 500,000 SH   DFND 1 500,000 0 0
BOYD GAMING CORP COM 103304101 20,038 1,750,000 SH Call DFND 1 1,750,000 0 0
CACI INTL INC CL A 127190304 8,994 140,000 SH Put DFND 1 140,000 0 0
CARROLS RESTAURANT GROUP INC COM 14574X104 10,985 1,700,502 SH   DFND 1 1,700,502 0 0
CEMEX SAB DE CV SPON ADR NEW 151290889 19,806 1,872,000 SH   DFND 1 1,872,000 0 0
CENTRAL EUROPEAN MEDIA ENTRP CL A NEW G20045202 4,150 1,250,000 SH Call DFND 1 1,250,000 0 0
CF INDS HLDGS INC COM 125269100 102,168 600,000 SH Put DFND 1 600,000 0 0
CHENIERE ENERGY INC COM NEW 16411R208 805 29,000 SH   SOLE   29,000 0 0
CHENIERE ENERGY INC COM NEW 16411R208 23,318 840,000 SH   DFND 1 840,000 0 0
COMMONWEALTH REIT COM SH BEN INT 203233101 16,184 700,000 SH   DFND 1 700,000 0 0
COMMUNITY HEALTH SYS INC NEW COM 203668108 1,406 30,000 SH   SOLE   30,000 0 0
COMMUNITY HEALTH SYS INC NEW COM 203668108 11,908 254,000 SH   DFND 1 254,000 0 0
CROSSTEX ENERGY INC COM 22765Y104 652 33,000 SH   SOLE   33,000 0 0
CROSSTEX ENERGY INC COM 22765Y104 14,695 743,651 SH   DFND 1 743,651 0 0
DRESSER-RAND GROUP INC COM 261608103 12,422 200,000 SH Call DFND 1 200,000 0 0
DRYSHIPS INC SHS Y2109Q101 348 186,000 SH   SOLE   186,000 0 0
DRYSHIPS INC SHS Y2109Q101 1,870 1,000,000 SH   DFND 1 1,000,000 0 0
DRYSHIPS INC. NOTE 5.000%12/0 262498AB4 27,877 31,411,000 PRN   SOLE   31,411,000 0 0
DRYSHIPS INC. NOTE 5.000%12/0 262498AB4 56,624 63,802,000 PRN   DFND 1 63,802,000 0 0
DYNEGY INC NEW DEL COM 26817R108 6,550 290,476 SH   SOLE   290,476 0 0
DYNEGY INC NEW DEL COM 26817R108 41,453 1,838,250 SH   DFND 1 1,838,250 0 0
ENERGY XXI (BERMUDA) LTD USD UNRS SHS G10082140 13,172 594,000 SH   DFND 1 594,000 0 0
ENERGY XXI (BERMUDA) LTD USD UNRS SHS G10082140 6,780 300,000 SH Call DFND 1 300,000 0 0
FELCOR LODGING TR INC COM 31430F101 1,478 250,000 SH   SOLE   250,000 0 0
FELCOR LODGING TR INC COM 31430F101 11,820 2,000,000 SH   DFND 1 2,000,000 0 0
FERRO CORP COM 315405100 1,022 147,000 SH   SOLE   147,000 0 0
FERRO CORP COM 315405100 31,155 4,482,769 SH   DFND 1 4,482,769 0 0
FIFTH & PAC COS INC COM 316645100 19,005 850,700 SH   DFND 1 850,700 0 0
FINISAR CORP COM NEW 31787A507 10,170 600,000 SH   DFND 1 600,000 0 0
FOREST OIL CORP COM PAR $0.01 346091705 2,597 635,000 SH   SOLE   635,000 0 0
FOREST OIL CORP COM PAR $0.01 346091705 25,767 6,300,000 SH   DFND 1 6,300,000 0 0
GENERAL MTRS CO COM 37045V100 16,655 500,000 SH   DFND 1 500,000 0 0
GOODYEAR TIRE & RUBR CO COM 382550101 7,745 500,000 SH Call DFND 1 500,000 0 0
HEALTH MGMT ASSOC INC NEW CL A 421933102 1,729 110,000 SH   SOLE   110,000 0 0
HEALTH MGMT ASSOC INC NEW CL A 421933102 21,694 1,380,000 SH   DFND 1 1,380,000 0 0
HESS CORP COM 42809H107 2,793 42,000 SH   SOLE   42,000 0 0
HESS CORP COM 42809H107 43,551 655,000 SH   DFND 1 655,000 0 0
HOVNANIAN ENTERPRISES INC CL A 442487203 2,752 490,600 SH   DFND 1 490,600 0 0
ISHARES TR RUSSELL 2000 464287655 5,520 56,000 SH Call SOLE   56,000 0 0
ISHARES TR RUSSELL 2000 464287655 147,870 1,500,000 SH Call DFND 1 1,500,000 0 0
ISHARES TR RUSSELL 2000 464287655 246,450 2,500,000 SH Put DFND 1 2,500,000 0 0
LEAP WIRELESS INTL INC NOTE 4.500% 7/1 521863AL4 19,418 19,370,000 PRN   SOLE   19,370,000 0 0
LIBERTY MEDIA CORP DEB 4.000%11/1 530715AG6 40,240 58,960,000 PRN   SOLE   58,960,000 0 0
LIBERTY MEDIA CORP DEB 4.000%11/1 530715AG6 25,730 37,700,000 PRN   DFND 1 37,700,000 0 0
MASCO CORP COM 574599106 15,007 770,000 SH   DFND 1 770,000 0 0
METHANEX CORP COM 59151K108 25,701 600,000 SH   DFND 1 600,000 0 0
MTR GAMING GROUP INC COM 553769100 168 50,000 SH   SOLE   50,000 0 0
MTR GAMING GROUP INC COM 553769100 8,945 2,670,022 SH   DFND 1 2,670,022 0 0
NRG ENERGY INC COM NEW 629377508 2,576 96,479 SH   SOLE   96,479 0 0
NRG ENERGY INC COM NEW 629377508 43,001 1,610,521 SH   DFND 1 1,610,521 0 0
OCEAN RIG UDW INC SHS Y64354205 5,780 308,590 SH   SOLE   308,590 0 0
OCEAN RIG UDW INC SHS Y64354205 19,131 1,021,410 SH   DFND 1 1,021,410 0 0
PEABODY ENERGY CORP COM 704549104 512 35,000 SH   SOLE   35,000 0 0
RITE AID CORP COM 767754104 26,645 9,316,600 SH   DFND 1 9,316,600 0 0
SAIC INC COM 78390X101 8,340 600,000 SH Call DFND 1 600,000 0 0
SANDRIDGE ENERGY INC COM 80007P307 14,280 3,000,000 SH   DFND 1 3,000,000 0 0
SPDR S&P 500 ETF TR TR UNIT 78462F103 24,204 150,000 SH Call SOLE   150,000 0 0
SPDR S&P 500 ETF TR TR UNIT 78462F103 37,920 235,000 SH Put SOLE   235,000 0 0
SPDR S&P 500 ETF TR TR UNIT 78462F103 1,171,474 7,260,000 SH Put DFND 1 7,260,000 0 0
SUPERIOR ENERGY SVCS INC COM 868157108 472 18,202 SH   SOLE   18,202 0 0
SUPERIOR ENERGY SVCS INC COM 868157108 476 18,200 SH Put SOLE   18,200 0 0
SUPERIOR ENERGY SVCS INC COM 868157108 17,297 666,798 SH   DFND 1 666,798 0 0
SUPERIOR ENERGY SVCS INC COM 868157108 17,423 666,800 SH Put DFND 1 666,800 0 0
SUPERVALU INC COM 868536103 2,755 442,900 SH   SOLE   442,900 0 0
SUPERVALU INC COM 868536103 34,217 5,501,100 SH   DFND 1 5,501,100 0 0
TWO HBRS INVT CORP COM 90187B101 23,831 2,325,000 SH   DFND 1 2,325,000 0 0
U S AIRWAYS GROUP INC COM 90341W108 36,960 2,200,000 SH Call DFND 1 2,200,000 0 0
U S G CORP COM NEW 903293405 13,139 570,000 SH   DFND 1 570,000 0 0
UNIVERSAL HLTH SVCS INC CL B 913903100 1,339 20,000 SH   SOLE   20,000 0 0
UNIVERSAL HLTH SVCS INC CL B 913903100 15,401 230,000 SH   DFND 1 230,000 0 0
WALTER ENERGY INC COM 93317Q105 796 76,500 SH   SOLE   76,500 0 0
WALTER ENERGY INC COM 93317Q105 16,952 1,630,000 SH   DFND 1 1,630,000 0 0
WALTER INVT MGMT CORP NOTE 4.500%11/0 93317WAA0 24,426 24,095,000 PRN   DFND 1 24,095,000 0 0
WALTER INVT MGMT CORP COM 93317W102 9,298 275,000 SH   DFND 1 275,000 0 0
YRC WORLDWIDE INC NOTE 10.000% 3/3 984249AB8 1,155 1,157,930 PRN   DFND 1 1,157,930 0 0