X0202 3/A 2007-02-21 2007-02-21 1 0001373641 Highland Distressed Opportunities, Inc. HCD 0001365143 Daugherty Pat H 13455 NOEL ROAD, SUITE 800 DALLAS TX 75240 0 0 0 1 PORTFOLIO MANAGER This amendment restates the original filing in its entirety. PATRICK H. DAUGHERTY 2007-02-26