/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/070523.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, May 23, 2007, Vol. 8, No. 101 Headlines A U S T R I A BAUSTOFF RECYCLING: Wiener Neustadt Orders Business Shutdown CLUB-SCHIFF: Claims Registration Period Ends June 13 E & V VERWALTUNG: Claims Registration Period Ends June 1 GUENES KEG: Claims Registration Period Ends June 1 PERNKOPF KEG: Claims Registration Period Ends June 26 B E L G I U M GENERAL MOTORS: Investing US$332 Mln in Ohio Transmission Plant GENERAL MOTORS: Investing US$61 Mln in New Casting Technology HEXION SPECIALTY: March 31 Equity Deficit Tops US$1.4 Billion LERNOUT & HAUSPIE: Belgian Court Opens Fraud Case MEGA BRANDS: Weak Performance Cues S&P to Downgrade Ratings F R A N C E COMPLETEL SAS: Moody's Lifts Rating to B2 on Good Performance DELPHI CORP: Seeks Court Approval on IRS Pension Plan Waivers DELPHI CORP: Wants Court Nod on EDS Settlement Agreement GAP INC: Sales Down 11% to US$1.09 Bln in 4-Week Period to May 5 G E R M A N Y AQUARELAX GMBH: Claims Registration Period Ends June 4 BAU-IDEE DUEHR: Claims Registration Period Ends June 8 BRISTEIN VERLAG: Claims Registration Period Ends June 20 CREPES SUZETTE: Creditors' Meeting Slated for June 21 D.B. BAU: Claims Registration Period Ends June 5 DAIMLERCHRYSLER: Cerberus Adds Chrysler to Form Giant Auto Biz DAIMLERCHRYSLER AG: Shoulders US$1 Billion Chrysler Pension Risk DAIMLERCHRYSLER: Chrysler Breaks Ground on Marysville Axle Plant DOMUS MEDICUS: Claims Registration Period Ends August 21 DUERR AG: CEO Ralf Dieter Confirms Dividend Payment for 2007 EGON PRACHT: Creditors' Meeting Slated for June 11 ELSBECK BAU: Creditors' Meeting Slated for June 21 ESTRICHBAU EICKHOLT: Claims Registration Ends June 22 FIELD VERTRIEBS: Claims Registration Ends July 15 FOERTSCH HOLZBAU: Claims Registration Ends July 6 FRIEDRICH WILHELM: Claims Registration Ends June 5 GERSTHOFER WOHNUNGSBAU: Claims Registration Ends June 12 GLOBAL MARKETING: Creditors' Meeting Slated for June 21 LEGL BAU: Claims Registration Period Ends June 22 LINN & JUNG: Claims Registration Period Ends June 27 RWR COMPUTERGESTUETZTE: Claims Registration Period Ends June 17 HI PRO MEAT: Claims Registration Period Ends June 20 HOLZ- UND BAUTENSCHUTZ: Claims Registration Ends June 29 HYN BAUDEKORATION: Claims Registration Ends July 25 ISIS BETEILIGUNGS: Claims Registration Ends June 6 JM CONSULTING: Claims Registration Ends June 21 KARL-HEINZ BIDLINGMAIER: Creditors Must File Claims by June 20 KLAUS GARTNER: Creditors Must Register Claims by June 11 KLAUS HILGERS: Creditors Must Register Claims by June 25 KOENIGSHOF DORTMUND: Creditors Must Register Claims by June 26 MALERPROFIS MEISTERBETRIEB: Creditors Meeting Slated for July 30 MICHAEL SCHUHMANN: Claims Registration Period Ends July 17 MUELLER & PARTNER: Claims Registration Period Ends June 22 PULLOVER PST: Claims Registration Period Ends July 5 RUKLAH BAU: Claims Registration Period Ends July 3 STRATEGIES FOR EXCELLENCE: Claims Registration Ends July 9 USCHOLD VERWALTUNGS: Claims Registration Period Ends June 13 VISTEON CORP: Names Michael Widgren as Chief Accounting Officer VISTEON CORP: Inks Letter Agreement with LB Group and Ford Motor WEHA & MELISS: Claims Registration Period Ends June 19 G R E E C E JAFRA COSMETICS: S&P Withdraws Low-B Ratings After Repayment I R E L A N D BOMBARDIER INC: S&P Revises Outlook to Stable from Negative EURCREDIT CDO: Moody's Rates EUR19.8 Mln Class E Notes at Ba3 I T A L Y IMAX CORP: Faces NASDAQ Delisting Due to Delayed Filing TK ALUMINUM: Eyes Sale & Restructuring of Italian Subsidiaries K A Z A K H S T A N BIELA LLP: Creditors Must File Claims by June 22 ILOT LLP: Creditors' Claims Due June 5 KROKUS LTD: Proof of Claim Deadline Slated for June 20 PAVLODAR-SHAR LLP: Claims Registration Ends June 22 REMSERVICE LLP: Claims Filing Period Ends June 20 SAMGAU-999 LLP: Creditors Must File Claims by June 8 TAIS LLP: Creditors' Claims Due June 8 VOSTOCHNY EXPRESS: Claims Registration Ends June 22 VYBOR LLP: Claims Filing Period Ends June 8 ZAUR-S LLP: Proof of Claim Deadline Slated for June 5 P O L A N D GRAHAM PACKAGING: March 31 Equity Deficit Tops US$624 Million R U S S I A BULZINSKOYE OJSC: Creditors Must File Claims by June 28 BURGUN-MADZHARSKOYE: Court Starts Bankruptcy Supervision Process DIAMOND LLC: Creditors Must File Claims by June 28 ENGINEERING COMPANY: Creditors Must File Claims by June 28 INTEKS-CITY LLC: Moscow Bankruptcy Hearing Slated for Aug. 9 KARBAINOVSKOYE OF TYUKALINSKIY: Claims Deadline Set June 28 MONOLITH GROUP: Creditors Must File Claims by June 28 ORLOV-FURNITURE OJSC: Creditors Must File Claims by June 28 PAVLOVSKIY INSTRUMENTAL: Creditors Must File Claims by June 28 ROSNEFT OIL: Russia Restores Firm's Strategic Enterprise Status SAKHA-FLOR CJSC: Creditors Must File Claims by May 28 SORTAVALSKIY FISH: Bankruptcy Hearing Slated for Sept. 27 SUAL GROUP: To Build Bauxite & Alumina Site in Komi Republic TMK OAO: Earns US$460.6 Million in Full Year 2006 TMK OAO: Inks Strategic Partnership Deal with OAO Surgutneftegas TSAREVSKIY MEAT: Chuvashiya Court Hearing Slated for Aug. 14 VLADIVOSTOKSKIY FACTORY: Creditors Must File Claims by May 28 ZAINSK-AGRO-KHIM-SERVICE: Creditors Must File Claims by May 28 S P A I N ACXIOM CORPORATION: Earns US$70.7 Million in Year Ended March 31 ACXIOM CORP: Silver Lake Deal Cues S&P's Negative Watch S W I T Z E R L A N D GUNTEN JAKOB: Claims Registration Period Ends June 2 HOBLA CATERING: Claims Registration Period Ends June 1 SPACENET SERVICES: Zug Court Starts Bankruptcy Proceedings SWISSAIR: Creditors May Get Back 10% of Claims, Liquidators Say U K R A I N E AGROBRAND LLC: Creditors Must File Claims by May 27 AGROLAN-SOUTH LLC: Creditors Must File Claims by May 27 AIR INDUSTRY: Claims Filing Bar Date Set May 26 EUROSERVICE-FINANCE: Creditors Must File Claims by May 27 IKS-TRADE LLC: Creditors Must File Claims by May 27 KRECHET LLC: Creditors Must File Claims by May 26 MALIKS LLC: Creditors Must File Claims by May 27 MOSCOW-PODOLYE: Creditors Must File Claims by May 26 RIVNE FLAX: Claims Filing Bar Date Set May 27 TH QUANT: Creditors Must File Claims by May 27 U N I T E D K I N G D O M ADVANSTAR COMMUNICATIONS: Extends Tender Offer Expiry to May 30 ALL AMERICAN: Committee Turns to Mesirow for Financial Advice BAA PLC: Consortium Buys Budapest Airport Shares for EUR1.9 Bln BRITISH AIRWAYS: Joins TPG Consortium in Potential Iberia Bid BRITISH SKY: Virgin Media Rejects Carriage Compromise Proposal COLT TELECOM: telent Wins Three-Year Communications Contract FORD MOTOR: Wixom Assembly Plant in Michigan to Close on May 31 GLOBAL CROSSING: March 31 Equity Deficit Tops US$290 Million INEOS GROUP: Ineos Capital Buys Norsk Hydro's Polymer Business INEOS GROUP: ChlorVinyls Unit Sells E-PVC Business to Vinnolit IOSTAR PLC: Funding Shortage Triggers Liquidation LEEDS UNITED: SR Morris Group Confirms GBP10 Mln Takeover Bid RESLOC UK: Fitch Puts Low-B Ratings on 3 Mortgage Note Classes SOLUTIA INC: Files Amended Plan and Disclosure Statement SOLUTIA: Unsecured Creditors to Get 84.9% Under Amended Plan SOLUTIA INC: Amended Plan Estimates Enterprise Value at $3.2 Bln SOLUTIA INC: Sees $633 Mil. Earnings for 2007 Under Amended Plan VIRGIN MEDIA: Turns Down BSkyB's Carriage Compromise Proposal YELL GROUP: Earns GBP216.3 Million in Year Ended March 31, 2007 ********* ============= A U S T R I A ============= BAUSTOFF RECYCLING: Wiener Neustadt Orders Business Shutdown ------------------------------------------------------------ The Land Court of Wiener Neustadt entered April 26 an order shutting down the business of LLC Baustoff Recycling Deponie (FN 253834k). Court-appointed estate administrator Petra Klingenschmid recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Mag. Petra Klingenschmid Wassergasse 20 2500 Baden Austria Tel: 02252/252 991 Fax: 02252/252991-25 E-mail: office@aurednik.at Headquartered in Tribuswinkel/Oeynhausen, Austria, the Debtor declared bankruptcy on April 10 (Bankr. Case No 11 S 44/07t). CLUB-SCHIFF: Claims Registration Period Ends June 13 ---------------------------------------------------- Creditors owed money by LLC Club-Schiff Johann Strauss (FN 225119h) have until June 13 to file written proofs of claim to court-appointed estate administrator Karl Schirl at: Dr. Karl Schirl Krugerstrasse 17/3 1010 Vienna Austria Tel: 513 22 31 E-mail: dr.karl.schirl@der-rechtsanwalt.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:50 a.m. on June 27 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on April 25 (Bankr. Case No. 2 S 61/07v). E & V VERWALTUNG: Claims Registration Period Ends June 1 -------------------------------------------------------- Creditors owed money by LLC E & V Verwaltung (FN 247559h) have until June 1 to file written proofs of claim to court-appointed estate administrator Erik Kroker at: Dr. Erik Kroker Schmerlingstrasse 2 6020 Innsbruck Austria Tel: 0512/58 30 74 Fax: 0512/58 30 74 18 E-mail: kroker@kanzlei-tirol.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on June 18 for the examination of claims. The meeting of creditors will be held at: The Land Court of Innsbruck Meeting Hall 212 Second Floor New Building Maximilianstrasse 4 6020 Innsbruck Austria Headquartered in Kitzbuehel, Austria, the Debtor declared bankruptcy on April 30 (Bankr. Case No. 19 S 49/07i). GUENES KEG: Claims Registration Period Ends June 1 -------------------------------------------------- Creditors owed money by KEG Guenes (FN 213933h) have until June 1 to file written proofs of claim to court-appointed estate administrator Herbert Matzunski at: Dr. Herbert Matzunski Salurner Strasse 16/1 6020 Innsbruck Austria Tel: 0512/582716-0 Fax: 0512/571467 E-mail: law@hauska-matzunski.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:30 p.m. on June 18 for the examination of claims. The meeting of creditors will be held at: The Land Court of Innsbruck Meeting Hall 212 Second Floor New Building Maximilianstrasse 4 6020 Innsbruck Austria Headquartered in Innsbruck, Austria, the Debtor declared bankruptcy on April 30 (Bankr. Case No. 19 S 50/07m). PERNKOPF KEG: Claims Registration Period Ends June 26 ----------------------------------------------------- Creditors owed money by KEG Pernkopf (FN 224909z) have until June 26 to file written proofs of claim to court-appointed estate administrator Ernst Lehenbauer at: Mag. Ernst Lehenbauer Hauptplatz 21 4470 Enns Austria Tel: 07223/810 10 E-mail: ra.lehenbauer@attglobal.net Creditors and other interested parties are encouraged to attend the creditors' meeting at 1:30 p.m. on July 10 for the examination of claims. The meeting of creditors will be held at: The Land Court of Steyr Hall 7 Second Floor Steyr Austria Headquartered in Garsten, Austria, the Debtor declared bankruptcy on April 25 (Bankr. Case No. 14 S 16/07m). ============= B E L G I U M ============= GENERAL MOTORS: Investing US$332 Mln in Ohio Transmission Plant --------------------------------------------------------------- General Motors Corp. will invest US$332 million in its transmission plant in Toledo, Ohio to produce a new six-speed, front-wheel-drive automatic transmission that will deliver an excellent balance of performance and fuel economy in GM's mid- size vehicle segment. The investment includes facility renovation, new machinery, equipment and special tooling to support the production of the new Hydra-Matic 6T40/45 six-speed transmission. In addition to the US$332 million facility investment, GM will invest an additional US$57 million for vendor tooling, containers and investments at other locations necessary to support the Toledo operations. Construction is slated to begin in July, and production of the transmission is scheduled to begin in February 2010. The project will retain about 600 hourly jobs. "Six-speed transmissions play a key role in GM's commitment to change the way the world drives," John Buttermore, GM Powertrain vice president of global manufacturing, said. "With more fuel- efficient transmissions and engines, as well as advanced propulsion technologies like flex fuels, hybrids and fuel cells, GM is transforming its product portfolio to reduce fuel consumption and emissions, while maintaining outstanding driving performance. The GM Powertrain Toledo plant and the new fuel- efficient products we are bringing here are integral in that transformation." The investment is in addition to a US$540 million investment GM disclosed last year for rear-wheel-drive six-speed transmission production at the Toledo Transmission plant. Construction of the 400,000 sq. ft. project is about two months ahead of schedule. "GM's investments in Ohio, totaling close to US$1 billion in the last year, is a significant vote of confidence in our employees and UAW Local 14 who have demonstrated their commitment and dedication to benchmark performance that is contributing to the company's turnaround," Mr. Buttermore said. Mr. Buttermore thanked Ohio's leaders on the federal, state, county and local levels -- including Ohio Gov. Ted Strickland and Toledo Mayor Carty Finkbeiner -- for providing the business case to support GM's investments in Ohio. "GM is making an enormous commitment to the State of Ohio and I commend them for their investment in our state," Ohio Gov. Ted Strickland said. "This is good news for Ohio workers and a testament to the great value of our highly skilled workforce and competitive business climate." The new 6T40/45 transmission provides improved fuel economy and performance and features a compact, contemporary design. It allows the vehicle to stay in first gear longer, improving launch and acceleration. It also retains an overdrive in top gear for low-rpm highway cruising. The transmission's gear set is on the same axis as the engine crankshaft centerline, which makes the entire powertrain more compact. This provides chassis designers more flexibility in designing the vehicle's interior space compared to a conventional off-axis transaxle. GM Powertrain's Toledo Transmission facility opened in 1916, and moved to its present location in 1955. For five consecutive years from 2000 to 2004 the Toledo Transmission Plant was ranked No. 1 in productivity by Harbour & Associates Inc.'s annual report on North American transmission and powertrain plants. The plant ranked No. 2 in 2005 and 2006. The 2.1 million sq. ft. plant employs 2,033 hourly and 265 salaried employees with an annual payroll of US$276 million. About the Company General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. It has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. * * * Standard & Poor's Ratings Services assigned its 'B+' bank loan rating to General Motors Corp.'s proposed US$1.5 billion senior term loan facility, expiring 2013, with a recovery rating of '1'. The 'B+' rating was placed on Creditwatch with negative implications, consistent with the other issue ratings of GM, excluding recovery ratings. Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the proposed US$1.5 Billion secured term loan of General Motors Corporation. The term loan is expected to be secured by a first priority perfected security interest in all of the U.S. machinery and equipment, and special tools of GM and Saturn Corporation. GENERAL MOTORS: Investing US$61 Mln in New Casting Technology ------------------------------------------------------------- General Motors Corp. will invest US$61 million in new technology at its plant in Defiance, Ohio, to produce aluminum engine blocks in 3.6-liter high-feature V-6 engines. This will be the first application of precision sand casting technology at the plant. The precision sand technology results in higher material strength properties needed to support the newer, more efficient engines in GM's product portfolio. The 3.6-liter high-feature V-6 engine has applications in the Cadillac CTS, SRX and STS; and the GMC Acadia, Saturn Outlook and Buick Enclave crossover SUVs. The investment includes plant renovation and installation of new tooling and machinery for the new technology. Refurbishment of 120,000 square feet portion of the plant is slated to begin in June, with production of the precision sand engine block castings to begin in December 2009. The project will retain about 120 hourly jobs. "We are transforming GM's casting business and moving in a new technological direction to be competitive in the changing marketplace," Arvin Jones, GM Powertrain manufacturing manager for castings and components, said. "The Defiance plant is part of that transformation. This investment is possible because of the involvement of employees in improving the quality of our products and the efficiency of the operations here. Their efforts are contributing to GM's turnaround in North America." The GM Powertrain Defiance plant management and UAW Local 211 leadership successfully negotiated a competitive operating agreement that improves operational effectiveness. The agreement also addresses processes and methods to improve production quality and safety of the operations. "On behalf of GM, I commend the United Auto Workers, UAW Local 211 and Ohio 's leaders on the state and local levels. Working together we were able to build a competitive business case to support this investment in Ohio. This investment, combined with GM Powertrain's investments at its transmission plant in Toledo, total nearly US$1 billion that GM has committed to its Ohio facilities in the last year," Mr. Jones said. Precision sand casting involves a resin-bonded sand that forms a mold, which shapes the contours of the engine block to be produced. The sand is cured into a solid exterior mold. Molten metal is then poured into the mold. This process allows the use of cast-in-place iron liners, pressurized aluminum filling and produces a high degree of dimensional accuracy. "T[his] marks an exciting new chapter in this plant's 59-year history of producing high quality castings for GM engine blocks and heads," John Thomas, Defiance plant manager, said. "This investment plays a significant role in GM's continuing commitment to build exciting, fuel-efficient powertrains for the global market." GM Powertrain's Defiance casting plant poured their first iron on Aug. 23, 1948. The plant employs 1,554 hourly and 246 salary workers and has an annual payroll of US$135 million. In 2006, the plant produced 1,423,368 grey iron engine blocks, 1,078,497 grey iron cylinder heads, 206,577 aluminum engine blocks, 154,055 aluminum cylinder heads, as well as malleable iron transmission parts and nodular iron crank shafts. Grey iron cylinder blocks and cylinder heads manufactured at Defiance are used in the Vortec 4.8-liter, 5.3-liter and 6.0-liter V-8 engines that power GM's full-size SUVs and light-duty pickups and the Duramax 6.6-liter V-8 diesel engine that powers the Chevy Silverado HD and GMC Sierra HD pickups. Aluminum engine blocks and cylinder heads produced at Defiance are used in the 3.0-liter In-line four-cylinder and 3.7-liter five-cylinder engines that power the Chevrolet Colorado, GMC Canyon and Hummer H3. About the Company General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- the world's largest automaker, has been the global industry sales leader since 1931. Founded in 1908, GM employs about 317,000 people around the world. It has manufacturing operations in 32 countries. General Motors has Asia-Pacific operations in India, China, Indonesia, Japan, the Philippines, among others. I t has locations in European countries including Belgium, Austria, and France. In Latin-America, the company maintains locations in Argentina, Brazil, Chile, Colombia, Ecuador, Venezuela, Paraguay and Uruguay. * * * Standard & Poor's Ratings Services assigned its 'B+' bank loan rating to General Motors Corp.'s proposed US$1.5 billion senior term loan facility, expiring 2013, with a recovery rating of '1'. The 'B+' rating was placed on Creditwatch with negative implications, consistent with the other issue ratings of GM, excluding recovery ratings. Moody's Investors Service assigned a Ba3, LGD1, 9% rating to the proposed US$1.5 Billion secured term loan of General Motors Corporation. The term loan is expected to be secured by a first priority perfected security interest in all of the U.S. machinery and equipment, and special tools of GM and Saturn Corporation. HEXION SPECIALTY: March 31 Equity Deficit Tops US$1.4 Billion ------------------------------------------------------------- Hexion Specialty Chemicals Inc. at March 31, 2007, recorded total assets of US$3.7 billion, total liabilities of US$5.1 billion, minority interest of US$10 million and a total stockholders' deficit of US$1.4 billion. For the first quarter of 2007, the company recorded revenues of US$1.44 billion in 2007 compared to US$1.23 billion during the prior year period, an increase of 17%. Operating income of US$104 million for the first quarter 2007 compared with first quarter 2006 operating income of US$110 million. Last year's operating income, however, included a gain of US$37 million from the sale of non-core assets, net of which earnings were up 42%. Net income of US$4 million for the 2007 quarter versus net income of US$35 million in the prior year period. The prior year period included the gain from the sale of non-core assets, which increased net income in the first quarter 2006 by US$31 million. Sources and Uses of Cash The company stated in its current quarterly report that it is a highly leveraged company. The company said that its liquidity requirements are significant, primarily due to its debt service requirements. At March 31, 2007, the company had US$3.5 billion of debt, including US$58 million of short-term maturities. In addition, the company had US$55 million of cash and equivalents. At March 31, 2007, the company had additional borrowing capacity under its senior secured revolving credit facilities of US$134 million. It has additional credit facilities at certain domestic and international subsidiaries with various expiration dates through 2008. As of March 31, 2007, the company had US$68 million available under these facilities to fund working capital needs and capital expenditures. A full-text copy of the company's first quarter 2007 report is available for free at http://ResearchArchives.com/t/s?1fa4 "Hexion's diverse product portfolio and increasing international sales enabled us to post improved quarterly revenues and Segment EBITDA compared to the same prior year period," said Craig O. Morrison, chairman, president and chief executive officer. "We saw strong customer demand for a number of our products, such as epoxy resins and intermediates, phenolic specialty resins, versatic acid and derivatives, oilfield services and international forest product resins and formaldehyde, which more than offset some softening in our volumes in the North American residential construction and automotive markets." "We maintained our emphasis on pricing pass through to recover the rapid rise in raw materials that occurred throughout 2006," Mr. Morrison said. "With the leveling off of raw materials in the first quarter 2007, the impact of our synergies, Six Sigma projects and other initiatives were reflected in our bottom line." Hexion continued to realize its targeted synergies as planned, with US$11 million in achieved synergies this quarter. "We are on track to achieve US$125 million by year-end 2007 from the full synergy program targeting US$175 million in savings," Mr. Morrison said. "We continue to be encouraged by the prospects for a more favorable raw material environment going forward and positive demand from our global customers leading to revenue and Segment EBITDA growth in 2007," Mr. Morrison said. Orica's Adhesives and Resins Business As previously announced during the quarter, Hexion also completed the purchase of the adhesives and resins business of Orica Ltd. in February 2007. The Orica adhesives and resins business manufactures formaldehyde and formaldehyde-based binding resins that are used primarily in the forest products industry. The integration of the Orica business into the global Hexion network is proceeding as planned, according to Morrison. About Hexion Specialty Chemicals Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. -- http://hexionchem.com/-- makes thermosetting resins (or thermosets). Thermosets add a desired quality (heat resistance, gloss, adhesion) to a number of different paints and adhesives. Hexion also makes formaldehyde and other forest product resins, epoxy resins, and raw materials for coatings and inks. The company has 86 manufacturing and distribution facilities in 18 countries. The company has its Asian headquarters in Singapore, with offices in Australia, China, Korea, Malaysia, New Zealand, Taiwan, and Thailand. The company has its European headquarters in Belgium, with offices in Czech Republic, Finland, France, Germany, Italy, Netherlands, Portugal, Spain, Sweden and UK. LERNOUT & HAUSPIE: Belgian Court Opens Fraud Case ------------------------------------------------- The fraud trial against the former bosses of Lernout & Hauspie Speech Products N.V. opened in Belgium on May 21, 2007, The Associated Press says. According to the report, Jo Lernout, Pol Hauspie and 19 others face charges of accounting and stock fraud to boost the value of the firm's shares. "We will show that there was no fraud," Mr. Lernout was quoted by AP as saying. Former shareholders disagreed, and 13,368 joined with Deminor, a company assisting minority shareholders and investors, to seek redress and demand millions in compensation, AP relates. According to EuroNews, the Lernout & Hauspie was founded in 1987, and grew into a group worth around GBP7.5 billion with a listing on the Nasdaq. The technology, where a computer program recognized somebody talking and was able to write out the words spoken, made Lernout and Hauspie business heroes in Belgium, EuroNews relates. Headquartered in Ypres, Belgium, and Burlington, Massachusetts, Lernout & Hauspie Speech Products N.V. was a speech and language technology company founded in 1987 by Jo Lernout and Pol Hauspie. In 1995 the company went public on Nasdaq (LHSP) and was also quoted on the Easdaq. At its peak, L&H had a market capitalization of around US$10 billion. Jesse Eisinger of the Wall Street Journal revealed a major financial scandal involving fictitious transactions in Korea and improper accounting methodologies of the company on Aug. 8, 2000, leading to the arrest of Mr. Lernout and Mr. Hauspie together with the former L&H CEO Gaston Bastianens. Lernout & Hauspie Speech Products and its debtor-affiliates filed for Chapter 11 protection on November 29, 2000, (Bankr. Del. Case No. 00-04398). When the Debtors filed for protection from their creditors in the United States, they listed US$2,372,776,000 in total assets, and US$489,608,000 in total debts, representing US$255,311,000 in short term and US$234,297,000 long term liabilities. L&H commenced a concordat reorganization proceeding in Belgium on Nov. 30, 2000, which was rejected by the Belgian Court in December 2000. On Dec. 27, 2000, L&H NV commenced a subsequent concordaat proceeding in Belgium, which was granted in January 2001. A concordaat procedure is Belgium's version of a Chapter 11 proceeding. Under the Jan. 5, 2001, order of the Ieper Commercial Court granting the concordat proceeding, L&H NV had six months, or until June 5, 2001, to have a plan of reorganization approved by its creditors in the concordat proceeding. On June 5, 2001, the creditors in the concordat approved L&H NV's plan. However, the Belgian court declined to approve the plan as filed, but extended the concordat proceeding through Sept. 30, 2001, to allow L&H NV to file a revised Belgium plan, which was done by L&H NV on Sept. 10, 2001. On Sept. 21, 2001, the Ieper Commercial Court conditionally approved the revised Belgium reorganization plan. On Oct. 22, 2001, L&H re-filed its petition for temporary protection from creditors, after the court of appeals in Ghent rejected L&H's petition on Oct. 18, 2001. On Oct. 24, 2001, the Ypres Commercial Court in Belgium proclaimed Lernout & Hauspie Speech Products NV insolvent undertaking a similar ruling from the Ghent court. Eventually, the Hon. Judith Wizmur of the Delaware Court confirmed the Creditors' Committee's Plan of Liquidation for Lernout & Hauspie Speech Products, N.V., on May 29, 2003. Robert J. Dehney, Esq., Gregory W. Werkheiser, Esq., of Morris, Nichols, Arsht & Tunnell represent the Debtors. Ira S. Dizengoff, Esq., and James R. Savin, Esq., of Akin Gump Strauss Hauer & Feld LLP; and Francis A. Monaco, Esq., and Joseph J. Bodnar, Esq., of Monzack and Monaco, represent the software company's Creditors' Committee. MEGA BRANDS: Weak Performance Cues S&P to Downgrade Ratings ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its ratings on Montreal, Quebec-based MEGA Brands Inc., including the long-term corporate credit rating on the company, to 'B+' from 'BB-'. The ratings remain on CreditWatch with negative implications, where they were placed April 20, 2007. "The downgrade and CreditWatch listing reflect ongoing concerns that earnings and credit measures at MEGA Brands are much weaker than expected because of significant problems the company is facing with its Magnetix product," said Standard & Poor's credit analyst Lori Harris. These challenges include product recalls, product replacement, and product liability settlement expenses. "Although MEGA Brands could be reimbursed for certain Magnetix- related expenses, the magnitude of the charges related to the litigation in first-quarter 2007 and the resulting negative impact on the company's debt levels and credit ratios were not expected," Ms. Harris added. MEGA Brands has chosen to be self-insured for Magnetix products manufactured before May 1, 2006, and for incidents occurring after Dec. 1, 2006, because the cost of insurance is viewed as prohibitive. Management's decision to be self-insured raises uncertainty surrounding the company's potential exposure to liability claims and MEGA Brands' ability to financially support these claims without excessively jeopardizing the financial strength of the business. In addition, the company is involved in litigation with the former shareholders of Rose Art Industries Inc., concerning contingent payments related to MEGA Brands' acquisition of the business in 2005. An additional $51 million in accrued consideration has yet to be paid because MEGA Brands is disputing the claim. To resolve the CreditWatch listing, Standard & Poor's will meet with management and review MEGA Brands' operating and financial strategies, including the company's plans to deal with the litigation risk that it faces. MEGA Brands Inc. -- http://www.megabrands.com/-- (TSE:MB) is a distributor of construction toys, games & puzzles, arts & crafts and stationery. The company is headquartered in Montreal, Canada and has offices in Belgium, United Kingdom, Germany, France, Spain, Mexico, and Australia. =========== F R A N C E =========== COMPLETEL SAS: Moody's Lifts Rating to B2 on Good Performance ------------------------------------------------------------- Moody's Investors Service upgraded to B2 from B3 the corporate family rating of Completel S.A.S and the rating on Completel's EUR80 million senior notes due 2012. Concurrently, Moody's upgraded Completel's probability of default rating to B1 from B2. The outlook on the ratings is stable. Moody's said that the rating upgrades reflect Completel's successful execution of the expansion plan announced in July 2005 and its improved operational performance, which Moody's expects to result in an enhancement in the company's credit metrics for year-end 2007. Specifically, Total Debt to EBITDA is expected to be below 3.0x by year-end 2007, compared to 4.8x at year-end 2006. The rating upgrades also reflect Moody's expectation that Completel will continue to deleverage whilst its profitability improves and that it will achieve a free cash- flow positive position by fourth quarter 2007. Moody's notes that in 2006 Completel delivered both its new national fibre backbone covering 110 cities and its extensive DSL network with approximately 600 collocation sites connected. The company is now starting to benefit from its increased scale and geographical reach, which have translated into higher revenues and EBITDA. In first quarter 2007, Completel's revenues grew by 24% compared to the same quarter the previous year and its Adjusted EBITDA grew by 79% over the same period. The B2 rating factors Completel's modern and efficient extended network, its diversified customer base, and management's proven ability to grow revenues and improve profitability. However, it also reflects the company's limited size and scale, and the fierce competitive environment in France, where Completel faces competition from France Telecom and Neuf/Cegetel, which are larger and better-capitalized entities. Although Moody's views Completel's liquidity as adequate, it expects that the current cash position (EUR46.3 million as of first quarter 2007) will continue to be reduced until fourth quarter 2007, when the company is expected to generate positive free cash flows. Moody's also notes that Completel has no access to alternative liquidity facilities. Upward pressure on the ratings would be likely in the event that the company continues to show revenue growth and is able to grow gross margins above the 40% level, while maintaining leverage levels of Total Debt/EBITDA at or below 3.0x on a sustainable basis and a positive free cash-flow profile. Although the covenants in the bond indenture allow for significant financial flexibility for debt incurrence (Debt/EBITDA covenant of 4.25x), it is Moody's expectation that the company will continue to operate under a very conservative financial strategy and will not deviate from current leverage levels. Whilst considered unlikely at this juncture, downward rating pressure could materialize in the event that there is a significant delay in achieving a positive free cash flow and if the company suffers profitability pressures such that EBITDA margin is sustained below 10%. Negative pressure could also arise if the company were to change its current conservative financial strategy or investment policy. In addition, the B2 rating on the notes would come under negative pressure if the company were to incur senior secured debt ahead of the senior notes. Moody's previous rating action on Completel was on April 4, 2007, when a Loss Given Default Assessment of LGD4 was assigned to the EUR80 million senior notes due 2012. Headquartered in Paris, France, Completel is an alternative provider of telecom services to medium and large business and carrier customers in France. Completel is the only alternative operator in France with a very large metropolitan fibre access network and a comprehensive national DSL network, the third largest in terms of coverage of the French population. Completel now covers most French medium and large companies, the majority of French SMEs and almost the entire French wholesale market. The company generated revenues of EUR233 million and EBITDA of EUR20.5 million in 2006. Business customers contributed around 77% of revenues, with the remainder generated from wholesale customers. 66% of corporate revenues are voice- related and 34% are data-related. DELPHI CORP: Seeks Court Approval on IRS Pension Plan Waivers ------------------------------------------------------------- Delphi Corp. and its debtor-affiliates ask the U.S. Bankruptcy Court for the Southern District of New York for permission to: (a) perform under pension funding waivers issued by the United States Internal Revenue Service; and (b) provide letters of credit to the Pension Benefit Guaranty Corporation in connection with the waivers. Delphi Corp. maintains two separate pension plans for its employees, one for salaried workers and one for hourly workers. The Debtors' funding obligations under the Pension Plans are governed by the Internal Revenue Code of 1986 and the Employee Retirement Income Security Act of 1974, as amended. Under the IRC and ERISA, the Debtors are required to meet certain minimum funding standards for their Pension Plans. Section 4971(a) of the IRC imposes a 10% excise tax penalty on the amount of any funding deficiency on the Pension Plans. In addition, Section 4971(b) of the IRC imposes an excise tax penalty of 100% if the Debtors do not timely correct the funding deficiency. The total potential excise tax that the IRS might assert in respect of the Pension Plans after June 15, 2007, could be more than US$1,400,000,000, John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, tells the Court. The Debtors' Plan Framework Support Agreement with a group of investors led by Appaloosa Management L.P. requires the Debtors to effect a transfer of certain of their hourly pension plan obligations to General Motors Corp. under Section 414(l) of the IRC. To make that transfer economically feasible for the Debtors, Mr. Butler relates that the Debtors must secure a short extension of the statutory June 15, 2007, funding deadline for the Pension Plan Year ended Sept. 30, 2006. The IRS has agreed to waive the Debtors' minimum funding requirements for the Pension Plan Year ended Sept. 30, 2006, until the Debtors emerge from Chapter 11 and bring their funding obligations up to date, Mr. Butler informs the Court. Under an hourly pension plan waiver and a salaried pension plan waiver, the IRS specifically agrees to: (a) extend the June 15, 2007, funding deadline for the Pension Plan Year ended Sept. 30, 2006; and (b) settle its excise tax claims against the Debtors for the Pension Plan Year ended Sept. 30, 2005. In exchange, the Debtors pledge to make an accelerated $10,000,000 contribution to the Hourly Pension Plan upon their emergence from bankruptcy. The Waivers further provide that Delphi must file a Chapter 11 plan by July 31, 2007, and must satisfy any minimum funding requirements by the effective date of a Chapter 11 plan, which must be not later than Nov. 15, 2007. As security for the Debtors' obligations under the Waivers, Delphi will provide the PBGC with letters of credit aggregating $100,000,000 on account of its Hourly Pension Plan and $50,000,000 on account of its Salaried Pension Plan by June 15, 2007. If Delphi does not meet its obligations under the Waivers, the PBGC will apply the proceeds of the Letters of Credit for the benefit of the Pension Plans. Once Delphi emerges from Chapter 11 and satisfies its obligations under the Waivers, the L/Cs will expire. Delphi intends to honor its pension obligations and, thus, does not anticipate that the Letters of Credit will ever be drawn down by the PBGC. The Debtors' total cost for entering into the Waivers is approximately US$5,754,125. "The costs of performing under the Waivers are substantially less than the benefit to be gained from effecting the Section 414(l) transaction and the resolution of the IRS penalty issues," Mr. Butler avers. The terms of the Waivers, Mr. Butler adds, were negotiated among the Debtors, the IRS, and the PBGC at arm's length and in good faith. The Waivers are the largest funding waivers ever granted by the IRS, Mr. Butler notes. About Delphi Corporation Troy, Mich.-based Delphi Corporation -- http://www.delphi.com/ -- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. Fitch Ratings has assigned a rating of 'BB-' to Delphi Corporation's US$2 billion of debtor-in-possession credit facilities. The DIP facilities will consist of a revolving credit portion and a term loan portion and are to be pari passu with each other in terms of priority of repayment, collateral, and guarantees. The term loan and revolving credit will, therefore, share the same ratings. Standard & Poor's Ratings Services lowered its ratings on Delphi Corp. to 'D' after the company's U.S. operations filed for Chapter 11 bankruptcy protection. The recovery rating on Delphi's senior secured bank facility was withdrawn. Delphi, the largest U.S. manufacturer of automotive components, has total debt of about US$6 billion and total unfunded pension obligations and other postretirement employee benefit liabilities of about US$14.5 billion. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2005, the Debtors' balance sheet showed US$17,098,734,530 in total assets and US$22,166,280,476 in total debts. (Delphi Bankruptcy News, Issue No. 69; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). The Debtors' exclusive plan-filing period expires on July 31, 2007. DELPHI CORP: Wants Court Nod on EDS Settlement Agreement -------------------------------------------------------- Electronic Data Systems Corporation, EDS Information Services L.L.C., and EDS de Mexico, S.A. de C.V., provide information technology outsourcing services to Delphi Corp. and its debtor- affiliates pursuant to certain services agreements. EDS is a member of the Official Committee of Unsecured Creditors. On July 28, 2006, EDS filed six proofs of claim against the Debtors asserting payment for goods and services: Unsecured Priority Claim No. Claim Amount Claim Amount --------- ------------ ------------ 12678 US$16,691,418 US$2,061,011 12679 16,691,418 2,061,011 12680 518,330 2,061,011 12681 16,691,418 2,061,011 12682 518,330 2,061,011 12683 16,691,418 2,061,011 The Debtors have determined that some amounts asserted by the EDS Claims are not due and owing pursuant to their books and records. In an effort to consensually resolve their dispute, the Parties negotiated the terms of a settlement agreement. The Settlement Agreement provides for the partial allowance of Claim No. 12678 and the disallowance of Claim Nos. 12679, 12680, 12681, 12682, and 12683, subject to EDS' right to reassert Claim No. 12679. The Debtors agree to allow Claim No. 12678 as a prepetition general unsecured non-priority claim for: (a) US$11,678,813 against Delphi Automotive Systems, LLC; and (b) US$4,999,999 against Delphi Corp. If reasserted, Claim No. 12679 will be (i) allowed for $11,678,813 against Delphi Corp.; and (ii) assertable for $4,999,999 against DAS. DAS reserves its right to contest whether it is an obligor liable for a US$4,999,999 portion of Claim No. 12679. EDS will not be able to reassert Claim No. 12679 against Delphi Corp. if a plan of reorganization confirmed in the Debtors' bankruptcy cases provides for either the substantive consolidation of the Debtors' assets and liabilities, or the full recovery to EDS of Claim No. 12678. Claim Nos. 12678 and 12679, if allowed, will be jointly held by EDS Corp. and EDS Information Services, John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, relates. EDS Corp. will act as the voting claimant on behalf of itself and EDS Information Services on account Claim Nos. 12678 and 12679 in connection with any plan of reorganization filed by the Debtors. In addition, EDS Corp. will accept on behalf of itself and EDS Information Services any and all distributions made under a confirmed plan of reorganization with respect to Claim Nos. 12678 and 12679. Pursuant to Section 363 of the Bankruptcy Code and Rule 9019 of the Federal Rules of Bankruptcy Procedures, the Debtors ask the Court to approve their settlement agreement with EDS. The Debtors believe that the Settlement Agreement is fair and reasonable and in their best interests, as well as that of their creditors. The Debtors, Mr. Butler points out, would waste significant time and incur high costs if they were to continue litigating the EDS Claims. About Delphi Corporation Troy, Mich.-based Delphi Corporation -- http://www.delphi.com/ -- is the single largest global supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. Fitch Ratings has assigned a rating of 'BB-' to Delphi Corporation's US$2 billion of debtor-in-possession credit facilities. The DIP facilities will consist of a revolving credit portion and a term loan portion and are to be pari passu with each other in terms of priority of repayment, collateral, and guarantees. The term loan and revolving credit will, therefore, share the same ratings. Standard & Poor's Ratings Services lowered its ratings on Delphi Corp. to 'D' after the company's U.S. operations filed for Chapter 11 bankruptcy protection. The recovery rating on Delphi's senior secured bank facility was withdrawn. Delphi, the largest U.S. manufacturer of automotive components, has total debt of about US$6 billion and total unfunded pension obligations and other postretirement employee benefit liabilities of about US$14.5 billion. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Aug. 31, 2005, the Debtors' balance sheet showed US$17,098,734,530 in total assets and US$22,166,280,476 in total debts. (Delphi Bankruptcy News, Issue No. 69; Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). The Debtors' exclusive plan-filing period expires on July 31, 2007. GAP INC: Sales Down 11% to US$1.09 Bln in 4-Week Period to May 5 ---------------------------------------------------------------- Gap Inc. reported net sales of US$1.09 billion for the four-week period ended May 5, 2007, which represents an 11% decrease compared with net sales of US$1.23 billion for the four-week period ended April 29, 2006. Due to the 53rd week in fiscal year 2006, April 2007 comparable store sales are compared to the four-week period ended May 6, 2006. The company's comparable store sales for April 2007 decreased 16% compared with a 3% decrease as reported for April 2006. Comparable store sales by division for April 2007 were: * Gap North America: negative 14% versus negative 2% last year * Banana Republic North America: negative 13% versus positive 1% last year * Old Navy North America: negative 20% versus negative 6% last year * International: negative 5% versus negative 3% last year "Driven by the shift of Easter, our April results deteriorated as compared to March," Sabrina Simmons, senior vice president, corporate finance at Gap Inc, said. "In addition, our merchandise margins were significantly below last year largely because of clearance selling at Gap brand. That said, our overall comparable stores sales for the quarter taken as a whole were negative four compared to negative nine last year. Our management team remains committed to making the changes necessary to improve our performance going forward." First Quarter Sales Results and Earnings Guidance For the thirteen weeks ended May 5, 2007, total company net sales were US$3.56 billion, which is an increase of 3% as compared to net sales of US$3.44 billion for the thirteen weeks ended April 29, 2006. Due to the 53rd week in fiscal year 2006, first quarter comparable store sales are compared to the thirteen weeks ended May 6, 2006. The company's first quarter comparable store sales decreased 4% compared with a decrease of 9% in the first quarter of the prior year. The company reiterated that it expects year-over-year change in inventory per square foot to be flat at the end of the first quarter. Comparable store sales by division for the first quarter were: * Gap North America: negative 4% versus negative 8% last year * Banana Republic North America: negative 2% versus negative 5% last year * Old Navy North America: negative 5% versus negative 11% last year * International: negative 3% versus negative 11% last year As of May 5, 2007, Gap Inc. operated 3,154 store locations compared with 3,070 store locations last year. About Gap Inc. Gap Inc. (NYSE: GPS) -- http://www.gapinc.com/-- is an international specialty retailer offering clothing, accessories and personal care products for men, women, children and babies under the Gap, Banana Republic, Old Navy, Forth & Towne and Piperlime brand names. Gap Inc. operates more than 3,100 stores in the United States, the United Kingdom, Canada, France, Ireland and Japan. In addition, Gap Inc. is expanding its international presence with franchise agreements for Gap and Banana Republic in Southeast Asia and the Middle East. * * * As reported in the Troubled Company Reporter on Jan. 10, 2007, Fitch has downgraded its ratings on The Gap Inc.'s Issuer Default Rating to 'BB+' from 'BBB-' and Senior unsecured notes to 'BB+' from 'BBB-'. The Rating Outlook is Negative. As reported in the Troubled Company Reporter on Nov. 21, 2006, Standard & Poor's Ratings Services lowered its corporate credit and senior unsecured ratings on San Francisco-based The Gap Inc. to 'BB+' from 'BBB-'. S&P said the outlook is stable. ============= G E R M A N Y ============= AQUARELAX GMBH: Claims Registration Period Ends June 4 ------------------------------------------------------ Creditors of Aquarelax GmbH Service rund um Wasser und Warme have until June 4 to register their claims with court-appointed insolvency manager Arne Meyer. Creditors and other interested parties are encouraged to attend the meeting at 10:50 a.m. on July 4, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 1240 12th Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Arne Meyer Bismarckstr. 27-29 50672 Cologne Germany Tel: 0221-95275122 Fax: 0221-95275121 The District Court of Cologne opened bankruptcy proceedings against Aquarelax GmbH Service rund um Wasser und Warme on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Aquarelax GmbH Service rund um Wasser und Warme Breite Str. 26 - 30 50226 Frechen Germany Attn: Marc Heckmann, Manager Lindlarer Str. 53 51491 Overath Germany BAU-IDEE DUEHR: Claims Registration Period Ends June 8 ------------------------------------------------------ Creditors of Bau-Idee Duehr GmbH have until June 8 to register their claims with court-appointed insolvency manager Jens Lieser. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on June 22, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bad Neuenahr-Ahrweiler Hall 4 Wilhelmstrasse 55-57 53474 Bad Neuenahr-Ahrweiler Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Jens Lieser Josef-Goerres-Platz 5 56068 Koblenz Germany Tel: 0261-304790 Fax: 0261-9114729 The District Court of Bad Neuenahr-Ahrweiler opened bankruptcy proceedings against Bau-Idee Duehr GmbH on May 7. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bau-Idee Duehr GmbH Attn: Helmut Duehr, Manager Im Seifental 53498 Bad Breisig Germany BRISTEIN VERLAG: Claims Registration Period Ends June 20 -------------------------------------------------------- Creditors of BriStein Verlag GmbH have until June 20 to register their claims with court-appointed insolvency manager Ulrich Zerrath. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 17, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bochum Meeting Hall A 29 Ground Floor Main Building Viktoriastrasse 14 44787 Bochum Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ulrich Zerrath Lange Wanne 57 45665 Recklinghausen Germany The District Court of Bochum opened bankruptcy proceedings against BriStein Verlag GmbH on May 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BriStein Verlag GmbH Attn: Michel Kieselstein, Manager Kantstr. 5-13 44867 Bochum Germany CREPES SUZETTE: Creditors' Meeting Slated for June 21 ----------------------------------------------------- The court-appointed insolvency manager for Crepes Suzette Lizenz-System GmbH, Urte Wellbrock, will present her first report on the Company's insolvency proceedings at a creditors' meeting at 10:20 a.m. on June 21. The meeting of creditors and other interested parties will be held at: The District Court of Bremen Hall 115 Ostertorstr. 25-31 28195 Bremen Germany The Court will also verify the claims set out in the insolvency manager's report at 10:15 a.m. on Aug. 16 at the same venue. Creditors have until July 3 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Urte Wellbrock Ostertorsteinweg 74/75 28203 Bremen Germany Tel: 79 25 70 Fax: 79 25 757 E-mail: bremen@oelb.de Web site: http://www.oelb.de/ The District Court of Bremen opened bankruptcy proceedings against Crepes Suzette Lizenz-System GmbH on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Crepes Suzette Lizenz-System GmbH Attn: Udo Rohde, Manager Friedrich-Karl-Str. 107-109 28211 Bremen Germany D.B. BAU: Claims Registration Period Ends June 5 ------------------------------------------------ Creditors of D.B. Bau Geschaftsfuehrungs GmbH have until June 5 to register their claims with court-appointed insolvency manager Andreas Sontopski. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on June 27, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Muenster Meeting Hall 101 B First Floor Gerichtsstr. 2-6 48149 Muenster Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Andreas Sontopski Gnoiener Platz 1 48493 Wettringen Germany Tel: 02557/9384-0 Fax: +492557938450 The District Court of Muenster opened bankruptcy proceedings against D.B. Bau Geschaftsfuehrungs GmbH on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: D.B. Bau Geschaftsfuehrungs GmbH Attn: Brigitte Dieckmann, Manager Dieselstrasse 39 48565 Steinfurt Germany DAIMLERCHRYSLER: Cerberus Adds Chrysler to Form Giant Auto Biz -------------------------------------------------------------- Cerberus Capital Management LP, the private equity firm buying DaimlerChrysler AG's Chrysler Group, is assembling one of the world's biggest automotive companies as it adds the carmaker to holdings that include GMAC LLC, the former financing unit of General Motors Corp., and the parent of the Alamo Rent-a-Car and National Car Rental chains, Bloomberg News reports. Cerberus has amassed a group of auto-related assets similar to the ones GM and Ford Motor Co. owned before US$25 billion of combined losses in 2005 and 2006 forced them to shed assets, Bloomberg observes. The absence of scrutiny from public shareholders would permit the firm to reduce employee costs and increase productivity before selling Chrysler at a profit. Acquisitions Mark Shift in Private-Equity According to the report, Cerberus led an investor group last year that bought 51 percent of Detroit-based GMAC, which makes home and auto loans. The private-equity firm acquired bankrupt Vanguard Car Rental Holdings LLC, the Tulsa, Oklahoma-based parent of Alamo and National, in 2003 for US$290 million. It paid US$147 million for GenCorp's GDX Automotive unit in 2004, after it lost US$14 million in the first quarter. Cerberus' focus on building another automotive giant from its recent acquisitions is an important shift in the private-equity industry, The Associated Press states, citing analysts as saying. It was common for private equity firms to manage a portfolio of completely diverse companies before but these days, many are forming their portfolio of companies around specific sectors with a goal to become true industry players. Cerberus is also part of a group that offered to invest US$3.4 billion in bankrupt auto-parts maker Delphi Corp, Bloomberg relates. Without giving a reason, Delphi said last month it expects Cerberus to back out. Bloomberg notes that Cerberus began showing interest in the automobile industry in the 1990s, when it acquired stakes including 5 percent in United Auto Inc., a New York-based auto dealership chain. Cerberus -- in for the Long Haul Cerberus Chairman John Snow said in an interview that the firm "can put Chrysler on a sustainable path towards true profitability. We are able to take a longer view, we are able to be patient." "We don't buy with the intention to pursue an exit," Mr. Snow told the AP in an interview. "We buy with the intention, with the clear intention, to help turn the company around, help it achieve its potential." About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA: DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. DAIMLERCHRYSLER AG: Shoulders US$1 Billion Chrysler Pension Risk ---------------------------------------------------------------- DaimlerChrysler AG has assumed extensive guarantees in the wake of Chrysler Group's sale to Cerberus Capital Management LP, the most significant of which is the US$1 billion risk it now shoulders should the unit's pension plans be terminated before an agreement with U.S. agency Pension Benefit Guaranty Corporation expires in five years, a scenario that would come into fruition in case of an insolvency, published reports claim. The agency has said that Daimler and Cerberus made significant financial commitments to boost Chrysler's pensions: Chrysler will pay US$200 million more than legally required into pension funds until 2012, The Financial Times reveals. This will also affect Daimler's figures, given that Daimler holds a 19.9 percent stake in Chrysler. In mid-July discussions over payment agreements, which expire in September, are due to begin, in which pension funds and health insurance are key issues. "We have said that with the closing of the transaction, the topic of pension obligations is settled. If there is something coming, then we know what is coming," a Daimler spokesman said. The agreement was based on the agency's model, which calculates risks in the event that the pension plans were terminated immediately, Reuters relates, quoting the spokesman. A federal corporation created under the Employee Retirement Income Security Act of 1974, the PBGC monitors corporate transactions that might jeopardize the financial security of U.S. defined-benefit pension plans and arranges protection for the plans and the pension insurance program, Reuters notes. PBGC receives no funds from general tax revenue but is financed largely by insurance premiums paid by companies that sponsor pension plans and by investment returns. "I commend both Daimler and Cerberus on their willingness to work with the PBGC to protect the retirement security of Chrysler workers and retirees," PBGC Interim Director Vince Snowbarger said in a recent statement. About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA: DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. DAIMLERCHRYSLER: Chrysler Breaks Ground on Marysville Axle Plant ---------------------------------------------------------------- DaimlerChrysler AG's Chrysler Group has broken ground on a US$700 million axle plant in Marysville, Michigan, the unit's first major investment since it was sold to Cerberus Capital Management LP, Reuters states. The TCR-Europe reported on April 19, 2007, that Chrysler would boost the Michigan economy with an investment of US$1.78 billion, much of it to start a multi-product "Powertrain Offensive." The initiative will consist of: * US$730 million for a new plant in Trenton, Mich., to produce the "Phoenix" family of V-6 engines; * US$700 million in Marysville, Mich., to build a new axle plant; * US$300 million in the Sterling Heights (Mich.) Assembly Plant (SHAP) to expand its paint shop; and * US$50 million for retooling of Warren Truck Assembly Plant and Warren Stamping Plant for future product. The US$1.78 billion Michigan program investment includes product development costs and is part of the "Recovery and Transformation Plan" that Mr. LaSorda announced on February 14, 2007. The Chrysler restructuring plan is aimed at restoring the company to profitability by 2008 and includes 13,000 job cuts and the closure of an assembly plant dedicated to the slow- selling Dodge Durango sport utility vehicle, Reuters says. Chrysler said construction of the Marysville plant would begin this summer and projects that the plant will employ 900 workers when it reaches full volume in 2010 and produce 1.2 million axles per year, Reuters relates. "The investment in Marysville is a great start for the new Chrysler Corporation," United Auto Workers Vice President General Holiefield said in a statement. "It shows that when we work together, we can preserve good-paying manufacturing jobs in the United States." About DaimlerChrysler Based in Stuttgart, Germany, DaimlerChrysler AG (NYSE:DCX) (FRA: DCX) -- http://www.daimlerchrysler.com/-- develops, manufactures, distributes, and sells various automotive products, primarily passenger cars, light trucks, and commercial vehicles worldwide. It primarily operates in four segments: Mercedes Car Group, Chrysler Group, Commercial Vehicles, and Financial Services. The company's worldwide operations are located in: Canada, Mexico, United States, Argentina, Brazil, Venezuela, China, India, Indonesia, Japan, Thailand, Vietnam, and Australia. The Chrysler Group segment offers cars and minivans, pick-up trucks, sport utility vehicles, and vans under the Chrysler, Jeep, and Dodge brand names. It also sells parts and accessories under the MOPAR brand. The Chrysler Group is facing a difficult market environment in the United States with excess inventory, non-competitive legacy costs for employees and retirees, continuing high fuel prices and a stronger shift in demand toward smaller vehicles. At the same time, key competitors have further increased margin and volume pressures -- particularly on light trucks -- by making significant price concessions. In addition, increased interest rates caused higher sales & marketing expenses. In order to improve the earnings situation of the Chrysler Group as quickly and comprehensively, measures to increase sales and cut costs in the short term are being examined at all stages of the value chain, in addition to structural changes being reviewed as well. DOMUS MEDICUS: Claims Registration Period Ends August 21 -------------------------------------------------------- Creditors of Domus Medicus GmbH have until Aug. 21 to register their claims with court-appointed insolvency manager Heiner Buss. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Sept. 18, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Aurich Hall 23 Schlossplatz 2 26603 Aurich Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Heiner Buss Hauptstrasse 169 D 26639 Wiesmoor Germany Tel: 049 44/10 33 Fax: 049 44/91 20 35 The District Court of Aurich opened bankruptcy proceedings against Domus Medicus GmbH on April 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Domus Medicus GmbH Attn: Gerold Ommen, Manager Wallster Loog 2 26607 Aurich Germany DUERR AG: CEO Ralf Dieter Confirms Dividend Payment for 2007 ------------------------------------------------------------ At the Annual Shareholders' Meeting of Duerr AG, CEO Ralf Dieter confirmed the company's intention to resume a dividend payment in the coming year. During the meeting, Mr. Dieter presented the annual financial statements for 2006 and the company's targets. Core messages were the achievement of all the company's targets in the past fiscal year and the optimistic outlook for 2007. Despite a strong improvement in earnings, the Annual Shareholders' Meeting resolved to strengthen the capital base and not to pay a dividend for 2006. The main reasons were the still slightly negative operating cash flow in 2006 and Duerr AG's only small unappropriated profit. Mr. Dieter confirmed the target of a further strong earnings improvement in 2007. In addition, Duerr aims to achieve a clearly positive cash flow. "We want to generate free cash so that we can invest, continue on our innovation path and pay a dividend to our shareholders again," Mr. Dieter said. Ralph Heuwing, who took over as CFO on May 14, 2007, introduced himself to the shareholders. The Annual Shareholders' Meeting, which was held for the first time at the company's headquarters in Stuttgart-Zuffenhausen, ratified the acts of the members of the Board of Management by a majority of 99.99% and the acts of the members of the Supervisory Board by a majority of 99.97% of the votes. Ernst & Young AG Wirtschaftspruefungsgesellschaft were re-appointed as auditors for the 2007 fiscal year. The Annual Shareholders' Meeting also adopted all the other items on the agenda by a large majority. Duerr has got off to a good start in 2007. In the first quarter incoming orders were up 20% year on year to EUR508.3 million. The operating result (EBIT before one-time expenses) improved to EUR3.1 million after a loss of -EUR0.9 million still in the first quarter of 2006. About Duerr Headquartered in Stuttgart, Germany, Duerr AG -- http://www.durr.com/en-- supplies products, systems, and services for automobile manufacturing. Its range of products and services covers important stages of vehicle production. As a systems supplier, Duerr plans and builds complete paint shops and final assembly facilities. It also delivers cleaning and filtration systems for the manufacture of engine and transmission components as well as balancing systems. * * * As of April 10, 2007, Duerr AG carries Moody's Long-term Corporate Family rating of B2, Senior Subordinated Debt rating of Caa1 with Outlook Negative. Moody's also assigned Loss-Given-Default Rating of LGD5 for Duerr's 9.75% Senior Subordinated Regular Bond/Debenture Due 2011. Standard & Poor's assigned Long-Term Foreign Issuer Credit rating of B to Duerr, its Long-term Local Issuer Credit is at B with Outlook Stable. EGON PRACHT: Creditors' Meeting Slated for June 11 -------------------------------------------------- The court-appointed insolvency manager for Egon Pracht GmbH, Werner F. Muehlenbrock, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:10 a.m. on June 11. The meeting of creditors and other interested parties will be held at: The District Court of Essen Meeting Hall 293 Second Floor Zweigertstr. 52 45130 Essen Germany The insolvency manager can be reached at: Werner F. Muehlenbrock Overwegstr. 47 45879 Gelsenkirchen Germany The District Court of Essen opened bankruptcy proceedings against Egon Pracht GmbH on April 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Egon Pracht GmbH Attn: Bernd Pracht, Manager Emscherstr. 68 45891 Gelsenkirchen Germany ELSBECK BAU: Creditors' Meeting Slated for June 21 -------------------------------------------------- The court-appointed insolvency manager for Elsbeck Bau GmbH, Karina Schwarz, will present her first report on the Company's insolvency proceedings at a creditors' meeting at 10:40 a.m. on June 21. The meeting of creditors and other interested parties will be held at: The District Court of Magdeburg Justice Center Breiter Weg 203 - 206 39104 Magdeburg Germany The insolvency manager can be reached at: Karina Schwarz Klausenerstr. 24 39112 Magdeburg Germany Tel: 0391/ 6286260 Fax: 0391/ 6286266 E-Mail: magdeburg@Rechtsanwaelte-Schwarz.de The District Court of Magdeburg opened bankruptcy proceedings against Elsbeck Bau GmbH on April 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Elsbeck Bau GmbH Babelsberger Str. 3 39114 Magdeburg Germany Attn: Hans Thomas Sumerauer, Manager Uhlandstr. 60 10719 Berlin Germany ESTRICHBAU EICKHOLT: Claims Registration Ends June 22 ----------------------------------------------------- Creditors of Estrichbau Eickholt GmbH have until June 22 to register their claims with court-appointed insolvency manager Dr. Stephan Thiemann. Creditors and other interested parties are encouraged to attend the meeting at 9:50 a.m. on July 13, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Muenster Meeting Hall 13 B Gerichtsstr. 2-6 48149 Muenster Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Stephan Thiemann Lublinring 12 48147 Muenster Germany Tel: 0251/16283-0 Fax: +492511628311 The District Court of Muenster opened bankruptcy proceedings against Estrichbau Eickholt GmbH on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Estrichbau Eickholt GmbH Gremmendorfer Strasse 30 b 48167 Muenster Germany FIELD VERTRIEBS: Claims Registration Ends July 15 ------------------------------------------------- Creditors of Field Vertriebs GmbH have until July 15 to register their claims with court-appointed insolvency manager Hartmut Wiesinger. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Aug. 21, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Detmold Meeting Room 12 Ground Floor Gerichtsstr. 6 32756 Detmold Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Hartmut Wiesinger Gerichtsstr. 12 32791 Lage Germany The District Court of Detmold opened bankruptcy proceedings against Field Vertriebs GmbH on May 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Field Vertriebs GmbH Grevenmarschstr. 32 32657 Lemgo Germany FOERTSCH HOLZBAU: Claims Registration Ends July 6 ------------------------------------------------- Creditors of Foertsch Holzbau GmbH have until July 6 to register their claims with court-appointed insolvency manager Juergen Wittmann. Creditors and other interested parties are encouraged to attend the meeting at 1:05 p.m. on Aug. 7, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hof Meeting Room 012 Ground Floor Berliner Place 1 95030 Hof Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Juergen Wittmann Adolf-Kolping-Strasse 1 96317 Kronach Germany Tel: 09261/62200 Fax: 09261/622020 The District Court of Hof opened bankruptcy proceedings against Foertsch Holzbau GmbH on May 7. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Foertsch Holzbau GmbH Haidengruener Weg 9 95233 Helmbrechts Germany FRIEDRICH WILHELM: Claims Registration Ends June 5 -------------------------------------------------- Creditors of Friedrich Wilhelm Betz GmbH i.L. have until June 5 to register their claims with court-appointed insolvency manager Johannes Koepsell. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on July 4, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Johannes Koepsell Morianstr. 3 42103 Wuppertal Germany Tel: 0202-245670 Fax: +492022456722 The District Court of Cologne opened bankruptcy proceedings against Friedrich Wilhelm Betz GmbH i.L. on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Friedrich Wilhelm Betz GmbH i.L. Neuenhoehe 31 42929 Wermelskirchen Germany GERSTHOFER WOHNUNGSBAU: Claims Registration Ends June 12 -------------------------------------------------------- Creditors of Gersthofer Wohnungsbau GmbH und Co. Grundstuecks- Kommanditgesellschaft have until June 12 to register their claims with court-appointed insolvency manager Mattias Raupke. Creditors and other interested parties are encouraged to attend the meeting at 8:40 a.m. on July 4, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Augsburg Room 149 Einlass 1 86150 Augsburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Mattias Raupke c/o SKB Partnerschaftsgesellschaft Eserwallstr. 1-3 86150 Augsburg Germany The District Court of Augsburg opened bankruptcy proceedings against Gersthofer Wohnungsbau GmbH und Co. Grundstuecks- Kommanditgesellschaft on May 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Gersthofer Wohnungsbau GmbH und Co. Grundstuecks-Kommanditgesellschaft Donauwoerther Str. 3 b 86368 Gersthofen Germany GLOBAL MARKETING: Creditors' Meeting Slated for June 21 ------------------------------------------------------- The court-appointed insolvency manager for Global Marketing Communications GmbH, Dr. Andreas Ringstmeier, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:40 a.m. on June 21. The meeting of creditors and other interested parties will be held at: The District Court of Cologne Meeting Hall 1240 12th Floor Luxemburger Strasse 101 50939 Cologne Germany The insolvency manager can be reached at: Dr. Andreas Ringstmeier Magnusstr. 13 50672 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against Global Marketing Communications GmbH on March 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Global Marketing Communications GmbH Attn: Peter John Harrison, Manager St. Apernstr. 17 - 21 50667 Cologne Germany LEGL BAU: Claims Registration Period Ends June 22 ------------------------------------------------- Creditors of Legl Bau GmbH have until June 22 to register their claims with court-appointed insolvency manager Joachim Exner. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on July 30, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Ingolstadt Meeting Hall 28 First Floor Schrannenstr. 3 85049 Ingolstadt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Joachim Exner Stahlstrasse 17 90411 Nuremberg Germany Tel: 0911/95 12 850 Fax: 0911/95 12 8510 The District Court of Ingolstadt opened bankruptcy proceedings against Legl Bau GmbH on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Legl Bau GmbH Attn: Roland Le, Manager Untere Weinbergstrasse 13 92339 Beilngries Germany LINN & JUNG: Claims Registration Period Ends June 27 ---------------------------------------------------- Creditors of Linn & Jung Baustoffhandel GmbH have until June 27 to register their claims with court-appointed insolvency manager Joachim Glaeser. The District Court of Montabaur will verify claims set out in the insolvency manager's report on Aug. 27. The insolvency manager can be reached at: Joachim Glaeser Konrad-Adenauer-Str. 2a 56414 Wallmerod Germany Tel: 06435-96400 Fax: 06435-964024 The District Court of Montabaur opened bankruptcy proceedings against Linn & Jung Baustoffhandel GmbH on April 2. Consequently, all pending proceedings against the company have been automatically stayed. The court can be reached at: The District Court of Montabaur Hall 106 First Stock Bahnhofstrasse 47 56410 Montabaur Germany The Debtor can be reached at: Linn & Jung Baustoffhandel GmbH Attn: Rainer Linn, Manager Bahnhofstrasse 21 56414 Herschbach Germany RWR COMPUTERGESTUETZTE: Claims Registration Period Ends June 17 --------------------------------------------------------------- Creditors of RWR Computergestuetzte Fertigungssysteme GmbH & Co. KG have until June 17 to register their claims with court- appointed insolvency manager Eckhard Finke. Creditors and other interested parties are encouraged to attend the meeting at 10:10 a.m. on June 25, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bad Kreuznach Hall 309 Ringstrasse 79 55543 Bad Kreuznach Germany The Court will also verify the claims set out in the insolvency manager's report at 11:00 a.m. on July 25, at Hall 34 of the same venue. The insolvency manager can be reached at: Eckhard Finke Mannheimer Strasse 173 55543 Bad Kreuznach Germany Tel: 0671/84 007 - 68 Fax: 0671/84 007 - 43 The District Court of Bad Kreuznach opened bankruptcy proceedings against RWR Computergestuetzte Fertigungssysteme GmbH & Co. KG on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: RWR Computergestuetzte Fertigungssysteme GmbH & Co. KG Flughafen Hahn 55483 Lautzenhausen Germany HI PRO MEAT: Claims Registration Period Ends June 20 ---------------------------------------------------- Creditors of Hi Pro Meat Germany GmbH have until June 20 to register their claims with court-appointed insolvency manager Daniel Bauch. Creditors and other interested parties are encouraged to attend the meeting at 9:40 a.m. on July 5, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Landshut Meeting Hall 8/I Maximilianstrasse 22-24 Landshut Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Daniel Bauch Steinmetzstrasse 10 85435 Erding Gemany Tel: 08122/22960-83 Fax: 08122/22960-84 The District Court of Landshut opened bankruptcy proceedings against Hi Pro Meat Germany GmbH on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hi Pro Meat Germany GmbH Industriesiedlung 3 84140 Gangkofen Germany HOLZ- UND BAUTENSCHUTZ: Claims Registration Ends June 29 -------------------------------------------------------- Creditors of Holz- und Bautenschutz GmbH have until June 29 to register their claims with court-appointed insolvency manager Michael W. Kuleisa. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 31, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Hamburg Hall B405 Fourth Floor Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael W. Kuleisa Speersort 4-6 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Holz- und Bautenschutz GmbH on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Holz- und Bautenschutz GmbH Attn: Johann Seidl, Manager Stillhorner Weg 64 21109 Hamburg Germany HYN BAUDEKORATION: Claims Registration Ends July 25 --------------------------------------------------- Creditors of HYN Baudekoration GmbH have until July 25 to register their claims with court-appointed insolvency manager Ulrike Hoge-Peters. Creditors and other interested parties are encouraged to attend the meeting at 9:55 a.m. on Aug. 6, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Frankfurt/Main Hall 1 Building F Klingerstrasse 20 60313 Frankfurt/Main Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ulrike Hoge-Peters Cronstettenstrasse 30, D 60322 Frankfurt am Main Germany Tel: 069/9591100 Fax: 069/959110-12 The District Court of Frankfurt/Main opened bankruptcy proceedings against HYN Baudekoration GmbH on May 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HYN Baudekoration GmbH Adolph-Kolping-Strasse 24 61118 Bad Vilbel Germany Attn: Serap Yildirim, Manager Alte Frankfurter Strasse 27 61118 Bad Vilbel Germany ISIS BETEILIGUNGS: Claims Registration Ends June 6 -------------------------------------------------- Creditors of ISIS Beteiligungs GmbH have until June 6 to register their claims with court-appointed insolvency manager Jan H. Wilhelm. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on June 27, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Flensburg Hall A 220 Suedergraben 22 Flensburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Jan H. Wilhelm Albert-Einstein-Ring 11 22761 Hamburg Germany The District Court of Flensburg opened bankruptcy proceedings against ISIS Beteiligungs GmbH on May 7. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ISIS Beteiligungs GmbH Brauereiweg 23 24939 Flensburg Germany Attn: Hans Walter Rehbach, Manager Solitueder Weg 23 24960 Gluecksburg Germany JM CONSULTING: Claims Registration Ends June 21 ----------------------------------------------- Creditors of JM Consulting GmbH have until June 21 to register their claims with court-appointed insolvency manager Manuel Sack. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 12, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Gifhorn Hall 118 Am Schlossgarten 4 38518 Gifhorn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Manuel Sack c/o Brinkmann & Partner Theaterstr. 3 30159 Hannover Germany Tel: 0511/366020 Fax: 0511/3660255 The District Court of Gifhorn opened bankruptcy proceedings against JM Consulting GmbH on May 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: JM Consulting GmbH Moerikestr. 17 31224 Peine Germany Attn: Joachim Miszori, Manager Hoholzstr. 76 53229 Bonn Germany KARL-HEINZ BIDLINGMAIER: Creditors Must File Claims by June 20 -------------------------------------------------------------- Creditors of Karl-Heinz Bidlingmaier Bauunternehmung GmbH & Co. KG have until June 20 to register their claims with court- appointed insolvency manager Fritz Tremmel. Creditors and other interested parties are encouraged to attend the meeting at 3:00 p.m. on July 10, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Pforzheim Mannheimer Str. 17 75179 Pforzheim Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Fritz Tremmel Blumenstr. 17 69115 Heidelberg Germany The District Court of Pforzheim opened bankruptcy proceedings against Karl-Heinz Bidlingmaier Bauunternehmung GmbH & Co. KG on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Karl-Heinz Bidlingmaier Bauunternehmung GmbH & Co. KG Lerchenstr. 11 75447 Sternenfels Germany KLAUS GARTNER: Creditors Must Register Claims by June 11 -------------------------------------------------------- Creditors of Klaus Gartner GmbH, Hoch-, Tief- und Stahlbetonbau have until June 11 to register their claims with court-appointed insolvency manager Reinhard Bohlig. Creditors and other interested parties are encouraged to attend the meeting at 11:35 a.m. on June 19, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Fritzlar Meeting Hall 17 Building A Schladenweg 1 34560 Fritzlar Germany The Court will verify the claims set out in the insolvency manager's report at 10:45 a.m. on July 3, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Reinhard Bohlig Briloner Landstrasse 14 34497 Korbach Germany Tel: 05631/950970 Fax: 05631/950919 The District Court of Fritzlar opened bankruptcy proceedings against Klaus Gartner GmbH, Hoch-, Tief- und Stahlbetonbau on May 7. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Klaus Gartner GmbH, Hoch-, Tief- und Stahlbetonbau Kasseler Strasse 24 34596 Bad Zwesten Germany KLAUS HILGERS: Creditors Must Register Claims by June 25 -------------------------------------------------------- Creditors of Klaus Hilgers GmbH have until June 25 to register their claims with court-appointed insolvency manager Christian Potrafke. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Aug. 1, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Moenchengladbach Meeting Hall A 14 Ground Floor Hohenzollernstr. 157 41061 Moenchengladbach Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Christian Potrafke An der Eickesmuehle 8 41238 Moenchengladbach Germany Tel: 02166 / 91 26 08 Fax: 02166912607 The District Court of Moenchengladbach opened bankruptcy proceedings against Klaus Hilgers GmbH on May 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Klaus Hilgers GmbH Mailandweg 67 41844 Wegberg Germany KOENIGSHOF DORTMUND: Creditors Must Register Claims by June 26 -------------------------------------------------------------- Creditors of Koenigshof Dortmund Projektentwicklungs- und Beteiligungsgesellschaft mbH & Co. KG have until June 26 to register their claims with court-appointed insolvency manager Achim Thomas Thiele. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on July 17, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dortmund Hall 3.201 Second Floor Gerichtsplatz 1 44135 Dortmund Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Achim Thomas Thiele Bronnerstrasse 7 44141 Dortmund Germany The District Court of Dortmund opened bankruptcy proceedings against Koenigshof Dortmund Projektentwicklungs- und Beteiligungsgesellschaft mbH & Co. KG on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Koenigshof Dortmund Projektentwicklungs- und Beteiligungsgesellschaft mbH & Co. KG Berliner Str. 56 44143 Dortmund Germany MALERPROFIS MEISTERBETRIEB: Creditors Meeting Slated for July 30 ---------------------------------------------------------------- The court-appointed insolvency manager for Malerprofis Meisterbetrieb GmbH, Jur. A. Koehler, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 8:55 a.m. on July 30. The meeting of creditors and other interested parties will be held at: The District Court of Montabaur Hall 106 First Stock Bahnhofstrasse 47 56410 Montabaur Germany The Court will also verify the claims set out in the insolvency manager's report at 9:15 a.m. on Sept. 10 at the same venue. Creditors have until Aug. 8 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Jur. A. Koehler Wilhelmstrasse 42 65582 Diez Germany Tel: 06432-64580 Fax: 06432-645820 E-mail: verwaltung@koehler-insolvenz.de The District Court of Montabaur opened bankruptcy proceedings against Malerprofis Meisterbetrieb GmbH on May 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Malerprofis Meisterbetrieb GmbH Aarstrasse 72 65629 Niederneisen Germany MICHAEL SCHUHMANN: Claims Registration Period Ends July 17 ---------------------------------------------------------- Creditors of Michael Schuhmann have until July 17 to register their claims with court-appointed insolvency manager Sascha Mertes. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Aug. 7, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Wiesbaden E 36 A Third Floor Building E Moritzstrasse 5 Hinterhaus 65185 Wiesbaden Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Sascha Mertes Rheinstrasse 19 65185 Wiesbaden Germany Tel: 0611 - 205 540 Fax: 0611 - 205 5444 E-mail: info@mertes-lauff.de The District Court of Wiesbaden opened bankruptcy proceedings against Michael Schuhmann on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Michael Schuhmann Attn: S+H Bau GmbH, Manager Wintergasse 8 65239 Hochheim am Main Germany MUELLER & PARTNER: Claims Registration Period Ends June 22 ---------------------------------------------------------- Creditors of Mueller & Partner GmbH have until June 22 to register their claims with court-appointed insolvency manager Sabine Feuerborn. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on July 17, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Sabine Feuerborn Else-Lang-Str. 1 50858 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against Mueller & Partner GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Mueller & Partner GmbH Attn: Dirk Mueller, Manager Rathausplatz 3 51766 Engelskirchen Germany PULLOVER PST: Claims Registration Period Ends July 5 ---------------------------------------------------- Creditors of Pullover PST Vertriebs GmbH have until July 5 to register their claims with court-appointed insolvency manager Henning Samisch. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 26, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kiel Hall 17 Kiel Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Henning Samisch Muehlenkamp 59 22303 Hamburg Germany The District Court of Kiel opened bankruptcy proceedings against Pullover PST Vertriebs GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Pullover PST Vertriebs GmbH Attn: Bet-tina Tank, Manager Waldstr. 27 24594 Hohenwestedt Germany RUKLAH BAU: Claims Registration Period Ends July 3 -------------------------------------------------- Creditors of RUKLAH Bau GmbH have until July 3 to register their claims with court-appointed insolvency manager Mark Zeuner. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on July 3, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Stendal Hall 411 Albrecht der Bar Scharnhorststrasse 40 39576 Stendal Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Mark Zeuner Lehmweg 17 D 20251 Hamburg Germany Tel: 040/480 63 90 Fax: 040/480 63 999 The District Court of Stendal opened bankruptcy proceedings against RUKLAH Bau GmbH on May 3. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: RUKLAH Bau GmbH Chaussee 10 39291 Theessen Germany Attn: Monika Ahaus, Manager Dorfstrasse 17 39291 Theessen Germany STRATEGIES FOR EXCELLENCE: Claims Registration Ends July 9 ---------------------------------------------------------- Creditors of Strategies for Excellence in Communication GmbH have until July 9 to register their claims with court-appointed insolvency manager Henning Schorisch. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Aug. 9, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Fuerth Room 3 Ground Floor Office Building Baumenstrasse 32 Fuerth Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Henning Schorisch Nordostpark 12 90411 Nueberg Germany Tel: 0911 756610 Fax: 0911 7566113 The District Court of Fuerth opened bankruptcy proceedings against Strategies for Excellence in Communication GmbH on May 7. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Strategies for Excellence in Communication GmbH Schuetzengraben 52 91074 Herzogenaurach Germany USCHOLD VERWALTUNGS: Claims Registration Period Ends June 13 ------------------------------------------------------------ Creditors of Uschold Verwaltungs-GmbH have until June 13 to register their claims with court-appointed insolvency manager Dr. Harald Schwartz. Creditors and other interested parties are encouraged to attend the meeting at 2:30 p.m. on July 31, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Amberg Room 115 Meeting Hall V First Stock Baustadelgasse 1 Amberg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Harald Schwartz Waisenhausgasse 3-4 92224 Amberg Germany Tel: 09621/911 00 Fax: 09621/911 022 The District Court of Amberg opened bankruptcy proceedings against Uschold Verwaltungs-GmbH on May 7. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Uschold Verwaltungs-GmbH Johannes-Gutenberg-Str. 4 92245 Kuemmersbruck/Theuern Germany VISTEON CORP: Names Michael Widgren as Chief Accounting Officer --------------------------------------------------------------- Global automotive supplier Visteon Corporation has named Michael J. Widgren as vice president, corporate controller and chief accounting officer effective May 16, 2007. "Michael Widgren's deep technical skills and knowledge of the auto industry make him ideal for this role," William Quigley, senior vice president and chief financial officer, said. "He has the experience and capability to support Visteon during this important period of transformation." Mr. Widgren joined Visteon in 2005 as assistant controller. Prior to joining Visteon, he served as chief accounting officer for Federal-Mogul Corp., where he held several financial management positions during his seven-year tenure. Before that, Mr. Widgren worked at Coopers & Lybrand, LLP. Mr. Widgren earned a bachelor's degree in accounting and a master's degree in business administration from Michigan State University. He is a certified public accountant in the state of Michigan and a member the Michigan Association of CPAs. About the Company Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. With corporate offices in the Michigan (U.S.); Shanghai, China; and Kerpen, Germany; the company has more than 170 facilities in 24 countries and employs approximately 50,000 people. At March 31, 2007, the company's balance sheet showed US$6.84 billion in total assets, US$6.68 billion in total liabilities and US$263 million in minority interest, resulting in a US$106 million total stockholders' deficit. * * * In April 2007, Fitch Ratings took these actions regarding the ratings of Visteon Corp.: -- Issuer Default Rating affirmed 'CCC'; -- Senior Secured Bank Facility affirmed 'B/RR1'; -- Senior unsecured downgraded to 'CC/RR6' from 'CCC-/RR5'. Approximately $2.8 billion of debt is covered by these ratings. Fitch said the Rating Outlook is Negative. At the same time, Standard & Poor's Ratings Services assigned its 'B+' rating and '1' recovery rating to auto supplier Visteon Corp.'s proposed US$500-million new senior secured term loan tranche, which would increase the size of the company's total term loan facilities to US$1.5 billion from US$1 billion. VISTEON CORP: Inks Letter Agreement with LB Group and Ford Motor ---------------------------------------------------------------- Visteon Corporation entered into a letter agreement with LB I Group Inc. and Ford Motor Company. Under the letter agreement, Visteon have consented to the transfer by Ford of the warrant to purchase 25 million shares of Visteon common stock and waived a provision of the Stockholder Agreement, dated as of October 1, 2005, between Visteon and Ford, that would have prohibited the transfer. Visteon said that the Letter Agreement also restricts Lehman's ability to enter into certain hedging transactions in respect of the shares underlying the Warrant for the first two years following such transfer. In addition, Visteon states that the warrant was modified so that it will not be exercisable or transferable until May 17, 2009. About the Company Headquartered in Van Buren Township, Michigan, Visteon Corporation (NYSE: VC) -- http://www.visteon.com/-- is a global automotive supplier that designs, engineers and manufactures innovative climate, interior, electronic and lighting products for vehicle manufacturers, and also provides a range of products and services to aftermarket customers. With corporate offices in the Michigan (U.S.); Shanghai, China; and Kerpen, Germany; the company has more than 170 facilities in 24 countries and employs approximately 50,000 people. At March 31, 2007, the company's balance sheet showed US$6.84 billion in total assets, US$6.68 billion in total liabilities and US$263 million in minority interest, resulting in a US$106 million total stockholders' deficit. * * * In April 2007, Fitch Ratings took these actions regarding the ratings of Visteon Corp.: -- Issuer Default Rating affirmed 'CCC'; -- Senior Secured Bank Facility affirmed 'B/RR1'; -- Senior unsecured downgraded to 'CC/RR6' from 'CCC-/RR5'. Approximately $2.8 billion of debt is covered by these ratings. Fitch said the Rating Outlook is Negative. At the same time, Standard & Poor's Ratings Services assigned its 'B+' rating and '1' recovery rating to auto supplier Visteon Corp.'s proposed US$500-million new senior secured term loan tranche, which would increase the size of the company's total term loan facilities to US$1.5 billion from US$1 billion. WEHA & MELISS: Claims Registration Period Ends June 19 ------------------------------------------------------ Creditors of WEHA & Meliss Elektro-Technischer Grosshandel GmbH have until June 19 to register their claims with court-appointed insolvency manager Thomas Beck. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on July 3, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court Erfurt Hall 12 Judicial Center Rudolfstr. 46 99092 Erfurt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Thomas Beck Hochheimer Str. 47 99094 Erfurt Germany The District Court of Erfurt opened bankruptcy proceedings against WEHA & Meliss Elektro-Technischer Grosshandel GmbH on May 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: WEHA & Meliss Elektro-Technischer Grosshandel GmbH Kromsdorfer Strasse 17 99427 Weimar Germany =========== G R E E C E =========== JAFRA COSMETICS: S&P Withdraws Low-B Ratings After Repayment ------------------------------------------------------------ Standard & Poor's Ratings Services withdrew its ratings on Westlake Village, California-based Jafra Cosmetics International Inc., including the 'B+' corporate credit rating, following the repayment of its 10.75% senior subordinated public notes. Ratings List * Jafra Cosmetics International Inc. To From -- ---- Corporate Credit Rating NR B+/Positive/-- Senior Subordinated Local Currency NR B- Jafra Cosmetics International -- http://www.jafra.com-- is a multilevel marketing and direct-selling company, in the skin care and beauty industry, since 1956, and with an international network of nearly 400,000 independent consultants worldwide. The company is a subsidiary of Vorwerk & Co. KG. The company is headquartered in Westlake Village, California, and has offices in Mexico, Brazil, Columbia, Curacao, Austria, Russia, Greece, and Germany, among others. ============= I R E L A N D ============= BOMBARDIER INC: S&P Revises Outlook to Stable from Negative ----------------------------------------------------------- Standard & Poor's Ratings Services revised the outlook on Montreal, Quebec-based Bombardier Inc. to stable from negative. At the same time, the ratings, including the 'BB' long-term corporate credit rating on Bombardier, were affirmed. "The revised outlook reflects the increasing diversity of Bombardier's cash flow generation through favorable market conditions in its business jet and transportation businesses," said Standard & Poor's credit analyst Greg Pau. "The company enjoys a strong market position in these two businesses," Mr. Pau added. The revision also reflects the results of management's effort in the past three years to restore financial stability by significantly reducing excess-over-average production costs, shrinking the company's aircraft financing portfolio, focusing on execution and cost management, and refinancing maturing debt to improve liquidity. The ratings on Bombardier reflect continued high financial leverage following the recent EUR1.9 billion bond issue in fiscal 2007, and the relatively weaker profitability and cash flow from the transportation and commercial aircraft businesses. The bond issue reversed the deleveraging trend in the two preceding years, but the high financial leverage and interest costs, together with the lumpiness of cash flow reflecting the nature of Bombardier's business, have contributed to a weak financial risk profile. The ratings are supported by strong and sustainable competitive positions in business jets and transportation businesses, strengthened liquidity, improving business and geographic diversity, and management's effort to address key legacy problems. Bombardier's business risk profile is supported by the high barriers to entry and strong competitive positions in both transportation and business jets. In transportation, Bombardier is a market leader in rolling stock and locomotives among three leading global players, although its market position is relatively weaker in signaling. The company has recently strengthened its position by gaining substantial new orders in the past year. If successfully executed, these contracts should allow Bombardier to showcase its capability and enhance its market leadership. Despite success in cost management in the past two years, Bombardier's overall operating and EBIT margins remain thin compared with those of its peers. Future margin improvement hinges on Bombardier's ability to properly execute the recently acquired contracts in transportation and manage the business jet production process. Given the complexity of transportation projects and the high-quality finishing required for business jets, cost overruns could happen and potentially reverse the improving trend. The stable outlook reflects the progress Bombardier has made in addressing its legacy problems and in improving its cost position in the past three years. This has resulted in a more consistent and diversified free cash flow generation. The ratings or outlook could be revised upward if the company materially improves its financial measures through debt reduction and continues to reduce the future volatility of business cash flow. Conversely, Bombardier could be downgraded if the company's cash flow becomes substantially impaired, possibly because of cost overruns in the new transportation contracts or a material weakening in business jet demand. Any further product development programs involving significant debt financing and exposing the company to significant development risk could also exert downward pressure on the ratings or outlook. Bombardier Inc. -- http://www.bombardier.com/-- (TSE:BBD.B) manufactures innovative transportation solutions, from regional aircraft and business jets to rail transportation equipment, systems and services. Headquartered in Canada, the company also has offices in the U.S., Northern Ireland, United Kingdom, Germany, Switzerland, Sweden, Austria, and Australia. EURCREDIT CDO: Moody's Rates EUR19.8 Mln Class E Notes at Ba3 ------------------------------------------------------------- Moody's has assigned these provisional ratings to 12 classes of notes issued by EURcredit CDO VII PLC, a bankruptcy remote special purpose vehicle incorporated in Ireland: -- Aaa to the EUR125 million Class Revolving Loan Facility, -- Aaa to the EUR221.5 million Class A Senior Secured Floating Rate Notes; -- Aa2 to the EUR38.3 million Class B Secured Deferrable Floating Rate Notes; -- A2 to the EUR31.2 million Class C Secured Deferrable Floating Rate Notes; -- Baa3 to the EUR29.1 million Class D Secured Deferrable Floating Rate Notes; -- Ba3 to the EUR19.8 million Class E Secured Deferrable Floating Rate Notes; -- A3 to the EUR4 million Class P Combination Notes; -- Baa3 to the EUR8 million Class Q Combination Notes; -- Baa1 to the EUR15 million Class R Combination Notes; -- A3 to the EUR6 million Class S Combination Notes; -- Baa3 to the EUR3 million Class V Combination Notes; and -- Baa2 to the EUR8 million Class W Combination Notes. These ratings are based upon: 1. an assessment of the credit quality and of the diversification of the assets in the initial portfolio; 2. an assessment of the eligibility criteria applicable to the future additions to the portfolio; 3. the overcollateralization of the notes; 4. the protection against losses through the subordination of the Class B, C, D, E notes, the EUR55,100,000 subordinated notes and the excess spread available in the transaction; 5. the analysis of the foreign currency risk involved in the transaction; and 6. the legal and structural integrity of the issue. The ratings of the Notes address the expected loss posed to investors by the legal maturity of each class. The ratings on the Combination Notes address the repayment of the defined Rated Balance by the legal final maturity date of the transaction. This transaction is a high yield collateralized loan obligation related to a portfolio of mainly senior and mezzanine loans. This portfolio is dynamically managed by Intermediate Capital Managers Ltd. Any addition or removal of loans will be subject to a number of portfolio criteria. This transaction features a multi-currency revolving loan facility that can be drawn either in Euros or in Sterlings. Sterling advances will be initially used to purchase loans denominated in Sterling. Should such Sterling assets default, Sterling advances would not be fully collateralized by Sterling assets and therefore Euro proceeds may need to be converted into Sterling in order to redeem Sterling advances, thus creating a foreign exchange risk exposure. This currency risk has been considered in Moody's analysis. ========= I T A L Y ========= IMAX CORP: Faces NASDAQ Delisting Due to Delayed Filing ------------------------------------------------------- IMAX Corporation has received a NASDAQ Staff Determination letter on May 14, 2007, that it is not in compliance with Marketplace Rule 4310(c)(14), which requires timely filing of periodic reports with the Securities and Exchange Commission for continued listing of its common shares, and that its common shares are subject to delisting from The NASDAQ Global Market. The company said that the letter was issued in accordance with NASDAQ's standard procedures as a result of the delay in filing of the its quarterly report on Form 10-Q for the fiscal quarter ended March 31, 2007. The company said that it has delayed the filing of its annual report on Form 10-K for fiscal 2006 and its quarterly report on Form 10-Q for the quarter ended March 31, 2007, due to the discovery of certain accounting errors and has since broadened its accounting review to include certain other accounting matters based on comments received by the Company from the SEC and Ontario Securities Commission. The company said that it is currently working diligently and devoting necessary resources to complete the reports and filings as soon as practicable. The company reports that it has requested a hearing before a NASDAQ Listing Qualifications Panel to appeal the NASDAQ Staff Determination issued April 3, 2007, as a result of the delay in filing of the company's annual report on Form 10-K for the fiscal year ended Dec. 31, 2006. The hearing is scheduled for May 24, 2007, and will also address the NASDAQ Staff Determination Letter dated May 14, 2007. The hearing request has stayed the delisting of the its common shares. About IMAX Corp. Headquartered jointly in New York City and Toronto, Canada, IMAX Corporation -- http://www.imax.com/-- (NASDAQ:IMAX) is one of the world's leading entertainment technology companies, with particular emphasis on film and digital imaging technologies including 3D, post-production and digital projection. IMAX is a fully integrated, out-of-home entertainment enterprise with activities ranging from the design, leasing, marketing, maintenance, and operation of IMAX(R) theatre systems to film development, production, post-production and distribution of large-format films. IMAX also designs and manufactures cameras, projectors and consistently commits significant funding to ongoing research and development. IMAX has locations in Guatemala, India, Italy, among others. * * * Moody's Investors Service assigned a Caa1 rating on IMAC Corporation's Senior Unsecured Debt on March 30, 2007. TK ALUMINUM: Eyes Sale & Restructuring of Italian Subsidiaries -------------------------------------------------------------- TK Aluminum Ltd., the indirect parent of Teksid Aluminum Luxembourg S.a.r.l., S.C.A., disclosed that at a meeting on May 10, 2007, Alvarez & Marsal Europe Ltd. presented to an ad hoc committee of noteholders, who had signed confidentiality agreements, an analysis of certain strategic options the Company has considered, including the sale and restructuring of the Company's Italian Subsidiaries. Houlihan Lokey Howard & Zukin (Europe) Ltd. and Cadwalader, Wickersham & Taft LLP, advisors to the ad hoc noteholders committee (including the restricted noteholders), have advised the Company that holders of Senior Notes indicating ownership of a majority of the outstanding Senior Notes have expressed agreement in principle to: (i) the proposed sale of the Turkish Interest, and (ii) a waiver in respect of the deferral of the Company's obligations to tender for Senior Notes with the net proceeds of the Teksid Poland Sale. The Company notes that the final terms of any ultimately completed sale may differ materially from the proposed terms upon which A&M Europe based its support. The Company further notes that A&M Europe have relied upon unaudited financial information, records, forecasts and assumptions prepared by the Company and discussions with management of the Company in performing its analysis. A&M Europe did not perform an audit or any other verification of such information and accordingly provides no assurance nor opinion thereon. In addition, since the forecast information provided by the Company is based on assumptions about future events, actual results achieved may vary from the forecast and the variations may be material. A&M Europe does not provide legal services and did not base its recommendation on a review of the proposed legal terms. The Company continues to pursue alternatives with regard to its Italian Subsidiaries, as well as its subsidiaries located in France and Germany, and is in discussions with potential purchasers of these operations. The consummation of a transaction remains subject to a number of conditions, including: -- execution of a definitive agreement, -- consent of at least a majority in principal amount of the Senior Notes, -- regulatory approvals, -- completion of satisfactory due diligence, and -- approval by the board of directors of the Company. There can be no assurance that a definitive agreement with any party will be executed on acceptable terms or at all. Additionally, even assuming acceptable terms are reached, there can be no assurance that the required conditions of such transaction would be met, including any requirement to receive consent of the noteholders. Casti Agreement TK Aluminum had entered into an agreement to sell its equity interests in its Italian Subsidiaries to Casti S.p.A., which agreement was subject to, among other things, Casti's right to terminate such agreement in the event that Casti was not able to reach an agreement with a major customer of the Italian Subsidiaries by 12:00 pm, CET, on May 18, 2007. The Company, however, prior to such time, received notice from Casti that it had not reached agreement with such customer and, accordingly, Casti was terminating the agreement as provided therein. Sale of Turkish Interest TK Aluminum has received an offer -- valid until June 11, 2007, -- from Cevher Jant Sanayi A.S., the majority owner of the Turkish JV, to purchase the Turkish Interest for EUR3 million. The Company is in discussions with Cevher to finalize definitive documentation regarding the sale of the Turkish Interest. The consummation of any transaction is subject to a number of conditions, including execution of a definitive agreement, approval by the board of directors of the Company and consent of at least a majority in principal amount of the Senior Notes. There can be no assurance that a transaction with Cevher on acceptable terms will be completed. Nemak Capital Increase Nemak has indicated that it intends to proceed with an equity issuance in exchange for a capital contribution by its parent. If Nemak does proceed, pursuant to the SEI Agreement, Nemak is required to offer to sell to TK Aluminum an additional amount of synthetic equity interest on the same terms as made available to Nemak's parent. There can be no assurance that any such transaction will be completed by Nemak. TK Aluminum expects to provide further updates as information is made available by Nemak. Waiver of Default and Deferment of Tender Offer TK Aluminum expects to solicit consents from the holders of the Senior Notes to waive any and all existing defaults under the Indenture and claims relating thereto related to obligation to make an offer to purchase Senior Notes within 30 days after the Teksid Poland Sale. Additionally, the Company is proposing to amend the Indenture to, among other items, extend the time by which offers to purchase Senior Notes after the consummation of the Teksid Poland Sale are to be made. Nemak China Sale TK Aluminum has submitted documentation in respect of the regulatory approval in connection with the sale to Nemak of the Company's remaining interests in its operations in China to the Chinese governmental authorities on May 16, 2007. The Company understands that the Chinese regulatory approval process may take up to approximately three to five weeks. There can be no assurance as to when required regulatory approvals will be obtained, or if they will be obtained at all. As previously reported in the TCR-Europe on April 20, 2007, TK Aluminum Ltd. has completed the sale of its subsidiary Teksid Aluminum Poland Sp.z o.o to Tenedora Nemak, S.A. de C.V., a subsidiary of ALFA, S.A.B. de C.V. The aggregate purchase price allocated to the sale of Teksid Poland was approximately US$56.1 million in cash consideration plus the issuance of an additional 0.83% synthetic equity interest in the Nemak business. The aggregate cash proceeds received by the company at closing in connection with the sale of Teksid Poland were approximately US$29.9 million plus US$3 million as the result of the issuance of a loan by ALFA, prior to the deduction of a contingency reserve and other amounts permitted in accordance with the supplemental indenture, effective as of March 15, 2007, governing the company's outstanding 11 3/8% Senior Notes due 2011. About Teksid Aluminum Teksid Aluminum -- http://www.teksidaluminum.com/-- manufactures aluminum engine castings for the automotive industry. Principal products include cylinder heads, engine blocks, transmission housings, and suspension components. The company operates 15 manufacturing facilities in Europe, North America, South America, and Asia. The company maintains operations in Italy, Brazil, and China. Until Sept. 2002, Teksid Aluminum was a division of Teksid S.p.A., which was owned by Fiat. Through a series of transactions completed between Sept. 30, 2002 and Nov. 22, 2002, Teksid S.p.A. sold its aluminum foundry business to a consortium of investment funds led by equity investors that include affiliates of each of Questor Management Company, LLC, JPMorgan Partners, Private Equity Partners SGR S.p.A. and AIG Global Investment Corp. As a result of the sale, Teksid Aluminum is now owned by its equity investors through TK Aluminum Ltd., a Bermuda holding company. * * * On Jan. 16, Moody's Investors Service placed TK Aluminum Ltd.'s long-term corporate family rating at Caa3. =================== K A Z A K H S T A N =================== BIELA LLP: Creditors Must File Claims by June 22 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP BIELA insolvent. Creditors have until June 22 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Pavlodar Kataev Str. 24-8 Pavlodar Tel: 8 (3182) 54-37-22 8 701 228 47-28 ILOT LLP: Creditors' Claims Due June 5 -------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Ilot insolvent. Creditors have until June 5 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Gogol Str. 177a Kostanai Kazakhstan KROKUS LTD: Proof of Claim Deadline Slated for June 20 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Krokus Ltd insolvent. Creditors have until June 20 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Pavlodar Elgin Str. 100 Pavlodar Kazakhstan PAVLODAR-SHAR LLP: Claims Registration Ends June 22 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Firm Pavlodar-Shar insolvent. Creditors have until June 22 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Pavlodar Kataev Str. 24-8 Pavlodar Tel: 8 (3182) 54-37-22 8 701 228 47-28 REMSERVICE LLP: Claims Filing Period Ends June 20 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Repair Service Remservice insolvent. Creditors have until June 20 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Pavlodar Elgin Str. 100 Pavlodar Kazakhstan SAMGAU-999 LLP: Creditors Must File Claims by June 8 ---------------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty has declared LLP Samgau-999 insolvent on March 19. Creditors have until June 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Office Four Kassin Str. 2/1 Mamyr 050052 Almaty Kazakhstan Tel: 8 (3272) 93-19-22 8 777 559 68-31 8 777 258 50-41 TAIS LLP: Creditors' Claims Due June 8 -------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan Region has declared LLP Tais insolvent. Creditors have until June 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of West Kazakhstan Office 13 Sholohov Str. 2/4 Uralsk West Kazakhstan Kazakhstan Tel: 8 (3112) 53-84-66 VOSTOCHNY EXPRESS: Claims Registration Ends June 22 --------------------------------------------------- LLP Asian Transport Company Vostochny Express has declared insolvency. Creditors have until June 22 to submit written proofs of claim to: LLP Asian Transport Company Vostochny Express Jeltoksan Str. 115 050000, Almaty Kazakhstan VYBOR LLP: Claims Filing Period Ends June 8 ------------------------------------------- The Specialized Inter-Regional Economic Court of West Kazakhstan Region has declared LLP Vybor insolvent. Creditors have until June 8 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of West Kazakhstan Office 13 Sholohov Str. 2/4 Uralsk West Kazakhstan Kazakhstan Tel: 8 (3112) 53-84-66 ZAUR-S LLP: Proof of Claim Deadline Slated for June 5 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Zaur-S insolvent. Creditors have until June 5 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Kostanai Gogol Str. 177a Kostanai Kazakhstan =========== P O L A N D =========== GRAHAM PACKAGING: March 31 Equity Deficit Tops US$624 Million ------------------------------------------------------------- Graham Packaging Holdings Company's balance sheet as of March 31, 2007, showed total assets of US$2.5 billion, total liabilities of US$3.1 billion, and total stockholders' deficit of US$624.1 million. In the three months ended March 31, 2007, the company funded, through its operating activities and available cash and cash equivalents, US$32.3 million of investing activities and US$7.3 million of financing activities. Graham Packaging reported first-quarter operating income of US$43.4 million, an increase of US$6 million, or 16.1%, over the same quarter last year. 2007 operating income benefited from the non-recurrence of approximately US$5.5 million in costs incurred in 2006 in connection with the procurement of raw materials following hurricanes Rita and Katrina the previous year. The number of container units the company sold in the first quarter of 2007 increased by 2%, but net sales decreased by 3.6%, primarily due to lower resin pricing, changes in product mix, and price erosion. Net sales for the three months ended March 31, 2007, totaled US$621.8 million, a decrease of US$23.2 million, compared with US$645 million in net sales for the three months ended March 31, 2006. Net sales in North America showed a decrease of 5.8%. Net sales increased in the food and beverage category but were down in the household, automotive lubricants, and personal care/specialty categories. Net sales were up 14.3% in Europe and 9.3% in South America. The latter showings were influenced by higher volume and favorable exchange rates. The company's net interest expense increased by US$5.3 million, or 10.5%, to US$55.7 million, compared to the first quarter of last year. The increase was primarily related to the write-off of US$4.6 million of deferred financing fees in connection with the March 30, 2007, amendment to the company's Credit Agreement. Income tax provision in the first quarter totaled US$3.2 million, a net change of US$6.2 million from the company's income tax benefit of US$3 million in the first quarter of 2006. The net loss for the first quarter amounted to US$15.6 million, compared to a net loss of US$10 million for the first quarter of last year. Excluding the increase in interest expense due to the write-off of deferred financing fees previously noted and the increase in income tax expense attributable to the establishment of valuation allowances, US$5 million, the net loss for the first quarter amounted to US$6 million. A full-text copy of the company's first quarter 2007 report is available for free at http://ResearchArchives.com/t/s?1fa3 About Graham Packaging Holdings Graham Packaging Holdings Company is a Pennsylvania limited partnership. Graham Packaging Company, L.P., -- http://www.grahampackaging.com/-- the company's wholly owned subsidiary is a worldwide designer, manufacturer and seller of customized blow molded plastic containers for the branded food and beverage, household, personal care/specialty and automotive lubricants product categories and, as of the end of September 2006, operated 85 manufacturing facilities throughout North America, Fields Sales offices in Canada, France, Argentina, Brazil, Poland. The Blackstone Group, an investment firm, holds 78.6% equity in Graham Packaging Holdings Company. MidOcean Capital Investors, L.P., holds 4.1%. A group of management executives holds 2.3%. The family of Graham Packaging founder Donald Graham holds 15%. * * * As reported in the Troubled Company Reporter on March 20, 2007, Moody's Investors Service affirmed the existing Corporate Family Rating of B2 for Graham Packaging, L.P., but changed the outlook to negative. =========== R U S S I A =========== BULZINSKOYE OJSC: Creditors Must File Claims by June 28 ------------------------------------------------------- Creditors of OJSC Bulzinskoye have until June 28 to submit proofs of claim to: S. Gusev Insolvency Manager Office 212 Kaslinskaya Str. 3 454084 Chelyabinsk Russia The Arbitration Court of Chelyabinsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A76-30273/2006-48-275. The Court is located at: The Arbitration Court of Chelyabinsk Vorovskogo Str. 2 454091 Chelyabinsk Russia The Debtor can be reached at: OJSC Bulzinskoye Lenina Str. 18 Bulzi Kaslinskiy 456846 Chelyabinsk Russia BURGUN-MADZHARSKOYE: Court Starts Bankruptcy Supervision Process ---------------------------------------------------------------- The Arbitration Court of Stavropol commenced bankruptcy supervision procedure on CJSC Burgun-Madzharskoye. The case is docketed under Case No. A63-3319/02-S5. The Temporary Insolvency Manager is: M. Fisenko Temporary Insolvency Manager Sovetskaya Str. 5b 355000 Stavropol Russia The Court is located at: The Arbitration Court of Stavropol Mira Str. 458 b Stavropol Russia The Debtor can be reached at: CJSC Burgun-Madzharskoye Kochubeja Str. 10 Kumskaya Dolina Stavropol Russia DIAMOND LLC: Creditors Must File Claims by June 28 -------------------------------------------------- Creditors of LLC Jewelry Store Diamond (TIN 5003031736) have until June 28 to submit proofs of claim to: S. Neimushev Insolvency Manager Premise 2 Nevzorov. 89 603024 N. Novgorod Russia The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A41-K2-21811/06. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: LLC Jewelry Store Diamond Vidnoye Moscow Russia ENGINEERING COMPANY: Creditors Must File Claims by June 28 ---------------------------------------------------------- Creditors of LLC Engineering Company (TIN 0276039291) have until June 28 to submit proofs of claim to: R. Farvazov Insolvency Manager Post User Box 16 Ufa 450047 Bashkortostan Russia The Arbitration Court of Bashkortostan commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A07-54524/05-G/ADM/ShAB. The Court is located at: The Arbitration Court of Bashkortostan Oktyabrskoy Revolyutsii Str. 63a Ufa Bashkortostan Russia The Debtor can be reached at: LLC Engineering Company Office 5 Mendeleeva Str. 114/2 Ufa Bashkortostan Russia INTEKS-CITY LLC: Moscow Bankruptcy Hearing Slated for Aug. 9 ------------------------------------------------------------ The Arbitration Court of Moscow will convene at 10:00 a.m. on Aug. 9 to hear the bankruptcy supervision procedure on LLC Inteks-City. The case is docketed under Case No. A40-10163/ 07-123-42B. The Insolvency Manager is: V. Desyatskov Post User Box 21 125368 Moscow Russia The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: LLC Inteks-City Building 3 Pyatnitskaya Str. 2/38 113035 Moscow Russia KARBAINOVSKOYE OF TYUKALINSKIY: Claims Deadline Set June 28 ----------------------------------------------------------- Creditors of CJSC Karbainovskoye (TIN 5537008010) have until June 28 to submit proofs of claim to: K. Kiselevskiy Insolvency Manager 13th floor K. Libknekhta Str. 35 644043 Omsk Russia The Arbitration Court of Omsk commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A46-1498/2007. The Debtor can be reached at: CJSC Karbainovskoye Sovetskiy Per Starosoldatskoye Tyukalinskiy 646322 Omsk Russia MONOLITH GROUP: Creditors Must File Claims by June 28 ----------------------------------------------------- Creditors of OJSC Monolith Group have until June 28 to submit proofs of claim to: O. Andreenko Insolvency Manager Office 215 Building 3 Petrovka Str. 26 127051 Moscow Russia Tel: 686-00-15 The Arbitration Court of Moscow commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A40-72034/06-123-1140B. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: OJSC Monolith Group Sadovnicheskaya Str. 32-34/25 113035 Moscow Russia ORLOV-FURNITURE OJSC: Creditors Must File Claims by June 28 ----------------------------------------------------------- Creditors of OJSC Orlov-Furniture have until June 28 to submit proofs of claim to: L. Shikhov Insolvency Manager Volodarskogo Str. 75 610020 Kirov Russia Tel/Fax: 35-53-22 The Arbitration Court of Kirov commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A28-580/06-318/3. The Court is located at: The Arbitration Court of Kirov K-Libknekhta Str. 102 610017 Kirov Russia The Debtor can be reached at: OJSC Orlov-Furniture Gorkogo Str. 27 Orel Kirov Russia PAVLOVSKIY INSTRUMENTAL: Creditors Must File Claims by June 28 -------------------------------------------------------------- Creditors of LLC Pavlovskiy Instrumental Factory have until June 28 to submit proofs of claim to: N. Chertanovskiy Insolvency Manager Internatsionalnaya Str. 96 603002 N.Novgorod Russia The Arbitration Court of Vladimir commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A11-12184/2006-K1-447B. The Court is located at: The Arbitration Court of Vladimir Oktyabrskiy Pr. 14 600025 Vladimir Russia The Debtor can be reached at: LLC Pavlovskiy Instrumental Factory Gorokhovets Vladimir Russia ROSNEFT OIL: Russia Restores Firm's Strategic Enterprise Status --------------------------------------------------------------- The Russian government has placed OAO Rosneft Oil Co. on its list of strategic enterprises, tightening the state's control over the oil enterprise, various reports say. According to Kommersant, Rosneft's status as strategic enterprise means Russia will hold on to its 85% stake in the company. This, RIA Novosti relates, makes it impossible to sell state shares in Rosneft. With the status, Kommersant relates, Rosneft may apply for a special bankruptcy procedure and seek state aid when it becomes financially troubled. Rosneft lost the status in summer 2006 when it launched a US$10.4 billion initial public offering, RIA Novosti reports. Russia's Economic Development and Trade Ministry told Kommersant that Rosneft regained its status after meeting the criteria set for strategic firms, one of which is supplying Russia's military enterprises. About Rosneft Headquartered in Moscow, Russia, OAO Rosneft Oil Co. -- http://ns.roilcom.ru/english/-- produces and markets petroleum products. The Company explores for, extracts, refines and markets oil and natural gas. Rosneft produces oil in Western Siberia, Sakhalin, the North Caucasus, and the Arctic regions of Russia. * * * In a TCR-Europe report on Mar. 23, 2007, Fitch Ratings notes that Rosneft's plans to borrow US$22 billion from a group of eight banks in two credit arrangements of US$13 billion maturing in 12 months and US$9 billion maturing in 18 months is currently incorporated into the company's local and foreign currency Issuer Default ratings of 'BB+' Rating Watch Positive. In a TCR-Europe report on Jan. 16, 2007, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Russian OJSC Oil Company Rosneft to 'BB+' from 'BB' and removed it from CreditWatch, where it had been placed with positive implications on Nov. 15, 2006. S&P said the outlook is developing. SAKHA-FLOR CJSC: Creditors Must File Claims by May 28 ----------------------------------------------------- Creditors of CJSC Sakha-Flor have until May 28 to submit proofs of claim to: T. Potekhina Insolvency Manager Krupskoy Str. 35 Yakutsk 677007 Sakha-Yakutiya Russia The Arbitration Court of Sakha-Yakutiya commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. A58-231/07. The Court is located at: The Arbitration Court of Sakha-Yakutiya Kurashova Str. 28 677000 Sakha-Yakutiya Russia The Debtor can be reached at: CJSC Sakha-Flor Pobedy Str. 5-7 Zyryanka Sakha-Yakutiya Russia SORTAVALSKIY FISH: Bankruptcy Hearing Slated for Sept. 27 --------------------------------------------------------- The Arbitration Court of Kareliya will convene on Sept. 27 to hear the bankruptcy supervision procedure on CJSC Sortavalskiy Fish Factory. The case is docketed under Case No. A26-1681/ 2007. The Temporary Insolvency Manager is: B. Remnev Shpalernaya Str. 60 191015 St. Petersburg Russia The Court is located at: The Arbitration Court of Kareliya Krasnoarmeyskaya Str. 24a Petrozavodsk 185610 Kareliya Russia The Debtor can be reached at: CJSC Sortavalskiy Fish Factory Promyshlennaya Str. 8 Sortavala 186790 Kareliya Russia SUAL GROUP: To Build Bauxite & Alumina Site in Komi Republic ------------------------------------------------------------ United Company RUSAL, the company formed from the merger of RUSAL, SUAL Group and Glencore International, has completed a state Feasibility Study appraisal for the construction of Komi Aluminium Bauxite and Alumina Complex in the Komi Republic. Investments into the project will exceed US$1.5 billion. The project includes the construction of a 1.4 million tpa alumina refinery in the Komi Republic's Sosnogorsk region and capacity expansion at the operating Middle-Timan bauxite mine from 2.6 up to 6.4 million tpa. The feasibility study was developed by the Russian National Aluminium and Magnesium Institute, which is part of United Company RUSAL. Construction will commence in June 2007. The refinery will operate using state-of-the-art Bayer technology. The future refinery's infrastructure is currently being built at the production facility site in the Sosnogorsk region. Railway tracks have been laid from the Vorkuta-Moscow line to the site and a small concrete production plant has been built in addition to administrative and general-use buildings. All construction is being carried out by the Engineering and Construction Division of United Company RUSAL. "The Komi Aluminium project is one of the company's top strategic priorities due to its potential to strengthen United Company RUSAL's raw materials base and play a crucial role in the implementation of greenfield smelter construction projects in Russia," Valery Matvienko, director of the Engineering and Construction Division commented. "The fact that an in-house engineering and construction division can manage this project at all stages -- from feasibility study development to commissioning and maintenance -- gives United Company RUSAL the opportunity to quickly and efficiently implement business ideas and maintain production dynamics". The proven reserves of the Eurasia Middle-Timan bauxite deposit, the largest in Russia and Eurasia, amount to 260 million tons. The complex is expected to be commissioned at the end of 2009 and will create more than 10,000 new jobs. The start-up of the complex will secure more than a 40% increase in Russia's alumina output. By completion of the project the total amount of investment in infrastructure development in the Komi Republic is expected to reach US$25 million. About SUAL Headquartered in Moscow, Russia, Siberian-Urals Aluminium Company -- http://www.sual.com/-- produces and smelts aluminium and ranks amongst the world's top ten producers. It comprises 18 businesses that are located in nine Russian regions and in Ukraine, Zaporozhya City, are involved in the production of bauxite, alumina, primary aluminium, silicon, semi-finished and finished aluminium products. The Group's revenue for the year ended Dec. 31, 2005, was US$2.7 billion. It has 60,000 employees. * * * As of May 22, 2007, SUAL Group carries a Ba3 Corporate Family Rating from Moody's Investors Service. The company also carries a BB- long-term corporate credit rating from Standard & Poor's Ratings Services. TMK OAO: Earns US$460.6 Million in Full Year 2006 ------------------------------------------------- OAO TMK released its audited consolidated financial results for the full year 2006. TMK reported US$460.6 million in net profit against US$3.4 billion in revenues for the year ended Dec. 31, 2006, compared with US$254.2 million in net profit against US$2.9 billion in revenues for the same period in 2005. At Dec. 31, 2006, US$3.5 billion in total assets, US$1.8 billion in total liabilities and US$1.8 billion in total shareholders' equity. 2006 Highlights Financials: * revenue grew by 15.2% to US$3.4 billion on robust demand for tubular products both in Russia and internationally * gross profit came in at U.S.$1,034 million, an increase of 38.5% compared to 2005 * EBITDA up 49.2% to US$794 million as a result of a strong pricing environment and increasing operating efficiency Sales Volumes: * total pipe sales volumes were nearly 3 million tons, including 1.93 million tons of seamless pipes * seamless pipe sales volumes climbed by 1.8%, OCTG pipes, the highest margin products, grew by 15.7% to a total of 946 thousand tons * welded pipe sales volume increased by 2.2%, boosted by growing demand for industrial welded pipes in Russia driven by the booming construction industry and infrastructure building Corporate developments: * in 2006, TMK established its presence in the European Union, through the 100% acquisition of Sinara Handel GmbH, which owns controlling stakes in the Romanian plants - Artrom and Resita * TMK was assigned credit ratings by Standard & Poor's and Moody's and successfully placed a US$300 million Eurobond * following the initial public offering, around 23% of TMK shares were listed on the London Stock Exchange (in the form of GDRs) and the Russian Trading System About TMK Headquartered in Moscow, Russia, OAO TMK -- http://www.tmkgroup.ru/eng/-- manufactures the entire product range of existing pipe products, which are used in the oil-and- gas industry, the chemical and petrochemical industries, the energy and machine-building industries, construction and the municipal housing economy, shipbuilding, aviation, space and rocket equipment, and agriculture. TMK has production facilities located in Russia and Romania, which unite the four leading enterprises in the Russian pipe industry. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Aerospace and Defence, Automotive, Forest Products, Healthcare and Pharmaceuticals, Metals and Mining, Natural Products Processor and Consumer Products sectors, the rating agency confirmed its B1 Corporate Family Rating for TMK. Moody's also assigned a B1 Probability-of-Default rating to the company. As of Feb. 5, 2007, TMK's long-term foreign and local issuer credits carry Standard & Poor's B+ ratings with a stable outlook. TMK OAO: Inks Strategic Partnership Deal with OAO Surgutneftegas ---------------------------------------------------------------- OAO Surgutneftegas and OAO TMK entered into a long-term strategic partnership agreement. The agreement was signed in Moscow by Surgutneftegas CEO, Vladimir Bogdanov and TMK CEO Konstantin Semerikov. This long-term strategic partnership agreement is valid for three years, with possible prolongation. Looking to strengthen their market positions in Russia and abroad, the parties agreed to cooperate in the production and supply of steel pipes. Steel pipes produced by TMK plants will be supplied to Surgutneftegas to meet its oil production needs. The volume of tubular goods shipped within the frames of this agreement is valued at US$1 billion. This agreement between Surgutneftegas and TMK involves the coordination of medium-term and long-term joint activity for the development of new types of tubular goods according to the Scientific-Technical Cooperation Joint Program for 2007-2010, approved by both companies in 2006. About TMK Headquartered in Moscow, Russia, OAO TMK -- http://www.tmkgroup.ru/eng/-- manufactures the entire product range of existing pipe products, which are used in the oil-and- gas industry, the chemical and petrochemical industries, the energy and machine-building industries, construction and the municipal housing economy, shipbuilding, aviation, space and rocket equipment, and agriculture. TMK has production facilities located in Russia and Romania, which unite the four leading enterprises in the Russian pipe industry. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Aerospace and Defence, Automotive, Forest Products, Healthcare and Pharmaceuticals, Metals and Mining, Natural Products Processor and Consumer Products sectors, the rating agency confirmed its B1 Corporate Family Rating for TMK. Moody's also assigned a B1 Probability-of-Default rating to the company. As of Feb. 5, 2007, TMK's long-term foreign and local issuer credits carry Standard & Poor's B+ ratings with a stable outlook. TSAREVSKIY MEAT: Chuvashiya Court Hearing Slated for Aug. 14 ------------------------------------------------------------ The Arbitration Court of Chuvashiya will convene on Aug. 14 to hear the bankruptcy supervision procedure on OJSC Agricultural Company Tsarevskiy Meat Combine. The case is docketed under Case No. A79-1718/2007. The Temporary Insolvency Manager is: S. Neimushev Premise 2 Nevzorovykh 89 603024 N. Novgorod Russia The Debtor can be reached at: OJSC Agricultural Company Tsarevskiy Meat Combine Beregovaya Str. 2 Alatyr Chuvashiya Russia VLADIVOSTOKSKIY FACTORY: Creditors Must File Claims by May 28 ------------------------------------------------------------- Creditors of LLC Vladivostokskiy Factory of Building Ceramics have until May 28 to submit proofs of claim to: D. Burtylev Insolvency Manager Post User Box 45 690105 Vladivostok-105 Russia The Arbitration Court of Primorye will convene at 11:00 a.m. on Sept. 19 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A51-1730/2007 15-8B. The Debtor can be reached at: LLC Vladivostokskiy Factory of Building Ceramics Lermontova Str., 56 Trudovoe Vladivostok Russia ZAINSK-AGRO-KHIM-SERVICE: Creditors Must File Claims by May 28 -------------------------------------------------------------- Creditors of OJSC Zainsk-Agro-Khim-Service have until May 28 to submit proofs of claim to: I. Gilyazov Insolvency Manager Post User Box 5 GOS-3 Chistopol 422983 Tatarstan Russia The Arbitration Court of Tatarstan will convene at 9:00 a.m. on Sept. 11 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. A65-5012/2007-SG4-49. The Court is located at: The Arbitration Court of Tatarstan Floor 2 Room 12 Entrance 2 Building 1 Kremlin Kazan Tatarstan Russia The Debtor can be reached at: OJSC Zainsk-Agro-Khim-Service Makarova Str. 17 Zainsk 423520 Tatarstan Russia ========= S P A I N ========= ACXIOM CORPORATION: Earns US$70.7 Million in Year Ended March 31 ---------------------------------------------------------------- Acxiom(R) Corporation reported full-year and fourth quarter financial results for fiscal 2007 ended March 31, 2007. Full 2007 fiscal-year results include revenue of US$1.4 billion and income from operations of US$158.8 million. Net earnings for the full 2007 fiscal year were US$70.7 million, as compared with US$64.1 million for the full 2006 fiscal year. Fourth-quarter results include revenue of US$357.3 million, income from operations of US$29.3 million, operating cash flow of US$76.5 million and free cash flow available to equity of US$15.4 million. Net earnings for the fourth quarter of 2007 were US$6.3 million, as compared with US$23.1 million for the fourth quarter of 2006. The reported results, excluding unusual charges, met the company's expectations and consensus analysts' estimates of US$0.20 earnings per share for the quarter. The quarter results include the impact of pretax charges of US$9.7 million and income tax expense of US$3.8 million related to closing Acxiom's business in Spain, cost of severance and retirement of debt in the U.S. and additional research tax credit reserves that reduced diluted EPS for the fourth quarter by US$0.12. At March 31, 2007, the company listed US$1.6 billion in total assets, US$1.1 billion in total liabilities, and US$521.3 million in total stockholders' equity. New Organizational Structure Acxiom also disclosed a new organizational alignment designed to increase focus on its three core areas of business. The new organizational structure reflects the unique characteristics within each area of the business and will facilitate the execution of operational strategies designed to maximize financial performance in each division. The re-segmentation took effect April 1, 2007, the first day of the company's fiscal year 2008. "This change is all about bringing focus and dedicated management to each key area of our business," Acxiom chairman and chief executive Charles D. Morgan said. "We believe this structure more closely aligns with our overall mission and therefore will lead to greater returns for our shareholders." In fiscal 2007, Acxiom: -- was named as one of the top 30 providers of financial services in the "FinTech 100" listing of the top technology providers as complied by American Banker and the research firm Financial Insights. -- saw its Acxiom Digital business ranked No. 17 by Advertising Age magazine on its list of top 50 interactive agencies based on annual U.S. revenues. -- was included on Forbes magazine's "Platinum 400" list of the best large publicly traded companies in America. Outlook Acxiom's Board of Directors has approved a business plan for fiscal 2008 of US$1.02 in earnings per share. The company continues to focus on its initiatives to improve performance and is in the process of restructuring into the three new divisions previously explained. About Acxiom Headquartered in Little Rock, Arkansas, Acxiom Corporation -- http://www.acxiom.com/-- (Nasdaq: ACXM) integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's innovative solutions are Customer Data Integration technology, data products, database services, IT outsourcing, consulting and analytics, and privacy leadership. The company also has locations in Europe (UK, France, Germany, Spain, among others), Australia, China and Canada. The company also has a presence in Latin America and has strategic alliances with certain companies in Argentina, Brazil and Mexico. * * * Moody's Investors Service assigned a Ba2 rating to Acxiom Corporation's US$800 million senior secured credit facilities, while affirming its corporate family rating of Ba2. Moody's said the outlook is stable. ACXIOM CORP: Silver Lake Deal Cues S&P's Negative Watch ------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB' corporate credit rating on Little Rock Arkansas-based Acxiom Corp. on CreditWatch with negative implications. "The CreditWatch placement follows the announcement that Acxiom has entered into a definitive agreement to be acquired by Silver Lake and ValueAct Capital, in an all-cash transaction valued at US$3.0 billion, including approximately US$756 million of outstanding debt," said Standard & Poor's credit analyst Philip Schrank. The merger agreement provides that Acxiom may solicit and entertain proposals from other companies during the next 60 days. The ratings on Acxiom's existing senior secured bank facility were not placed on CreditWatch, as the term loans and any amounts outstanding under the revolving credit facility are expected to be refinanced as part of the transaction. S&P will review the financial terms of the acquisition and their assessment of management's business strategy in order to resolve the CreditWatch listing. Headquartered in Little Rock, Arkansas, Acxiom Corporation -- http://www.acxiom.com/-- (Nasdaq: ACXM) integrates data, services and technology to create and deliver customer and information management solutions for many of the largest, most respected companies in the world. The core components of Acxiom's innovative solutions are Customer Data Integration technology, data products, database services, IT outsourcing, consulting and analytics, and privacy leadership. The company also has locations in Europe (UK, France, Germany, Spain, among others), Australia, China and Canada. The company also has a presence in Latin America and has strategic alliances with certain companies in Argentina, Brazil and Mexico. ===================== S W I T Z E R L A N D ===================== GUNTEN JAKOB: Claims Registration Period Ends June 2 ---------------------------------------------------- The Bankruptcy Court of Bern commenced bankruptcy proceedings against LLC Gunten Jakob on March 5. Creditors have until June 2 to file their written proofs of claim. The Bankruptcy Service of Bern-Mittelland can be reached at: Bankruptcy Service of Bern-Mittelland 3011 Bern Switzerland The Debtor can be reached at: LLC Gunten Jakob Holz 211 3674 Bleiken Konolfingen BE Switzerland HOBLA CATERING: Claims Registration Period Ends June 1 ------------------------------------------------------ The Bankruptcy Court of Sissach in Basel commenced bankruptcy proceedings against LLC HoBla Catering on March 29. Creditors have until June 1 to file their written proofs of claim. The Bankruptcy Service of Sissach can be reached at: Bankruptcy Service of Sissach 4450 Sissach BL Switzerland The Debtor can be reached at: LLC HoBla Catering Gewerbestrasse 100 4450 Sissach BL Switzerland SPACENET SERVICES: Zug Court Starts Bankruptcy Proceedings ---------------------------------------------------------- The Bankruptcy Court of Zug commenced bankruptcy proceedings against LLC Spacenet Services on April 12. The Bankruptcy Service of Zug can be reached at: Bankruptcy Service of Zug 6300 Zug Switzerland The Debtor can be reached at: LLC Spacenet Services 6312 Steinhausen ZG Switzerland SWISSAIR: Creditors May Get Back 10% of Claims, Liquidators Say --------------------------------------------------------------- Most of Swissair Group's creditors will recoup no more than a tenth of their claims and many may get no money at all, the liquidator of the bankrupt national airline discloses. Swissair's creditors have filed claims totaling CHF28.1 billion (US$22.9 billion), of which CHF2.9 billion have been accepted for payment, according to the latest circular posted on the Web site of the company's liquidator. According to the circular, the liquidators disclosed that they have so far rejected CHF13.9 billion worth of claims, while appeals or decisions are pending on the rest. Non-preferential creditors will get only 9.8 percent of their money, assuming none of the appeals are successful and only 60 percent of the undecided claims have to be paid. The TCR-Europe reported on March 13, 2007, that a Swiss court would render judgment on charges of criminal mismanagement and false accounting filed against the company's top executives, board members, and advisers by the end of this month, following what is infamously dubbed as "Switzerland's largest corporate mismanagement trial." About Swissair Swissair collapsed in October 2001 after accumulating CHF17 billion in debt in relation to significant investments in a number of European airlines including Sabena, Air Liberte of France, and Turkish Airlines. It defaulted on the debt during the slump that followed the Sept. 11, 2001 terrorist attacks in the U.S. The entire Swissair fleet was grounded on Oct. 2, 2001, and Swissair ceased to exist after Crossair took over most of its assets on March 31, 2002. Kurt Hoss Liquidators in Zurich liquidated the assets that Crossair did not take over. Crossair was later renamed Swiss International Air Lines Ltd. The District Courts of Zurich and Bulach in the Canton of Zurich provisionally approved the debt-restructuring moratorium petitions on Oct. 5, 2001, for: -- SAirGroup, Zurich (holding company) -- SAirLines, Zurich -- Flightlease AG, Zurich -- Swissair Schweizerische Luftverkehr AG, Kloten On Oct. 7, 2001, the Courts granted a provisional debt- restructuring moratorium to: -- Cargologic AG, Zurich -- Swisscargo AG, Zurich The Court appointed Karl Wuethrich at Wenger Plattner as the Debtors' provisional administrator. Swissair's liquidation status as of Dec. 31, 2006 -- http://www.liquidator-swissair.ch/-- listed total assets at CHF513,813,182 over total liabilities of CHF84,684,932. ============= U K R A I N E ============= AGROBRAND LLC: Creditors Must File Claims by May 27 --------------------------------------------------- Creditors of LLC Agrobrand (code EDRPOU 33797712) have until May 27 to submit written proofs of claim to: Vladimir Barantsov Liquidator 1st Slobodskaya Str. 8-a 54055 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 10/182/07. The Court is located at: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Debtor can be reached at: LLC Agrobrand Ochakovsky Lane 42-A Nikolaev Ukraine AGROLAN-SOUTH LLC: Creditors Must File Claims by May 27 ------------------------------------------------------- Creditors of LLC Agrolan-South (code EDRPOU 33730820) have until May 27 to submit written proofs of claim to: Vladimir Barantsov Liquidator 1st Slobodskaya Str. 8-a 54055 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 10/183/07. The Court is located at: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Debtor can be reached at: LLC Agrolan-South Ochakovsky Lane 42-A Nikolaev Ukraine AIR INDUSTRY: Claims Filing Bar Date Set May 26 ----------------------------------------------- Creditors of LLC Air Industry (code EDRPOU 31842291) have until May 26 to submit written proofs of claim to: Michael Grishyn Temporary Insolvency Manager Kuybishev Str. 1-a 49027 Dnipropetrovsk Ukraine The Economic Court of Dnipropetrovsk commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. B 15/34-07. The Court is located at: The Economic Court of Dnipropetrovsk Kujbishev Str. 1a 49600 Dnipropetrovsk Ukraine The Debtor can be reached at: LLC Air Industry Monitornaya Str. 2/1 49018 Dnipropetrovsk Ukraine EUROSERVICE-FINANCE: Creditors Must File Claims by May 27 --------------------------------------------------------- Creditors of CJSC Euroservice-Finance (code EDRPOU 23409690) have until May 27 to submit written proofs of claim to: Vladimir Barantsov Liquidator 1st Slobodskaya Str. 8-a 54055 Nikolaev Ukraine The Economic Court of Nikolaev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 10/632/06. The Court is located at: The Economic Court of Nikolaev Admiralskaya Str. 22 54009 Nikolaev Ukraine The Debtor can be reached at: CJSC Euroservice-Finance Lenin Avenue 67 Nikolaev Ukraine IKS-TRADE LLC: Creditors Must File Claims by May 27 --------------------------------------------------- Creditors of LLC Iks-Trade (code EDRPOU 32221402) have until May 27 to submit written proofs of claim to: State Tax Inspection of Fastov of Kiev Liquidator Kirov Str. 28 Fastov 08500 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. B 14/098-07. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Iks-Trade Teatralnaya Str. 18 Borovaya Fastov District 08500 Kiev Ukraine KRECHET LLC: Creditors Must File Claims by May 26 ------------------------------------------------- Creditors of LLC Krechet (code EDRPOU 31515428) have until May 26 to submit written proofs of claim to: LLC Real-Group Liquidator Obolonsky Avenue 23-A 04205 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 24/242-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Krechet Oranzhereynaya Str. 3 04112 Kiev Ukraine MALIKS LLC: Creditors Must File Claims by May 27 ------------------------------------------------ Creditors of LLC Maliks (code EDRPOU 25399948) have until May 27 to submit written proofs of claim to: Viacheslav Letskan Liquidator Dovzhenko Str. 16-V 03057 Kiev Ukraine The Economic Court of Kiev commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 15/149-b. The Court is located at: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Debtor can be reached at: LLC Maliks Byelorussia Str. 30 04050 Kiev Ukraine MOSCOW-PODOLYE: Creditors Must File Claims by May 26 ---------------------------------------------------- Creditors of LLC Moscow-Podolye (code EDRPOU 30247298) have until May 26 to submit written proofs of claim to: Taisiya Melnik Liquidator Pervomayskaya Str. 6 Derazhnia Hmelnitsky Ukraine The Economic Court of Hmelnitskiy commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 4/332-B. The Court is located at: The Economic Court of Hmelnitskiy Nezalezhnosti Square 1 29000 Hmelnitskiy Ukraine The Debtor can be reached at: LLC Moscow-Podolye Kamianka Kamianets-Podolsky District Hmelnitskiy Ukraine RIVNE FLAX: Claims Filing Bar Date Set May 27 --------------------------------------------- Creditors of LLC Rivne Flax Enterprise (code EDRPOU 30272125) have until May 27 to submit written proofs of claim to: Pavel Duplika Temporary Insolvency Manager P.O. Box 27 Rivne-23 33023 Rivne Ukraine The Economic Court of Rivne commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. 8/21. The Court is located at: The Economic Court of Rivne Yavornitski Str. 59 33001 Rivne Ukraine The Debtor can be reached at: LLC Rivne Flax Enterprise Fabrichnaya Str. 12 33000 Rivne Ukraine TH QUANT: Creditors Must File Claims by May 27 ---------------------------------------------- Creditors of OJSC Rivne Electronic Plant TH Quant (code EDRPOU 22583545) have until May 27 to submit written proofs of claim to: Pavel Duplika Liquidator P.O. Box 27, Rivne-23 33023 Rivne Ukraine The Economic Court of Rivne commenced bankruptcy proceedings against the company after finding it insolvent. The case is docketed under Case No. 8/25. The Court is located at: The Economic Court of Rivne Yavornitski Str. 59 33001 Rivne Ukraine The Debtor can be reached at: OJSC Rivne Electronic Plant TH Quant D. Galitsky Str. 25 Rivne Ukraine =========================== U N I T E D K I N G D O M =========================== ADVANSTAR COMMUNICATIONS: Extends Tender Offer Expiry to May 30 --------------------------------------------------------------- Advanstar Communications Inc. and Advanstar Inc. extended the expiration date of the tender offer and consent solicitation with respect to: * Advanstar Communications' -- 10-3/4% Second Priority Senior Secured Notes due 2010 (CUSIP Nos. 00758RAM6 and 00758RAH7); and -- 12% Senior Subordinated Notes due 2011 (CUSIP No. 00758RAF1); and * Advanstar Inc.'s -- 15% Senior Discount Debentures due 2011 (CUSIP No. 00759JAE1), from 5:00 p.m., New York City time, on May 18, 2007, to 11:59 p.m. New York City time, on May 30, 2007, unless extended by the Issuers. Subject to the terms and conditions of the tender offers and consent solicitations, any Notes validly tendered will be accepted for purchase promptly after the Expiration Date. Except for the extension of the Expiration Date, all of the other terms and conditions of the tender offer and consent solicitation remain unchanged. Holders of approximately 100% of the outstanding aggregate principal amount of the Senior Secured Notes, holders of approximately 93.41% of the outstanding aggregate principal amount of the Senior Subordinated Notes and holders of approximately 97.96% of the outstanding aggregate principal amount of the Debentures, have tendered their outstanding Notes and delivered related consents pursuant to the tender offers and consent solicitations. The Issuers received the requisite consents from the registered holders of the Notes to amend the indentures governing the Notes. The last day that holders of Notes could have withdrawn tendered Notes and revoked the related consents was as of 5:00 p.m., New York City time, on May 2, 2007. As a result, tendered Notes and related consents may no longer be withdrawn or revoked. If all conditions to the tender offer and consent solicitation are satisfied, holders of the Notes who validly tendered their Notes pursuant to the tender offer and validly delivered their consents pursuant to the consent solicitation by the Consent Date and did not validly withdraw their Notes or revoke their consents by such date, will be paid a consideration of US$1,057.53, for each US$1,000 principal amount outstanding of Senior Secured Notes, US$1,013.50 for each US$1,000 principal amount outstanding of Senior Subordinated Notes and US$1,012.50 for each US$1,000 principal amount outstanding of Debentures, in each case, in addition to a consent payment of US$30 per US$1,000 outstanding principal amount of Notes tendered and accepted in the tender offers. Holders who validly tender their Notes after the Consent Date will not receive the consent payment. In addition, holders who validly tender and do not validly withdraw their Notes in the tender offer will receive accrued and unpaid interest from the last interest payment date up to, but not including, the applicable date of payment. Questions regarding the tender offers and consent solicitations may be directed to the exclusive Dealer Manager and Solicitation Agent for the tender offers and consent solicitations: Credit Suisse Securities (USA) LLC Liability Management Group Tel: (800) 820-1653 (toll free) or (212) 538-0652 (collect) Requests for the Statement, Consent and Letter of Transmittal or other documents related to the tender offers and solicitations may be directed to the Information Agent: D.F. King & Co. Inc. Tel: (888) 628-8208 (toll free) About Advanstar Communications and Advanstar Inc. Based in New York City, Advanstar --http://www.advanstar.com/-- is a worldwide media company providing integrated marketing solutions for the Fashion and Licensing, Life Sciences and Powerports industries. Communications serves business professionals and consumers in these industries with its portfolio of 91 shows and stand-alone conferences, 66 publications and directories, 150 electronic publications and Web sites, well as educational and direct marketing products and services. Communications has roughly 1,000 employees and currently operates from multiple offices in North America and in Chester and London for European office. All of the common stock of Communications is owned by its parent company, Advanstar. * * * Advanstar Communications Inc.'s 12% Senior Subordinated Notes due 2011 carry Moody's Investors Service's 'Caa1' rating and Standard & Poor's 'CCC' rating. ALL AMERICAN: Committee Turns to Mesirow for Financial Advice ------------------------------------------------------------- The Official Committee of Unsecured Creditors in All American Semiconductor Inc. and its debtor-affiliates' bankruptcy cases ask the United States Bankruptcy Court for the Southern District of Florida for permission to employ Mesirow Financial Consulting LLC as its financial advisor, nunc pro tunc to May 4, 2007. The firm will: a. assist in the review of reports or filings as required by the Bankruptcy Court or the Office of the United States Trustee, including, but not limited to, schedules of assets and liabilities, statements of financial affairs and monthly operating reports; b. review of the Debtors' financial information, including, but not limited to, analyses of cash receipts and disbursements, financial statement items and proposed transactions for which Bankruptcy Court approval is sought; c. review and analysis of the reporting regarding cash collateral and any debtor-in-possession financing arrangements and budgets; d. evaluate of potential employee retention and severance plans; e. assist with identifying and implementing potential cost containment opportunities; f. assist with identifying and implementing asset redeployment opportunities; g. analysis of assumption and rejection issues regarding executory contracts and leases; h. review and analysis of the Debtors' proposed business plans and the business and financial condition of the Debtors generally; i. assist in evaluating reorganization strategy and alternatives available to the creditors; j. review and critique of the Debtors' financial projections and assumptions; k. preparation of enterprises, assets and liquidation valuations; l. assist in preparing documents necessary for confirmation; m. advice and assist to the Committee in negotiations and meetings with the Debtors and the bank lenders; n. advice and assist on the tax consequences of proposed plans of reorganization; o. assist with the claims resolution procedure, including, but not limited to, analyses of creditors claims by type and entity; p. litigate consulting services and expert witness testimony regarding confirmation issues, avoidance actions or other matters; and q. assist the Committee in these Chapter 11 cases as request by the Committee or its counsel. The Debtors tell the Court that the firm has agreed to apply a 10% discount for the engagement. The firm's professional billing rates are: Designation Hourly Rate ----------- ----------- Senior Managing Director US$650-$690 Managing Director US$650-$690 Director US$650-$690 Senior Vice President US$550-$620 Vice President US$450-$520 Senior Associate US$350-$420 Associate US$190-$290 Paraprofessional US$150 James S. Feltman, a senior managing director of the firm, assures the Court that he firm does not hold any interest adverse to the Debtors' estate and is a "disinterested person" as defined in Section 101(14) of the Bankruptcy Code. Mr. Feltman can be reached at: James S. Feltman Senior Managing Director Mesirow Financial Consulting LLC 350 North Clark Street Chicago, IL 60610 Tel: (312) 595-6000 Fax: (312) 595-4246 http://www.mesirowfinancial.com/ About All American Semiconductor Headquartered in Miami, Florida, All American Semiconductor Inc. (Pink Sheets: SEMI.PK) -- http://www.allamerican.com/-- is a distributor of electronic components manufactured by others. The company distributes a full range of semiconductors including transistors, diodes, memory devices, microprocessors, microcontrollers, other integrated circuits, active matrix displays and various board-level products. All American also distributes passive components such as capacitors, resistors and inductors; and electromechanical products such as power supplies, cable, switches, connectors, filters and sockets. The company also offers complete solutions for flat panel display products. In total, the company offers approximately 40,000 products produced by approximately 60 manufacturers. The company has 36 strategic locations throughout North America and Mexico, as well as operations in both Asia and Europe, particularly South Korea and England and Wales. The company and its debtor-affiliates filed for Chapter 11 protection on April 25, 2007 (Bankr. S.D. Fla. Lead Case No. 07-12963). Tina M. Talarchyk, Esq., at Squire Sanders & Dempsey LLP, in West Palm Beach, Florida, represents the Debtors. Jerry M. Markowitz, Esq., at Markowitz, Davis, Ringel & Trusty, P.A., and William M. Hawkins, Esq., at Loeb & Loeb LLP, represents the Committee. As of Feb. 28, 2007, total assets was US$117,634,000 and total debts was US$106,024,000. BAA PLC: Consortium Buys Budapest Airport Shares for EUR1.9 Bln --------------------------------------------------------------- A consortium led by HOCHTIEF AirPort GmbH signed on May 9, 2007, a contract with BAA plc to acquire all its shares in Budapest Airport Zrt. The relevant Hungarian state entities have already given their approval to the acquisition. In June 2006, the Spanish consortium ADI Ltd., led by Ferrovial, acquired the British airport operator BAA and decided to dispose of several of the company's international holdings, among others Budapest Airport. The purchasing consortium consists of: -- HOCHTIEF AirPort (49.666 percent), -- Caisse de depot et placement du Quebec, Montreal (23.167 percent), -- GIC Special Investments, Singapore (23.167 percent), and -- KfW IPEX-Bank, Frankfurt (4.0 percent). The consortium partners are acquiring 75 percent minus one vote of Budapest Airport and will assume all the obligations agreed by BAA with the Hungarian Government when the airport was partially privatized in December 2005. Budapest Airport Zrt. has the right to operate the airport for a remaining period of 73.5 years. The total purchase price (on debt-free basis) is EUR1.9 billion. It will be paid in two installments, directly after transaction close and in 2011. The value of this purchase price approximately equals the price offered by HOCHTIEF during the privatization process in 2005 due to, among others, the airport's continued growth, the restructuring measures already completed, the optimized capital expenditure plan and the enhanced capital efficiency due to the optimized payments schedule. As reported in the Troubled Company Reporter-Europe on May 11, 2007, the gross assets of Budapest Airport, which are the subject of the disposal, were EUR2.2 million at the end of December 2006 and the operating profit was EUR49.3 million. The consideration of EUR1.9 billion, TCR-Europe relates, comprises EUR1.4 billion in cash, which will be used to pay down debt subject to the conditions of ADI's funding agreements. The remaining EUR424.1 million is provided in the form of loan notes with a maturity date in June 2011. Budapest Airport will positively contribute to HOCHTIEF's consolidated net profit from the beginning and lastingly add to the increase of the portfolio value. With this important acquisition in Central Europe, HOCHTIEF AirPort has entered one of the most interesting and promising aviation markets. "With its entry into Budapest Airport, HOCHTIEF is strengthening its strong global position in the private airport market and forcefully pursuing its corporate strategy of continued growth in this segment", says Herbert Luetkestratkoetter, Executive Board Chairman (CEO) of HOCHTIEF Aktiengesellschaft, commenting on the transaction. This success, he said, also highlights how HOCHTIEF has been able in recent years to move forward from its core competence of construction to tap into new and profitable business fields. In terms of size, location and potential, Budapest Airport ideally fits the company's strict acquisition requirements. In just the last three years, traffic volume has increased by 18 percent on an annual average. Budapest is Hungary's largest airport and in 2006 handled approximately 8.3 million passengers, making it the second-most important aviation hub in the new EU countries. The HOCHTIEF consortium will follow the path initiated after privatization. It will develop the airport in line with its position as one of the leading airports in Central and Eastern Europe, with attractive facilities, maximum safety and security and excellent service. About the Hochtief AG Headquartered in Essen, Germany, Hochtief Aktiengesellschaft is the country's largest construction company. Hochtief AirPort is an airport management business that has consolidated Hochtief's interests in the privatization and operation of airports since 1997. It holds stakes in Athens International Airport, Duesseldorf International Airport, Hamburg Airport, Kingsford Smith International Airport (Sydney) and a new concession agreement covering Rinas Mother Teresa Airport (Tirana). About BAA Plc Headquartered in London, United Kingdom, BAA plc -- http://www.baa.com/-- owns and operates seven airports in the United Kingdom, including Healthrow, the world's busiest international airport, and Budapest Airport, serving 700 destinations by around 300 airlines. Its airports in the U.K. handled over 117 million international passenger during the 12 months up to October 2005. International passengers make up 81% of its total U.K. airport traffic. BAA had total assets of GBP15.2 billion and pre-tax profits of GBP757 million for the year ended March 31, 2006. * * * As of Feb. 6, 2007, BAA Plc carries these ratings from Moody's: -- Issuer Rating: Ba1 -- GBP425-million convertible bonds due August 2009: Ba1 -- GBP424-million convertible bonds due April 2008: Ba1 -- GBP200-million 7.875% bonds due February 2007: Ba1 BRITISH AIRWAYS: Joins TPG Consortium in Potential Iberia Bid ------------------------------------------------------------- British Airways plc, which holds a 10% stake in Iberia Lineas Aereas de Espana SA, has joined with TPG Capital, Vista Capital, Inversiones Ibersuizas and Quercus Equity to investigate a possible consortium offer for the Spanish carrier. There is no guarantee that a formal bid will be made. The airline has previously ruled out further capital investment as part of any consortium offer and will not make an independent bid for the airline. About British Airways Headquartered in West Drayton, United Kingdom, British Airways Plc -- http://www.ba.com/-- operates of international and domestic scheduled and charter air services for the carriage of passengers, freight and mail, and provides of ancillary services. The British Airways group consists of British Airways Plc and a number of subsidiary companies including in particular British Airways Holidays Ltd. and British Airways Travel Shops Ltd. BA has offices in India and Guatemala. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa, the rating agency confirmed its Ba1 Corporate Family Rating for British Airways Plc. Moody's also assigned a Ba1 Probability-of-Default Rating to the company. * Issuer: British Airways, Plc Projected Old New LGD Loss-iven Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- GBP100-million 10.875% Sr. Unsec. Regular Bond/Debenture Due 2008 Ba2 Ba2 LGD5 84% GBP250-million 7.25% Sr. Unsec. Regular Bond/Debenture Due 2016 Ba2 Ba2 LGD5 84% As reported in the TCR-Europe on March 27, 2007, Standard & Poor's Ratings Services said that its 'BB+' long-term corporate credit rating on British Airways PLC remains on CreditWatch, with positive implications, following a vote on March 22 by EU ministers approving a proposed "open skies" aviation treaty with the U.S. BRITISH SKY: Virgin Media Rejects Carriage Compromise Proposal -------------------------------------------------------------- Virgin Media Inc. has turned down a proposal of British Sky Broadcasting Group plc that would have restored BSkyB's basic channels to customers, published reports say. "Our new offer is that we simply split the difference between each party's last offer in respect of the carriage of our basic channels," BSkyB CEO James Murdoch wrote in a letter to Virgin Media CEO Steve Burch on May 10, 2007, quoted in reports. According to Mr. Murdoch in his second letter to Mr. Burch on May 18, 2007, Virgin Media has not come up with any alternative proposal or offer. "Disappointingly, we can only conclude that you are not genuinely interested in offering Sky's channels to your customers, preferring to continue to deny Sky access to your network as a means of pursuing wider corporate goals, simultaneously harming Sky commercially by denying us wholesale subscription and advertising revenues," Mr. Murdoch stated. However, Mr. Burch denied that Virgin Media has rejected negotiations. He emphasized that the company has always been open to a realistic offer from Sky, AFX News relates. Carriage Row Following the expiry of an agreement at the end of February 2007, Sky's basic channels ceased to be carried on Virgin Media's platform. As previously reported in the TCR-Europe on April 16, 2007, Virgin Media filed legal proceedings in the High Court aimed at resolving a dispute with British Sky over the withdrawal of the latter's "basic" channels from Virgin Media's TV service. The proceedings also seek a remedy for the onerous rates imposed by Sky for carriage of Virgin Media TV channels on Sky's own TV service. The proceedings are based on Section 18 of the U.K. Competition Act 1998 and Article 82 of the EC Treaty, both of which prohibit a company from abusing its dominant position. Sky, which accounts for almost 70% of the country's Pay TV subscribers, is dominant in the U.K. Pay TV market and has engaged in a strategy to stifle competition by using its dominance against Virgin Media. In January 2007, Virgin Media alleged that it was forced by Sky to accept a reduction of approximately 85% in the fees that it pays for Virgin Media TV channels such as Living, Bravo and Trouble, despite a 15% increase in the channels' popularity. In February 2007, Sky attempted to double the fees Virgin Media pays for retailing Sky's basic channels on the Virgin Media network, despite a reduction in the channels' popularity of about 20% over the last three years. Financial Impact Virgin Media's gross customer additions in the first quarter ended March 31, 2007, were 184,300, down from 213,500 in the fourth quarter, due to the loss of BSkyB's basic channels from our platform and to increased competitor activity. As a result of the Sky basics issue and also continuing pressure on telephony, Virgin Media expects negative customer, TV and telephony net additions in the second quarter. On the other hand, wholesale subscription revenue of BSkyB in the first quarter ended March 31, 2007, fell by 5% to GBP162 million and included the impact from the expiry (and non- renewal) of the contract to supply Sky's basic channels to Virgin Media part way through the quarter. Were Sky's basic channels to remain off Virgin Media's platform, the BSkyB estimates the impact of lower wholesale carriage fees and advertising revenues would adversely affect operating profit by GBP15 to GBP20 million in the year to June 30, 2007. About Virgin Media Headquartered in London, England, Virgin Media Inc. (fka NTL Inc.) (NASDAQ: VMED) -- http://virginmedia.com/-- provides broadband, digital television, telephony, content and communications services, reaching over 50% of the U.K. homes and 85% of the U.K. businesses. About BSkyB Headquartered in Isleworth, England, British Sky Broadcasting Group PLC -- http://www.sky.com/-- is the holding company of the British Sky Broadcasting group of companies. British Sky Broadcasting Group plc and its subsidiaries operate the pay television broadcast service in the United Kingdom and Ireland. The Company acquires programming to broadcast on its channels and supplies certain of those channels to cable operators for them to retransmit to their subscribers in the United Kingdom and Ireland. It retails channels (both its own and third parties) to direct-to-home subscribers and to a limited number of digital subscriber line subscribers. The Company also makes three of its channels available via the United Kingdom free-to- air digital terrestrial television platform, which markets itself under the brand Freeview. At Dec. 31, 2006, the Groups' balance sheet showed GBP4.1 billion in total assets, GBP4.3 billion in total liabilities, and GBP145 million in stockholders' deficit. The Group's Dec. 31 balance sheet also showed strained liquidity with GBP1.8 billion in total currents assets available to pay GBP2.2 billion in total liabilities coming due within the next 12 months. COLT TELECOM: telent Wins Three-Year Communications Contract ------------------------------------------------------------ COLT Telecom Group S.A. has awarded telent plc a three-year contract to provide field engineers to support its customers' communication infrastructures. The contract with COLT will see telent employ engineers from COLT's existing staff alongside its own field engineers. The combined workforce will plan, install, support and maintain customer communication systems across a multitude of networking platforms including IP, Ethernet and SDH. The support from telent will enable COLT to provide enhanced speed of installation, the application of industry best practice and out-of-hours service delivery. With one of the UK's largest field forces available to the COLT field engineering team, the company can now offer total reach across the UK on a 24/7 basis. telent's Network Support Centre will play an integral role by handling calls and dispatching engineers to any fault, anywhere in the country. "COLT has a reputation for providing its customers with a secure and reliable network and required a service provider that could offer the same quality of service; telent's quality processes and ability to scale its services convinced us that they were the partner of choice," COLT Director of Operations Adrian Thirkill explained. "The skills base formed by combining COLT's employees with telent's field force has created a unique platform for delivering a high level of service with the added advantage of extra scalability, which will support COLT's ongoing business plans." "This contract win is a significant achievement for telent and is testament to our ability to provide complete network lifecycle support," telent CEO Mark Plato commented. "telent has established itself as an expert in providing telecommunications support right from the initial planning stages through to maintenance and support. We are looking forward to working closely with COLT and playing an essential part in COLT's future growth." Headquartered in London, United Kingdom, Colt Telecom -- http://www.colt.net/-- offers business communication services across Europe. Through its fiber optic network, the Company offers voice, bandwidth, e-business and managed network services to finance, industry and service sector customers and governments. * * * As of Feb. 23, Colt Telecom Group S.A. carries Moody's B2 long- term corporate family rating. Moody's said the outlook is stable. Standard & Poor's rates Colt Telecom's long-term foreign issuer credit and long-term local issuer credit at B. The outlook is stable. FORD MOTOR: Wixom Assembly Plant in Michigan to Close on May 31 --------------------------------------------------------------- The largest assembly plant of Ford Motor Corp. in Wixom, Michigan, which opened in 1957, will cease operating on May 31, 2007, various reports say. According to the Associated Press, plant manager Phil Calhoun related that morale is high because workers were presented with one of several severance packages that included educational buyouts or retirement or transfers to other facilities. Employees expressed pride on the legacy they have formed and optimism in taking on other opportunities when the plant closes. Unlike 16 months ago when Ford disclosed the inclusion of Wixom plant, which makes Lincoln Town Cars, in its restructuring plan, employees conveyed hurt and disappointment, various sources relates. As reported in the Troubled Company Reporter on May 9, 2007, the company's Way Forward restructuring plan, which will displace 26,000 jobs and close 16 plants by 2012, aims to transform its North American automotive business. Wixom city mayor Michael McDonald knew the plant was closing and have been ready, Louis Aguilar of The Detroit News writes. The city exerted effort to entice small industrial companies, including National Liquid Blasting Corp. and General Motors Corp.'s powertrain and design services units. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Company -- http://www.ford.com/-- manufactures and distributes automobiles in 200 markets across six continents. With more than 324,000 employees worldwide, the company's core and affiliated automotive brands include Aston Martin, Ford, Jaguar, Land Rover, Lincoln, Mazda, Mercury and Volvo. Its automotive- related services include Ford Motor Credit Company and The Hertz Corporation. The company has operations in Japan in the Asia Pacific region. In Europe, the Company maintains a presence in Sweden, and the United Kingdom. The Company also distributes its brands in various Latin-American regions, including Argentina and Brazil. * * * As of May 22, 2007, Ford Motor Co. carries these ratings: * Moody's Investors Service -- outlook: negative -- issuer rating: Caa1 -- long-term corporate family rating: B3 -- bank loan debt: Ba3 -- senior unsecured debt: Caa1 -- probability of default: B3 * Standard & Poor's -- outlook: negative -- long-term foreign and local issuer credit: B * Fitch Ratings -- outlook: negative -- long-term issuer default rating: B -- bank loan debt: BB -- senior unsecured: B- * Dominion Bond Rating Service -- outlook: negative -- bank loan: BH -- senior unsecured debt: CCCH -- short-term: R-5 -- long-term issuer rating: BL GLOBAL CROSSING: March 31 Equity Deficit Tops US$290 Million ------------------------------------------------------------ Global Crossing Ltd.'s balance sheet at March 31, 2007, showed total assets of US$2.2 billion and total liabilities of US$2.5 billion, resulting in a total stockholders' deficit of US$290 million. Accumulated deficit at March 31, 2007, stood at US$1.1 billion, as compared with US$1 billion at Dec. 31, 2006. During the first quarter ended March 31, 2007, the company reported US$504 million of consolidated revenue, an increase of US$16 million or 3% from the fourth quarter, when consolidated revenue was US$488 million. On a year-over-year basis, consolidated revenue expanded by 11% compared with the first quarter of 2006. Net loss for the first quarter of 2007 was US$120 million, as compared with a net loss of US$108 million for the first quarter of 2006. Cost of access expense for the first quarter was US$284 million, compared with US$274 million in the fourth quarter and US$285 million in the first quarter of 2006. Consolidated net loss applicable to common shareholders was US$121 million for the first quarter, as compared with a loss of US$90 million in the fourth quarter of 2006 and US$109 million in the first quarter of 2006. Cash and Liquidity As of March 31, 2007, Global Crossing had US$378 million of cash and cash equivalents. The company's US$81 million of cash use for the quarter included US$18 million of financing and acquisition fees. The remainder of cash used was attributable to adjusted cash EBITDA losses, increased expenditures made to strategic access vendors and capital expense. Cash used for capital expenditures and principal on capital leases and long- term debt was US$45 million in the first quarter. These cash expenditures were offset by US$21 million in proceeds from the sale of indefeasible rights of use. On May 9, 2007, the company borrowed US$250 million under a five-year senior secured term loan agreement with Goldman Sachs and Credit Suisse as joint book runners, which yielded net cash proceeds of US$241 million after payment of fees and expenses. The proceeds will be used to refinance the company's existing US$55 million working capital facility with Bank of America, to provide additional liquidity necessitated principally by cash used to close the Impsat acquisition and to reduce days payable with key access vendors during the first and second quarters. In addition, on May 9, 2007, Impsat completed its previously announced tender offer for its Series A 6-percent senior guaranteed convertible notes due 2011 and its Series B 6-percent senior guaranteed convertible notes due 2011, pursuant to its Offer to Purchase and Consent Solicitation Statement, dated Jan. 29, 2007. The tender offer expired on May 9, 2007. On May 10, 2007, Impsat announced that it is accepting for payment all validly tendered Notes, consisting of US$92 million in aggregate principal amount at maturity of Notes, representing about 99% of the outstanding Notes. The supplemental indenture executed in connection with the merger became operative May 10, 2007. Global Crossing also announced that it had completed a five- year, US$250 million secured term loan facility with Goldman Sachs and Credit Suisse as joint book runners, yielding net cash proceeds of US$241 million. To facilitate the loan, a subsidiary of the company's majority shareowner, Singapore Technologies Telemedia, agreed to subordinate its mandatorily convertible notes due December 2008 to the term loan and then to convert the notes into common stock and warrants. A full-text copy of the company's first quarter 2007 report is available for free at http://ResearchArchives.com/t/s?1fa1 Impsat Acquisition On May 9, 2007, the company completed its acquisition of IMPSAT Fiber Networks Inc., a leading provider of integrated broadband data, Internet, voice telecommunications and advanced hosting. The total estimated transaction value was US$347 million, comprised of about US$95 million in equity, US$26 million of assumed indebtedness and repayment of US$226 million of indebtedness. A portion of the funds used to consummate the merger was financed from the proceeds of an offering, arranged by Credit Suisse, of 9.875-percent senior notes due 2017 by GC Impsat Holdings I Plc, a subsidiary of Global Crossing. Global Crossing used about US$160 million in cash to fund the remainder of the transaction and associated costs. No capital stock was issued in conjunction with the acquisition. "[On May 9, 2007] we're proud to be closing our acquisition of Impsat - a business that fits solidly into Global Crossing's strategy of selling IP and data services to enterprises and carriers around the world," said John Legere, Global Crossing's chief executive officer. "Like Fibernet in the UK, Impsat will further enhance the momentum we've already achieved in our 'invest and grow' segment by adding product capabilities and growth potential, as well as solid financial results." While Impsat's first quarter results are not reflected in Global Crossing's financial results, they are expected to contribute positively to the second quarter performance commencing on the May 9, 2007, closing date. About Global Crossing Headquartered in Florham Park, New Jersey, Global Crossing Ltd. (NASDAQ: GLBC) -- http://www.globalcrossing.com/-- provides telecommunication services over the world's first integrated global IP-based network, which reaches 27 countries and more than 200 major cities around the globe including Bermuda, Argentina, Brazil in Latin-America, the United Kingdom in Europe and Hong Kong in the Asia-Pacific regions. Global Crossing serves many of the world's largest corporations, providing a full range of managed data and voice products and services. The company filed for chapter 11 protection on Jan. 28, 2002 (Bankr.S.D.N.Y. Case No. 02-40188). When the Debtors filed for protection from their creditors, they listed US$25,511,000,000 in total assets and US$15,467,000,000 in total debts. Global Crossing emerged from chapter 11 on Dec. 9, 2003. At Sept. 30, 2006, Global Crossing Ltd.'s balance sheet reflected a US$131 million stockholders' deficit. At June 30, 2006, Global th company reported US$1.87 billion in total assets and US$1.95 billion in total liabilities, resulting to a stockholders' deficit of US$86 million. It also reported a US$173 million stockholders' deficit on Dec. 31, 2005. INEOS GROUP: Ineos Capital Buys Norsk Hydro's Polymer Business -------------------------------------------------------------- INEOS Capital has reached agreement to acquire Norsk Hydro ASA's polymers business for NOK5.5 billion (EUR670 million), subject to closing adjustments. The acquisition of Hydro's polymers activities, recently renamed Kerling ASA, will allow INEOS to progress its growth strategy in Europe and will enable the company to integrate high quality assets, people and capabilities into its wider business. The acquisition of Kerling represents a very good product and geographic fit, providing complementary assets, expertise and market positions across Europe. INEOS will benefit from an enhanced position across its chloralkali, polymer and compounds businesses, as well as acquiring a 50% share in the Noretyl ethylene cracker at Rafnes, Norway, which is a joint venture with Borealis. Kerling is a wholly owned subsidiary of Norsk Hydro ASA, consisting of 1,200 staff and production facilities in Norway, Sweden and the United Kingdom. The business also has interests in joint ventures in Norway, Qatar and China and a shareholding in the Portuguese PVC Producer CIRES, which is listed on Euronext in Lisbon. "This is an important acquisition for INEOS", said INEOS Chief Executive Jim Ratcliffe said. "Hydro's polymers business has a very good strategic fit with the INEOS portfolio. Its people, assets and technology will provide a significant opportunity for continued growth in this area," "Our polymers business has shown a remarkable development and now ranks among the best in the European petrochemicals industry," Hydro President and CEO Eivind Reiten said. "Together with European industry leader INEOS, we will contribute to creating a new industry champion, well positioned to pursue opportunities for long-term growth. We believe this solution will contribute to a continued strong development of the polymers business." Hydro, the Norwegian-based energy and aluminium company, disclosed Dec. 6, 2006 that as part of its strategy to divest non-core assets it was considering a public listing or divestment of the Polymers business. Following this agreement Hydro will discontinue the process of listing Kerling ASA on the Oslo Stock Exchange. The acquisition is being made by INEOS Capital and stand alone financing for the acquisition has been fully committed by Barclays Capital and Merrill Lynch. The transaction, which is conditional on approval from the EU competition authorities, is expected to close in the third quarter 2007. Headquartered in Lyndhurst, England, Ineos Group Holdings plc -- http://www.ineos.com/-- is a diversified and integrated chemicals group. Following the completion of the Innovene acquisition in December 2005, Ineos reported 2005 revenues of EUR22.3 billion and nine-month 2006 revenues of EUR20.2 billion and EBITDA of EUR1.9 billion for 2005 and EUR1.5 billion for nine months of 2006. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa, the rating agency confirmed its Ba3 Corporate Family Rating for Ineos Group Holdings Plc. Moody's also assigned a Ba3 Probability-of-Default Rating to the company. The implementation of the LGD methodology in EMEA follows the introduction of the methodology in September 2006. Most of the rating actions Moody's confirmed relate to senior secured loans. * Issuer: Ineos Group Holdings Plc Projected Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- 8.5% Senior Secured Regular Bond/Debenture Due 2016 B2 B2 LGD5 89% 7.875% Senior Secured Regular Bond/Debenture Due 2016 B2 B2 LGD5 89% * Issuer: Ineos Holdings Ltd. Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Senior Secured Bank Credit Facility Ba3 Ba2 LGD3 34% Senior Secured Bank Credit Facility (Second Lien) B1 B1 LGD5 78% * Issuer: INEOS Vinyls Finance Plc. Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- 9.125% Senior Unsecured Regular Bond/Debenture Due 2011 B3 B2 LGD6 96% In December 2006, Fitch Ratings assigned U.K.-based chemical producer Ineos Group Holdings Plc an Issuer Default rating of BB- with Positive Outlook. At the same time, Fitch assigned Ineos' EUR1.63 billion 8.875% and US$700 million 8.5% senior unsecured notes due 2016 ratings of B+. The agency also assigned Ineos Holdings Ltd.'s senior secured facilities a BB+ rating and its second lien facilities a BB- rating. INEOS GROUP: ChlorVinyls Unit Sells E-PVC Business to Vinnolit -------------------------------------------------------------- INEOS ChlorVinyls, a unit of Ineos Group Holdings plc, is selling its Emulsion PVC (E-PVC) business to Vinnolit GmbH & Co. KG. The value of the deal is not disclosed. The sale consists of the commercial goodwill of the INEOS ChlorVinyls E-PVC business along with its E-PVC production facilities at Hillhouse (UK) and Schkopau (Germany). The deal will also include Vinnolit entering into an offtake agreement for the entire E-PVC output at Porto Torres (Italy). The E-PVC business has an annual turnover of approximately ?150 million. INEOS ChlorVinyls retains its European VCM and Suspension PVC (S-PVC) businesses at Runcorn and Barry in the UK; Wilhelmshaven and Schkopau in Germany; and Porto Marghera, Porto Torres and Ravenna in Italy. VCM/S-PVC is the largest business of INEOS ChlorVinyls, with the Group's production capacity standing at around 1.1 million tonnes of VCM and 1.4 million tons of S-PVC. S-PVC finds its principal uses in the construction and packaging sectors; while VCM is used primarily within the INEOS supply chain. "The sale will further strengthen the INEOS ChlorVinyls business by allowing us to consolidate our production and focus on our core strengths in VCM and S-PVC," CEO INEOS ChlorVinyls Chris Tane commented. It is expected that the sale will be completed once necessary approvals from the European Commission have been obtained. Headquartered in Lyndhurst, England, Ineos Group Holdings plc -- http://www.ineos.com/-- is a diversified and integrated chemicals group. Following the completion of the Innovene acquisition in December 2005, Ineos reported 2005 revenues of EUR22.3 billion and nine-month 2006 revenues of EUR20.2 billion and EBITDA of EUR1.9 billion for 2005 and EUR1.5 billion for nine months of 2006. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa, the rating agency confirmed its Ba3 Corporate Family Rating for Ineos Group Holdings Plc. Moody's also assigned a Ba3 Probability-of-Default Rating to the company. The implementation of the LGD methodology in EMEA follows the introduction of the methodology in September 2006. Most of the rating actions Moody's confirmed relate to senior secured loans. * Issuer: Ineos Group Holdings Plc Projected Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- 8.5% Senior Secured Regular Bond/Debenture Due 2016 B2 B2 LGD5 89% 7.875% Senior Secured Regular Bond/Debenture Due 2016 B2 B2 LGD5 89% * Issuer: Ineos Holdings Ltd. Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Senior Secured Bank Credit Facility Ba3 Ba2 LGD3 34% Senior Secured Bank Credit Facility (Second Lien) B1 B1 LGD5 78% * Issuer: INEOS Vinyls Finance Plc. Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- 9.125% Senior Unsecured Regular Bond/Debenture Due 2011 B3 B2 LGD6 96% In December 2006, Fitch Ratings assigned U.K.-based chemical producer Ineos Group Holdings Plc an Issuer Default rating of BB- with Positive Outlook. At the same time, Fitch assigned Ineos' EUR1.63 billion 8.875% and US$700 million 8.5% senior unsecured notes due 2016 ratings of B+. The agency also assigned Ineos Holdings Ltd.'s senior secured facilities a BB+ rating and its second lien facilities a BB- rating. IOSTAR PLC: Funding Shortage Triggers Liquidation ------------------------------------------------- Television production and distribution company iostar plc is going into liquidation after failing to raise GBP30 million to fund its planned acquisition of companies such as Stephen Fry's production house Sprout and modeling agency Models 1, British paper The Stage reports. Iostar released a statement saying: "The board of Iostar has considered a number of options to continue the business according to a revised business plan following its funding difficulties and the resignation of its chief executive. However, it has not proved possible to implement such plans in the time available to the board having regard to the current financial position of the company. Accordingly, the directors have seen no alternative but to take immediate action to place the company into liquidation." Creditors are understood to include U.K. TV exec Dawn Airey and Stephen Fry, the British thespian who helped set up the short- lived upstart chaired by seasoned U.K. TV topper Dick Emery, Variety reveals. Ms. Airey quit a mere eight days after assuming the chief executive post when she discovered that Iostar's funds fell short of the entire amount needed to finance the company's expansion plans, The Stage relates. The company's board suspended chief fundraiser Carron Brown last month when it came to light that he had failed to find the US$60 million needed to pay for Iostar's planned acquisitions, Variety states. About iostar plc London-based iostar plc -- http://www.iostar.tv/-- is a television production and distribution company. LEEDS UNITED: SR Morris Group Confirms GBP10 Mln Takeover Bid ------------------------------------------------------------- Simon Morris of SR Morris Group confirmed his GBP10 million takeover bid for Leeds United Association Football Club Ltd. with proved funds accepted by KPMG administrators, Yorkshire Evening Post reports. "SR Morris Group will back the bid with GBP25 million to stabilize the club's finances, and has plans for a GBP400 million all-seater leisure complex capable of holding 50,000 on the Elland Road site, and the regeneration of the immediate surrounding area," Yorkshire Evening Post quoted Mr. Morris as saying. According to the report, Mr. Morris' offer is the only confirmed challenge to the attempt by Ken Bates, Shaun Harvey and Mark Taylor to buy back Leeds United through a newly formed company Leeds United Football Club Ltd. from administrators KPMG. Former Leeds manager Don Revie's son Duncan, two separate Irish consortia, and former West Ham chairman Terry Brown are among those considering bids, Yorkshire Evening Post relates. Meanwhile, former Leeds United chairman and an expert in corporate insolvency Gerald Krasner has vowed to fight on for change at Elland Road, Yorkshire Post said. In a letter sent to creditors, Mr. Krasner stated "Effectively, he will have bought the club back debt free for approximately GBP500,000, including professional costs. Quite frankly, I consider this offer utterly derisory and unless you agree with this proposal, it is up to you as a creditor to make your voice heard." "As an ex-chairman of the club I am upset at the rapid decline of the club over the last 12 months. I've had a lot of approaches recently from fellow professionals, acting either for creditors or for third parties, who wish to invest in the club, but do not want to deal with Mr. Bates. They have all asked me the same question, 'what can be done?' "My answer has always been that if the CVA proposal by the joint administrators is voted down, then I believe substantial investment would come quickly into the club and the return to creditors would be much higher," Mr. Krasner was quoted by the Yorkshire Post. As reported in the TCR-Europe on May 18, 2007, the club will have its creditors' meeting at noon on June 1, 2007, at Leeds United. KPMG LLP -- http://www.kpmg.co.uk/-- offers accounting, audit, and tax-related services to customers in such target industries as banking, media and entertainment, consumer products, health care providers, insurance, and pharmaceuticals. About Leeds United Headquartered in Leeds, England, Leeds United Association Football Club Ltd. -- http://www.leedsunited.com/-- is an English professional football club. The club called in administrators on April 30, 2007, after its balance sheet dated March 31, 2007, showed debts totaling GBP35 million, and a cash injection of around GBP10 million required to continue trading. RESLOC UK: Fitch Puts Low-B Ratings on 3 Mortgage Note Classes -------------------------------------------------------------- Fitch Ratings has assigned final ratings to ResLoC U.K. 2007-1 plc (GBP-equivalent 909 million) mortgage-backed floating-rate notes due 2043 as: -- GBP-equivalent 144.67 million Class A1: 'AAA' -- GBP-equivalent 143.98 million Class A2: 'AAA' -- GBP-equivalent 413.94 million Class A3: 'AAA' -- GBP-equivalent 81.01 million Class M1: 'AAA' -- GBP-equivalent 41.2 million Class B1: 'AA' -- GBP-equivalent 29 million Class C1: 'A' -- GBP-equivalent 38.5 million Class D1b: 'BBB' -- GBP-equivalent 8.28 million Class E1b: 'BB' -- GBP-equivalent 7.84 million Class E2b: 'BB-' -- GBP-equivalent 1.53 million Class F1b: 'B' This is the first transaction under the ResLoC U.K. name and contains collateral from four different originators: Advantage (a trading style of Morgan Stanley International Bank Ltd.), GMAC-RFC, Amber Homeloans Ltd. and Victoria Mortgage Funding. The final ratings are based on the collateral quality, available credit enhancement, the underwriting of the abovementioned originators, the servicing capabilities of Homeloan Management Ltd. and the sound legal structure of the transaction. Credit enhancement for the Class A1, A2, and A3 notes totaling 23.25% is provided by the subordination of the Class M1 (9%) Class B1 (4.58%), Class C1 (3.22%), Class D1b (4.28%) and Class E1 (0.92%) notes as well as an initial reserve fund of 1.25% building to 1.35%. The Class E2b notes will receive principal after any necessary payments into the reserve fund and interest before any necessary payments into the reserve fund. The Class F1b notes will receive interest and principal after any necessary payments into the reserve fund. To determine appropriate credit enhancement levels, Fitch analyzed the collateral using its U.K. Residential Mortgage Default Model. The agency also modeled cash flows using the results of the default model with structural stresses, including various prepayment and interest rate scenarios. The cash flow tests showed that each Class of notes could withstand loan losses at a level corresponding to the related stress scenario without incurring any principal loss or interest shortfall, and that it can retire the principal by legal final maturity. SOLUTIA INC: Files Amended Plan and Disclosure Statement -------------------------------------------------------- Solutia Inc. has filed an Amended Plan of Reorganization and Disclosure Statement with the U.S. Bankruptcy Court for the Southern District of New York. The filing of the plan was supported by the Official Committee of Unsecured Creditors, Monsanto Company (NYSE:MON), Pharmacia Corporation, the Official Committee of Retirees, and the Ad Hoc Committee of Trade Creditors. "We are pleased to have filed a plan that positions Solutia to emerge from chapter 11 with an improved cost structure, strengthened balance sheet, and greatly reduced risk profile," said Jeffry N. Quinn, chairman, president and chief executive officer of Solutia Inc." Importantly, we will do so while providing significant recoveries for our creditors, ensuring all environmental remediation commitments will be met, securing and providing significant funding for retiree welfare benefits, and preserving our pension plan." Amended Plan Maintains Key Benefits of Original Plan of Reorganization The plan maintains the key benefits provided for Solutia under the original Plan of Reorganization filed by the company in February 2006, but provides greater recoveries for creditors due to an increase in the estimated equity value of the reorganized company. In addition, there has been some reallocation of the equity ownership of the reorganized company. Relief from Legacy Liabilities The plan provides significant relief from the legacy liabilities Solutia was required to assume when spun off from Pharmacia (formerly known as Monsanto Company) in 1997. These legacy liabilities include: (1) retiree medical, retiree life insurance, and disability benefits for those individuals whom retired or became disabled prior to the Solutia spin-off; (2) environmental remediation costs related to activities of the chemicals business of Pharmacia that occurred prior to the Solutia spin-off; and (3) toxic tort litigation costs relating to chemical exposure associated with the activities of Pharmacia that occurred prior to the Solutia spin-off. Relief from Tort Litigation and Environmental Remediation Liabilities Under the plan, as between it and Solutia, Monsanto will assume financial responsibilities in the areas of tort litigation and environmental remediation. Monsanto will be financially responsible for all current and future tort litigation costs arising from Pharmacia's chemical business prior to the Solutia spin-off. This includes litigation arising from exposure to PCBs and other chemicals. Monsanto will accept financial responsibility for environmental remediation and clean-up obligations at all sites for which Solutia was required to assume responsibility at the spin-off but which were never owned or operated by Solutia. Solutia will remain responsible for the environmental liabilities at sites that it presently owns or operates. Solutia and Monsanto will share financial responsibility with respect to two sites. Under this cost-sharing mechanism, the first $50 million of post-emergence remediation and cleanup costs will be funded by the proceeds of the rights offering described below. As required, Monsanto has already expended more than $50 million during the course of Solutia's Chapter 11 case with respect to these sites. As a result, Monsanto will be entitled to an administrative claim of at least $14.2 million. Upon emergence, Solutia would be responsible for the funding of these sites up to an agreed upon amount. Thereafter, if needed, Monsanto and Solutia would share responsibility equally. Solutia would be able to defer paying off-site remediation costs relating to these sites that exceed $30 million in any calendar year and any deferred amounts would be paid by Monsanto, subject to repayment by Solutia at a later date. $250 Million of New Investment The plan provides for $250 million of new investment in reorganized Solutia. This investment will be in the form of a rights offering to certain unsecured creditors, whom will be given the opportunity to purchase 27.9% of the common stock in the reorganized company. Of this $250 million, $175 million will be set aside in a Voluntary Employees' Beneficiary Association (VEBA) Retiree Trust to fund the retiree welfare benefits for those pre-spin retirees whom receive these benefits from Solutia. Additionally, $75 million will be used by reorganized Solutia to pay for other legacy liabilities being retained by the company. Comprehensive Retiree Settlement The plan provides for the same comprehensive retiree settlement that was negotiated with the Retirees Committee and included in the original plan. Although the settlement includes benefit modifications, the plan provides significant current funding of these benefit obligations, which greatly improves Solutia's ability to meet these benefit obligations going forward. In consideration for the contemplated modification in benefits, the retirees will receive an unsecured claim of $35 million in Solutia's Chapter 11 case. The common stock received in reorganized Solutia on account of this claim will be deposited into the VEBA Retiree Trust, along with the $175 million from the rights offering described above. The VEBA Retiree Trust will be a bankruptcy-remote entity and will be managed by an independent trustee. Additional Matters The plan includes an assumption and extension of commercial and operating agreements between Solutia and Monsanto. The plan also seeks a discharge for Solutia from most prepetition claims. Valuation and Anticipated Creditor Recoveries "As a result of the successful execution of our reorganization strategy, we have substantially increased the value of the company since the filing of the original plan," said Mr. Quinn. Under the plan, Solutia estimates that the enterprise value of reorganized Solutia will be $2.85 billion, with corresponding implied reorganization equity value of approximately $1.2 billion. Mr. Quinn added, "The men and women of Solutia believe in the future of this company, and it is because of their hard work and perseverance that we have been able to revitalize the company and position it for long term success." Anticipated Creditor Recoveries "The plan provides for substantially enhanced creditor recoveries compared to the original plan filed in February 2006. Under the original plan, unsecured creditors would have received recoveries of approximately 52%, compared with estimated recoveries of nearly 85% under the current plan," added Mr. Quinn. "And, with the bankruptcy court's recent ruling regarding the unsecured status of certain of our noteholders, we are able to move forward without the significant creditor classification issues that bogged down moving the original plan toward confirmation." Under the plan, Solutia's senior secured notes will be paid in full in cash from proceeds from an exit-financing package to be arranged by the company. The plan also provides that the following creditors and equity interest holders will receive the following distributions. (These distributions assume full subscription to the rights offering by those creditors who are entitled to participate): -- Holders of Allowed General Unsecured Claims will receive their pro rata share of 34.1% of the new common stock. Based on the mid-point of Solutia's estimates with regard to the aggregate amount of the allowed general unsecured claims, this will result in a recovery of 84.8 cents on the dollar. -- Holders of Allowed Noteholder Claims will receive their pro rata share of 44.1% of the new common stock. This will result in a recovery of 84.8 cents on the dollar, the same as all other General Unsecured Creditors. -- Monsanto will receive 20% of the new common stock. In addition, Monsanto will have an allowed administrative claim for all amounts spent by Monsanto in excess of $50 million in connection with environmental cleanup and remediation at the sites for which it shared responsibility with Solutia during the chapter 11 cases. -- In accordance with the terms of the retiree settlement agreement, the Retirees as a class will receive 1.8% of the new common stock. This stock will be deposited into a VEBA Retiree Trust that will be used to pay retiree welfare benefits. This is in addition to the $175 million from the rights offering that will be deposited into the VEBA Retiree Trust as stated above. -- Holders of Equity Interests in Solutia will receive no distributions on account of such equity interests. As stated in the plan, Solutia currently estimates that the size of the unsecured noteholder claims pool will be $455.4 million; and that the general unsecured claims pool will range from $327-$377 million with a mid-point of $352 million. Corporate Governance and Board of Directors of Reorganized Solutia Under the plan, reorganized Solutia will be an independent, publicly traded company listed on a national exchange. Reorganized Solutia will have nine members on its Board of Directors. The nine members will consist of Jeffry N. Quinn, Solutia's current chairman, president and chief executive officer; one continuing director of Solutia; one director designated by Monsanto; and six directors designated by the Creditors Committee. The six directors will be designated by the Creditors' Committee in consultation with the company and Monsanto. Solutia will retain a nationally recognized executive search firm to assist in the selection of members of the initial Board of Directors. Next Steps in Reorganization Process The next major step in the reorganization process will be to conduct a hearing to consider the legal adequacy of the Amended Disclosure Statement. Solutia will request a bankruptcy court hearing regarding this matter in early July. If the court determines that the Amended Disclosure Statement provides sufficient information for claim holders and other interested parties to vote on the plan, then the Amended Disclosure Statement and plan would be sent to claim holders for voting purposes. Following the voting process, Solutia will ask the bankruptcy court to hold a hearing to consider approval or "confirmation" of the plan. If the court confirms the plan, Solutia would emerge from chapter 11 shortly thereafter. "With our current momentum, I believe Solutia will be able to emerge from chapter 11 as a strong and viable company in the third quarter," said Quinn. Solutia's Amended Plan of Reorganization and Disclosure Statement are available at http://www.solutia.com/reorganization About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia, Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- with its subsidiaries, make and sell a variety of high-performance chemical-based materials used in a broad range of consumer and industrial applications. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The Company filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., at Kirkland & Ellis. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. SOLUTIA: Unsecured Creditors to Get 84.9% Under Amended Plan ------------------------------------------------------------ Over 14,800 proofs of claim were filed against Solutia Inc. and its debtor-affiliates in their Chapter 11 Cases. In addition, the Debtors listed approximately 2,500 claims in their schedules of assets and liabilities. The claims asserted amounts of over $28,000,000,000 in the aggregate. The Debtors' First Amended Joint Plan of Reorganization groups claims against and equity interests in the Debtors into 20 classes: Class Description Claim Treatment ----- ----------- --------------- 1 Priority Non-Tax Claims Unimpaired. 100% Recovery. Estimated Aggregate Allowed Amount: $2,200,000 2 Secured Claims Unimpaired. 100% Recovery. Estimated Aggregate Allowed Amount: $40,000,000 to $50,000,000 3 Senior Secured Unimpaired. 100% Recovery. Estimated Aggregate Allowed Amount: $205,900,000 to $223,000,000 4 Convenience Claims Unimpaired. 100% Recovery. Estimated Aggregate Allowed Amount: $1,000,000 to $2,500,000 5 CPFilms Claims Unimpaired. 100% Recovery. Estimated Aggregate Allowed Amount: $8,400,000 6 NRD Claims Unimpaired. NRD Claims are being Reinstated and will be paid in accordance with the terms of the Amended Plan and the Relationship Agreement. 7 Insured Claims Unimpaired. Holders of Insured Claims can recover against the applicable insurance policies. 8 Tort Claims Unimpaired. Monsanto is taking financial responsibility for Tort Claims. 9 Legacy Site Claims Unimpaired. Monsanto is taking financial responsibility for Legacy Site Claims. 10 Equity Interests in all Unimpaired. Debtors other than Solutia 11 Monsanto Claim Impaired. Among others, allowance of unsecured and administrative claims in favor of Monstanto. 12 Noteholder Claims Impaired. 84.9% Recovery Estimated Aggregate Allowed Amount: $455,400,000 based on principal amount of $450,000,000 plus accrued and unpaid interest of $5,400,000 as of the Petition Date. 13 General Unsecured Impaired. Claims 84.9% Recovery. Estimated Aggregate Allowed Amount: $327-$377 million 14 Retiree Claim Impaired. 59.5% Recovery. Estimated Aggregate Allowed Amount: $35,000,000 15 Pharmacia Claims Impaired. 0% Recovery. Pursuant to the terms of the Plan and the Relationship Agreement, Pharmacia will receive a limited indemnity from Reorganized Solutia and a limited release from certain claims. 16 Non-Debtor Impaired. Intercompany Claims 40% Recovery. On the Effective Date, each Non-Debtor Intercompany Claim will be reduced by 60% and the remainder thereof will be reinstated by virtue of book entries without a Distribution of Cash or other consideration being made on account of the Claim. Estimated Aggregate Allowed Amount: $108,000,000 17 Debtor Intercompany Impaired Claims 0% Recovery. Estimated Aggregate Allowed Amount: $2,440,000,000 18 Axio Claims Impaired. 0% Recovery. Holders of Claims in Class 18 will receive no distribution under the Amended Plan. 19 Security Claims Impaired 0% Recovery. Holders of Claims in Class 19 will receive no distribution under the Amended Plan. 20 Equity Interests Impaired in Solutia 0% Recovery. Holders of Claims in Class 20 will receive no distribution under the Amended Plan. Jeffry N. Quinn, Solutia's current chairman, president and chief executive officer, relates that, with respect to the Monsanto Claim, Monsanto has agreed, as part of the Monsanto Settlement only, to accept an Allowed Unsecured Claim equal to the value of: (a) amounts related to the management and settlement of Legacy Claims and other expenses on the Debtors' behalf that (i) Monsanto has spent from the Petition Date through March 31, 2007, which Solutia believes to be $180,900,000, and (ii) Monsanto likely will spend, pursuant to the Monsanto Settlement, following that date, which amount Solutia believes to be $143,600,000, (b) the extension of the term of the Master Operating Agreement, (c) the replacement of the Distribution Agreement with the Relationship Agreement, (d) the settlement of litigation related to Solutia's Anniston, Alabama plant, (e) the elimination of all Tort Claims from Solutia's General Unsecured Claims pool, (f) the waiver of the right to file surrogate claims on behalf of legacy claimants, (g) the waiver of various indemnity claims related to legacy liabilities for which Monsanto has agreed to assume responsibility, (h) the Chocolate Bayou Settlement and continuation of the Commercial and Operating Agreements subject to the terms thereof, and (i) the resolution of all litigation and potential litigation related to the Distribution Agreement, the classification of Monsanto's Claim and other matters, between Solutia and Monsanto. Monsanto will also receive an Administrative Expense Claim for any amounts it pays (a) for Retained Sites and (b) in excess of $50,000,000 with respect to documented out of pocket Environmental Liabilities at the Shared Sites during the Chapter 11 cases. Mr. Quinn also notes that: 1. The Allowed Amount of the Senior Secured Note Claims is subject to a determination of the Senior Secured Noteholders' rights under applicable law. Solutia believes that the Allowed amount of the Senior Secured Notes Claim will not exceed $223,000,000, however, the Senior Secured Notes Trustee has asserted that its claims on behalf of the Senior Secured Noteholders could exceed this amount. The $205,900,000 is determined using the effective interest method as of June 30, 2007. 2. Holders of Allowed CPFilms Claims are entitled to receive interest on such Claims at a rate to be negotiated among Solutia, the Official Committee of Unsecured Creditors, and the Ad Hoc Trade Committee. This interest rate will be disclosed prior to the hearing to consider the adequacy of disclosure statement explaining the Amended Plan. 3. The recovery calculations for Noteholder Claims and General Unsecured Claims and Retiree Claim are based on these assumptions: (a) a General Unsecured Claims pool of $352,000,000 -- the midpoint of the estimated range for the ultimate aggregate amount of Allowed General Unsecured Claims; (b) an exercise price in the Rights Offering at a discount of 25% to Solutia's implied midpoint equity valuation; (c) full subscription to the Rights Offering by participating parties; and (d) that all recoveries are calculated net of the cost to acquire Rights. The discount applied to the Rights may change as a result of negotiations among Solutia and its stakeholders; provided that the Rights Offering generates $250,000,000 in Cash proceeds and that Monsanto receives 20% of the New Common Stock after taking into account any dilution as a result of the Rights Offering. Claimants Voting on Plan Under the provisions of the Bankruptcy Code, not all parties in interest are entitled to vote on a Chapter 11 plan. Solutia is not soliciting votes from the Holders of Claims in Classes 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10, because they are not Impaired under the Amended Plan. Pursuant to Section 1126(f) of the Bankruptcy Code, those Classes are conclusively presumed to have accepted the Amended Plan. Solutia also says that it is not soliciting votes from Holders of Claims in Classes 16 and 17, because they Classes are deemed to have accepted the Amended Plan. Solutia is not soliciting votes from the Holders of Claims in Classes 18, 19 and 20 because they are Impaired under the Amended Plan, and they will not receive any Distributions under the Amended Plan. Pursuant to Section 1126(g), those Classes are deemed to have rejected the Amended Plan. Claimants in Classes 11 to 15 are entitled to vote on the Amended Plan. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia, Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- with its subsidiaries, make and sell a variety of high-performance chemical-based materials used in a broad range of consumer and industrial applications. Solutia has operations in Malaysia, China, Singapore, Belgium, Colombia and the United Kingdom. The Company filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., at Kirkland & Ellis. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. SOLUTIA INC: Amended Plan Estimates Enterprise Value at $3.2 Bln ---------------------------------------------------------------- Rothschild Inc. estimates that the total enterprise value of Solutia Inc. and its debtor-affiliates is approximately $2,500,000,000 to $3,200,000,000. In Feb. 2006, in connection with the Debtors' filing of Plan of Reorganization, Rothschild had estimated the Debtors' total enterprise to be between $2,000,000,000 to $2,300,000,000. In connection with the Debtors' First Amended Joint Plan of Reorganization filed on May 16, 2007, Rothschild estimates that the Debtors' implied reorganized equity value would range from $900,000,000 to $1,500,000,000, given an estimated net debt levels of the Debtors of approximately $1,700,000,000. The firm notes that the Amended Plan provides for the distribution of 119.5 million shares of New Common Stock. However, the value of those shares is subject to dilution as a result of the exercise of certain rights and conversions in connection with certain equity incentive plans. Rothschild relied upon these assumptions with respect to the valuation of the Debtors: -- The Effective Date occurs on or about June 30, 2007; -- The Debtors are able to recapitalize with adequate liquidity as of the Effective Date; -- The Debtors are able to implement the Global Settlement reached with Monsanto Corp., Pharmacia Corp., the Official Committee of Unsecured Creditors, and, as applicable, the Retirees Committee, or an alternate plan providing for similar structure and terms; -- The pro forma net debt levels of the Debtors will be approximately $1,700,000,000; -- The financial projections assume that a material portion of the Debtors' NOLs will be available to the Reorganized Debtors, although subject to limitations under currently existing U.S. federal income tax laws; -- General financial and market conditions as of the Effective Date will not differ materially from those conditions prevailing as of the date of this Disclosure Statement; and -- The Debtor sell the Dequest business for net proceeds of approximately $60,000,000. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia, Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- with its subsidiaries, make and sell a variety of high-performance chemical-based materials used in a broad range of consumer and industrial applications. Solutia has operations in Malaysia, China, Singapore, Belgium, Colombia and the United Kingdom. The Company filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., at Kirkland & Ellis. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. SOLUTIA INC: Sees $633 Mil. Earnings for 2007 Under Amended Plan ---------------------------------------------------------------- In connection with the First Amended Joint Plan of Reorganization filed by Solutia Inc. and its subsidiaries, the company's management prepared projected financial statements with the assistance of Rothschild, the Debtors' financial advisors. The Projections are based on, among other things: (a) current and projected market conditions in each of Reorganized Solutia's markets; (b) the ability to maintain sufficient working capital to fund operations; (c) final approval of the up to $2,000,000,000 exit financing; and (d) confirmation of the Amended Plan. The Debtors project they will continue to earn income in 2006 through 2011: Actual 2006 $2,000,000 Projected 2007 $633,000,000 Projected 2008 $122,000,000 Projected 2009 $162,000,000 Projected 2010 $220,000,000 Projected 2011 $249,000,000 The Debtors also project that they will maintain cash and cash equivalents for: (a) $78,000,000 for the year ended 2007, and (b) $30,000,000 for the years ended 2008 through 2011. Reorganized Solutia Inc. Projected Fresh Start Balance Sheet (In Millions) Exit Projected Debt Financing 1-Jul-07 Discharge Facility Balance & Reclass- Transac- Sheet ifications tions -------- -------- -------- ASSETS CURRENT ASSETS: Cash & Cash Equivalents $156 ($347) $221 Trade Receivables 457 - - Inventories 392 - - Prepaid Expenses and Other Assets 201 - - -------- -------- -------- TOTAL CURRENT ASSETS 1,206 (347) 221 PROPERTY, PLANT & EQUIPMENT, net 1,044 - - INVESTMENTS in AFFILIATES 7 - - OTHER ASSETS 280 7 302 -------- -------- -------- TOTAL ASSETS $2,537 ($340) $523 ======== ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY {DEFICIT} CURRENT LIABILITIES: Accounts Payable $260 $0 $0 Accrued Liabilities 274 45 - Short-term Debt 1,074 - (1,015) -------- -------- -------- TOTAL CURRENT LIABILITIES 1,608 45 (1,015) LONG-TERM DEBT 213 20 1,387 OTHER LIABILITIES 302 825 (103) LIABILITIES SUBJECT TO COMPROMISE 1,780 (1,780) - -------- -------- -------- TOTAL LIABILITIES 3,903 (890) 269 SHAREHOLDERS' DEFICIT: Common Stock 1 - - Additional Contributed Capital 56 - 254 Treasury Stock, at Costs (251) - - Net Deficiency of Assets at Spin-off (113) - - Accumulated Other Comprehensive Loss (65) - - Retained Earnings (Deficit) (994) 550 - -------- -------- -------- TOTAL SHAREHOLDERS' EQUITY (1,366) 550 254 -------- -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) 2,537 (340) 523 ======== ======== ======== Reorganized Solutia Inc. Projected Fresh Start Balance Sheet (In Millions) Reorganized Fresh Start 01-Jul-2007 Adjustments Balance Sheet ----------- ------------- ASSETS CURRENT ASSETS: Cash & Cash Equivalents $0 $30 Trade Receivables - 457 Inventories - 392 Prepaid Expenses and Other Assets - 201 -------- -------- TOTAL CURRENT ASSETS - 1,080 PROPERTY, PLANT & EQUIPMENT, net - 1,044 INVESTMENTS in AFFILIATES - 7 OTHER ASSETS 1,891 2,480 -------- -------- TOTAL ASSETS $1,891 $4,611 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY {DEFICIT} CURRENT LIABILITIES: Accounts Payable $0 $260 Accrued Liabilities - 319 Short-term Debt - 59 -------- -------- TOTAL CURRENT LIABILITIES - 638 LONG-TERM DEBT - 1,620 OTHER LIABILITIES 129 1,153 LIABILITIES SUBJECT TO COMPROMISE - - -------- -------- TOTAL LIABILITIES 129 3,411 SHAREHOLDERS' DEFICIT Common Stock - 1 Additional Contributed Capital 889 1,199 Treasury Stock, at Costs 251 - Net Deficiency of Assets at Spin-off 113 - Accumulated Other Comprehensive Loss 65 - Retained Earnings (Deficit) 444 - -------- -------- TOTAL SHAREHOLDERS' EQUITY (DEFICIT) 1,762 1,200 -------- -------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) $1,891 $4,611 ======== ======== A full-text copy of Solutia's Financial Projections is available for free at http://researcharchives.com/t/s?1faa About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia, Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- with its subsidiaries, make and sell a variety of high-performance chemical-based materials used in a broad range of consumer and industrial applications. Solutia has operations in Malaysia, China, Singapore, Belgium, Colombia and the United Kingdom. The Company filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., at Kirkland & Ellis. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. VIRGIN MEDIA: Turns Down BSkyB's Carriage Compromise Proposal ------------------------------------------------------------- Virgin Media Inc. has turned down a proposal of British Sky Broadcasting Group plc that would have restored BSkyB's basic channels to customers, published reports say. "Our new offer is that we simply split the difference between each party's last offer in respect of the carriage of our basic channels," BSkyB CEO James Murdoch wrote in a letter to Virgin Media CEO Steve Burch on May 10, 2007, quoted in reports. According to Mr. Murdoch in his second letter to Mr. Burch on May 18, 2007, Virgin Media has not come up with any alternative proposal or offer. "Disappointingly, we can only conclude that you are not genuinely interested in offering Sky's channels to your customers, preferring to continue to deny Sky access to your network as a means of pursuing wider corporate goals, simultaneously harming Sky commercially by denying us wholesale subscription and advertising revenues," Mr. Murdoch stated. However, Mr. Burch denied that Virgin Media has rejected negotiations. He emphasized that the company has always been open to a realistic offer from Sky, AFX News relates. Carriage Row Following the expiry of an agreement at the end of February 2007, Sky's basic channels ceased to be carried on Virgin Media's platform. As previously reported in the TCR-Europe on April 16, 2007, Virgin Media filed legal proceedings in the High Court aimed at resolving a dispute with British Sky over the withdrawal of the latter's "basic" channels from Virgin Media's TV service. The proceedings also seek a remedy for the onerous rates imposed by Sky for carriage of Virgin Media TV channels on Sky's own TV service. The proceedings are based on Section 18 of the U.K. Competition Act 1998 and Article 82 of the EC Treaty, both of which prohibit a company from abusing its dominant position. Sky, which accounts for almost 70% of the country's Pay TV subscribers, is dominant in the U.K. Pay TV market and has engaged in a strategy to stifle competition by using its dominance against Virgin Media. In January 2007, Virgin Media alleged that it was forced by Sky to accept a reduction of approximately 85% in the fees that it pays for Virgin Media TV channels such as Living, Bravo and Trouble, despite a 15% increase in the channels' popularity. In February 2007, Sky attempted to double the fees Virgin Media pays for retailing Sky's basic channels on the Virgin Media network, despite a reduction in the channels' popularity of about 20% over the last three years. Financial Impact Virgin Media's gross customer additions in the first quarter ended March 31, 2007, were 184,300, down from 213,500 in the fourth quarter, due to the loss of BSkyB's basic channels from our platform and to increased competitor activity. As a result of the Sky basics issue and also continuing pressure on telephony, Virgin Media expects negative customer, TV and telephony net additions in the second quarter. On the other hand, wholesale subscription revenue of BSkyB in the first quarter ended March 31, 2007, fell by 5% to GBP162 million and included the impact from the expiry (and non- renewal) of the contract to supply Sky's basic channels to Virgin Media part way through the quarter. Were Sky's basic channels to remain off Virgin Media's platform, the BSkyB estimates the impact of lower wholesale carriage fees and advertising revenues would adversely affect operating profit by GBP15 to GBP20 million in the year to June 30, 2007. About Virgin Media Headquartered in London, England, Virgin Media Inc. (fka NTL Inc.) (NASDAQ: VMED) -- http://virginmedia.com/-- provides broadband, digital television, telephony, content and communications services, reaching over 50% of the U.K. homes and 85% of the U.K. businesses. Virgin Media posted GBP120.3 million in net losses against GBP1 million in revenues for the first quarter ended March 31, 2007, compared with GBP119.9 million in net losses against GBP611.4 million in revenues for the same period in 2006. At March 31, 2007, Virgin Media's balance sheet showed GBP11 billion in total assets, GBP7.9 billion in total liabilities and GBP3.1 billion in total shareholders' equity. The Company's balance sheet at March 31, 2007, also showed strained liquidity with GBP988.9 million in total current assets available to pay GBP1.4 billion in total liabilities coming due within the next 12 months. * * * In connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa, the rating agency confirmed its Ba3 Corporate Family Rating for Virgin Media Inc. Moody's also assigned a Ba3 Probability-of-Default Rating to the company. As reported in the TCR-Europe on March 23, 2007, Standard & Poor's Ratings Services affirmed its 'BB-' senior secured debt rating and '1' recovery rating on Virgin Media Investment Holdings Ltd.'s GBP4.98 billion senior secured facilities. YELL GROUP: Earns GBP216.3 Million in Year Ended March 31, 2007 --------------------------------------------------------------- Yell Group plc released unaudited financial results for the year ended March 31, 2007. Yell reported GBP216.3 million in net profit against GBP2.1 billion in revenues for the year ended March 31, 2007, compared with GBP212.3 million in net profit against GBP1.6 billion in revenues for the same period in 2006. At March 31, 2007, the Group's balance sheet showed GBP6.4 billion in total assets, GBP5 billion in total liabilities, GBP1.4 billion in total shareholders' equity. "These are good results, with rapid growth in our U.K. and U.S. online businesses, demonstrating the continuing effectiveness of our channel-neutral approach," Yell Group Chief Executive Officer John Condron said. "We are in a strong position to deal with the challenges of the 2008 financial year, particularly in the U.S. where we are refocusing our sales effort on the heightened competition which we reported in April. In the U.K., we are taking full advantage of the opportunity to drive future volume growth as we begin marketing and selling under more even- handed regulation. Integration in Spain is progressing very well with a vigorous adoption of 'Back to Basics' in products and sales. We are confident that our Win, Keep and Grow strategy and the investment in our brands will drive continued profitable growth." "These results are in line with expectations and continue to demonstrate Yell's strong financial characteristics including good growth, high margins and strong cash generation. The 11.8% increase in the dividend is in line with underlying earnings growth and reflects our confidence in Yell's overall future financial performance in spite of increased competition in the US," Yell Group Chief Financial Officer John Davis said. Headquartered in Reading, England, Yell Group plc -- http://www.yellgroup.com/-- is an international directories business operating in the classified advertising market through printed, online, and phone media in the U.K. and the US. * * * As reported in the TCR-Europe on April 20, 2007, Moody's confirmed its Ba3 corporate family rating for Yell Group plc. It also assigned a B1 Probability-of-Default rating to the company. Standard & Poor's rates Yell's long-term foreign issuer credit and long-term local issuer credit at BB- with a stable outlook. ********* 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 US$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 Thursday's edition of the TCR. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com 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/booksto order any title today. ********* 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 -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Jazel P. Laureno, Julybien Atadero, Carmel Zamesa Paderog, Joy Agravante, Zora Jayda Zerrudo Sala, Kristina A. Godinez, and Pius Xerxes Tovilla, Editors. Copyright 2007. All rights reserved. ISSN 1529-2754. 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 Europe subscription rate is US$625 per half-year, delivered via e-mail. 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