/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/071017.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, October 17, 2007, Vol. 8, No. 206 Headlines A U S T R I A ANNO HOF: Claims Registration Period Ends Nov. 2 DRIKIC KEG: Claims Registration Period Ends Nov. 2 MAXI MARKETING: Claims Registration Period Ends Nov. 5 MAXIMILIAN - KINDERWELT: Claims Registration Period Ends Nov. 6 PRO PERSONALAGENTUR: Claims Registration Period Ends Nov. 1 STORM LLC: Estate Administrator Declares Insufficient Assets SYCOM LLC: Claims Registration Period Ends Nov. 6 B E L G I U M CARMEUSE GROUP: Inks Pact to Buy Oglebay Norton for US$520 Mln CARMEUSE HOLDING: Moody's May Cut Ba2 Rating After Review CARMEUSE HOLDING: Debt-Funded Purchase Cues S&P's Watch on BB+ LEVI STRAUSS: Fitch Rates US$750 Mil. Credit Facility at BB+ D E N M A R K NORTEL NETWORKS: Agrees to Pay US$35MM Penalty in SEC Settlement F I N L A N D ARROW ELECTRONICS: Finalizes Assurance Support Deal w/ Intel F R A N C E DELPHI CORP: To Sell Interiors & Closures Business for US$106MM EUROPCAR GROUPE: Moody's Cuts Corporate Family Rating to B1 ITRON INC: Provides Details on 2.50% Convertible Senior Notes REALOGY CORP: Hires Sherry Chris to Lead Better Homes Brand G E R M A N Y AHEAD ENTERTAINMENT: Claims Registration Period Ends Nov. 20 AUTO KORNTHEUER: Creditors Must File Claims by November 16 AZ-ZEITUNGSVERTRIEB: Claims Registration Ends Nov. 15 BAUUNTERNEHMUNG WOLFF: Claims Registration Ends November 12 BAZ ARMIERUNGSARBEITEN: Claims Registration Ends November 12 BETE & THIEDE: Claims Registration Period Ends Oct. 30 CAR-MEY AUTOMOBIL-SERVICE: Claims Registration Ends November 23 CHRYSLER LLC: Will Fund Employees' Health Trust With US$8.8 Bln ECKERT ELEKTRONIK: Claims Registration Period Ends Nov. 20 ESSER & CO: Creditors' Meeting Slated for Nov. 8 FA FIRST MEDICAL: Claims Registration Ends November 5 FLACHDACHBAU KIRCHHEIM: Claims Registration Period Ends Nov. 2 GISI-MOEBEL GMBH: Creditors Must File Claims by November 6 HOLM AUSSENHANDELS: Claims Registration Period Ends Nov. 19 HSK GMBH: Claims Registration Period Ends Oct. 31 KOELNER CLUB: Claims Registration Ends Nov. 13 MEGEMA GMBH: Creditors Must File Claims by November 16 MSS BAUSTOFFHANDEL: Claims Registration Period Ends Oct. 31 PRINT MEDIEN: Claims Registration Ends Nov. 15 W. HARR GMBH: Claims Registration Period Ends Nov. 16 I R E L A N D SANYO ELECTRIC: Kyocera Offers JPY70 Billion for Handset Unit SANYO ELECTRIC: S&P Revises Outlook on BB- Rating to Stable SANYO ELECTRIC: Reorganization May Do Ratings Good, Moody's Says I T A L Y FIAT SPA: Inks Cooperation Deal with Russia's Avtovaz K A Z A K H S T A N AIBOL-SYSTEM LLP: Proof of Claim Deadline Slated for November 21 ASTANA-JAGUAR LTD: Creditors Must File Claims November 21 BALMED LLP: Claims Filing Period Ends November 16 EML & K LLP: Creditors' Claims Due on November 16 LEGION LLP: Claims Registration Ends November 21 NUR-ALEM-S LLP: Proof of Claim Deadline Slated for November 21 TRI O: Creditors Must File Claims November 16 VALEV LLP: Claims Filing Period Ends November 16 K Y R G Y Z S T A N TURMUN TRADE: Proof of Claim Deadline Slated for November 21 N E T H E R L A N D S BAUSCH & LOMB: Inks Pact to Sell US$650 Million of 9.875% Notes YUKOS FINANCE: Dutch Court to Auction Transpetrol Stake ZINIFEX LTD: To Offer 69.5 Million Shares in Nyrstar IPO P O L A N D TOORA POLAND: Sovereign Capital Eyes Restructuring Plan P O R T U G A L HIPOTOTTA No 6: Moody's Junks EUR11.44 Million Class F Notes R U S S I A ATIS CJSC: Court Starts Competitive Bankruptcy Proceedings FAL'KON OJSC: Court Starts Competitive Bankruptcy Proceedings FIAT SPA: Inks Cooperation Deal with Russia's Avtovaz GOLD-BUSINESS CJSC: Creditors Must File Claims by Nov. 5 KARPILOVSKIJ KOLKHOZ: Creditors Must File Claims by Nov. 5 KORMOVISCHENSKIJ CJSC: Court Hearing Slated for Feb. 22, 2008 LYUBAVA-2 OJSC: Stock Sale Slated for November 13 PROMTEKS CJSC: Creditors Must File Claims by Nov. 5 PUDOZHSKIJ LLC: Court Names Kokotov A.R. as Liquitador RBC INFORMATION: Increasing Capital Needs Cue S&P's B+ Ratings RO ROSTOVOBLGASIFICATION: Creditors Must File Claims by Nov. 6 SECTORAL ENGINEERING: Creditors Must File Claims by Nov. 5 SPETSPOZHSTROY CJSC: Creditors Must File Claims by Nov. 6 TRANSPORTATION INVESTMENTS: Moody's Puts Ba3 Corp. Family Rating YUKOS OIL: Dutch Court to Auction Transpetrol Stake ZNAK-OIL LLC: Creditors Must File Claims by Nov. 6 S P A I N UTSTARCOM INC: Posts US$43 Million Net Loss in Third Qtr. 2007 S W I T Z E R L A N D BERGBAHNEN LUNGERN: Obwalden Court Closes Bankruptcy Proceedings COLUMBUS REISECLUB: Creditors' Liquidation Claims Due October 29 DR. H. SCHLEUSSNER: Creditors' Liquidation Claims Due Dec. 17 FIMS LLC: Aargau Court Starts Bankruptcy Proceedings HOTEL ENGEL: Obwalden Court Closes Bankruptcy Proceedings MCM MOUNTAIN: Creditors' Liquidation Claims Due October 25 MMB METALLBAU: Aargau Court Starts Bankruptcy Proceedings PORTANCE JSC: Creditors' Liquidation Claims Due October 25 RUBIN SPORT: Creditors' Liquidation Claims Due October 25 U K R A I N E ALM COMPANY: Creditors Must File Claims by October 18 IN SERVICE: Creditors Must File Claims by October 18 JOBBING TRADE: Creditors Must File Claims by October 18 LEX LTD: Creditors Must File Claims by October 18 MONOLIT CJSC: Creditors Must File Claims by October 18 NAFTOGAZ NJSC: Fitch Watches B+ Rating on Absent 2006 Financials NEW DEAL: Creditors Must File Claims by October 18 POLITECHCENTER LLC: Creditors Must File Claims by October 18 SYSTEMTECHNICS-2000: Creditors Must File Claims by October 18 TONUS PLUS: Creditors Must File Claims by October 18 VERKON LLC: Creditors Must File Claims by October 18 U N I T E D K I N G D O M ACTUANT CORP: Andrew Lampereur Adopts Prearranged Trading Plan AQUILO MANAGEMENT: Brings In Liquidators from KPMG ARDENT BUILDING: J. M. Titley Leads Liquidation Procedure COSTAIN GROUP: Arden Reaches Financial Close on Derby Project EXITECH LTD: Calls In Liquidators from PricewaterhouseCoopers FORD MOTOR: European Unit Sees 3.1% Sales Growth in September NORTHERN ROCK: Confirms Negotiations With Potential Bidders RANK GROUP: Profit Warning Cues Moody's to Cut Rating to B1 REFCO INC: Trusts Seek Return of US$400 Mln from Former Insiders REMY WORLDWIDE: Court Sets Plan Confirmation Hearing for Nov. 20 REMY WORLDWIDE: Wants Court to Approve CVC Settlement Agreement ********* ============= A U S T R I A ============= ANNO HOF: Claims Registration Period Ends Nov. 2 ------------------------------------------------ Creditors owed money by LLC Anno Hof Hotel (FN 203647g) have until Nov. 2 to file written proofs of claim to court-appointed estate administrator Georg Kahlig at: Dr. Georg Kahlig c/o Mag. Gerhard Stauder Siebensterngasse 42/3 1070 Vienna Austria Tel: 523 47 91-0 Fax: 523 47 91 33 E-mail: kahlig.partner@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Nov. 15 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 11 (Bankr. Case No. 5 S 110/07x). Gerhard Stauder represents Dr. Kahlig in the bankruptcy proceedings. DRIKIC KEG: Claims Registration Period Ends Nov. 2 -------------------------------------------------- Creditors owed money by KEG Drikic (FN 199005f) have until Nov. 2 to file written proofs of claim to court-appointed estate administrator Ulla Reisch at: Dr. Ulla Reisch Praterstrasse 62-64 1020 Vienna Austria Tel: 212 55 00 Fax: 212 55 00 5 E-mail: office.wien@ulsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Nov. 15 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 10 (Bankr. Case No. 5 S 108/07b). MAXI MARKETING: Claims Registration Period Ends Nov. 5 ------------------------------------------------------ Creditors owed money by LLC maxi marketing (FN 157127w) have until Nov. 5 to file written proofs of claim to court-appointed estate administrator Christiane Pirker at: Dr. Christiane Pirker Hasenhutgasse 9 Haus 3 1120 Vienna Austria Tel: 817 57 57 Fax: 817 57 57- 17 Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Nov. 19 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 11 (Bankr. Case No. 3 S 114/07w). MAXIMILIAN - KINDERWELT: Claims Registration Period Ends Nov. 6 --------------------------------------------------------------- Creditors owed money by LLC MAXIMILIAN - Kinderwelt Giesshuebl (FN 284278g) have until Nov. 6 to file written proofs of claim to court-appointed estate administrator Robert Igali-Igalffy at: Mag. Robert Igali-Igalffy Stojanstrasse 43 2344 Maria Enzersdorf am Gebirge Germany Tel: 02236/25138-20 Fax: 02236/25138-15 E-mail: igali-igalffy@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Nov. 20 for the examination of claims. The meeting of creditors will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in Giesshuebl bei Wien, Austria, the Debtor declared bankruptcy on Sept. 10 (Bankr. Case No. 11 S 90/07g). PRO PERSONALAGENTUR: Claims Registration Period Ends Nov. 1 ----------------------------------------------------------- Creditors owed money by LLC PRO Personalagentur (FN 281929b) have until Nov. 1 to file written proofs of claim to court- appointed estate administrator Guenther Hoedl at: Dr. Guenther Hoedl c/o Dr. Andrea Simma Schulerstrasse 18 1010 Vienna Austria Tel: 513 16 55 Fax: 513 16 55 33 E-mail: Hoedl@anwaltsteam.at RA_Simma@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Nov. 15 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 10 (Bankr. Case No. 6 S 115/07i). Andrea Simma represents Dr. Hoedl in the bankruptcy proceedings. STORM LLC: Estate Administrator Declares Insufficient Assets ------------------------------------------------------------ Dr. Brigitte Stampfer, the court-appointed estate administrator for LLC Storm (FN 246667x), declared Sept. 11 that the Debtor's property is insufficient to cover creditors' claim. The Trade Court of Vienna is yet to rule on the estate administrator's claim. Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Aug. 17 (Bankr. Case No. 5 S 101/07y). The estate administrator can be reached at: Dr. Brigitte Stampfer Stadlergasse 27 1130 Vienna Austria Tel: 877 33 30 Fax: 877 33 30 33 E-mail: ra-stampfer@utanet.at SYCOM LLC: Claims Registration Period Ends Nov. 6 ------------------------------------------------- Creditors owed money by LLC Sycom (FN 99579s) have until Nov. 6 to file written proofs of claim to court-appointed estate administrator Norbert Abel at: Mag. Norbert Abel Franz-Josefs-Kai 49/19 1010 Vienna Austria Tel: 533 52 72 Fax: 533 52 72 15 E-mail: office@abel-abel.at Creditors and other interested parties are encouraged to attend the creditors' meeting at noon on Nov. 20 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Moedling, Austria, the Debtor declared bankruptcy on Sept. 12 (Bankr. Case No. 6 S 116/07m). ============= B E L G I U M ============= CARMEUSE GROUP: Inks Pact to Buy Oglebay Norton for US$520 Mln -------------------------------------------------------------- Carmeuse North America, a wholly owned subsidiary of Carmeuse Group, and Oglebay Norton Company have entered into a definitive agreement under which Carmeuse will acquire all of the outstanding shares of Oglebay Norton for US$36.00 per share, or US$520 million, in cash. The transaction, which is expected to close by the end of the year, is subject to, among other things, the expiration or termination of the Hart-Scott-Rodino Act waiting period and approval by Oglebay Norton shareholders. The Special Committee of Oglebay Norton's Board of Directors has approved the merger agreement and unanimously recommends that all Oglebay Norton shareholders vote in favor of the transaction. The merger agreement contains a customary provision allowing the Oglebay Norton Board of Directors or the Special Committee to terminate the merger agreement in the event it receives another offer to purchase Oglebay Norton on terms more favorable to its shareholders than those contained in the merger agreement. "Oglebay Norton is a strong company with world-class assets and outstanding employees who we are proud to welcome to the Carmeuse family," said Thomas Buck, President and Chief Executive Officer of Carmeuse North America. "By combining the resources of our well-established companies, we will be better equipped to serve the needs of today's increasingly competitive and dynamic marketplace. This acquisition provides a high level of market diversity for Carmeuse. In particular, Oglebay Norton's considerable limestone business provides us with added resources to serve the rapidly growing Flue Gas Desulfurization (FGD) market, in which Carmeuse has a high level of technical expertise. We look forward to a quick completion of this transaction and to the seamless integration of our operations." "This transaction with Carmeuse provides meaningful and immediate cash value to all of our shareholders," said Michael Lundin, President and Chief Executive Officer of Oglebay Norton. "It is the culmination of the comprehensive strategic alternatives review process that was conducted by the Special Committee of our Board, together with the Company's financial and legal advisors, and validates our disciplined and deliberate approach to this process." "We are proud of the significant progress we have made at restructuring Oglebay Norton, enhancing the Company's financial flexibility and capitalizing on our strong competitive position in minerals and aggregates," added Mr. Lundin. "Carmeuse, a global leader in lime with a proven track record of success in acquiring and building companies, is the right partner for Oglebay Norton at the right time. We look forward to working closely with the Carmeuse team to deliver to our customers the many benefits inherent in this strategic combination. The ongoing efforts of our talented employees are key to Oglebay Norton's success. I thank them for their continued hard work and dedication." JPMorgan is serving as lead financial advisor and provided a fairness opinion to Oglebay Norton and Imperial Capital, LLC is serving as co-financial advisor. Jones Day is serving as legal counsel to Oglebay Norton and Porter Wright Morris & Arthur is serving as legal counsel to the Special Committee. KeyBanc Capital Markets is serving as financial advisor to Carmeuse, and Reed Smith LLP is serving as legal counsel. About Oglebay Norton Headquartered in Cleveland, Ohio, Oglebay Norton Company -- http://www.oglebaynorton.com/-- provides essential minerals and aggregates to a broad range of markets, from building materials and environmental remediation to energy and industrial applications. The Company and its debtor-affiliates filed for chapter 11 protection on Feb. 23, 2004 (Bankr. D. Del. Case Nos.04- 10559 through 04-10560). Daniel J. DeFranceschi, Esq., at Richards, Layton & Finger, represented the Debtors in their restructuring efforts. When the Debtor filed for protection from its creditors, it listed US$650,307,959 in total assets and US$561,274,523 in total debts. The company emerged from bankruptcy protection on Jan. 31, 2005, pursuant to a plan of reorganization approved by the U.S. Bankruptcy Court for the District of Delaware on Nov. 17, 2004. About Carmeuse North America Based in Pittsburgh, Pennsylvania, Carmeuse North America -- http://www.carmeusena.com/-- is the largest producer of lime and limestone products in North America, manufacturing and distributing over 6 million tons per year of lime products, and a further 4 million tons of chemical grade limestone and aggregates. Its 14 manufacturing facilities supply and serve 27 states and provinces in the eastern USA and Canada, and employ over 1,200 employees. About Carmeuse Group The Carmeuse Group -- http://www.carmeuse.com/-- is a leading global producer of lime, with more than 140 years of experience in the extraction and processing of high calcium limestone and dolomitic stone into lime and lime-related products for industrial and commercial customers. Lime is used in multiple aspects of our everyday life (steel, construction, agro-food, paper, chemicals, plastics, carpets, paints, pollution control, water treatment, among others. Carmeuse is present in about 70 locations across Western Europe (in Italy, Belgium, France and the Netherlands), Central and Eastern Europe (Slovakia, the Czech Republic, Hungary, Romania and Turkey) and North America (the United States and Canada) and Africa (Ghana). Total consolidated group net turnover amounted to EUR940 million in 2006. CARMEUSE HOLDING: Moody's May Cut Ba2 Rating After Review --------------------------------------------------------- Moody's Investors Services placed the Ba2 Corporate Family Rating and Outlook of Carmeuse under review for possible downgrade and reassigned the rating to Carmeuse Holding SA following the merger of LVI Holding NV into Carmeuse Holding SA with retroactive effect as of Jan. 1, 2007. The review has been prompted by Carmeuse's announcement on Oct. 12, 2007 that the group's offer to acquire Oglebay Norton Company (OGBY.PK) has been retained by the management board of the target company. The acquisition will be presented and recommended by the board of the target company to its shareholder's on Nov. 13, 2007. The transaction is expected to close before the end of the year and is also subject to approvals under the Hart-Scott-Rodino Act, which is expected to last thirty days and be obtained prior to the shareholder's meeting. The acquisition offer of Carmeuse Group values Oglebay Norton Company at approximately EUR500 million (US$700 million) including the refinancing of Oglebay Norton Company's financial debt. Carmeuse has secured EUR850 million of credit facilities on top of its EUR250 million senior floating rate notes maturing in 2014. The acquisition of Oglebay Norton Company is expected to increase Total Adjusted Debt/Adjusted EBITDA to approximately 3.8x on a pro-forma basis (post redemption of EUR175 million notes). The review will focus on the implications of this acquisition on Carmeuse's business and financial profile as well as on the group's ability to deleverage the financial structure within an appropriate time horizon through improved operating cash flow generation and potential asset disposals. Moody's anticipates that any rating downgrade would be limited to one-notch. These ratings are affected by the press release: -- Carmeuse Holding SA -- Ba2 Corporate Family Rating/Ba2 Probability of Default Rating -- Calcipar SA -- Ba2/LGD4 rating on Senior Unsecured Notes Carmeuse Holding SA is the holding company for the Carmeuse Group. Carmeuse is one of the world's leading producers of lime and lime-related products enjoying leading positions in a number of European markets and a number one position in North America which has been recently strengthened. The company operates in a relatively concentrated industry with only a handful of large players globally, while its operations are subject to licenses and are difficult to replicate. Carmeuse reported EUR939 million in revenues in 2006. CARMEUSE HOLDING: Debt-Funded Purchase Cues S&P's Watch on BB+ -------------------------------------------------------------- Standard & Poor's Ratings Services put its 'BB+' long-term corporate credit rating on Carmeuse Holding S.A., the holding company of Carmeuse Group, on CreditWatch with negative implications, following the announced debt-financed acquisition of Oglebay Norton Co. (B/Watch Pos/--). Carmeuse, headquartered in Belgium, is the second-largest lime producer in the world with 2006 sales of about EUR1 billion. "The CreditWatch placement of Carmeuse reflects our expectation that leverage and cash flow metrics could weaken materially and for a prolonged period of time, with a doubling in debt from EUR450 million at June 30, 2007," said Standard & Poor's credit analyst Lucas Sevenin. S&P expects the acquisition's impact on business risk to be broadly neutral. Although Carmeuse had leeway for medium-sized debt-funded acquisitions for the current rating, we expect key credit metrics to decline materially with this transaction. Assuming it proceeds, FFO to adjusted debt would rise from more than 30% in 2006 to less than 20% in 2007, compared with the 25% needed for the current rating. The group's ability to improve its financials will depend primarily on asset sales, since we do not expect positive free operating cash flow in 2008 and 2009, given significant capital expenditure for growth. S&P views this move as globally neutral for business risk. Although the acquisition will give Carmeuse North America--the group's key EBITDA contributor--access to substantial limestone reserves, the subsidiary already had long-term access to reserves. Oglebay is also reliant on currently good but cyclical markets, notably steel and oil and gas. However, this move somewhat lowers reliance on the steel market. The transaction is subject to review by antitrust authorities, the absence of new bidders, and the approval of shareholders (who are expected to vote in November). "We aim to resolve the CreditWatch in the next few weeks, when the transaction is finalized and we have a clearer view of the group's strategy and commitment to improve financials. We expect any downgrade to be limited to one notch," said Mr. Sevenin. The current ratings on Carmeuse are constrained by its sensitivity to cyclical and mature markets such as steel--the main end-market, with 47% of 2006 sales-�and paper, which continue to make up most of group sales. The ratings also reflect Carmeuse's improved cash flow ratios, and continuing good EBITDA margin performance across units despite high energy and transportation costs--notably thanks to contractual pass-on clauses. LEVI STRAUSS: Fitch Rates US$750 Mil. Credit Facility at BB+ ------------------------------------------------------------ Fitch Ratings assigned a 'BB+' rating to Levi Strauss & Co's second amended and restatedUS$750 million 5-year Asset-Based Revolving Credit Facility. The rating outlook is stable. Fitch currently rates LS&CO as: -- Issuer Default Rating (IDR) 'BB-'; -- Bank Credit Facility 'BB+'; -- Senior Unsecured Notes 'BB-'; This rating action follows the company's announcement that it has entered into an amended credit agreement which increases the maximum size toUS$750 million fromUS$550 million. The facility includes aUS$250 million term loan tranche priced at LIBOR + 250 basis points. The remaining revolving credit tranche has an initial price of LIBOR + 150bps. The entire facility will be secured by, among other domestic assets, certain U.S. trademarks associated with the Levi's' brand. Availability will not be reduced by repayments on the term loan tranche. The lien on the trademarks will be released when the term loan tranche is fully repaid. On Oct. 11, 2007, the company drewUS$343.2 million under the amended credit facility and usedUS$220 million from cash on hand to purchase the tendered 12.25% senior unsecured notes due December 2012, in connection with its cash tender offer. The rating reflects the improvements made to stabilize LS&CO's operations and operating margins as well as its well known brand names, geographic diversity and good liquidity position. The rating also considers the company's high debt balances and the competitive operating environment of the denim and casual bottoms market. LS&CO should continue to benefit from its improved cost structure and brand investments despite challenges in the U.S. Levi Strauss Signature brand, which represented less than 8% of fiscal 2006 revenues and fewer than 4% of operating income before corporate expenses. In addition, Fitch expects that management will remain committed to its plan to reduce debt and interest costs over time. ============= D E N M A R K ============= NORTEL NETWORKS: Agrees to Pay US$35MM Penalty in SEC Settlement ---------------------------------------------------------------- Nortel Networks Corp. disclosed Monday that it and its principal operating subsidiary, Nortel Networks Limited, reached a settlement on all issues with the United States Securities and Exchange Commission in connection with the SEC's investigation of certain prior accounting practices at Nortel. To bring closure to the matter, Nortel agreed to pay a civil penalty ofUS$35 million and consented to injunctions against it from violations of certain provisions of federal securities laws. Further, Nortel will provide to the SEC quarterly written reports detailing its progress in implementing its remediation plan and actions to address its outstanding material weakness in internal controls. This is the latest in a series of check points in Nortel's turn around, including settlement with the Ontario Securities Commission, the resolution of the shareholder class actions and remediation of four of the previous five material weaknesses, that enable the company to focus on the future. "We are pleased that we have reached final resolution in this matter. The settlement recognizes the extensive and proactive efforts made by Nortel's Board and senior management to identify and address the accounting and internal control issues and conduct that led to the investigation," said Nortel president and chief executive officer Mike Zafirovski. "Through hard work, a dedication to excellence and an unwavering commitment to serving our customers, Nortel is recreating a great technology company which upholds the highest ethical standards and sound business practices. This is a new Nortel." The SEC recognized that Nortel's Audit Committee, on its own initiative, conducted extensive internal independent investigations and self-reported to the SEC and other regulators, and that the Audit Committee and senior management fully cooperated during the investigation and took prompt and meaningful action to correct the issues and restore the company to sound governance and financial practices. Some of the actions undertaken by Nortel include: the appointment of a new team of senior leaders with a proven track record of integrity and business leadership; extensive efforts to significantly improve financial processes and controls; a restructured ethics policy; and the establishment of a new code of conduct. About Nortel Networks Headquartered in Ontario, Canada, Nortel Networks Corporation (NYSE/TSX: NT) -- http://www.nortel.com/-- delivers next- generation technologies, for both service provider and enterprise networks, support multimedia and business-critical applications. Nortel's technologies are designed to help eliminate today's barriers to efficiency, speed and performance by simplifying networks and connecting people to the information they need, when they need it. Nortel does business in more than 150 countries around the world including Indonesia, the United Kingdom, Denmark, Russia, Norway, Australia, Brazil, China, Singapore, among others. Nortel Networks Limited is the principal direct operating subsidiary of Nortel Networks Corporation. * * * Nortel Networks Corp. still carries Moody's Investors Service 'B3' Senior Unsecured Debt rating which was placed on March 22, 2007. ============= F I N L A N D ============= ARROW ELECTRONICS: Finalizes Assurance Support Deal w/ Intel ------------------------------------------------------------ Arrow Electronics, Inc. and Intel Corporation have finalized an agreement in which Arrow will provide global supply assurance support for a broad range of embedded controller products recently discontinued by Intel. The supply assurance program was developed in response to the number of customers who were affected by this change in product status. The agreement covers over 250 individual part numbers, including the ubiquitous 80C51 family as well as product families that include the 80C188, 80C186, 80960, 80386, and 80486. Automotive Controller Area Network controllers were also included in the agreement. "This is a tremendous opportunity for Arrow to deliver on our commitment of long-term support to the embedded customer by leveraging our demonstrated expertise in supply assurance programs and end-of-life products," said Robert Behn, vice president of marketing for embedded computing at Arrow. Customers interested in learning how they can obtain long-life support for their embedded Intel controllers should contact their local Arrow representative, Mr. Behn said. About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics -- http://www.arrow.com/-- provides products, services and solutions to industrial and commercial users of electronic components and computer products. Arrow serves as a supply channel partner for nearly 600 suppliers and more than 130,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of over 270 locations in 53 countries and territories. The company operates in France, Spain, Portugal, Denmark, Estonia, Finland, Ireland, Latvia, Lithuania, Norway, Sweden, Italy, Germany, Austria, Switzerland, Belgium, the Netherlands, United Kingdom, Argentina, Brazil, Mexico, Australia, China, Hong Kong, Korea, Philippines and Singapore. On March 29, 2007, Moody's Investors Service affirmed the (P)Ba1, (P)Ba2 and (P)Baa3 Shelf Registration Ratings to Arrow Electronics, Inc.'s subordinated, preferred, and senior unsecured stocks respectively. Moody's also affirmed the Baa3 senior long-term debt rating of Arrow Electronics and revised the outlook to positive from stable. =========== F R A N C E =========== DELPHI CORP: To Sell Interiors & Closures Business for US$106MM --------------------------------------------------------------- Delphi Corporation has entered into a master sale and purchase agreement with a wholly owned subsidiary of The Renco Group, Inc. for the sale of its global Interiors and Closures business. The agreement has been approved by Delphi's Board of Directors. The agreement contemplates a global divestiture of Delphi's Interiors and Closures Businesses for a purchase price of US$106,000,000, which is comprised of the preliminary purchase price of approximately US$80,000,000, subject to certain adjustments, and the Post-Closing Payments of approximately US$26,000,000. Pursuant to the procedures outlined in the Bankruptcy Code, Delphi filed a motion with the U.S. Bankruptcy Court for the Southern District of New York to request a bidding procedures hearing on October 25, 2007. Following the completion of the bidding procedure process, a final sale hearing is anticipated to be set for January 8, 2008. The final sale of Delphi's Interiors and Closures business is subject to the approval of the U.S. Bankruptcy Court and other constituencies in the U.S. and abroad. As outlined in the court filing, the master sale and purchase agreement involves the entire global Interiors and Closures business line, including: book of business, manufacturing operations, intellectual property, personnel, supplier contracts and share of joint ventures. Delphi's Interiors and Closures business operates manufacturing facilities in: -- Gadsden, Alabama -- Cottondale, Alabama -- North Kansas City, Missouri -- Orion, Michigan -- Adrian, Michigan -- Woerth, Germany -- Matamoros, Mexico -- SDADS Joint Venture (Shanghai, China) -- KDS Joint Venture (Daegu, Korea) -- Other contracted manufacturing locations About Delphi Headquartered in Troy, Mich., Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single 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. 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 Mar. 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. (Delphi Bankruptcy News, Issue No. 88 Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) EUROPCAR GROUPE: Moody's Cuts Corporate Family Rating to B1 ----------------------------------------------------------- Moody's Investors Service downgraded the Corporate Family Rating of Europcar Groupe S.A. to B1 from Ba3, as well as the rating of the company's subordinated secured notes to B2 from B1 and the rating of its senior subordinated notes to B3 from B2. The rating outlook is now stable. "Today's downgrade reflects Moody's revised expectation that Europcar will not now achieve -- over the next 12 to 18 months -- the thresholds necessary in order for it to maintain a stable rating outlook in the Ba3 rating category as communicated in Moody's last rating action, notably an improvement of EBITA to Interest Coverage above 1.5x," says Christian Hendker, Moody's Lead Analyst for Europcar. "Europcar's Ba3 rating had incorporated Moody's expectation of consistent improvement in operating performance and credit metrics following the debt- financed acquisition of Vanguard. "While the company has made progress in improving its overall profitability levels, these were not sufficient to indicate a trend towards the levels originally expected by Moody's for the Ba3 rating. In particular, rising fleet holding costs have absorbed the cost savings in fleet management and overhead, and a step-up in interest costs -- out of total financial debt of EUR3.6 billion in June 2007, almost one third is unhedged floating rate exposure -- has squeezed interest coverage to the 1.1-times level which was one of the key drivers for the rating downgrade. Given the potential for further interest rate rises and Europcar's high exposure to effects, additional cost saving measures may become necessary, as a pass-on to customers is challenging in the very competitive car rental market." Mr. Hendker continues. Europcar is currently weakly positioned in the B1 rating category, evidenced by the EBITA-to-Interest Cover Ratio of 1.1x in the last 12 months ended June 2007 and the limited perspective of positive free cash flows given the rising interest costs and the group's constant fleet expansion to support its growth targets. However, the stable rating outlook incorporates Moody's expectation that Europcar will continue to improve its operating profitability with interest cover moving towards the 1.5 times level during the course of 2008 -- and beyond -- by realizing cost reduction measures, generating the benefits of the recent acquisitions of PremierFirst and Betacar but also by a successful pricing management and good fleet utilization levels. The stable outlook also anticipates that Europcar preserves its good financial flexibility, in particular its access to appropriate asset-based lending facilities to finance its fleet purchases and pursues no additional sizeable acquisitions. The ratings could come under additional downward rating pressure within 12 to 18 months: (1) if the company's credit metrics fall instead of rise -- indicated for instance by a decline in RCF to Net Debt towards 10% and EBITA to Interest Expenses below 1.1x; (2) should the financial flexibility of the company weaken with regard to access to asset-back financing or credit lines. Upwards rating pressure could develop, once the company has restored its credit metrics, namely by improving RCF to Net Debt towards 15% and EBITA to Interest Expenses to above 1.5x. Europcar's B1 Corporate Family Rating reflects: (1) the company's strong brand and market position in the key European rental car markets based on a balanced level of segmental diversification in the business, private and replacement market segments; (2) a solid degree of regional diversification enhanced by stable earning contributions from its global franchise network; (3) relatively stable operating performance levels through the cycle, and margin protection from residual value risks of purchased cars due to a substantial degree of buyback agreements; (4) a significant degree of cost structure flexibility thanks to rapid vehicle turnover rates allowing for continuous fleet size adjustments, which also ensures a continuous debt repayment ability; and (5) the relatively sound financial profiles of the majority of Europcar's diversified car supplier base, which ensures stability for fleet purchase conditions and buyback agreements. However, the ratings also reflect these challenges: (1) Europcar's limited absolute scale; (2) its relatively weak debt protection measures; (3) its high exposure to rising interest rates; (4) the prospect of increasing debt levels in line with a further expansion of the fleet size; and (5) fleet purchase conditions that may be burdened by a need to further diversify fleet composition and the recent plans of some volume manufacturers to cut back their sales to rental car companies -- a less profitable sales channel for OEMs than sales to private customers. These ratings were affected by today's rating action: -- Corporate Family Rating downgraded to B1 from Ba3; -- Probability of Default Rating, downgraded to B1 from Ba3; -- EUR430 million senior subordinated secured Floating Rate Notes, downgraded to B2 from B1 (Loss Given Default Assessment: LGD 4, 69%); -- EUR375 million senior subordinated unsecured notes, downgraded to B3 from B2 (LGD 6, 93%). The last rating action was on Feb. 23, 2007, when Moody's confirmed Europcar's ratings with a negative outlook following the regulatory approval for the acquisition of Vanguard Europe. Headquartered in Paris, France, Europcar is one of the leading European rental car companies with reported sales of EUR1.5 billion in 2006. ITRON INC: Provides Details on 2.50% Convertible Senior Notes ------------------------------------------------------------- Itron Inc. has disclosed information regarding its 2.50% Convertible Senior Subordinated Notes Due 2026. According to their terms, the Notes are convertible into cash and common stock when the closing price of Itron common stock exceeds US$78.19, which is one hundred and twenty percent (120%) of the conversion price of US$65.16, for 20 or more trading days in a period of 30 consecutive trading days prior to the end of a quarter. The Notes may be surrendered for conversion during any business day prior to the last trading day of the quarter ended Dec. 31, 2007. The conversion feature became effective Oct. 1, 2007. In order to convert the Notes, a Holder must: (1) complete and sign the Conversion Notice, with appropriate signature guarantee, on the back of the Note, (2) surrender the Notes to a Conversion Agent, (3) furnish appropriate endorsements and transfer documents if required by the Registrar or Conversion Agent, (4) pay the amount of interest, if any, the Holder must pay as described below, and (5) pay any tax or duty if required pursuant to the Indenture. A Holder may convert a portion of a Note if the portion is US$1,000 principal amount or an integral multiple of US$1,000 principal amount. If a Holder surrenders a Note for a conversion after the close of business on the record date for the payment of an installment of interest and prior to the related interest payment date, such Security, when surrendered for conversion, must be accompanied by payment of an amount equal to the interest thereon which the registered Holder at the close of business on such record date is to receive (other than overdue interest, if any, that has accrued on such Note). The Conversion Agent is located at: Deutsche Bank Trust Company Americas Attn: Trust & Securities Services 60 Wall Street, 27th Floor Mail Stop: NYC60-2710 New York, NY 10005 The company believes it is highly unlikely that holders would choose to convert the Notes because the market value of the Notes exceeds the amount that holders would receive upon conversion. About Itron Inc. Headquartered in Liberty Lake, Washington, Itron Inc. (NASDAQ: ITRI) -- http://www.itron.com/-- operates in two divisions: as Itron in North America and as Actaris outside of North America. The company provides metering, data collection and software solutions, with nearly 8,000 utilities worldwide relying on its technology to optimize the delivery and use of energy and water. Itron maintains operations in Canada, Qatar, Mexico, Taiwan, France, Australia, The Netherlands, and the United Kingdom. * * * Itron Inc. carries to date Standard & Poor's Ratings Services' B+ corporate credit rating. REALOGY CORP: Hires Sherry Chris to Lead Better Homes Brand ----------------------------------------------------------- Realogy Corporation has appointed Sherry Chris as president and CEO of the Better Homes and Gardens Real Estate brand. This news builds on Realogy's announcement that the company had entered into a long-term licensing agreement with Meredith Corporation to build a new, international residential real estate franchise company under the Better Homes and Gardens Real Estate brand. The new brand will launch in the residential real estate marketplace in July 2008. Ms. Chris will be responsible for directing the platform, growth and development of this new franchise system. With more than 25 years of real estate sales, management and executive experience, Ms. Chris most recently served as chief operating officer for Coldwell Banker Real Estate LLC. Ms. Chris will report to Alex Perriello, president and CEO of the Realogy Franchise Group. "Sherry is an exceptional real estate executive and business leader, and I am pleased to have her energetic presence at the helm as we embark upon this exciting opportunity," said Mr. Perriello. "We look forward to building and operating a new world-class franchise system that will add significant value to those residential real estate brokerage firms that will become franchisees of Better Homes and Gardens Real Estate." "This will be a brand that embodies the future of the real estate industry while grounded in the tradition of the home," said Ms. Chris. "The opportunity is tremendous. Better Homes and Gardens has a multi-media consumer brand presence that already exists in millions of households. Meanwhile, we have the rare opportunity to build a new system from the ground up by leveraging our expertise in real estate while benefiting from the full support of Realogy and all of its resources." Among the top priorities for the new brand during the next nine months will be the development of a platform that incorporates the best information technologies for both consumers and the real estate professionals who affiliate with the brand. Ms. Chris plans to develop a new media-rich Web site that will provide engaging and interactive content for a customer-base now highly adept at using the Internet for its real estate needs. "We will build the Better Homes and Gardens Real Estate brand with an eye on innovation and a respect for tradition," said Ms. Chris. "Our innovation will be reflected in a contemporary, high-quality service offering that addresses the needs of today's consumer while providing franchisees with significant competitive advantages. As for tradition, the brand will exemplify a full-service approach to the business that fosters personal relationships to meet the needs of every generation of homebuyers and sellers." Previously, Ms. Chris served Coldwell Banker Real Estate LLC as its chief operating officer beginning December 2006. In her capacity as COO, Chris directed the company's operations, education, mortgage and field services programs. She also focused on communication between Coldwell Banker(R) corporate headquarters, regional offices and its nearly 4,000-office affiliate network around the world. Ms. Chris began her real estate career in 1980 holding positions of increasing responsibility at several leading Canadian and U.S. real estate companies including, Royal LePage Real Estate Services, Ltd., Real Living and Prudential California Realty. Well known in the real estate industry, Ms. Chris is currently on the advisory board of several prominent organizations including Trulia.com and Google Real Estate. She has served as chairman of the board of the Realty Alliance and also speaks frequently at prominent industry events. Ms. Chris earned her undergraduate and MBA degrees from the University of Western Ontario. About Realogy Corp. Headquartered in Parsippany, N.J., Realogy Corporation (NYSE: H)-- http://www.realogy.com/-- is real estate franchisor and a member of the S&P 500. The company has a diversified business model that also includes real estate brokerage, relocation, and title services. Realogy's world-renowned brands and business units include CENTURY 21(R), Coldwell Banker(R), Coldwell Banker Commercial(R), ERA(R), Sotheby's International Realty(R), NRT Incorporated, Cartus, and Title Resource Group. Realogy has more than 15,000 employees worldwide. The company operates in Australia, Brazil and France. * * * As reported in the Troubled Company Reporter-Latin America on July 13, 2007, Standard & Poor's Ratings Services lowered and removed from CreditWatch Negative its issue-level rating on Realogy Corp.'s previously senior unsecured notes that were part of the company's capital structure prior to the April 2007 going private acquisition of the company by Apollo Management L.P. ============= G E R M A N Y ============= AHEAD ENTERTAINMENT: Claims Registration Period Ends Nov. 20 ------------------------------------------------------------ Creditors of AHEAD Entertainment Software GmbH have until Nov. 20 to register their claims with court-appointed insolvency manager Rainer Michael Bahr. Creditors and other interested parties are encouraged to attend the meeting at 2:15 p.m. on Dec. 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 Hannover Hall 226 Second Upper Floor Service Bldg. Hamburger Allee 26 30161 Hannover 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: Rainer Michael Bahr Prinzenstr. 14 30159 Hannover Germany Tel: 0511 8503058-0 Fax: 0511 8503058-8 The District Court of Hannover opened bankruptcy proceedings against AHEAD Entertainment Software GmbH on Sept. 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AHEAD Entertainment Software GmbH Attn: Lars Martensen, Manager Boedekerstr. 84 30131 Hannover Germany AUTO KORNTHEUER: Creditors Must File Claims by November 16 ---------------------------------------------------------- Creditors of Auto Korntheuer GmbH have until Nov. 16 to register their claims with court-appointed insolvency manager Nikolaus Gaede. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Dec. 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 Augsburg Meeting Hall 162 Alten 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: Nikolaus Gaede Brienner Str. 55 80333 Munich Germany The District Court of Augsburg opened bankruptcy proceedings against Auto Korntheuer GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Auto Korntheuer GmbH Hunnenstr. 27 86343 Koenigsbrunn Germany AZ-ZEITUNGSVERTRIEB: Claims Registration Ends Nov. 15 ----------------------------------------------------- Creditors of AZ-Zeitungsvertrieb GmbH have until Nov. 15 to register their claims with court-appointed insolvency manager Diana Aurich. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.m. on Dec. 6, 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 Offenbach am Main Hall 162N First Floor Kaiserstrasse 63065 Offenbach am 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: Diana Aurich Wilhelmstrasse 11 63225 Langen Germany Tel: 06103-8044298 Fax: 06103-8044335 The District Court of Offenbach am Main opened bankruptcy proceedings against AZ-Zeitungsvertrieb GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AZ-Zeitungsvertrieb GmbH Attn: Karlheinz Stornfels, Manager Robert-Bosch-Str. 13 63225 Langen Germany BAUUNTERNEHMUNG WOLFF: Claims Registration Ends November 12 ----------------------------------------------------------- Creditors of Bauunternehmung Wolff & Skobel GmbH have until Nov. 12 to register their claims with court-appointed insolvency manager Frank Kebekus. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Dec. 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 Aachen Meeting Hall K 5 Third Floor Alter Posthof 1 52062 Aachen 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. Frank Kebekus Frankenstrasse 14-16 52070 Aachen Germany Tel: 0241/5591310 Fax: 0241/55913120 E-mail: chemnitz@hww-kanzlei.de The District Court of Aachen opened bankruptcy proceedings against Bauunternehmung Wolff & Skobel GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bauunternehmung Wolff & Skobel GmbH Attn: Hans Gerd Wolff, Manager Bretzelbackerstrasse 8 52428 Julich Germany BAZ ARMIERUNGSARBEITEN: Claims Registration Ends November 12 ------------------------------------------------------------ Creditors of BAZ Armierungsarbeiten GmbH have until Nov. 12 to register their claims with court-appointed insolvency manager Steffi Radack-Mueller. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Dec. 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 Potsdam Hall 301 Third Floor Nebenstelle Lindenstrasse 6 14467 Potsdam 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: Steffi Radack-Mueller Franzosische Strasse 9-12 10117 Berlin Germany The District Court of Potsdam opened bankruptcy proceedings against BAZ Armierungsarbeiten GmbH on Sept. 28. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BAZ Armierungsarbeiten GmbH Attn: Heidemarie Zahle and Hans Becker, Managers Drewitzer Strasse 41 14478 Potsdam Germany BETE & THIEDE: Claims Registration Period Ends Oct. 30 ------------------------------------------------------ Creditors of B & T Handelskontor - Bete & Thiede GmbH have until Oct. 30 to register their claims with court-appointed insolvency manager Joern Weitzmann. Creditors and other interested parties are encouraged to attend the meeting at 10:55 a.m. on Nov. 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 Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. 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: Joern Weitzmann Arnold-Heise-Strasse 9 20249 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against B & T Handelskontor - Bete & Thiede GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: B & T Handelskontor - Bete & Thiede GmbH Attn: Klaus Bete, Manager Bahrenfelder Marktplatz 3 22761 Hamburg Germany CAR-MEY AUTOMOBIL-SERVICE: Claims Registration Ends November 23 --------------------------------------------------------------- Creditors of Car-Mey Automobil-Service GmbH have until Nov. 23 to register their claims with court-appointed insolvency manager Frank-M. Rhode. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.m. on Dec. 14, 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 Syke Hall 112 Hauptstr. 5A 28857 Syke 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: Frank-M. Rhode Graf-Moltke-Str. 62 28211 Bremen Germany Tel: 0421 / 34 85 20 Fax: 0421/ 34 10 78 The District Court of Syke opened bankruptcy proceedings against Car-Mey Automobil-Service GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Car-Mey Automobil-Service GmbH Attn: Heinrich Meyer, Manager Hagenburger Str. 7 31547 Rehburg-Loccum Germany CHRYSLER LLC: Will Fund Employees' Health Trust With US$8.8 Bln --------------------------------------------------------------- Chrysler LLC is obliged to contribute US$8.8 billion to a voluntary employees' beneficiary association, or VEBA fund, that the union will use to cover the costs of retiree health care after 2010, when the fund becomes operational, under the newly ratified contract between the carmaker and the United Auto Workers union, Josee Valcourt and Neal E. Boudette report for the Wall Street Journal. Chrysler will also pay US$1.5 billion to cover the costs of retiree health care between now and 2010, according to a 24-page summary of the contract that was distributed to union officials on Monday, WSJ notes. Chrysler will be allowed to hire new workers for certain "noncore" jobs at wages well below those it pays existing union employees, the contract states. New, noncore hires will earn between US$14 and US$16.23 an hour, compared to US$28 to US$32.52 an hour for current workers, WSJ says. The contractual terms between the two parties were patterned after General Motors Corp.'s new contract with the UAW. GM has promised to save jobs by keeping its plants running even after its contract with the UAW expires. Chrysler, on the other hand, does not guarantee that most of its eight assembly U.S. plants will remain open beyond the four years covered by its contract, WSJ reveals. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- 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 company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. Chrysler LLC 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. * * * The TCR-Europe reported on Aug. 8, 2007, that Moody's Investors Service has affirmed Chrysler Automotive LLC's B3 Corporate Family Rating, and the Caa1 (LGD4, 66) rating of the company's US$2 billion senior secured, second lien term loan in connection with Monday's closing of Daimler Chrysler AG's sale of a majority interest of Chrysler Group to Cerberus Capital Management LLC. ECKERT ELEKTRONIK: Claims Registration Period Ends Nov. 20 ---------------------------------------------------------- Creditors of Eckert Elektronik GmbH have until Nov. 20 to register their claims with court-appointed insolvency manager Albert Hirt. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Dec. 11, 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 Rottweil Room 0.05 Branch Office Koernerstr. 29 Rottweil 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: Albert Hirt Berner Feld 74 78628 Rottweil Germany Tel: 0741/1754050 Fax: 0741/1754020 The District Court of Rottweil opened bankruptcy proceedings against Eckert Elektronik GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Eckert Elektronik GmbH Attn: Dietrich Eckert, Manager Grosswiesenstr. 20 78591 Durchhausen Germany ESSER & CO: Creditors' Meeting Slated for Nov. 8 ------------------------------------------------ The court-appointed insolvency manager for Esser & Co. Saar GmbH, Udo Groener will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:25 a.m. on Nov. 8. The meeting of creditors and other interested parties will be held at: The District Court of Saarbruecken Area Hall 13 First Floor Vopeliusstrasse 2 66280 Sulzbach Germany The Court will also verify the claims set out in the insolvency manager's report at 10:30 a.m. on Dec. 13 at the same venue. Creditors have until Nov. 15 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Udo Groener Faktoreistrasse 4 66111 Saarbruecken Germany Tel: 0681/41010 Fax: 0681/4101 276 The District Court of Saarbruecken opened bankruptcy proceedings against Esser & Co. Saar GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Esser & Co. Saar GmbH Lise-Meitner-Weg 1-3 66271 Rilchingen-Hanweiler Germany FA FIRST MEDICAL: Claims Registration Ends November 5 ----------------------------------------------------- Creditors of Fa. first medical productions Geschaftsfuehrungs- und Verwaltungs-GmbH have until Nov. 5 to register their claims with court-appointed insolvency manager Carsten Morgenstern. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Dec. 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 Chemnitz Hall 28 Fuerstenstrasse 21 Chemnitz 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: Carsten Morgenstern Michaelstrasse 71 09116 Chemnitz Germany Tel: (0371) 381770 Telefax: (0371) 3817730 E-mail: chemnitz@hww-kanzlei.de The District Court of Chemnitz opened bankruptcy proceedings against Fa. first medical productions Geschaftsfuehrungs- und Verwaltungs-GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Fa. first medical productions Geschaftsfuehrungs- und Verwaltungs-GmbH Attn: Dr. Bernd Ernst Maier, Manager Goethestr. 7 09119 Chemnitz Germany FLACHDACHBAU KIRCHHEIM: Claims Registration Period Ends Nov. 2 -------------------------------------------------------------- Creditors of Flachdachbau Kirchheim GmbH have until Nov. 2 to register their claims with court-appointed insolvency manager Martin Wagner. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Dec. 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 Ludwigsburg Hall 2008 Palace Schuetz Schorndorfer Str. 28 Ludwigsburg 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: Martin Wagner Heilbronner Str. 86 70194 Stuttgart Germany Tel: 0711/259729-0 The District Court of Ludwigsburg opened bankruptcy proceedings against Flachdachbau Kirchheim GmbH on Oct. 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Flachdachbau Kirchheim GmbH Attn: Sedat Efe, Manager Uhlandstr. 21 71638 Ludwigsburg AG Stuttgart Germany GISI-MOEBEL GMBH: Creditors Must File Claims by November 6 ---------------------------------------------------------- Creditors of Gisi-Moebel GmbH have until Nov. 6 to register their claims with court-appointed insolvency manager Siegfried Beck. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Nov. 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 Coburg Meeting Hall K First Stock Coburg 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: Siegfried Beck Stahlstr. 17 90411 Nuremberg Germany The District Court of Coburg opened bankruptcy proceedings against Gisi-Moebel GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Gisi-Moebel GmbH Matthaus-Kraus-Str. 4 96215 Lichtenfels Germany HOLM AUSSENHANDELS: Claims Registration Period Ends Nov. 19 ----------------------------------------------------------- Creditors of Holm Aussenhandels GmbH have until Nov. 19 to register their claims with court-appointed insolvency manager Gregor Schoene. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Dec. 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 Norderstedt Hall B Rathausallee 80 22846 Norderstedt 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: Gregor Schoene Haferweg 22 22769 Hamburg Germany The District Court of Norderstedt opened bankruptcy proceedings against Holm Aussenhandels GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Holm Aussenhandels GmbH Attn: Dr. Peter Rene Holm, Manager Slagboom 30 22848 Norderstedt Germany HSK GMBH: Claims Registration Period Ends Oct. 31 ------------------------------------------------- Creditors of HSK GmbH & Co KG have until Oct. 31 to register their claims with court-appointed insolvency manager Nada Nasser. Creditors and other interested parties are encouraged to attend the meeting at 8:45 a.m. on Nov. 28, 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 Moenchengladbach Meeting Room 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: Nada Nasser Gneisenaustrasse 52 41061 Moenchengladbach Germany Tel: 02161 / 2479730 Fax: 02161 / 2479629 The District Court of Moenchengladbach opened bankruptcy proceedings against HSK GmbH & Co KG on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HSK GmbH & Co KG Hardter Strasse 152 41748 Viersen Germany Attn: Eva Koch, Manager Omperter Weg 109 41748 Viersen Germany KOELNER CLUB: Claims Registration Ends Nov. 13 ---------------------------------------------- Creditors of Koelner Club Sport Spiel und Spass mbH have until Nov. 13 to register their claims with court-appointed insolvency manager Dr. Andreas Ringstmeier. Creditors and other interested parties are encouraged to attend the meeting at 10:35 a.m. on Dec. 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 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. Andreas Ringstmeier Magnusstr. 13 50672 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against Koelner Club Sport Spiel und Spass mbH on Oct. 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Koelner Club Sport Spiel und Spass mbH Alteburger Wall 29 50678 Cologne Germany MEGEMA GMBH: Creditors Must File Claims by November 16 ------------------------------------------------------ Creditors of Megema GmbH have until Nov. 16 to register their claims with court-appointed insolvency manager Werner Folger. Creditors and other interested parties are encouraged to attend the meeting at 8:00 a.m. on Dec. 6, 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 9/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: Werner Folger Gute Anger 11 85356 Freising Germany The District Court of Landshut opened bankruptcy proceedings against Megema GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Megema GmbH Attn: Ernst Klees, Manager Raiffeisenstr. 3 85356 Freising Germany MSS BAUSTOFFHANDEL: Claims Registration Period Ends Oct. 31 ----------------------------------------------------------- Creditors of M.S.S. Baustoffhandel & Bauschlosserei und Metallbau GmbH have until Oct. 31 to register their claims with court-appointed insolvency manager Dr. Axel Kampmann. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Nov. 29, 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 Arnsberg Meeting Room 328 Eichholzstr. 4 59821 Arnsberg 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. Axel Kampmann Bronnerstrasse 7 44141 Dortmund Germany The District Court of Arnsberg opened bankruptcy proceedings against M.S.S. Baustoffhandel & Bauschlosserei und Metallbau GmbH on Sept. 28. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: M.S.S. Baustoffhandel & Bauschlosserei und Metallbau GmbH Wiebusch 14 59581 Warstein Germany Attn: Sven Masiak, Manager Probst - Boeckler - Str. 22 59581 Warstein Germany PRINT MEDIEN: Claims Registration Ends Nov. 15 ---------------------------------------------- Creditors of Print Medien Service GmbH have until Nov. 15 to register their claims with court-appointed insolvency manager Diana Aurich. Creditors and other interested parties are encouraged to attend the meeting at 9:40 a.m. on Dec. 6, 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 Offenbach am Main Hall 162N First Floor Kaiserstrasse 63065 Offenbach am 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: Diana Aurich Wilhelmstrasse 11 63225 Langen Germany Tel: 06103-8044298 Fax: 06103-8044335 The District Court of Offenbach am Main opened bankruptcy proceedings against Print Medien Service GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Print Medien Service GmbH Attn: Karlheinz Stornfels, Manager Robert-Bosch-Str. 13 63225 Langen Germany W. HARR GMBH: Claims Registration Period Ends Nov. 16 ----------------------------------------------------- Creditors of W. Harr GmbH & Co. KG Backerei Konditorei have until Nov. 16 to register their claims with court-appointed insolvency manager Gundula Pierson. Creditors and other interested parties are encouraged to attend the meeting at 2:45 p.m. on Dec. 19, 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 Siegen Hall 010 Ground Floor Main Building Berliner Str. 21-22 57072 Siegen 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: Gundula Pierson Software Center 5a 35037 Marburg Germany Tel: 06421/9481350 Fax: 06421/9481360 The District Court of Siegen opened bankruptcy proceedings against W. Harr GmbH & Co. KG Backerei Konditorei on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: W. Harr GmbH & Co. KG Backerei Konditorei Daimlerstr. 48-50 57072 Siegen Germany Attn: Helmut Siebdrat, Manager Kornmarkt 10 57072 Siegen Germany ============= I R E L A N D ============= SANYO ELECTRIC: Kyocera Offers JPY70 Billion for Handset Unit ------------------------------------------------------------- Sanyo Electric Co., Ltd., has been offered JPY70 billion by Kyocera Corp. for its loss-making mobile phone business, Reuters reports, citing the Nikkei business daily. Reportedly, both companies would likely reach a basic agreement on the deal on Thursday and may make an announcement on the same day. Reuters states that the Nikkei reported last month that the deal could be worth JPY50 billion and said that the JPY70 billion offer could be lowered after Kyocera conducted due diligence. About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. SANYO ELECTRIC: S&P Revises Outlook on BB- Rating to Stable ----------------------------------------------------------- Standard & Poor's Ratings Services revised to stable from negative its outlook on the 'BB-' long-term corporate credit rating on Sanyo Electric Co. Ltd., reflecting the diminished risk of significant deterioration in the company's business results, backed by steady progress in its business restructuring. At the same time, Standard & Poor's affirmed the long-term corporate and the 'BB' senior unsecured debt ratings. On Oct. 11, 2007, Sanyo announced that it had reached a basic agreement to grant priority negotiation rights regarding the sale of its mobile phone business to Kyocera Corp. (NR). Sanyo's announcement on the sale of its mobile phone business, which has experienced severe competition and performance volatility, has served to clarify the company's policy. Standard & Poor's now expects Sanyo to further focus its management resources on its core Batteries and Commercial Equipment businesses. These are businesses in which the company holds a competitive position and that produce stable business performance. Over the past few years, Sanyo has endeavored to strengthen its cost competitiveness through substantial personnel reductions and by increasing the efficiency of its production system. As a result, the company has seen a steady recovery of profitability levels in its semiconductor, TV, and home appliances businesses, which have in the past produced substantial losses. Standard & Poor's believes that the company is unlikely to experience a significant expense burden following planned business restructuring. This, coupled with Sanyo's clearly expressed policy of focusing on continued financial improvement, has alleviated concerns regarding a repeated deterioration in the company's financial profile, which has been steadily improving since reaching its nadir in March 2005. A key factor in deciding Sanyo's future credit quality will be whether or not the company can quickly and effectively concentrate its resources on its core businesses. An additional key factor for further rating decisions taken on the company would be the continued supportive stance of financial institutions toward Sanyo. The ratings may be raised or the outlook on the rating revised upward if prospects for an ongoing recovery in cash flow generation and financial improvement backed by restructuring progress increase. On the other hand, the ratings may again come under downward pressure if the company is unable to achieve its financial targets for the current fiscal year, or if concerns over continued support from major shareholders or financial institutions increase. However, Standard & Poor's considers the possibility of these events occurring to be relatively limited at this stage. The long-term senior unsecured debt rating is one notch higher than the corporate credit rating, reflecting the expectation that creditor banks would grant debt forgiveness in the event of any default based on the currently supportive positions of the principal financial institutions. About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. SANYO ELECTRIC: Reorganization May Do Ratings Good, Moody's Says ---------------------------------------------------------------- Moody's Investors Service says that continued restructuring by Sanyo Electric Co., Ltd. may have a positive impact on its ratings. Sanyo announced on October 11, 2007, that it had reached a basic agreement to continue negotiations with Kyocera Corporation regarding the transfer of Sanyo's mobile phone business. In FY2006, the mobile phone business to be transferred earned about JPY277 billion in revenue, accounting for about 12% of consolidated revenue, although profitability was pressured because of severe domestic and overseas competition. Sanyo has positioned it as a core business in its current medium-term management plan (FY2005-FY2007). Moody's also views that Sanyo's continuing efforts to restructure its portfolio, including the sale of the mobile phone business, may improve its overall profit stability and asset efficiency by focusing management resources on other strongly competitive core businesses, such as batteries and commercial-use air-conditioning systems. Therefore, the continued restructuring may have a positive effect on the company's credit barring any significant losses associated with the restructuring. While negotiation details have yet to be finalized, Moody's will continue to assess development of Sanyo's business restructuring, focusing on the company's earning stability, incorporating its credit implications on Sanyo's rating and its outlook in a timely manner. Sanyo Electric Co., Ltd., headquartered in Osaka, is one of the world's leading manufacturers of consumer electronics products and devices. About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. ========= I T A L Y ========= FIAT SPA: Inks Cooperation Deal with Russia's Avtovaz ----------------------------------------------------- Fiat S.p.A. and JSC Avtovaz signed a memorandum of understanding as the basis for the establishment of cooperation initiatives aimed at supporting the expansion of Avtovaz, in the area of passenger cars encompassing engineering and technological processes, development, manufacturing, product sourcing, engines and other components. Fiat's involvement in the development of the Fiat brand in Russia based on prior agreements with other parties continues to be strong and is not affected by this MoU. Following the MoU, joint teams would be set up by the two groups to determine the feasibility and specificity of the nature of cooperation, both in the short and long term. The two companies expect to sign definitive agreements in the course of the coming months. "A cooperation with AUTOVAZ represents a significant step forward in our industrial strategy of targeted alliances. It is our view that Autovaz will re-emerge as a strong automotive player in a market that is showing significant growth potential. And we are delighted to be able to assist and participate in this process," Sergio Marchionne, Fiat Group's CEO, disclosed. "The memorandum signed is the most important stage in the Russian-European cooperation in the sphere of automobile production. Now we are entering a brand new level of relations with the Fiat Corporation which played the most decisive role in the construction of VAZ in the 60s of the last century. Fiat helped to design the most popular car in Russia which won the hearts and souls of our automobilists," Sergey Chemezov chairman of AvtoVAZ board of directors. "We hope that we shall obtain success once again, revive the authority and glory of AUTOVAZ," Mr. Chemezov added. About Fiat SpA Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As reported in the TCR-Europe on Aug. 24, 2007, Moody's Investors Service upgraded to Ba1 from Ba2 Fiat SpA's Corporate Family Rating, and the group's other long-term senior unsecured ratings. At the same time, the positive outlook on all long-term ratings was maintained. The short term Not Prime rating remains unchanged. =================== K A Z A K H S T A N =================== AIBOL-SYSTEM LLP: Proof of Claim Deadline Slated for November 21 ---------------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Aibol-System insolvent on Sept. 12. Creditors have until Nov. 21 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan ASTANA-JAGUAR LTD: Creditors Must File Claims November 21 --------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Astana-Jaguar Ltd insolvent on Aug. 29. Creditors have until Nov. 21 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Satpayev Str. 22/1-56 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (7232) 62-26-83 BALMED LLP: Claims Filing Period Ends November 16 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Balmed insolvent. Creditors have until Nov. 16 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Room 40 Tolstoy Str. 74 Kostanai Kazakhstan Tel: 8 (3142) 51-10-40 EML & K LLP: Creditors' Claims Due on November 16 ------------------------------------------------- The Specialized Inter-Regional Economic Court of Atyrau has declared LLP Eml & K insolvent. Creditors have until Nov. 16 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Atyrau Third Floor Abai Str. 10a Atyrau Kazakhstan Tel: 8 (31222) 32-90-02 LEGION LLP: Claims Registration Ends November 21 ------------------------------------------------ The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Legion insolvent. Creditors have until Nov. 21 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Satpayev Str. 22/1-56 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (7232) 62-26-83 NUR-ALEM-S LLP: Proof of Claim Deadline Slated for November 21 -------------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Nur-Alem-S insolvent on Sept. 14. Creditors have until Nov. 21 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan TRI O: Creditors Must File Claims November 16 --------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Tri O insolvent. Creditors have until Nov. 16 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan VALEV LLP: Claims Filing Period Ends November 16 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Atyrau has declared LLP Valev insolvent. Creditors have until Nov. 16 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Atyrau Third Floor Abai Str. 10a Atyrau Kazakhstan Tel: 8 (31222) 32-90-02 =================== K Y R G Y Z S T A N =================== TURMUN TRADE: Proof of Claim Deadline Slated for November 21 ------------------------------------------------------------ LLC Turmun Trade has declared insolvency. Creditors have until Nov. 21 to submit written proofs of claim to: LLC Turmun Trade Suyumbayev Str. 144-28 Bishkek Kyrgyzstan Tel: (+996 312) 29-92-61 ===================== N E T H E R L A N D S ===================== BAUSCH & LOMB: Inks Pact to Sell US$650 Million of 9.875% Notes --------------------------------------------------------------- In connection with the merger agreement between WP Prism Inc., Bausch & Lomb Incorporated and WP Prism Merger Sub Inc. regarding the acquisition of Bausch & Lomb, Merger Sub entered into an agreement to sell $650 million principal amount of 9.875% Notes due 2015. Merger Sub was formed by investment funds associated with Warburg Pincus LLC, for the purpose of merging with and into Bausch & Lomb, with Bausch & Lomb continuing as the surviving corporation. As a result of the Merger, investment funds associated with or designated by the Sponsor and certain co- investors will own Bausch & Lomb. Merger Sub will use the net proceeds from the offering of the Notes, together with the expected proceeds from a new $1.2 billion senior secured U.S. term loan facility and a new euro-denominated term loan facility in an amount equivalent to approximately $575 million, equity financing and cash on hand of Bausch & Lomb to consummate the Merger. The offering of the Notes and the Merger are expected to close on or about Oct. 26, 2007, subject to the satisfaction or waiver of closing conditions. About Bausch & Lomb Headquartered in Rochester, New York, Bausch & Lomb Inc. (NYSE: BOL) -- http://www.bausch.com/-- develops, manufactures, and markets eye health products, including contact lenses, contact lens care solutions, and ophthalmic surgical and pharmaceutical products. The company is organized into three geographic segments: the Americas; Europe, Middle East, and Africa; and Asia (including operations in India, Australia, China, Hong Kong, Japan, Korea, Malaysia, the Philippines, Singapore, Taiwan and Thailand). In Latin America, the company has operations in Brazil and Mexico. In Europe, the company maintains operations in Austria, Germany, the Netherlands, Spain, and the United Kingdom. * * * As reported in the Troubled Company Reporter on Oct. 9, 2007, Moody's Investors Service assigned a B2 Corporate Family Rating to WP Prism LLC. It is Moody's understanding that at the close of the transaction, WP Prism LLC will merge into Bausch & Lomb Incorporated, which will be the surviving entity. As reported in the Troubled Company Reporter on Oct. 8, 2007, Standard & Poor's Ratings Services lowered it corporate credit rating on Bausch & Lomb Inc. to 'B+' from 'BB+' and removed all the ratings from CreditWatch where they were placed on May 17, 2007, with negative implications. The outlook is stable. YUKOS FINANCE: Dutch Court to Auction Transpetrol Stake ------------------------------------------------------- A court in Amsterdam, Netherlands, plans to auction OAO Yukos Oil Co.'s 49% stake in Transpetrol a.s., held through Yukos Finance N.V., Interfax News reports citing a source privy to the legal proceedings. According to Interfax, the ruling was in response to a query by Yukos creditors Moravel Investments Ltd. and OAO Rosneft Oil Co. Moravel and Rosneft are also claiming US$1.49 billion in proceeds from the sale of Yukos' 53.7% stake in Mazeikiu Nafta. Yukos, Interfax relates, had tried to sell the stake for around US$103 million, but met stiff opposition from the Slovakian government, which holds 51% of Transpetrol. Interested in acquiring Yukos' stake were Gazprom, Tatneft, MOL, CEPS AS, Rosneft, PERN Przyjazn S.A. and Slovakia. As reported in the TCR-Europe on Sept. 24, 2007, OOO Promneftstroy took legal control of Yukos Finance after signing a notary act formalizing the transfer of the finance unit's shares. Promneftstroy paid RUR7.838 billion for the stake. Yukos Finance's main assets include: -- a 49% stake in Transpetrol, worth between US$100 million and US$200 million; and -- proceeds from a 54% stake in Lithuanian refinery Mazeikiu Nafta AB, worth almost US$1.5 billion. About Transpetrol Transpetrol a.s. -- http://www.transpetrol.sk/-- operates the Slovak part of the Druzhba oil pipeline through which about 10 million tons of Russian oil flow to western Europe annually. About Yukos Oil Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, 2006, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, 2006, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, 2006, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, 2006, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. ZINIFEX LTD: To Offer 69.5 Million Shares in Nyrstar IPO -------------------------------------------------------- Zinifex Limited and Umicore SA/NV confirmed their intention to sell shares in Nyrstar SA/NV, the world's largest zinc metal producer, through an initial public offering with the major highlights being: * Initially 69,565,218 shares will be offered resulting in approximately a 70% free float for Nyrstar post Offer; * The price range for the Offer is EUR18 - EUR23 per share; * Depending on demand, the number by of shares offered may be increased by up to 25%, or up to 17,391,304 shares, resulting in a potential Offer size of 86,956,522 shares; * In addition, the underwriters have been granted an over- allotment option in respect of up to 15% of the shares offered (inclusive of the increase provision above) or up to 13,043,478 shares; * The maximum possible Offer size is 100,000,000 shares representing 100% of Nyrstar shares and would result in a full exit by selling shareholders Zinifex and Umicore; * The Offer will be limited to qualified and/or institutional investors in Belgium and internationally and retail buyers in Belgium. The Offer is only open to institutional investors in Australia that qualify under Part 6D.2 of the Corporations Act, and not to other investors; * The Offer will open on 15 October 2007 and is expected to close at 4pm CET on 26 October 2007, subject to early closing; * The final offer price will be determined following a bookbuilding process, and will be announced on or around 29 October 2007; * If the Offer proceeds, Nyrstar shares are expected to commence trading on the Eurolist of the Euronext Brussels on an "if-and-when-delivered" basis on or around 29 October 2007. UBS Investment Bank, Deutsche Bank and Goldman Sachs International have been appointed as joint global co-ordinators of the equity offering; UBS Investment Bank, Deutsche Bank, Goldman Sachs International, Fortis and KBC Securities have been appointed as joint bookrunners; and Fortis and KBC Securities will be joint lead managers for the public offering in Belgium. Full details of the Offer can be viewed for free at: http://ResearchArchives.com/t/s?2441 About Zinifex Ltd. Zinifex Limited, one of the world's largest integrated zinc and lead companies -- http://www.zinifex.com/-- is headquartered in Melbourne, Australia. The company owns and operates two mines and four smelters. The mines and two of the smelters are located in Australia and supply the growing industrial markets of the Asian-Pacific region, including China. The company also has a zinc smelter in the Netherlands and the United States. The company sells a range of zinc metal, lead metal, and associated alloys in 20 countries. More than 80% of the company's products are distributed outside Australia, particularly in Asia, which is experiencing significant growth in construction activity and vehicle production. Zinc is used for steel galvanizing and die-casting and lead for lead acid batteries used mainly in cars and other vehicles. * * * On March 21, 2007, Fitch Ratings affirmed Zinifex Limited's 'BB+' Issuer Default rating with a Stable Outlook, following its offer to buy Wolfden Resources Inc for approximately CDN$360 million (approximately AU$385m). Wolfden's board has unanimously recommended that shareholders accept Zinifex's offer. =========== P O L A N D =========== TOORA POLAND: Sovereign Capital Eyes Restructuring Plan ------------------------------------------------------- Sovereign Capital is drawing up a restructuring program for Toora Poland as it eyes to relaunch the company's operations, the Financial Times reports, citing Polish News Bulletin. According to the report, Sovereign Capital, which filed an involuntary bankruptcy petition against Toora, plans to pay off the company's creditors under the restructuring plan. Toora's management said bank lenders will not demand repayment right away as they had become familiar with the restructuring program, although investors are still skeptical about it, FT relates. Toora management board member Radoslaw Kuras told Polish News Bulletin there is a high chance of restructuring the debts and saving the car parts manufacturer. Toora's Debts As previously reported in the TCR-Europe on Oct. 12, 2007, Toora owes more than PLN120 million to bank lenders, including Pekao, Caylon Bank and the Polish unit of Benelux-based Fortis. Toora owes PLN86 million to Pekao, Poland's second largest bank. The bank is waiting for the company to present a restructuring plan. Meanwhile, Caylon Bank is demanding repayment of its PLN20 million loan to the car parts manufacturer. In the first half of 2007, Toora incurred losses of over PLN50 million, 35% more than indicated by preliminary data. Its equity capital exceeds PLN90 million, although the auditor stressed the real sum may be lower. In September 2007, Polish debt collecting agency Pragma Inkaso was set to file a bankruptcy petition at the Tarnobrzeg court against Toora, saying the company lost its liquidity and failed to pay suppliers. About Toora Poland Headquartered in Nisko, Poland, Toora Poland S.A. -- http://www.toorapoland.pl/-- is a member of the Toora S.p.A. capital group. It is active in the aluminum market. Its product range includes aluminum car components and alloy wheels for the needs of automotive corporations, such as the Fiat Group, General Motors, Magneti Marelli, Faurecia and TRW Group. The main components produces by Toora Poland are steering boxes, engine brackets, bent pipes, perforated pipes and exhaust manifolds, as well as car wheels. In addition, the Company is engaged in the design and production of aluminum central heating radiators under the brand names Greta and Alice. It operates a production plant in Zory. =============== P O R T U G A L =============== HIPOTOTTA No 6: Moody's Junks EUR11.44 Million Class F Notes ------------------------------------------------------------ Moody's assigns definitive credit ratings to these classes of Notes issued by Hipototta 6 Limited: -- Aaa to the EUR224.4 million Class A1, due on July 31, 2060; -- Aaa to the EUR1800.4 million Class A2, due on July 31, 2060; -- Aa2 to the EUR52.4 million Class B, due on July 31, 2060; -- A1 to the EUR36.3 million Class C, due on July 31, 2060; -- Baa1 to the EUR40.7 million Class D, due on July 31, 2060; -- Ba3 to the EUR45.8 million Class E, due on July 31, 2060. -- Ca to the EUR11.44 million Class F, due on July 31, 2060. The transaction represents the securitization of Portuguese residential mortgage loans originated by Banco Santander Totta SA, rated A1/Prime-1. The assets supporting the Notes are prime mortgage loans secured on residential properties located in Portugal. The portfolio will be serviced by Banco Santander Totta SA. The ratings of the notes are based upon the analysis of the characteristics of the mortgage pool backing the Notes, the protection the Notes receive from credit enhancement against defaults and arrears in the mortgage pool, the legal and structural integrity of the issue and the credit quality of the parties involved in the transaction. The definitive ratings address the expected loss posed to investors by the legal final maturity. The structure allows for timely payment of interest and ultimate payment of principal at par on or before the legal final maturity date. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed but may have significant effect on the yield to investors. =========== R U S S I A =========== ATIS CJSC: Court Starts Competitive Bankruptcy Proceedings ---------------------------------------------------------- Creditors of Non-Bank Credit Organization Atis CJSC may submit their proofs of claim under Clause 8, Article 22.1 of the Federal law on insolvency of credit organizations at: Block 1 Kozhevnicheskaya Str. 3 115114, Moscow Russia Tel: 235-61-28. FAL'KON OJSC: Court Starts Competitive Bankruptcy Proceedings ------------------------------------------------------------- Creditors of Joint Stock Commercial Bank Fal'kon OJSC may submit their proofs of claim under Clause 8, Article 22.1 of the Federal law on insolvency of credit organizations at: Bashilovka Str. 6 Novaya 125040 Moscow Russia FIAT SPA: Inks Cooperation Deal with Russia's Avtovaz ----------------------------------------------------- Fiat S.p.A. and JSC Avtovaz signed a memorandum of understanding as the basis for the establishment of cooperation initiatives aimed at supporting the expansion of Avtovaz, in the area of passenger cars encompassing engineering and technological processes, development, manufacturing, product sourcing, engines and other components. Fiat's involvement in the development of the Fiat brand in Russia based on prior agreements with other parties continues to be strong and is not affected by this MoU. Following the MoU, joint teams would be set up by the two groups to determine the feasibility and specificity of the nature of cooperation, both in the short and long term. The two companies expect to sign definitive agreements in the course of the coming months. "A cooperation with AUTOVAZ represents a significant step forward in our industrial strategy of targeted alliances. It is our view that Autovaz will re-emerge as a strong automotive player in a market that is showing significant growth potential. And we are delighted to be able to assist and participate in this process," Sergio Marchionne, Fiat Group's CEO, disclosed. "The memorandum signed is the most important stage in the Russian-European cooperation in the sphere of automobile production. Now we are entering a brand new level of relations with the Fiat Corporation which played the most decisive role in the construction of VAZ in the 60s of the last century. Fiat helped to design the most popular car in Russia which won the hearts and souls of our automobilists," Sergey Chemezov chairman of AvtoVAZ board of directors. "We hope that we shall obtain success once again, revive the authority and glory of AUTOVAZ," Mr. Chemezov added. About Fiat SpA Headquartered in Turin, Italy, Fiat S.p.A. -- http://www.fiatgroup.com/-- manufactures and sells automobiles, commercial vehicles, and agricultural and construction equipment. Fiat's creditors include Banca Intesa, Banca Monte dei Paschi di Siena, Banca Nazionale del Lavoro, Capitalia, Sanpaolo IMI, and UniCredito Italiano. Fiat operates in Argentina, Australia, Austria, Belgium, Brazil, Bulgaria, China, Czech Republic, Denmark, France, Germany, Greece, Hungary, India, Ireland, Italy, Japan, Lituania, Netherlands, Poland, Portugal, Romania, Russia, Singapore, Spain, among others. * * * As reported in the TCR-Europe on Aug. 24, 2007, Moody's Investors Service upgraded to Ba1 from Ba2 Fiat SpA's Corporate Family Rating, and the group's other long-term senior unsecured ratings. At the same time, the positive outlook on all long-term ratings was maintained. The short term Not Prime rating remains unchanged. GOLD-BUSINESS CJSC: Creditors Must File Claims by Nov. 5 -------------------------------------------------------- Creditors of Gold-Business CJSC have until Nov. 5 to submit proofs of claim at: 15-224 Leningrad Shosse 125171 Moscow Russia The Arbitration Court of Moscow declared the company as insolvent on Sept. 24. The Court appointed Zaitsev N.P. as Competitive proceedings manager. The case is docketed under Case No. А40-28998/07-78-91 Б. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: Gold-Business CJSC Block 1 Demyana Bednogo Str. 23 123635 Moscow Russia KARPILOVSKIJ KOLKHOZ: Creditors Must File Claims by Nov. 5 ---------------------------------------------------------- Creditors of Karpilovskij kolkhoz Production-agricultural Cooperative have until Nov. 5 to submit proofs of claim at: POB 2004 650000 Kemerovo Russia The Arbitration court of Altai krai will convene at 9:30 a.m. on Jan. 30, 2008 to hear the company's bankruptcy supervision procedure. The Court appointed Biryukov A.P. as Interim Manager. The case is docketed under Case No. А03-6880/07-Б. The Debtor can be reached at: Karpilovskij kolkhoz Production-Agricultural Cooperative Bol'sheromanov settlement Tabunskij Raion Altai Krai Russia KORMOVISCHENSKIJ CJSC: Court Hearing Slated for Feb. 22, 2008 ------------------------------------------------------------- The Arbitration Court of Prem' will convene at 10:00 a.m. on Feb. 22, 2008, to hear the bankruptcy supervision procedure on Integrated Logging-Lumbering Enterprise Kormovischenskij CJSC. The case is docketed under Case No. А50-11597/2007-Б1. The Interim Manager is: Gordeev M.L. POB 5714 614081 Perm' Russia The Debtor can be reached at: Integrated Logging-Lumbering Enterprise Kormovischenskij CJSC Zarechanaya Str. 4-2 Kormovische Settlement Lys'va 618940 Prem' krai Russia LYUBAVA-2 OJSC: Stock Sale Slated for November 13 ------------------------------------------------- The Competitve proceedings manager of Lyubava-2 OJSC will open a public auction for the company's properties at 11:30 a.m. on Nov. 13. The company has set a RUR16,360 starting price for the auctioned assets. Interested participants have until Nov. 9 to deposit an amount of RUR3,800 to: Lyubava-2 OJSC Settlement Account 40702810900000000623 Correspondent Account 330101810100000000376 Dil-Bank LLC Komsomolskij Pr. 32 Moscow Russia Bidding documents must be submitted to: Embankment of Obvodnoj Kanal 181 190103 St. Petersburg Russia PROMTEKS CJSC: Creditors Must File Claims by Nov. 5 --------------------------------------------------- Creditors of Promteks CJSC have until Nov. 5 to submit their proofs of claim. The Interim Manager is: Chuprov E.V. POB 38 111396 Moscow Russia The Arbitration Court of Moscow will convene on 10:00 a.m. on Feb. 26, 2008 to hear the company's bankruptcy supervision procedure. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: Promteks CJSC Block 8 Marksistskaya Str. 20 Moscow Russia PUDOZHSKIJ LLC: Court Names Kokotov A.R. as Liquitador ------------------------------------------------------ The Arbitration court of Karelia appointed Kokotov A.R. as Competitive proceedings manager for Lumber Factory Pudozhskij LLC. He can be reached at: Kokotov A.R. POB 21 Petrozavodsk 185011 Karelia Russia The Court commenced competitive proceedings against the company after finding it insolvent on Sept. 12. The case is docketed under Case No. А26-3857/2007. The Debtor can be reached at: Lumber Factory Pudozhskij LLC Lenina Str. 70 Pudozh 186150 Karelia Russia RBC INFORMATION: Increasing Capital Needs Cue S&P's B+ Ratings -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' long-term and 'B' short-term corporate credit ratings to Russian media group OJSC RBC Information Systems. At the same time, Standard & Poor's assigned its 'ruA+' Russia national scale rating to RBC. The outlook is stable. After the divestment of its IT Services business in July 2007, RBC has strategically focused on providing business and specialized content to an affluent audience in Russia through a multitude of media sources -- online, television, and print. Although the company has presence in the print media and television market, the Internet is RBC's main focus area, accounting for more than half of revenues. "The ratings on RBC are constrained by the group's exposure to the Russian economy and reliance on the cyclical advertising market; an aggressive acquisition-based growth strategy, with growing capital needs; and uncertainties regarding Russia's complex regulatory environment," said Standard & Poor's credit analyst Raam Ratnam. "The ratings are, however, supported by the group's solidifying market position, continuing scale expansion, improving revenue diversification, and increasing EBITDA and cash flow generation," Mr. Ratnam added. Standard & Poor's expects that RBC will continue to increase its economies of scale and strengthen its market position and competitiveness in the dynamic and growing Russian media market. Nevertheless, the improvement of the company's business profile through recently completed and further acquisitions will result in growing capital needs and potentially heavy financial leverage. RBC's ability to address its financing needs with careful balancing of its leverage position and financial risk exposure will remain one of the key rating considerations. The company's aggressive growth strategy limits upside potential for the ratings in the short to medium term. The ratings would come under pressure if RBC overstretches its acquisition capacity, if the core businesses underperform, or if there is a downturn in the Russian advertising market. RO ROSTOVOBLGASIFICATION: Creditors Must File Claims by Nov. 6 -------------------------------------------------------------- Creditors of SpetsPozhStroy CJSC have until Nov. 6 to submit proofs of claim to: Demirov M.G. Beregovaya Str. 5 344082 Rostov-on-Don Russia Tel: (863)267-55-04 The Arbitration court of Rostov will convene on Jan. 15, 2008 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. А53-11201/07-С1-30. The Court is located at: The Arbitration Court of Rostov Stanislavskogo Str. 8a 344008 Rostov-na-Donu Russia The Debtor can be reached at: RO RostovOblGasification State Enterprise Shaumyana 26/41 344007 Rostov-on-Don Str Russia SECTORAL ENGINEERING: Creditors Must File Claims by Nov. 5 ---------------------------------------------------------- Creditors of Sectoral Engineering Agency on Development of State-of-the Art Technologies and Manufacturing of Glass-Ware State Unitary Enterprise have until Nov. 5 to submit proofs of claim to: Mirabyan L.M. Interim Manager Pervomajskaya Str. 56 Shodnya 141420 Moscow Tel: 509-23-56 The Arbitration court of Moscow commenced bankruptcy supervision procedure on the company. The case is docketed under Case No. А41-К2-15907/07. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: Sectoral Engineering Agency on Development of State-of- the Art Technologies and Manufacturing of Glass-Ware State Unitary Enterprise Pervomajskaya Str. 56 Shodnya 141420 Moscow Russia SPETSPOZHSTROY CJSC: Creditors Must File Claims by Nov. 6 --------------------------------------------------------- Creditors of SpetsPozhStroy CJSC have until Nov. 6 to submit their proofs of claim. The Interim Manager is: Knutova M.V. Leningrad Prospekt 9 125040 Moscow Russia The Arbitration court of Moscow will convene at 2:00 p.m. on Feb. 19 to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. А40-43320/07-71-104Б. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: SpetsPozhStroy CJSC Block 1 Nemanskij Proezd 13 123592 Moscow Russia TRANSPORTATION INVESTMENTS: Moody's Puts Ba3 Corp. Family Rating ---------------------------------------------------------------- Moody's Investors Service assigned a Ba3 Corporate Family Rating with a positive outlook to Transportation Investments Holding Ltd. which is the parent company of Severstaltrans Group -- one of the largest private transportation companies and container terminal operators in Russia with US$1.5 billion in revenues and a fleet of approximately 40,000 railcars in 2006. The Ba3 Corporate Family Rating reflects ST's strong market positions in the Russian rail and maritime container terminal markets which are protected by significant barriers to entry. The rating also benefits from the good prospects of the rail and in particular the container terminal business in Russia. Moreover, the rating is supported by sound profit margins generated in all activities and the company's adequate financial profile. While Moody's has also considered the company's stakes in the Estonian oil transshipment terminal, but considers these activities to be largely rating neutral, as the modest overall size and revenue contribution are somewhat neutralized by the political risks. Against the backdrop of these credit positives, the Ba3 Corporate Family Rating has been constrained by these considerations: (i) the substantial size advantage of Russian Railways (rated A3, but benefiting from expected government support) in the rail segment, which is also undertaking a modernization of its rolling stock with plans to expand in the lucrative oil transportation business, which is likely to increase competitive pressure on ST over time. This competitive threat is somewhat mitigated by the political support for competition in this previously monopolistic sector and the multiple supplier-strategy of most of ST's customers; (ii) ST's historic success was fueled by a buoyant Russian economy and has yet to demonstrate its resilience in a more challenging environment; nevertheless, Moody's expects both rail transportation especially of oil products as well as container port operations to exhibit some solid growth patterns for the foreseeable future; (iii) the potential threat from new container terminals being built -- as is the case in Ust-Luga near St. Petersburg, although the expected growth rate in container handling volumes (benefiting from significant foreign direct investments in the St. Petersburg area e.g. in the automotive sector) should largely offset the current expansion plans by ST and its competitors; (iv) the company's reliance on access to bank and capital markets to fund its growth program, exposing it somewhat to a tightening liquidity situation in these markets; we take some comfort from ST having strong relations with both leading international and domestic banks; and (v) the general higher risk and uncertainty resulting from the less transparent and more volatile Russian operating, legal, regulatory and political environment. The positive outlook reflects Moody's opinion that the rating is strongly positioned in the Ba3 category due to ST's strong competitive position, a generally favorable outlook for the industry and the expectation of improved Free Cash Flow once expansion capex starts to pay off. A rating upgrade over the next 12-18 months could be warranted should visibility increase that: (i) the trend in current margin improvements will be sustainable (i.e. EBITA margins improve above 25% in 2008 and towards 30% thereafter, from a FYE 2006 level of 15.7%); and (ii) leverage will be reduced in 2008 (i.e. Net Debt/EBITDA reducing from expected levels around 3x in 2007 to levels below 2.5x in 2008). Severstaltrans Group has emerged as a transportation vehicle servicing the needs of Severstal Group, one of Russia's largest steel and mining conglomerates, in 1996 and grown constantly through a series of acquisitions and investments. Today it accounts for 5% of total tonnage transported by rail in Russia, controls 31% of the Russian port container capacity and accounts for 9% of total export shipments of Russia's oil and oil products. Since July 2007 ST is fully owned by the company's management after it bought out Mr. Mordashov -- the majority shareholder of Severstal -- who previously had held a 50% stake. ST's operations are divided into three business segments: (1) The RAIL segment is the historic core of ST and accounted for the lion's share of revenues and EBITDA in 2006. This business focuses on railway transportation and the related freight forwarding services. Although it is substantially smaller than Russian Railways it is the leader amongst private rail companies in Russia and Moody's views it to be well positioned in attractive segments such as the transportation of oil products. (2) The PORT business is focused on the operation of Russia's second and third largest container terminals which are located in St. Petersburg and Vostochny/Far East, respectively. Moreover, it owns 50% in each of the two container terminals in Vladivostok. Through the acquisition of the St. Petersburg terminal (Petrolesport) in 2007 and the fast growth in the global container handling market, Moody's believes the PORT segment soon to be of similar importance to ST as the RAIL segment. (3) OIL TRANSHIPMENT operates two large oil transshipment terminal located in Estonia near Tallinn and represents a rather minor activity compared to the other businesses. ST has strongly grown both organically and via M&A since its inception in 1996. Moody's believes growth to continue going forward on the back of the dynamic container handling industry and ST's substantial investments in the expansion of its terminal capacity. As the PORT segment with its higher earnings margins is likely to outpace the RAIL segment Moody's also expects EBITA margins to increase from around 15% in 2005/2006 to levels around 25-30% in future. Although ST engaged in substantial M&A activity in the recent past and despite negative Free Cash Flows due to high capital expenditures, the company reported adequate leverage ratios in 2005 and 2006. The current rating also reflects Moody's expectation that management will continue its balanced approach between shareholders and creditors interests in future. Moreover, the rating takes into account that the purchase of the remaining 50% stake in Transportation Investments Holding by management was partly funded by a US$350 million loan taken out by Leverret Holding, the ownership vehicle of the owners in TIHL. This loan is largely serviced by dividends distributed by Transportation Investments Holding and backed by limited guarantees and shares pledges of core subsidiaries, and hence will be considered in Moody's debt adjustments. Cyprus based Transportation Investments Holding Ltd. is the parent company of Severstaltrans Group. Severstaltrans Group is one of the largest private transportation companies and container terminal operators in Russia with US$1.5 billion in revenues and a fleet of approximately 40,000 railcars in 2006. YUKOS OIL: Dutch Court to Auction Transpetrol Stake --------------------------------------------------- A court in Amsterdam, Netherlands, plans to auction OAO Yukos Oil Co.'s 49% stake in Transpetrol a.s., held through Yukos Finance N.V., Interfax News reports citing a source privy to the legal proceedings. According to Interfax, the ruling was in response to a query by Yukos creditors Moravel Investments Ltd. and OAO Rosneft Oil Co. Moravel and Rosneft are also claiming US$1.49 billion in proceeds from the sale of Yukos' 53.7% stake in Mazeikiu Nafta. Yukos, Interfax relates, had tried to sell the stake for around US$103 million, but met stiff opposition from the Slovakian government, which holds 51% of Transpetrol. Interested in acquiring Yukos' stake were Gazprom, Tatneft, MOL, CEPS AS, Rosneft, PERN Przyjazn S.A. and Slovakia. As reported in the TCR-Europe on Sept. 24, 2007, OOO Promneftstroy took legal control of Yukos Finance after signing a notary act formalizing the transfer of the finance unit's shares. Promneftstroy paid RUR7.838 billion for the stake. Yukos Finance's main assets include: -- a 49% stake in Transpetrol, worth between US$100 million and US$200 million; and -- proceeds from a 54% stake in Lithuanian refinery Mazeikiu Nafta AB, worth almost US$1.5 billion. About Transpetrol Transpetrol a.s. -- http://www.transpetrol.sk/-- operates the Slovak part of the Druzhba oil pipeline through which about 10 million tons of Russian oil flow to western Europe annually. About Yukos Oil Headquartered in Moscow, Yukos Oil -- http://yukos.com/-- is an open joint stock company existing under the laws of the Russian Federation. Yukos is involved in energy industry substantially through its ownership of its various subsidiaries, which own or are otherwise entitled to enjoy certain rights to oil and gas production, refining and marketing assets. The Company filed for Chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742), but the case was dismissed on Feb. 24, 2005, by the Hon. Letitia Z. Clark. A few days later, the Russian Government sold its main production unit Yugansk to a little-known firm Baikalfinansgroup for US$9.35 billion, as payment for US$27.5 billion in tax arrears for 2000- 2003. Yugansk eventually was bought by state-owned Rosneft, which is now claiming more than US$12 billion from Yukos. On March 10, 2006, a 14-bank consortium led by Societe Generale filed a bankruptcy suit in the Moscow Arbitration Court in an attempt to recover the remainder of a US$1 billion debt under outstanding loan agreements. The banks, however, sold the claim to Rosneft, prompting the Court to replace them with the state- owned oil company as plaintiff. On April 13, 2006, court-appointed external manager Eduard Rebgun filed a chapter 15 petition in the U.S. Bankruptcy Court for the Southern District of New York (Bankr. S.D.N.Y. Case No. 06-0775), in an attempt to halt the sale of Yukos' 53.7% ownership interest in Lithuanian AB Mazeikiu Nafta. On May 26, 2006, Yukos signed a US$1.49 billion Share Sale and Purchase Agreement with PKN Orlen S.A., Poland's largest oil refiner, for its Mazeikiu ownership stake. The move was made a day after the Manhattan Court lifted an order barring Yukos from selling its controlling stake in the Lithuanian oil refinery. On Aug. 1, 2006, the Hon. Pavel Markov of the Moscow Arbitration Court upheld creditors' vote to liquidate OAO Yukos Oil Co. and declared what was once Russia's biggest oil firm bankrupt. ZNAK-OIL LLC: Creditors Must File Claims by Nov. 6 -------------------------------------------------- Creditors of Znak-Oil LLC have until Nov. 6 to submit proofs of claim at: POB 153 Nahodka-10 Promorski krai Russia The Arbitration court of Primorski krai commenced competitive proceedings against the company after finding it insolvent. The Court appointed Savin S.N. as Competitive proceedings manager. The case is docketed under Case No. А51-7696/2007 15-121 Б. The Debtor can be reached at: Znak-Oil LLC Registration 10178 Vladivistok Russia ========= S P A I N ========= UTSTARCOM INC: Posts US$43 Million Net Loss in Third Qtr. 2007 -------------------------------------------------------------- UTStarcom Inc. has reported net sales for the third quarter 2006 were US$601 million. Gross margins for the third quarter 2006 were 12.4% and net loss for the quarter was US$43 million, or a loss of (US$0.36) per share. The company also announced the completion of the China sales investigation. Net sales for the full year 2006 were US$2.5 billion. Gross margins for the full year 2006 were 15.7% and net loss for the year was US$117.3 million, or a loss of (US$0.97) per share. Restructuring Plan On Oct. 2, 2007, the company's Board of Directors approved a restructuring plan to reduce operating costs. The initial phase of this plan includes a worldwide reduction of approximately 11% of the company's headcount, or approximately 700 employees. The workforce reduction will be based primarily in the United States and China and, to a lesser degree, other international locations. Management expects the headcount reduction phase of the restructuring plan will be completed in the fourth quarter of 2007. As such, the company expects to incur a restructuring charge in the fourth quarter in connection with the headcount reduction of approximately US$10 million. As a result of these headcount reductions, the company expects to realize annual cost savings in salary and compensation-related expenses of approximately US$21 million on an annualized basis. "The restructuring plan is closely aligned with our overall strategy of becoming a more focused and operationally efficient company," said Peter Blackmore, chief operating officer of UTStarcom. "Headcount reductions are always difficult; however, they are essential as we strive to attain consistent profitability and improve our cash flows. We have already started to implement the plan and expect to achieve the full benefit by the first quarter of 2008." About UTStarcom, Inc. Headquartered in Alameda, Calif., UTStarcom Inc. (Nasdaq: UTSI) -- http://www.utstar.com/-- provides IP-based, end-to-end networking solutions and international service and support. The company sells its broadband, wireless, and handset solutions to operators in both emerging and established telecommunications markets around the world. The company maintains operations in France, Italy, Spain, China, India, Japan, Argentina and Brazil. * * * As reported on Jan. 18, 2007, noteholders of UTStarcom Inc.'s 7/8% convertible subordinated notes due 2008 agreed to the proposed amendments of certain provisions of the indenture pursuant to which the notes were issued and a waiver of rights to pursue remedies available under the indenture with respect to certain default. Under the terms of the indenture, during the period beginning Jan. 9, 2007 and ending 5:30 p.m., May 31, 2007, any failure by the company to comply with certain provisions will not result in a default or an event of default, and the Notes will accrue an additional 6.75% per annum in special interest from and after Jan. 9, 2007 to the maturity date of the Notes, unless the Notes are earlier repurchased or converted. ===================== S W I T Z E R L A N D ===================== BERGBAHNEN LUNGERN: Obwalden Court Closes Bankruptcy Proceedings ---------------------------------------------------------------- The Bankruptcy Service of Obwalden entered Sept. 11 an order closing the bankruptcy proceedings of JSC Bergbahnen Lungern- Schonbuel (BBLS). The Bankruptcy Service of Obwalden can be reached at: Bankruptcy Service of Obwalden 6060 Sarnen OW Switzerland The Debtor can be reached at: JSC Bergbahnen Lungern-Schonbuel (BBLS) Talstation Obsee 6078 Lungern OW Switzerland COLUMBUS REISECLUB: Creditors' Liquidation Claims Due October 29 ---------------------------------------------------------------- Creditors of JSC Columbus Reiseclub have until Oct. 29 to submit their claims to: Muhlegasse 12 A 6341 Baar ZG Switzerland The Debtor can be reached at: JSC Columbus Reiseclub Baar ZG Switzerland DR. H. SCHLEUSSNER: Creditors' Liquidation Claims Due Dec. 17 ------------------------------------------------------------- Creditors of JSC Dr. H. Schleussner have until Dec. 17 to submit their claims to: Treuhand und Revisionsgesellschaft Mattig-Suter und Partner Liquidator Bahnhofstrasse 28 Mail box: 556 6431 Schwyz Switzerland The Debtor can be reached at: JSC Dr. H. Schleussner Schwyz Switzerland FIMS LLC: Aargau Court Starts Bankruptcy Proceedings ---------------------------------------------------- The Bankruptcy Court of Aargau commenced bankruptcy proceedings against LLC Fims on Sept. 12. The Bankruptcy Service of Aargau can be reached at: Bankruptcy Service of Aargau Office Oberentfelden 5036 Oberentfelden AG Switzerland The Debtor can be reached at: LLC Fims Guterstrasse 1C 5745 Safenwil Zofingen AG Switzerland HOTEL ENGEL: Obwalden Court Closes Bankruptcy Proceedings --------------------------------------------------------- The Bankruptcy Service of Obwalden entered Sept. 11 an order closing the bankruptcy proceedings of JSC Hotel Engel. The Bankruptcy Service of Obwalden can be reached at: Bankruptcy Service of Obwalden 6060 Sarnen OW Switzerland The Debtor can be reached at: JSC Hotel Engel Dorfstrasse 2 6390 Engelberg OW Switzerland MCM MOUNTAIN: Creditors' Liquidation Claims Due October 25 ---------------------------------------------------------- Creditors of JSC MCM Mountain Capital Management have until Oct. 25 to submit their claims to: Bernhard Graf Liquidator Samariterstrasse 5 8032 Zurich Switzerland The Debtor can be reached at: JSC MCM Mountain Capital Management Zurich Switzerland MMB METALLBAU: Aargau Court Starts Bankruptcy Proceedings --------------------------------------------------------- The Bankruptcy Court of Aargau commenced bankruptcy proceedings against JSC MMB Metallbau on Sept. 4. The Bankruptcy Service of Aargau can be reached at: Bankruptcy Service of Aargau Office Baden 5402 Baden AG Switzerland The Debtor can be reached at: JSC MMB Metallbau Ruggholzli 6 5453 Busslingen Switzerland PORTANCE JSC: Creditors' Liquidation Claims Due October 25 ---------------------------------------------------------- Creditors of JSC Portance have until Oct. 25 to submit their claims to: Sandro D�Antuono Liquidator JSC DAREVA Burggraben 27 9004 St. Gallen Switzerland The Debtor can be reached at: JSC Portance St. Gallen Switzerland RUBIN SPORT: Creditors' Liquidation Claims Due October 25 --------------------------------------------------------- Creditors of JSC Rubin Sport have until Oct. 25 to submit their claims to: Peter Rubin Liquidator Sennereiweg 3937 Baltschieder Visp VS Switzerland The Debtor can be reached at: JSC Rubin Sport Visp VS Switzerland UDI JSC: Creditors' Liquidation Claims Due November 30 Creditors of JSC UDI have until Nov. 30 to submit their claims to: Herrn Reuben Lotan Liquidator St. Antons-Gasse 4 6300 Zug Switzerland The Debtor can be reached at: JSC UDI Zug Switzerland ============= U K R A I N E ============= ALM COMPANY: Creditors Must File Claims by October 18 ----------------------------------------------------- Creditors of LLC Alm Company (code EDRPOU 31057235) have until Oct. 18 to submit their proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kyiv commenced bankruptcy proceedings against the company after finding it insolvent. The case is under docketed Case No. 15/425-b. The Debtor can be reached at: LLC Alm Company Lomonosov Str. 8-b 03127 Kiev Ukraine IN SERVICE: Creditors Must File Claims by October 18 ---------------------------------------------------- Creditors of CJSC In Service (code EDRPOU 25661990) have until Oct. 18 to submit their proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kyiv commenced bankruptcy proceedings against the company after finding it insolvent. The case is under docketed Case No. 43/229. The Debtor can be reached at: CJSC In Service Trutenko Str. 9 03022 Kiev Ukraine JOBBING TRADE: Creditors Must File Claims by October 18 ------------------------------------------------------- Creditors of LLC Jobbing Trade (code EDRPOU 31482777) have until Oct. 18 to submit their proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kyiv commenced bankruptcy proceedings against the company after finding it insolvent. The case is under docketed Case No. 15/522-b. The Debtor can be reached at: LLC Jobbing Trade Liubomirskaya Str. 14 03131 Kiev Ukraine LEX LTD: Creditors Must File Claims by October 18 ------------------------------------------------- Creditors of LLC Lex Ltd. (code EDRPOU 31900206) have until Oct. 18 to submit their proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kyiv commenced bankruptcy proceedings against the company after finding it insolvent. The case is under docketed Case No. 43/228. The Debtor can be reached at: LLC Lex Ltd. Demiyevskaya Str. 35-b 03039 Kiev Ukraine MONOLIT CJSC: Creditors Must File Claims by October 18 ------------------------------------------------------ Creditors of CJSC Monolit (code EDRPOU 19408057) have until Oct. 18 to submit their proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kyiv commenced bankruptcy proceedings against the company after finding it insolvent. The case is under docketed Case No. 43/404. The Debtor can be reached at: CJSC Monolit Iziumskaya Str. 7 03083 Kiev Ukraine NAFTOGAZ NJSC: Fitch Watches B+ Rating on Absent 2006 Financials ---------------------------------------------------------------- Fitch Ratings has placed the ratings of NJSC Naftogaz of Ukraine on Rating Watch Negative. The ratings include the company's Long-term foreign and local currency Issuer Default Ratings of 'B+', senior unsecured rating of 'B+' and Recovery Rating of 'RR4'. The RWN has been triggered by two separate events. First, Naftogaz has failed to publish fiscal year 2006 IFRS financial statements. Publishing these statements is a covenant in Naftogaz's 2009 Eurobond issue documentation (actually an issue of loan participation notes through Standard Bank London Holding PLC); receipt of these accounts by bondholders was due by Aug. 31, 2007. On Oct. 25, 2007, Naftogaz's de facto bondholders will meet in London to vote on whether to force a technical default of the bond issue, or whether to grant Naftogaz a waiver to Dec. 31, 2007. Second, Naftogaz is due to settle an outstanding amount of up to US$700 million for natural gas deliveries by Nov. 1, 2007. This amount is owed to UkrGazEnergo, which is a 50/50 joint venture between Naftogaz and RosUkrEnergo (the latter being a 50/50 joint venture between Gazprom and private individuals). With the absence of up to date financial statements, Fitch has some difficulty in determining the effect of this settlement on Naftogaz's financial profile. The RWN may be resolved by a default decision taken by Naftogaz bondholders on Oct. 25, 2007. Alternatively, if bondholders vote for a default waiver on Oct. 25, 2007, the RWN should be resolved by subsequent financial disclosure. This disclosure could take the form of fiscal year 2006 IFRS financial statements published by Dec. 31, 2007 or, possibly, the disclosure to Fitch of fiscal year 2006 and first half of 2007 financial statements in compliance with Ukrainian accounting standards. Fitch has considered withdrawing Naftogaz's ratings due to the delay in the provision of good financial disclosure. However, given recent indications that financial disclosure will be forthcoming, Fitch instead placed Naftogaz's ratings on RWN. The RWN is likely to be finally resolved by end-2007. If adequate information is not available by this date, Fitch is likely to withdraw its Naftogaz ratings. NEW DEAL: Creditors Must File Claims by October 18 -------------------------------------------------- Creditors of LLC New Deal (code EDRPOU 25594495) have until Oct. 18 to submit their proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kyiv commenced bankruptcy proceedings against the company after finding it insolvent. The case is under docketed Case No. 15/502-b. The Debtor can be reached at: LLC New Deal Trutenko Str. 9 03022 Kiev Ukraine POLITECHCENTER LLC: Creditors Must File Claims by October 18 ------------------------------------------------------------ Creditors of LLC Politechcenter (code EDRPOU 32910759) have until Oct. 18 to submit their proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kyiv commenced bankruptcy proceedings against the company after finding it insolvent. The case is under docketed Case No. 15/407-b. The Debtor can be reached at: LLC Politechcenter Krasnozvezdny Avenue 119 03039 Kiev Ukraine SYSTEMTECHNICS-2000: Creditors Must File Claims by October 18 ------------------------------------------------------------- Creditors of LLC Systemtechnics-2000 (code EDRPOU 24746394) have until Oct. 18 to submit their proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kyiv commenced bankruptcy proceedings against the company after finding it insolvent. The case is under docketed Case No. 15/504-b. The Debtor can be reached at: LLC Systemtechnics-2000 Frometovskaya Str. 18-A 03039 Kiev Ukraine TONUS PLUS: Creditors Must File Claims by October 18 ---------------------------------------------------- Creditors of LLC Tonus Plus (code EDRPOU 31513459) have until Oct. 18 to submit their proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kyiv commenced bankruptcy proceedings against the company after finding it insolvent. The case is under docketed Case No. 15/424-b. The Debtor can be reached at: LLC Tonus Plus 40 Years of October Avenue 120 03304 Kiev Ukraine VERKON LLC: Creditors Must File Claims by October 18 ---------------------------------------------------- Creditors of LLC Verkon (code EDRPOU 31109445) have until Oct. 18 to submit their proofs of claim to: The Economic Court of Kiev B. Hmelnitskij Boulevard 44-B 01030 Kiev Ukraine The Economic Court of Kyiv commenced bankruptcy proceedings against the company after finding it insolvent. The case is under docketed Case No. 15/426-b. The Debtor can be reached at: LLC Verkon Zhukovsky Lane 6 03022 Kiev Ukraine =========================== U N I T E D K I N G D O M =========================== ACTUANT CORP: Andrew Lampereur Adopts Prearranged Trading Plan -------------------------------------------------------------- Actuant Corporation's Executive Vice President and Chief Financial Officer Andrew Lampereur has adopted a prearranged trading plan in accordance with guidelines specified by Rule 10b5-1 under the Securities Exchange Act of 1934 and the company's policies with respect to insider sales. Rule 10b5-1 allows officers and directors of public companies, at a time when they are not aware of material nonpublic information, to adopt predetermined plans for selling shares of company stock. Under his 10b5-1 plan, Mr. Lampereur will exercise stock options and sell up to 20,800 shares of Actuant common stock. The underlying options were granted in 1998 and must be exercised in the next twelve months or they become invalid. These options represent approximately 7% of Mr. Lampereur's total share holdings in either Actuant stock or stock options. These transactions may take place from time-to- time after Oct. 10, 2007, subject to certain 10b5-1 plan criteria, including certain minimum price levels and daily volume activity. About Actuant Corp. Headquartered in Glendale, Wisconsin, Actuant Corp. (NYSE:ATU) -- http://www.actuant.com/-- is a diversified industrial company with operations in more than 30 countries, including Australia, Brazil, China, Hong Kong, Italy, Japan, Taiwan, United Kingdom and South Korea. The Actuant businesses are market leaders in highly engineered position and motion control systems and branded hydraulic and electrical tools and supplies. Since its creation through a spin-off in 2000, Actuant has grown its sales from US$482 million to over US$1 billion and its market capitalization from US$113 million to over US$1.5 billion. The company employs a workforce of approximately 6,000 worldwide. Actuant Corporation trades on the NYSE under the symbol ATU. As reported in the Troubled Company Reporter on June 6, 2007, Standard & Poor's Ratings Services assigned its 'BB-' rating to Actuant Corp.'s proposed US$250 million senior unsecured notes due 2017. The proceeds from the notes will be principally used to repay a portion of borrowings under the company's senior credit facility due 2009. AQUILO MANAGEMENT: Brings In Liquidators from KPMG -------------------------------------------------- Myles Anthony Halley and Richard Dixon Fleming of KPMG LLP were appointed joint liquidators of Aquilo Management Services Ltd. (formerly ABS Bodyshop Services Ltd., Aquilo Motor Services Ltd.) on Oct. 8 for the creditors' voluntary winding-up proceeding. Mr. Halley can be reached at: KPMG LLP 8 Salisbury Square London EC4Y 8BB England Mr. Fleming can be reached at: KPMG LLP 1 The Embankment Neville Street Leeds LS1 4DW England ARDENT BUILDING: J. M. Titley Leads Liquidation Procedure --------------------------------------------------------- J. M. Titley of DTE Leonard Curtis was appointed liquidator of Ardent Building Ltd. on Oct. 5 for the creditors' voluntary winding-up procedure. The liquidator can be reached at: DTE Leonard Curtis DTE House Hollins Mount Hollins Lane Bury BL9 8AT England COSTAIN GROUP: Arden Reaches Financial Close on Derby Project ------------------------------------------------------------- The Arden Partnership, Costain Group plc's 50:50 joint venture with Alfred McAlpine, has reached financial close on The Derby Project, the final project of three phased Financial Closes to be achieved in the GBP76.5 million Three Shires Batched PFI Scheme. The deal was financed by NIBC Bank NV as Lead Arranger. The scheme, for the Derbyshire Mental Health Services NHS Trust is a GBP36.4 million project for the design, build and operation of an Adult High Dependency Unit, an Older Persons HDU, an Older Adult Dementia HDU, an Older Adult Resource Centre and a Clinical Services Building, with a total area of 11,155m2, to be provided on two sites within the Derby area. Design and construction work will be carried out by Costain, and Alfred McAlpine will provide the hard FM services. Phases one and two of the batched PFI project, the GBP30 million Lincolnshire Community Hospital Project, and the GBP10.5 million Leicester Learning Disabilities Unit reached Financial Close earlier in the summer and are now both under construction. The batched PFI process was designed to allow smaller schemes to be developed under the Governments' Private Finance Initiative so that they could share in the savings made from a jointly procured approach. "We are delighted that the final phase of this unique batched PFI project has reached financial close and that all three projects are now in construction. This is another important step in our desire to be Number One in the delivery of Health Services in the U.K.," Andrew Wyllie, chief executive of Costain, said. Headquartered in Maidenhead, United Kingdom, Costain Group PLC -- http://www.costain.com/-- is an international engineering and construction group. The Company provides building, civil engineering and specialist processing services in the United Kingdom, Europe and the Middle East, Asia, the Pacific Rim and Africa. The Group's customers include businesses in the construction, marine, transport, retail hotel and utilities sectors. * * * For the half-year ended June 30, 2007, Costain Group plc reported a net profit of GBP6.2 million on GBP352.3 million of revenue, compared with a net loss of GBP18.1 million on GBP372.3 million of revenue for the same period in 2006. At Dec. 31, 2006, the Group's balance sheet showed GBP259.1 million in total assets, GBP286.3 million in total liabilities and GBP27.2 million in stockholders' deficit. The Group's Dec. 31, 2006 balance sheet also showed strained liquidity with GBP190.6 million in total current assets available to pay GBP241.3 million in total liabilities coming due within the next 12 months. Covenant Breach For the year ended Dec. 31, 2006, Costain revealed that Contract write downs and provisions in respect of their Building and International divisions had caused a breach in their banking and surety covenants. Further contract write-downs in the second half of the year resulted in the Group renegotiating all of its facilities and covenant levels to June 2008. The Group's current facility agreements, which were due to expire in June 2008, have been extended to December 2008. The group has also negotiated a further extension and enhancement of those facilities which will be conditional on Admission. EXITECH LTD: Calls In Liquidators from PricewaterhouseCoopers ------------------------------------------------------------- David James Bennettand Michael John Andrew Jervis of PricewaterhouseCoopers LLP were appointed joint liquidators of Exitech Ltd. on Oct. 5 for the creditors' voluntary winding-up proceeding. Mr. Bennett can be reached at: PricewaterhouseCoopers LLP 9 Greyfriars Road Reading RG1 1JG England Mr. Jervis can be reached at: PricewaterhouseCoopers LLP Plumtree Court London EC4A 4HT England FORD MOTOR: European Unit Sees 3.1% Sales Growth in September ------------------------------------------------------------- Ford of Europe�s 2007 sales success continued in September. Across its main 21 European markets, the company sold a record 179,200 vehicles, a 3.1 percent increase over September 2006. Market share improved to 9.8 percent. For the first nine months of the year, the company's sales increased by 5.4 percent, to 1,384,500. The Focus and Fiesta were Ford's top car models, selling 45,400 and 40,300 units respectively, while new Mondeo sold 18,350 units, its highest volume yet. Transit and Transit Connect dominated the company's commercial vehicle sales. Sales of the new Transit soared 5,300 units, to 21,200, with the Transit Connect improving by 700 units to 8,900 units. Britain was the company's top market, selling 70,800 vehicles. Share in that country was a market leading 15 percent. Elsewhere, Ford increased its sales in most of its main 21 markets, with particularly strong performances in Russia (+3,200) and in Italy (+1,265). Turkey achieved the company's highest market share, 17.8 percent, with sales of 7,360. "We enter the final months of the year in a strong position and we are optimistic that 2007 as a whole will be a year of significant sales progress for us," said Stephen Odell, Vice President, Marketing, Sales & Service, Ford of Europe. Ford's sales data includes both passenger cars and commercial vehicles from its 21 major European Sales Companies, including Russia and Turkey. Market share excludes Russia. About Ford Motor Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. 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. * * * In a TCR-Europe report on Oct. 2, 2007, Standard & Poor's Ratings Services has placed its long-term corporate credit ratings on Ford Motor Co. and related entities on CreditWatch with positive implications. The short-term 'B-3' ratings are not on CreditWatch. As reported in the Troubled Company Reporter on July 30, 2007, Moody's Investors Service said that the performance of Ford Motor Company's global automotive operations for the second quarter of 2007 was significantly stronger than the previous year and better than street expectations. However, Moody's explained that the company continues to face significant competitive and financial challenges, and the rating agency expects that Ford's credit metrics and rate of cash consumption will likely remain consistent with no higher than a B3 corporate family rating level into 2008. According to the rating agency, Ford's corporate family rating is currently a B3 with a negative outlook. The rating is pressured by the shift in consumer preference from high margin trucks and SUVs, and by the need for a new 2007 UAW contract that provides meaningful relief from high health care costs and burdensome work rules, Moody's relates. In June 2007, S&P raised the Issue Rating on Ford's senior secured credit facilities to B+ from B. NORTHERN ROCK: Confirms Negotiations With Potential Bidders ----------------------------------------------------------- In response to recent press speculation, Northern Rock plc has confirmed that it is working with a number of potentially interested parties regarding proposals for a variety of potential transactions as well as developing further options to explore with new parties as part of its review of all strategic options in the interests of shareholders, customers and other stakeholders. Northern Rock notes that this process and the discussions it is having are at a very early stage and that the proposals it has received so far are preliminary in nature. Northern Rock will continue to work with potentially interested parties to understand more fully their preliminary proposals. Any proposal which Northern Rock wished to pursue would have to be evaluated also by the Tripartite Authorities against their previously announced objectives. As reported in the TCR-Europe on Oct. 16, 2007, an international group of investors led by Richard Branson's Virgin Group Ltd. have joined the growing list of bidders for the troubled mortgage lender. According to the Wall Street Journal, Mr. Branson said the consortium's plan includes incorporating Northern Rock into Virgin Money, his group's financial unit, as well as changing the mortgage lender's name to Virgin Money. The Financial Times reveals that a Middle Eastern sovereign wealth fund has also expressed interest in joining the Virgin Group consortium, which may submit a bid for Northern Rock as early as this week. While discussions continue with selected parties, Northern Rock emphasizes that there can be no certainty as to their outcome. Northern Rock does not expect to make any further announcement in relation to these discussions until such time as there is clarity as to the outcome of its strategic review. About Northern Rock plc Headquartered in Newcastle upon Tyne, England, Northern Rock plc -- http://www.northernrock.co.uk/mortgages/-- is currently the 5th largest UK mortgage lender, the largest financial institution based in the North East of England and one of the most cost efficient UK mortgage lenders based on key performance ratios. The company had more than US$200 billion in assets at the end of June 2007. * * * As reported in the TCR-Europe on Sept. 28, 2007, Standard & Poor's Ratings Services placed its 'A-/A-1' counterparty credit ratings on U.K. bank Northern Rock PLC on CreditWatch with developing implications. At the same time, the 'BBB' subordinated, 'BB' junior subordinated, and 'A-' senior unsecured debt ratings were placed on CreditWatch with developing implications. RANK GROUP: Profit Warning Cues Moody's to Cut Rating to B1 ----------------------------------------------------------- Moody's Investors Service downgraded to B1 (from Ba3) the corporate family rating of Rank Group Plc following the company's profit warning due to material negative impacts of smoking bans and withdrawal of Section 21 gaming machines. Moody's concurrently downgraded ratings of the US$100 million guaranteed notes due 2008 and US$14.3 million guaranteed notes due 2018 at Rank Group Finance Plc to B3/LGD5/85% from B2/LGD5/84%. Ratings have been placed on review for possible further downgrade. On Oct. 12, 2007 Rank issued a profit warning which outlined a 19% like for like fall in revenues in Mecca's UK bingo business since Sept. 1, 2007 and a 9% decline in revenues in its Grosvenor Casinos unit. These declines were largely equally attributed to a combination of the ban on smoking in enclosed public places introduced in England from July 1, 2007 and in Wales from April 1, 2007 and the loss of Section 21 gaming terminals. The fall in revenues is expected to have a material negative impact on operating cash flows and EBITDA due to the structure of the company's fixed cost base. Whilst it is difficult to draw conclusions from the short five week trading period, forward visibility has considerably weakened and this is reflected in the B1 rating. Moody's previous guidance included that a total debt to EBITDA ratio above 5.5 times on an adjusted basis would indicate downward ratings pressure. Moody's now anticipate this ratio to be exceeded if performance is maintained at reduced levels. Conclusion of the review for possible further downgrade will be based on an assessment of the company's normalized future position and whether the fall in patronage and spend per visitor persists or can be reversed. This is particularly important given the magnitude of the fall in revenues even though the company has been proactive in positioning itself well in advance of these changes occurring. The company's liquidity position will also be an important ratings driver. The refinance of bank facilities earlier this year lengthened debt maturities and provided material headroom to fund the repayment of the 2008 notes. Nevertheless, cash flows could become strained if the lower operating performance and capital expenditure and dividend policies are sustained. Bank facilities are subject to covenant compliance and MAC clause. Affected ratings that remain under review for possible downgrade are: -- Corporate family rating at The Rank Group plc downgraded to B1 from Ba3. -- The rating on the US$100 million Guaranteed notes due 2008 at Rank Group Finance (guaranteed by Rank) downgraded to B3/LGD5/85% from B2/LGD5/84%. -- The rating on the US$14.3 million Guaranteed notes due 2018 at Rank Group Finance (guaranteed by Rank) downgraded to B3/LGD5/85% from B2/LGD5/84%. Rank is a gaming group with interests in casinos, bingo, online and telephone betting, mainly in the U.K. but also Spain and Belgium. The company is headquartered in Maidenhead, England. For the last 12 months to June 30, 2007 Rank reported revenues of around GBP557 million. REFCO INC: Trusts Seek Return of US$400 Mln from Former Insiders ---------------------------------------------------------------- The Refco Litigation Trusts have filed a lawsuit seeking the return of more than $400 million from former Refco Inc. insiders. The lawsuit, filed in the United States Bankruptcy Court for the Southern District of New York, seeks return of preferential and fraudulent transfers from former owners, officers and directors of Refco who participated in a massive scheme to strip assets out of Refco. The complaint alleges that the preferences and fraudulent transfers were concealed within and behind a number of fraudulently engineered financial transactions, including a surreptitious profits participation agreement funneled through Refco Group Holdings, Inc., a holding company controlled by defendant Phillip R. Bennett. Other insiders named in the action include Tone N. Grant, John D. Agoglia, Edwin L. Cox, Sukhmeet "Mickey" Dhillon, Thomas H. Dittmer, Stephen Grady, Eric Lipoff, Santo Maggio, Peter McCarthy, Joseph Murphy, Frank Mutterer, William Sexton, and Robert Trosten. The lawsuit also seeks to void the transfers of certain asset management companies and other transfers to RGHI. Another lawsuit was filed by the Trusts in the United States District Court for the Southern District of New York against former insider Thomas Hackl and companies controlled by Mr. Hackl seeking the return of more than $5 million transferred to Mr. Hackl or companies controlled by him and for damages resulting from Mr. Hackl's active participation in the fraud. "The lawsuits filed today are in addition to five other lawsuits filed by the Trusts and customers of Refco Capital Markets seeking in the aggregate more than $2 billion dollars of damages to Refco and its creditors as a direct result of the massive fraudulent scheme perpetrated for more than eight years by Mr. Bennett, with the aid and assistance of numerous insiders and third parties," Marc S. Kirschner, Trustee of the Refco Trusts, said. Over the last several days the Trusts also brought more than 180 lawsuits in the United States Bankruptcy Court for the Southern District of New York seeking in the aggregate more than $33 million from the return of preferential and fraudulent transfers, collection of accounts receivables and other causes of action against non-insiders. About the Refco Litigation Trusts The two Refco Litigation Trusts were created under the Refco Plan of Liquidation, which became effective on December 26, 2006. Marc S. Kirschner, the former Chapter 11 Trustee for Refco Capital Markets LLC, serves as Trustee for the Trusts. The primary purpose of the Trusts is to pursue all Refco estate claims and claims of certain electing creditors against third parties, with recoveries to be distributed in accordance with the terms of the Refco Plan of Liquidation. The Trusts have $25 million of funding to support their pursuit of such claims. In February 2007, the Trusts retained the law firms Milbank, Tweed, Hadley, & McCloy, LLP and Quinn Emanuel Urquhart Oliver & Hedges, LLP to assist in their work and, since then, have been engaged in a comprehensive investigation of potential claims against third parties. The Trusts have filed three lawsuits against third parties involved in the Refco frauds. About Refco Inc. Based in New York City, Refco Inc. -- http://www.refco.com/-- is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. The Company and 23 of its affiliates filed for chapter 11 protection on Oct. 17, 2005 (Bankr. S.D.N.Y. Case No. 05-60006). J. Gregory Milmoe, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Luc A. Despins, Esq., at Milbank, Tweed, Hadley & McCloy LLP, represents the Official Committee of Unsecured Creditors. Refco reported $16.5 billion in assets and $16.8 billion in debts to the Bankruptcy Court on the first day of its chapter 11 cases. The Court confirmed the Modified Joint Chapter 11 Plan of Refco Inc. and certain of its direct and indirect subsidiaries, including Refco Capital Markets Ltd. and Refco F/X Associates LLC, on Dec. 15, 2006. That Plan became effective on Dec. 26, 2006. Refco Commodity's exclusive period to file a chapter 11 plan expired on Feb. 13, 2007. REMY WORLDWIDE: Court Sets Plan Confirmation Hearing for Nov. 20 ---------------------------------------------------------------- The Honorable Kevin J. Carey will hold a hearing on Nov. 20, 2007, at 3:30 p.m. to consider the adequacy of the Debtors' Solicitation and Disclosure Statement and the Prepetition Solicitation Procedures, and to confirm the Prepackaged Plan of Reorganization. Objections, if any, must be filed by Nov. 9, 2007. Judge Carey directed the United States Trustee not to convene Section 341 meeting prior to Nov. 7, 2007. The Court will consider on that day the Debtors' request for the U.S. Trustee not to convene a 341 meeting if the Plan is confirmed within 90 days from the Petition Date. Based in Anderson, Indiana, Remy Worldwide Holdings Inc. acts as a holding company of all the outstanding capital stock of Remy International Inc. Remy International -- http://www.remyinc.com/-- manufactures, remanufactures and distributes Delco Remy brand heavy-duty systems and Remy brand starters and alternators, locomotive products and hybrid power technology. The company also provides a worldwide components core-exchange service for automobiles, light trucks, medium and heavy-duty trucks and other heavy-duty, off-road and industrial applications. Remy has operations in the United Kingdom, Mexico and Korea, among others. The company and its debtor-affiliates filed for Chapter 11 protection on Oct. 8, 2007 (Bankr. D. Del. Cases No. 07-11481 to 07-11509). Douglas P. Bartner, Esq., Fredric Sosnick, Esq., and Michael H. Torkin, Esq., at Shearman & Sterling LLP, represent the Debtors' in their restructuring efforts. Pauline K. Morgan, Esq., Edmon L. Morton, Esq., and Kenneth J. Enos, Esq., at Young Conaway Stargatt & Taylor, LLP, serve as co-counsels to the Debtors. The Debtors' claims agent is Kurtzman Carson Consultants LLC and their restructuring advisor is AlixPartners, LLC. At Sept. 30, 2006, Remy Worldwide's balance sheet showed total assets of US$919,736,000 and total liabilities of US$1,265,648,000. (Remy Bankruptcy News; Issue No. 2, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). REMY WORLDWIDE: Wants Court to Approve CVC Settlement Agreement --------------------------------------------------------------- Remy Worldwide Holdings, Inc., and its debtor-affiliates ask authority from the U.S. Bankruptcy Court for the District of Delaware to assume a Settlement, Support, Forbearance and Release Agreement, dated as of June 15, 2007, with Court Square Capital Limited, a subsidiary of Citigroup Inc., and certain holders of Remy securities to protect against the possible loss of tax benefits related to the Debtors' net operating loss carryovers. Court Square agreed, among others, to: 1. certain limitations on its ability to effectuate stock transfers and take a worthless stock deduction with respect to the shares of RWHI's equity interests it holds; and 2. compromise amounts owed to it under a December 2002 Advisory Agreement with the Debtors. The parties exchanged mutual releases under the CVC Settlement Agreement. Remy also agreed to pay Court Square US$4,000,000 in cash on the effective date of Remy's prepackaged plan of reorganization and to assume the CVC Settlement Agreement promptly upon filing for bankruptcy. About US$1,750,000 of the Settlement Payment will be paid to Court Square Advisor, LLC, and US$2,250,000 will go to Citicorp Venture Capital Equity Partners L.P. If Court Square does not receive the payment by June 15, 2008, the payment will begin to accrue interest at 20% per annum as of that date, until paid in full. Court Square and the Noteholders also agreed to support the Debtors' Plan. Court Square acquired Delco Remy International, Inc., in March 2001 pursuant to a merger transaction. Court Square, through its affiliates, currently holds roughly 70% of RWHI Equity Interests. Court Square may terminate the CVC Settlement Agreement if, among other things, (i) the Plan is inconsistent with the terms of the Settlement Agreement, (ii) the Bankruptcy Court does not approve the assumption of the Agreement or (iii) if certain provisions of the deal are severed, disallowed, modified, amended, withdrawn, or deemed invalid or unenforceable. In the event of termination, Court Square could sell its RWHI equity securities or, if the Debtors not emerge from bankruptcy during the 2007 calendar year, claim a worthless stock deduction and cause an ownership change with respect to the company under Section 382 of the Tax Code prior to the Effective Date. An ownership change effectively would eliminate the Debtors' ability to use their existing NOLs to offset future income of Reorganized Remy. Reasonable Business Judgment Section 365 of the Bankruptcy Code provides that the trustee, "may assume or reject any executory contract or unexpired lease of the Debtor." The standard for a bankruptcy court's approval of a motion to assume under Section 365 is whether the debtor's reasonable business judgment supports assumption, Douglas P. Bartner, Esq., at Shearman & Sterling LLP, in New York, the Debtors' proposed counsel, reminds Judge Carey, citing NLRB v. Bildisco & Bildisco, 465 U.S. 513,523 (1984); Group of Inst. Investors v. Chicago, Milw., St. Paul & Pac. R.R. Co., 318 U.S. 523, 550 (1943); Meyers v. Martin (In re Martin), 91 F.3d 389, 395 (3d Cir. 1996); In re Market Square Inn, Inc., 978 F.2d 116, 121 (3d Cir. 1992); In re Taylor, 913 F.2d 102 (3d Cir. 1990); and Sharon Steel Corp. v. Nat'l Fuel Gas Distrib. Corp. (In re Sharon Steel Corp.), 872 F.2d 36, 40 (3d Cir. 1989). Preserving the NOLs could provide significant tax savings to the Debtors following their emergence from Chapter 11 because it will reduce, and potentially completely offset, the potential effects of "cancellation of debt" income to be incurred by the Debtors as a result of the debt restructuring contemplated by the Plan, Mr. Bartner explained. The Settlement also lets the Debtors' estate avoid claims by Court Square as a result of the rejection of the Advisory Agreement. "The benefit derived from assumption [of the Settlement] could last for years to the extent that the Reorganized Debtors are able to utilize the NOLs," Mr. Bartner said. The CVC Settlement Agreement was negotiated in good faith and at arm's-length, Mr. Bartner assured the Court. Court Square's affiliates holding Remy Equity Interests are: a) Court Square Advisor, LLC b) Court Square Capital Limited * 1,000 Shares Class A Common Stock c) Citicorp Venture Capital Equity Partners, L.P. * 1,735,711.17 Shares Class B Common Stock * 16,378.57 Shares Class C Common Stock * 1,620,406.51 Shares Series A Preferred Stock d) CVC Management LLC e) CVC/SSB Employee Fund, L.P. * 17,278.89 Shares Class B Common Stock * 163.15 Shares Class C Common Stock * 16,131.04 Shares Series A Preferred Stock f) CVC Executive Fund LLC * 15,395.57 Shares Class B Common Stock * 145.28 Shares Class C Common Stock * 14,372.83 Shares Series A Preferred Stock g) CVC Partners, LLC - Court Square is represented in the Debtors' cases by H. Jeffrey Schwartz, Esq., at Dechert LLP, in New York. The Noteholders that signed the CVC Settlement Agreement are: 1. Fidelity National Special Opportunity Inc.; 2. Hoak & Co.; 3. Third Point LLC; 4. H Partners LP; 5. Joshua Tree Capital Partners, LP; 6. Corriente Master Fund, L.P.; and 7. Group G Capital Partners LLC 8. Ore Hill Hub Fund Ltd., Geer Mountain Financing, Ltd., Kinney Hill Credit Opportunities Fund, Ltd.; The Noteholders are represented by Fred S. Hodara, Esq., at Akin Gump Strauss Hauer & Feld LLP, in New York. About Remy Worldwide Based in Anderson, Indiana, Remy Worldwide Holdings Inc. acts as a holding company of all the outstanding capital stock of Remy International Inc. Remy International -- http://www.remyinc.com/-- manufactures, remanufactures and distributes Delco Remy brand heavy-duty systems and Remy brand starters and alternators, locomotive products and hybrid power technology. The company also provides a worldwide components core-exchange service for automobiles, light trucks, medium and heavy-duty trucks and other heavy-duty, off-road and industrial applications. Remy has operations in the United Kingdom, Mexico and Korea, among others. The company and its debtor-affiliates filed for Chapter 11 protection on Oct. 8, 2007 (Bankr. D. Del. Cases No. 07-11481 to 07-11509). Douglas P. Bartner, Esq., Fredric Sosnick, Esq., and Michael H. Torkin, Esq., at Shearman & Sterling LLP, represent the Debtors' in their restructuring efforts. Pauline K. Morgan, Esq., Edmon L. Morton, Esq., and Kenneth J. Enos, Esq., at Young Conaway Stargatt & Taylor, LLP, serve as co-counsels to the Debtors. The Debtors' claims agent is Kurtzman Carson Consultants LLC and their restructuring advisor is AlixPartners, LLC. At Sept. 30, 2006, Remy Worldwide's balance sheet showed total assets of US$919,736,000 and total liabilities of US$1,265,648,000. (Remy Bankruptcy News; Issue No. 3, Bankruptcy Creditors' Service, Inc., http://bankrupt.com/newsstand/or 215/945-7000). ********* 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *