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 Thursday, October 18, 2007, Vol. 8, No. 207 Headlines A U S T R I A E.BEKASSY-BEKAS KEG: Claims Registration Period Ends Oct. 22 G & P GRISSENBERGER: Claims Registration Period Ends Oct. 23 JAV LLC: Estate Administrator Declares Insufficient Assets KARL LOCKAUER: Claims Registration Period Ends Oct. 23 REVE LLC: Claims Registration Period Ends Oct. 20 RUDOLF GABMANN: Vienna Court Orders Business Shutdown VIENNA-TRADING LLC: Claims Registration Period Ends Oct. 25 WITZANI BPM: Claims Registration Period Ends Oct. 23 B E L G I U M ARVINMERITOR INC: Inks Joint Venture Pact with TRW Automotive ARVINMERITOR INC: Signs Six-Year Contract with Electronic Data F R A N C E ARROW ELECTRONICS: Earns US$99.2 Mln in Quarter Ended June 30 G E R M A N Y AZIDA HOLZ- UND DACHBAU: Claims Registration Ends November 30 CALL NOW: Claims Registration Ends November 30 CNTA GMBH: Claims Registration Ends November 12 COIL CONTAINER: Claims Registration Ends November 22 DMX-BAU GMBH: Claims Registration Ends November 30 HECKLER & KOCH: S&P Rates EUR120 Million Senior Notes at B- IKB DEUTSCHE: PwC Report Cites Risk Management Deficiencies IKB DEUTSCHE: Restructures Board & Realigns Business Model IKB DEUTSCHE: Sees Higher 2007 Loss Due to Restructuring Costs LMS LOGISTIK: Claims Registration Period Ends Nov. 26 MARIENTHALER GASTHOF: Claims Registration Period Ends Nov. 26 MOTHERMIK GMBH: Claims Registration Period Ends Nov. 23 OVERINGSHOF PROJEKT: Claims Registration Ends November 30 STRUTHMANN GMBH: Claims Registration Period Ends Oct. 30 TISCHLEREI SCHMELING: Claims Registration Period Ends Oct. 30 UNI-ELEKTRONIK GMBH: Claims Registration Period Ends Oct. 30 WOHNMOEBEL-VERWALTUNGS GMBH: Claims Period Ends on Oct. 25 I R E L A N D ELAN CORP: Third Parties Eye Biogen Acquisition ELAN CORPORATION: FDA Extends TYSABRI Review Until Jan. 13, 2008 I T A L Y ALITALIA SPA: Baldassarre Group Eyes Three-Year Restructuring FIAT SPA: Finance Unit to Repay EUR123.4 Million Bonds K A Z A K H S T A N BASTAU OJSC: Proof of Claim Deadline Slated for Nov. 23 BEST OIL: Creditors Must File Claims Nov. 23 BM TRADE: Claims Filing Period Ends Nov. 23 MEHANOMONTAGE OJSC: Creditors' Claims Due on Nov. 23 NESTLE FOOD: Claims Registration Ends Nov. 23 SEITKOJA LLP: Proof of Claim Deadline Slated for Nov. 20 UJBAT TRADING: Creditors Must File Claims Nov. 20 ZHETYSU COMMERCE: Claims Filing Period Ends Nov. 23 K Y R G Y Z S T A N ASIA-MEGA-CENTRE LLC: Creditors Must File Claims by November 21 N E T H E R L A N D S FIRST DATA: Expands Commercial Payment Markets on Deecal Buy FIRST DATA: Moody's Rates US$3.75 Bln Sr. Unsecured Notes at B3 FIRST DATA: Fitch Rates US$2 Billion Sr. Unsecured Notes at B- P O L A N D AFFILIATED COMPUTER: Earns US$37.6 Million in Fourth Quarter SYMMETRY MEDICAL: Reveals Accounting Errors at U.K. Unit R U S S I A ALAPAEVSKENERGOGASPROM LLC: Creditors Must File Claims by Nov. 5 ARZAMASTSEVSKIJ PRODUCTION: Asset Sale Slated for Nov. 6 CHEBOKSARY-AVIA OJSC: Creditors Must File Claims by Nov. 6 ENGELS KOLKHOZ: Asset Sale Slated for November 14 FOOD INTEGRATED 4: Creditors Must File Claims by Nov. 6 GALBSTADT CJSC: Creditors Must File Claims by Dec. 6 MOUNTING WORKPIECES: Creditors Must File Claims by Dec. 6 NERCHINSKAYA CJSC: Bankruptcy Hearing Slated for Feb. 13 NOVOTOMNIKOVSKIJ LLC: Creditors Must File Claims by Nov. 6 ROSNEFT OIL: Earns US$7.66 Billion for Second Quarter 2007 RUSPROMBANK LLC: Creditors Must File Claims by Dec. 6 SISTEMA JSFC: Buys 28.16% Stake in Dalcombank for US$11.7 Mln SVETLANA-MICROELECTRONICS: Creditors Must File Claims by Nov. 6 S W I T Z E R L A N D AGOS LLC: Creditors' Liquidation Claims Due October 31 BFU MEDIA: Zug Court Closes Bankruptcy Proceedings CARROSSERIE METE: Creditors' Liquidation Claims Due November 5 ICP-EFTPOS JSC: Creditors' Liquidation Claims Due October 31 ISOTIS INC: Adjourns Special Stockholders Meeting to October 23 LENT ELECTRONICS: Aargau Court Starts Bankruptcy Proceedings MASSIVHAUS SWISS: Aargau Court Starts Bankruptcy Proceedings REICHEN TRANSPORTE: Solothurn Court Closes Bankruptcy Process TECHDOC LLC: Creditors' Liquidation Claims Due November 15 U-POINT LLC: Creditors' Liquidation Claims Due October 25 XEBION LLC: Creditors' Liquidation Claims Due November 21 T U R K E Y ULKER BISKUVI: Moody's Lifts B1 Corporate Family Rating to Ba3 U K R A I N E BI GLOBAL: Creditors Must File Claims by October 19 IVANO-FRANKOVSK RENT 1: Proofs of Claim Deadline Set October 19 LANOVTSY LLC: Proofs of Claim Deadline Set October 19 NOVOPETROVSKAYA LLC: Creditors Must File Claims by October 19 SPECIAL SECONDARY: Creditors Must File Claims by October 19 UKRAINA BANK: Liquidator Receives UAH230,000 in August U N I T E D K I N G D O M ATLANTIC CARRIERS: Claims Filing Period Ends November 14 BAUSCH & LOMB: Moody's Withdraws PIK & Sub Notes Ratings BAXI HOLDINGS: S&P Affirms B Credit Ratings on Amended Financing BRITISH AIRWAYS: CEO Says Iberia Deal is “Not Transformational” BROOKES SPECIALIST: Brings In Liquidators from Mazars CABLE & WIRELESS: Dismisses Speculation on Business Disposal COOPER TIRE: Closes US$7MM Rongcheng Stake Sale to ArcelorMittal ELEKSEN GROUP: Brings In Joint Administrators from Deloitte FAREPAK FOOD: 97% of Creditors Vote to Liquidate Assets FOCUS DIY: Moody's Withdraws Caa3 Corporate Family Rating FORD MOTOR: Expects to Sell British Marques in Two Months GENERAL MOTORS: S&P Keeps Ratings on CreditWatch Positive LUDGATE HEALTH: Taps Liquidators from UHY Hacker Young MARKFIELD SERVICES: Appoints Liquidator from Deloitte & Touche RHINEBRIDGE PLC: S&P Junks Capital Notes; Fails Loss Limit Test SHAW GROUP: Names Brian Ferraioli as Chief Financial Officer SOUTH QUAY: Claims Filing Period Ends November 5 SOUTHEND ENTERPRISE: Claims Filing Period Ends December 10 SYMMETRY MEDICAL: Reveals Accounting Errors at U.K. Unit V L COLLECTIONS: Names Michael C. Kienlen Liquidator VIEWFRAME PICTURES: Taps Joint Administrators from BDO Stoy * Featured Conferences by Beard Audio for October 2007 * Upcoming Meetings, Conferences and Seminars ********* ============= A U S T R I A ============= E.BEKASSY-BEKAS KEG: Claims Registration Period Ends Oct. 22 ------------------------------------------------------------ Creditors owed money by KEG E.Bekassy-Bekas (FN 279555k) have until Oct. 22 to file written proofs of claim to court-appointed estate administrator Gerhard Lesjak at: Mag. Gerhard Lesjak Pfarrplatz 17/2 9020 Klagenfurt Austria Tel: 0463/59 00 52 Fax: 0463/59 00 52-20 E-mail: office@ra-lesjak.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Oct. 29 for the examination of claims. The meeting of creditors will be held at: The Land Court of Klagenfurt Conference Hall 225 Second Floor Klagenfurt Austria Headquartered in Klagenfurt, Austria, the Debtor declared bankruptcy on Sept. 17 (Bankr. Case No. 41 S 93/07k). G & P GRISSENBERGER: Claims Registration Period Ends Oct. 23 ------------------------------------------------------------ Creditors owed money by LLC G & P Grissenberger & Partner (FN 129007t) have until Oct. 23 to file written proofs of claim to court-appointed estate administrator Walter Eisl at: Dr. Walter Eisl Ardaggerstrasse 14 3300 Amstetten Austria Tel: 07472/685 40 Fax: 07472/68540/15 E-mail: ra.dr.eisl@comteam.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:50 a.m. on Nov. 13 for the examination of claims. The meeting of creditors will be held at: The Land Court of St. Poelten Room 216 Second Floor Old Building St. Poelten Austria Headquartered in Euratsfeld, Austria, the Debtor declared bankruptcy on Sept. 14 (Bankr. Case No. 14 S 160/07f). JAV LLC: Estate Administrator Declares Insufficient Assets ---------------------------------------------------------- Dr. Werner Stanek, the court-appointed estate administrator for LLC JAV (FN 281566v), declared Sept. 19 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 Sept. 12 (Bankr. Case No. 38 S 51/07p). The estate administrator can be reached at: Dr. Werner Stanek Wollzeile 33/20 1010 Vienna Austria Tel: 512 29 02 Fax: 512 29 02 30 E-mail: werner-stanek@chello.at KARL LOCKAUER: Claims Registration Period Ends Oct. 23 ------------------------------------------------------ Creditors owed money by KEG Karl Lockauer (FN 184314a) have until Oct. 23 to file written proofs of claim to court-appointed estate administrator Gerhard Taufner at: Dr. Gerhard Taufner Bahnhofstrasse 5 3390 Melk Austria Tel: 02752/5 24 66 Fax: 02752/5 25 74 E-mail: rechtsanwalt.taufner@taufner.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 2:00 p.m. on Nov. 6 for the examination of claims. The meeting of creditors will be held at: The Land Court of St. Poelten Room 216 Second Floor Old Building St. Poelten Austria Headquartered in Huerm, Austria, the Debtor declared bankruptcy on Sept. 17 (Bankr. Case No. 14 S 161/07b). REVE LLC: Claims Registration Period Ends Oct. 20 ------------------------------------------------- Creditors owed money by LLC REVE (FN 211187w) have until Oct. 20 to file written proofs of claim to court-appointed estate administrator Wolfgang Winkler at: Mag. Wolfgang Winkler Reisnerstrasse 32/12 1030 Vienna Austria Tel: 71 55 045 Fax: 71 55 0474 Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on Nov. 6 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1607 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 18 (Bankr. Case No. 28 S 104/07h). RUDOLF GABMANN: Vienna Court Orders Business Shutdown ----------------------------------------------------- The Trade Court of Vienna entered Sept. 20 an order shutting down the business of LLC Rudolf Gabmann (FN 74374z). Court-appointed estate administrator Johannes Jaksch recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Johannes Jaksch c/o Dr. Stephan Riel Landstrasser Hauptstrasse 1/2 1030 Vienna Austria Tel: 713 44 33 Fax: 713 10 33 E-mail: kanzlei@jsr.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 7 (Bankr. Case No 4 S 104/07g). Stephan Riel represents Dr. Jaksch in the bankruptcy proceedings. VIENNA-TRADING LLC: Claims Registration Period Ends Oct. 25 ----------------------------------------------------------- Creditors owed money by LLC Vienna-Trading (FN 100642d) have until Oct. 25 to file written proofs of claim to court-appointed estate administrator Wolfgang Mayrhofer at: Mag. Wolfgang Mayrhofer Raiffeisenpromenade 2 3830 Waidhofen/Thaya Austria Tel: 02842/52005-0 Fax: 02842/52005-50 E-mail: waidhofen@wvanwalt.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 8:30 a.m. on Nov. 14 for the examination of claims. The meeting of creditors will be held at: The Land Court of Krems an der Donau Hall A Second Floor Krems an der Donau Austria Headquartered in Vitis, Austria, the Debtor declared bankruptcy on Sept. 20 (Bankr. Case No. 9 S 55/07x). WITZANI BPM: Claims Registration Period Ends Oct. 23 ---------------------------------------------------- Creditors owed money by LLC Witzani BPM (FN 180932b) have until Oct. 23 to file written proofs of claim to court-appointed estate administrator Walter Anzboeck at: Dr. Walter Anzboeck Stiegengasse 8 3430 Tulln Austria Tel: 02272/61 600 Fax: 61600-20 E-mail: Anwalt@anzboeck.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 11:10 a.m. on Nov. 13 for the examination of claims. The meeting of creditors will be held at: The Land Court of St. Poelten Room 216 Second Floor Old Building St. Poelten Austria Headquartered in Nitzing, Austria, the Debtor declared bankruptcy on Sept. 14 (Bankr. Case No. 14 S 159/07h). ============= B E L G I U M ============= ARVINMERITOR INC: Inks Joint Venture Pact with TRW Automotive ------------------------------------------------------------- TRW Automotive Aftermarket, a business of TRW Automotive Holdings Corp., entered into an agreement to create a Joint Venture with ArvinMeritor Inc. to distribute Gabriel and TRW branded shock absorber ranges for the European independent aftermarket. The intention is for the Joint Venture to begin operation and distribution in January 2008. "Shock absorbers are an integral element of our core chassis portfolio,” Francois Augnet, vice president for TRW Automotive Aftermarket Europe and Asia Pacific, said. “We already offer a comprehensive TRW branded range to our European customers and are committed to enhancing it with the Gabriel programme to maintain and develop our leading chassis position in the European aftermarket." "By combining the strengths of ArvinMeritor's engineering and manufacturing competencies and the Gabriel brand name with TRW's extensive sales and distribution network we are confident that we can roll out successful shock absorber programmes for the European independent aftermarket," Mr. Augnet continued. With the recent sale of its European exhaust aftermarket business, ArvinMeritor has sharpened its focus on original equipment manufacturer systems engineering. This includes a renewed emphasis on its global ride control business. With the Joint Venture, TRW and ArvinMeritor will jointly control the future marketing, sales and distribution of the Gabriel and TRW aftermarket programmes throughout Western, Central and Eastern Europe. "This is a great example of how both partners can share in the investment, as well as reap the benefits,” Marlen Silverii, general manager for ArvinMeritor's global ride control aftermarket business added. “The Gabriel aftermarket product line is technically very strong, and when partnered with TRW's growing aftermarket presence, it will offer our aftermarket customers a strong chassis alternative." About TRW Automotive Headquartered in Livonia, Michigan, TRW Automotive Holdings Corp. (NYSE: TRW) -- http://www.trwauto.com/-- is an automotive supplier. Through its subsidiaries, it employs approximately 63,800 people in 26 countries. TRW Automotive products include integrated vehicle control and driver assist systems, braking systems, steering systems, suspension systems, occupant safety systems (seat belts and airbags), electronics, engine components, fastening systems and aftermarket replacement parts and services TRW Automotive Aftermarket provides high quality replacement parts, service, diagnostics and technical support to both the independent aftermarket and the vehicle manufacturer service channels. About Arvinmeritor Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- supplies integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets. ArvinMeritor employs about 19,000 people in 25 countries including China, India, Japan, Singapore, Thailand, Australia, Venezuela, Brazil, Argentina, Belgium, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Spain, Sweden, Switzerland, United Kingdom, among others. * * * As reported in the Troubled Company Reporter on Oct. 9, 2007, Fitch Ratings downgraded its ratings on ArvinMeritor Inc. including Issuer Default Rating to 'BB-' from 'BB'; Senior secured revolver to 'BB' from 'BB+'; and Senior unsecured notes to 'B+' from 'BB-'. The rating outlook is negative. Standard & Poor's Ratings Services lowered its corporate credit rating and related ratings on ArvinMeritor Inc. to 'B+' from 'BB-'. The outlook is negative. Moody's Investors Service downgraded ArvinMeritor's Corporate Family Rating to B1 from Ba3 and maintained the outlook at stable. Moody's also lowered its ratings on the company's secured bank obligations (to Ba1, LGD-1, 8% from Baa3, LGD-2, 13%) and unsecured notes (to B2, LGD-4, 63% from B1, LGD-4, 63%). The Probability of Default is changed to B1 from Ba3, while the company's Speculative Grade Liquidity rating remains SGL-2. Moody's said the outlook is stable. ARVINMERITOR INC: Signs Six-Year Contract with Electronic Data -------------------------------------------------------------- ArvinMeritor Inc. and Electronic Data Systems Corp. has recently signed a new, six-year agreement for EDS to manage the tier-one automotive supplier's U.S. and Canadian Information Systems infrastructure services. EDS will help enable enhanced capabilities, promote predictability in the system and speed ArvinMeritor's ability to change with the evolving business climate. "As we continue our transformation, we look to EDS as a partner that has extensive IS and industry experience," said Jay McLean, vice president of service delivery, Information Systems, for ArvinMeritor. "Together, we will enhance our IS infrastructure to one that is optimized for scale and reliability as we face the challenges of today's marketplace." With the agreement, EDS will assume responsibility for ArvinMeritor's IS infrastructure, which includes consolidating and hosting its midrange servers and mainframe computers in EDS data centers. EDS will provide support for the manufacturer's data and voice networks, desktop and other end-user computing services, electronic messaging, and provide global call center services. This enhanced IS infrastructure will standardize and modernize tools and processes to increase quality and reduce ArvinMeritor's total cost of ownership for its IS environment. "As we launch this new contract, we are committed to establishing a strong relationship," said Jeff Kelly, executive vice president and manufacturing leader at EDS. "Our goal is to transform ArvinMeritor's IS environment in support of its strategic initiatives with a secure, reliable global platform essential for long-term sustainable growth." EDS Agility Alliance partners Sun Microsystems and EMC will provide products and services to ArvinMeritor related to the consolidation of its midrange and data storage environments. The EDS Agility Alliance is a coalition of companies globally recognized for their quality, products and value to clients. Its mission is to innovate, develop and deliver the EDS Agile Enterprise Platform - EDS' next-generation global delivery system. Together, EDS and its Agility Alliance partners collaborate to design, build and run a market-leading services platform and develop technology-based services to deliver tangible client results. EDS Agility Alliance partners include Cisco, EMC, Microsoft, Oracle, SAP, Sun Microsystems and Xerox. EDS has significant industry-based knowledge in the automotive, aerospace and defense, high tech and industrial manufacturing segments, with more than 30 years of experience working with manufacturers. More than 20,000 EDS employees serve over 220 manufacturing clients in 40 countries. About Electronic Data Electronic Data Systems Corp. -- http://www.eds.com/-- (NYSE: EDS) is a leading global technology services company delivering business solutions to its clients. EDS founded the information technology outsourcing industry 45 years ago. Today, EDS delivers a broad portfolio of information technology and business process outsourcing services to clients in the manufacturing, financial services, healthcare, communications, energy, transportation, and consumer and retail industries and to governments around the world. About ArvinMeritor Headquartered in Troy, Michigan, ArvinMeritor, Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- supplies integrated systems, modules and components to the motor vehicle industry. The company serves light vehicle, commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets. ArvinMeritor employs about 29,000 people at more than 120 manufacturing facilities in 25 countries. These countries are: China, India, Japan, Singapore, Thailand, Australia, Venezuela, Brazil, Argentina, Belgium, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Spain, Sweden, Switzerland, United Kingdom, among others. * * * As reported in the Troubled Company Reporter on Oct. 9, 2007, Fitch Ratings downgraded its ratings on ArvinMeritor Inc. including Issuer Default Rating to 'BB-' from 'BB'; Senior secured revolver to 'BB' from 'BB+'; and Senior unsecured notes to 'B+' from 'BB-'. The rating outlook is negative. Standard & Poor's Ratings Services lowered its corporate credit rating and related ratings on ArvinMeritor Inc. to 'B+' from 'BB-'. The outlook is negative. Moody's Investors Service downgraded ArvinMeritor's Corporate Family Rating to B1 from Ba3 and maintained the outlook at stable. Moody's also lowered its ratings on the company's secured bank obligations (to Ba1, LGD-1, 8% from Baa3, LGD-2, 13%) and unsecured notes (to B2, LGD-4, 63% from B1, LGD-4, 63%). The Probability of Default is changed to B1 from Ba3, while the company's Speculative Grade Liquidity rating remains SGL-2. Moody's said the outlook is stable. =========== F R A N C E =========== ARROW ELECTRONICS: Earns US$99.2 Mln in Quarter Ended June 30 ------------------------------------------------------------- Arrow Electronics Inc. reported second quarter 2007 net income of $99.2 million on sales of $4.04 billion, compared with net income of $92.8 million on sales of $3.44 billion in the second quarter of 2006. Sales increased 17% year over year. Excluding certain items impacting the comparability of the second quarters of 2007 and 2006, on a non-GAAP basis, net income for the quarter ended June 30, 2007, would have been $101.5 million and net income for the quarter ended June 30, 2006, would have been $94.7 million. "We continue to execute well on our strategic initiatives as evidenced by our record results. We achieved record sales, generated an impressive level of cash flow, and managed our asset base to a record low level of working capital to sales," said William E. Mitchell, chairman, president and chief executive officer. "We have made strong strategic moves over the last 18 months that have resulted in a more diverse revenue stream, a broader geographic footprint, and increased opportunities in fast-growing product segments." Global enterprise computing solutions sales of $1.27 billion increased 78% sequentially and 103% year over year on strong growth in industry standard servers, storage, software, and services. Growth was aided by the impact of the acquisitions of KeyLink Systems Group, Alternative Technology Inc. and the storage and security distribution business of InTechnology plc. "Our strategic transformation in global ECS is producing impressive results as we grew sales at almost four times the rate at which the market is expected to grow. Global ECS now represents approximately one-third of our business, further diversifying and reducing the volatility of our revenue stream. By further executing on significant cross-selling opportunities, pursuing our strategic focus on the mid-market and leveraging our unique software capabilities, we expect to continue to outgrow the market. With increased scale, scope and flexibility, our strategy is proving out every day with our customers and vendors," said Mitchell. Global components sales of $2.77 billion were essentially flat with the first quarter on fewer shipping days. Sales decreased 2% year over year as the well-publicized weakness within the large EMS customer base continued in North America and Asia Pacific. The company's results for the second quarter of 2007 and 2006 include the items outlined below that impact their comparability: -- during the second quarter of 2007, the company recorded a net restructuring charge of $2.9 million, primarily related to initiatives taken by the company in the period to improve operating efficiencies. -- during the second quarter of 2007, the company recorded an integration charge of $500,000, primarily related to the acquisition of KeyLink. -- during the second quarter of 2006, the company recorded a $3.1 million restructuring charge. Arrow's net income for the first six months of 2007 was $195.5 million on sales of $7.54 billion, compared with net income of $174.3 million on sales of $6.63 billion in the first six months of 2006. At June 30, 2007, the company's consolidated balance sheet showed $7.38 billion in total assets, $4.13 billion in total liabilities, and $3.25 billion in total shareholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended June 30, 2007, are available for free at http://researcharchives.com/t/s?244b About Arrow Electronics Headquartered in Melville, New York, Arrow Electronics Inc. -- 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. * * * Arrow Electronics senior subordinated stock continues to carry Moody's Investors Service's Ba1 rating. The company's senior preferred stock is rated at Ba2. ============= G E R M A N Y ============= AZIDA HOLZ- UND DACHBAU: Claims Registration Ends November 30 ------------------------------------------------------------- Creditors of AZIDA Holz- und Dachbau GmbH have until Nov. 30 to register their claims with court-appointed insolvency manager Sebastian Nolte. Creditors and other interested parties are encouraged to attend the meeting at 10:15 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 Meiningen Meeting Hall A 0105 Lindenallee 15 98617 Meiningen 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: Sebastian Nolte Peterstr. 5 99084 Erfurt Germany The District Court of Meiningen opened bankruptcy proceedings against AZIDA Holz- und Dachbau GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AZIDA Holz- und Dachbau GmbH Obere Gasse 4 98667 Schoenbrunn Germany CALL NOW: Claims Registration Ends November 30 ---------------------------------------------- Creditors of Call Now Verwaltungsgesellschaft mbH have until Nov. 30 to register their claims with court-appointed insolvency manager Dr. Sabine Aldermann. Creditors and other interested parties are encouraged to attend the meeting at 9:15 a.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 Dortmund Hall 3.201 Second Floor Gerichtsplatz 1 44135 Dortmund Germany The Court will verify the claims set out in the insolvency manager's report at 9:00 a.m. on Jan. 29, 2008 at the same venue, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Sabine Aldermann Landgrafenstr. 2 a 44139 Dortmund Germany The District Court of Dortmund opened bankruptcy proceedings against Call Now Verwaltungsgesellschaft mbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Call Now Verwaltungsgesellschaft mbH Langestrasse 1 44137 Dortmund Germany Attn: Patrick Senn, Manager Parkguertel 15 50823 Cologne Germany CNTA GMBH: Claims Registration Ends November 12 ----------------------------------------------- Creditors of CNTA GmbH have until Nov. 12 to register their claims with court-appointed insolvency manager Manfred Gottschalk. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Bochum Hall A29 Ground Floor Main Building Viktoriastrasse 14 44787 Bochum Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Manfred Gottschalk Kirchender Dorfweg 14 58313 Herdecke Germany The District Court of Bochum opened bankruptcy proceedings against CNTA GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CNTA GmbH Kleinbahnhof 1 58456 Witten Germany Attn: Dieter Lenke, Manager Blumenstr. 82 99192 Erfurt Germany COIL CONTAINER: Claims Registration Ends November 22 ---------------------------------------------------- Creditors of Coil Container Internationale Logistik GmbH have until Nov. 22 to register their claims with court-appointed insolvency manager Georg Henningsmeier. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Dec. 20, 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 Cuxhaven Hall 112 Old Building Deichstr. 12 A 27472 Cuxhaven 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: Georg Henningsmeier Osdorfer Landstr. 230 22549 Hamburg Germany Tel: 040 8078810 Fax: 040 807881-20 The District Court of Cuxhaven opened bankruptcy proceedings against Coil Container Internationale Logistik GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Coil Container Internationale Logistik GmbH Am Seepark 39 27607 Langen Germany Attn: Wolfgang Linke, Manager Geschwornenweg 174 28201 Bremen Germany DMX-BAU GMBH: Claims Registration Ends November 30 -------------------------------------------------- Creditors of DMX-Bau GmbH have until Nov. 30 to register their claims with court-appointed insolvency manager Dr. Harald Schwartz. Creditors and other interested parties are encouraged to attend the meeting at 4:00 p.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 Amberg Room 115 Meeting Hall V First Floor Baustadelgasse 1 Amberg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Harald Schwartz Waisenhausgasse 3-4 92224 Amberg Germany Tel: 09621/91100 Fax: 09621/911022 The District Court of Amberg opened bankruptcy proceedings against DMX-Bau GmbH on Sept. 27. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: DMX-Bau GmbH Weiher 11 92289 Ursensollen Germany HECKLER & KOCH: S&P Rates EUR120 Million Senior Notes at B- ----------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B-' senior secured debt rating on the EUR120 million 9.25% senior secured notes issued by Germany-based small-arms defense contractor Heckler & Koch GmbH (B-/Negative/--). At the same time, S&P assigned a recovery rating of '4' to the debt, indicating our expectation of average (30%-50%) recovery in the event of a payment default. Recovery prospects are based on a discrete-asset valuation and are supported by a favorable insolvency regime and an absence of prior-ranking liabilities. The security package is comprised of the issuer's shares pledge and subsidiaries' guarantees, which we consider weak. The recovery rating of '4' assumes that the guarantees provided by the company's subsidiaries are enforceable, and that its unfunded pension liabilities remain at the current level of about EUR50 million (including the EUR13.5 million IFRS pension adjustment). In addition, the amount of bid, performance, and advance payment bond facilities available at default is assumed to be about EUR30 million. This is at the same level as reported in December 2006, excluding the Barclays Bank facility which requires a bank balance for the corresponding amount. Should these figures materially change, S&P will review the recovery rating. IKB DEUTSCHE: PwC Report Cites Risk Management Deficiencies ----------------------------------------------------------- The Supervisory Board and the Board of Managing Directors of IKB Deutsche Industriebank AG have evaluated the report prepared by PricewaterhouseCoopers in connection with the crisis affecting the US subprime mortgage market and agreed with PwC’s risk assessment. Within the scope of the report, PwC determined the risk situation of the IKB Group. PwC also analyzed how the bank’s risk-bearing capacity could have been compromised by Rhineland Funding Capital Corporation (Rhineland Funding), to the extent seen. In addition, PwC assessed IKB’s accounting and valuation policies and evaluated the appropriateness of its risk management and control processes, taking into account the bank’s wholly-owned subsidiary IKB Credit Asset Management GmbH (IKB CAM). PwC were also asked to investigate whether the Supervisory Board was informed sufficiently and accurately by the Board of Managing Directors about IKB’s risk situation. Key Findings Risk Situation The PwC report analyzed the bank’s risk situation, taking into account the cover provided by the risk shield. The risk shield includes the assumption by KfW and the pool of banks of IKB's financial obligations under the EUR8.1 billion liquidity commitments to Rhineland Funding, and it covers further risks IKB was exposed to vis-a-vis other liquidity providers to Rhineland Funding. IKB’s remaining risk positions relating to Rhineland Funding do not present a meaningful risk of default. The pool of banks led by KfW will assume first losses on certain risk positions carried on IKB’s balance sheet up to an amount of EUR1 billion. These risk positions are related to a portfolio with an aggregate volume of EUR3.3 billion comprising sub-prime assets, securities exposed to strong market fluctuations, and first-loss pieces or assets exposed to particularly high default risk. Irrespective thereof, IKB continues to carry investments on its balance sheet that are outside the risk shield. This portfolio, amounting to approximately EUR3 billion, is exposed to significantly lower risks than the EUR3.3 billion protected by the pool of banks. Further expected restructuring charges, including the default risk exposure at Rhinebridge are included in the full year forecast for the current financial year of the expected Group loss under IFRS of up to EUR700 million. Rhinebridge is a structured investment vehicle sponsored by IKB that like Rhineland Funding had invested in collateralized loan obligations and is exposed to certain sub-prime investments. Risk Management and Control Processes A central issue criticized by PwC's report concerns deficiencies in risk analysis, risk management, and reporting for both on- balance and off-balance portfolio investments. These investments had increased considerably, as they provided a significant contribution to realizing the bank’s ambitious growth targets. To a large degree, the management of these portfolio investments had been entrusted to IKB CAM. The resulting role and importance assigned to IKB CAM significantly exceeded the function of a pure advisor to IKB. The control structures applied to IKB CAM were inadequate in light of the extensive authority assigned to IKB CAM, and hence, its influence on the bank’s risk position. Decisions on large-scale investments in the US sub-prime segment could thus be taken without adequate control. Accounting Impact PwC sees a necessity to consolidate Rhineland Funding. The issuing entities of securities held within the Bank’s own fund investments should in their view also be consolidated. The Board of Managing Directors will follow PwC’s advice regarding consolidation. It therefore decided to restate the IFRS Group accounts for the financial year ended March 31, 2007. This restatement will lead to higher mark-to market losses due to the fair value concept and is likely to result in a reduction by up to EUR180 million of the previously communicated IFRS Group annual operating profit 2006/07 of EUR263 million. Due to the fair value approach significantly higher earnings volatility is expected in the future. In addition, the Board of Managing Directors currently reviews the appropriateness of an adjustment to the German GAAP financial statements of the AG as of March 31, 2007. If such an adjustment is made, the financial result will be reduced but remain a profit. The hybrid capital market instruments will not be affected. Reporting to the Bank’s Supervisory Board Regarding the reporting to IKB’s Supervisory Board, PwC conclude that the Board of Managing Directors did not inform the Supervisory Board about the risks from IKB’s sub-prime exposure. The Steering Committee received information for the first time on July 27, 2007 and the entire Supervisory Board on July 29, 2007. The Supervisory Board was informed about the liquidity facility granted to Rhineland Funding but not about the far reaching risk assumptions for liquidity lines of other liquidity providers. The Supervisory Board was also not informed about IKB’s complex interdependency with the conduit and the risks for IKB of a disruption of the market for Asset Backed Commercial Paper. The credit risk reports regularly presented to the Supervisory Board did not include sufficient analysis of the financial risk regarding Rhineland Funding. According to the PwC report, the audit reports that were presented to the Supervisory Board did not include any indications of the existence of subprime risks for IKB either. This applies in particular to a special audit concerning risk and interest management, which was commissioned by the Supervisory Board and carried out by an independent accounting firm. Hence, the Supervisory Board was unable to recognize the special risk situation that led to IKB’s existential crisis. The PwC report concludes that the Board of Managing Directors did not inform the Supervisory Board adequately about the overall economic picture. About IKB Deutsche Industriebank AG Headquartered in Dusseldorf, Germany, IKB Deutsche Industriebank AG -- http://www.ikb.de/-- pioneered the long-term industrial loan and provides medium-sized companies with long-term financing. The bank operates in several German locations, as well as branches in the United Kingdom, Luxembourg, Spain and France. IKB had previously invested in securitized loans on the US market for subprime mortgages, which are now almost worthless. This resulted in a deep-seated crisis within the bank, pushing it on the brink of bankruptcy. * * * As reported in the TCR-Europe on Oct. 4, 2007, Fitch Ratings has downgraded IKB Deutsche Industriebank AG's hybrid debt securities to Long-term 'BB-' from 'A'. They remain on Rating Watch Negative. IKB is rated Long-term Issuer Default 'A+' with Stable Outlook, Short-term IDR 'F1', Support '1' and Individual 'F'. Its subordinated debt issues are rated 'A'. IKB's hybrid capital instruments rated Long-term 'BB-' and on RWN are: -- EUR75 million IKB Funding Trust I's perpetual notes -- EUR400 million Funding Trust II's perpetual notes -- EUR100 million IKB International SA's capital contribution certificates maturing in 2009 -- EUR200 million Hybrid Raising GmbH's perpetual capital notes linked to a silent participation in IKB -- EUR200 million Capital Raising GmbH's perpetual notes linked to a silent participation in IKB -- EUR70 million IKB International SA's capital contribution certificates maturing in 2010 -- EUR150 million Propart Funding Ltd's profit participation certificates maturing in 2015. IKB DEUTSCHE: Restructures Board & Realigns Business Model ---------------------------------------------------------- The Supervisory Board of IKB Deutsche Industriebank AG disclosed the resignation of Markus Guthoff and Frank Braunsfeld from the management board, effective immediately. The board changes followed the assessment of a report prepared by PricewaterhouseCoopers in connection with the crisis affecting the US subprime mortgage market and agreed with PwC’s risk assessment. Aside from Messrs. Guthoff and Braunsfeld, Stefan Ortseifen and Volker Doberanzke also ceased to be members of the Board of Managing Directors. In addition, Winfried Reinke, Managing Director of IKB CAM, has been discharged of his duties. Reinhard Grzesik was appointed as a member of IKB’s Board of Managing Directors with effect from 15 October 2007, and will assume the position of Chief Financial Officer. Dr. Grzesik is an experienced CFO, with many years of experience in the international banking market –- having served as CFO of Depfa Plc -– and a proven restructuring expert. IKB CEO Guenther Braeunig said: ”The changes made at Board level permit the company to make a fresh start. We are delighted that we could convince Dr. Reinhard Grzesik, a proven finance and restructuring expert, to join IKB.” Board Action Plan The Board of Managing Directors has defined a comprehensive action plan consisting of measures already planned and further consequences taken from the PwC report. On Sept. 3, 2007, the bank announced that it would limit market price and interest rate risks to a larger extent. IKB’s risk- bearing capacity concept will be revised and simplified. The departments risk management and credit risk controlling will be consolidated. Furthermore, a Risk Committee chaired by the Chief Risk Officer will be established. In addition, the risk reporting procedures to the Supervisory Board should be improved. Dr. Braeunig said: “The acute crisis of IKB has been mastered. We have a clear restructuring schedule for IKB.” IKB Restructuring IKB’s future business model will be focused more substantially on the three core business units Corporate Clients (comprising Domestic Corporate Clients, Leasing and Private Equity), Real Estate Financing, and Structured Financing, in Germany and abroad. The corresponding planning framework has been presented to the Supervisory Board. It envisages that returns will be at a significantly lower level in the coming years but they will be achieved on the basis of a more conservative risk structure. Dr. Brauunig said: “IKB will focus on its tasks as a reliable partner for medium-sized companies, leveraging on its expertise as a specialist financing house. IKB's outstanding position in an attractive market offers sufficient potential for sustained business success. IKB’s Board of Managing Directors envisages a medium term operating profit at a low three-digit million Euro level.” Several success factors will be crucial for IKB’s further development. Top priority is assigned to securing the bank’s core businesses, and retaining key personnel. "Our staff have demonstrated a very high level of commitment, which proves their loyalty to IKB,” Dr. Brauunig commented. “We have been receiving a great deal of support from our clients. Clearly, this demonstrates that our commitment to the medium- sized companies has been, and remains the right strategy. The new business generated during recent months was at a gratifying level.” A strong and reliable partner is another essential component of the bank’s business strategy. Against this background, IKB welcomes KfW’s decision to evaluate strategic options for its stake in IKB. Dr. Braeunig said: “IKB is the finance house for German medium-sized businesses. More than that: we are also specialists for acquisition finance, project finance, and real estate finance. We have a lot to offer to a strong partner.“ About IKB Deutsche Industriebank AG Headquartered in Dusseldorf, Germany, IKB Deutsche Industriebank AG -- http://www.ikb.de/-- pioneered the long-term industrial loan and provides medium-sized companies with long-term financing. The bank operates in several German locations, as well as branches in the United Kingdom, Luxembourg, Spain and France. IKB had previously invested in securitized loans on the US market for subprime mortgages, which are now almost worthless. This resulted in a deep-seated crisis within the bank, pushing it on the brink of bankruptcy. * * * As reported in the TCR-Europe on Oct. 4, 2007, Fitch Ratings has downgraded IKB Deutsche Industriebank AG's hybrid debt securities to Long-term 'BB-' from 'A'. They remain on Rating Watch Negative. IKB is rated Long-term Issuer Default 'A+' with Stable Outlook, Short-term IDR 'F1', Support '1' and Individual 'F'. Its subordinated debt issues are rated 'A'. IKB's hybrid capital instruments rated Long-term 'BB-' and on RWN are: -- EUR75 million IKB Funding Trust I's perpetual notes -- EUR400 million Funding Trust II's perpetual notes -- EUR100 million IKB International SA's capital contribution certificates maturing in 2009 -- EUR200 million Hybrid Raising GmbH's perpetual capital notes linked to a silent participation in IKB -- EUR200 million Capital Raising GmbH's perpetual notes linked to a silent participation in IKB -- EUR70 million IKB International SA's capital contribution certificates maturing in 2010 -- EUR150 million Propart Funding Ltd's profit participation certificates maturing in 2015. IKB DEUTSCHE: Sees Higher 2007 Loss Due to Restructuring Costs -------------------------------------------------------------- Due to higher expected restructuring costs, the Board of Managing Directors of IKB Deutsche Industriebank AG estimates that the forecasted net loss for the AG according to German GAAP for the current financial year will increase from EUR450 million to approximately EUR500 million. The forecast of a full year net loss for the Group of up to EUR700 million under IFRS remains unchanged. Following the restructuring of IKB and the announced realignment of the business model, the Board of Managing Directors anticipates a net profit in the low three-digit million Euro level in the medium term. About IKB Deutsche Industriebank AG Headquartered in Dusseldorf, Germany, IKB Deutsche Industriebank AG -- http://www.ikb.de/-- pioneered the long-term industrial loan and provides medium-sized companies with long-term financing. The bank operates in several German locations, as well as branches in the United Kingdom, Luxembourg, Spain and France. IKB had previously invested in securitized loans on the US market for subprime mortgages, which are now almost worthless. This resulted in a deep-seated crisis within the bank, pushing it on the brink of bankruptcy. * * * As reported in the TCR-Europe on Oct. 4, 2007, Fitch Ratings has downgraded IKB Deutsche Industriebank AG's hybrid debt securities to Long-term 'BB-' from 'A'. They remain on Rating Watch Negative. IKB is rated Long-term Issuer Default 'A+' with Stable Outlook, Short-term IDR 'F1', Support '1' and Individual 'F'. Its subordinated debt issues are rated 'A'. IKB's hybrid capital instruments rated Long-term 'BB-' and on RWN are: -- EUR75 million IKB Funding Trust I's perpetual notes -- EUR400 million Funding Trust II's perpetual notes -- EUR100 million IKB International SA's capital contribution certificates maturing in 2009 -- EUR200 million Hybrid Raising GmbH's perpetual capital notes linked to a silent participation in IKB -- EUR200 million Capital Raising GmbH's perpetual notes linked to a silent participation in IKB -- EUR70 million IKB International SA's capital contribution certificates maturing in 2010 -- EUR150 million Propart Funding Ltd's profit participation certificates maturing in 2015. LMS LOGISTIK: Claims Registration Period Ends Nov. 26 ----------------------------------------------------- Creditors of LMS Logistik & Markt-Service GmbH have until Nov. 26 to register their claims with court-appointed insolvency manager Georg Bernsau. Creditors and other interested parties are encouraged to attend the meeting at 9:30 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 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: Dr. Georg Bernsau Zeilweg 42 D 60439 Frankfurt am Main Germany Tel: 069/963761-130 Fax: 069/963761-145 The District Court of Offenbach am Main opened bankruptcy proceedings against LMS Logistik & Markt-Service GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: LMS Logistik & Markt-Service GmbH Attn: Hans-Joachim Bernhardt, Manager Kloecknerstr. 3 63110 Rodgau Germany MARIENTHALER GASTHOF: Claims Registration Period Ends Nov. 26 ------------------------------------------------------------- Creditors of Marienthaler Gasthof Hartmann GmbH have until Nov. 26 to register their claims with court-appointed insolvency manager Axel Schwentker. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on Dec. 3, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duisburg Hall C407 Fourth Floor Kardinal-Galen-Strasse 124-132 47058 Duisburg 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: Axel Schwentker Lindnerstrasse 165 46149 Oberhausen Germany The District Court of Duisburg opened bankruptcy proceedings against Marienthaler Gasthof Hartmann GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Marienthaler Gasthof Hartmann GmbH Pastor-Winkelmann-Str. 2 46499 Hamminkeln Germany MOTHERMIK GMBH: Claims Registration Period Ends Nov. 23 ------------------------------------------------------- Creditors of Mothermik GmbH have until Nov. 23 to register their claims with court-appointed insolvency manager Jens Lieser. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.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 Koblenz Hall 111 Main Court Karmeliterstrasse 14 56068 Koblenz Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Jens Lieser Josef-Goerres-Platz 5 56068 Koblenz Germany Tel: 0261/304-790 Fax: 0261/911-4729 E-mail: http://www.lieser-rechtsanwaelte.de The District Court of Koblenz opened bankruptcy proceedings against Mothermik GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Mothermik GmbH Attn: Jan H. Kramb, Manager Industriestr. 3 56291 Pfalzfeld Germany OVERINGSHOF PROJEKT: Claims Registration Ends November 30 --------------------------------------------------------- Creditors of Overingshof Projekt GmbH have until Nov. 30 to register their claims with court-appointed insolvency manager Carl Wiegand. Creditors and other interested parties are encouraged to attend the meeting at 11:00 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 Krefeld Meeting Hall H 131 First Floor Nordwall 131 47798 Krefeld 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: Carl Wiegand Kempener Strasse 27 47839 Krefeld Germany Tel: 02151-74810 Fax: +4902151748120 The District Court of Krefeld opened bankruptcy proceedings against Overingshof Projekt GmbH on Sept. 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Overingshof Projekt GmbH Hüserheide 52 47918 Toenisvorst Germany Attn: Patrick Andreas Neitzel, Manager Robert-Koch-Str. 5 41564 Kaarst Germany STRUTHMANN GMBH: Claims Registration Period Ends Oct. 30 -------------------------------------------------------- Creditors of Struthmann GmbH have until Oct. 30 to register their claims with court-appointed insolvency manager Christian Plail. Creditors and other interested parties are encouraged to attend the meeting at 2:15 pm. on Nov. 26, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Noerdlingen Meeting Hall F/I Kaisheimer House Tandelmarkt 5 Noerdlingen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Christian Plail Eserwallstrasse 1 - 3 86150 Augsburg. Germany Tel: 0821/509330 Fax: 0821/5093333 The District Court of Noerdlingen opened bankruptcy proceedings against Struthmann GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Struthmann GmbH Attn: Dieter Struthmann, Manager Augsburger Strasse 23 86637 Wertingen Germany TISCHLEREI SCHMELING: Claims Registration Period Ends Oct. 30 ------------------------------------------------------------- Creditors of Tischlerei Schmeling GmbH have until Oct. 30 to register their claims with court-appointed insolvency manager Dirk Hammes. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.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 Duisburg Hall C315 Kardinal-Galen-Strasse 124-132 47058 Duisburg 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: Dirk Hammes Wilhelmshofallee 75 47800 Krefeld Germany The District Court of Duisburg opened bankruptcy proceedings against Tischlerei Schmeling GmbH on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Tischlerei Schmeling GmbH Attn: Michael Schmeling, Manager Viehgasse 6 45481 Muelheim an der Ruhr Germany UNI-ELEKTRONIK GMBH: Claims Registration Period Ends Oct. 30 ------------------------------------------------------------ Creditors of Uni-Elektronik GmbH have until Oct. 30 to register their claims with court-appointed insolvency manager Dr. Dirk Herzig. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.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 Chemnitz Hall 27 Fuerstenstrasse 21 09130 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: Dr. Dirk Herzig Promenadenstrasse 3 09111 Chemnitz Tel: (0371) 382370 Fax: (0371) 3823710 E-Mail: DHerzig@schubra.de The District Court of Chemnitz opened bankruptcy proceedings against Uni-Elektronik GmbH on Oct. 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Uni-Elektronik GmbH Attn: Thomas Windisch, Manager Fil. Gablenz-Center Chemnitz Helenen Str. und Anna-Esche-Str.12 09212 Limbach-Oberfrohna Germany WOHNMOEBEL-VERWALTUNGS GMBH: Claims Period Ends on Oct. 25 ---------------------------------------------------------- Creditors of Wohnmoebel-Verwaltungs GmbH have until Oct. 25 to register their claims with court-appointed insolvency manager Frank Hanselmann. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Nov. 8, 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 Schweinfurt Meeting Hall 22 Eingang Friedenstr. 2 Schweinfurt 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 Hanselmann Berliner Platz 6 97080 Wuerzburg Germany Tel: 0931/359800 The District Court of Schweinfurt opened bankruptcy proceedings against Wohnmoebel-Verwaltungs GmbH on Oct. 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Wohnmoebel-Verwaltungs GmbH Industriestr. 5 97528 Sulzdorf a.d.L. Germany ============= I R E L A N D ============= ELAN CORP: Third Parties Eye Biogen Acquisition ----------------------------------------------- Elan Corporation plc has noted the announcement on Oct. 12, 2007 by Biogen Idec Inc. that Biogen has received expressions of interest from third parties and that its Board of Directors has authorized its management to evaluate potential interest in acquiring the company. Elan has a 50% interest in the TYSABRI collaboration. TYSABRI was discovered and largely developed by Elan, and was partnered with Biogen in 2000 for multiple indications. Under the terms of the Collaboration Agreement, if a third party acquires control of Biogen, Elan has several options: -- the right to acquire for fair value the 50% economic interest in TYSABRI currently held by Biogen; -- under certain circumstances, the ability to sell its 50% economic interest in TYSABRI; or, -- to continue with the existing agreement. Elan also may consider restructuring the Collaboration Agreement in connection with a third party's acquisition of Biogen. If Biogen's evaluation process results in a change of control, Elan will evaluate the forgoing options in the best interest of its shareholders. Elan has engaged Lehman Brothers to assist in assessing and analyzing all options as appropriate. About the Company Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) -- http://www.elan.com/-- is a neuroscience-based biotechnology company. Elan shares trade on the New York, London and Dublin Stock Exchanges. * * * As reported in the TCR-Europe on Oct. 15, 2007, Standard & Poor's Ratings Services revised its outlook on Elan Corp. PLC to positive from stable and affirmed the ratings on the company and its subsidiaries, including the 'B' corporate credit rating. In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Gaming, Lodging and Leisure, Manufacturing, and Energy sectors, Moody's Investors Service the rating agency confirmed its B3 Corporate Family Rating for Elan Corporation plc and assigned a B2 probability-of-default rating to the company. Debt ratings remain unchanged in conjunction with the implementation of Moody's Loss Given Default and Probability of Default rating methodology for existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa. * Issuer: Elan Finance plc Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- US$300M Senior Unsecured Regular Bond/Debenture Due 2011 B3 LGD4 65% US$300M Senior Unsecured Regular Bond/Debenture Due 2011 B3 LGD4 65% US$150M Senior Unsecured Regular Bond/Debenture Due 2013 B3 LGD4 65% US$850M 7.75% Senior Unsecured Regular Bond/Debenture Due 2011 B3 LGD4 65% US$465M 8.875% Senior Unsecured Regular Bond/Debenture Due 2013 B3 LGD4 65% ELAN CORPORATION: FDA Extends TYSABRI Review Until Jan. 13, 2008 ---------------------------------------------------------------- The U.S. Food and Drug Administration informed the Elan Corporation plc and Biogen Idec that it will extend its regulatory review of TYSABRI(R) (natalizumab) as a treatment for Crohn's disease by up to three months. The companies have been informed by the FDA that the Agency requires additional time to review information regarding the proposed TYSABRI risk management plan for Crohn's disease. Under this revised timeline, the companies anticipate action from FDA on or before Jan. 13, 2008. On December 15, 2006, the companies submitted to the FDA a supplemental Biologics License Application (sBLA) for TYSABRI as a treatment of moderately to severely active Crohn's disease. This sBLA includes the results of three randomized, double- blind, placebo-controlled, multi-center trials of TYSABRI assessing the safety and efficacy as both an induction and maintenance therapy - ENCORE (Efficacy of Natalizumab in Crohn's Disease Response and Remission), ENACT-1 (Efficacy of Natalizumab as Active Crohn's Therapy) and ENACT-2 (Evaluation of Natalizumab As Continuous Therapy). The sBLA includes data from more than 1,500 Crohn's patients treated with TYSABRI, as well as proposed labeling and a risk management plan. TYSABRI is a humanized monoclonal antibody believed to block entry of inflammatory immune cells into the wall of the intestine, thus limiting inflammatory damage in Crohn's disease. TYSABRI is the first potential treatment for Crohn's disease with this proposed mechanism of action. About TYSABRI In the US, TYSABRI is approved as a monotherapy treatment for relapsing forms of MS. TYSABRI increases the risk of progressive multifocal leukoencephalopathy, an opportunistic viral infection of the brain that usually leads to death or severe disability. Patients should be monitored at regular intervals for any new or worsening signs or symptoms suggestive of PML. Because of the increased risk of PML, TYSABRI is generally recommended for patients who have had an inadequate response to, or are unable to tolerate, alternate MS therapies. It is available in the US only through a restricted distribution program called the TOUCH Prescribing Program. In the European Union, TYSABRI is indicated as a single disease- modifying therapy in highly active relapsing-remitting MS patients. It is for patients with high disease activity despite treatment with a beta-interferon or in patients with rapidly evolving severe relapsing-remitting MS. Serious adverse events that occurred in TYSABRI-treated patients included hypersensitivity reactions (e.g., anaphylaxis), infections, depression and gallstones. In MS trials, the incidence and rate of other serious and common adverse events, including the overall incidence and rate of infections, were balanced between treatment groups. Herpes infections were slightly more common in patients treated with TYSABRI. Serious opportunistic and other atypical infections have been observed in TYSABRI-treated patients, some of whom were receiving concurrent immunosuppressants. Common adverse events reported in TYSABRI-treated patients includee headache, fatigue, infusion reactions, urinary tract infections, joint and limb pain, lower respiratory infections, rash, gastroenteritis, abdominal discomfort, vaginitis, and diarrhea. Worldwide, more than 10,000 MS patients are currently receiving therapy with TYSABRI, either in the commercial setting or in clinical trials. TYSABRI was discovered by Elan and is co- developed with Biogen Idec. About the Company Headquartered in Ireland, Elan Corporation plc (NYSE: ELN) -- http://www.elan.com/-- is a neuroscience-based biotechnology company. Elan shares trade on the New York, London and Dublin Stock Exchanges. * * * As reported in the TCR-Europe on Oct. 15, 2007, Standard & Poor's Ratings Services revised its outlook on Elan Corp. PLC to positive from stable and affirmed the ratings on the company and its subsidiaries, including the 'B' corporate credit rating. In April 2007, in connection with the implementation of its new Probability-of-Default and Loss-Given-Default rating methodology for the corporate families in the Gaming, Lodging and Leisure, Manufacturing, and Energy sectors, Moody's Investors Service the rating agency confirmed its B3 Corporate Family Rating for Elan Corporation plc and assigned a B2 probability-of-default rating to the company. Debt ratings remain unchanged in conjunction with the implementation of Moody's Loss Given Default and Probability of Default rating methodology for existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa. * Issuer: Elan Finance plc Projected Debt LGD Loss-Given Debt Issue Rating Rating Default ---------- ------- ------- -------- US$300M Senior Unsecured Regular Bond/Debenture Due 2011 B3 LGD4 65% US$300M Senior Unsecured Regular Bond/Debenture Due 2011 B3 LGD4 65% US$150M Senior Unsecured Regular Bond/Debenture Due 2013 B3 LGD4 65% US$850M 7.75% Senior Unsecured Regular Bond/Debenture Due 2011 B3 LGD4 65% US$465M 8.875% Senior Unsecured Regular Bond/Debenture Due 2013 B3 LGD4 65% ========= I T A L Y ========= ALITALIA SPA: Baldassarre Group Eyes Three-Year Restructuring ------------------------------------------------------------- The Antonio Baldassarre-led consortium has no plans to cut jobs in Alitalia S.p.A. should it acquire the Italian government's 49% stake in the national carrier, Agenzia Giornalistica Italia reports. The consortium, composed of Engineering S.p.A., I Viaggi del Ventaglio S.p.A., SAFNA, Aermar Srl, Mivtach shamir H Ltd. and Reficere, plans to restore Alitalia's finances within two-to- three years, AGI reports. Mr. Baldassarre said the consortium, which will have a starting capital of EUR1 billion to EUR1.5 billion, does not plan to downscale Alitalia's operations in Milan Malpensa and Rome Fiumicino airports, and instead increase routes, AGI adds. Mr. Baldassare told Thomson Financial that the consortium plans to launch long-haul routes to Africa and the Middle East as well as maintain Alitalia's existing role, he said. He expects Alitalia to allow the possible buyers to perform diligence on the company's books. As reported in the TCR-Europe on Oct. 10, 2007, Alitalia decided to open talks, through the financial advisor Citi and industrial advisor Roland Berger, with: -- OAO Aeroflot, -- Air France-KLM, -- AP Holding S.p.A., -- Cordata Baldassarre, -- Deutsche Lufthansa AG, -- TPG Capital. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/ -- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. FIAT SPA: Finance Unit to Repay EUR123.4 Million Bonds ------------------------------------------------------ Fiat S.p.A.'s Fiat Finance & Trade Ltd. S.A., a company organized under the laws of Luxembourg, will repay EUR123,400,000 equal to the first amortization installment of the outstanding “Fiat Step Up Amortizing 2001 - 2011” bonds of EUR617,000,000 on Nov. 7, 2007. The repayment is in compliance with the provisions of the instructions to the rules of the markets organized and managed by Borsa Italiana S.p.A. In accordance with the conditions of the bond, the repayment will reduce by one-fifth the face value of each outstanding bond. As a result, the face value will then amount to EUR800 each for a total residual amount of EUR493,600,000. Consequently, the smallest denomination of each bond will thus be reduced from EUR1,000 to EUR800. 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 =================== BASTAU OJSC: Proof of Claim Deadline Slated for Nov. 23 ------------------------------------------------------- OJSC Bastau has declared insolvency. Creditors have until Nov. 23 to submit written proofs of claims to: OJSC Bastau Tsarev Str. 12 Aksu Pavlodar Kazakhstan BEST OIL: Creditors Must File Claims Nov. 23 -------------------------------------------- LLP Best Oil Ltd. has declared insolvency. Creditors have until Nov. 23 to submit written proofs of claims to: LLP Best Oil Ltd. Energetikov Side Street Three Almaty District Astana Kazakhstan BM TRADE: Claims Filing Period Ends Nov. 23 ------------------------------------------- LLP BM Trade Ltd. has declared insolvency. Creditors have until Nov. 23 to submit written proofs of claims to: LLP BM Trade Ltd. Tauelsizdyk Str. 101a Taldykorgan Almaty Kazakhstan MEHANOMONTAGE OJSC: Creditors' Claims Due on Nov. 23 ---------------------------------------------------- OJSC Mehanomontage has declared insolvency. Creditors have until Nov. 23 to submit written proofs of claims to: OJSC Mehanomontage Suyunbai ave. 343 Suyunbai ave. 343 Almaty Kazakhstan Tel: 8 (3272) 35-89-37, 35-69-77, 35-77-26 NESTLE FOOD: Claims Registration Ends Nov. 23 --------------------------------------------- Representation of LLP Nestle Food in Republic of Kazakhstan has declared its closure. Creditors have until Nov. 23 to submit written proofs of claims to: Representation of LLP Nestle Food Mynbayev Str. 53a Almaty Kazakhstan SEITKOJA LLP: Proof of Claim Deadline Slated for Nov. 20 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Seitkoja insolvent on Sept. 4. Creditors have until Nov. 20 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan UJBAT TRADING: Creditors Must File Claims Nov. 20 ------------------------------------------------- The Specialized Inter-Regional Economic Court of South Kazakhstan has declared LLP Ujbat Trading insolvent on Sept. 4. Creditors have until Nov. 20 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of South Kazakhstan Ilyaev Str. 24 Shymkent South Kazakhstan Kazakhstan ZHETYSU COMMERCE: Claims Filing Period Ends Nov. 23 --------------------------------------------------- LLP Zhetysu Commerce has declared insolvency. Creditors have until Nov. 23 to submit written proofs of claims to: LLP Zhetysu Commerce Micro District Jetysu, 12/5 Taldykorgan Almaty Kazakhstan =================== K Y R G Y Z S T A N =================== ASIA-MEGA-CENTRE LLC: Creditors Must File Claims by November 21 --------------------------------------------------------------- LLC Asia-Mega-Centre has declared insolvency. Creditors have until Nov. 21 to submit written proofs of claim to: LLC Asia-Mega-Centre Moskovskaya Str. 136-2 Bishkek Kyrgyzstan ===================== N E T H E R L A N D S ===================== FIRST DATA: Expands Commercial Payment Markets on Deecal Buy ------------------------------------------------------------ First Data Corp. has acquired Deecal International, a specialist software solutions provider for commercial payments. The acquisition positions First Data strongly in the expanding commercial payments market. It enhances the company's global commercial payments offering, providing a state-of-the-art management information capability that First Data will make available to banking, corporate and public sector clients around the world. David Yates, president, First Data International, said: "Commercial cards are an increasingly important component of card portfolios for financial and corporate organisations. This acquisition positions First Data strongly to support our banking clients in Europe, the United States and other major markets, providing high-quality online management information in support of their national and multinational corporate customers. Through the acquisition, we welcome 32 new employees with highly valued skills and expertise into First Data." Des Cahill, managing director of Deecal International added: "As part of First Data, we now have access to a global market and the backing of an established and highly successful global electronic payments company. O ur clients, whether domestic or multinational, will benefit from First Data's support for the Deecal platform, and our employees will enjoy the expanded career development opportunities that this acquisition represents." Founded in 1991, Deecal International is a privately owned company headquartered in Dublin, Ireland. The company offers a complete commercial card e-payment solution that can be fully integrated into existing procurement, payment and accounting infrastructure and workflows. The solution supports the full range of commercial cards, business, purchasing and corporate travel and entertainment cards and meets the needs of both domestic and multinational organisations. It is offered using a hosted ASP service model that ensures rapid implementation and minimises start-up costs. Deecal has a client base of more than 200 banks, corporations and government agencies across Europe and in the United States. The company maintains direct connections with banks, payment card associations and travel agents to provide daily reporting. About First Data First Data Corp. (NYSE: FDC) -- http://www.firstdata.com/ -- provides electronic commerce and payment solutions for businesses worldwide, including those in New Zealand, the Netherlands and Mexico. The company's portfolio of services and solutions includes merchant transaction processing services; credit, debit, private-label, gift, payroll and other prepaid card offerings; fraud protection and authentication solutions; receivables management solutions; electronic check acceptance services through TeleCheck; as well as Internet commerce and mobile payment solutions. The company's STAR Network offers PIN-secured debit acceptance at 2 million ATM and retail locations. FIRST DATA: Moody's Rates US$3.75 Bln Sr. Unsecured Notes at B3 --------------------------------------------------------------- Moody's Investors Service assigned a B3 rating to First Data Corporation's US$3.75 billion senior unsecured cash pay notes, the proceeds of which will be used to permanently finance a portion of its leveraged buyout by Kohlberg, Kravis, Roberts & Co, which closed on Sept. 24, 2007. The ratings are subject to Moody's review of final documentation. The rating outlook for First Data is stable. The total LBO transaction value is approximately US$29 billion. Financing for the transaction includes US$1 billion of Holdings senior PIK notes (3.4% of proposed financing sources), and US$6.4 billion of common equity contributed by equity sponsor KKR (21.7%). The company has committed bridge financing for all unsold debt instruments. The B2 Corporate Family Rating is constrained by considerable financial leverage pro forma for the buyout (pro forma debt to EBITDA approximates 9x) and reflects an expectation that credit metrics, including free cash flow to debt, will remain weak for at least eighteen months following the transaction's close. The main factors that help mitigate the company's high leverage are FDC's large size, service breadth, liquidity, and leading market positions in the steadily growing markets (with revenue growth in the mid to high single digit range with minimal fluctuation for economic cyclicality) of electronic commerce and payment solutions for financial institutions, merchants, and other organizations worldwide. The company's corporate family rating, pro forma for the anticipated financial leverage of the buyout, is weakly positioned in the B2 category because of its high debt burden. The rating assumes free cash flow to debt of less than 1% and EBITDA less capital expenditures interest coverage of about 1.1x (including PIK interest) during the twelve months that follow the acquisition's close. FDC has targeted certain initiatives that are underway to improve its cost structure and exit its official check and money order processing business (Integrated Payment Systems, IPS). The cost savings initiatives include efforts to reduce corporate overhead spending, streamline business unit costs, consolidate data and command centers, and capitalize on global labor sourcing opportunities. The B2 rating assumes these initiatives will generate at least US$150 million of near-term savings by the end of 2008. With respect to liquidity, the company is expected to have near full availability under its US$2 billion senior secured revolver (about US$200 million drawn at the LBO's closing and less than US$100 million incremental draws in the 12 months subsequent to closing) and will have over US$500 million of available cash on hand. The senior secured credit facilities have a debt to EBITDA financial maintenance covenant, which Moody's views as providing a substantial cushion, set at a ratio of 7.25x senior debt to EBITDA, to be first tested on a quarterly basis for the fourth quarter of 2008. This test ratio then steps down by 0.25x each year thereafter to 6.0x at December 2013. The company is expected to generate at least modest free cash flow by the end of 2008. The B3 rating on the company's US$3.75 billion senior unsecured cash pay notes, one notch below the Corporate Family Rating, reflects a loss given default of LGD 5 (77%). The stable rating outlook reflects Moody's expectation that the company will achieve moderate organic revenue growth and EBITDA improvement over the next 12-18 months. Cash flow, financial leverage, and interest coverage are expected to remain weak for the rating category during this period. Given the weak pro forma credit metrics, a moderate decline in profitability could put downward pressure on the ratings. Downward ratings pressure could also occur were Moody's to expect the company's free cash flow to be negative on a sustained twelve month basis. Weak credit metrics make an upgrade unlikely in the near term. Over the intermediate term, the ratings could be upgraded were FDC to achieve favorable revenue and profit growth and debt reduction, and if free cash flow to debt were to be sustained in the mid single digits or higher. These ratings were assigned: -- US$3.75 billion senior unsecured cash pay notes (due 2015) - B3, LGD 5 (77%) Based in Greenwood Village, Colorado, First Data Corporation is a global leader in electronic commerce and payment solutions for financial institutions, merchants, and other organizations worldwide including those in New Zealand, the Netherlands and Mexico. FIRST DATA: Fitch Rates US$2 Billion Sr. Unsecured Notes at B- -------------------------------------------------------------- Fitch Ratings has assigned a 'B-' rating to First Data Corp.'s proposed senior unsecured notes offering as: -- Up to $2 billion senior unsecured notes due 2015 rated 'B-/RR6'. Fitch previously assigned these ratings to FDC on Sept. 17, 2007, following its leveraged buyout by Kohlberg Kravis Roberts & Co.: -- Long-term Issuer Default Rating 'B+'; -- $2 billion senior secured revolving credit facility due 2013 'BB/RR2'; -- $13 billion senior secured term loan B due 2014 rated 'BB/RR2'. The Rating Outlook is Stable. Liquidity is adequate with approximately $500 million in cash and $1.8 billion available under a $2 billion senior secured credit facility maturing in 2013. Fitch expects FDC to generate minimal free cash flow in the first year following the close of its acquisition by KKR. FDC's debt pro forma is approximately $23 billion, consisting of: -- a $13 billion senior unsecured term loan B due 2014; -- $2 billion in senior unsecured notes expiring 2015; -- $4.5 billion remaining on a senior unsecured 12-month bridge facility expiring September 2008; -- $2.5 billion drawn on a senior subordinated 12-month bridge facility expiring September 2008; and -- $1 billion of senior unsecured PIK notes due 2016 issued at a holding company and structurally subordinated to all other existing debt. FDC has bank commitments in place that require the remaining bridge facilities to either be replaced or converted into equivalent eight-year senior unsecured notes and nine-year senior subordinated notes. Of the $4.5 billion remaining under the senior unsecured bridge facility, $2.75 billion is in the form of senior unsecured PIK notes for the first four years, converting to cash pay notes in 2011. =========== P O L A N D =========== AFFILIATED COMPUTER: Earns US$37.6 Million in Fourth Quarter ------------------------------------------------------------ Affiliated Computer Services Inc. reported net income of $37.6 million for the fourth quarter ended June 30, 2007, compared with net income of $86.1 million for the same period last year. Fourth quarter fiscal year 2007 revenues were $1.52 billion, a 10% increase compared to fourth quarter fiscal year 2006 revenues of $1.38 billion. Fiscal year 2007 revenues were $5.77 billion, compared with revenues of $5.35 billion for fiscal year 2006. Excluding the divestiture of the Welfare to Workforce Services business, total revenue growth was 10% compared to the prior fiscal year. Net income for fiscal year 2007 was $253.1 million, compared with net income of $358.8 million for fiscal year 2006. Lynn Blodgett, ACS' president and chief executive officer, said, "I am proud of our dedicated employees and their efforts that drove our strong finish to the year. Despite non-operational distractions, we generated record company revenues for the year, significantly improved our client renewal rates, and enjoyed outstanding cash flow results. We are focused on running our business, growing revenues and profit, and emphasizing innovation in our offerings." During the fourth quarter of fiscal 2007, the company completed the following acquisitions: -- CDR Associates LLC for a purchase price of approximately $27.0 million and a potential earnout of up to $15 million, based on future results. CDR, with trailing twelve month revenues of approximately $17.0 million, expands ACS' existing services to the healthcare payor market by adding credit balance audit services and a web-based credit balance system. -- certain assets of Albion Inc. for a purchase price of approximately $31.0 million. Albion, with trailing twelve month revenues of approximately $25 million, specializes in integrated eligibility software solutions for the health and human services market and will enable ACS to offer an end-to-end integrated eligibility offering across multiple HHS programs. Cash flow from operations for fiscal year 2007 was $738 million, or 13% of revenue, and free cash flow was $378 million, or 7% of revenue. Capital expenditures and additions to intangibles were $360 million, or 6% of revenues. Fiscal year 2007 new business signings were $607.0 million of annual recurring revenue with an estimated total contract value of $2.8 billion. In terms of annual recurring revenue, approximately 79% of new business signings were business process outsourcing deals and approximately 21% were information technology solutions signings. Additionally, the company renewed $869.0 million of annual recurring revenue with an estimated total contract value of $2.4 billion during fiscal year 2007. At June 30, 2007, the company's consolidated balance sheet showed $5.98 billion in total assets, $3.92 billion in total liabilities, and $2.06 billion in total shareholders' equity. Full-text copies of the company's consolidated financial statements for the quarter ended June 30, 2007, are available for free at http://researcharchives.com/t/s?2448 About Affiliated Computer Headquartered in Dallas, Affiliated Computer Services Inc. (NYSE: ACS) -- http://www.AffiliatedComputer-inc.com/ -- provides business process outsourcing and information technology solutions to world-class commercial and government clients. The company has more than 58,000 employees supporting client operations in nearly 100 countries. The company has global operations in Brazil, China, Dominican Republic, India, Guatemala, Ireland, Philippines, Poland, and Singapore. * * * Affiliated Computer Services currently carries Fitch Ratings' BB Issuer Default Rating. SYMMETRY MEDICAL: Reveals Accounting Errors at U.K. Unit -------------------------------------------------------- Symmetry Medical Inc. disclosed that the Audit Committee of its Board