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 Friday, October 26, 2007, Vol. 8, No. 213 Headlines A U S T R I A B & S BAU: Ried im Innkreis Court Orders Business Shutdown BKW LLC: Wels Court Orders Business Shutdown MEZNER BAU: Claims Registration Period Ends Nov. 6 NIESS RAUMAUSSTATTUNG: Wels Court Orders Business Shutdown NIGHT-ST LLC: Steyr Court Orders Business Shutdown RITSCHI BITSCH: Feldkirch Court Orders Business Closure T.U.L. TRANSPORT: Claims Registration Period Ends Nov. 1 TIMETRADING.AT LLC: Claims Registration Period Ends Nov. 2 B U L G A R I A PROCREDIT BANK: Fitch Rates IDR at BB+ on Owner Support D E N M A R K HOUGHTON INTERNATIONAL: Signs Merger Pact with AEA Affiliate F I N L A N D ARROW ELECTRONICS: Earns US$98.3 Million in 2007 Third Quarter HILTON HOTELS: Gets European Commission Antitrust Clearance HILTON HOTELS: Prices Cash Tender Offers for Five Notes F R A N C E ALLIANZ GLOBAL: UK High Court Sanctions Scheme of Arrangement DELPHI CORP: U.S. District Court to Hear ERISA Suit on Nov. 13 EUROTUNNEL GROUP: Reduces Rail-Freight Pricing for 2008 HARMAN INT'L: Equity Firms Drop Merger; Inks New Buyback Deal HARMAN INTERNATIONAL: Terminated Deal Cues S&P's Positive Watch G E R M A N Y AIJAH AUTOMOTIVE: Claims Registration Period Ends Nov. 15 BAUGESCHAFT HENNING: Creditors Must File Claims by Nov. 19 BAUTECH FLIESEN: Claims Registration Ends Nov. 23 CHRYSLER LLC: 55% UAW Workers Voted to Accept Tentative Pact CLASSIC-EVENTS GMBH: Claims Registration Period Ends Nov. 13 DACHDECKEREI JESSEN: Claims Registration Ends Nov. 26 DIPLOM-INGENIEUR JUERGEN: Claims Registration Period Ends Nov. 9 EUROGRUND IMMOBILIEN: Claims Registration Period Ends Nov. 16 GOHLIS-SANIERUNGS: Claims Registration Period Ends Nov. 12 HOFFMANN BETEILIGUNGEN: Claims Registration Period Ends Nov. 16 INDUSTRIEMASCHINEN DUEVEL: Creditors Must File Claims by Nov. 19 KARL-HEINZ JUSTEN: Creditors Must File Claims by November 19 SARECO-KOMPOSTIERUNG: Creditors Must File Claims by November 19 SONNENSTUDIO WAHLSTEDT: Claims Registration Ends Nov. 26 TCI COMPRESSORS: Claims Registration Period Ends Nov. 9 TRULBER STANZ-UND: Creditors' Meeting Slated for Nov. 6 WILHELM PREUSS: Claims Registration Period Ends Nov. 19 G R E E C E WIND HELLAS: PPC Purchase Deal Cues S&P's Negative Outlook I T A L Y PARMALAT SPA: Hancock Sues BofA over Fraud Role K A Z A K H S T A N EKSAM LLP: Creditors Must File Claims Dec. 1 JOL-BARS LLP: Claims Filing Period Ends Dec. 1 MIHAILOVSKY MELZAVOD: Creditors' Claims Due on Dec. 1 REK XXI LLP: Claims Registration Ends Dec. 1 SANTI-M LLP: Creditors Must File Claims Dec. 1 TAIMAS PROMOTION: Claims Filing Period Ends Nov. 28 URBAN INSHAAT: Creditors' Claims Due on Dec. 1 VOKZAL-SERVICE JSC: Claims Registration Ends Nov. 28 K Y R G Y Z S T A N HIMHLORTECH LLC: Proof of Claim Deadline Slated for November 23 L U X E M B O U R G AXIUS EUROPEAN: Moody's Rates EUR15 Million Class E Notes at Ba3 N E T H E R L A N D S BAUSCH & LOMB: Faces 573 Product Liability Suits COPERNICUS EURO I: Fitch Rates Class D Notes at B FIRST DATA: Extends Long-Term Contract with National City Bank FIRST DATA: Subsidiary Reaches Agreement with Meijer P O L A N D OWENS-ILLINOIS: Appoints Hugh H. Roberts as Director P O R T U G A L BEARINGPOINT INC: Eddie Munson Joins Board of Directors R U S S I A BERKUT LLC: Creditors Must File Claims by Nov. 13 BREAD DEOT 18 ASKIZSKAYA: Asset Sale Slated for Nov. 11 ELECTRIC-POWER: Asset Sale Slated for November 15 ENGINEERING-AND-INNOVATION: Claims Filing Period Ends Dec. 13 KAMELLA SUNRISE: Creditors Must File Claims by Nov. 13 LENGASENERGO CJSC: Asset Sale Slated for Nov. 14 MISHKINSKIJ OJSC: Creditors Must File Claims by Nov. 13 OMSKTRANSSTROY CJSC: Creditors Must File Claims by Dec. 13 PUT' LLC: Creditors Must File Claims by Nov. 13 SAKMARSKAYA LLC: Asset Sale Slated for November 16 SIBERIA ROADS: Creditors Must File Claims by Nov. 13 SISTEMA JSFC: Moody's Lifts Corporate Family Rating to Ba3 VLADIVOSTOK CERAMICS: Creditors Must File Claims by Dec. 13 VOZDVIZHENSKIJ OJSC: Creditors Must File Claims by Nov. 13 S W E D E N FLEXTRONICS INT'L: Earns US$121 Mln in Quarter Ended Sept. 28 TUPPERWARE BRANDS: Earns US$6.9 Mln in Quarter Ended Sept. 29 S W I T Z E R L A N D CAFFE PER TUTTI: Claims Registration Period Ends October 29 CREOSOTA LLC: Creditors' Liquidation Claims Due November 1 DELTA DENT: Creditors' Liquidation Claims Due November 15 FUCHS PROCOM JSC: Zug Court Closes Bankruptcy Proceedings GHELD LLC: Creditors' Liquidation Claims Due November 1 SALCO GRAIN: Zug Court Closes Bankruptcy Proceedings VENTURA ON TIME: Claims Registration Period Ends October 31 VERSCHLEISS-TECHNIK: Creditors' Liquidation Claims Due Dec. 13 WOOD-SLIMP LLC: Creditors' Liquidation Claims Due November 2 ZIA TERESA LLC: Creditors' Liquidation Claims Due November 1 U K R A I N E AVTOK OJSC: Proofs of Claim Deadline Set October 27 BLAGO LLC: Proofs of Claim Deadline Set October 27 CARSAN LLC: Proofs of Claim Deadline Set October 27 DIAMANT BANK: Fitch Assigns BB- Rating with Stable Outlook EXPRESS CAR: Proofs of Claim Deadline Set October 27 HOUSING ECONOMY: Creditors Must File Claims by October 27 PRIAZOVSKY HOUSING: Proofs of Claim Deadline Set October 27 PRODSUPPLY ENERGY: Proofs of Claim Deadline Set October 27 SLAVIANSKOE LLC: Proofs of Claim Deadline Set October 27 SOUTH INDUSTRIAL: Proofs of Claim Deadline Set October 27 ZNAMIANKA SUGAR: Proofs of Claim Deadline Set October 27 U N I T E D K I N G D O M ACCESS DEVICES: Taps Liquidators from Smith & Williamson ALLIANZ INSURANCE: UK High Court Sanctions Scheme of Arrangement APM LTD: Joint Liquidators Take Over Operations AZIMUTH NETWORKS: M. C. Bowker Leads Liquidation Procedure BRITISH ENERGY: Reactor Closures Cue S&P's Watch on BB+ Ratings CABLE & WIRELESS: Shortlisted to Bid for Honduras Mobile License CARVALHO DESIGN: Calls In Liquidators from Vantis Redhead French CONTINENTAL REINSURANCE: UK High Court Sanctions Scheme ENESCO GROUP: Plan Confirmation Hearing Set for November 19 ENESCO GROUP: Unsecured Creditors to Get 27% Under Amended Plan GREYFRIARS INSURANCE: UK High Court Sanctions Scheme HEDDINGTON INSURANCE: UK High Court Sanctions Scheme IDEAL SHEET: Appoints M. H. Abdulali as Liquidator JS CHINN: Financial Woes Trigger Administrative Receivership MANORPEACH LTD: Brings In Liquidators from Mazars MELROSE RESOURCES: S&P Junks Proposed EUR250 Million Bond MITSUI SUMITOMO: UK High Court Sanctions Scheme of Arrangement NORWEST TECHNOLOGY: Names M. C. Bowker Liquidator OCEAN MARINE: UK High Court Sanctions Scheme of Arrangement OSLO REINSURANCE: UK High Court Sanctions Scheme of Arrangement PHOENIX TRAINING: Taps Ian S. Carr to Liquidate Assets REFCO INC: Shareholders Sue Mayer Brown Over Role in Collapse ROMBAS LTD: Brings In Liquidators from Vantis Business Recovery SEA INSURANCE: UK High Court Sanctions Scheme of Arrangement SOVEREIGN INSURANCE: UK High Court Sanctions Scheme SOVEREIGN MARINE: UK High Court Sanctions Scheme of Arrangement TOKIO MARINE: UK High Court Sanctions Scheme of Arrangement VICTORIA INTERNATIONAL: Hires Liquidators from Mazars WAUSAU INSURANCE: UK High Court Sanctions Scheme of Arrangement WHOLE FOODS: FTC Wants Expedited Review on Completed Merger Deal * Begbies Traynor Names Bob Maxwell New Partner at Leeds Office * BOOK REVIEW: Panic on Wall Street: A History of America's Financial Disasters ********* ============= A U S T R I A ============= B & S BAU: Ried im Innkreis Court Orders Business Shutdown ---------------------------------------------------------- The Land Court of Ried im Innkreis entered Sept. 27 an order shutting down the business of LLC B & S Bau- Sanierungs (FN 212254p). Court-appointed estate administrator Harald Korp 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. Harald Korp WKG Wagner-Korp-Gruenbart Rechtsanwalte GmbH Hauptstrasse 36 4770 Andorf Austria Tel: 07766/41 0 66 Fax: 07766/41066-20 E-mail: andorf@wkg.at Headquartered in Scharding, Austria, the Debtor declared bankruptcy on Sept. 21 (Bankr. Case No 17 S 34/07t). BKW LLC: Wels Court Orders Business Shutdown -------------------------------------------- The Land Court of Wels entered Sept. 24 an order shutting down the business of LLC BKW (FN 273040f). Court-appointed estate administrator Johannes Hofmann 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 Hofmann Ringstrasse 38 4600 Wels Austria Tel: 07242/65358 Fax: 07242/65358-25 E-mail: ra.hofmann@aon.at Headquartered in Wels, Austria, the Debtor declared bankruptcy on Sept. 12 (Bankr. Case No 20 S 117/07t). MEZNER BAU: Claims Registration Period Ends Nov. 6 -------------------------------------------------- Creditors owed money by LLC MEZNER Bau Management Service (FN 286658g) have until Nov. 6 to file written proofs of claim to court-appointed estate administrator Andrea Simma at: Dr. Andrea Simma Schulerstrasse 18 1010 Vienna Austria Tel: 513 67 03 Fax: 513 67 03 33 E-mail: RA_Simma@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:25 a.m. on Nov. 20 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. 21 (Bankr. Case No. 28 S 107/07z). NIESS RAUMAUSSTATTUNG: Wels Court Orders Business Shutdown ---------------------------------------------------------- The Land Court of Wels entered Sept. 25 an order shutting down the business of LLC Niess Raumausstattung (FN 244477a). Court-appointed estate administrator Martin Edelmann recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Mag. Martin Edelmann Stadtplatz 36 4840 Voecklabruck Austria Tel: 07672/29360 Fax: 07672/29360-13 E-mail: anwaelte@vb-lex.at Headquartered in Laakirchen, Austria, the Debtor declared bankruptcy on Sept. 25 (Bankr. Case No 20 S 118/07i). NIGHT-ST LLC: Steyr Court Orders Business Shutdown -------------------------------------------------- The Land Court of Steyr entered Sept. 26 an order shutting down the business of LLC NIGHT-ST (FN 236419a). Court-appointed estate administrator Gerwald Schmidberger 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. Gerwald Schmidberger c/o Dr. Heinz Kassmannhuber Stelzhamerstrasse 11 4400 Steyr Austria Tel: 07252/50300 E-mail: office@sks-law.at Headquartered in Steyr, Austria, the Debtor declared bankruptcy on Sept. 11 (Bankr. Case No 14 S 34/07h). Heinz Kassmannhuber represents Dr. Schmidberger in the bankruptcy proceedings. RITSCHI BITSCH: Feldkirch Court Orders Business Closure ------------------------------------------------------- The Land Court of Feldkirch entered Sept. 21 an order closing the business of KG Ritschi Bitsch Flatz (FN 237694a). Court-appointed estate administrator Anton Weber 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. Anton Weber Rathausstrasse 35a 6900 Bregenz Austria Tel: 05574/43681 Fax: 05574/48312 E-mail: anton.weber@aon.at Headquartered in Bregenz, Austria, the Debtor declared bankruptcy on Sept. 18 (Bankr. Case No 14 S 37/07i). T.U.L. TRANSPORT: Claims Registration Period Ends Nov. 1 -------------------------------------------------------- Creditors owed money by LLC T.U.L. Transport und Handels GmbH & Co KG (FN 274721b) (fka LLC Jahreswagen Stuttgart Automobilvertriebs & Co KG) have until Nov. 1 to file written proofs of claim to court-appointed estate administrator Georg Schuchlenz at: Dr. Georg Schuchlenz Waaggasse 18/3 9020 Klagenfurt Austria Tel: 0463/51 65 30 Fax: 0463/516530-73 E-mail: office@dr-schuchlenz.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Nov. 12 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. 26 (Bankr. Case No. 41 S 94/07g). TIMETRADING.AT LLC: Claims Registration Period Ends Nov. 2 ---------------------------------------------------------- Creditors owed money by LLC timetrading.at (FN 241348z) have until Nov. 2 to file written proofs of claim to court-appointed estate administrator Stephan Medwed at: Dr. Stephan Medwed Sterneckstrasse 43 9020 Klagenfurt Austria Tel: 0463/55 120 Fax: 0463/55120-31 E-mail: stephan.medwed@medwed.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Nov. 12 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. 27 (Bankr. Case No. 41 S 99/07t). =============== B U L G A R I A =============== PROCREDIT BANK: Fitch Rates IDR at BB+ on Owner Support ------------------------------------------------------- Fitch Ratings has affirmed the ratings of ProCredit Bank (Bulgaria) at Long-term foreign currency Issuer Default Rating 'BB+' with Stable Outlook; Short-term foreign currency IDR 'B'; Long-term local currency IDR 'BB+' with Stable Outlook; Short- term local currency IDR 'B'; Individual 'D' and Support '3'. PCB's Long-term IDR, Short-term IDR and Support rating reflect potential support available from its 59%-owner, Frankfurt-based ProCredit Holding AG (rated 'BBB-'/'F3'/Outlook Stable). The ratings also consider the centralized control and risk management by PCH, and the bank's high degree of integration within the ProCredit group. The Individual rating reflects the bank's small size, tight capitalization, and the credit and operational risks associated with rapid growth. The Individual rating also reflects the bank's good asset quality to date and adequate profitability. Operating income is dominated by net interest revenue. Margins are wide thanks to a focus on the higher-yielding micro-finance and SME sectors, a trend that should continue despite pressure from competition. Despite significant growth since inception, PCB has shown good asset quality to date: at end-June 2007, loans overdue by 90 days were a very low 0.33% of total gross loans. Since 2002, PCB's capitalization has been eroded due to rapid loan growth. PCH has demonstrated its willingness to support the bank's capital adequacy by providing resources when needed even though the bank is run with capital ratios that are just above the minimum regulatory ones, which Fitch considers tight. At end-June 2007, Fitch's eligible capital to risk-weighted assets ratio was in the range of 12%. PCB is planning to raise EUR5.1 million of new capital in October 2007. During 2007, it has issued an additional EUR8.5 million of perpetual subordinated debt. Additional capital injections are planned for 2008 and once a year until 2011. PCB is the third-largest bank by total assets in a global network of 22 banks set up to carry out micro- and SME lending in emerging economies. It was the 16th-largest bank in Bulgaria by end-June 2007 assets. PCH is expected to exercise the call option to buy an additional 19.7% in PCB, currently owned by the European Bank for Reconstruction and Development, in first quarter of 2008, and also Internationale Projekt Consult GmbH's 1.45% stake during 2008, which would bring its stake in PCB to 80.29%. Commerzbank owns the remaining 19.71% in the bank. ============= D E N M A R K ============= HOUGHTON INTERNATIONAL: Signs Merger Pact with AEA Affiliate ------------------------------------------------------------ Houghton International Inc. has entered into an agreement to merge with a newly formed affiliate of AEA Investors LLC. The merger agreement is subject to shareholder approval and the satisfaction of the various closing conditions, including regulatory approvals, and is expected to close before the end of the year. As Houghton is privately held, the terms of the transaction were not disclosed. Houghton does not anticipate any immediate changes in its facilities, employment or range of product and service offerings, and all of the members of senior management are expected to continue on with the company. After the merger, the business will continue to be conducted under the Houghton International name. "We are pleased to announce that our shareholders will be able to realize significant value for their Houghton shares, while at the same time, Houghton will be able to continue uninterrupted in its long history of innovation in serving our customers around the world," said William F. MacDonald Jr., president of Houghton International. "Through the proposed partnership with AEA Investors LLC, we expect to enjoy greater access to capital, which will enable us to provide our customers with customized metalworking fluids and chemical management services." "The entire team at AEA is excited to partner with the management team of Houghton International to continue the growth and expansion of this long-standing industry leader," said Brian Hoesterey, a partner at AEA. "We plan to support Houghton through our experience in the chemical industry, global footprint, operating resources and access to capital. We seek to help management drive both organic and acquisition-based growth, leveraging Houghton's strong positions in its key markets." CIBC World Markets Corp. acted as exclusive financial advisor to Houghton, and Morgan, Lewis & Bockius LLP acted as legal counsel. Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal counsel to AEA Investors LLC. About AEA AEA -- http://www.aeainvestors.com/-- is one of the most experienced international private equity investment firms with investors that include former and current CEOs of major multinational corporations, family groups, endowment funds and institutions from around the world. With offices in New York, London and Hong Kong, AEA invests in companies in four sectors: value-added industrial products, specialty chemicals, consumer products and services to those sectors. About Houghton International Headquartered in Valley Forge, Pennsylvania, Houghton International Inc. -- http://www.houghtonintl.com/-- manufactures oils and specialty chemicals for lubrication in most of the big Midwestern industries: metalworking, automotive, and steel. Its products range from aluminum and steel rolling lubricants to rust preventatives to fire-resistant hydraulic fluids. The FLUIDCARE division helps manufacturers reduce costs through chemical management and recycling. It maintains more than 30 sales and manufacturing facilities in North and South America, Europe, Africa, Australia, and Asia. The company was founded in 1865. It has operations in Austria, China, Denmark, Brazil, Chile, Singapore, among others. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 18, 2007, Standard & Poor's Ratings Services placed its ratings on Houghton International Inc. on CreditWatch with negative implications. The corporate credit rating on the Valley Forge, Pennsylvania-based manufacturer and supplier of industrial fluids and chemical management services is 'B+'. Moody's Investors Service placed the ratings of Houghton International Inc. under review for possible downgrade following the announcement that it has entered into an agreement to merge with a newly formed affiliate of AEA Investors LLC. The review for downgrade reflects the likelihood of greatly increased leverage following this transaction, which is expected to close in the fourth quarter of 2007 and is subject to shareholder approval and satisfaction of various closing conditions, including regulatory review. The ratings under review are B2 Corporate family rating, B2 Probability of default rating, B2 rating od US$90 million Gtd Sr Sec Term Loan due 2011, and B2 rating of US$25 million Gtd Sr Sec Revolving Credit Facility due 2010. ============= F I N L A N D ============= ARROW ELECTRONICS: Earns US$98.3 Million in 2007 Third Quarter -------------------------------------------------------------- Arrow Electronics Inc. reported third quarter 2007 net income of US$98.3 million on net sales of US$4.03 billion, compared with net income of US$85.9 million on sales of US$3.45 billion for the same period in 2006. Sales increased 17% year over year. "We performed well in a market that was challenging. Our level of sales, as well as working capital to sales, remained near record levels and we generated the highest level of cash flow for a third quarter in six years and the highest return on working capital for a third quarter in seven years, all while we continued to invest in the long-term future of Arrow," said William E. Mitchell, chairman, president and chief executive officer of Arrow Electronics. Global enterprise computing solutions sales of US$1.17 billion increased 97 percent year over year and decreased 8 percent sequentially in the seasonally soft third quarter. Year-over- year 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. On a pro forma basis, sales increased 15% year over year. "We again outgrew the market with strong double-digit performance in industry standard servers, storage, software, and services, as well as modest growth in proprietary servers. While we achieved strong top-line performance with revenue near the high end of our guidance, our mix of products and investments in the business to accelerate future growth had an unfavorable impact on profitability this quarter. We expect to continue to outgrow the market and return to more normal levels of profitability in the fourth quarter," said Mr. Mitchell. Global components sales of US$2.86 billion increased 3 percent compared with the second quarter and were flat year over year as the well-publicized weakness within the large EMS customer base continued. "We again gained market share on a worldwide basis and added to our industry leading position in the face of an increasingly more competitive market in all regions this quarter. We were particularly pleased with our success in Asia Pacific, where we generated record operating income dollars for a third quarter as earnings increased 173 percent year over year. We had good success with efficiency initiatives to drive down our operating expenses worldwide going forward, and we will continue to invest in strategic opportunities to build for the future," Mr. Mitchell said. "Based upon the information known to us today, we generally expect normal seasonality in both of our businesses. We believe that total fourth quarter sales will be between US$4.15 and US$4.45 billion, with global component sales between US$2.65 and US$2.85 billion and global enterprise computing solutions sales between US$1.50 and US$1.60 billion. Earnings per share, on a diluted basis, excluding any charges and including estimated amortization of intangible assets of US$.02 to US$.03, are expected to be in the range of US$.90 to US$.95, an increase of 25 percent to 32 percent from last year's fourth quarter," said Paul J. Reilly, senior vice president and chief financial officer. 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. HILTON HOTELS: Gets European Commission Antitrust Clearance ----------------------------------------------------------- Hilton Hotels Corporation has received clearance from the European Commission for its pending merger with BH Hotels LLC, an entity controlled by investment funds affiliated with The Blackstone Group L.P. Approval by the European Commission was the final remaining regulatory approval that is a condition to closing of the merger. The merger is expected to close on Oct. 24, 2007. Hilton will announce the completion of the merger once it has closed. Consent solicitations. Requests for documentation may be directed to Global Bondholder Services Corporation, the Information Agent, which can be contacted at (212) 430-3774 (for banks and brokers only) or (866) 924-2200 (for all others toll- free). About Hilton Hotels Corporation Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Finland, India, Indonesia, Trinidad, and Tobago, Philippines and Vietnam. * * * As reported on May 1, 2007, Standard & Poor's Ratings Services said its rating and outlook on Hilton Hotels Corp. (BB+/Stable/--) would not be affected by the company's disclosure that it has entered into an agreement with Morgan Stanley Real Estate to sell up to 10 hotels for approximately US$612 million in proceeds (net of property level debt repayment, taxes, and transaction costs). Upon the close of the transactions, Hilton Hotels plans to use the net proceeds to repay debt. In February 2007, Moody's Investors Service upgraded Hilton Hotels Corporation's corporate family rating to Ba1 from Ba2 reflecting a reduction in leverage from a faster than expected pace of asset sales and strong earnings during 2006. Adjusted debt to EBITDAR has improved to around 5.0x from 6.0x in January 2006. HILTON HOTELS: Prices Cash Tender Offers for Five Notes ------------------------------------------------------- Hilton Hotels Corporation has determined the total consideration and tender offer consideration to be paid pursuant to its cash tender offers and related consent solicitations for its: -- 7.625% Notes due 2008, -- 7.200% Notes due 2009, -- 8.250% Notes due 2011, -- 7.625% Notes due 2012, and -- 7.500% Notes due 2017. The total consideration payable for Notes accepted for payment that were validly tendered with consents and not validly withdrawn at or prior to 5:00 p.m., New York City time, on Sept. 25, 2007, will be an amount equal to the total consideration per US$1,000 principal amount of Notes. The tender offer consideration payable per US$1,000 principal amount of Notes accepted for payment that are validly tendered after the Note Consent Payment Deadline but at or prior to 8:00 a.m., New York City time, on Oct. 24, 2007, will be an amount equal to the total consideration minus the consent payment of US$30.00 per US$1,000 principal amount of Notes. In each case, holders whose Notes are accepted for payment in the tender offers will receive accrued and unpaid interest for such Notes from the last interest payment date to, but not including, the payment date for Notes purchased in the tender offers. The company disclosed information relating to the determination of the applicable total consideration and tender offer consideration per US$1,000 principal amount of Notes. Pricing Information for Tender Offers for the Notes: a) CUSIP No.: 432848AU3 Security: 7.625% Notes due 2008 Applicable Spread: 50 bps Tender Offer Yield: 4.599% Total Consideration: US$1,016.45 Consent Payment: US$30 Tender Offer Consideration: US$986.45 b) CUSIP No.: 432848AR0 Security: 7.200% Notes due 2009 Applicable Spread: 50 bps Tender Offer Yield: 4.306% Total Consideration: US$1,058.53 Consent Payment: US$30 Tender Offer Consideration: US$1,028.53 c) CUSIP No.: 432848AT6 Security: 8.250% Notes due 2011 Applicable Spread: 50 bps Tender Offer Yield: 4.342% Total Consideration: US$1,119.13 Consent Payment: US$30 Tender Offer Consideration: US$1,089.13 d) CUSIP No.: 432848AX7 Security: 7.625% Notes due 2012 Applicable Spread: 50 bps Tender Offer Yield: 4.489% Total Consideration: US$1,141.54 Consent Payment: US$30 Tender Offer Consideration: US$1,111.54 e) CUSIP No.: 432848AS8 Security: 7.500% Notes due 2017 Applicable Spread: 50 bps Tender Offer Yield: 4.948% Total Consideration: US$1,201.50 Consent Payment: US$30 Tender Offer Consideration: US$1,171.50 As previously announced, the total consideration per US$25.00 principal amount of Hilton's 8.000% Quarterly Interest Bonds due 2031 validly tendered and not validly withdrawn pursuant to Hilton's tender offer and consent solicitation for the Bonds at or prior to the 5:00 p.m., New York City time, on Oct. 16, 2007 is US$25.25. The tender offer consideration payable for Bonds accepted for payment that are validly tendered after the Bond Consent Payment Deadline but at or prior to the Offer Expiration Date, will be an amount equal to the Bonds Total Consideration minus the consent payment of US$1.00 per US$25.00 principal amount of Bonds. Also as previously announced, the total consideration for Hilton's 7.430% Chilean Inflation-Indexed (UF) Notes due 2009 (the CLP Notes and, together with the Notes and the Bonds, the Securities) in Chilean pesos has been set at CLP65,560.95 per CLP50,000 original principal amount of CLP Notes. All of the CLP Notes were validly tendered and not validly withdrawn prior to 5:00 p.m., New York City time, on Oct. 1, 2007, and, accordingly, all CLP Notes are eligible to receive the total consideration. Hilton expects to determine the total consideration in U.S. dollars payable in respect of its CLP Notes tendered pursuant to Hilton's tender offer and consent solicitation for the CLP Notes on Oct. 22, 2007, unless such determination date is extended by Hilton. The tender offer for each issue of Securities will expire at 8:00 a.m., New York City time, on the Offer Expiration Date. As indicated in the Offer to Purchase, it is expected that the Offer Expiration Date will be extended to coincide with the date that the Merger becomes effective. Each tender offer and consent solicitation is being made independently of the other tender offers and consent solicitations and Hilton reserves the right to terminate, withdraw or amend each tender offer and consent solicitation independently of the other tender offers and consent solicitations at any time and from time to time. The tender offers and consent solicitations relating to the Securities are made upon the terms and conditions set forth in Hilton's Offer to Purchase and Consent Solicitation Statement dated Sept. 12, 2007 and the related Consent and Letter of Transmittal, as amended. The tender offers and consent solicitations are being conducted in connection with the previously announced merger agreement that provides for the acquisition of Hilton by BH Hotels LLC, an entity controlled by investment funds affiliated with The Blackstone Group L.P. The tender offers and consent solicitations are subject to the satisfaction of certain conditions, including the Merger having occurred, or such Merger occurring substantially concurrent with the Offer Expiration Date. However, the completion of the tender offers and consent solicitations is not a condition to completion of the Merger. Further details about the terms and conditions of the tender offers and the consent solicitations are set forth in the Offer to Purchase. Hilton has retained Bear, Stearns & Co. Inc. and UBS Investment Bank to act as the lead Dealer Managers for the tender offers and lead Solicitation Agents for the consent solicitations, and they can be contacted at (877) 696-BEAR (toll-free) ((212) 272- 5112 (collect)) and (888) 719-4210 (toll-free) ((203) 719-4210 (collect)), respectively. Banc of America Securities LLC, Deutsche Bank Securities Inc., Goldman, Sachs & Co., Lehman Brothers Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and Morgan Stanley & Co. Incorporated are also acting as Dealer Managers and Solicitation Agents in connection with the tender offers and the consent solicitations. Requests for documentation may be directed to Global Bondholder Services Corporation, the Information Agent, which can be contacted at (212) 430-3774 (for banks and brokers only) or (866) 924-2200 (for all others toll-free). About Hilton Hotels Corporation Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Finland, India, Indonesia, Trinidad, and Tobago, Philippines and Vietnam. * * * As reported on May 1, 2007, Standard & Poor's Ratings Services said its rating and outlook on Hilton Hotels Corp. (BB+/Stable/--) would not be affected by the company's disclosure that it has entered into an agreement with Morgan Stanley Real Estate to sell up to 10 hotels for approximately US$612 million in proceeds (net of property level debt repayment, taxes, and transaction costs). Upon the close of the transactions, Hilton Hotels plans to use the net proceeds to repay debt. In February 2007, Moody's Investors Service upgraded Hilton Hotels Corporation's corporate family rating to Ba1 from Ba2 reflecting a reduction in leverage from a faster than expected pace of asset sales and strong earnings during 2006. Adjusted debt to EBITDAR has improved to around 5.0x from 6.0x in January 2006. =========== F R A N C E =========== ALLIANZ GLOBAL: UK High Court Sanctions Scheme of Arrangement ------------------------------------------------------------- The High Court of Justice of England and Wales entered a ruling on Sept. 17, 2007, sanctioning the schemes of arrangement proposed to be made between Sovereign Marine & General Insurance Company, Ltd. and its affiliates and their Scheme Creditors. The Scheme became effective for each of the Scheme Companies on Oct. 10, 2007. The Scheme Companies are: 1. Sovereign Marine & General Insurance Company, Ltd. 2. Allianz Insurance, P.L.C. 3. Atlantic Mutual Insurance Company 4. Allianz Global Corporate & Specialty (France) 5. Continental Reinsurance Corporation International, Ltd. 6. Greyfriars Insurance Co., Ltd. 7. Heddington Insurance (U.K.), Ltd. 8. Mitsui Sumitomo Insurance Co. (Europe), Ltd. 9. Oslo Reinsurance Co. (U.K.), Ltd. 10. Sovereign Insurance (U.K.), Ltd. 11. The Ocean Marine Insurance Co., Ltd. 12. The Sea Insurance Co., Ltd. 13. Tokio Marine Europe Insurance, Ltd. 14. Wausau Insurance Co. (U.K.), Ltd. Full-text copies of the scheme of arrangement and other related documents may be obtained from http://wfumpools.com/orby written request to the scheme manager at: PRO Insurance Solutions Ltd. Attn: Toby Wooldridge Bruton Court Bruton Way Gloucester GL1 1DA United Kingdom Tel: +44 (0) 1452 523 426 Fax: +44 (0) 1452 523 437 E-mail: pro_wfumpools@pro-ltd.co.uk Creditors have until April 7, 2008, to submit written proofs of claim to the scheme manager. About the Scheme Companies Sovereign Marine became insolvent in 1997 and implemented a Scheme of Arrangement in January 2000. Under the Original Scheme, Sovereign has continued to agree claims in the normal course and has made scheme payments on a pro-rata basis to creditors with "Established Scheme Liabilities". The current scheme payment percentage is 40%. Sovereign has reached a point with its reinsurance collections and asset realizations where the Scheme Administrators believe that it is time for it and its subsidiaries to enter into a closing Scheme. This involves setting up a mechanism to agree the values of claims submitted by policyholders. The value of these claims would then be applied to the reinsurance program. This would enable valuation statements to be prepared on a net basis for policyholders who are also reinsurers. Once these amounts are known, Sovereign UK and Greyfriars would pay Agreed Claims, less a discount for time value, in full (after applicable set-off) and distribute any surplus assets to Sovereign. In turn, final dividends will then be paid by Sovereign and Sovereign formally wound up. If Sovereign and its two subsidiaries were to effect a closing scheme in isolation, the effect would be to create a fragmented pool administration, with the remaining pool companies continuing in run-off, receiving claims notifications and collecting reinsurance balances as they arise. This may require policyholders to separate the presentation of their claims for collection between each of the individual pool companies. With this in mind, 13 WFUM Pool Companies are proposing a collective Scheme of Arrangement alongside the Sovereign Companies. This would result in all of the liabilities of the 16 WFUM Pools Companies and their remaining reinsurance being valued in a consistent way. The mechanism for the valuation of policyholders claims will mirror that proposed by Sovereign. Sovereign's Scheme Administrators believe that a unified Pool Scheme will increase the ultimate distributions to creditors which can be paid than would otherwise be the case if the Sovereign Companies closed separately. Chapter 15 Proceedings On Sept. 18, 2007, PRO Insurance Solutions Limited, as petitioner filed chapter 15 petitions for these Debtors: Greyfriars Insurance Company Limited; Sovereign Insurance (UK) Ltd.; Allianz Insurance PLC; Heddington Insurance (UK) Ltd.; Mitsui Sumitomo Insurance Company (Europe), Ltd.; The Ocean Marine Insurance Company, Ltd.; Oslo Renisurance Company (UK) Ltd.; The Sea Insurance Company Ltd.; Tokio Marine Europe Insurance Ltd.; and Wausau Insurance Company (UK) Ltd. (Bankr. S.D.N.Y. Case Nos. 07-12934 to 07-12943). The Debtors, with certain other insurance companies, underwrote insurance and reinsurance business in pooling arrangements through Willis Faber (Underwriting Management) Ltd. and affiliates. The group underwrote risks until the end of 1991, when they ceased accepting new business and went into run-off. DELPHI CORP: U.S. District Court to Hear ERISA Suit on Nov. 13 -------------------------------------------------------------- A fairness hearing on a US$47,000,000 settlement of a litigation filed against Delphi Corp. over an alleged violation of the Employees Retirement Income Security Act is set Nov. 13, 2007. The Delphi ERISA Consolidated Complaint was filed in the United States District Court for the Eastern District of Michigan on behalf of Plaintiffs and a class of all persons who were participants in or beneficiaries of the following Delphi- sponsored, defined-contribution plans: (1) the Delphi Savings-Stock Purchase Program for Salaried Employees in the United States; (2) the Delphi Personal Savings Plan for Hourly-Rate Employees in the United States; (3) the ASEC Manufacturing Savings Plan; and (4) the Delphi Mechatronic Systems Savings-Stock Purchase Program from May 28, 1999, to Nov. 1, 2005, and whose accounts included investments in Delphi or General Motors (GM) common stock. Plaintiffs allege that during the Class Period, the Defendants breached their fiduciary duties to Plaintiffs and the Class members by: * failing to prudently and loyally manage the Plans' assets; * failing to act in accordance with Plan documents and ERISA; * failing to monitor fiduciaries; * failing to disclose to and inform the other fiduciaries of the Plans of information which the other fiduciaries reasonably needed to know to fulfill their fiduciary duties to Plan participants and beneficiaries; and * breaching their obligations as co-fiduciaries. The Defendants in the case are: -- the Delphi Corporation Board of Directors' Executive Committee and its members; -- the Investment Policy Committee and its members; and -- J.T. Battenberg III, Robert H. Brust, Alan S. Dawes, Susan A. McLaughlin, and John D. Opie (collectively, the Delphi Officer and Director Defendants), -- General Motors Investment Management Company (GMIMCo), and -- State Street Bank & Trust Company. Not all claims are against every Defendant. Settlement Update On Aug. 31, 2007, Plaintiffs filed their motion for preliminary approval of a Settlement between the Named ERISA Plaintiffs and Defendants Delphi, ASEC Manufacturing, Delphi Mechatronic Systems, the Delphi Corporation Board of Directors Executive Committee and its members, the Investment Policy Committee and its members, and the Delphi Director and Officer Defendants. Claims asserted against State Street are not a part of the Settlement. Plaintiffs continue to litigate their claims against State Street. On Sept. 5, 2007, the Court issued an order granting preliminary approval of the Settlement. At the Fairness Hearing, to be held on Nov. 13, 2007 at 9:30 a.m., the Court will decide, among other things: -- whether to approve the Settlement; -- whether to dismiss with prejudice the litigation against Settling Defendants pursuant to the terms of the Settlement Stipulations; -- whether the Notice and the Publication Notice and the means of disseminating same were satisfactory and complied with applicable law; -- whether to bar all Barred Claims against the Releasee Parties by any Barred Person; -- whether to establish a reserve of 25% of the Gross Settlement Fund for a potential award of attorneys' fees and expenses; and -- whether to grant each Named Plaintiff a case contribution award of up to US$5,000 payable from the Gross Settlement Fund. As part of the Settlement, the Settling Defendants agree to pay US$47,000,000, consisting of Approximately US$22,500,000 in cash to be paid from available insurance policies, and an "allowed interest" in the Delphi Corporation Chapter 11 case that counsel expect to be valued at US$24,500,000. After payment of and establishment of reserves for any taxes and Court-approved costs, attorneys' fees, and expenses, including any Court-approved compensation to be paid to the Named Plaintiffs, the Settlement proceeds will be paid to the Plans and, after payment of implementation expenses, the remaining amount will be allocated to the Plan accounts of members of the Settlement Class according to a Plan of Allocation to be approved by the Court. If necessary, a Plan account will be created for those members of the Settlement Class who no longer have Plan accounts. Any payments to the Plans are subject to certain conditions and limitations set forth in the Settlement Stipulation. Until the Delphi ERISA Action has been concluded and fully and finally resolved with respect to all Barred Persons, there will be no distribution from the Net Settlement Fund that would cause the balance remaining in the Net Settlement Fund to be less than the aggregate of Named Plaintiffs' claims for potential damages with respect to all claims against Barred Persons that have not been concluded and fully and finally resolved. 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. EUROTUNNEL GROUP: Reduces Rail-Freight Pricing for 2008 ------------------------------------------------------- Eurotunnel Group (aka Groupe Eurotunnel SA) has introduced a new rail-freight pricing structure for 2008, with a reduction compared to the pricing in 2007, an including measures to ensure cross-Channel open access for all rail operators. The new conditions aim to implement open real and efficient access to infrastructure in line with European directives. Eurotunnel's initiative aims to re-launch rail-freight through the Channel Tunnel by encouraging the transfer of freight transport to rail, in line with the environmental protection objectives put in place by the governments on either side of the Channel. Eurotunnel met with all of the cross-Channel rail-freight partners to study the conditions for the survival and development of this activity in an open access environment. The efforts made by all partners, strengthened by the establishment of a support mechanism by the British government, enable Eurotunnel to launch a comprehensive, competitive strategy. New Pricing Structure The new railway pricing structure announced by Eurotunnel, applicable from today is intended to re-launch cross-Channel rail-freight, according to European directives, within an Open Access framework. -- average toll of GBP3,000/EUR4,500 per train, representing a reduction of 50% compared to the 2007 average price (GBP5,300/EUR8,000); -- simplified pricing structure allowing operators to optimize their trainloads, replacing an obsolete pricing structure; -- guarantee to all operators of an equitable and efficient open access to cross-Channel freight facilities thanks to a capping on essential services costs of GBP400/EUR600; and -- total cost competitive compared to road transport to encourage rail freight development and modal transfer to rail, which is less polluting. For Eurotunnel, this development represents an opportunity to tap into new markets with considerable potential. These new conditions should lead to a reversal of the downward trend in cross-Channel rail-freight followed by a rapid return to 1997 levels, with a development target of 6 million tons thereafter. It will also lead to an increase in freight on the British and French national rail networks, which will equally improve their revenues. This new freight strategy, which relates to long distance international traffic, is an opportunity for modal switch for more than 4 billion tonne.kilometres of freight per year in France alone, the equivalent of an 8% growth in rail-freight, representing over a quarter of the French government's objective. "This voluntary and pragmatic strategy, which is backed by our existing railway partners and by the British government, shows that Eurotunnel is strongly committed to the re-launch of cross- Channel rail-freight," Jacques Gounon, chairman and CEO of Groupe Eurotunnel disclosed. About Eurotunnel Headquartered in Folkestone, United Kingdom and Calais, France, Eurotunnel Group (aka Groupe Eurotunnel S.A.) -- http://www.eurotunnel.co.uk/-- operates a fleet of 25 shuttle trains, which carry cars, coaches and trucks. It manages the infrastructure of the Channel Tunnel and receives toll revenues from train operating companies whose trains pass through the Tunnel. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Eurotunnel Group files reports in the U.S. Securities and Exchange Commission under the names of Eurotunnel PLC (ETNUF.PK) and Eurotunnel S.A. (ETTFF.PK). At Dec. 31, 2006, Eurotunnel's balance sheet showed GBP5.25 billion in total assets, GBP6.56 billion in total liabilities and GBP1.32 billion in shareholders' deficit. Safeguard Protection Eurotunnel obtained Aug. 2, 2006, an order placing the channel operator under the protection of the Court pursuant to the new safeguard legislation (Procedure de sauvegarde). At the end of 2006, the group's creditors and bondholders approved a plan to decrease its GBP6.2 billion debt to GBP2.84 billion. On Jan. 15, 2007, the Court approved Eurotunnel's safeguard plan, backed by the court-appointed representatives to the company and to the creditors. For the first half ended June 30, 2007, Group Eurotunnel posted net loss of EUR32 million compared with a net loss of EUR105 million for the same period in 2006. Since the completion at the end of June 2007 of the exchange tender offer launched by Groupe Eurotunnel SA, TNU SA and TNU PLC (fka Eurotunnel S.A. and Eurotunnel Plc) and their subsidiaries TNU became a subsidiary of Groupe Eurotunnel SA. HARMAN INT'L: Equity Firms Drop Merger; Inks New Buyback Deal ------------------------------------------------------------- Harman International Industries, Incorporated, entered into an agreement with affiliates of Kohlberg Kravis Roberts & Co. L.P. and GS Capital Partners relating to the parties' Merger Agreement, entered in May 2007. Terms of the new agreement include: a) KKR and GSCP will purchase US$400 million of 1.25% senior notes convertible under certain circumstances into Harman common stock, convertible at a price of $104 per share. KKR and GSCP have agreed to not sell or hedge their position for at least one year. b) The parties have agreed to terminate their Merger Agreement dated April 26, 2007 without litigation or payment of a termination fee. As reported in the Troubled Company Reporter on Sept. 25, 2007, Harman was informed that KKR and GSCP no longer intended to complete their acquisition of Harman by a company formed by investment funds affiliated with or sponsored by KKR and GSCP. KKR and GSCP have informed Harman that they believe that a material adverse change in Harman's business has occurred, that Harman has breached the merger agreement and that they are not obligated to complete the merger. Harman disagreed that a material adverse change has occurred or that it has breached the merger agreement. The company also disclosed that Brian F. Carroll, Member of KKR, will join Harman's Board of Directors. The company will use the proceeds from the KKR/GSCP investment to repurchase Harman common stock through an accelerated share repurchase program. "We are pleased to have reached an understanding with KKR and GSCP. Although we do not agree with the reasons for cancellation of the original merger agreement, we view this US$400 million investment as a vote of confidence in our business and its prospects for continued growth," Dr. Sidney Harman, Executive Chairman of Harman, said. "Our company benefits from excellent customer relationships built on world-class products, brands and technology, and we are well positioned to capitalize on market opportunities in the automotive, consumer and professional sectors." "The significant stock repurchase we announced underscores our Board's confidence in Harman's financial outlook," Dinesh Paliwal, Harman Chief Executive Officer, added. "This settlement enables us to move forward in a decisive manner to implement our initiatives to ensure the long-term growth of the Company and avoid the time, cost and distraction of litigation. We welcome Brian Carroll and expect that he will make an active contribution to our business through his service on the Board." "Harman is a leader in audio and infotainment systems, and enjoys strong leadership in Chairman Sidney Harman and CEO Dinesh Paliwal," Henry R. Kravis, Co-Founding Member of KKR, said. "The merger unfortunately could not be completed, but we are pleased to make this investment in the company. We believe this investment and our representation on the Board is an outstanding way to support Harman and its management team in the future." Headquartered in Washington, D.C., Harman International Industries Inc. (NYSE: HAR) -- http://www.harman.com/-- makes audio systems through auto manufacturers, including DaimlerChrysler, Toyota/Lexus, and General Motors. Also the company makes audio equipment, like studio monitors, amplifiers, microphones, and mixing consoles for recording studios, cinemas, touring performers, and others. Harman Int'l has operations in Japan, Mexico and France. HARMAN INTERNATIONAL: Terminated Deal Cues S&P's Positive Watch --------------------------------------------------------------- Standard & Poor's Ratings Services revised its CreditWatch implications for the 'BB-' corporate credit rating on Harman International Industries Inc., a Washington, D.C.-based audio equipment manufacturer, to positive from developing. The revision reflects published reports that the merger agreement with KKR and GS Capital Partners, the private equity buyers that agreed to acquire Harman in April 2007, has been terminated without litigation or payment of a termination fee. Accordingly, S&P no longer expect to lower the rating on Harman. "The CreditWatch positive listing means that we could raise the ratings on Harman because the company's balance sheet will likely be less leveraged than it would have been if the merger transaction had proceeded as originally planned," said Standard & Poor's credit analyst Nancy Messer. Standard & Poor's expects to resolve the CreditWatch listing after meeting with management and reviewing the company's business and financial prospects in light of the termination of the merger agreement. Headquartered in Washington, D.C., Harman International Industries Inc. (NYSE: HAR) -- http://www.harman.com/-- makes audio systems through auto manufacturers, including DaimlerChrysler, Toyota/Lexus, and General Motors. Also the company makes audio equipment, like studio monitors, amplifiers, microphones, and mixing consoles for recording studios, cinemas, touring performers, and others. Harman Int'l has operations in Japan, Mexico and France. ============= G E R M A N Y ============= AIJAH AUTOMOTIVE: Claims Registration Period Ends Nov. 15 --------------------------------------------------------- Creditors of AIJAH automotive GmbH have until Nov. 15 to register their claims with court-appointed insolvency manager Arno Wolf. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 28, 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 Friedberg Hall 235 Homburger Road 18 61169 Friedberg (Hessen) 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: Arno Wolf Minnholzweg 2 b 61476 Kronberg im Taunus Germany Tel: (06173) 78 34 - 0 Fax: (06173) 78 34 - 22 E-Mail: wolf@ra-amend.de The District Court of Friedberg opened bankruptcy proceedings against AIJAH automotive GmbH on Oct. 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AIJAH automotive GmbH Dieselstrasse 18 61231 Bad Nauheim Germany Attn: Markus Noeske, Manager Steinfurther Strasse 35 61231 Bad Nauheim Germany BAUGESCHAFT HENNING: Creditors Must File Claims by Nov. 19 ---------------------------------------------------------- Creditors of Baugeschaft Henning GmbH have until Nov. 19 to register their claims with court-appointed insolvency manager Dr. Wilhelm Wessel. Creditors and other interested parties are encouraged to attend the meeting at 9:10 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 Eutin Hall B First Stick Jungfernstieg 3 23701 Eutin 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. Wilhelm Wessel Roeckstrasse 1 23568 Luebeck Germany The District Court of Eutin opened bankruptcy proceedings against Baugeschaft Henning GmbH on Oct. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Baugeschaft Henning GmbH Attn: Henning Scheffler, Manager Sierksdorfer Strasse 12 23730 Neustadt in Holstein Germany BAUTECH FLIESEN: Claims Registration Ends Nov. 23 ------------------------------------------------- Creditors of Bautech Fliesen GmbH have until Nov. 23 to register their claims with court-appointed insolvency manager Rudolf Rossmann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 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: Rudolf Rossmann Weisskopfstr. 13 c/o Kanzlei Gabrielli Kaufer u. Koll. 86343 K�nigsbrunn Germany The District Court of Augsburg opened bankruptcy proceedings against Bautech Fliesen GmbH on Oct. 5. Connsequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bautech Fliesen GmbH Deutschenbaurstr. 37b 86157 Augsburg Germany CHRYSLER LLC: 55% UAW Workers Voted to Accept Tentative Pact ------------------------------------------------------------ Results from four major Chrysler LLC plants in Michigan came in in favor of a tentative labor contract between the carmaker and the United Auto Workers union, tilting the ratification scale towards the approval of the pact, Josee Valcourt and Neal E. Boudette of the Wall Street Journal report citing people familiar with the matter. Except for a union local in Beldivere, Illinois, about 55% of the total vote count from 26 of 27 union locals has accepted the tentative agreement. As reported in yesterday's Troubled Company Reporter, 78% of the union members at Chrysler's assembly plant in Warren, Michigan, accepted the contract, and 86% of workers at a metal stamping plant in Sterling Heights, Michigan, voted yes. Both plants have a total of 5,200 workers. As previously reported, Bill Parker, Chair of the 2007 UAW Chrysler National Negotiating Committee, who voted against the new tentative labor agreement between Chrysler LLC and the United Auto Workers union, released a minority report to the members of the UAW Chrysler Council, urging the Council to reject Chrysler's offer and let the Committee return to the bargaining table. The UAW Chrysler Council, which includes local union leaders from Chrysler LLC facilities throughout the U.S., voted overwhelmingly to recommend ratification of the tentative agreement reached on Oct. 10, 2007. Mr. Parker, however, disclosed that the National Negotiating Committee had a split vote on the contract. 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. * * * On Oct. 1, 2007, Standard & Poor's Ratings Services placed its corporate credit ratings on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC on CreditWatch with positive implications. As reported in the Troubled Company Reporter on Aug. 8, 2007, Standard & Poor's Ratings Services revised its loan and recovery ratings on Chrysler LLC (B/Negative/--), including a 'BB-' rating to the $5 billion "first-out" first-lien term loan tranche. This rating, two notches above the corporate credit rating of 'B' on Chrysler LLC, and the '1' recovery rating indicate S&P's expectation for very high recovery in the event of payment default. S&P also assigned a 'B' rating to the $5 billion "second-out" first-lien term loan tranche. This rating, the same as the corporate credit rating, and the '3' recovery rating indicate S&P's expectation for a meaningful recovery in the event of payment default. Moody's Investors Service has affirmed Chrysler Automotive LLC's B3 Corporate Family Rating, and the Caa1 rating of the company's $2 billion senior secured, second lien term loan in connection with Monday's closing of DaimlerChrysler AG's sale of a majority interest of Chrysler Group to Cerberus Capital Management LLC. CLASSIC-EVENTS GMBH: Claims Registration Period Ends Nov. 13 ------------------------------------------------------------ Creditors of "de Winter" Classic-Events GmbH have until Nov. 13 to register their claims with court-appointed insolvency manager Hendrik Rogge. Creditors and other interested parties are encouraged to attend the meeting at 11:15 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 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: Hendrik Rogge Haferweg 22 22769 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against "de Winter" Classic-Events GmbH on Oct. 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: "de Winter" Classic-Events GmbH Am Sandtorkai 56 20457 Hamburg Germany Attn: Michael Klussmann, Manager Holstenglacis 3/5 20355 Hamburg Germany DACHDECKEREI JESSEN: Claims Registration Ends Nov. 26 ----------------------------------------------------- Creditors of Dachdeckerei Jessen & Rohmann GmbH have until Nov. 26 to register their claims with court-appointed insolvency manager Ygglev Stintzing. Creditors and other interested parties are encouraged to attend the meeting at 11:45 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 Flensburg Hall A 220 Flensburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ygglev Stintzing Rathausstrasse 1 24937 Flensburg Germany The District Court of Flensburg opened bankruptcy proceedings against Dachdeckerei Jessen & Rohmann GmbH on Oct. 7. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Dachdeckerei Jessen & Rohmann GmbH Attn: Bernhard Jessen und Ralph Rohmann Ausackerbrueck 9 24986 Satrup Germany DIPLOM-INGENIEUR JUERGEN: Claims Registration Period Ends Nov. 9 ---------------------------------------------------------------- Creditors of Diplom-Ingenieur Juergen Klemmer Bauunternehmung GmbH have until Nov. 9 to register their claims with court- appointed insolvency manager Klaus W. Gerling. Creditors and other interested parties are encouraged to attend the meeting at 9:20 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 Bonn Hall S 2.18 Second Floor William-Strasse 23 53111 Bonn 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: Klaus W. Gerling MediaPark 6 B 50670 Cologne Germany The District Court of Bonn opened bankruptcy proceedings against Diplom-Ingenieur Juergen Klemmer Bauunternehmung GmbH on Oct. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Diplom-Ingenieur Juergen Klemmer Bauunternehmung GmbH Attn: Juergen Klemmer, Manager Tranke 9 53773 Hennef Germany EUROGRUND IMMOBILIEN: Claims Registration Period Ends Nov. 16 ------------------------------------------------------------- Creditors of EUROGRUND Immobilien-Management GmbH have until Nov. 16 to register their claims with court-appointed insolvency manager Dirk Decker. Creditors and other interested parties are encouraged to attend the meeting at 10:35 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 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: Dirk Decker Speersort 4 - 6 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against EUROGRUND Immobilien-Management GmbH on Oct. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: EUROGRUND Immobilien-Management GmbH Attn: Thomas Leptien, Manager Wendenstrasse 433 20537 Hamburg Germany GOHLIS-SANIERUNGS: Claims Registration Period Ends Nov. 12 ---------------------------------------------------------- Creditors of Gohlis-Sanierungs-GmbH have until Nov. 12 to register their claims with court-appointed insolvency manager Axel Roth. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.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 Leipzig Hall 145 First Floor Enforcement Court Bernhard Goering Strasse 64 04275 Leipzig 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 Roth Dittrichring 18-20 04109 Leipzig Germany Tel: 0341/1493105 Fax: 0341/1493111 The District Court of Leipzig opened bankruptcy proceedings against Gohlis-Sanierungs-GmbH on Oct. 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Gohlis-Sanierungs-GmbH Attn: Andreas Kunz, Manager Flemmingstrasse 9a 04177 Leipzig Germany HOFFMANN BETEILIGUNGEN: Claims Registration Period Ends Nov. 16 --------------------------------------------------------------- Creditors of Hoffmann Beteiligungen GmbH have until Nov. 16 to register their claims with court-appointed insolvency manager Rainer Eckert. Creditors and other interested parties are encouraged to attend the meeting at 9:20 a.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 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 Eckert Arthur-Menge-Ufer 5 30169 Hannover Germany Tel: 0511 626287-0 Fax: 0511 626287-10 The District Court of Hannover opened bankruptcy proceedings against Hoffmann Beteiligungen GmbH on Oct. 4. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hoffmann Beteiligungen GmbH Behnsenstr. 2 30449 Hannover Germany Atnn: Manfred Hoffmann, Manager Ringstrasse 40 32427 Minden Germany INDUSTRIEMASCHINEN DUEVEL: Creditors Must File Claims by Nov. 19 ---------------------------------------------------------------- Creditors of Industriemaschinen Duevel GmbH & Co. KG have until Nov. 19 to register their claims with court-appointed insolvency manager Rolf-Dieter Moenning. Creditors and other interested parties are encouraged to attend the meeting at 8:35 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: Rolf-Dieter Moenning Juelicher Strasse 116 52070 Aachen Tel: 0241/94618-0 Fax: 0241/533562 Germany The District Court of Aachen opened bankruptcy proceedings against Industriemaschinen Duevel GmbH & Co. KG on Oct. 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Industriemaschinen Duevel GmbH & Co. KG Eisenbahnweg 30 52068 Aachen Germany KARL-HEINZ JUSTEN: Creditors Must File Claims by November 19 ------------------------------------------------------------ Creditors of Karl-Heinz Justen GmbH have until Nov. 19 to register their claims with court-appointed insolvency manager Ralf Bornemann. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.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 Mayen Hall 17 St. Veit-Strasse 38 56727 Mayen 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: Ralf Bornemann Godesberger Allee 125-127 53175 Bonn Germany The District Court of Mayen opened bankruptcy proceedings against Karl-Heinz Justen GmbH on Oct. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Karl-Heinz Justen GmbH Keutelstr. 21a 56729 Ettringen Germany SARECO-KOMPOSTIERUNG: Creditors Must File Claims by November 19 --------------------------------------------------------------- Creditors of SARECO-Kompostierung GmbH have until Nov. 19 to register their claims with court-appointed insolvency manager Jan H. Wilhelm. Creditors and other interested parties are encouraged to attend the meeting at 9:40 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 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: Jan H. Wilhelm Albert-Einstein-Ring 11/15 22761 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against SARECO-Kompostierung GmbH on Oct. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SARECO-Kompostierung GmbH Georgsweder Damm 6 20539 Hamburg Germany SONNENSTUDIO WAHLSTEDT: Claims Registration Ends Nov. 26 -------------------------------------------------------- Creditors of Sonnenstudio Wahlstedt GmbH have until Nov. 26 to register their claims with court-appointed insolvency manager Dr. Carsten Krage. Creditors and other interested parties are encouraged to attend the meeting at 10:30 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: Dr. Carsten Krage Wall 55 24103 Kiel Germany The District Court of Norderstedt opened bankruptcy proceedings against Sonnenstudio Wahlstedt GmbH on Oct. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Sonnenstudio Wahlstedt GmbH Hofkoppel 24 23812 Wahlstedt Germany TCI COMPRESSORS: Claims Registration Period Ends Nov. 9 ------------------------------------------------------- Creditors of TCI Compressors & Expanders GmbH have until Nov. 9 to register their claims with court-appointed insolvency manager Christian Heintze. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.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 Chemnitz Hall 24 Fuerstenstrasse 21-23 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: Christian Heintze The District Court of Chemnitz opened bankruptcy proceedings against TCI Compressors & Expanders GmbH on Oct. 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: TCI Compressors & Expanders GmbH Attn: Kirsten Guenter, Manager Melanchtonstr. 1 08451 Crimmitschau Germany TRULBER STANZ-UND: Creditors' Meeting Slated for Nov. 6 ------------------------------------------------------- The court-appointed insolvency manager for Trulber Stanz-und Spezialmaschinenbau GmbH, Stefan Roth will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:00 a.m. on Nov. 6. The meeting of creditors and other interested parties will be held at: The District Court of Pirmasens Hall 235 Second Floor Pirmasens Germany The Court will also verify the claims set out in the insolvency manager's report at 3:00 p.m. on Dec. 4 at the same venue. Creditors have until Nov. 27 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Stefan Roth Bachstrasse 5-7 68165 Mannheim Germany Tel: 0621/44004-41 Fax: 0621/448 399 The District Court of Pirmasens opened bankruptcy proceedings against Trulber Stanz-und Spezialmaschinenbau GmbH on Oct. 2. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Trulber Stanz-und Spezialmaschinenbau GmbH Trulber Muehle 2 66957 Trulben Germany WILHELM PREUSS: Claims Registration Period Ends Nov. 19 ------------------------------------------------------- Creditors of Wilhelm Preuss GmbH & Co. KG have until Nov. 19 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. 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 Duisburg Hall C315 Third 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: Dr. Frank Kebekus Carl-Theodor-Str. 1 40213 Duesseldorf Germany The District Court of Duisburg opened bankruptcy proceedings against Wilhelm Preuss GmbH & Co. KG on Oct. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Wilhelm Preuss GmbH & Co. KG Gerhart-Hauptmann-Str. 84 47058 Duisburg Germany Attn: Hans-Peter Preuss, Manager Falkenweg 11 45478 Muelheim an der Ruhr Germany =========== G R E E C E =========== WIND HELLAS: PPC Purchase Deal Cues S&P's Negative Outlook ---------------------------------------------------------- Standard & Poor's Ratings Services revised to negative from stable its outlook on Greek mobile telecommunications operator WIND Hellas Telecommunications S.A. (fka Tim Hellas Telecommunications S.A.) and related entities. At the same time, the 'B' long-term corporate credit rating and all long- term debt ratings were affirmed. The outlook revision follows the company's announcement that it has agreed to buy Greek utility Public Power Corp. S.A.'s (BBB+/Stable/--) 50% minus one share stake in Tellas S.A., the alternative Greek fixed-line and broadband operator, for EUR175 million in cash. The recovery rating of '3' on Hellas V's EUR1.125 billion senior secured notes, indicating our expectation of meaningful (50%- 70%) recovery in the event of a payment default, is unchanged. "Importantly, the transaction will negatively impact liquidity; specifically existing cash balances, available committed funding, and free cash flow generation," said Standard & Poor's credit analyst Melvyn Cooke. WIND Hellas will use a part of its current balance sheet cash and is increasing its currently fully available EUR150 million revolving facility to EUR250 million in order to fund the acquisition. The negative outlook reflects weaker-than-expected liquidity resulting from the transaction. It also reflects Standard & Poor's view that significant deleveraging remains unlikely in the face of an aggressive financial policy. The long-term bullet debt maturities and increased debt make the capital structure particularly vulnerable to significant operating underperformance in the medium term. The outlook also anticipates that the group will defend its current market position and at least maintain its market share, and that Tellas' future potential funding needs will remain manageable within the group's liquidity post-transaction. S&P expects Tim Hellas to achieve pro forma lease-adjusted net debt (including PIK notes) to EBITDA of slightly more than 7.5x by year-end 2007. A downgrade could arise if liquidity deteriorates further following the Tellas acquisition or if the company fails to deliver sufficient revenue growth to support the group's capital structure. "On the other hand, the outlook could revert to stable if WIND Hellas' operating performance remains solid and if Tellas' operating performance materially improves from current levels, strengthening liquidity to levels more commensurate with the current ratings," added Mr. Cooke. ========= I T A L Y ========= PARMALAT SPA: Hancock Sues BofA over Fraud Role ----------------------------------------------- The U.S. District Court for the Southern District of New York has issued a protective order limiting the examination of two witnesses pursuant to Rule 30(b)(6) of the Federal Rules of Civil Procedure, such that only the counsel in the Hancock Action may question them. Rule 30(b)(6) provides the deposition of a public or private corporation, partnership, association or governmental agency, or any officer, director, or other persons who consent to testify on its behalf. District Judge Lewis Kaplan has overruled Hartford Life Insurance Company's objection that Bank of America Corporation, Bank of America, N.A., and Banc of America Securities LLC, did not offer any authority for its position, nor did it cite procedural standards or any case law, but rather appeals to "fairness." Hartford had contended that the Multi-District Litigation parties should be included in the deposition of BofA's witness, especially when the deposition is about a document BofA had previously shielded from examination, and scheduled to occur in the MDL in any event. Dr. Enrico Bondi, Extraordinary Administrator of the Parmalat companies, also opposed BofA's request, asserting that he should be allowed to use the testimony of the Rule 30(b)(6) witnesses in his case. Dr. Bondi said that preventing him from using the testimony of those witnesses defeats the discovery purposes of the multi-district panel's decision to consolidate the cases. BofA insisted that Hartford and Dr. Bondi should not be allowed to question the witnesses about a document they did not choose to use or challenge, since more than six days has passed after the close of fact discovery. During the hearing, Judge Kaplan said, "I see no sufficient reason why they now should be given another bite at the apple," and maintained that all of the parties had been given ample opportunity to examine BofA. Judge Kaplan, however, said that he sees no reason why litigants in the MDL proceedings should be foreclosed from using BofA's testimony in other cases. BofA Seeks Barclays Documents BofA asks the District Court to compel the compliance of Barclays Bank, PLC and Barclays Bank Capital, Inc., with the discovery requests, pursuant to Rule 45 of the Federal Rules of Civil Procedure. According to BofA, Barclays possesses potentially relevant information, but has refused to produce it despite being served with subpoenas. In addition, counsel in the Hancock Action had allegedly traveled to New York, to convene a Rule 30(b)(6) deposition, at which Barclays failed to appear. BofA asserts that Barclays should not be allowed to ignore its discovery obligations. BofA wants Barclays to provide a Rule 30(b)(6) witness for the fact discovery, and to tax Barclays with the costs of the court reporting and the travel expenses incurred by BofA's counsel. About Parmalat Headquartered in Milan, Italy, Parmalat S.p.A. -- http://www.parmalat.net/-- sells nameplate milk products that can be stored at room temperature for months. It also has about 40 brand product lines, which include yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The Company's U.S. operations filed for chapter 11 protection on Feb. 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, represent the Debtors. When the U.S. Debtors filed for bankruptcy protection, they reported more than US$200 million in assets and debts. The U.S. Debtors emerged from bankruptcy on April 13, 2005. Parmalat S.p.A. and its Italian affiliates filed separate petitions for Extraordinary Administration before the Italian Ministry of Productive Activities and the Civil and Criminal District Court of the City of Parma, Italy on Dec. 24, 2003. Dr. Enrico Bondi was appointed Extraordinary Commissioner in each of the cases. The Parma Court has declared the units insolvent. On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No. 04-14268, in the United States Bankruptcy Court for the Southern District of New York. Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat Capital Finance Ltd., and Food Holdings Ltd. Dairy Holdings and Food Holdings are Cayman Island special-purpose vehicles established by Parmalat S.p.A. The Finance Companies are under separate winding up petitions before the Grand Court of the Cayman Islands. Gordon I. MacRae and James Cleaver of Kroll (Cayman) Ltd. serve as Joint Provisional Liquidators in the cases. On Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case No. 04-10362, in the United States Bankruptcy Court for the Southern District of New York. In May 2006, the Cayman Island Court appointed Messrs. MacRae and Cleaver as Joint Official Liquidators. Gregory M. Petrick, Esq., at Cadwalader, Wickersham & Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon, Herlands Randolph, represent the Finance Companies in the Sec. 304 case. The Honorable Robert D. Drain presides over the Parmalat Debtors' U.S. cases. =================== K A Z A K H S T A N =================== EKSAM LLP: Creditors Must File Claims Dec. 1 -------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Eksam insolvent. Creditors have until Dec. 1 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (3162) 25-79-32 JOL-BARS LLP: Claims Filing Period Ends Dec. 1 ---------------------------------------------- The Tax Committee of Almaty has ordered the compulsory liquidation of LLP Jol-Bars (RNN 090500023950). Creditors have until Dec. 1 to submit written proofs of claims to: The Tax Committee of Almaty Room 208 Jangusurov Str. 113a Taldykorgan Almaty Kazakhstan Tel: 8 (3282) 24-19-77 MIHAILOVSKY MELZAVOD: Creditors' Claims Due on Dec. 1 ----------------------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP Mihailovsky Melzavod insolvent. Creditors have until Dec. 1 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Pavlodar Bekturov Str. 115-57 Pavlodar Kazakhstan REK XXI LLP: Claims Registration Ends Dec. 1 -------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Rek XXI insolvent. Creditors have until Dec. 1 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (3162) 25-79-32 SANTI-M LLP: Creditors Must File Claims Dec. 1 ---------------------------------------------- The Tax Committee of Almaty has ordered the compulsory liquidation of LLP Santi-M (RNN 090500033474). Creditors have until Dec. 1 to submit written proofs of claims to: The Tax Committee of Almaty Room 208 Jangusurov Str. 113a Taldykorgan Almaty Kazakhstan Tel: 8 (3282) 24-19-77 TAIMAS PROMOTION: Claims Filing Period Ends Nov. 28 --------------------------------------------------- LLP Taimas Promotion has declared insolvency. Creditors have until Nov. 28 to submit written proofs of claims to: LLP Taimas Promotion Baizakov Str. 90 Almalinsky Almaty Kazakhstan URBAN INSHAAT: Creditors' Claims Due on Dec. 1 ---------------------------------------------- Branch of JSC Urban Inshaat Sanayi Ve Tidjaret Anonim Shirketi in Almaty has declared insolvency. Creditors have until Dec. 1 to submit written proofs of claims to: Branch of JSC Urban Inshaat Sanayi Ve Tidjaret Anonim Shirketi Kazybek bi Str. 20a Almaty Kazakhstan VOKZAL-SERVICE JSC: Claims Registration Ends Nov. 28 ---------------------------------------------------- Western Regional Branch of JSC Vokzal-Service has declared insolvency. Creditors have until Nov. 28 to submit written proofs of claims to: Western Regional Branch of JSC Vokzal-Service Room 528 Moldagulov ave. 49, JDU Aktobe Aktube Kazakhstan =================== K Y R G Y Z S T A N =================== HIMHLORTECH LLC: Proof of Claim Deadline Slated for November 23 --------------------------------------------------------------- Kyrgyz-Russian Joint LLC Himhlortech has declared insolvency. Creditors have until Nov. 23 to submit written proofs of claim to: Kyrgyz-Russian Joint LLC Himhlortech Promzona-1 Tashkumyr Osh Kyrgyzstan Tel: (+996 312) 56-92-66 =================== L U X E M B O U R G =================== AXIUS EUROPEAN: Moody's Rates EUR15 Million Class E Notes at Ba3 ---------------------------------------------------------------- Moody's Investors Service assigned definitive ratings to six classes of Notes to be issued by Axius European CLO S.A., a special purpose company incorporated in Luxembourg. The ratings are: -- Aaa to the EUR250,000,000 Class A Senior Secured Floating Rate Notes due 2023; -- Aa2 to the EUR10,000,000 Class B1 Senior Secured Deferrable Floating Rate Notes due 2023; -- Aa2 to the EUR9,000,000 Class B2 Senior Secured Deferrable Fixed Rate Notes due 2023; -- A2 to the EUR16,500,000 Class C Senior Secured Deferrable Floating Rate Notes due 2023; -- Baa3 to the EUR 16,000,000 Class D Senior Secured Deferrable Floating Rate Notes due 2023; and -- Ba3 to the EUR15,000,000 Class E Senior Secured Deferrable Floating Rate Notes due 2023. The EUR33,500,000 Subordinated Notes due 2023 are not rated by Moody's. The ratings assigned by Moody's to the various Classes of Senior Secured Notes address the expected loss posed to investors by the legal final maturity in 2023. It is not an opinion about the ability of the Issuer to pay interest. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks, such as those associated with the timing of principal prepayments and other market risks, have not been addressed and may have a significant effect on yield to investors. These definitive ratings are based upon: 1. an assessment of the eligibility criteria and portfolio guidelines applicable to the future additions to the portfolio; 2. the protection against losses through the subordination of t