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 Tuesday, October 30, 2007, Vol. 8, No. 215 Headlines A U S T R I A ALTWIENER GASTSTATTEN: Claims Registration Period Ends Nov. 21 EGKF EDV-ZUBEHOER: Claims Registration Period Ends Nov. 21 ENERGIE & SOLAR: Claims Registration Period Ends Nov. 20 MUELLER-SCHERR: Claims Registration Period Ends Nov. 19 SDP PERSONALBEREITSTELLUNG: Claims Registration Ends Nov. 20 SUSNJAR LLC: Claims Registration Period Ends Nov. 20 B E L A R U S BELARUSBANK JSSB: Moody's Assigns Ba1 & B2 Deposit Ratings B E L G I U M TIMKEN CO: Completes US$200 Million Acquisition of Purdy Corp. TIMKEN CO: Earns US$41.2 Million in Quarter Ended Sept. 30 B U L G A R I A KREMIKOVTZI AD: Moody's Changes Outlook to Neg. on Caa1 Ratings F I N L A N D HILTON HOTELS: Moody's Lowers Senior Unsecured Ratings to Caa1 HILTON HOTELS: Blackstone Merger Cues S&P to Withdraw Ratings HILTON HOTELS: Merger Closing Cues Fitch to Withdraw Ratings M-REAL: Moody's Affirms B3 Corporate Family Rating F R A N C E REXEL SA: Moody's May Cut Ba1 Rating After Review XEROX CORP: Moody's Reviews Ba1 Rating and May Upgrade G E R M A N Y AHRENS GMBH: Creditors' Meeting Slated for Nov. 1 BAU-HERR ZWEITE: Creditors' Meeting Slated for Nov. 20 INTERNET HYPOTHEKEN: Claims Registration Period Ends Nov. 21 KATA GMBH: Claims Registration Period Ends Nov. 27 MAKE LADIES: Claims Registration Period Ends November 6 MEIN EIGENHEIM: Claims Registration Period Ends November 6 NETCENTERIT GMBH: Claims Registration Period Ends November 2 PK PLANUNGSGESELLSCHAFT: Creditors' Meeting Slated for Dec. 7 PROARTIS GMBH: Claims Registration Period Ends Nov. 21 ROCHEL GESELLSCHAFT: Claims Registration Period Ends Nov. 19 TICKETOOL GMBH: Creditors' Meeting Slated for Nov. 2 TISCHLEREI RIMA.S: Creditors' Meeting Slated for Nov. 2 TRANSPORT & LOGISTIK: Claims Registration Period Ends Nov. 5 WWW.INDUSTRIEREGAL.DE GMBH: Claims Registration Ends November 9 I R E L A N D CELESTICA INC: Earns US$51.5 Mil. in 3rd Quarter Ended Sept. 30 WR GRACE: Earns US$16.7 Million in Quarter Ended September 30 K A Z A K H S T A N BRIEF CENTRAL ASIA: Creditors Must File Claims by Dec. 5 BUSINESS ANALITIKA: Creditors Must File Claims by Dec. 5 INCOM TECH: Claims Filing Period Ends Dec. 1 MM-HOLDING LLP: Creditors' Claims Due by Dec. 1 OTAN LLP: Claims Registration Period Ends Dec. 5 ROYAL TRADE RIDDER: Creditors Must File Claims by Dec. 1 ROYAL TRADE SEMIPALATINSK: Claims Filing Period Ends Dec. 1 TENTEK LLP: Creditors' Claims Due by Dec. 5 TRANS BUSINESS: Claims Registration Period Ends Dec. 1 K Y R G Y Z S T A N NOMAD COMPANY: Creditors Must File Claims by November 28 L U X E M B O U R G ARES FINANCE 2: S&P Affirms Class E Notes' Rating at BB ARES FINANCE SRL: S&P Affirms Class F Notes' Rating at BB N E T H E R L A N D S ESSENCE II: Fitch Rates EUR9.8 Million Class C Notes at BB R U S S I A AMURINVEST-1 CJSC: Creditors Must File Claims by Nov. 20 CARDBOARD & PAPER: Creditors Must File Claims by Dec. 20 DESNITSA CJSC: Creditors Must File Claims by Nov. 20 KOMBA CJSC: Creditors Must File Claims by Dec. 20 KOZHVINSKIJ RK: Asset Sale Slated for November 26 KYZYLSKAYA SUE: Asset Sale Slated for November 20 MOESK OJSC: Moody's Assigns Ba2 Corporate Family Rating PARCHUMSKIJ LLC: Creditors Must File Claims by Dec. 20 SCHEKINGASSTROY OJSC: Creditors Must File Claims by Nov. 20 SEDEL'NIKOVSKIJ OJSC: Asset Sale Slated for Nov. 20 SIBHEATINSULATION ISU: Creditors Must File Claims by Dec. 20 TOMLESPROM CJSC: Creditors Must File Claims by Nov. 20 VRACHEVO-GORKI APC: Asset Sale Slated for November 21 S W I T Z E R L A N D BRODIMPEX LLC: Claims Registration Period Ends November 5 BUSINESS SOFT: Creditors' Liquidation Claims Due by December 4 F. SCHNEIDER: Aargau Court Oversees Bankruptcy Proceedings H. RUF JSC: Creditors' Liquidation Claims Due by November 5 HORSE SHOP: Creditors' Liquidation Claims Due by November 30 JUPITER INVESTMENT: Creditors' Liquidation Claims Due by Nov. 2 MADELUNG HANDELS: Creditors' Liquidation Claims Due by Dec. 31 RUEDI BACHMANN: Schwyz Court Closes Bankruptcy Proceedings SEIBOLD HOLDING: Creditors' Liquidation Claims Due by Nov. 9 STAMPFLI TORSYSTEME: Solothurn Court Closes Bankruptcy Case T U R K E Y DOGAN YAYIN: Moody's Assigns Ba3 Corporate Family Rating U K R A I N E 9999-LTD: Creditors Must File Claims by October 31 ALNEST LLC: Creditors Must File Claims by October 31 AVIATION SOLUTION: Creditors Must File Claims by October 31 IRIS INTERNATIONAL: Creditors Must File Claims by October 31 MAMI-TEKS LLC: Creditors Must File Claims by October 31 REFRAME LLC: Creditors Must File Claims by October 31 UNITED TRADE: Creditors Must File Claims by October 31 U N I T E D K I N G D O M AQUILA PLC: S&P Removes Watch on Class E's BB Ratings B L GROUP: Appoints Joint Administrators from PwC CARRY ON LONDON: Appoints Colin Prescott as Liquidator COTT CORP: Weak Performance Prompts S&P to Cut Rating to B COVERPAC POLYTHENE: Taps Vantis to Administer Assets FEDERAL-MOGUL: Earns US$14 Million in Quarter Ended September 30 LOCKE GROUP: Appoints Deloitte & Touche as Administrators M & G TRAILERS: Brings In Administrators from PwC MARTINEZ CONSTRUCTION: A. Clifton Leads Liquidation Procedure MAYBIRD HOMES: Claims Filing Period Ends November 13 MEL JONES & SON: Taps Joint Administrators from Baker Tilly METRONET RAIL: Transport for London Submits Formal Takeover Bid RV CAPITAL: Enters Into Administration Procedure SAMSONITE CORP: Completes US$1.7 Bln Merger w/ CVC Capital Units SOLO CUP: Fitch Holds B- Issuer Default Rating STURGEON BUILDERS: Brings In Liquidators from Baker Tilly T & K ENGINEERING: Calls In Liquidators from Moore Stephens * Large Companies with Insolvent Balance Sheet ********* ============= A U S T R I A ============= ALTWIENER GASTSTATTEN: Claims Registration Period Ends Nov. 21 -------------------------------------------------------------- Creditors owed money by KEG Altwiener Gaststatten (FN 257846k) have until Nov. 21 to file written proofs of claim to court-appointed estate administrator Herbert Schaffler at: Mag. Herbert Schaffler c/o Dr. Sieglinde Schubert Alserstrasse 13/1/2/7 1080 Vienna Austria Tel: 368 49 50 Fax: 368 49 50 – 50 E-mail: herbert.schaffler@aon.at sieglindeschubert@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:50 a.m. on Dec. 5 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 26 (Bankr. Case No. 2 S 127/07z). Sieglinde Schubert represents Mag. Schaffler in the bankruptcy proceedings. EGKF EDV-ZUBEHOER: Claims Registration Period Ends Nov. 21 ---------------------------------------------------------- Creditors owed money by LLC EGKF EDV-Zubehoer Handels (FN 94577i)have until Nov. 21 to file written proofs of claim to court-appointed estate administrator Karl Schirl at: Dr. Karl Schirl c/o Mag. Markus Siebinger Krugerstrasse 17/3 1010 Vienna Austria Tel: 513 22 31 Fax: 513 22 31-1 E-mail: dr.karl.schirl@der-rechtswanwalt.at markus.siebinger@der-rechtsanwalt.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Dec. 5 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 26 (Bankr. Case No. 2 S 126/07b). Markus Siebinger represents Dr. Schirl in the bankruptcy proceedings. ENERGIE & SOLAR: Claims Registration Period Ends Nov. 20 -------------------------------------------------------- Creditors owed money by LLC Energie & Solar Installations (FN 247084i) have until Nov. 20 to file written proofs of claim to court-appointed estate administrator Michael Troethandl at: Dr. Michael Troethandl Josef Folk-Gasse 7 2514 Traiskirchen Austria Tel: 02252/86 580 Fax: 02252/86580-3 E-mail: troethandl@lexacta.com Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Dec. 4 for the examination of claims. The meeting of creditors will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in Traiskirchen, Austria, the Debtor declared bankruptcy on Sept. 27 (Bankr. Case No. 11 S 104/07s). MUELLER-SCHERR: Claims Registration Period Ends Nov. 19 ------------------------------------------------------- Creditors owed money by LLC Mueller-Scherr Laborausruestung (FN 79328i) have until Nov. 19 to file written proofs of claim to court-appointed estate administrator Johannes Muehllechnerat: Mag. Johannes Muehllechner Graben 21/3 4020 Linz Austria Tel: 0732/77 22 00 Fax: 0732/77 22 004 E-mail: muehllechner@eurojuris.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Dec. 3 for the examination of claims. The meeting of creditors will be held at: The Land Court of Linz Room 522 Fifth Floor Linz Austria Headquartered in Linz, Austria, the Debtor declared bankruptcy on Sept. 26 (Bankr. Case No. 12 S 74/07f). SDP PERSONALBEREITSTELLUNG: Claims Registration Ends Nov. 20 ------------------------------------------------------------ Creditors owed money by LLC SDP Personalbereitstellung (FN 280476s) have until Nov. 20 to file written proofs of claim to court-appointed estate administrator Gerhard Stauder at: Mag. Gerhard Stauder c/o Dr. Georg Kahlig Siebensterngasse 42 1070 Vienna Austria Tel: 523 47 91 Fax: 523 47 91 33 E-mail: kahlig.partner@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 1:00 p.m. on Dec. 4 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 25 (Bankr. Case No. 6 S 124/07p). Georg Kahlig represents Mag. Stauder in the bankruptcy proceedings. SUSNJAR LLC: Claims Registration Period Ends Nov. 20 ---------------------------------------------------- Creditors owed money by LLC Susnjar (FN 275970p) have until Nov. 20 to file written proofs of claim to court-appointed estate administrator Matthias Klissenbauer at: Dr. Matthias Klissenbauer c/o Mag. Stefan Jahns Gonzagagasse 15 1010 Vienna Austria Tel: 533 28 55 Fax: 533 28 55 28 E-mail: office@klissenbauer.com kanzlei@jahns.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:45 p.m. on Dec. 4 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 25 (Bankr. Case No. 6 S 123/07). Stefan Jahns represents Dr. Klissenbauer in the bankruptcy proceedings. ============= B E L A R U S ============= BELARUSBANK JSSB: Moody's Assigns Ba1 & B2 Deposit Ratings ---------------------------------------------------------- Moody's Investors Service assigned these global scale ratings to Belarusbank: E+ bank financial strength rating , Ba1 long-term and Not Prime short-term local currency deposit ratings, B2 long-term and Not Prime short-term foreign currency deposit ratings. All of the bank's ratings carry a stable outlook. Belarusbank's E+ BFSR, which translates to a Baseline Credit Assessment of B1, is underpinned by its dominant market position as the country's largest bank by assets, capital and retail deposits, as well as its good asset quality and increasing international profile. The rating is constrained by the bank's fairly weak corporate governance due to the high level of government interference in the bank's business, very large borrower concentration and historically low profitability. The bank's Ba1/Not Prime long-term/short-term local currency deposit rating factors in Moody's assessment of the very high probability of systemic support in the event of a stress situation, given a) the bank's 77.26% ownership by the Belarus government and b) the bank's dominant position in the country's banking system, represented by its 41% share of total assets and 62% share of retail deposits at year-end 2006. As a result, this rating enjoys a three-notch uplift from the bank's B1 Baseline Credit Assessment. Belarusbank's B2 long-term foreign currency deposit rating is constrained by the country ceiling for Belarus. As the country's largest government owned bank, Belarusbank carries out a number of projects approved by the Government. In particular, 55% of the retail loans made by the bank are home loans provided under a presidential project with subsidized terms. According to Moody's, Belarusbank's BFSR could be upgraded if the bank reduces the level of borrower concentration significantly and improves profitability, while maintaining good asset quality. Although unlikely in the medium term, the bank's BFSR can also benefit from a lower level of government interference in Belarusbank's business. Conversely, downward rating pressure on the bank's BFSR could arise from increasing borrower concentration and significantly weakening asset quality. Belarusbank's local currency deposit rating is expected to change in tandem with the bank's BFSR. The bank's foreign currency deposit rating would be upgraded in the event of an upgrade of Belarus' foreign currency deposit ceiling, whereas a downgrade is unlikely in the medium term as it is already constrained by that ceiling. Based in Minsk, Belarus, Belarusbank reported total IFRS consolidated assets, shareholders' equity and net income of US$5.54 billion, US$591 and US$40.8 million, respectively, at year-end 2006 (US$3.63 billion, US$431 million and US$24.2 million, respectively, a year before). ============= B E L G I U M ============= TIMKEN CO: Completes US$200 Million Acquisition of Purdy Corp. -------------------------------------------------------------- The Timken Company completed its acquisition of The Purdy Corp., a precision manufacturer and systems integrator for military and commercial aviation customers, for US$200 million. Both parties entered into an agreement on Sept. 17, 2007, adding new power-transmission products and capabilities to Timken's aerospace business. The Purdy Corp.'s expertise includes design, manufacturing, testing, overhaul and repair of transmissions, gears, rotor-head systems and other high-complexity components for helicopter and fixed-wing aircraft platforms. Founded in 1946, Purdy is based in Manchester, Connecticut, employs more than 200 people and had 2006 sales of approximately US$87 million. Timken will operate the business as Timken Aerospace Transmissions, LLC, from its current location in Manchester, Connecticut. Timken will continue to make investments in its ability to meet the power-transmission needs of its growing customer base in the commercial and military aviation industries. "Customers have the opportunity to benefit from the strength of a company that is a leader in friction-management technology with growing capabilities in power transmission," J. Ron Menning, president of aerospace and defense, said. "We believe that the increasing breadth of our portfolio is a distinct advantage, and Timken is rapidly developing the kind of complete aerospace systems expertise and portfolio that will create exceptional customer and shareholder value." Timken offers a comprehensive line of aerospace quality bearings, along with a select range of turbine engine components and MRO services. Known for consistent, critical performance and backed by stringent quality standards, Timken aerospace products are found in aircraft engines, gearboxes, helicopter transmissions, auxiliary power units, landing wheels, airframes and instrumentation. Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) -- http://www.timken.com/-- is a manufacturer of highly engineered bearings and alloy steels. It also provides related components and services such as bearing refurbishment for the aerospace, medical, industrial and railroad industries. The company has operations in Argentina, Australia, Belgium, Brazil, Canada, China, Czech Republic, England, France, Germany, Hungary, India, Italy, Japan, Korea, Mexico, Netherlands, Poland, Romania, Russia, Singapore, South America, Spain, Taiwan, Turkey, UnitedStates, and Venezuela and employs 27,000 employees. * * * The Timken Company carries Moody's Investors Service's Ba1 Long-Term Corporate Family, Senior Unsecured Debt and Probability-of-Default Ratings. The outlook is stable. TIMKEN CO: Earns US$41.2 Million in Quarter Ended Sept. 30 ---------------------------------------------------------- The Timken Company reported a net income of US$41.2 million for the third quarter 2007, compared to a net income of US$46.5 million for the same quarter last year. The company reported sales of US$1.26 billion in the third quarter of 2007, an increase of 6% over the same period a year ago. Strong sales in industrial markets were partially offset by the strategic divestment of the company's automotive steering and European steel tube manufacturing operations in prior periods. The company achieved third-quarter income from continuing operations of US$41.2 million, up from US$38.7 million in last year's third quarter. "While Timken's third-quarter performance exceeded what we achieved last year, our results still fell short of what we had expected to deliver," James W. Griffith, Timken's president and chief executive officer, said. "As we move forward with our strategic initiatives, we have intensified our efforts to drive better execution across the company during a period of strong demand in multiple market sectors." For the first nine months of 2007, sales were US$3.89 billion, an increase of 4% from the same period in the prior year, driven by strong industrial markets. The company's performance benefited from higher volume and improved pricing, which were partially offset by higher raw-material, manufacturing and logistics costs. Total debt was US$601.4 million as of Sept. 30, 2007, or 25.5% of capital. Net debt at Sept. 30, 2007, was US$513.6 million, or 22.6% of capital, compared to US$496.8 million, or 25.2%, as of Dec. 31, 2006. Year-to-date, the increase in net debt was primarily due to higher working capital requirements, driven by strong demand, and increased capital expenditures in support of growth initiatives. At Sept. 30, 2007, the company's balance sheet showed total assets of US$4.1 billion and total liabilities of US$2.4 billion, resulting in a shareholders' equity of US$1.7 billion. Equity at Dec. 31, 2006, was US$1.4 million. Outlook Timken anticipates strong global industrial demand, while automotive demand is expected to remain stable. The combination of strong industrial markets, capacity additions and operating improvements is expected to drive stronger performance. About Timken Company Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) -- http://www.timken.com/-- is a manufacturer of highly engineered bearings and alloy steels. It also provides related components and services such as bearing refurbishment for the aerospace, medical, industrial and railroad industries. The company has operations in Argentina, Australia, Belgium, Brazil, Canada, China, Czech Republic, England, France, Germany, Hungary, India, Italy, Japan, Korea, Mexico, Netherlands, Poland, Romania, Russia, Singapore, South America, Spain, Taiwan, Turkey, United States, and Venezuela and employs 27,000 employees. * * * The Timken Company carries Moody's Investors Service's Ba1 Long-Term Corporate Family, Senior Unsecured Debt and Probability-of-Default Ratings. The outlook is stable. =============== B U L G A R I A =============== KREMIKOVTZI AD: Moody's Changes Outlook to Neg. on Caa1 Ratings --------------------------------------------------------------- Moody's Investors Service changed the outlook to negative on the Caa1 corporate family rating of Kremikovtzi AD and the Caa1 rating on its EUR325 million senior secured guaranteed notes raised at Bulgaria Steel Finance BV to reflect lower than originally expected profitability in 2007. In 2007, Kremikovtzi's operating performance remained broadly stable and benefited from the on-going restructuring program at the plant, as well as supportive market conditions in first half 2007. Kremikovtzi last 12 month EBITDA for 2007 is expected to remain behind the initial expectation for the year (that exceeds a US$130 million EBITDA level covenanted for the end of 2007) due to a lower than projected revenue per tonne and weaker margins achieved by Kremikovtzi in first half 2007 reflecting strong energy and raw material prices and inflation impact on labor and overheads costs, while the Company continues to invest to secure future profitability and growth in volumes. Moody's notes that Kremikovtzi is working with various Government agencies to obtain the Integrated Complex Permit to be issued by the Bulgarian Ministry for Environment and Water Recourses. In particular, the Company discusses its progress with implementation of the environmental improvements agreed as part of its Viability plan with the EU and the Government agencies at the end of 2006. Moody's notes that a delay with the implementation of the measures may lead to penalties. Moody's continues to monitor the dialogue between the Company and Law Debentures, the Trustee under the Trust Deed in relation to the Company's EUR325 million notes. On Aug. 2, 2007, the Trustee gave Kremikovtzi AD notices of Potential Events of Default in relation to conditions 5.7(c) and 5.8 of the Notes and in relation to condition 5.7(d) on Sept. 6, 2007. The notices allow a 30-day period for Kremikovtzi to provide relevant reports and remedy the breaches in provision of information. While Kremikovtzi is providing the additional information, Moody's notes that some conditions that gave rise to the breach under 5.7(c) preceded the Notes and may not be easily remedied by the Company. The Trustee has not completed its review and Kremikovtzi continues its efforts to mitigate the stated concerns. The majority shareholder in Kremikovtzi remains committed to the project and continues to inject capital into the venture (including US$15 million subordinated loan made available in October 2007). At this stage of the restructuring, Kremikovtzi's liquidity position and debt service obligations are largely supported by the additional capital contributions. The Company also relies on working capital facilities and credits, and may consider a sale of legacy inventory to fund capacity expansion. To stabilize the outlook on the ratings, Moody's will look for a resolute strengthening in profitability in line with the initial projections, as well as an improvement in cash flow generation and in the liquidity position of the Company. The ratings affected by this rating action are: -- Caa1 corporate family rating at Kremikovtzi AD; -- Caa1/LGD4 (55%) ratings on senior secured guaranteed notes at Bulgaria Steel Finance BV; Kremikovtzi AD corporate family rating reflects application of Moody's rating methodology for government-related issuers and comprise these inputs: -- Baseline credit assessment of 17 which equates to Caa1; -- Baa3 local currency rating of Bulgaria; -- Low dependence and low support. Moody's last rating action on Kremikovtzi AD was on April 4, 2007, when the rating agency assigned the Loss Given Default ratings. Kremikovtzi AD is a single-site steel producer in Bulgaria that reported BGN896 million in revenues in 2006. ============= F I N L A N D ============= HILTON HOTELS: Moody's Lowers Senior Unsecured Ratings to Caa1 -------------------------------------------------------------- Moody's Investors Service downgraded Hilton Corporation's corporate family rating and senior unsecured ratings to B3 and Caa1, respectively. All of Hilton's ratings will be withdrawn because Moody's believes it lacks adequate information to maintain a rating. About 84% of Hilton's US$1.675 billion senior unsecured public bonds were tendered for repayment pursuant to the company's tender offers and consent solicitations. Various supplemental indentures have been executed whereby substantially all restrictive covenants, reporting requirements and certain events of default were eliminated. The downgrade reflects the closing of the leverage buy-out that will result in weak credit metrics. Moody's estimates pro-forma adjusted debt/EBITDA of about 12 times trailing EBITDA, and EBITDA to interest marginally above 1x. The rating on the senior unsecured bonds reflects the application of Moody's Loss Given default methodology based upon the company's post LBO capital structure. Moody's last rating action occurred on July 5, 2007, when the company's ratings were placed on review for possible downgrade. Ratings downgraded: -- Corporate Family rating to B3 from Ba1 -- Probability of default to B3 from Ba1 -- Senior notes to Caa1, LGD 5, 76% -- Senior bank credit facilities that were repaid to Caa1, LGD5 76% from Ba1, LGD 4 -- Senior, subordinated and preferred shelf to (P) Caa1, LGD5, 76%, (P) Caa2, LGD6, 97%, (P) Caa2 LGD6, 97%, respectively from (P) Ba1, LGD4, (P) Ba2, LGD 6, (P) Ba2, LGD 6, respectively. The Blackstone Group's real estate and corporate private equity funds acquired the company on Oct. 24, 2007 in an all-cash transaction. The Blackstone Group is a global alternative asset manager and provider of financial advisory services. Its alternative asset management businesses include the management of corporate private equity funds, real estate opportunity funds, funds of hedge funds, mezzanine funds, senior debt funds, proprietary hedge funds and closed-end mutual funds. Closing of Merger Pursuant to the terms of the merger agreement, holders of Hilton's common stock will receive US$47.50 in cash, without interest, for each share of common stock that they own immediately prior to the effective time of the Merger. As a result of the Merger, Hilton's common stock will cease to trade on the New York Stock Exchange and will be delisted. Hilton also announced that, as of 8:00 a.m., New York City time, on Oct. 24, 2007, the following principal amounts of its securities had been validly tendered and not withdrawn pursuant to Hilton's cash tender offers for these securities: -- US$363.7 million aggregate principal amount of its 7.625% Notes due 2008, -- US$129.5 million aggregate principal amount of its 7.200% Notes due 2009, -- US$290.7 million aggregate principal amount of its 8.250% Notes due 2011, -- US$369.9 million aggregate principal amount of its 7.625% Notes due 2012, -- US$145.1 million aggregate principal amount of its 7.500% Notes due 2017, -- US$103.6 million aggregate principal amount of its 8.000% Quarterly Interest Bonds due 2031 and -- CLP67,715,000,000 aggregate principal amount of its 7.430% Chilean Inflation-Indexed (UF) Notes due 2009. All securities validly tendered and not withdrawn have been accepted for payment pursuant to the tender offers. As a result of the acceptance of securities for purchase pursuant to Hilton's tender offers, the supplemental indentures to the Indenture dated as of April 15, 1997, by and between Hilton and The Bank of New York Trust Company, N.A., which were previously executed and delivered in connection with the consent solicitations relating to the tender offers, have become operative. In addition, Hilton reported that it had entered into a supplemental indenture to the Indenture dated as of April 22, 2003, by and between Hilton and The Bank of New York Trust Company, N.A., governing Hilton's 3.375% Convertible Senior Notes due 2023, as required by such indenture. This supplemental indenture provides that the Convertible Notes are now convertible into US$2,111.11 in cash per US$1,000 principal amount of Convertible Notes converted. The Merger, the repayment of certain Hilton indebtedness and the payment of transaction expenses has been financed with US$20.6 billion of mortgage and mezzanine debt financing incurred by subsidiaries of Hilton and approximately US$5.7 billion of equity invested by investment funds affiliated with The Blackstone Group. The Secured Debt is secured by substantially all of Hilton's consolidated assets and contains significant restrictions on the incurrence of any additional indebtedness by Hilton, including the prohibition of any additional Hilton indebtedness for money borrowed and/or evidenced by bonds, debentures, notes and other similar instruments, other than a limited right for an unsecured financing in an amount of not less than US$1.0 billion at Hilton, provided that Hilton makes the election to proceed with such an unsecured financing within 30 days of the Merger. Thereafter, Hilton would not be permitted to enter into such a financing without the unanimous consent of the Secured Debt holders. The proceeds of any Hilton unsecured financing, if completed, would be used to repay an equal amount of the Secured Debt. Acquisition financing was provided by Bear Stearns, Bank of America, Deutsche Bank, Goldman Sachs, Lehman Brothers, Merrill Lynch and Morgan Stanley. These institutions provided the mortgage and mezzanine financing and also served as financial advisors to Blackstone. Simpson Thacher & Bartlett LLP acted as legal advisor to Blackstone. UBS Investment Bank and Moelis Advisors acted as financial advisors to Hilton, and Sullivan & Cromwell LLP acted as legal advisor to Hilton. About Hilton Hotels Corporation Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, owns, manages or franchises a hotel portfolio including Hilton(R), Conrad(R) Hotels & Resorts, Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Hilton Garden Inn(R), Hilton Grand Vacations(TM), Homewood Suites by Hilton(R) and The Waldorf=Astoria Collection(R). The company's portfolio includes more than 2,800 hotels and 480,000 rooms in 76 countries and territories, including Australia, Austria, Barbados, Finland, India, Indonesia, Trinidad, and Tobago, Philippines and Vietnam. HILTON HOTELS: Blackstone Merger Cues S&P to Withdraw Ratings ------------------------------------------------------------- Standard & Poor's Ratings Services withdrew its ratings on Hilton Hotels Corp., including the 'BB-' corporate credit rating, following the close of the company's merger with an affiliate of The Blackstone Group's real estate and corporate private equity funds. In addition, a significant amount of Hilton's outstanding rated securities have been tendered pursuant to its cash tender offers, or are expected to convert pursuant to a supplemental indenture related to the convertible securities. S&P's withdrawal of the 'BB+' rating on the company's senior unsecured issues contemplated the refinancing of these securities. Hilton does not expect to publicly file financial statements going forward. Before its withdrawal, the 'BB-' corporate credit rating was on CreditWatch; it would likely have been lowered to no higher than the 'B' category had it remained in place. Ratings List * Ratings Withdrawn Hilton Hotels Corp. To From -- ---- Corporate Credit Rating NR BB-/Watch Neg/-- Senior Unsecured NR BB+/Watch Neg About Hilton Hotels Corporation Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, owns, manages or franchises a hotel portfolio including Hilton(R), Conrad(R) Hotels & Resorts, Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Hilton Garden Inn(R), Hilton Grand Vacations(TM), Homewood Suites by Hilton(R) and The Waldorf=Astoria Collection(R). The company's portfolio includes more than 2,800 hotels and 480,000 rooms in 76 countries and territories, including Australia, Austria, Barbados, Finland, India, Indonesia, Trinidad, and Tobago, Philippines and Vietnam. HILTON HOTELS: Merger Closing Cues Fitch to Withdraw Ratings ------------------------------------------------------------ Fitch Ratings affirmed and withdrew the debt ratings of Hilton Hotels Corp. The affected ratings include: -- Issuer Default Rating 'B'/Withdrawn; -- Senior credit facility 'BB+'/Withdrawn; -- Senior notes 'BB+'/Withdrawn; The Negative Rating Watch has been removed. These actions are due to the closing of Hilton's merger with affiliates of The Blackstone Group that was announced July 3, 2007. Fitch will no longer provide ratings or analytical coverage of this issuer. About Hilton Hotels Corporation Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, owns, manages or franchises a hotel portfolio including Hilton(R), Conrad(R) Hotels & Resorts, Doubletree(R), Embassy Suites Hotels(R), Hampton Inn(R), Hampton Inn & Suites(R), Hilton Garden Inn(R), Hilton Grand Vacations(TM), Homewood Suites by Hilton(R) and The Waldorf=Astoria Collection(R). The company's portfolio includes more than 2,800 hotels and 480,000 rooms in 76 countries and territories, including Australia, Austria, Barbados, Finland, India, Indonesia, Trinidad, and Tobago, Philippines and Vietnam. M-REAL: Moody's Affirms B3 Corporate Family Rating -------------------------------------------------- Moody's Investors Service changed the outlook to negative from stable and affirmed M-real's Corporate Family Rating of B3. "The change of outlook reflects M-real's free cash flow generating capacity, that is -- even in today's benign macroeconomic environment -- weak and prone to further weakening in conditions of continuing cost inflation, adverse foreign exchange movements and sluggish price development and which could limit M-real's ability to repay debt maturities in 2009" said Martin Kohlhase, lead analyst for the paper and forest products industry in Europe. Moody's stated that the affirmation of the B3 corporate family rating reflects that M-real's profitability and free cash flow should benefit from: (i) the completed construction of the Uruguayan pulp mill reducing capital expenditures notably going forward; (ii) the positive results of the ongoing working capital reduction program; (iii) disposal proceeds from the Map Merchant disposal; as well as (iv) likely dividend payout restraints. The affirmation furthermore incorporates the availability of sufficient liquidity during 2008 to allow the company to participate in industry discussions focusing on capacity adjustments and sector consolidation. With sufficient covenant headroom under the undrawn EUR500 million credit facility (albeit taking into account the material adverse change clause), but also with the proceeds from the MAP Merchant sale covering 2008 debt maturities, M-real will have until the end of 2008 or early 2009 before it needs to address the 2009 maturities of EUR 328 million (including private placements in June) and the maturity of its EUR500 million main credit facility (December). However, the negative outlook indicates that the expected profitability and free cash flow development of M-real during the next several quarters may not be sufficient to cover 2009 debt maturities, exposing the company's dependence on refinancing in the face of interest coverage metrics well below 1 and negative pledge clauses of its bonds being an obstacle to accessing secured bank funding. Moody's also notes that as a result of not generating sufficient free cash flow to service and repay its debt, M-real has been heavily reliant on asset disposals. In various instances in the past M-real sold individual assets at a book loss or took impairment charges/write downs prior to the disposal. Moody's believes that one of the few remaining assets of sizable value is its stake in Metsa-Botnia and highlights the risk that future asset sales could be sold below current book value. Moody's will therefore closely monitor both: (i) the measures the company can take to address the debt maturities in 2009; as well as (ii) the impact of any potential industry consolidation and capacity adjustments on M-real's longer-term financial profile. These rated entities were affected: Outlook Actions: * Issuer: M-real -- Outlook, Changed To Negative From Stable * Issuer: Metsa Group Financial Services Oy -- Outlook, Changed To Negative From Stable M-real, headquartered in Espoo, Finland, is among Europe's largest integrated paper and forest products companies with sales of EUR5.6 billion and an operating loss of EUR271 million in 2006. As a result of its ongoing strategic review, M-real has announced the disposal of its distribution business as well as the closure and disposal of a number of individual paper mills/machines. Core activities include consumer packaging, publishing papers, commercial printing papers and office papers. As of September 30, its more than 12,000 employees. M-Real has 25 production units in nine European countries and a worldwide sales network covering over 70 countries. =========== F R A N C E =========== REXEL SA: Moody's May Cut Ba1 Rating After Review ------------------------------------------------- Moody's Investors Service placed the corporate family rating of Rexel S.A. on review for possible downgrade following its announcement that it proposes to make a EUR3 billion cash offer to acquire all of the outstanding ordinary shares of Hagemeyer, including any shares issued under the outstanding convertible bonds and existing employee share plans. Moody's does not rate any of Rexel's debt instruments. If the transaction proceeds credit metrics will initially weaken from current levels, and together with execution and integration risks, downward ratings pressure could develop. Moody's notes that Rexel has secured financing for the proposed offer and the transaction will be fully debt funded. Moody's Ba1 rating allowed for Rexel's annual bolt-on acquisition program; however, it did not factor debt funded acquisitions of Hagemeyer's scale. The Ba1 rating was also based on an expectation of further de-leveraging and a trend to a more conservative financial profile, and again, the rating did not cater for the capital structure changes that are likely to result if the Hagemeyer acquisition is completed. Nevertheless, Rexel has previously stated that it would consider opportunistic debt funded acquisitions that were value accretive within a three year horizon and this criteria is consistent with its plans for Hagemeyer. Whilst leverage is expected to increase, Rexel has entered into a separate binding agreement with Sonepar for the sale to Sonepar, following successful completion of the proposed offer, of the American, Asian-Pacific and selected European activities of Hagemeyer. The price for the transfer of assets between Rexel and Sonepar would be calculated on the same basis as the price that would be paid to acquire the shares of Hagemeyer. Sale proceeds will be directed to debt reduction and this will be a step to restoring credit metrics. The size of the transaction will result in a transformational change for Rexel. The action would see Rexel acquiring and retaining essentially all of Hagemeyer's Professional Products & Services activities in the Baltic countries, Belgium, the Czech Republic, Finland, Germany, Ireland, the Netherlands, Norway, Poland, Russia, Slovakia, Spain, and the United Kingdom, as well as Hagemeyer's ACE activities. Whilst significant execution and integration risks will be introduced and this weighs on the rating, Rexel has a demonstrated history of successfully integrating both large and small acquisitions, with its successful purchase of the GE Supply distribution business in the U.S. last year being the key example. The acquisition will also increase Rexel's scale and market position and Moody's acknowledge the strategic attraction. Larger scale should lead to greater purchasing power and potential margin improvement. Rexel also has a strong existing presence in the geographies where certain new divisions will be acquired, particularly Western Europe, and this should allow synergistic cost savings to be quickly realized, although increasing concentration in Europe. The acquisition will also give Rexel a unique opportunity to gain significant market share and reach number one or two position in other countries where it has little or no presence, such as the Baltic states, Finland, Norway and Spain. It will also allow Rexel to move its position in the UK as a successful but sub-scale challenger to a market leader with operating margin upside potential. Rexel's underlying positive operating trend and its strong market positions also help to off-set the anticipated weakening in its financial profile. Conclusion of the review will be based on Moody's analysis of changes to Rexel's business and financial risk profile. This will include considering the revised capital structure, impacts to the liquidity position, covenant headroom, debt maturity profile, costs of the acquisition and cost savings, speed of integration and timeframes and expectations for forecast credit metrics. Moody's will also need to understand if permanent changes to financial policies, including whether the company will continue to target an investment grade profile after the acquisition, or changes to broader strategies will be made and what this will mean for the company. Alternatively, the rating will be taken off review if the transaction does not proceed. Based in France, Rexel S.A. is the world's largest distributor of low and ultra low voltage electrical parts and components. For the twelve months ended Dec. 31, 2006, Rexel reported total sales and EBITDA of EUR9,299 million and EUR637 million, respectively. XEROX CORP: Moody's Reviews Ba1 Rating and May Upgrade ------------------------------------------------------ Moody's Investors Service placed the ratings of Xerox Corporation and supported subsidiaries under review for possible upgrade. Overall, Moody's believes that the combination of consistent business execution, secured debt reduction, and positive operating trends warrant the consideration of a rating upgrade. Ratings under review for possible upgrade include: Xerox Corporation: -- Senior unsecured at Baa3; -- Subordinated at Ba1. Xerox Credit Corporation: -- Senior unsecured at Baa3 (support agreement from Xerox Corporation) The rating review will focus on the prospects for: (1) continued steady business execution, that includes equipment installation growth that provides the basis for ongoing post sale revenue streams; (2) overall modest revenue growth; (3) consistent operating profitability in the 8-9% range; (4) ongoing strong annual cash flow from operations in excess of US$1.5 billion; and (5) the maintenance of solid liquidity and continued discipline with respect to share repurchase activity which should be contained within free cash flow generation. Since Moody's changed the ratings outlook to positive in November 2006, Xerox has continued to demonstrate good installation growth throughout its product offering and, with a good product lineup, we believe that Xerox is well positioned to maintain or grow its installed base over the intermediate term. Consistent and well managed operating expenses have contributed to operating margins remaining in the 8% to 9% range. Importantly, the company has consistently reduced the level of secured debt in its capital structure and accelerated that process recently such that secured debt is less than US$500 million, down from over US$2 billion at December 2006. Liquidity remains solid, with cash balances of US$848 million at September 2007 plus access to a US$2 billion unsecured revolving credit facility, for which covenant room is expected to remain ample. Combined with our expectations of stable to improving annual free cash flow (US$1.7 billion for the latest twelve months ended June 2007), Xerox is well positioned to meet aggregate public debt maturities of about US$626 million through 2008, as well as potential calls on liquidity related to outstanding shareholder litigation. Xerox Corporation, headquartered in Norwalk, Connecticut, develops, manufactures and markets document processing systems and related supplies and provides consulting and outsourcing document management services. Xerox operates in over 160 countries worldwide and distributes products in the Western Hemisphere through divisions, wholly owned subsidiaries and third-party distributors. The company maintains operations in France, Japan, Italy, Nicaragua, among others. ============= G E R M A N Y ============= AHRENS GMBH: Creditors' Meeting Slated for Nov. 1 ------------------------------------------------- The court-appointed insolvency manager for Ahrens GmbH & Co.KG, Dirk Oelbermann, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:10 a.m. on Nov. 1. The meeting of creditors and other interested parties will be held at: The District Court of Syke Hall 112 Hauptstr. 5A 28857 Syke Germany The Court will also verify the claims set out in the insolvency manager's report at 11:00 a.m. on Jan. 10, 2008, at the same venue. Creditors have until Dec. 20 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dirk Oelbermann Ostertorsteinweg 74/75 28203 Bremen Germany Tel: (0421)792 57-0 Fax: (0421)792 57-57 The District Court of Syke opened bankruptcy proceedings against Ahrens GmbH & Co.KG on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Ahrens GmbH & Co.KG Loge 14 27259 Varrel Germany BAU-HERR ZWEITE: Creditors' Meeting Slated for Nov. 20 ------------------------------------------------------ The court-appointed insolvency manager for Bau-Herr Zweite Verwaltungs GmbH & Co. Britzer Damm KG, Udo Feser, will present his first report on the company's insolvency proceedings at a creditors' meeting at 10:05 a.m. on Nov. 20. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 9:50 a.m. on Feb. 12 at the same venue. Creditors have until Dec. 20 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Udo Feser Uhlandstr. 165/166 10719 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Bau-Herr Zweite Verwaltungs GmbH & Co. Britzer Damm KG on Oct. 5. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bau-Herr Zweite Verwaltungs GmbH & Co. Britzer Damm KG Wiesenweg 10 12247 Berlin Germany INTERNET HYPOTHEKEN: Claims Registration Period Ends Nov. 21 ------------------------------------------------------------ Creditors of IHD Internet Hypotheken Discount GmbH have until Nov. 21 to register their claims with court-appointed insolvency manager Dr. Joern-H. Meyn. The insolvency manager can be reached at: Dr. Joern-H. Meyn Herrengraben 31 20459 Hamburg Germany Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on Dec. 21, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of 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 District Court of Hamburg opened bankruptcy proceedings against IHD Internet Hypotheken Discount GmbH on Oct. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: IHD Internet Hypotheken Discount GmbH Attn: Gerhard Jaite, Manager Wandsbeker Chaussee 180b 22089 Hamburg Germany KATA GMBH: Claims Registration Period Ends Nov. 27 -------------------------------------------------- Creditors of KaTa GmbH Rohrleitungsbau, Stahl- u. Metallbau have until Nov. 27 to register their claims with court-appointed insolvency manager Marc Schmidt-Thieme. The insolvency manager can be reached at: Marc Schmidt-Thieme Stephanienstr. 8 76133 Karlsruhe Germany Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Jan. 8, 2008, 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 Baden-Baden Hall 009a Ground Floor Gutenbergstr. 17 76532 Baden-Baden 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 District Court of Baden-Baden opened bankruptcy proceedings against KaTa GmbH Rohrleitungsbau, Stahl- u. Metallbau on Oct. 11. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: KaTa GmbH Rohrleitungsbau, Stahl- u. Metallbau Attn: Jitka Zelenka, Manager Mercedesstr.1 76437 Rastatt Germany MAKE LADIES: Claims Registration Period Ends November 6 ------------------------------------------------------- Creditors of MAKE Ladies Fashion GmbH have until Nov. 6 to register their claims with court-appointed insolvency manager Matthias Hofmann. The insolvency manager can be reached at: Matthias Hofmann Richard-Wagner-Strasse 64 95444 Bayreuth Germany Tel: 0921/76400-0 Fax: 0921/76400-11 Creditors and other interested parties are encouraged to attend the meeting at 8:30 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 Bayreuth Friedrichstr. 18 Meeting Hall 520 - EG 95444 Bayreuth Germany Tel: 0921/504-404 Fax: 0921/504-419 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 District Court of Bayreuth opened bankruptcy proceedings against MAKE Ladies Fashion GmbH on Oct. 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MAKE Ladies Fashion GmbH Roehrig 42 95463 Bindlach Germany Attn: Marcus Poellmann and Rudolf Poellmann, Managers Birkig 8 95497 Goldkronach Germany MEIN EIGENHEIM: Claims Registration Period Ends November 6 ---------------------------------------------------------- Creditors of Mein Eigenheim Gesellschaft fuer schluesselfertiges Bauen mbH have until Nov. 6 to register their claims with court-appointed insolvency manager Markus Froehlich. The insolvency manager can be reached at: Markus Froehlich Ehlersstr. 11 88046 Friedrichshafen Germany Tel: (07541) 7008-70 Fax: (07541) 7008-78 Creditors and other interested parties are encouraged to attend the meeting at 8:30 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 Kempten Meeting Hall 157/I Residenzplatz 4-6 87435 Kempten 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 District Court of Kempten opened bankruptcy proceedings against Mein Eigenheim Gesellschaft fuer schluesselfertiges Bauen mbH on Oct. 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Mein Eigenheim Gesellschaft fuer schluesselfertiges Bauen mbH Selmnau 28 88142 Wasserburg Germany NETCENTERIT GMBH: Claims Registration Period Ends November 2 ------------------------------------------------------------ Creditors of NetcenterIT GmbH & Co. KG have until Nov. 2 to register their claims with court-appointed insolvency manager Heiko Fialski. The insolvency manager can be reached at: Heiko Fialski Raboisen 38 20095 Hamburg Germany Tel: (040) 3344 6-0 Fax: (040) 3344 6111 Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Dec. 17, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Walsrode Hall 130 Lange Strasse 29-33 29664 Walsrode 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 District Court of Walsrode opened bankruptcy proceedings against NetcenterIT GmbH & Co. KGon Oct. 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: NetcenterIT GmbH & Co. KG Vorm Lintel 5 27356 Rotenburg/Wuemme Germany PK PLANUNGSGESELLSCHAFT: Creditors' Meeting Slated for Dec. 7 ------------------------------------------------------------- The court-appointed insolvency manager for PK Planungsgesellschaft mbH & Co. KG, Hartwig Albers, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 9:55 a.m. on Dec. 7. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 9:30 a.m. on March 14, 2008, at the same venue. Creditors have until Jan. 16, 2008, to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Hartwig Albers Luetzowstr. 100 10785 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against PK Planungsgesellschaft mbH & Co. KG on Oct. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: PK Planungsgesellschaft mbH & Co. KG Ruschestrasse 68 10365 Berlin Germany PROARTIS GMBH: Claims Registration Period Ends Nov. 21 ------------------------------------------------------ Creditors of Proartis GmbH Ermittlungen & Consulting have until Nov. 21 to register their claims with court-appointed insolvency manager Johannes Franke. The insolvency manager can be reached at: Johannes Franke Verdener Platz 1 30419 Hannover Germany Tel: 0511/794573 Fax: 0511/794576 Creditors and other interested parties are encouraged to attend the meeting at 11:00 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 Gifhorn Hall 118 Am Schlossgarten 4 38518 Gifhorn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The District Court of Gifhorn opened bankruptcy proceedings against Proartis GmbH Ermittlungen & Consulting on Oct. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Proartis GmbH Ermittlungen & Consulting Adolf-Kolping-Str. 9 31319 Sehnde Germany ROCHEL GESELLSCHAFT: Claims Registration Period Ends Nov. 19 ------------------------------------------------------------ Creditors of Rochel Gesellschaft fuer Gasheizungs- und Sanitararbeiten GmbH have until Nov. 19 to register their claims with court-appointed insolvency manager Wilfried Koller. The insolvency manager can be reached at: Wilfried Koller Schiffgraben 59 30175 Hannover Germany Tel: 0511 342129 Fax: 0511 3480645 Creditors and other interested parties are encouraged to attend the meeting at 10:30 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 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 District Court of Hannover opened bankruptcy proceedings against Rochel Gesellschaft fuer Gasheizungs- und Sanitararbeiten GmbH on Oct. 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Rochel Gesellschaft fuer Gasheizungs- und Sanitararbeiten GmbH Attn: Andre Rochel, Manager Neuer Landweg 51 30827 Garbsen Germany TICKETOOL GMBH: Creditors' Meeting Slated for Nov. 2 ---------------------------------------------------- The court-appointed insolvency manager for Ticketool GmbH, Juergen Wallner, will present his first report on the company's insolvency proceedings at a creditors' meeting at 8:40 a.m. on Nov. 2. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 9:10 a.m. on Jan. 4, 2008, at the same venue. Creditors have until Dec. 21 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Juergen Wallner Budapester Str. 31 10787 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Ticketool GmbH on Sept. 21. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Ticketool GmbH Alt- Moabit 72 10555 Berlin Germany TISCHLEREI RIMA.S: Creditors' Meeting Slated for Nov. 2 ------------------------------------------------------- The court-appointed insolvency manager for Tischlerei RIMA.S GmbH, Ruediger Wienberg, will present his first report on the Company's insolvency proceedings at a creditors' meeting at 8:45 a.m. on Nov. 2. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 9:25 a.m. on Feb. 22, 2008, at the same venue. Creditors have until Dec. 19 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Ruediger Wienberg Giesebrechtstr. 1 10629 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Tischlerei RIMA.S GmbH on Sept. 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Tischlerei RIMA.S GmbH Feldrain 18 a 12623 Berlin Germany TRANSPORT & LOGISTIK: Claims Registration Period Ends Nov. 5 ------------------------------------------------------------ Creditors of Transport & Logistik Center Schermbeck GmbH have until Nov. 5 to register their claims with court-appointed insolvency manager Lothar Venn. The insolvency manager can be reached at: Lothar Venn Bruener Strasse 4-6 46499 Hamminkeln Germany Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Dec. 5, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Duisburg Meeting 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 District Court of Duisburg opened bankruptcy proceedings against Transport & Logistik Center Schermbeck GmbH on Oct. 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Transport & Logistik Center Schermbeck GmbH Drierweg 65 46514 Schermbeck Germany Attn: Simon Schneider, Manager Vossenbergweg 7 46514 Schermbeck Germany WWW.INDUSTRIEREGAL.DE GMBH: Claims Registration Ends November 9 --------------------------------------------------------------- Creditors of www.industrieregal.de GmbH have until Nov. 9 to register their claims with court-appointed insolvency manager Dr. Christian Gerloff. The insolvency manager can be reached at: Dr. Christian Gerloff Nymphenburger Str. 139 80636 Munich Germany Tel: 089/120260 Fax: 089/12026127 Creditors and other interested parties are encouraged to attend the meeting at 11:00 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 Weilheim Meeting Hall E 007 Waisenhausstr. 5 Weilheim 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 District Court of Weilheim opened bankruptcy proceedings against www.industrieregal.de GmbH on Oct. 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: www.industrieregal.de GmbH Kurpark 5 82467 Garmisch-Partenkirchen Germany ============= I R E L A N D ============= CELESTICA INC: Earns US$51.5 Mil. in 3rd Quarter Ended Sept. 30 --------------------------------------------------------------- Celestica Inc. disclosed its financial results for the third quarter ended Sept. 30, 2007. Net earnings on a GAAP basis for the third quarter were US$51.5 million, compared to GAAP net loss of US$42.1 million for the same period last year. Included in the third quarter 2007 earnings are restructuring charges of US$2.7 million compared to restructuring charges of US$82.4 million in the third quarter last year. Revenue was US$2.081 billion, down 13% from US$2.392 billion in the third quarter of 2006. Adjusted net earnings for the quarter were US$29.3 million compared to adjusted net earnings of US$40.5 million for the same period last year. The term adjusted net earnings is defined as net earnings before amortization of intangible assets, gains or losses on the repurchase of shares and debt, integration costs related to acquisitions, option expense, option exchange costs and other charges, net of tax and significant deferred tax write-offs or recovery. For the nine months ended Sept. 30, 2007, revenue was US$5.8 billion compared to US$6.5 billion for the same period in 2006. Net loss on a GAAP basis was US$2.0 million compared to net loss of US$89.8 million last year. Adjusted net earnings for the first nine months of 2007 were US$25.1 million compared to adjusted net earnings of US$87.0 million for the same period in 2006. "Our third quarter results reflect the significant progress we are making with respect to the turnaround plans we put in place at the beginning of this year," said Craig Muhlhauser, president and chief executive officer of Celestica. "On a sequential basis, revenue grew 7%, operating margins almost doubled, inventory turns improved to 8.3x and we generated more than US$200 million in free cash flow. We are encouraged by our progress to date and believe that significant opportunity remains throughout the business. Although we continue to manage through nearer-term volatility as we complete our turnaround plans, our entire team remains confident in our ability to drive further improvements as we strive to build a solid foundation for Celestica's future growth and profitability." At Sept. 30, 2007, the company's consolidated balance sheet showed US$4.51 billion in total assets, US$2.39 billion in total liabilities, and US$2.12 billion in total shareholders' equity. About Celestica Inc. Celestica Inc. (NYSE:CLS) -- http://www.celestica.com/-- provides innovative electronics manufacturing services. its global manufacturing and supply chain network, the company delivers competitive advantage to companies in the computing, communications, consumer, industrial, and aerospace and defense end markets. Celestica operates a highly sophisticated global manufacturing network with operations in Brazil, China, Ireland, Italy, Japan, Malaysia, Philippines, Puerto Rico, and the United Kingdom, among others. * * * As reported in the Troubled Company Reporter on May 4, 2007, Moody's Investors Service downgraded Celestica Inc.'s corporate family rating to B1 from Ba3 and the senior subordinated note ratings to B3 from B2. Simultaneously, Moody's lowered the company's speculative grade liquidity rating to SGL-2 from SGL-1. WR GRACE: Earns US$16.7 Million in Quarter Ended September 30 ------------------------------------------------------------- W. R. Grace & Co. disclosed financial results for the third quarter ended Sept. 30, 2007. Net income for the third quarter was US$16.7 million, compared with net income of US$18.4 million in the prior year quarter. The 2007 and 2006 third quarters were negatively affected by Chapter 11 expenses, litigation and other matters not related to core operations. Excluding such costs, and after tax effects, net income would have been US$46.3 million for the third quarter of 2007 compared with US$40.3 million calculated on the same basis for the third quarter of 2006, a 14.9% increase. Sales for the third quarter were US$783.1 million compared with US$741.4 million in the prior year quarter, a 5.6% increase (2.4% before the effects of currency translation). The increase was attributable primarily to higher selling prices in response to rising raw material costs and to higher volumes in most product groups, particularly outside the United States. Sales increased 1.7% for the Grace Davison operating segment and 10.1% for the Grace Performance Chemicals operating segment. Geographically, sales were up 15.2% in Europe, 8.4% in Asia Pacific and 34.8% in Latin America, and down 7.9% in North America, where sales were adversely affected by a lower level of residential construction in the United States and lower sales of hydroprocessing catalysts. Pre-tax income from core operations was US$74.0 million in the third quarter compared with US$71.1 million in the prior year quarter, a 4.1% increase. Pre-tax operating income of the Grace Davison operating segment was US$47.6 million, up 4.4% compared with the third quarter of 2006, attributable principally to sales increases across most product groups and productivity gains. Pre-tax operating income of the Grace Performance Chemicals operating segment was US$54.1 million, up 4.2% compared with the third quarter of 2006, attributable primarily to higher sales of construction products (in regions other than North America) and packaging products worldwide. Corporate operating costs were US$1.3 million higher than the third quarter of 2006 due primarily to higher performance-based compensation. Sales for the nine months ended Sept. 30, 2007 were US$2.3 billion compared with US$2.1 billion for the prior year period, an 8.6% increase (5.3% before the effects of currency translation). Net income for the nine months ended Sept. 30, 2007, was US$42.0 million, compared with net income in the comparable period of 2006 of US$13.3 million. Excluding non-core and Chapter 11-related costs (and after tax effects), net income would have been US$122.8 million for the nine months ended Sept. 30, 2007 compared with US$96.3 million calculated on the same basis for 2006, a 27.5% increase. Pre-tax income from core operations was US$227.7 million for the nine months ended Sept. 30, 2007, a 20.1% increase over 2006, primarily attributable to higher sales volume in regions other than North America, higher selling prices to offset cost inflation, and from lower overall pension costs. "Our business performance is on track to deliver strong financial results for 2007," Grace's President and Chief Executive Officer Fred Festa, said. "The quarter-over-quarter comparison was adversely affected by refill order patterns of hydroprocessing catalysts, which were very strong last year, and the decline in U.S. housing starts, which continues to cause lower sales of construction products in North America. However, we have enjoyed good growth in several key product groups, and in Europe, Asia and Latin America where economic activity has been strong." Cash Flow and Liquidity Grace's net cash inflow from operating activities for the nine months ended Sept. 30, 2007, was US$65.7 million, compared with a net cash inflow of US$49.4 million for 2006. The increase in cash flow from operating activities was principally attributable to higher pre-tax operating income offset by dividends to joint venture partners and cash paid to resolve certain tax contingencies. Pre-tax income from core operations before depreciation and amortization was US$311.2 million for the nine months ended Sept. 30, 2007, 13.0% higher than in the prior year, a result of the performance from core operations. Net cash used for investing activities was US$100.5 million for the nine months ended Sept. 30, 2007, primarily related to routine capital improvements, capacity expansion at certain production sites, one acquisition and an investment in a short-term U.S. Government debt security. At Sept. 30, 2007, Grace had available liquidity in the form of cash and cash equivalents of US$535.0 million, marketable securities of US$28.5 million, net cash value of life insurance of US$93.5 million, available credit under its debtor-in-possession facility of US$173.7 million and available credit under various non-U.S. credit facilities equivalent to US$89.3 million. Grace believes that these sources and amounts of liquidity are sufficient to support its business operations, strategic initiatives and Chapter 11 proceedings for the foreseeable future. As of Sept. 30, the company's total assets reached US$3.79 billion while total liabilities were US$4.2 billion, resulting in a shareholders' deficit of US$405.8 million. About W.R. Grace Headquartered in Columbia, Maryland, W.R. Grace & Co. (NYSE:GRA) -- http://www.grace.com/-- supplies catalysts and silica products, especially construction chemicals and building materials, and container products globally including Argentina, Australia, and Ireland. The Company and its debtor-affiliates filed for chapter 11 protection on April 2, 2001 (Bankr. D. Del. Case No. 01-01139). David M. Bernick, Esq., at Kirkland & Ellis, LLP, and Laura Davis Jones, Esq., at Pachulski Stang Ziehl & Jones, LLP, represent the Debtors in their restructuring efforts. The Debtors hired Blackstone Group, L.P., for financial advice. PricewaterhouseCoopers LLP is the Debtors' accountant. Stroock & Stroock & Lavan, LLP, and Duane Morris, LLP, represent the Official Committee of Unsecured Creditors. The Creditors Committee tapped Capstone Corporate Recovery LLC for financial advice. David T. Austern, the legal representative of future asbestos personal injury claimants, is represented by Orrick Herrington & Sutcliffe LLP and Phillips Goldman & Spence, PA. Elihu Inselbuch, Esq., at Caplin & Drysdale, Chartered, and Marla R. Eskin, Esq., at Campbell & Levine, LLC, represent the Official Committee of Asbestos Personal Injury Claimants. The Asbestos Committee of Property Damage Claimants tapped Martin W. Dies, III, Esq., at Dies & Hile L.L.P., and C. Alan Runyan, Esq., at Speights & Runyan,to represent it. Lexecon, LLC, provided asbestos claims consulting services to the Official Committee of Equity Security Holders. The Debtors' filed their Chapter 11 Plan and Disclosure Statement on Nov. 13, 2004. On Jan. 13, 2005, they filed an Amended Plan and Disclosure Statement. The hearing to consider the adequacy of the Debtors' Disclosure Statement began on Jan. 21, 2005. The Debtors' exclusive period to file a chapter 11 plan expired on July 23, 2007. Estimation of W.R. Grace's asbestos personal injury liabilities will commence on Jan. 14, 2008. =================== K A Z A K H S T A N =================== BRIEF CENTRAL ASIA: Creditors Must File Claims by Dec. 5 -------------------------------------------------------- LLP Agency Of Social And Marketing Research - Brief Central Asia has declared insolvency. Creditors have until Dec. 5 to submit written proofs of claim to: LLP Agency of Social and Marketing Research Brief Central Asia Sixth Floor Jybek Joly ave. 76 Almaty Kazakhstan Tel: 8 (7272) 50-12-91 BUSINESS ANALITIKA: Creditors Must File Claims by Dec. 5 -------------------------------------------------------- LLP Brief Business Analitika has declared insolvency. Creditors have until Dec. 5 to submit written proofs of claim to: LLP Brief Business Analitika Sixth Floor Jybek Joly ave. 76 Almaty Kazakhstan INCOM TECH: Claims Filing Period Ends Dec. 1 -------------------------------------------- LLP Incom Tech Service has declared insolvency. Creditors have until Dec. 1 to submit written proofs of claim to: LLP Incom Tech Service Buhar Jyrau ave. 66 Bostandyksky District 050057 Almaty Kazakhstan MM-HOLDING LLP: Creditors' Claims Due by Dec. 1 ----------------------------------------------- LLP Mm-Holding has declared insolvency. Creditors have until Dec. 1 to submit written proofs of claim to: LLP Mm-Holding Micro District Samal-1, 4 Almaty Kazakhstan OTAN LLP: Claims Registration Period Ends Dec. 5 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Almaty declared LLP Otan insolvent on Sept. 6. Creditors have until Dec. 5 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Makatayev Str. 196-36 Almaty Kazakhstan Tel: 8 (7272) 79-86-66 8 (7272) 79-86-76 8 701 125 56-55 ROYAL TRADE RIDDER: Creditors Must File Claims by Dec. 1 -------------------------------------------------------- Branch of LLP Royal Trade in Ridder has declared insolvency. Creditors have until Dec. 1 to submit written proofs of claim to: Branch of LLP Royal Trade in Ridder Dzerjinskogo Str. 10/2 Ridder East Kazakhstan Kazakhstan ROYAL TRADE SEMIPALATINSK: Claims Filing Period Ends Dec. 1 ----------------------------------------------------------- Branch of LLP Royal Trade in Semipalatinsk has declared insolvency. Creditors have until Dec. 1 to submit written proofs of claim to: Branch of LLP Royal Trade in Semipalatinsk Aimautov Str. 50 Semipalatinsk East Kazakhstan Kazakhstan TENTEK LLP: Creditors' Claims Due by Dec. 5 ------------------------------------------- The Specialized Inter-Regional Economic Court of Almaty declared LLP Tentek insolvent on Sept. 12. Creditors have until Dec. 5 to submit written proofs of claim to: The Specialized Inter-Regional Economic Court of Almaty Micro District Taugul-2, 23-29 Almaty Kazakhstan Tel: 8 (7272) 55-27-91 TRANS BUSINESS: Claims Registration Period Ends Dec. 1 ------------------------------------------------------ LLP Trans Business Most has declared insolvency. Creditors have until Dec. 1 to submit written proofs of claim to: LLP Trans Business Most Pichugin Str. 250-77 Karaganda Kazakhstan =================== K Y R G Y Z S T A N =================== NOMAD COMPANY: Creditors Must File Claims by November 28 -------------------------------------------------------- LLC Nomad Company has declared insolvency. Creditors have until Nov. 28 to submit written proofs of claim to: LLC Nomad Company Micro District Alamedin-1, 52-17 Bishkek Kyrgyzstan =================== L U X E M B O U R G =================== ARES FINANCE 2: S&P Affirms Class E Notes' Rating at BB ------------------------------------------------------- Standard & Poor's Ratings Services has placed on CreditWatch with positive implications its rating on the class D notes issued by Ares Finance 2 S.A. The ratings on the class C and E notes were affirmed. The CreditWatch placement follows an initial review of the most recent transaction information received by Standard & Poor's. This analysis showed that the likelihood of a positive rating action has increased on the basis of the ongoing resolution of the underlying portfolio. The CreditWatch placement is expected to be resolved within three months. Cumulative net collections for the transaction remain below the servicer's and Standard & Poor's base case, at EUR586 million. Although slower than expected, collections have been slightly ahead of expectations in terms of profitability. Profitability is improving over time. Data released in the latest quarterly advisory report shows an available funds balance of EUR4.6 million for distribution to the noteholders. As of Oct. 31, 2007, cash awaiting distribution from the courts was approximately EUR27.8 million. A further EUR2.8 million in cash is expected from the accepted negotiated resolution. The residual unresolved gross book value stands at EUR660 million, split across 2,388 loans and 1,817 borrowers. The notes are ultimately backed by a pool of secured and unsecured NPLs originated in Italy by Banca Nazionale del Lavoro SpA (AA-/Positive/A-1+). The servicer is Societa Gestione Crediti SpA, and the portfolio advisor is Archon Group Italia S.r.l. (ranked by Standard & Poor's as "above average" as a commercial and residential special servicer in Italy). Ratings List Class Rating To From * ARES FINANCE 2 S.A. EUR684.9 Million Asset-Backed Floating-Rate Notes Rating Placed On CreditWatch With Positive Implications D A-/Watch Pos A- Ratings Affirmed C AAA E BB ARES FINANCE SRL: S&P Affirms Class F Notes' Rating at BB --------------------------------------------------------- Standard & Poor's Ratings Services has raised its credit rating on the class C notes issued by Ares Finance S.r.l. At the same time, the ratings on the class D and E notes were placed on CreditWatch with positive implications. The rating on the class F notes was affirmed. "The raising of the rating on the class C notes reflects the deleveraging of the transactions, the amount of cash awaiting distribution from courts, and the prospects of further recoveries on the residual portfolio," said credit analyst Giorgio Frascella. The CreditWatch placement of the class D and E notes follows an initial review of the most recent transaction information received by Standard & Poor's. This analysis showed that the likelihood of a positive rating action has increased on the basis of the ongoing resolution of the underlying portfolio. The CreditWatch placements are expected to be resolved within three months. Cumulative net collections for the transaction remain below the servicer's and Standard & Poor's base case, at EUR549 million. Although slower than expected, collections have been well ahead of expectations in terms of profitability. The notes are ultimately backed by a pool of secured and unsecured NPLs originated in Italy by Banca Nazionale del Lavoro SpA (AA-/Positive/A-1+). The servicer is Societa Gestione Crediti S.p.A., and the portfolio advisor is Archon Group Italia S.r.l. (ranked by Standard & Poor's as "ABOVE AVERAGE" as a commercial and residential special servicer in Italy). The underlying portfolio continues to advance through the legal stages of the resolution process. With the gradual resolution of the underlying portfolio, net collections continue to come through steadily. Average net collections in the past 12 months have been around EUR50 million, only 4% lower than what was recorded in the one-year period ending in September 2006. Performance data on collections and profitability shows the servicer's increasing reliance on court resolution. This is consistent with the fact that the portfolio is now in a more advanced state of the workout process. As of Sept. 25, 2007, cash awaiting distribution from the courts was approximately EUR55.6 million. A further EUR0.7 million in cash is expected from the accepted negotiated resolution. In the servicer's experience, distribution from the courts takes on average one year for foreclosures, and 18 months for bankruptcy proceedings. The residual unresolved gross book value stands at EUR911 million, split across 4,311 loans and 2,073 borrowers. Ratings List Class Rating To From ARES FINANCE S.r.l. EUR633.2 Million Asset-Backed Floating-Rate Notes Rating Raised C AAA A Ratings Placed On CreditWatch With Positive Implications D BBB+/Watch Pos BBB+ E BBB-/Watch Pos BBB- Rating Affirmed F BB ===================== N E T H E R L A N D S ===================== ESSENCE II: Fitch Rates EUR9.8 Million Class C Notes at BB ---------------------------------------------------------- Fitch Ratings has assigned Essence II B.V. (Essence II) floating rate notes final ratings: -- EUR1.38 billion Class A: 'A-'; Stable Outlook -- EUR9.8 million Class B: 'BBB'; Stable Outlook -- EUR9.8 million Class C: 'BB'; Stable Outlook Essence II is the issuer of a securitization transaction of Dutch residential mortgage loans originated by wholly-owned subsidiaries of NIBC Bank (rated 'A'/'F1'/Negative Outlook). The ratings are based on the quality of the collateral, available credit enhancement and excess spread, the underwriting and servicing capabilities, as well as the sound legal and financial structure. In its collateral analysis, Fitch has also accounted for the pre-funding and replenishment conditions featured in the transaction to capture the dynamic credit nature of the underlying pool. At closing, the pool comprises 11,549 loan-parts granted to 6,172 borrowers and is well seasoned at 31.4 months. Interest-only loans are the dominant product type, comprising more than 68% of the mortgage pool; loans have been primarily granted towards single-family housing (91%). Stater Nederland B.V. and QUION Groep B.V. are the sub-servicers of the securitization portfolio. Initial credit enhancement, provided by subordination, is 1.4% for the Class A notes and 0.7% for the Class B notes. The transaction also benefits from 0.3% margin under the interest rate swap agreement with NIBC Bank N.V. The reserve fund account is not funded at closing; however, it can build up to 0.5% of the portfolio outstanding balance using available excess spread. Finally, the structure benefits from a liquidity facility equating to 3% of the notes' outstanding balance. On Aug. 15, 2007, NIBC Bank's acquisition by Kaupthing (rated 'A'/'F1'/Stable Outlook), an Icelandic bank, was announced. Should the transaction go ahead, NIBC Bank's ratings will be reviewed in line with Fitch's prevailing policy on institutionally driven support. =========== R U S S I A =========== AMURINVEST-1 CJSC: Creditors Must File Claims by Nov. 20 -------------------------------------------------------- Creditors of CJSC AmurInvest-1 have until Nov. 20 to submit proofs of claim to: Yu. P. Babinets P.O. Box 233 Blagoveschensk 675000 Amur Russia The Arbitration Court of Amur commenced bankruptcy supervision procedure on CJSC AmurInvest-1 on Oct. 8, 2007. The case is docketed under Case No. ?04-7084/07-8/48 ?. The Debtor can be reached at: CJSC AmurInvest-1 Komarova Str. 45 Svobodny Amur Russia CARDBOARD & PAPER: Creditors Must File Claims by Dec. 20 -------------------------------------------------------- Creditors of Cardboard & Paper Factory LLC have until Dec. 20 to submit proofs of claim to: V. V. Grigin Competitive proceedings manager Office 203 Electrozavodskaya Str. 7 600009 Vladimir Russia The Arbitration Court of St. Petersburg and the Leningrad region declared the company insolvent on Sept. 4, 2007. The case is docketed in Case No. A56-57048/2005. The Court is located at: The Arbitration Court of St. Petersburg and the Leningrad Hall 113 Suvorovskiy Pr. 50/52 St. Petersburg Russia The Debtor can be reached at: Cardboard & Paper Factory LLC Zavodskaya Str. 17 Svetogorsk Vyborgskij Raion Leningrad Russia DESNITSA CJSC: Creditors Must File Claims by Nov. 20 ---------------------------------------------------- Creditors of CJSC Desnitsa have until Nov. 20 to submit proofs of claim to: V. P. Goncharov P.O. Box 345 115230 Moscow 230 Russia The Arbitration Court of Moscow will convene on Jan. 15, 2008, to hear the company's bankruptcy supervision procedure. The case is docketed under Case No. ?40-30967/07-71-80?. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: CJSC Desnitsa Povarskaya Str. 52 Moscow Russia KOMBA CJSC: Creditors Must File Claims by Dec. 20 ------------------------------------------------- Creditors of CJSC Komba have until Dec. 20 to submit proofs of claim to: L. L. Serdyuk P.O. Box 690105 Vladivostok-105 Russia The Arbitration Court of Moscow commenced competitive proceedings on the company on Sept. 19. The case is docketed under Case No. ?51-1730/2007 15-8?. The Court is located at: The Arbitration Court of Moscow Novaya Basmannaya Str. 10 Moscow Russia The Debtor can be reached at: CJSC Komba General Dorohov Str. 12 Moscow Russia KOZHVINSKIJ RK: Asset Sale Slated for November 26 ------------------------------------------------- O. N., the competitive proceedings manager of Crushed Stone Plant Kozhvinskij SUE, will open a public auction for the company's properties at 11:00 a.m. on Nov. 26 at: Pechora Crisis Center 110-2nd floor Pechorskij Pr. Str. Pechora Komi Russia The company has set a RUR2.5 million starting price for the auctioned assets. Interested participants have until Nov. 24 to deposit RUR150,000. Bidding documents must be submitted in a sealed form. Information related to the auction can be obtained by calling this number, Tel: 8(82142)33111. KYZYLSKAYA SUE: Asset Sale Slated for November 20 ------------------------------------------------- The competitive proceedings manager of Poultry Plant Kyzylskaya SUE will open a public auction for the company's properties at 2:00 p.m. on Nov. 20 at: Poultry Plant Kaa-Hemskaya LLC Kirova Str. 1 Kaa-Hem Settlement Kyzylskij Kozhuun 667901 Tyva Russia The company has set a RUR38,836,000 starting price for the auctioned assets. Interested participants have until Nov. 19 to submit their bidding documents and to deposit an amount equivalent to 10% of the starting price. Information related to the auction can be obtained by calling, Tel: (39422) 5-41-05, 5-13-18. MOESK OJSC: Moody's Assigns Ba2 Corporate Family Rating ------------------------------------------------------- Moody's Investors Service assigned a Ba2 corporate family rating with a positive outlook to OJSC Moesk, the largest