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, November 9, 2007, Vol. 8, No. 223 Headlines A U S T R I A AMADE GOURMET: Salzburg Court Orders Business Shutdown AZD FIX: Claims Registration Period Ends Nov. 28 BARBULOVIC KEG: Claims Registration Period Ends Nov. 28 F & B TEXTILHANDEL: Claims Registration Period Ends Nov. 28 KURZEWSKI BAU: Vienna Court Orders Business Shutdown MAGNUM BRANDSCHADENSANIERUNGS: Claims Registration Ends Nov. 19 MARKO COLAK: Claims Registration Period Ends Nov. 28 PALMA LLC: Claims Registration Period Ends Nov. 19 B E L G I U M FERRO CORP: Initiates Next Step in European Restructuring TELENET COMMUNICATIONS: S&P Withdraws B+ Ratings Upon Request F R A N C E ALCATEL-LUCENT: Moody's Cuts Corporate Family Rating to Ba3 CHARLES JOURDAN: Gets More Time to Secure Buyer, Report Says DELPHI CORP: Wants to Use US$4.4B DIP Financing Until Sept. 2008 LAZARD LTD: Sept. 30 Balance Sheet Upside-Down by US$74.5 Mln PRIDE INT'L: Earns US$401.5 Million for Quarter Ended Sept. 30 G E R M A N Y AONE ENTERTAINMENT: Claims Registration Period Ends Dec. 7 CHRYSLER LLC: Lenders Selling US$4 Billion Loans at a Discount COOLSERVE GMBH: Claims Registration Period Ends Nov. 13 DR SCHMIDT: Claims Registration Period Ends Nov. 28 HEIZUNG SANITAR: Claims Registration Period Ends Nov. 27 HEXION SPECIALTY: Closes German Resins Business Acquisition IKB DEUTSCHE: Delays Second Quarter Results to Nov. 30 JOBS.DE KARRIEREMARKT: Claims Registration Period Ends Nov. 30 KABEL DEUTSCHLAND: Fitch Affirms IDR at BB-; Outlook Stable SACHSENRING AUTOMOBILTECHNIK: E&Y Partner Faces Raps Over Audit UVE GRUNDSTUECKSBETEILIGUNGS: Claims Registration Ends Nov. 29 H U N G A R Y FLEXTRONICS INTERNATIONAL: Solectron Alters Repurchase Offer I R E L A N D PSION SYNTHETIC: Fitch Rates US$16 Million Class E Notes at BB I T A L Y GOODYEAR TIRE: Earns US$668 Million in Third Quarter 2007 GOODYEAR TIRE: Commences Offer to Exchange 4% Conv. Senior Notes K A Z A K H S T A N A GROUP CREDIT: Creditors' Claims Due on Dec. 11 ETALON-TENZO LLP: Claims Registration Ends Dec. 11 KASPY SNAB: Claims Registration Ends Dec. 11 NOTEX LLP: Creditors' Claims Due on Dec. 11 PROMSERVICE-TL LLP: Claims Filing Period Ends Dec. 7 RAUAN LLP: Creditors Must File Claims Dec. 7 ROYAL TRADE: Proof of Claim Deadline Slated for Dec. 11 SARY-ARKA LLP: Creditors Must File Claims Dec. 7 SDK LLP: Claims Filing Period Ends Dec. 7 SHYGYS-ASTYK LLP: Proof of Claim Deadline Slated for Dec. 7 K Y R G Y Z S T A N BISHKEK TRANS-SYSTEMS: Creditors Must File Claims by December 7 SHEFALI-TRADING LLC: Proof of Claim Deadline Slated for Dec. 7 N E T H E R L A N D S DUTCH MBS XII: Fitch Rates Class E Notes at BB; Outlook Positive DUTCH MBS XIV: Fitch Rates Class E Notes at BB; Outlook Stable KONINKLIJKE AHOLD: Reacquires Own Shares for EUR87.34 Million KONINKLIJKE AHOLD: Settlement Fund to Investors Set for Release REVLON INC: Sept. 30 Balance Sheet Upside-Down by US$1.15 Bln SENSATA TECH: Incurs US$86.7 Mln Net Loss in Third Quarter 2007 P O L A N D ELEKTRIM SA: Warsaw Stock Exchange Okays Delisting of Shares SCO GROUP: Seeks Court OK to Expand Mesirow's Scope of Services SCO GROUP: Taps CFO Solutions to Shortlist CFO Candidates SCO GROUP: Wants to Employ Tanner LC as Accountants P O R T U G A L LEAR CORP: Earns US$41 Million in Third Quarter Ended Sept. 29 R O M A N I A PROCREDIT BANK: Fitch Rates Individual Ratings at D on Risks R U S S I A DZERZHINSKIJ AGRICULTURAL: Asset Sale Slated for Nov. 27 FEDERAL GRID: S&P Places BB+ Ratings on Watch Positive LITS OJSC: Creditors Must File Claims by Nov. 27 MASLYANKAAGRISTROY OJSC: Asset Sale Slated for Nov. 20 MEZHALESPROM CJSC: Creditors Must File Claim by Dec. 27 MURMINSKAYA OJSC: Competitive Proceedings Ongoing NOVOSIL'SKIJ OJSC: Asset Sale Slated for Nov. 28 PECHORA CONSTRUCTION: Creditors Must File Claims by Nov. 27 RAO UES: Shareholders Approve Final Restructuring Phase RAO UES: S&P Puts BB Ratings on Watch on Restructuring Plan RENOVA HOLDING: Moody's Assigns Ba3 Corporate Family Rating SAYAN ALKO: Competitive Proceedings Ongoing S P A I N BANKINTER 3: S&P Junks EUR17.4 Million Class C Notes S W I T Z E R L A N D FRIMOKAR MONTAGE: St. Gallen Court Closes Bankruptcy Proceedings MANDARIN LLC: Schwyz Court Starts Bankruptcy Proceedings MOVINFO JSC: Creditors' Liquidation Claims Due by November 30 NOVELIS INC: Realm Communications Completes Rebranding NOVELIS INC: Intends to Invest US$7 Million for Brazilian Plant OCCASIONSBOERSE.CH LLC: Liquidation Claims Due by December 10 ROCHEM HOLDING: Creditors' Liquidation Claims Due by November 30 SCHREINEREI-ZIMMEREI: Valais Court Closes Bankruptcy Proceedings YANAIR LLC: Solothurn Court Closes Bankruptcy Proceedings U K R A I N E CONSIM LLC: Creditors Must File Claims by November 11 DINAMO LLC: Creditors Must File Claims by November 11 FTT LLC: Creditors Must File Claims by November 15 LEO LLC: Creditors Must File Claims by November 15 MAXIMUM-T LLC: Creditors Must File Claims by November 15 PROMMARKET-100: Creditors Must File Claims by November 15 SOUTH ELECTROMACHINERY: Creditors Must File Claims by Nov. 15 U N I T E D K I N G D O M BRITANNIA BULK: S&P Affirms B- Ratings; Outlook Revised BOURTON MILL: Joint Liquidators Take Over Operations CONSTRUCTION MGT: Court to Hear Wind Up Petition on Feb. 20 CRESTMERE DEVELOPMENTS: Wind-Up Petition Hearing Set for Feb. 20 DOVESTONE CONSTRUCTION: Wind-Up Petition Hearing Set for Feb. 20 ICONIX BRAND: Third Quarter Net Income Climbs to US$17 Million KENDLE INTERNATIONAL: Earns US$3.8 Mln for Third Quarter 2007 KENDLE INTERNATIONAL: Moody's Holds B1 Corporate Family Rating LADBROKES PLC: Selling Vernons to Sportech for GBP51 Million NASDAQ STOCK: To Buy Philadelphia Stock Exchange for US$625 Mln NORMAN FRASER: Taps Liquidators from BDO Stoy Hayward POPE & TALBOT: S&P Withdraws Default Corp. Credit Rating PRESENCE-PR LTD: Names Christopher James Farrington Liquidator SCOTTISH RE: Posts US$109.5 Mln Loss for Q3 Ended Sept. 30 TEREX CORP: S&P Affirms BB Corporate Credit Rating WATERWORLD LTD: Calls In Liquidators from Kingston Smith ********* ============= A U S T R I A ============= AMADE GOURMET: Salzburg Court Orders Business Shutdown ------------------------------------------------------ The Land Court of Salzburg entered Oct. 11 an order shutting down the business of LLC amade gourmet (FN 62494d). Court-appointed estate administrator Michael Pallauf 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. Michael Pallauf Petersbrunnstrasse 13 5020 Salzburg Austria Tel: 0662/841202 Fax: 0662/841202-50 E-mail: officesalzburg@aaa-law.at Headquartered in Siezenheim, Austria, the Debtor declared bankruptcy on Sept. 18 (Bankr. Case No 23 S 70/07z). AZD FIX: Claims Registration Period Ends Nov. 28 ------------------------------------------------ Creditors owed money by LLC AZD Fix & Klar Reinigung (FN 265982a) have until Nov. 28 to file written proofs of claim to court-appointed estate administrator Gerhard Bauer at: Mag. Gerhard Bauer Mahlerstrasse 7 1010 Vienna Austria Tel: 512 97 06 E-mail: ra-g.bauer@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:50 a.m. on Dec. 12 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 Oct. 9 (Bankr. Case No. 2 S 138/07t). BARBULOVIC KEG: Claims Registration Period Ends Nov. 28 ------------------------------------------------------- Creditors owed money by KEG BARBULOVIC (FN 143203v) have until Nov. 28 to file written proofs of claim to court-appointed estate administrator Michael Lesigang at: Dr. Michael Lesigang Landstrasser Hauptstrasse 14-16/8 1030 Vienna Austria Tel: 715 25 26 E-mail: michael@lesigang.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Dec. 12 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 Oct. 8 (Bankr. Case No. 2 S 137/07w). F & B TEXTILHANDEL: Claims Registration Period Ends Nov. 28 ----------------------------------------------------------- Creditors owed money by LLC F & B Textilhandel (FN 170158h) have until Nov. 28 to file written proofs of claim to court-appointed estate administrator Christiane Pirker at: Dr. Christiane Pirker Hasenhutgasse 9 Haus 3 1120 Vienna Austria Tel: 817 57 57 Fax: 817 57 55 17 E-mail: Dr.Christiane.Pirker@chello.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Dec. 12 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1606 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 9 (Bankr. Case No. 4 S 116/07x). KURZEWSKI BAU: Vienna Court Orders Business Shutdown ---------------------------------------------------- The Trade Court of Vienna entered Oct. 1 an order shutting down the business of LLC Kurzewski Bau (FN 173432y). Court-appointed estate administrator Richard Proksch 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. Richard Proksch c/o Mag. Birgit Linder Heumarkt 9/I/11 1030 Vienna Austria Tel: 713 46 51 Fax: 713 84 35 E-mail: proksch@eurojuris.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 25 (Bankr. Case No 3 S 120/07b). Birgit Linder represents Dr. Proksch in the bankruptcy proceedings. MAGNUM BRANDSCHADENSANIERUNGS: Claims Registration Ends Nov. 19 --------------------------------------------------------------- Creditors owed money by LLC Magnum Brandschadensanierungs (FN 277326h) have until Nov. 19 to file written proofs of claim to court-appointed estate administrator Annemarie Kosesnik-Wehrle at: Dr. Annemarie Kosesnik-Wehrle c/o Dr. Stefan Langer Oelzeltgasse 4/6 1030 Vienna Tel: 713 61 92 Fax: 713 61 92-22 E-mail: kanzlei@kosesnik-langer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on Dec. 3 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 1 (Bankr. Case No. 3 S 125/07p). Stefan Langer represents Dr. Kosesnik-Wehrle in the bankruptcy proceeedings. MARKO COLAK: Claims Registration Period Ends Nov. 28 ---------------------------------------------------- Creditors owed money by LLC Marko Colak Trade (FN 285832t) have until Nov. 28 to file written proofs of claim to court-appointed estate administrator Matthias Schmidt at: Dr. Matthias Schmidt c/o Dr. Florian Gehmacher Dr. Karl Lueger-Ring 12 1010 Vienna Austria Tel: 533 16 95 Fax: 535 56 86 E-mail: schmidt@preslmayer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:10 a.m. on Dec. 12 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 Oct. 9 (Bankr. Case No. 2 S 139/07i). Florian Gehmacher represents Dr. Schmidt in the bankruptcy proceedings. PALMA LLC: Claims Registration Period Ends Nov. 19 -------------------------------------------------- Creditors owed money by LLC PALMA (FN 179173s) have until Nov. 19 to file written proofs of claim to court-appointed estate administrator Christian Steurer at: Mag. Christian Steurer c/o Mag. Stefan Aberer Rathausstrasse 37 6900 Bregenz Austria Tel: 05574/58085 Fax: 05574/58085-8 E-mail: office@ra-steurer.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Nov. 29 for the examination of claims. The meeting of creditors will be held at: The Land Court of Feldkirch Conference Hall 45 First Floor Feldkirch Austria Headquartered in Bregenz, Austria, the Debtor declared bankruptcy on Oct. 3 (Bankr. Case No. 13 S 49/07x). Stefan Aberer represents Mag. Steurer in the bankruptcy proceedings. ============= B E L G I U M ============= FERRO CORP: Initiates Next Step in European Restructuring --------------------------------------------------------- Ferro Corporation has initiated the next step in the restructuring of its European manufacturing operations. As a result of the new initiative, the company will discontinue manufacturing porcelain enamel frit at its facility in Rotterdam, The Netherlands, by the summer of 2008 and will consolidate production at other European sites. Employment at the Rotterdam location will be reduced by 84 positions. Ferro will work closely with customers to ensure a high level of customer support through the transition. The company expects to record a pre-tax charge in the third quarter ended Sept. 30, 2007, of approximately US$5.9 million for severance benefits related to the action, pursuant to an agreement reached with workers' representatives, and asset impairment and other costs. The charge is expected to reduce diluted earnings per share in the 2007 third quarter by approximately 10 cents. Previously, Ferro had estimated third quarter earnings would be 17 to 22 cents per share. Ferro expects to record future severance costs, accelerated depreciation and other costs related to this manufacturing consolidation of approximately US$17 million through the third quarter of 2008, in addition to the charges announced today. The consolidation of frit manufacturing is part of Ferro's ongoing effort to reduce annual costs in its European manufacturing operations by US$40 million to US$50 million by the end of 2009. About Ferro Corporation Headquartered in Cleveland, Ohio, Ferro Corporation (NYSE: FOE) -- http://www.ferro.com/-- is a global producer of an array of specialty chemicals including coatings, enamels, pigments, plastic compounds, and specialty chemicals for use in industries ranging from construction, pharmaceuticals and telecommunications. Ferro operates through the following five primary business segments: Performance Coatings, Electronic Materials, Color and Performance Glass Materials, Polymer Additives, and Specialty Plastics. Revenues were US$2 billion for the FYE ended Dec. 31, 2006. Ferro Corp. has global locations in Argentina, Australia, Belgium, Brazil, China, among others. * * * Ferro Corp. carries Moody's Investors Service's B1 corporate family rating assigned on May 2007. Moody's also assigned a B1 rating to the company's US$200 million senior secured notes (issued as unsecured notes in 2001) due in January 2009 and an SGL-3 speculative grade liquidity rating. TELENET COMMUNICATIONS: S&P Withdraws B+ Ratings at Request ----------------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'B+' long-term corporate credit rating on Belgium-based cable TV operator Telenet Communications N.V. and related entity Telenet Group Holdings N.V. at the company's request. The group, 53.03% owned by ultimate parent Liberty Global Inc. (B/Positive/--), announced the early redemption of the outstanding notes (executed on Oct. 10, 2007) thanks to the new senior credit facility of EUR2.3 billion provided by the group's pool of banks. In addition, the proceeds were used to refinance the group's senior credit facility and should also be used to fund a EUR656 million distribution to shareholders by way of a capital reduction on or about Nov. 19, 2007. =========== F R A N C E =========== ALCATEL-LUCENT: Moody's Cuts Corporate Family Rating to Ba3 ----------------------------------------------------------- Moody's Investors Service downgraded to Ba3 from Ba2 the Corporate Family Rating of Alcatel-Lucent. The ratings for senior debt of the group were equally lowered to Ba3 from Ba2 and the trust preferred notes of Lucent Technologies Capital Trust I have been downgraded to B2 from B1. At the same time, Moody's affirmed its Not-Prime rating for short term debt of Alcatel-Lucent. The outlook for the ratings is stable. "The rating downgrade reflects the fact that the company's profitability and cash generation has fallen behind Moody's expectations from the time of the merger of Alcatel and Lucent," Wolfgang Draack, Senior Vice President and lead analyst for Alcatel-Lucent, summarized. While Alcatel-Lucent has realized a large part of the scheduled cost savings in 2007, it retained only part of it, so that Alcatel-Lucent's interest coverage was below 0.5-times for the last 12 months to September 2007 and it has consumed around EUR1.3 billion cash, including outflows for restructuring and dividend distributions in the same period. Were this trend to continue, then the company would increasingly absorb its financial flexibility." In its credit opinion of March 29, 2007, Moody's had summarized its criteria for a possible rating downgrade. These included a slow-to-no growth revenue scenario, price pressure to push the EBITA margin below 3%, and a weak cash flow below 30% for the retained cash flow to net debt. With a revenue decline of 7% for the last 12 months compared to 2006 pro-forma data, an EBITA-margin of less than 1% and RCF/net debt estimated below 10% for the same period, these conditions are currently met and will take time to reverse. The stable outlook for the ratings incorporates the expectation that: (i) price pressure in the market will somewhat abate and management will focus more on improving gross profit, that (ii) management's restructuring plan will generate and retain substantially more cost savings going forward, that (iii) a trend towards the targeted double-digit operating margins becomes visible in the company's results, and that (iv) a seasonally cash-generative fourth quarter 2007, before restructuring, will reduce cash consumption for this year, with profitability improvements proving sufficient to fund future cash cost of restructuring. The Ba3 CFR reflects: (i) Alcatel-Lucent's strong customer relationships and the large installed base supporting its market shares (ii) its broad product offering which positions the company well for the convergence of various communication technologies, (iii) the potential for realizing and retaining synergy savings now targeted at above �2 billion by management, and (iv) a comfortable liquidity position with a relatively moderately levered capital structure. These credit positives, however, are balanced by: (i) the pressure on revenues stemming from generally subdued investment behaviour of the telecom carriers in the developed markets as well as from Alcatel-Lucent's exposure to the slowdown in spending in North America and the developing position of its 3rd generation wireless products, by (ii) the intense price pressure in equipment caused by market share strategies of major competitors, which absorbs much of the company's synergy benefits but may abate near term, and by (iii) challenges to contain cash consumption, given material working capital needs, substantial dividend payouts and more than EUR800 million cash cost for restructuring yet to come. Moody's last rating action for Alcatel-Lucent introduced on 29 March the Loss Given Default Methodology and raised the ratings for subordinated debt and preferred stock to B1. Issuer: Alcatel-Lucent * Downgrades: -- Corporate Family Rating, Downgraded to Ba3 from Ba2 -- Senior Unsecured Conv./Exch. Bond/Debenture, Downgraded to Ba3 from Ba2 -- Senior Unsecured Medium-Term Note Program, Downgraded to Ba3 from Ba2 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Ba3 from Ba2 Issuer: Lucent Technologies Capital Trust I * Downgrades: -- Preferred Stock Preferred Stock, Downgraded to B2 from B1 Issuer: Lucent Technologies, Inc. * Downgrades: -- Senior Unsecured Conv./Exch. Bond/Debenture, Downgraded to Ba3 from Ba2 -- Senior Unsecured Regular Bond/Debenture, Downgraded to Ba3 from Ba2 Headquartered in Paris, France, Alcatel-Lucent is one of the world leaders in providing advanced solutions for telecommunications systems and equipment to service providers, enterprises and governments with sales of EUR12.6 billion for the first nine months of 2007. CHARLES JOURDAN: Gets More Time to Secure Buyer, Report Says ------------------------------------------------------------ The Commercial Court of Romans-sur-Isere in Drome, France, has extended for two weeks the deadline within which Charles Jourdan SAS must find a buyer for its assets, Le Figaro said on Nov. 1 quoting Swiss owner Yannis Bilquez and workers representative Gilles Apoix. In a report carried by Bloomberg News, Le Figaro says Mr. Bilquez plans to sell the brand separately from the manufacturer, which could raise between EUR10 million and EUR20 million. Mr. Apoix, however, believed that Charles Jourdan needed the brand name to attract buyers. Asian and American buyers had reportedly expressed interest for the assets. Headquartered in Romans Sur Isere, France, Charles Jourdan -- http://www.charles-jourdan.fr/-- manufactures luxury footwear. As previously reported in the TCR-Europe on Oct. 2, 2007, the court placed Charles Jourdan in compulsory administration on Sept. 12, 2007, after it filed for redressment judiciaire, the French equivalent of Chapter 11 bankruptcy protection, for the second time. The company first filed for bankruptcy on Aug. 22, 2005. Avendis and Finaluxe bought the company on Nov. 2, 2005. DELPHI CORP: Wants to Use US$4.4B DIP Financing Until Sept. 2008 ---------------------------------------------------------------- Delphi Corp. and its debtor-affiliates are seeking the approval of the U.S. Bankruptcy Court for the Southern District of New York to extend its US$4.5 billion bankruptcy loan for five months to June 28, 2008, with an option to further extend to Sept. 30, 2008, to give it more time to exit Chapter 11 protection after changing the terms of its reorganization plan. As reported in the Troubled Company Reporter on Jan. 9, 2007, the Debtors obtained U.S. Bankruptcy Judge Robert D. Drain's approval to enter into a postpetition financing facility with JPMorgan Chase Bank, N.A., the administrative agent for certain lenders. The DIP Facility, among other things, refinanced both the US$2 billion first amended DIP credit facility arranged by J.P. Morgan Securities Inc., Citigroup Global Markets, Inc., and Deutsche Bank Securities Inc. in Nov. 21, 2005, and the approximate US$2.5 billion outstanding on the US$2,825,000,000 credit facility obtained by the Debtors before the Petition Date. The DIP facility consists of: Tranche Commitment ------- ---------- A US$1.75 billion first priority revolving credit facility B US$250.00 million first priority term loan C US$2.50 billion second priority term loan The DIP Facility, on its current terms, matures on the date of the earlier of (i) Dec. 31, 2007 or (ii) the date of the substantial consummation of a reorganization plan that is confirmed pursuant to an order of the Court. John Wm. Butler, Jr., Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, in Chicago, Illinois, tells the Court that the maturity date of the existing credit facility must be extended in light of the Debtors' timetable of emerging from bankruptcy by the end of the first quarter of 2008. Delphi had earlier planned to emerge from Chapter 11 by the end of 2007. The Debtors and the DIP Lenders have negotiated and entered into an amendment to DIP Credit Agreement. The key modifications achieved as a result of the amendments are: Current DIP Amended And Restated Credit Agreement DIP Credit Agreement ---------------- -------------------- Maturity Date Earlier of Earlier of (i) Dec. 31, 2007 and (i) June 30, 2008, with (ii) substantial option to further consummation of plan extend to Sept. 30, 2008 if Delphi pays an amount equal to 25 basis points of the Tranche A commitment, the Tranche B loan, and the Tranche C loan and (ii) substantial consummation of plan Add'l Interest Tranche A Prior to July 1, 2008 on JP Morgan's Borrowings: 1.50% Tranche A Alternate Tranche B Borrowings: 1.75% Rate Borrowings: 1.25% Tranche B Tranche C Borrowings: 1.75% Borrowings: 1.75% Tranche C Borrowings: 2.25% From & after July 1, 2008 Tranche A Borrowings: 2.00% Tranche B Borrowings: 2.00% Tranche C Borrowings: 2.50% Add'l Interest Tranche A Prior to July 1, 2008 on LIBOR Borrowings: 2.50% Tranche A Tranche B Borrowings: 2.75% Borrowings: 2.25% Tranche B Tranche C Borrowings: 2.75% Borrowings: 2.75% Tranche C Borrowings: 3.25% From & after July 1, 2008 Tranche A Borrowings: 3.00% Tranche B Borrowings: 3.00% Tranche C Borrowings: 3.50% Global EBITDAR For each rolling 12 For each rolling 12 Covenants fiscal month period fiscal month period ending on the last ending on the last day day of the months of the months Dec. 31, March 31, 2007 2007 through Aug. 31, through Nov. 30, 2007 2008 with a global with a global EBITDAR EBITDAR ranging from ranging from US$475 million to US$130 million to US$500 million US$375 million PBGC -- None-- DIP Lenders consent to Replacement consummation of Liens transactions authorized under DASHI Intercompany Transfer Order The proposed Amended and Restated DIP Credit Agreement contains fee provisions, including, among other things, certain commitment fees and letter of credit fees. Other fee provisions are contained in a separate fee letter, which the parties have agreed would be kept confidential. The fee letter will be provided, upon request, to counsel to the Statutory Committees and the U.S. Trustee and will be made available to the Court for review. The Debtors also propose that they be authorized, but not directed, to perform, and take all actions necessary to make, execute, and deliver the Amendment together with all other documentation executed in connection therewith and to pay the related fees. A copy of the form of Amendment to the DIP Facility is available for free at http://bankrupt.com/misc/Delphi_Amended_DIP_Facility DIP Lenders Consent to Intercompany Transfer As previously reported, the Debtors obtained the Court's approval (i) for Delphi Automotive Systems (Holding), Inc., to effectuate the transfer funds accumulated from certain of its global affiliates to Delphi Automotive Systems LLC; and (ii) use the proceeds of the transfer, subject to the requisite consent of the DIP Lenders. In connection with the intercompany transfer, the Debtors proposed to grant the U.S. Pension Benefit Guaranty Corp., on account of unpaid contributions to certain Delphi pension plans, adequate protection of its asserted interests in the form of replacement liens in the amount of US$255 million, upon certain DASHI assets already encumbered by the Current DIP Facility. As memorialized in the Amended and Restated DIP Credit Agreement, the DIP Lenders have consented to the Intercompany Transaction, including the use of proceeds and the granting of the replacement liens to the PBGC. In addition, -- In the event the Debtors accumulate any further funds from their global affiliates, the Debtors also negotiated a provision that should obviate the need for further consent by the DIP Lenders. Specifically, they agreed that the replacement liens, and any additional liens, granted to the PBGC will be permitted but subject to and subordinate to the liens granted to the Agent for the benefit of the DIP Lenders and the liens granted to any "Setoff Claimant" set forth in the DIP Order. -- In connection with their consent to the PBGC Liens, the DIP Lenders required clarification that the PBGC will be treated like all other subordinated secured creditors under the DIP Order. The Debtors also ask the Court to waive the 10-day stay period under Rule 6004(g) of the Federal Rules of Bankruptcy Procedure for the use, sale, or lease of property. By waiving the 10-day period, the Debtors will be able to consummate the Intercompany Transaction, thereby allowing them to immediately take advantage of the US$650 million intercompany transfer. By using these funds, the Debtors will be able, among other things, to reduce their interest expense on the Current DIP Facility. Mr. Butler asserts that approval of the Amendment will allow the Debtors to consummate the Intercompany Transaction, which, among other things, will provide a definitive source of liquidity on favorable terms to the Debtors and enable the Debtors to maximize efficiencies. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil, and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and US$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. (Delphi Bankruptcy News, Issue No. 94; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). LAZARD LTD: Sept. 30 Balance Sheet Upside-Down by US$74.5 Mln ------------------------------------------------------------- Lazard Ltd reported last week financial results for the third quarter and nine months ended Sept. 30, 2007. The company's consolidated balance sheet at Sept. 30, 2007, showed US$3.51 billion in total assets, US$3.54 billion in total liabilities, and US$49.0 million minority interest, resulting in a US$74.5 million total shareholders' deficit. Net income increased 206% to US$40.3 million for the 2007 third quarter, compared to US$13.2 million for the 2006 third quarter. For the third quarter of 2007, income before minority interest in net income increased to US$90.3 million, compared to US$39.0 million for the third quarter of 2006. Operating income increased 141% to US$118.6 million for the third quarter of 2007, compared to US$49.2 million for the third quarter of 2006. Net revenue was US$542 million for the three month period ended Sept. 30, 2007, up US$244 million, or 82%, versus net revenue of US$298 million in the corresponding period in 2006. During the 2007 period, fees from investment banking and other advisory activities were US$370 million, an increase of US$187 million, or 102%, versus fees of US$183 million in the corresponding period in 2006. Money management fees for the three month period ended Sept. 30, 2007, were US$164 million, an increase of US$48 million, or 42%, versus US$116 million in the corresponding period in 2006. Net income increased 70% to US$95.9 million for the first nine months of 2007, compared to US$56.4 million for the first nine months of 2006. Income before minority interest in net income increased to US$220.4 million for the first nine months of 2007 from US$167.2 million for the first nine months of 2006. Operating income increased 35% to US$286.0 million for the first nine months of 2007, compared to US$212.0 million for the same period in 2006. Net revenue increased to US$1.33 billion for the first nine months of 2007 compared to US$1.02 billion for the first nine months of 2006. During the 2007 period, fees from investment banking and other advisory activities were US$813 million, an increase of US$157 million, or 24%, versus fees of US$656 million in the corresponding period in 2006. Money management fees were US$449 million, an increase of US$102 million, or 29%, versus US$347 million in the corresponding period in 2006. "Our Financial Advisory and Asset Management businesses each achieved record outcomes," said Bruce Wasserstein, chairman and chief executive officer of Lazard Ltd. "The results underscore our differentiated strategy and simple business model. We are an intellectual capital business focused on providing premium advice and asset management. Our diversity by geography, industry and client base contributes to our success, as does the breadth of our advisory practice. For example, we advised the UAW in its negotiations with the automakers regarding retiree health care obligations. As we pointed out last quarter, we have limited exposure to the volatile credit market environment. We are not in the sub-prime business, are not a public hedge fund nor do we have any SIVs. We don't have a significant principal trading book or hanging bridge loans. We believe our exposure to a softening of leveraged buyouts is limited." Full-text copies of the company's consolidated financial statements for the quarter ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?250b About Lazard Ltd. Lazard Ltd. (NYSE:LAZ) -- http://www.lazard.com/-- is a financial advisory and asset management firm. The company operates from 35 cities across 17 countries in North America, Europe, Asia, Australia and South America. With origins dating back to 1848, the firm provides advice on mergers and acquisitions, restructuring and capital raising, as well as asset management services to corporations, partnerships, institutions, governments, and individuals. The company has locations in Australia, Brazil, China, France, Germany, India, Japan, Korea and Singapore. PRIDE INT'L: Earns US$401.5 Million for Quarter Ended Sept. 30 -------------------------------------------------------------- Pride International Inc. reported financial results for the three months ended Sept. 30, 2007. Net income for the quarter totaled US$401.5 million, reflecting the impact of certain asset dispositions. During the quarter, the company sold its Latin America Land and E&P Services segments for US$1.0 billion in cash and entered into an agreement to sell its three tender-assist rigs for total proceeds of US$213 million in cash. The disposition of the Latin America Land and E&P Services segments, which was included in the Company's third quarter results, resulted in an after-tax gain of US$265.0 million, or US$1.48 per diluted share. The sale of the three tender-assist rigs is expected to close in early 2008, subject to the novation of drilling contracts by the customers for each unit and other closing conditions. The company reported the results of operations and the associated gain on sale of both the Latin America Land and E&P Services segments and the results of operations for the quarter from three tender-assist units as income from discontinued operations for the third quarter of 2007 and all comparative periods. Income from discontinued operations totaled US$281.2 million for the quarter. Louis A. Raspino, President and Chief Executive Officer of Pride International, Inc., stated, "The third quarter of 2007 was one of the most significant quarters in the history of Pride as we advance the transformation of the company to an offshore-focused contract driller with an emphasis on deepwater and other high specification rigs. Toward this goal, numerous accomplishments were achieved during the period, including: -- The execution of an agreement to sell our Latin America Land and E&P Services business segments for US$1 billion in cash and the closing of that transaction only three weeks later on Aug. 31, 2007, -- A commitment to the construction of an ultra-deepwater drillship, -- The acquisition of an ultra-deepwater drillship in the early stages of construction, -- An agreement to sell three tender-assist rigs for US$213 million in cash, and -- The acquisition of the remaining nine percent interest in our Angolan joint venture for US$45 million in cash, giving us 100 percent ownership in three rigs, including two deepwater drillships." "Our earnings from operations from semisubmersibles and drillships (floaters) approached 60 percent in the third quarter of 2007 compared to 34 percent one year ago and is expected to continue to grow as new contracts commence at higher dayrates reflecting the tightness in the floating rig market. In addition, our strong cash position, coupled with improving cash flow from operations and the prospects for further cash proceeds following the disposal of additional non-strategic assets, provides us with increased flexibility as we address numerous growth opportunities and other means to enhance shareholder value." Continuing Operations Income from continuing operations, consisting primarily of the company's Offshore Drilling Services segment, was US$120.3 million on revenues of US$540.4 million for the third quarter of 2007. The results compare to income from continuing operations of US$66.0 million on revenues of US$406.0 million during the corresponding quarter in 2006. During the quarter, the company completed a technical evaluation of its entire offshore fleet. As a result of this evaluation, there was a change in estimates regarding useful lives and salvage values on certain rigs in the fleet. These changes were primarily a result of changing market conditions, the recent significant capital investment in certain rigs and revisions to and standardization of maintenance practices. As a result of these changes, the third quarter of 2007 includes a reduction in depreciation expense of US$14.5 million, or an after-tax benefit of US$0.07 per diluted share. In addition to the changes impacting depreciation expense, net income from continuing operations for the quarter also included a tax benefit of US$10.2 million due to the recognition of foreign tax credits that had been previously treated as tax deductions in prior quarters. This helped reduce its effective tax rate to 27% for the period. Realization of this additional tax benefit is based primarily on the company's forecasts of future profitability, along with the application of certain tax planning strategies. In future quarters, the company expects to continue to recognize the benefit of these foreign tax credits. Finally, in August 2007, the company acquired from its partner Sonangol the remaining nine percent interest in the joint venture related to the company's Angolan operations for US$45 million in cash, bringing the company's ownership interest to 100% and adding approximately US$1.6 million to the company's income from continuing operations. Total debt at Sept. 30, 2007, was US$1,212.4 million, while net debt (total debt less cash and cash equivalents of US$880.6 million) was US$331.8 million. About Pride International Headquartered in Houston, Texas, Pride International Inc. (NYSE: PDE) -- http://www.prideinternational.com/-- provides onshore and offshore contract drilling and related services in more than 25 countries, operating a diverse fleet of 277 rigs, including two ultra-deepwater drillships, 12 semisubmersible rigs, 28 jackups, 16 tender-assisted, barge and platform rigs, and 214 land rigs. The company maintains worldwide operations in France, Mexico, Kazakhstan, India, and Brazil, among others. * * * As reported in the Troubled Company Reporter on Sept. 4, 2007, Fitch Ratings affirmed Pride International Inc.'s Issuer Default Rating at 'BB'. The Rating Outlook is Stable. ============= G E R M A N Y ============= AONE ENTERTAINMENT: Claims Registration Period Ends Dec. 7 ---------------------------------------------------------- Creditors of AONE ENTERTAINMENT GmbH have until Dec. 7 to register their claims with court-appointed insolvency manager Karsten Toetter. Creditors and other interested parties are encouraged to attend the meeting at 10:45 a.m. on Jan. 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 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: Karsten Toetter Speersort 4/6 20095 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Aone Entertainment GmbH on Oct. 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AONE ENTERTAINMENT GmbH Attn: Thorsten Rene Naggatis, Manager Steindamm 39 20099 Hamburg Germany CHRYSLER LLC: Lenders Selling US$4 Billion Loans at a Discount -------------------------------------------------------------- Aiming to lessen US$171 billion in leveraged loan backlog, JPMorgan Chase and Co., Citigroup Inc., Goldman Sachs Group Inc., Morgan Stanley and Bear Stearns & Co. are planning to sell Chrysler LLC's US$4 billion loans at about 97.5 cents on the dollar this week, Pierre Paulden and Bryan Keogh of Bloomberg News reports citing unnamed sources. The banks, sources say, are eager to dispose the US$10 billion loans that they were not able to sell in July and August after Cerberus Capital Management acquired Chrysler from former owner DaimlerChrysler AG. Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. Chrysler is a unit of Cerberus Capital Management. * * * As reported in the Troubled Company Reporter on Oct. 31, 2007, Standard & Poor's Ratings Services said its corporate credit ratings on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC remain on CreditWatch with positive implications, following the United Auto Workers' narrow approval of the new Chrysler-UAW labor contract. The ratings were placed on CreditWatch on Sept. 26, 2007, based on S&P's belief that Chrysler would reach a deal similar to the one General Motors Corp. reached with the UAW on that date. 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 US$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 US$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 US$2 billion senior secured, second lien term loan in connection with the closing of DaimlerChrysler AG's sale of a majority interest of Chrysler Group to Cerberus Capital Management LLC. COOLSERVE GMBH: Claims Registration Period Ends Nov. 13 ------------------------------------------------------- Creditors of Coolserve GmbH have until Nov. 13 to register their claims with court-appointed insolvency manager Boris Frhr.v.d.Bussche. Creditors and other interested parties are encouraged to attend the meeting on Dec. 4, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Gifhorn Hall 118 Schlossgarten 4 38518 Gifhorn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Boris Frhr.v.d.Bussche Lueneburgerstrasse 43a 29456 Hitzacker Germany Tel: 05862/5088 Fax: 05862/5089 The District Court of Gifhorn opened bankruptcy proceedings against Coolserve GmbH on Oct. 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Coolserve GmbH Wollerstorf 3 29378 Wittingen Germany DR SCHMIDT: Claims Registration Period Ends Nov. 28 --------------------------------------------------- Creditors of Dr. Schmidt & Co. GmbH have until Nov. 28 to register their claims with court-appointed insolvency manager Dr. Petra Hilgers. Creditors and other interested parties are encouraged to attend the meeting at 11:10 a.m. on Jan. 9, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Potsdam Hall 301 Third Floor Nebenstelle Lindenstrasse 6 14467 Potsdam Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Petra Hilgers Goethestrasse 85 10623 Berlin Germany The District Court of Potsdam opened bankruptcy proceedings against Dr. Schmidt & Co. GmbH on Oct. 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Dr. Schmidt & Co. GmbH Attn: Herrn Wilhelm Schmidt, Manager Baumhaselring 40 a 14469 Potsdam Germany HEIZUNG SANITAR: Claims Registration Period Ends Nov. 27 -------------------------------------------------------- Creditors of Heizung, Sanitar Efkemann GmbH have until Nov. 27 to register their claims with court-appointed insolvency manager Dr. Ulf Martini. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Jan. 8, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Darmstadt Hall 4.307 Fourth Floor Building D Mathildenplatz 15 64283 Darmstadt 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. Ulf Martini E3, 16 68159 Mannheim Germany Tel.: 0621-40171500 Fax: 0621-401715012 The District Court of Darmstadt opened bankruptcy proceedings against Heizung, Sanitar Efkemann GmbH on Oct. 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Heizung, Sanitar Efkemann GmbH Attn: Sven Efkemann, Manager Rathausstrasse 36 64579 Gernsheim Germany HEXION SPECIALTY: Closes German Resins Business Acquisition ----------------------------------------------------------- Hexion Specialty Chemicals Inc. has completed its acquisition of the German resins and formaldehyde business of Arkema GmbH. The business is based in the Leuna industrial park in Leuna, Germany, employs 100 people and generated revenues of EUR101 million in 2006. It manufactures formaldehyde and formaldehyde- based resins including urea-formaldehyde, melamine-urea-phenol- formaldehyde and other melamine-based resin systems. These resins are used to manufacture engineered wood panels such as oriented strandboard, particleboard and medium density fiberboard. It also produces impregnation resins used to laminate decorative paper surfaces to wood products. Hexion announced an agreement in late May to acquire the Arkema business. "We are pleased to welcome this business and its associates into the Hexion organization," said Dale Plante Hexion vice president, Forest Products - Europe. "The Leuna operation and its team of people will strengthen Hexion's position in the European wood products market, particularly in the important German marketplace." Plante will serve as managing director of the business, which has been renamed Hexion Specialty Chemicals Forest Products GmbH. It will become part of Hexion's global forest product resins network, which serves producers of engineered wood products around the world. About Hexion Specialty Based in Columbus, Ohio, Hexion Specialty Chemicals Inc. -- http://www.hexion.com/-- serves the global wood and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries. Hexion Specialty Chemicals is owned by an affiliate of Apollo Management, L.P. The company has locations in China, Australia, Netherlands, and Brazil. It is an Apollo Management L.P. portfolio company. Hexion had 2006 sales of US$5.2 billion and employs more than 7,000 associates. * * * As reported in the Troubled Company Reporter on July 9, 2007, Standard & Poor's Ratings Services placed its 'B' corporate credit rating and other ratings on Hexion Specialty Chemicals Inc. on CreditWatch with negative implications. The ratings on related entities were also placed on CreditWatch. IKB DEUTSCHE: Delays Second Quarter Results to Nov. 30 ------------------------------------------------------ IKB Deutsche Industriebank AG has pushed back the release of its second quarter results by two weeks in order to accommodate balance sheet changes recommended by PricewaterhouseCoopers in its report, the Associated Press relates. The financial results, which were previously scheduled for release on Nov. 15, has been moved to Nov. 30 instead. As reported in the TCR-Europe on Oct. 18, 2007, IKB's Board of Managing Directors estimates that the forecasted net loss for the Group according to German GAAP for the current financial year will increase from EUR450 million to approximately EUR500 million. It expects to record a EUR700 million net loss for the 2007/2008 financial year (according to the International Financial Reporting Standards) as a result of the recent subprime mortgage crisis. Following the restructuring of IKB and the announced realignment of the business model, the board anticipates a net profit in the low three-digit million Euro level in the medium term. About IKB Deutsche Industriebank AG Headquartered in Dusseldorf, Germany, IKB Deutsche Industriebank AG -- http://www.ikb.de/-- pioneered the long-term industrial loan and provides medium-sized companies with long-term financing. The bank operates in several German locations, as well as branches in the United Kingdom, Luxembourg, Spain and France. IKB had previously invested in securitized loans on the US market for subprime mortgages, which are now almost worthless. This resulted in a deep-seated crisis within the bank, pushing it on the brink of bankruptcy. * * * As reported in the TCR-Europe on Oct. 4, 2007, Fitch Ratings has downgraded IKB Deutsche Industriebank AG's hybrid debt securities to Long-term 'BB-' from 'A'. They remain on Rating Watch Negative. IKB is rated Long-term Issuer Default 'A+' with Stable Outlook, Short-term IDR 'F1', Support '1' and Individual 'F'. Its subordinated debt issues are rated 'A'. IKB's hybrid capital instruments rated Long-term 'BB-' and on RWN are: -- EUR75 million IKB Funding Trust I's perpetual notes -- EUR400 million Funding Trust II's perpetual notes -- EUR100 million IKB International SA's capital contribution certificates maturing in 2009 -- EUR200 million Hybrid Raising GmbH's perpetual capital notes linked to a silent participation in IKB -- EUR200 million Capital Raising GmbH's perpetual notes linked to a silent participation in IKB -- EUR70 million IKB International SA's capital contribution certificates maturing in 2010 -- EUR150 million Propart Funding Ltd's profit participation certificates maturing in 2015. JOBS.DE KARRIEREMARKT: Claims Registration Period Ends Nov. 30 -------------------------------------------------------------- Creditors of Jobs.de Karrieremarkt GmbH have until Nov. 30 to register their claims with court-appointed insolvency manager Karl-Heinz Trebing. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 15, 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 Hanau Area E09 Engelhardstrasse 21 63450 Hanau 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: Karl-Heinz Trebing Hanauer Landstr. 287-289 60314 Frankfurt/Main Germany Tel: 069/15051530 Fax: 069/15051400 The District Court of Hanau opened bankruptcy proceedings against Jobs.de Karrieremarkt GmbH on Oct. 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Jobs.de Karrieremarkt GmbH Chemnitzer Str. 20 63452 Hanau Germany Attn: Ralf Antzenberger, Manager Zur Fechenmuehle 12 63486 Bruchkoebel Germany KABEL DEUTSCHLAND: Fitch Affirms IDR at BB-; Outlook Stable ----------------------------------------------------------- Fitch Ratings has affirmed Kabel Deutschland Vertrieb und Service GmbH & Co AG's Long-term Issuer Default Rating at 'BB-', with a Stable Outlook. The agency also affirmed the company's senior secured bank facilities at 'BB+'. At the same time, Fitch affirmed the holding company Kabel Deutschland GmbH's senior notes at 'BB-'. The affirmations follow KDG's public announcement of the financing details related to the acquisition of 1.2 million subscribers from the Orion Group and a potential further 0.4 million subscribers (total cost of EUR793 million), and Fitch's discussions with the company about the implications for leverage and free cash flow generation, assuming this transaction goes ahead. "Although the transaction implies an incremental increase in debt, the deal provides very valuable direct access to potentially an additional 1.6 million subscribers" says Richard Petit, Associate Director in Fitch's European TMT team. "KDG will immediately benefit from the combined one-off revenue and margin uplift as indirect relationships are converted to direct ones, the strengthening of its previously declining access base and the capacity to market its triple-play offering in a more effective manner than under previous wholesale agreements." "The group's leverage is expected to increase slightly within the boundaries defined by its senior secured and subordinated note covenants when the deal closes in spring 2008. Fitch regards this as commensurate with the company's current ratings. Leverage is expected to decrease gradually as the company executes its triple-play strategy," Mr Petit continues. Free cash flow generation is initially expected to be somewhat weak for the rating category, as a direct result of the necessary capital expenditure to upgrade the network - although Fitch notes that this expenditure is essentially success-driven - but to turn positive and grow strongly thereafter as the full impact of the newly acquired assets and customers' adoption of triple play services kicks in. The company is acquiring a very stable and profitable business, which in Fitch's view increases the quality and visibility of earnings. The transaction's financing will comprise a EUR650 million senior add-on facility ranking pari passu with its existing EUR1.15 billion term loan, with the balance coming from cash, drawings under the company's revolving facility and disposal of certain assets. In the quarter ended June 30, 2007, the group continued to deliver robust revenue growth of 9% to EUR289.7 million, showing that its triple-play strategy is delivering according to plan. Group EBITDA improved materially by 19% to 107.6 million, raising the EBITDA margin to 37.1% from 34%. Although cash flow from operations improved by 21.1% to EUR11.5 million, free cash flow for the period was negative EUR32.7 million, reflecting the material capital investments made to upgrade the network. SACHSENRING AUTOMOBILTECHNIK: E&Y Partner Faces Raps Over Audit --------------------------------------------------------------- An Ernst & Young LLP partner stood on trial Monday, Nov. 5, over claims he improperly approved the financial accounts of Sachsenring Automobiltechnik AG, which declared insolvency in May 2002, Karin Matussek of Bloomberg News reports citing Deutsche Presse Agentur. According to the report, Sachsenring claimed to have made profits in 1998 and 1999 based on forged invoices to Volkswagen AG and Daimler AG. The accountant, which prosecutors claimed certified the company's 1998 and 1999 balance sheet with erroneous figures, denied the allegations, Bloomberg relates. An E&Y spokesman told Bloomberg that the firm is legally barred from discussing the trial. Sachsenring Automobiltechnik AG -- http://www.sachsenring-ag.de/ -- manufactures commercial and specialized vehicles as well as system components and modules for the automotive industry. In 2001, the group posted EUR271 million in sales and employed 1,422 people. HQM Group completely took over Sachsenring in 2006. UVE GRUNDSTUECKSBETEILIGUNGS: Claims Registration Ends Nov. 29 -------------------------------------------------------------- The court-appointed insolvency manager for UVE Grundstuecksbeteiligungs GmbH & Co. Koloniestrasse KG, Joachim Heitsch will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:50 a.m. on Nov. 29. 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 11:30 a.m. on March 13, 2008 at the same venue. Creditors have until Jan. 17, 2008 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Joachim Heitsch Berliner Str. 117 10713 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against UVE Grundstuecksbeteiligungs GmbH & Co. Koloniestrasse KG on Oct. 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: UVE Grundstuecksbeteiligungs GmbH & Co. Koloniestrasse KG Ermanstr. 19 12163 Berlin Germany ============= H U N G A R Y ============= FLEXTRONICS INTERNATIONAL: Solectron Alters Repurchase Offer ------------------------------------------------------------ Flextronics International Ltd. disclosed that in connection with its acquisition of Solectron Corporation on October 1, 2007, Solectron notifies holders of its outstanding 0.50% Convertible Senior Notes due 2034 and Solectron's 0.50% Convertible Senior Notes Series B 2034, that it will repurchase at a cash prize equal to 100% of their outstanding principal amount, plus accrued and unpaid interest to, but excluding, the date of repurchase. The indentures governing the Convertible Notes require Solectron to make the offer to repurchase te Convertible Notes as a result of Flextronic's acquisition of Solectron. U.S. Bank National Association is acting as the paying agent for Solectron's offer to repurchase its Convertible Notes. In order to have their Convertible Notes repurchased, holders must validly surrender their Convertible Notes to the paying agent by 5:00 p.m., New York City time, on Nov. 30, 2007. The repurchase price for all Convertible Notes validly surrendered and not withdrawn by the Submission Deadline will become due and payable on Dec. 14, 2007, and interest on the Convertible Notes will cease to accrue on and after the date. Solectrom will deposit a cash payment equal to the aggregate repurchase price for the Convertible Notes being repurchased with the paying agent, which will transmit payment to holders. The Convertible Notes, which are convertible into a cash payment of US$402.41 per US$1,000 principal amount, a re not currently again at any time prior to their maturity on Feb. 15, 2034. holders of Convertible Notes should carefully read the Change in Control Repurchase Notice issued by Solectron, as it contains important information regarding the procedures to be followed and timing for Solectron's repurchase of the Convertible Notes. Holders of Convertible Notes may obtain copies of the Change in Control Repurchase Notice and delivery instructions for the Convertible Notes by contacting U.S. Bank National Association at (800) 934-6806. About Flextronics International Headquartered in Singapore, Flextronics International Ltd. (NasdaqGS: FLEX) -- http://www.flextronics.com/-- is an Electronics Manufacturing Services provider focused on delivering design, engineering and manufacturing services to automotive, computing, consumer digital, industrial, infrastructure, medical and mobile OEMs. Flextronics helps customers design, build, ship, and service electronics products through a network of facilities in over 30 countries on four continents including Brazil, Mexico, Hungary, Sweden, United Kingdom, among others. * * * As reported in the Troubled Company Reporter on Oct. 4, 2007, Fitch Ratings has completed its review of Flextronics International Ltd. following the company's acquisition of Solectron Corp. and resolved Flextronics' Rating Watch Negative status by affirming these ratings: Issuer Default Rating at 'BB+'; and Senior unsecured credit facility at 'BB+'. Fitch also rated Flextronics' new senior unsecured Term B loan at 'BB+'. Additionally, Fitch has downgraded the rating on Flextronics' senior subordinated notes from 'BB' to 'BB-'. The Rating Outlook is Negative. At the same time, Moody's Investors Service confirmed the ratings of Flextronics International Ltd. with a negative outlook and assigned a Ba1 rating to the company's new US$1.75 billion delayed draw unsecured term loan in response to the closing of the Solectron acquisition. The initial draw on the term loan (US$1.1 billion) will finance the cash portion of the merger consideration. ============= I R E L A N D ============= PSION SYNTHETIC: Fitch Rates US$16 Million Class E Notes at BB -------------------------------------------------------------- Fitch Ratings has affirmed Psion Synthetic CDO 1 Plc's notes, following a satisfactory performance review: -- US$20 million Class A (ISIN XS0239016503): affirmed at 'AAA' -- US$13 million Class B (ISIN XS0239017147): affirmed at 'AA' -- US$8 million Class C (ISIN XS0239017576): affirmed at 'A' -- US$10 million Class D (ISIN XS0239017733): affirmed at 'BBB' -- US$16 million Class E (ISIN XS0239017907): affirmed at 'BB' The affirmations reflect the portfolio's stable performance. The Weighted Average Fitch Factor has remained within the 'AA- /A+' rating category, although it increased slightly to 1.45 from 1.43 at the December 2006 review. There are no speculative-grade names in the portfolio and there have been no credit events to date. There were initially 62 entities but there are now 58 entities. The transaction is a partially funded synthetic securitization of municipal securities and sovereign entities. The original portfolio amount was US$1 billion and is now US$986 million. In December 2005, PSION, a limited liability company incorporated in Ireland, issued US$67 million of rated notes (classes A to E). PSION then sold DEPFA Bank plc protection on the reference portfolio via a credit default swap agreement. DEPFA, in its role as swap counterparty, has an option to call the notes in December 2008 and on every payment date thereafter provided that the liquidation proceeds of the eligible investments are sufficient to ensure that the notes are redeemed at par plus the accrued interest. ========= I T A L Y ========= GOODYEAR TIRE: Earns US$668 Million in Third Quarter 2007 --------------------------------------------------------- The Goodyear Tire & Rubber Company has reported record third quarter sales of US$5.1 billion, up 3% from last year, offsetting lower volumes with higher prices and a richer product mix. Improved pricing and product mix in all five business units drove revenue per tire up 7% over the 2006 quarter. Lower volumes reflect the strategic decision to exit certain segments of the private label tire business in North America, along with weak markets. "Our outstanding third quarter is evidence of the success we are seeing in marketing our premium product lines while remaining focused on improving our cost structure," said Robert J. Keegan, chairman and chief executive officer. "Despite market challenges, our results are among the best ever achieved by Goodyear. "Our product, brand, customer and geographic mix drove margin expansion," he said. The company achieved a gross margin of 20 percent in the quarter, up from 17.4% a year ago. "North American Tire delivered dramatic earnings improvement despite lower volumes. This reflects its new product success, strong marketing initiatives and cost savings efforts." Each of the five business units achieved double digit or better percentage growth in segment operating income for the quarter. The company's three emerging markets businesses increased sales 15% and segment operating income 24% over last year. Mr. Keegan said the company made further progress during the third quarter on its plan to achieve US$1.8 billion to US$2 billion in gross cost savings by the end of 2009. "We have now achieved nearly US$900 million in savings and remain on track to reach our four-year goal." Third quarter 2007 income from continuing operations was US$159 million (67 cents per share). This compares to a third quarter 2006 loss from continuing operations of US$76 million (43 cents per share). Segment operating income benefited from improved pricing and product mix of US$179 million in the third quarter of 2007, which more than offset increased raw material costs of US$23 million. Favorable foreign currency translation positively impacted sales by US$232 million and segment operating income by US$33 million in the quarter. The 2007 third quarter was also impacted by after-tax rationalization and accelerated depreciation costs of US$6 million (2 cents per share), tax expense related primarily to a tax law change of US$12 million (5 cents per share) and a gain on asset sales of US$10 million (4 cents per share). The third quarter of 2006 included US$132 million (75 cents per share) in after-tax rationalization and accelerated depreciation costs. Goodyear had third quarter 2007 net income of US$668 million (US$2.75 per share), which includes discontinued operations of US$509 million (US$2.08 per share). Included in discontinued operations was an after-tax gain of US$517 million (US$2.12 per share) on the sale of the company's Engineered Products business. In the third quarter of 2006, the company had a net loss of US$48 million (27 cents per share). All per share amounts are diluted. Business Segments Total segment operating income from continuing operations was US$382 million in the third quarter of 2007, an all-time high and up 35 percent from the 2006 period. Asia Pacific Tire, Latin American Tire, European Union Tire, and Eastern Europe, Middle East and Africa Tire achieved record sales. All five business units had higher segment operating income compared to last year, with Asia Pacific Tire and Eastern Europe, Middle East and Africa Tire setting records for any quarter. Segment operating income for European Union Tire and Latin American Tire set third quarter records. North American Tire third quarter sales were down 6 percent compared to the 2006 period, primarily due to lower volume resulting from the company's exit from certain segments of the private label tire business as well as weak original equipment and replacement markets. This was partially offset by market share gains in Goodyear brand tires and improved pricing and product mix. Third quarter segment operating income is the highest since the third quarter of 2001. It was up 247 percent compared to the 2006 quarter due to improved pricing and product mix of US$60 million, which more than offset increased raw material costs of US$8 million. European Union Tire third quarter sales increased 9 percent over last year as a result of improved pricing and product mix and a favorable impact from currency translation of US$108 million, which more than offset lower volume. Segment operating income for the third quarter increased 11 percent compared to 2006 as pricing and product mix improvements of US$55 million more than offset US$13 million in higher raw material costs. Also impacting results were favorable foreign currency translation of US$7 million, increased conversion costs and lower unit volume. Eastern Europe, Middle East and Africa Tire third quarter sales were up 13 percent compared to 2006. This resulted from improved pricing and product mix and a favorable impact from currency translation of US$37 million that more than offset lower unit volume. Segment operating income improved 12 percent for the third quarter due to improved pricing and product mix of US$31 million that more than offset less than US$2 million in higher raw material costs. Also impacting results were favorable foreign currency translation of US$5 million as well as higher conversion costs, partially the result of a strike in South Africa, and lower volume. Latin American Tire sales increased 20 percent from the third quarter of 2006 due to higher unit volume, improved pricing and product mix and a favorable impact from currency translation of US$40 million. Third quarter 2007 segment operating income increased 29 percent from last year due to higher unit volume and improved pricing and product mix of US$20 million, which more than offset higher raw material costs of US$5 million. Results also benefited from favorable currency translation of US$18 million. Higher conversion costs were a partial offset. Asia Pacific Tire third quarter sales were 12 percent higher than the 2006 period primarily due to improved pricing and product mix and a favorable impact from currency translation of US$40 million, which offset lower volume. Segment operating income increased 46 percent in the 2007 third quarter, primarily due to improved pricing and product mix of US$13 million, reduced raw material costs of US$4 million and US$3 million of favorable foreign currency translation. Higher SAG costs were a partial offset. About Goodyear Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear's operations are located in Argentina, Austria, Chile, Colombia, France, Italy, Guatemala, Jamaica, Peru, Russia, among others. Goodyear employs more than 80,000 people worldwide. * * * As reported in the Troubled Company Reporter on June 4, 2007, Standard & Poor's Ratings Services raised its ratings on Goodyear Tire & Rubber Co., including its corporate credit rating to 'BB-' from 'B+'. In addition, the ratings were removed from CreditWatch where they were placed with positive implications on May 10, 2007. Recovery ratings were not on CreditWatch. These ratings still apply as of Nov. 8, 2007. GOODYEAR TIRE: Commences Offer to Exchange 4% Conv. Senior Notes ---------------------------------------------------------------- The Goodyear Tire & Rubber Company has commenced an offer to exchange any and all of its outstanding 4% Convertible Senior Notes due June 15, 2034, for a cash premium and shares of its common stock. "This exchange offer is another step in our plan to further de- lever and improve our capital structure," W. Mark Schmitz, executive vice president and chief financial officer, said. "This allows us to reduce our debt by as much as US$350 million, save up to US$14 million a year in interest and simplify our balance sheet." The exchange offer allows holders of convertible notes to receive the same number of shares of the company's common stock as they would receive upon conversion of the convertible notes in accordance with their current terms, plus a cash premium and accrued and unpaid interest. For each US$1,000 principal amount of convertible notes validly tendered, note holders will receive 83.0703 shares of the company's common stock, which represents a conversion price of approximately US$12.04 per share. In addition, per each US$1,000 principal amount of convertible notes, the company will offer note holders a cash payment of US$48.30 as well as accrued and unpaid interest up to, but excluding, the exchange date. The offer is scheduled to expire at 5:00 p.m., New York City time, on Dec. 5, 2007. As of Nov. 6, 2007, there was US$349,798,000 principal amount of convertible notes outstanding. Copies of the prospectus may be obtained from the exchange agent: Wells Fargo Bank N.A. Corporate Trust Operations Sixth and Marquette, MAC N0303- 121 Minneapolis, Minn. 55479 Tel (800) 344-5128 Goodyear has engaged Goldman, Sachs & Co., telephone (800) 828- 3182, to act as dealer manager in connection with the exchange offer. About Goodyear Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear Tire has marketing operations in almost every country around the world including Chile, Colombia, Guatemala, Jamaica and Peru in Latin America. Goodyear employs more than 80,000 people worldwide. * * * Moody's Investor Services placed Goodyear Tire & Rubber Co.'s long term corporate family and bank loan debt ratings at 'B1' in November 2005. The ratings still hold to date with negative outlook. =================== K A Z A K H S T A N =================== A GROUP CREDIT: Creditors' Claims Due on Dec. 11 ------------------------------------------------ LLP Microcredit Organization A Group Credit has declared insolvency. Creditors have until Dec. 11 to submit written proofs of claims to: LLP Microcredit Organization A Group Credit Pushkin Str. 166/5 Astana Kazakhstan ETALON-TENZO LLP: Claims Registration Ends Dec. 11 -------------------------------------------------- LLP Scientific-Manufacturing Firm Etalon-Tenzo has declared insolvency. Creditors have until Dec. 11 to submit written proofs of claims to: LLP Scientific-Manufacturing Firm Etalon-Tenzo Otegen batyr Str. 14 Almaty Kazakhstan KASPY SNAB: Claims Registration Ends Dec. 11 -------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau has declared LLP Kaspy Snab Service Ltd. insolvent on Sept. 20. Creditors have until Dec. 11 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Mangistau Kazakhstan Tel: 8 (7292) 50-97-23 NOTEX LLP: Creditors' Claims Due on Dec. 11 ------------------------------------------- The Specialized Inter-Regional Economic Court of Aktube has declared LLP Notex insolvent on Oct. 4. Creditors have until Dec. 11 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Aktube Altynsarin Str. 31 Aktobe Aktube Kazakhstan Tel: 8 (3132) 21-30-32 PROMSERVICE-TL LLP: Claims Filing Period Ends Dec. 7 ---------------------------------------------------- LLP Promservice-TL has declared insolvency. Creditors have until Dec. 7 to submit written proofs of claims to: LLP Promservice-TL Micro Mistrict Taugul, 33-4 Almaty Kazakhstan RAUAN LLP: Creditors Must File Claims Dec. 7 -------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Rauan insolvent. Creditors have until Dec. 7 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 Ust-Kamenogorsk East Kazakhstan Kazakhstan ROYAL TRADE: Proof of Claim Deadline Slated for Dec. 11 ------------------------------------------------------- Branch of LLP Royal Trade in Zyryanovsk has declared insolvency. Creditors have until Dec. 11 to submit written proofs of claims to: Branch of LLP Royal Trade Lenin Str. 69 Zyryanovsk East Kazakhstan Kazakhstan SARY-ARKA LLP: Creditors Must File Claims Dec. 7 ------------------------------------------------ LLP Scientific-Manufacturing Firm Sary-Arka has declared insolvency. Creditors have until Dec. 7 to submit written proofs of claims to: LLP Scientific-Manufacturing Firm Sary-Arka Micro District Vostok, 89/23 Shymkent South Kazakhstan Kazakhstan SDK LLP: Claims Filing Period Ends Dec. 7 ----------------------------------------- The Specialized Inter-Regional Economic Court of Pavlodar has declared LLP SDK insolvent. Creditors have until Dec. 7 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Pavlodar Naberejnaya Str. 3-103 Pavlodar Kazakhstan SHYGYS-ASTYK LLP: Proof of Claim Deadline Slated for Dec. 7 ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Shygys-Astyk insolvent. Creditors have until Dec. 7 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Bajov Str. 2 Ust-Kamenogorsk East Kazakhstan Kazakhstan =================== K Y R G Y Z S T A N =================== BISHKEK TRANS-SYSTEMS: Creditors Must File Claims by December 7 --------------------------------------------------------------- LLC Bishkek Trans-Systems has declared insolvency. Creditors have until Dec. 7 to submit written proofs of claim to: LLC Bishkek Trans-Systems Unusaliyev Str. 115 Bishkek Kyrgyzstan Tel: (+996 312) 57-77-75 SHEFALI-TRADING LLC: Proof of Claim Deadline Slated for Dec. 7 -------------------------------------------------------------- LLC Shefali-Trading has declared insolvency. Creditors have until Dec. 7 to submit written proofs of claim to: LLC Shefali-Trading Bakiyev Str. 40 Djalal-Abad Kyrgyzstan Tel: (0-555) 85-86-86 ===================== N E T H E R L A N D S ===================== DUTCH MBS XII: Fitch Rates Class E Notes at BB; Outlook Positive ---------------------------------------------------------------- Fitch Ratings has affirmed 11 tranches of Dutch MBS transactions following a satisfactory performance review: Dutch MBS 98-I B.V.: -- Class B (ISIN XS0091885763): affirmed at 'AAA'; Outlook Stable Dutch MBS XII B.V.: -- Class A (ISIN XS0216830199): affirmed at 'AAA'; Outlook Stable -- Class B (ISIN XS0216832302): affirmed at 'AA'; Outlook Positive -- Class C (ISIN XS0216832724): affirmed at 'A'; Outlook Positive -- Class D (ISIN XS0216833375): affirmed at BBB+'; Outlook Positive -- Class E (ISIN XS0216835073): affirmed at 'BB'; Outlook Positive Dutch MBS XIV B.V.: -- Class A (ISIN XS0235088779): affirmed at 'AAA'; Outlook Stable -- Class B (ISIN XS0235089231): affirmed at 'AA'; Outlook Stable -- Class C (ISIN XS0235090320): affirmed at 'A'; Outlook Stable -- Class D (ISIN XS0235091054): affirmed at 'BBB'; Outlook Stable -- Class E (ISIN XS0235091724): affirmed at 'BB'; Outlook Stable The number of affirmations reflects the continued steady performance of these transactions throughout 2006 and the first half of 2007. The more seasoned deals have experienced a healthy growth in credit enhancement due to the sequential pay- down of the notes. Delinquencies, defined as mortgage loans that are more than three months in arrears, remain low in Dutch transactions. The Dutch MBS transactions display low arrears. Of the reviewed loans more than three months in arrears within the Dutch MBS series, Dutch MBS XII B.V. had the lowest at 0.09% and Dutch MBS XIV B.V. had the highest at 0.18%; Dutch MBS 98-I B.V. reduced to zero. Fitch has employed its credit cover multiple methodology in reviewing the deals to assess the level of credit support available to each class of notes. DUTCH MBS XIV: Fitch Rates Class E Notes at BB; Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed 11 tranches of Dutch MBS transactions following a satisfactory performance review: Dutch MBS 98-I B.V.: -- Class B (ISIN XS0091885763): affirmed at 'AAA'; Outlook Stable Dutch MBS XII B.V.: -- Class A (ISIN XS0216830199): affirmed at 'AAA'; Outlook Stable -- Class B (ISIN XS0216832302): affirmed at 'AA'; Outlook Positive -- Class C (ISIN XS0216832724): affirmed at 'A'; Outlook Positive -- Class D (ISIN XS0216833375): affirmed at BBB+'; Outlook Positive -- Class E (ISIN XS0216835073): affirmed at 'BB'; Outlook Positive Dutch MBS XIV B.V.: -- Class A (ISIN XS0235088779): affirmed at 'AAA'; Outlook Stable -- Class B (ISIN XS0235089231): affirmed at 'AA'; Outlook Stable -- Class C (ISIN XS0235090320): affirmed at 'A'; Outlook Stable -- Class D (ISIN XS0235091054): affirmed at 'BBB'; Outlook Stable -- Class E (ISIN XS0235091724): affirmed at 'BB'; Outlook Stable The number of affirmations reflects the continued steady performance of these transactions throughout 2006 and the first half of 2007. The more seasoned deals have experienced a healthy growth in credit enhancement due to the sequential pay- down of the notes. Delinquencies, defined as mortgage loans that are more than three months in arrears, remain low in Dutch transactions. The Dutch MBS transactions display low arrears. Of the reviewed loans more than three months in arrears within the Dutch MBS series, Dutch MBS XII B.V. had the lowest at 0.09% and Dutch MBS XIV B.V. had the highest at 0.18%; Dutch MBS 98-I B.V. reduced to zero. Fitch has employed its credit cover multiple methodology in reviewing the deals to assess the level of credit support available to each class of notes. KONINKLIJKE AHOLD: Reacquires Own Shares for EUR87.34 Million ------------------------------------------------------------- Koninklijke Ahold N.V. it has repurchased 8,522,426 of its own common shares in the period from Oct. 29, 2007, up to and including Nov. 2, 2007. Shares were repurchased at an average price of EUR10.2487 per share for a total amount of EUR87.34 million. These repurchases were made as part of the EUR1 billion share buyback program announced o