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 16, 2007, Vol. 8, No. 228 Headlines A U S T R I A AZD LLC: Vienna Court Orders Business Shutdown ESTRO-ANLAGENTECHNIK: Graz Court Orders Business Shutdown FRIEDRICH WAGNER: Claims Registration Period Ends Dec. 6 GRAD BAU: Vienna Court Orders Business Shutdown MARKO COLAK: Vienna Court Orders Business Shutdown MONTAGE UND LADENBAU: Claims Registration Period Ends Dec. 21 PALMA RESTAURANT: Administrator Declares Insufficient Assets TRANSVER SPEDITION: Claims Registration Period Ends Nov. 30 B E L G I U M ARVINMERITOR INC: Declares US$0.10 Quarterly Dividend ARVINMERITOR INC: Posts US$62 Million Net Loss in Fourth Quarter FERRO CORP: Forms Electronic Packaging Materials Unit SOLUTIA INC: Unit Closes US$6.95 Mln Purchase of Acquired Tech. C Z E C H R E P U B L I C TEXLEN TRUTNOV: Administrator Eye CZK100 Mln Proceeds From Sale F I N L A N D HILTON HOTELS: Inks Management Agreement with Desatur Cariari F R A N C E DELPHI CORP: To Receive Labor Payments from GM Through 2015 LAZARD LTD: Bruce Bilger to Lead Global Energy Unit MEGA BRANDS: Moody's May Cut Low-B Ratings After Review REALOGY CORP: Hires Richard Smith as Chief Executive Officer G E R M A N Y A.S. AUTO-SERVICE: Claims Registration Ends December 18 ASAPP.DE GMBH: Claims Registration Ends December 18 BENQ CORP: Eyes Business Expansion in the Philippines BONFOTO GMBH: Claims Registration Period Ends Dec. 10 FM PRODUCTION: Claims Registration Period Ends Dec. 11 FUTURE IT: Claims Registration Ends December 11 HAKO - ELEKTROTECHNIK: Claims Registration Ends December 17 HEMO BAUMONTAGEN: Claims Registration Period Ends Dec. 14 HUGO KLINGENMEIER: Claims Registration Ends December 17 LIPSIA PROJEKTMANAGEMENT: Claims Registration Ends Dec. 12 M + M SEEBLICK: Claims Registration Period Ends Dec. 10 NOVAFLOR GMBH: Claims Registration Ends December 11 OTK ORIENT: Claims Registration Period Ends December 13 RED HAT: Teams Up with Platform Computing to Offer HPC Solution RTN-IMMOBILIEN GMBH: Claims Registration Period Ends Dec. 10 T-C-H SERVICE: Claims Registration Period Ends December 18 G R E E C E COMVERSE TECH: Andre Dahan Assumes CEO Role for Subsidiary NAVIOS MARITIME: Prices Initial Public Offering at US$20/Share H U N G A R Y SUN MICROSYSTEMS: Enters into Definitive Pact Acquiring Vaau I R E L A N D INTERNATIONAL SECURITIES: Scraps Bond Sale & Delays Results SCOTTISH RE: Declares Perpetual Preferred Share Cash Dividend SCOTTISH RE: Moody's Holds (P)Ba3 Rating on Sr. Unsecured Shelf I T A L Y ALITALIA SPA: Chairman to Recommend Buyer by Nov. 23 DANA CORP: Wants to Settle Asbestos Claims for US$2 Million DANA CORP: Ad Hoc Asbestos Panel Balks at Proposed Settlement DANA CORP: Court Rejects Jasco's US$20 Million Claim X-RITE INC: Posts US$2.8 Mln Net Loss in Quarter Ended Sept. 29 K A Z A K H S T A N AUTO NUR: Creditors Must File Claims by Dec. 14 FORCE TECHNOLOGY: Claims Filing Period Ends Dec. 14 KAZAKHSTAN SNABSTROY: Creditors' Claims Due on Dec. 14 OIL SERVICE: Claims Registration Ends Dec. 14 K Y R G Y Z S T A N HAYDAR INSAAT: Creditors Must File Claims by December 19 L U X E M B O U R G CA INC: Signs Strategic Deal with HCL Technologies MILLICOM INT'L: Moody's Lifts Corporate Family Rating to Ba2 P O R T U G A L ACXIOM CORP: Charles Morgan Quits from Board of Directors R U S S I A KROMSKIJ CJSC: Asset Sale Slated for Dec. 5 MASHINOSTROITEL': Creditors Must File Claims by Jan. 3, 2008 OB'BISH LLC: Asset Sale Slated for Dec. 5 RODINSKIJ LLC: Asset Sale Slated for December 3 ROSNEFT OIL: Mulls US$2 Billion Eurobond Issue by Yearend SCIENTIFIC CENTER: Asset Sale Slated for December 6 SITRONICS JSC: Names Mikhail Minkovsky as Chief Tech Officer SODRUZHESTVO OJSC: Asset Sale Slated for Dec. 4 TMK OAO: Moody's Changes Outlook on Ba3 Rating to Positive S W E D E N QUEBECOR WORLD: S&P Rates Proposed US$400 Mln Senior Notes at B S W I T Z E R L A N D ALPSTEIN WOHNBAU: Creditors Must File Claims by November 19 DENTAL-KERAMIK: Basel-Stadt Court Closes Bankruptcy Proceedings FORMICA (SCHWEIZ): Creditors Must File Claims by November 19 FRIGO-THERMO HANDEL: Creditors Must File Claims by November 19 HANS KRUSI: Creditors' Liquidation Claims Due by November 19 IMZ GRAFIK & GESTALTUNG: Creditors Must File Claims by Nov. 19 JTRACK LLC: Creditors' Liquidation Claims Due by November 19 KRONENBERG JSC: Basel-Stadt Court Closes Bankruptcy Proceedings PLATZ-HAUS JSC: Zurich Court Starts Bankruptcy Proceedings SPH JSC: Creditors' Liquidation Claims Due by November 19 U K R A I N E CHERNOVTSY-MOTORCAR: Claims Filing bar Date Set November 21 DOVIRA-06 LLC: Claims Filing Bar Date Set November 21 ELIT-BUILDING PLUS: Creditors Must File Claims by November 21 MEGAMOTORS LLC: Creditors Must File Claims by November 22 MOLODETSKOYE LLC: Creditors Must File Claims by November 21 PROMINVESTBANK: Moody's Assigns Ba2/B2/E+ Global Scale Ratings RADON: Creditors Must File Claims by November 22 ZHUKOVSKOE LLC: Creditors Must File Claims by November 21 U N I T E D K I N G D O M AFFINIA GROUP: Completes Acquisition of Brake Pro Assets AMBROSE FOOTWEAR: Taps Liquidators from PricewaterhouseCoopers BRITISH AIRWAYS: Seeks EUR2.5 Bln Loan to Finance Iberia Bid CABLE & WIRELESS: Loses More Than US$100 Mil. from Cable Theft COREL CORP: S&P Holds B Rating and Revises Outlook to Stable FEDERAL MOGUL: U.S. District Court Affirms Chapter 11 Plan FREESCALE SEMI: Joins SPIRIT Consortium Board of Directors FREESCALE SEMICONDUCTOR: Fitch Assigns Low B & Junk Ratings GALAXY TRANSPORTATION: Calls In Liquidators from Menzies GENERAL MOTORS: To Make Labor Payments to Delphi Through 2015 GENERAL MOTORS: Signs 2007 UAW-GM National Labor Contract LE PETIT: Brings In Liquidators from Baker Tilly Restructuring MDS SYSTEMS: Names Nicholas John Miller Liquidator NORTHERN ROCK: Court Issues Limited Injunction on Leaked Memo REMY WORLDWIDE: Files Supplement to Prepackaged Chapter 11 Plan REMY WORLDWIDE: Plan Confirmation Hearing Set for November 20 SENSIENT TECHNOLOGIES: Officer Adopts Rule 10b5-1 Trading Plan SHERWOOD PROJECTS: Appoints Liquidator from Mazars TYSON FOODS: Earns US$32 Million in Fourth Qtr. Ended Sept. 30 * BOOK REVIEW: Voluntary Assignments for the Benefit of Creditors, Volumes I and II ********* ============= A U S T R I A ============= AZD LLC: Vienna Court Orders Business Shutdown ---------------------------------------------- The Trade Court of Vienna entered Oct. 18 an order shutting down the business of LLC AZD (FN 265982a). Court-appointed estate administrator Gerhard Bauer recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Mag. Gerhard Bauer Mahlerstrasse 7 1010 Vienna Austria Tel: 512 97 06 E-mail: ra-g.bauer@aon.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 9 (Bankr. Case No 2 S 138/07t). ESTRO-ANLAGENTECHNIK: Graz Court Orders Business Shutdown --------------------------------------------------------- The Land Court of Graz entered Oct. 12 an order shutting down the business of LLC ESTRO-Anlagentechnik (FN 245080m). Court-appointed estate administrator Georg Dieter recommended the business shutdown after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Mag. Georg Dieter Friedhofgasse 20 8020 Graz Austria Tel: 0316/7085-0 Fax: 0316/7085-25 E-mail: law-office@rath-partner.at Headquartered in Graz, Austria, the Debtor declared bankruptcy on Oct. 11 (Bankr. Case No 40 S 25/07k). FRIEDRICH WAGNER: Claims Registration Period Ends Dec. 6 -------------------------------------------------------- Creditors owed money by LLC Friedrich Wagner & Sohn & Co KG (FN 41617b) have until Dec. 6 to file written proofs of claim to court-appointed estate administrator Eberhard Wallentin at: Dr. Eberhard Wallentin Porzellangasse 4-6 1090 Vienna Austria Tel: 313 74-0 Fax: 313 74-80 E-mail: office@ksw.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 a.m. on Dec. 20 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 12 (Bankr. Case No. 5 S 116/07d). GRAD BAU: Vienna Court Orders Business Shutdown ----------------------------------------------- The Trade Court of Vienna entered Oct. 15 an order shutting down the business of LLC GRAD Bau (FN 258081g). Court-appointed estate administrator Ilse Korenjak 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. Ilse Korenjak Gusshausstrasse 6 1040 Vienna Austria Tel: 5122102 Fax: 5122102-20 E-mail: office@buresch-korenjak.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 4 (Bankr. Case No 4 S 114/07b). MARKO COLAK: Vienna Court Orders Business Shutdown -------------------------------------------------- The Trade Court of Vienna entered Oct. 18 an order shutting down the business of LLC Marko Colak Trade (FN 285832t). Court-appointed estate administrator Matthias Schmidt 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. 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 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. MONTAGE UND LADENBAU: Claims Registration Period Ends Dec. 21 ------------------------------------------------------------- Creditors owed money by LLC Montage und Ladenbau (FN 32360p) have until Dec. 21 to file written proofs of claim to court- appointed estate administrator Georg Rupprecht at: Mag. Georg Rupprecht Hauptplatz 9-13 2500 Baden Austria Tel: 02252/86 580 Fax: 02252/865803 E-mail: rupprecht@lexacta.com Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Jan. 8, 2008 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 Oberwaltersdorf, Austria, the Debtor declared bankruptcy on Oct. 12 (Bankr. Case No. 11 S 100/07b). PALMA RESTAURANT: Administrator Declares Insufficient Assets ------------------------------------------------------------ Mag. Christian Steurer, the court-appointed estate administrator for LLC PALMA Restaurant (FN 179173s), declared Oct. 15 that the Debtor's property is insufficient to cover creditors' claim. The Land Court of Feldkirch ordered the shutdown of the Debtor's business on Oct. 8. Headquartered in Bregenz, Austria, the Debtor declared bankruptcy on Oct. 3 (Bankr. Case No. 13 S 49/07x). Mag. Stefan Aberer represents Mag. Steurer in the bankruptcy proceedings. The estate administrator can be reached 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 TRANSVER SPEDITION: Claims Registration Period Ends Nov. 30 ----------------------------------------------------------- Creditors owed money by LLC Transver Spedition und Handel (FN 98700y) have until Nov. 30 to file written proofs of claim to court-appointed estate administrator Maximilian Schludermann at: Dr. Maximilian Schludermann Reisnerstrasse 32/12 1030 Vienna Austria Tel: 715 50 45 Fax: 715 50 474 E-mail: office@anwalt-vienna.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on Dec. 14 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1607 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 15 (Bankr. Case No. 28 S 115/07a). ============= B E L G I U M ============= ARVINMERITOR INC: Declares US$0.10 Quarterly Dividend ----------------------------------------------------- The ArvinMeritor Inc. Board of Directors, at a meeting held on Nov. 13, 2007, at its corporate headquarters in Troy, Mich., declared a quarterly dividend of US$0.10 per share on the common stock of ArvinMeritor, payable Dec. 10, 2007, to holders of record at the close of business on Nov. 26, 2007. The company also disclosed Wednesday that its annual shareowners' meeting will be held on Jan. 25, 2008, at 9 a.m. EST, at its Troy, Mich. headquarters. Shareowners of record at the close of business on Nov. 23, 3007, will be entitled to notice of, and to vote, at the annual meeting. About Arvinmeritor Headquartered in Troy, Michigan, ArvinMeritor Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- supplies integrated systems, modules and components to the motor vehicle industry. The company serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. ArvinMeritor employs about 29,000 people at more than 120 manufacturing facilities in 25 countries. These countries are: China, India, Japan, Singapore, Thailand, Australia, Venezuela, Brazil, Argentina, Belgium, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Spain, Sweden, Switzerland, United Kingdom, among others. * * * As reported in the Troubled Company Reporter on Oct. 9, 2007, Fitch Ratings downgraded its ratings on ArvinMeritor Inc. including Issuer Default Rating to 'BB-' from 'BB'; Senior secured revolver to 'BB' from 'BB+'; and Senior unsecured notes to 'B+' from 'BB-'. The rating outlook is negative. Standard & Poor's Ratings Services lowered its corporate credit rating and related ratings on ArvinMeritor Inc. to 'B+' from 'BB-'. The outlook is negative. Moody's Investors Service downgraded ArvinMeritor's Corporate Family Rating to B1 from Ba3 and maintained the outlook at stable. Moody's also lowered its ratings on the company's secured bank obligations (to Ba1, LGD-1, 8% from Baa3, LGD-2, 13%) and unsecured notes (to B2, LGD-4, 63% from B1, LGD-4, 63%). The Probability of Default is changed to B1 from Ba3, while the company's Speculative Grade Liquidity rating remains SGL-2. The outlook is stable. ARVINMERITOR INC: Posts US$62 Million Net Loss in Fourth Quarter ---------------------------------------------------------------- ArvinMeritor Inc. reported Wednesday financial results for its full fiscal year and fourth quarter ended Sept. 30, 2007. The company reported a net loss of US$62 million for the fourth quarter ended Sept. 30, 2007, compared with a net loss of US$274 million for the same period in fiscal year 2006. For the fourth quarter of fiscal year 2007, ArvinMeritor posted sales of US$1.6 billion, flat over the same period last year. Sales reflect the continued downturn in Class 8 North American truck sales offset by stronger volumes in other regions. Operating income in the fourth quarter of 2007, before special items, was US$8 million, compared to operating income, before special items, of US$56 million in the prior year's fourth quarter. Loss from continuing operations during the fourth quarter of fiscal year 2007, before special items, was US$4 million, compared to income from continuing operations, before special items, of US$29 million a year ago. Fourth-quarter results reflect reduced North American volumes and significant premium costs associated with record European volumes. Special items included costs associated with supplier reorganizations, restructuring expenses and certain non- recurring tax charges. For the fourth quarter of 2007, ArvinMeritor reported positive free cash flow of US$178 million. "Despite the solid progress we are making in implementing our strategic initiatives, our results this quarter were negatively impacted by weaker than anticipated North American truck production and the continuing capacity challenges in our European truck operations," said chairman, chief executive officer and president Chip McClure. "Going forward, we believe European capacity issues will be less severe due to actions we are taking to implement lean manufacturing improvements and bring new suppliers into the pipeline. "Following this period of extended softness in the North American truck market, we expect to see a rebound as the industry gradually returns in 2008. In Europe, we look forward to continued strong sales volumes, and in Asia and South America, we expect volumes to grow significantly." Sales from continuing operations for fiscal year 2007 were US$6.4 billion, up US$34 million, compared to fiscal year 2006. On a GAAP basis, net loss was US$219 million, compared to a net loss of US$175 million in fiscal tear 2006. Loss from continuing operations was US$30 million, compared to income from continuing operations of US$112 million in fiscal year 2006. Net debt was reduced by US$146 million during the fiscal year despite negative free cash flow of US$113 million. At Sept. 30, 2007, the company's consolidated balance sheet showed US$4.789 billion in total assets, US$4.181 billion in total liabilities, US$65 million in minority interests, and US$543 million in shareowners' equity. About Arvinmeritor Headquartered in Troy, Michigan, ArvinMeritor Inc. (NYSE: ARM) -- http://www.arvinmeritor.com/-- supplies integrated systems, modules and components to the motor vehicle industry. The company serves commercial truck, trailer and specialty original equipment manufacturers and certain aftermarkets, and light vehicle manufacturers. ArvinMeritor employs about 29,000 people at more than 120 manufacturing facilities in 25 countries. These countries are: China, India, Japan, Singapore, Thailand, Australia, Venezuela, Brazil, Argentina, Belgium, Czech Republic, France, Germany, Hungary, Italy, Netherlands, Spain, Sweden, Switzerland, United Kingdom, among others. * * * As reported in the Troubled Company Reporter on Oct. 9, 2007, Fitch Ratings downgraded its ratings on ArvinMeritor Inc. including Issuer Default Rating to 'BB-' from 'BB'; Senior secured revolver to 'BB' from 'BB+'; and Senior unsecured notes to 'B+' from 'BB-'. The rating outlook is negative. Standard & Poor's Ratings Services lowered its corporate credit rating and related ratings on ArvinMeritor Inc. to 'B+' from 'BB-'. The outlook is negative. Moody's Investors Service downgraded ArvinMeritor's Corporate Family Rating to B1 from Ba3 and maintained the outlook at stable. Moody's also lowered its ratings on the company's secured bank obligations (to Ba1, LGD-1, 8% from Baa3, LGD-2, 13%) and unsecured notes (to B2, LGD-4, 63% from B1, LGD-4, 63%). The Probability of Default is changed to B1 from Ba3, while the company's Speculative Grade Liquidity rating remains SGL-2. The outlook is stable. FERRO CORP: Forms Electronic Packaging Materials Unit ----------------------------------------------------- Ferro Corporation's Electronic Material Systems has combined several sub-business units into the newly formed Electronic Packaging Materials unit. The new EPM unit was formed to make it easier for customers to buy both performance-enhancing engineered formulations and cost-effective materials used to produce hybrid circuits, microelectronics, advanced packaging, and devices. "We've combined several product-focused businesses to provide a full range of options to meet all of our electronics packaging customers' needs with a single point of contact," said Jeffrey Edel, Business Director/General Manager, Ferro Electronic Material Systems. "EPM's focused approach simplifies providing what customers need to gain an advantage, regardless of the product type." Ferro has a long track record of providing market-leading systems of matched engineered materials, as well as applied technology expertise to help integrate products into customers' manufacturing processes. These products are often customized for specific applications. In addition, many customers make their own formulations in-house, or use certain Ferro materials for particular functions. EPM was created to serve the full range of these customer needs. Engineered formulation product lines improve product performance and/or production efficiency in specific customer applications. These product lines include thick film conductive pastes and matched material systems comprised of resistor pastes, dielectrics, and overglazes for hybrid IC and metal core substrate applications, as well as high-performance, low temperature ceramic co-fired (LTCC) tape with a gold-based matched materials system. Ferro's cost-effective discrete materials provide building blocks for customers' electronic materials formulations. EPM offers electronic and technical glasses, and LTCC formulated powders. Ferro also manufactures binders and metal powders, as well as custom and proprietary electronic materials. About Ferro Electronic Ferro Electronic Material Systems has locations in Vista, CA; Penn Yan, NY; South Plainfield, NJ; Haverhill, United Kingdom; Uden, The Netherlands; Hanau, Germany; Tsukuba, Japan; and Suzhou, China. Its products include advanced packaging and thick film conductors; metal pastes and powders for solar energy applications; chemical mechanical planarization (CMP) slurries for semiconductors and advanced integrated circuits; dielectrics used in chip components and multilayer ceramic capacitors (MLCC); and surface finishing materials for LCD, hard disk, and ophthalmic polishing. About Ferro Corp. 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 USUS$2 billion for the FYE ended Dec. 31, 2006. Ferro Corp. has global locations in Argentina, Australia, Belgium, Brazil, China, among others. * * * As reported in the Troubled Company Reporter-Latin America on May 16, 2007, Moody's Investors Service assigned a B1 corporate family rating to Ferro Corporation. Moody's also assigned a B1 rating to the company's USUS$200 million senior secured notes (issued as unsecured notes in 2001) due in January 2009 and an SGL-3 speculative grade liquidity rating. SOLUTIA INC: Unit Closes US$6.95 Mln Purchase of Acquired Tech. --------------------------------------------------------------- Solutia(r) Inc.'s CPFilms(r) business unit has acquired the customer list, patents, production equipment and certain other assets of Acquired Technology, Inc. for US$6.95 million. The ATI acquisition provides technology to help fuel the growth and development of CPFilms' broad product portfolio while immediately adding sales volume in the dyed window film components segment. "CPFilms is committed to continuing our strong record of global growth and market development, and this acquisition will help us to take an important step in that direction," said Kent Davies, president of Solutia's CPFilms business. "CPFilms will continue to emphasize customer service, quality, and product performance as we serve ATI's components customers. In addition, we are broadening our portfolio of available technologies to drive window film sales all over the world." Solutia's CPFilms business is the world's largest producer of high-quality, after-market window films, which bring benefits such as comfort, aesthetics, energy savings, and security when applied to glass. CPFilms also is a leading supplier of high- value precision coated films and film components sold to a variety of industries, and holds market-leading technology positions in support of both businesses. CPFilms is based in St. Louis, Mo., with manufacturing facilities in Martinsville, Va., Axton, Va., Canoga Park, Calif., and Runcorn, U.K. Based in Alpharetta, Georgia, ATI specializes in dyeing polyester film with a proprietary, patented thermosol process. ATI was formed in 1991 and has exclusively manufactured dyed film since its inception. Dyed film is an important component of finished window film products and a key segment within CPFilms' Precision Coatings business. The ATI acquisition enhances the business' position as a technology leader and supplier of dyed film while providing technologies that will allow it to continue to emphasize the marketing, manufacturing and development of highly- differentiated branded window films. Under the purchase agreement, ATI's founders and principal owners, Tony Mercado and Don Futch, will serve as consultants to CPFilms following the closing of the transaction. About Solutia Inc. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. A hearing to consider confirmation of the Debtors' Reorganization Plan is scheduled for Nov. 29, 2007. =========================== C Z E C H R E P U B L I C =========================== TEXLEN TRUTNOV: Administrator Eye CZK100 Mln Proceeds From Sale --------------------------------------------------------------- Josef Oubrecht, the bankruptcy administrator of Texlen Trutnov, told CTK Czech News Agency that the sale of the company's assets should generate about CZK100 million, while all main assets have already been sold. As reported in the TCR-Europe on Aug. 20, 2007, Texlen Trutnov has put its plants in Trutnov, Mlade Buky, Rudnik and Radvanice up for sale for at least CZK60.7 million. The Regional Court in Hradec Kralove declared Texlen Trutnov bankrupt in March 2007 after parent company Texlen Linen entered bankruptcy proceedings. CTK relates that the company is facing up to CZK180 million in creditor claims. ============= F I N L A N D ============= HILTON HOTELS: Inks Management Agreement with Desatur Cariari ------------------------------------------------------------- Hilton Hotels Corporation has signed a multi-year management agreement with Desatur Cariari, S.A. for a full-service Doubletree by Hilton(TM) hotel in San Jose, Costa Rica - the Hilton Family of Hotels' fourth hotel development in Costa Rica this year. Prior to its anticipated opening in January 2008, the 222-room Doubletree Cariari by Hilton San Jose, Costa Rica will undergo a series of renovations featuring upgrades to guestrooms, public areas, restaurants, meeting facilities, and more. "Hilton has made a commitment to grow its family of hotels throughout Central America, and we are thrilled to bring another Doubletree by Hilton hotel to the most visited country in the region. The Doubletree Cariari by Hilton San Jose and Doubletree by Hilton Puntarenas Resort will complement each other and support the brand's recognition as we continue to grow," commented Danny Hughes, area vice president, Caribbean and Central America, for Hilton Hotels Corporation. "The full- service Doubletree Cariari by Hilton San Jose will acquaint guests with the diversity that makes this country such a great place to visit for business or pleasure." Located in Costa Rica's capital city of San Jose, the Doubletree Cariari by Hilton San Jose is just five minutes from Juan Santamaria International Airport and ten minutes from the city center. The hotel will feature 174 charming guestrooms and 48 suites, including 24 suites with specialized butler service. Recreation options will include two swimming pools, fitness center, and casino, while business travelers will have access to a fully equipped business center, and 11 meeting rooms. The hotel will offer one signature restaurant, a pool bar, and cafeteria, serving everything from local to international cuisine. And, if sightseeing is on the schedule, the hotel is five minutes from the Plaza Real Cariari shopping center, 30 minutes from the Coffee Tour and Finca de Mariposas (butterfly farm), and one hour from the Irazu Volcano national park. In January, Hilton Hotels Corporation announced multi-year management agreements to manage a 202-room property in Papagayo and a 410-room property in Puntarenas as the first Hilton and Doubletree by Hilton branded resorts in Costa Rica, respectively. Both resorts are anticipated to open in January 2008. Earlier this year, Hilton also announced the signing of a franchise hotel agreement for a Hilton Garden Inn(TM) hotel in Liberia, Costa Rica, which is forecasted to open in Fall 2008. "Costa Rica is a thriving destination and we are delighted to bring our second Doubletree by Hilton hotel to this area of Central America," said Dave Horton, senior vice president - brand management for Doubletree Hotels. "Doubletree Hotels continues to expand its upscale, full-service hotel portfolio at a solid pace and this newest hotel agreement in San Jose, Costa Rica reinforces our pride in Doubletree being recognized by hotel owners and developers as a dynamic, credible and lucrative hotel brand for hoteliers around the world." "We are delighted to be part of the Hilton Family of Hotels and fly the Doubletree by Hilton flag on our property in San Jose, Costa Rica," said Yukiko Nakayama, president of Desatur Cariari, S.A. "The Hilton Family boasts a collection of sales, marketing, and technology tools that will complement our product and help deliver great recognition and success for our new hotel. We look forward to a long and prosperous partnership." About Desatur Cariari Desatur Cariari, S.A. owns the Melia Cariari scheduled to become the Doubletree Cariari by Hilton, San Jose in January 2008, a resort known for its traditional Costa Rican flavor. The parent company is Corporacion Hotelera Cari-Coro, S.A., a prosperous Japanese corporation that owns a second hotel in Costa Rica. Both properties have enjoyed positive results and great success thanks to the recognition generated amongst visitors and the support of the Costa Rican Tourism Institute. About Doubletree Hotels With a growing collection of contemporary, upscale accommodations in more than 180 gateway cities, metropolitan areas and vacation destinations throughout the U.S., Canada and Latin America and an aggressive hotel development campaign around the world, Doubletree Hotels, Guest Suites and Resorts are distinctively designed properties that provide true comfort to today's business and leisure travelers. From the millions of delighted hotel guests who are welcomed with the brand's legendary, warm chocolate chip cookies at check-in to the advantages of the award-winning Hilton HHonors(R) guest reward program, each Doubletree guest receives a satisfying stay wherever their travels take them. About Hilton Hotels Headquartered in Beverly Hills, California, Hilton Hotels Corp. -- http://www.hilton.com/-- together with its subsidiaries, engages in the ownership, management, and development of hotels, resorts, and timeshare properties, as well as in the franchising of lodging properties in the United States and internationally, including Australia, Austria, Barbados, Costa Rica, Finland, India, Indonesia, Trinidad and Tobago, Philippines and Vietnam. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 29, 2007, Moody's Investors Service downgraded Hilton Corporation's Corporate Family Rating and senior unsecured ratings to B3 and Caa1, respectively. =========== F R A N C E =========== DELPHI CORP: To Receive Labor Payments from GM Through 2015 ----------------------------------------------------------- General Motors Corp. said in its third quarter 2007 financial report filed with the U.S. Securities and Exchange Commission that it expects to make its annual payments to Delphi Corp. for labor costs through 2015, and said the payments could extend for up to five more years. Michigan-based General Motors said it will pay US$300,000,000 to US$400,000,000 a year for labor costs, as part of the settlements reached with Delphi and its labor union United Automobile, Aerospace & Agricultural Implement Workers of America. Pursuant to the settlements, which was contemporaneously filed with Delphi's Joint Plan of Reorganization on September 6, 2007 before the U.S. Bankruptcy Court for the Southern District of New York, General Motors agreed to reimburse a certain portion of Delphi's U.S. hourly labor costs incurred to produce systems, components, and parts for GM from October 1, 2006 through September 14, 2015. General Motors and the bankrupt auto-parts supplier also agreed to resolve all outstanding issues and claims against each other. Delphi agreed to withdraw a prior request to terminate its supply agreements with GM. Delphi, GM's former parts-making unit, also agreed to issue a US$1,500,000,000 note in favor of GM, in exchange for its assumption of Delphi's pension obligations, and pay US$2,700,000,000 cash to GM on the effective date of the Plan. Due to difficulties in obtaining commitment for a proposed US$7,100,000,000 exit financing contemplated in the Plan, Delphi, however, has reduced the amount of cash to available for use as "currency" to be paid to creditors and interest holders. GM has consented to an amendment, providing that GM would receive US$1,500,000,000 in a combination of at least US$750,000,000 in cash and a second lien note for the remaining amount and US$1,200,000,000 in junior convertible preferred stock of Delphi, instead of US$2,700,000,000 in cash. Delphi is scheduled to seek the Bankruptcy Court's approval of the disclosure statement explaining the terms of the Plan at a November 29, 2007 hearing, which has already delayed for almost two months. Delphi has to obtain approval of the disclosure statement before it could begin soliciting votes from creditors and equity holders on the Plan. Delphi expects to emerge from bankruptcy in the first quarter of 2008. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com/-- was founded in 1908. GM employs about 280,000 people around the world and manufactures cars and trucks in 33 countries, including the United Kingdom, Germany, France, Russia, Brazil and India. In 2006, nearly 9.1 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn and Vauxhall. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. About Delphi Corp. Based 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. 96; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). LAZARD LTD: Bruce Bilger to Lead Global Energy Unit --------------------------------------------------- Lazard Ltd. disclosed that Bruce Bilger will join the firm's Financial Advisory business as Chairperson and Head of Global Energy, and will co-head its Southwest Investment Banking region, effective Jan. 1, 2008. Based in Houston, Mr. Bilger is currently with Vinson & Elkins L.L.P., one of the world's leading energy and M&A law firms, as the Head of its Energy Practice Group, a global 400-plus-attorney practice. He also is Co-Head of the law firm's Business and International Section, a 180-plus-attorney corporate and transactions practice. "Power and energy are core global sectors at Lazard," said Bruce Wasserstein, Chairman and Chief Executive Officer of Lazard. "As we continue to bolster our industry teams around the world, we are delighted that Bruce is joining us to help reinforce our strong position in power and energy." "Bruce is renowned for his in-depth knowledge of the energy industry and is widely recognized for providing high-value strategic legal advice in corporate matters as well as mergers and acquisitions," said Kenneth Jacobs, CEO of Lazard North America. "The combination of these skills and his significant financial background, positions him to be highly qualified as an advisor on transactions for Lazard clients." "I am fortunate to have had the opportunity to work with many of the best attorneys in the world at Vinson & Elkins over the past three decades, and having had the platform there to build a practice focused on the energy business," said Mr. Bilger. "Having worked on a number of transactions involving Lazard bankers over the years, I am excited to have this new opportunity to work alongside them, and to provide advice on a financial platform with the world's premier independent investment bank. I especially look forward to working closely with senior Lazard Managing Directors George Bilicic in strengthening the energy expertise in the firm's global Power & Energy sector and Harry Pinson in Houston to help drive Lazard's Southwest Investment Banking business." By joining Lazard, Mr. Bilger will conclude a very successful career with Vinson & Elkins, where he helped build its energy team. In 2006, Vinson & Elkins' energy practice lawyers handled over 2,000 matters with a collective value of more than US$187 billion. Mr. Bilger's practice consisted primarily of domestic and international business transactions, including mergers and acquisitions, international infrastructure development projects, project finance, and other corporate transactions, particularly in the energy industry. "Bruce and I started at the firm together and have been close friends and colleagues for 30 years," said Joe Dilg, Managing Partner of Vinson & Elkins. "He will be sorely missed but has left a legacy of many talented energy specialists at Vinson & Elkins. We congratulate Bruce and wish him every success in this next stage of his illustrious career." During his tenure at Vinson & Elkins, Mr. Bilger has led the teams handling many of the firm's most significant energy industry transactions, including Duke Energy's US$8 billion cross-border acquisition of Canada's Westcoast Energy, Enterprise Products Partners' US$13 billion merger with El Paso's master limited partnership GulfTerra, and the recently completed US$45 billion acquisition of TXU by Kohlberg Kravis Roberts, TPG and other investors. He is active in the Greater Houston Partnership and other civic and charitable organizations in the Houston community. Mr. Bilger received combined MBA and JD degrees from the University of Virginia and a BA from Dartmouth College. About Lazard Ltd. Lazard Ltd. (NYSE:LAZ) -- http://www.lazard.com/-- is a preeminent financial advisory and asset management firms, that operates from 32 cities across 16 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, 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. 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' deficiency. MEGA BRANDS: Moody's May Cut Low-B Ratings After Review ------------------------------------------------------- Moody's Investors Service placed the B1 corporate family rating and other long term ratings of MEGA Brands, Inc. on review for possible downgrade after the company announced weaker than expected results for the third quarter of 2007 and for year-to- date. The LGD rates are also subject to change. The speculative grade liquidity rating was affirmed at SGL-3. These ratings were placed on review for possible downgrade: * MEGA Brands, Inc. -- Corporate Family Rating of B1: -- Probability of Default of B2; -- US$120 million 5-year revolving credit facility maturing July 2010 of Ba3; -- US$40 million, 5-year term loan A facility of Ba3. * MEGA Brands Finco -- US$260 million 7-year term loan B facility of Ba3. The rating was last lowered in July 2007 due to poor results in 2006 and in early 2007. The new review is prompted by the fact that expectations of improvements in the latter half of 2007 have not materialized. Third quarter sales were down 8.8% versus the prior year mainly due to production delays in Asia and lower shipments of Magnetix products, and Gross Profit plummeted more than 60% due in part to inventory write-offs and adjustments. Mega reported an operating loss for the quarter of US$5.1 million versus a profit of US$26.4 million a year earlier. Moody's review will focus on the likelihood of a return to sustainable profitability in the near term. It will also revisit the current status of pending litigation, the issues around the company's self insurance for product liability for Magnetix products manufactured before May 1, 2006 and for incidents occurring after Dec. 1, 2006, and the likely timing and payout of the disputed Rose Art earn-out payment. The SGL-3 was affirmed based on Moody's continued expectation for adequate near-term liquidity for the company. Absent the Rose Art earn-out payment, which the company does not expect to make before 2009, MEGA Brands' liquidity is supported by balance sheet cash and availability under its $120 million revolver, offset by the seasonal nature of its cash flow which requires reliance on its bank facility, the potential for limited covenant cushion under its credit agreement over the medium term, and its limited alternative sources of liquidity. Based in Montreal, Canada, MEGA Brands Inc. -- http://www.megabrands.com/ -- (TSE:MB) is a distributor of construction toys, games & puzzles, arts & crafts and stationery. The company is headquartered in Montreal, Canada and has offices in Belgium, United Kingdom, Germany, France, Spain, Mexico, and Australia. The company had sales of over US$547 million in 2006. REALOGY CORP: Hires Richard Smith as Chief Executive Officer ------------------------------------------------------------ Realogy Corporation has appointed Richard A. Smith, as its chief executive officer, succeeding Henry R. Silverman in accordance with the Company's previously announced succession plan. Mr. Smith will now serve as Realogy's president and CEO. Mr. Silverman will become the non-executive chairman of Realogy's board of directors. The leadership transition will take effect immediately. Headquartered in Parsippany, New Jersey, Realogy Corporation (NYSE: H)-- http://www.realogy.com/-- is real estate franchisor and a member of the S&P 500. The company has a diversified business model that also includes real estate brokerage, relocation, and title services. Realogy's world-renowned brands and business units include CENTURY 21(R), Coldwell Banker(R), Coldwell Banker Commercial(R), ERA(R), Sotheby's International Realty(R), NRT Incorporated, Cartus, and Title Resource Group. Realogy has more than 15,000 employees worldwide. The company operates in Australia, Brazil and France. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 6, 2007, Standard & Poor's Ratings Services has lowered its ratings on Realogy Corp.; the corporate credit rating was lowered to 'B' from 'B+'. S&P said the rating outlook is stable. ============= G E R M A N Y ============= A.S. AUTO-SERVICE: Claims Registration Ends December 18 ------------------------------------------------------- Creditors of A.S. Auto-Service GmbH have until Dec. 18 to register their claims with court-appointed insolvency manager Hanns Poellmann. Creditors and other interested parties are encouraged to attend the meeting at 1:00 p.m. on Jan. 22, 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 Gera Hall 317 Rudolf-Diener-Str. 1 Gera 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: Hanns Poellmann Blankenburger Strasse 3 07318 Saalfeld Germany The District Court of Gera opened bankruptcy proceedings against A.S. Auto-Service GmbH on Oct. 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: A.S. Auto-Service GmbH Attn: Wolfgang von Nessen, Manager Beulwitzer Str. 9-11 07318 Saalfeld Germany ASAPP.DE GMBH: Claims Registration Ends December 18 --------------------------------------------------- Creditors of asapp.de GmbH i.L. have until Dec. 18 to register their claims with court-appointed insolvency manager Michael Pfeffer. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on Jan. 15, 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 Aschaffenburg Meeting Hall 5.103 Schlossplatz 5 63739 Aschaffenburg 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: Michael Pfeffer Kapuzinerplatz 1 63739 Aschaffenburg Germany Tel: 06021/386710 Fax: 06021/3867130 The District Court of Aschaffenburg opened bankruptcy proceedings against asapp.de GmbH i.L. on Oct. 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: asapp.de GmbH i.L. Sommerackerweg 1 63808 Haibach Germany BENQ CORP: Eyes Business Expansion in the Philippines ----------------------------------------------------- BenQ Corp. plans to expand its business in the Philippines, hoping to carve out a niche market first in LCD projectors and monitors, the Philippine Daily Inquirer reports. According to Lawrence Casiraya of the Inquirer, BenQ introduced in a media gathering last week its manager for the Philippines, Steve Lin, who assumed his post in June. In an interview with the paper, Mr. Lin said that the company has been focused on growing its LCD projector and monitor business since entering the market two years ago. "Based on market figures, we're now the No. 4 vendor in LCD projectors," Mr. Lin said, behind other vendors like InFocus and Toshiba. "This has also been our company's thrust in the region. We're trailing Epson right now in the LCD monitor market in Asia Pacific," Mr. Lin added. The report recounts that BenQ had earlier introduced laptops and digital cameras which, according to Mr. Lin, will be officially distributed sometime in 2008. At present, the Inquirer notes, BenQ has two local distributors and plans to appoint more to carry other products. Moreover, Mr. Lin said that once revenues hit more than PHP1 million a month, probably by the second quarter in 2008, the company will set up a local office. About BenQ Headquartered in Taiwan, Republic of China, BenQ Corp., Inc. -- http://www.benq.com/-- is principally engaged in manufacturing developing and selling of computer peripherals and telecommunication products. It is also a major provider of 3G handset, camera phones, and other products. The firm has operations in Mexico. In June 2007 the company announced that it will change its name to Qisda. BenQ Mobile GmbH & Co., the company's German-based wholly owned subsidiary, filed for insolvency in Munich on Sept. 29, 2006, after BenQ Corp.'s board decided to discontinue capital injection into the mobile unit in order to stem unsustainable losses. The collapse follows a year after Siemens sold the company to Taiwanese technology group BenQ. BenQ Mobile has lost market share against giant competitors. A Munich Court opened insolvency proceedings against BenQ Mobile GmbH & Co OHG on Jan. 1 after Mr. Prager failed to secure a buyer for the company by the Dec. 31, 2006 deadline. * * * As reported on Dec. 5, 2006, that Taiwan Ratings Corp., assigned its long-term twBB+ and short-term twB corporate credit ratings to BenQ Corp. The outlook on the long-term rating is negative. At the same time, Taiwan Ratings assigned its twBB+ issue rating to BenQ's existing NT$7.05 billion unsecured corporate bonds due in 2008, 2009, and 2010. The ratings reflect BenQ's continuing operating losses from its handset operations and high leverage, and the competitive nature and low profitability of the LCD monitor industry. BONFOTO GMBH: Claims Registration Period Ends Dec. 10 ----------------------------------------------------- Creditors of BONFOTO GmbH have until Dec. 10 to register their claims with court-appointed insolvency manager Alexander Hoepfner. Creditors and other interested parties are encouraged to attend the meeting on Dec. 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 Mannheim Hall 411 Schloss 68149 Mannheim 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. Alexander Hoepfner Feldbergstr. 45-47 68163 Mannheim Germany Tel: 0621/8109740 The District Court of Mannheim opened bankruptcy proceedings against BONFOTO GmbH on Oct. 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: BONFOTO GmbH Attn: Oliver Kuebe, Manager Reichenbachstr. 13 68309 Mannheim Germany FM PRODUCTION: Claims Registration Period Ends Dec. 11 ------------------------------------------------------ Creditors of fm production GmbH & Co. KG have until Dec. 11 to register their claims with court-appointed insolvency manager Ruediger Wienberg. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Jan. 22, 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 Chemnitz Hall 27 Fuerstenstrasse 21-23 09130 Chemnitz Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Ruediger Wienberg Michaelstrasse 71 09116 Chemnitz Germany Tel: (0371) 381770 Fax: (0371) 3817730 E-mail: chemnitz@hww-kanzlei.de The District Court of Chemnitz opened bankruptcy proceedings against fm production GmbH & Co. KG on Oct. 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: fm production GmbH & Co. KG Attn: Dr. Bernd Ernst Maier, Manager Goethestrasse 7 09119 Chemnitz Germany FUTURE IT: Claims Registration Ends December 11 ----------------------------------------------- Creditors of future IT & NET - systemhouse GmbH have until Dec. 11 to register their claims with court-appointed insolvency manager Dr. Nikolaus Schmidt. 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 Dessau Hall 123 Willy-Lohmann-Str. 33 Dessau 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 managers can be reached at: Dr. Nikolaus Schmidt Magdeburger Strasse 23 06112 Halle Germany Tel: 0345/2311111 Fax: 0345/2311199 The District Court of Dessau opened bankruptcy proceedings against future IT & NET - systemhouse GmbH on Oct. 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: future IT & NET - systemhouse GmbH Attn: Heinz Kueckelmann, Manager Otto-Lilienthal-Strasse 7 06796 Brehna Germany HAKO - ELEKTROTECHNIK: Claims Registration Ends December 17 ----------------------------------------------------------- Creditors of HAKO - Elektrotechnik GmbH have until Dec. 17 to register their claims with court-appointed insolvency manager Dr. Axel Kampmann. Creditors and other interested parties are encouraged to attend the meeting on Dec. 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 Arnsberg Meeting Hall 132 Eichholzstr. 4 59821 Arnsberg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Axel Kampmann Bronnerstrasse 7 44141 Dortmund Germany The District Court of Arnsberg opened bankruptcy proceedings against HAKO - Elektrotechnik GmbH on Oct. 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: HAKO - Elektrotechnik GmbH Attn: Erika Hackler, Manager Zum Fuerstenberg 16 59755 Arnsberg Germany HEMO BAUMONTAGEN: Claims Registration Period Ends Dec. 14 --------------------------------------------------------- Creditors of Hemo Baumontagen GmbH have until Dec. 14 to register their claims with court-appointed insolvency manager J. Oehler. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Jan. 22, 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 Gera Hall 317 Rudolf-Diener-Str. 1 Gera 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: J. Oehler Willy-Brandt-Platz 1 99084 Erfurt Germany The District Court of Gera opened bankruptcy proceedings against Hemo Baumontagen GmbH on Oct. 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hemo Baumontagen GmbH Attn: Gunter Heppner, Manager Oststrasse 11 04610 Meuselwitz Germany HUGO KLINGENMEIER: Claims Registration Ends December 17 ------------------------------------------------------- Creditors of Hugo Klingenmeier GmbH have until Dec. 17 to register their claims with court-appointed insolvency manager Ulrich Kaiser. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Jan. 15, 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 Aschaffenburg Meeting Hall 5.103 Schlossplatz 5 63739 Aschaffenburg 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: Ulrich Kaiser Theresienstr. 3 63741 Aschaffenburg Germany Tel: 06021/428221 Fax: 06021/428210 The District Court of Aschaffenburg opened bankruptcy proceedings against Hugo Klingenmeier GmbH on Oct. 22. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hugo Klingenmeier GmbH Neudorfer Str. 3 63936 Schneeberg Germany LIPSIA PROJEKTMANAGEMENT: Claims Registration Ends Dec. 12 ---------------------------------------------------------- Creditors of Lipsia Projektmanagement GmbH have until Dec. 12 to register their claims with court-appointed insolvency manager Ulrich Luppe. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on Jan. 7, 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 Dessau Hall 123 Willy-Lohmann-Str. 33 Dessau 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: Ulrich Luppe Hansering 9/10 06108 Halle Germany Tel: 0345/614070 Fax: 0345/6140710 E-mail: Kanzlei@luppe-rothe.de The District Court of Dessau opened bankruptcy proceedings against Lipsia Projektmanagement GmbH on Oct. 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Lipsia Projektmanagement GmbH Friedrich-Ebert-Str. 40 06366 Koethen Germany M + M SEEBLICK: Claims Registration Period Ends Dec. 10 ------------------------------------------------------- Creditors of M + M Seeblick GmbH have until Dec. 10 to register their claims with court-appointed insolvency manager Claus-Peter Langer. Creditors and other interested parties are encouraged to attend the meeting at 10:20 a.m. on Jan. 10, 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 Munich Meeting Hall 102 Infanteriestr. 5 80097 Munich 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: Claus-Peter Langer Herzog-Wilhelm-Str. 17 80331 Munich Germany Tel: 089/23 68 58-0 Fax: 089/26 03 44 0 The District Court of Munich opened bankruptcy proceedings against M + M Seeblick GmbH on Oct. 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: M + M Seeblick GmbH Waldfriedenstr. 55 85241 Hebertshausen Germany NOVAFLOR GMBH: Claims Registration Ends December 11 --------------------------------------------------- Creditors of Novaflor GmbH have until Dec. 11 to register their claims with court-appointed insolvency manager Mark Schuessler. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Jan. 22, 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 Darmstadt Hall 4.312 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 managers can be reached at: Dr. Mark Schuessler Bismarckstrase 4 69469 Weinheim Germany Tel: 06201-994424 Fax: 06201-994422 The District Court of Darmstadt opened bankruptcy proceedings against Novaflor GmbH on Oct. 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Novaflor GmbH Attn: Wolfgang Mohr, Manager Scharfenberg Strasse 9 64720 Michelstadt Germany OTK ORIENT: Claims Registration Period Ends December 13 ------------------------------------------------------- Creditors of OTK Orient Teppich Kontor Direktimport GmbH have until Dec. 13 to register their claims with court-appointed insolvency manager Eberhard Stock. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 17, 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 Duisburg Hall C205 Second Floor Kardinal-Galen-Strasse 124-132 47058 Duisburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Eberhard Stock Wilhelmshofallee 75 47800 Krefeld Germany The District Court of Duisburg opened bankruptcy proceedings against OTK Orient Teppich Kontor Direktimport GmbH on Oct. 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: OTK Orient Teppich Kontor Direktimport GmbH Attn: Ghorban Afshang, Manager Am Stadtwald 15 45219 Essen Germany RED HAT: Teams Up with Platform Computing to Offer HPC Solution --------------------------------------------------------------- Red Hat has inked an agreement with Platform Computing, the global leader in High Performance Computing infrastructure software, to jointly offer a new product, the Red Hat HPC Solution, that fully integrates Platform's Open Cluster Stack1 with Red Hat Enterprise Linux. The new offering provides users with an end-to-end solution with a range of tools necessary to deploy and manage an HPC cluster in a wide range of environments, from SMB to Enterprise, while offering competitive pricing and outstanding performance. Businesses are increasingly utilizing HPC clusters to gain a competitive edge; the new Red Hat HPC Solution allows users to deploy their HPC applications in a more cost-effective manner, while providing tools in a single, easy-to-deploy package. The Red Hat solution incorporates the operating system, device drivers, cluster installer, resource and application monitor and job scheduler for every node in the cluster. The integrated HPC software stack includes Red Hat Enterprise Linux, the world's leading open source operating system, designed to deliver maximum application performance using today's low-cost, industry-standard systems. The solution also incorporates the device drivers and interconnect support necessary for efficiently running a high-performance cluster, and also includes Platform's Lava-based job scheduler to rapidly schedule user workloads. All of the components, supported by Red Hat's global 24x7 enterprise-level services, are delivered in one product, reducing the complexity and time needed to set up and optimize an HPC cluster. "Platform's 15 years of expertise deploying high-performance clusters, combined with the performance and stability of Red Hat Enterprise Linux, provide a perfect technology match for customers looking for an HPC solution," said Paul Cormier, executive vice president, Worldwide Engineering at Red Hat. "This agreement also enables us to tailor our existing enterprise solutions for smaller-sized customers, so this new and rapidly growing HPC market can enjoy the benefits of open source software." "Platform is excited to partner with Red Hat to reach new markets for HPC solutions," said Songnian Zhou, CEO, Platform Computing. "Organizations from Enterprise to SMB will be able to adopt open source solutions that are fully supported and easy to use. This agreement supports Platform's strategy to enable organizations to improve time to results and reduce computing costs when deploying cluster and grid software solutions." The Red Hat HPC Solution has completed certification on a range of hardware platforms and will be available at the end of 2007. About Platform Computing Platform Computing -- http://www.platform.com/-- is a pioneer and the global leader in High Performance Computing infrastructure software. The company delivers integrated software solutions that enable organizations to improve time-to- results and reduce computing costs. Many of the world's largest companies rely on Platform for workload management and cluster and grid management. Platform has over 2,200 global customers and strategic relationships with Dell, HP, IBM, Intel, Microsoft, Red Hat and SAS, along with the industry's broadest support for HPC applications. Building on 15 years of market leadership, Platform continues to define the HPC market. About Red Hat Headquartered in Raleigh, North Carolina Red Hat, Inc. -- http://www.redhat.com/-- is an open source and Linux provider. Red Hat provides operating system software along with middleware, applications and management solutions. Red Hat also offers support, training, and consulting services to its customers worldwide and through top-tier partnerships. The company has offices in Singapore, Germany, and Argentina, among others. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 19, 2007, Standard & Poor's Ratings Services has revised its outlook on Red Hat Inc. to positive from stable and affirmed the ratings, including the 'B+' corporate credit rating. RTN-IMMOBILIEN GMBH: Claims Registration Period Ends Dec. 10 ------------------------------------------------------------ Creditors of RTN-Immobilien GmbH have until Dec. 10 to register their claims with court-appointed insolvency manager Dr. Sebastian Henneke. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 14, 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 Duisburg Hall C407 Fourth Floor Kardinal-Galen-Strasse 124-132 47058 Duisburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Sebastian Henneke Muelheimer Str. 100 47057 Duisburg Germany The District Court of Duisburg opened bankruptcy proceedings against RTN-Immobilien GmbH on Oct. 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: RTN-Immobilien GmbH Aktienstr. 25 - 53 45473 Muelheim an der Ruhr Germany T-C-H SERVICE: Claims Registration Period Ends December 18 ---------------------------------------------------------- The court-appointed insolvency manager for T-C-H Service GmbH & Co. KG, Dr. Frank Kreuznacht will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:30 a.m. on Dec. 18. The meeting of creditors and other interested parties will be held at: The District Court of Bad Hersfeld Hall 8 Amtsgerichtsgebaude Dudenstra�e 10 36251 Bad Hersfeld Germany The Court will also verify the claims set out in the insolvency manager's report at 10:15 a.m. on Jan. 29, 2008, at the same venue. Creditors have until Dec. 17 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Frank Kreuznacht Untermarkt 23 99974 Muehlhausen Germany Tel: 03601/88920 Fax: 03601/889211 E-mail: Rechtsanwaelte@dr-wiengarten.de The District Court of Bad Hersfeld opened bankruptcy proceedings against T-C-H Service GmbH & Co. KG on Oct. 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: T-C-H Service GmbH & Co. KG Attn: Florian Grotehans, Manager geboren 1982 Am Baumgarten 12 36251 Bad Hersfeld Germany =========== G R E E C E =========== COMVERSE TECH: Andre Dahan Assumes CEO Role for Subsidiary ---------------------------------------------------------- Comverse Technology Inc. reported a continuation of its organizational realignment, through which certain positions at Comverse Technology, Inc. and its wholly owned subsidiary Comverse, Inc. have been consolidated, creating a more agile, cross-functional structure. Accordingly, Comverse Technology's President and Chief Executive Officer Andre Dahan will assume the additional position of President and Chief Executive Officer, Comverse, Inc. Mr. Dahan said, "We have been evolving from a holding company structure, and toward a flatter, more functionalized global organization in which senior management is closer to our customers, and decisions can be made more efficiently." The consolidation represents another step in creating a more functional and agile organization, better able to serve customers with greater responsiveness. This year, Comverse Technology has strengthened its senior management team through the addition of: -- John Bunyan, Chief Marketing Officer; -- Lance Miyamoto, Executive Vice President, Global Human Resources; -- Cynthia Shereda, Executive Vice President, General Counsel and Corporate Secretary; and -- Lauren Wright, Senior Vice President, Business Operations and Planning. Each of these new executives holds cross-functional responsibilities at both Comverse Technology, Inc., and Comverse, Inc. With this realignment, Yaron Tchwella, the current President of Comverse, Inc., will be leaving the company following a transition period. "I'd like to thank Yaron for his contributions to the company, and in particular for his role in helping to design and launch our organizational transition, while meeting business goals and objectives during his time as President," Mr. Dahan added. About Comverse Technology Comverse Technology, Inc., -- http://www.cmvt.com/-- (Pink Sheets: CMVT.PK) through its Comverse, Inc. subsidiary, provides software and systems enabling network-based multimedia enhanced communication and billing services. The company's Total Communication portfolio includes value-added messaging, personalized data and content-based services, and real-time converged billing solutions. Over 500 communication and content service providers in more than 130 countries use Comverse products to generate revenues, strengthen customer loyalty and improve operational efficiency. Other Comverse Technology subsidiaries include: Verint Systems (VRNT.PK), which provides analytic software-based solutions for communications interception, networked video security and business intelligence; and Ulticom (ULCM.PK), which provides service enabling signaling software for wireline, wireless and Internet communications. Comverse has offices all over the world, including Australia, Finland, Greece, Indonesia, Malaysia, and the Philippines. * * * As reported in the Troubled Company Reporter on Feb. 5, 2007, Standard & Poor's Ratings Services kept its 'BB-' corporate credit and senior unsecured debt ratings on New York-based Comverse Technology Inc. on CreditWatch with negative implications, where they were placed on March 15, 2006. NAVIOS MARITIME: Prices Initial Public Offering at US$20/Share -------------------------------------------------------------- Navios Maritime Holdings Inc. has announced that its subsidiary, Navios Maritime Partners L.P. has priced the initial public offering of 10,000,000 of the Partnership's common units, representing a 54.1% limited partner interest in the Partnership, at US$20.00 per unit. The Offering will increase to 11,500,000 common units if the underwriters exercise in full their over-allotment option. Concurrent with the Offering, Amadeus Maritime S.A., a corporation owned by the Navios Maritime Partners Chairperson and Chief Executive Officer, Angeliki Frangou, will acquire 500,000 common units, representing a 2.7% limited partner interest in the Partnership, at the initial public offering price. Navios Maritime owns the remaining interests in the Partnership, including subordinated units, incentive distribution rights and the 2.0% general partner interest. The common units have been approved for listing on the New York Stock Exchange, subject to official notice of issuance, under the symbol "NMM." Merrill Lynch & Co. and J.P. Morgan Securities Inc. acted as joint book runners and representatives of the underwriters, who will include Cantor Fitzgerald & Co., S. Goldman Advisors LLC and DVB Capital Markets LLC, in connection with the Offering. Navios Maritime Partners L.P., (NYSE: NMM), a Marshall Islands limited partnership, is an international owner and operator of drybulk carriers recently formed by Navios. About Navios Maritime Holdings Inc. Navios Maritime Holdings Inc. (Nasdaq: BULK, BULKU, BULKW) (NYSE: NM) -- http://www.navios.com/-- is a vertically integrated global seaborne shipping company, specializing in the worldwide carriage, trading, storing, and other related logistics of international dry bulk cargo transportation. The company also owns and operates a port/storage facility in Uruguay and has in-house technical ship management expertise. It maintains offices in Piraeus, Greece, South Norwalk, Connecticut and Montevideo, Uruguay. * * * As reported in the Troubled Company Reporter-Latin America on Apr. 5, 2007, in connection with Moody's Investors Service's implementation of its new Probability-of-Default and Loss-Given- Default rating methodology for the existing non-financial speculative-grade corporate issuers in Europe, Middle East and Africa, the rating agency confirmed its B1 Corporate Family Rating for Navios Maritime Holdings Inc. The implementation of the LGD methodology in EMEA follows the introduction of the methodology in September 2006. Most of the rating actions Moody's confirmed relate to senior secured loans. Projected Old POD New POD LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- Senior Unsecured Regular Bond/ Debenture Due 2014 B2 B3 LGD5 80% ============= H U N G A R Y ============= SUN MICROSYSTEMS: Enters into Definitive Pact Acquiring Vaau ------------------------------------------------------------ Sun Microsystems Inc. has entered into a definitive agreement with Vaau Inc. pursuant to which Sun will acquire Vaau, a premier provider of Enterprise Role Management and identity compliance solutions. As regulatory requirements continue to tighten, enterprises must find new ways to reduce auditing costs. By leveraging ERM, organizations can reduce these costs by discovering, defining, and managing user access with a common vocabulary that links business and IT. Vaau's RBACxTM solution combined with the provisioning and identity auditing capabilities of Sun's identity management portfolio powered by the Solaris(TM) 10 Operating System will enable organizations to streamline the provisioning process and significantly reduce the cost of auditing. "This announcement further underscores Sun's leadership in the high growth identity audit and compliance categories, adding both a market-leading solution and proven implementation services to our portfolio," said Jim McHugh, vice president of Marketing, Software Infrastructure, Sun Microsystems. "As a leader in enterprise role management and identity certification, Vaau provides an integrated set of capabilities to automate and enforce internal security controls that will further enhance Sun's ability to provide comprehensive solutions to our customers across the full spectrum of governance, risk and compliance." Recognized as a global leader in identity management, Sun manages billions of user identities worldwide for the world's largest companies spanning a variety of industries. The definitive agreement to acquire Vaau Inc. is subject to customary closing conditions and is expected to be completed during Sun's fiscal third quarter 2008, which begins on Dec. 31, 2007. The terms of the deal were not disclosed as the transaction is immaterial to Sun's earnings per share. About Vaau Inc. Headquartered in Torrance, California, Vaau Inc. -- http://www.vaau.com/-- is a premier provider of enterprise role management and identity compliance solutions for global Fortune 500 companies. Vaau's award-winning solutions and methodology enable organizations to proactively enforce internal security control policies and automate critical identity management processes. Through strategic relationships with identity management vendors such as Computer Associates, Hewlett-Packard, IBM, Novell, Oracle, and Sun Microsystems, Vaau offers a unique, integrated user-management solution that includes role engineering, role management, and identity compliance. Vaau's flagship solution, RBACxTM, allows enterprises to manage the lifecycle of identities from role definition to the ongoing and continuous process of auditing and certifying users' accessibility rights to company resources and information. About Sun Microsystems Headquartered in Santa Clara, California, Sun Microsystems Inc. (NASDAQ: SUNW) -- http://www.sun.com/-- provides network computing infrastructure solutions that include computer systems, data management, support services and client solutions and educational services. It sells networking solutions, including products and services, in most major markets worldwide through a combination of direct and indirect channels. Sun Microsystems conducts business in 100 countries around the globe, including Brazil, Argentina, India, Hungary, United Kingdom, among others. * * * Sun Microsystems Inc. carries Moody's "Ba1" probability of default and long-term corporate family ratings with a stable outlook. The ratings were placed on Sept. 22, 2006, and Sept. 22, 2005, respectively. Sun Microsystems also carries Standard & Poor's "BB+" long-term foreign and local issuer credit ratings, which were placed on March 5, 2004, with a stable outlook. ============= I R E L A N D ============= INTERNATIONAL SECURITIES: Scraps Bond Sale & Delays Results ----------------------------------------------------------- International Securities Trading Corporation Plc disclosed a number of matters in relation to part of its loan portfolio, its September 2007 financial results and its funding arrangements. The turmoil experienced in financial markets since July 2007 is unprecedented, and has represented one of the most difficult and challenging market environments experienced by the banking sector over the past 30 years. Against this backdrop, ISTC's high quality bank capital loan portfolio and conservative funding, capital and liquidity policies had put the company in a position to weather the market disruption, albeit with negative consequences, including an ongoing reduction in its liquidity position. In addition to its bank capital portfolio, ISTC has also invested a total of US$305 million (around EUR210 million) in Structured Investment Vehicle (SIV) capital notes, where the SIV's are sponsored and managed by leading international banks. The SIV assets represent 7% of ISTC's loan portfolio. All of these SIV assets were either downgraded, or placed on review for possible downgrade, by Moody's Investor Services on Nov. 8, 2007. These rating actions have had a number of consequences for ISTC: -- ISTC believes that it will now have difficulty in retaining the existing financing or alternatively obtaining new financing for the SIV capital note portfolio; -- prior to the rating announcement, the Board of ISTC was satisfied that it would be appropriate to value the SIV assets in its financial statements at cost. The Board now believes that a market value approach is warranted. Consequently it will be necessary to take a provision in its September 2007 financial statements of not less than EUR70 million, based on the underlying net asset value of the SIV capital notes; -- the finalization and publication of the financial results for the year ended Sept. 15, 2007, will, the company believes, be delayed by a matter of weeks, while a thorough valuation of the SIV capital note portfolio is completed. Following the deterioration in the credit rating of the SIV portfolio, DBRS announced on Nov. 9, 2007, that it had downgraded the senior rating of ISTC to BB from BBB and the subordinated rating of ISTC from BBB (low) to B. Given the uncertainty to ISTC's funding position precipitated by the SIV credit rating action, the company now intends to enter into discussions with its providers of finance with the objective of making appropriate amendments to their respective financing terms. To assist in these discussions, ISTC has appointed Hawkpoint Partners Limited to act as its financial adviser. Pending the outcome of these negotiations, ISTC has decided to defer certain payments under financing obligations. As the publication of the 2007 financial results has been delayed, ISTC has decided to stop marketing of the convertible bond issue which it launched on Oct. 26, 2007. ISTC has asked Goodbody Stockbrokers to suspend the operation of the grey market in ISTC's ordinary shares with immediate effect. Headquartered in Dublin, Ireland, -- International Securities Trading Corporation Plc -- http://www.istcorporation.com/-- provides investment grade Tier 1 and Tier II hybrid bank capital via private placement issues and primary market participation. Acting as principal in private placement transactions, ISTC is uniquely positioned to offer bespoke solutions and certainty of execution to issuers. SCOTTISH RE: Declares Perpetual Preferred Share Cash Dividend ------------------------------------------------------------- The Board of Directors of Scottish Re Group Limited declared a cash dividend of US$0.4531 per Perpetual Preferred Share outstanding to be paid on Jan. 15, 2008 to Perpetual Preferred Share shareholders of record as of the close of business on Jan. 2, 2008. About Scottish Re Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. On June 30, 2007, Scottish Re reported total assets of US$13.6 billion and shareholder's equity of US$1.2 billion. * * * As of Nov. 15, 2007, Scottish Re carries B+ Local Issuer Credit rating from Standard & Poor's. S&P says the outlook is negative. Scottish Re carries BB- Issuer Default and B Preferred Stock ratings from Fitch. Fitch says the outlook is stable. SCOTTISH RE: Moody's Holds (P)Ba3 Rating on Sr. Unsecured Shelf --------------------------------------------------------------- Moody's Investors Service affirmed the ratings of Scottish Re Group Limited (senior unsecured shelf of (P)Ba3) and changed the outlook to negative from stable. The change in outlook applies to the company's debt ratings and the Baa3 insurance financial strength ratings of the company's core insurance subsidiaries, Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re Inc. All of the aforementioned ratings were affirmed. Moody's says that the change in outlook was driven primarily by adverse experience on the company's substantial exposure to subprime and Alt-A investments. As of the end of the third quarter, Scottish Re had about US$3 billion of subprime ABS and Alt-A holdings, which represented 27% of its total investment portfolio. For the third quarter of 2007, the company reported a net loss of US$109.5 million, driven by US$102 million in realized losses on investments, including US$95 million of subprime-related losses. According to Scott Robinson, Moody's vice president & senior credit officer, "Notwithstanding the relatively high quality of investments, the magnitude of the company's subprime and Alt-A exposure makes the company susceptible to further losses, especially in a severe downside scenario. While its operating income was in line with our expectations, credit challenges in the investment portfolio together with continued financial reporting control issues may make it more difficult for Scottish Re to regain the confidence of cedants and write meaningful amounts of new business." Moody's notes that although much of the subprime ABS and Alt-A exposure (US$2.3 billion) resides in non-recourse securitization vehicles the company has sponsored, the company's substantial equity investments in these securitizations would be further eroded should the investment holdings experience additional realized losses. As further default experience on recent vintages of subprime and Alt-A investments emerges, Moody's will continue to evaluate the impact of potential ranges of investment losses on the company's financial condition. These ratings were affirmed, with the outlook changed to negative from stable: Scottish Re Group Limited: -- Senior unsecured shelf of (P)Ba3; -- subordinate shelf of (P)B1; -- junior subordinate shelf of (P)B1; preferred stock of B2; and -- preferred stock shelf of (P)B2 Scottish Holdings Statutory Trust II: -- preferred stock shelf of (P)B1 Scottish Holdings Statutory Trust III: -- preferred stock shelf of (P)B1 Scottish Annuity & Life Insurance Company (Cayman) Ltd.: -- IFS rating of Baa3 Premium Asset Trust Series 2004-4: -- senior secured debt of Baa3 Scottish Re Inc.: -- insurance financial strength of Baa3 Stingray Pass-Through Certificates: -- Baa3 (based on IFS rating of SALIC) On August 22, Moody's affirmed Scottish Re's ratings and changed the outlook to stable from positive. The rating action followed the company's disclosure of sizable holdings of subprime ABS and Alt-A holdings in its investment portfolio. Scottish Re Group Limited is a Cayman Islands company with principal executive offices located in Bermuda. On Sept. 30, 2007, Scottish Re reported total assets of US$13.4 billion and shareholder's equity of US$869 million. Moody's insurance financial strength ratings are opinions of the ability of insurance companies to repay punctually senior policyholder claims and obligations. ========= I T A L Y ========= ALITALIA SPA: Chairman to Recommend Buyer by Nov. 23 ---------------------------------------------------- Alitalia S.p.A. chairman Maurizio Prato will recommend a buyer for the Italian government's 49.9% stake by Nov. 23, 2007, Alessandro Torello of Bloomberg News reports, citing Italian Transport Minister Alessandro Bianchi. As reported in the TCR-Europe on Oct. 22, 2007, Mr. Prato told the Italian parliament that he will recommend an industrial buyer for Italy's stake within the first ten days of November, after which the government will then decide how to finalize the sale. As previously reported in the TCR-Europe, Alitalia decided to open talks, through the financial advisor Citi and industrial advisor Roland Berger, with: -- OAO Aeroflot, -- Air France-KLM, -- AP Holding S.p.A., -- Cordata Baldassarre, -- Deutsche Lufthansa AG, -- TPG Capital. Alitalia, however, has concluded that Cordata Baldassarre's bid is "no longer compatible" to its planned stake sale. TPG Capital, meanwhile, has informed it was unable to finalize an Italian-led consortium, but will continue to follow the developments of the sale. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. DANA CORP: Wants to Settle Asbestos Claims for US$2 Million ----------------------------------------------------------- Dana Corp. and its debtor-affiliates ask permission from the U.S. Bankruptcy Court for the Southern District of New York to enter into settlement agreements with the Asbestos Personal Injury Claimants. Asbestos Litigation The Debtors have been named as defendants in a number of lawsuits related to the Debtors' sale of certain automotive gaskets containing asbestos in an encapsulated form and the alleged exposure of people to asbestos as a consequence of contact with these gaskets, Corinne Ball, Esq., at Jones Day, in New York, tells the Court. According to the available data as of June 30, 2007, there were approximately 150,000 pending asbestos-related personal injury claims against the Debtors, Ms. Ball elaborates. Ms. Ball points out that Dana has demonstrated in various proceedings that their gaskets could be and were used without releasing hazardous volumes of asbestos fibers. The Debtors have also defended Asbestos Personal Injury Claims successfully on the ground that exposure to chrysotile asbestos, the type of fiber incorporated into the gaskets, is generally insufficient to cause mesothelioma, an asbestos-related illness, Ms. Ball continues. According to Ms. Ball, the magnitude of asbestos litigation has declined since the wave of asbestos-related bankruptcies in 2000-2003, hence, the Debtors anticipate that, for the foreseeable future, both the number of claims that the amount that the Debtors will spend to defend and resolve cases will generally remain at low levels. Settlement Agreement The Debtors have continued to entertain and negotiate potential settlements withs several counsel for the Asbestos Personal Injury Claimants. As a result of these negotiations, Ms. Ball asserts, the Debtors have determined that it is in the best interests of the their estates to enter into the settlement agreements. Under the settlement agreements, the Debtors are: (a) resolving certain Asbestos Personal Injury Claims that had been filed as lawsuits through March 2, 2006; and (b) providing a mechanism for addressing future cases that may be brought by the Tort Attorneys. The settlement agreements, among other things, require the Asbestos Personal Injury Claimants to provide medical documentation of their illnesses, and evidence of their exposure to asbestos-containing products manufactures, sold, or distributed by Dana, according to Ms. Ball. She adds that the claimants must also submit release to qualify for payment of their asbestos personal injury claims. Ms. Ball tells the Court that the Debtors' estimate on account of the settlements would be approximately $2,000,000. The Debtors say that payments will be partially reimbursed by their insurers. "Dana believes that the amounts to be paid to the Asbestos Personal Injury Claimants under the Settlement Agreements are reasonable and wholly con