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 Monday, November 19, 2007, Vol. 8, No. 229 Headlines A U S T R I A CANLI LLC: Claims Registration Period Ends Dec. 5 FRIEDRICH WAGNER: Vienna Court Orders Business Closure G. WALLENBECK: Claims Registration Period Ends Dec. 6 HANS HASLINGER: Claims Registration Period Ends Dec. 4 NOWAK DACHSANIERUNG: Claims Registration Period Ends Dec. 3 SOPLEX BAU: Vienna Court Orders Business Shutdown TANKSTELLEN-U.KFZ-SERVICEBETRIEB: Claims Filing Ends Dec. 3 WWI BETEILIGUNG: Claims Registration Period Ends Dec. 6 D E N M A R K POLYONE CORP: Buys GLS Corp. as Part of Specialization Strategy F I N L A N D QUEBECOR WORLD: Considers Refinancing to Retire Some Loans F R A N C E MYLAN INC: Moody's Rates New Secured Credit Facilities at B1 G E R M A N Y ALERIS INT'L: Earns US$3.5 Million in Third Quarter 2007 CHRYSLER LLC: To Donate US$150,000 to NextEnergy's Fuel Testings COCO COLOR: Claims Registration Ends December 21 CUBITE MOBILE: Claims Registration Ends December 21 GASTRO ITALIA: Claims Registration Ends December 18 GERHARD MISCHE: Claims Registration Period Ends Nov. 20 GT HOLZ: Claims Registration Period Ends Nov. 26 KABELTRASSENBAU-MONTAGE: Claims Registration Period Ends Dec. 21 MHS FLIESEN: Claims Registration Ends December 20 PLASS BAUSTOFFHANDELS: Claims Registration Period Ends Nov. 19 PORTFOLIO GREEN: Moody's Junks EUR4 Mln Class G Secured Notes PROJEKT HAUS: Claims Registration Period Ends Dec. 21 SKROTZKI TRANSPORTE: Claims Registration Period Ends Dec. 24 THEATER IN CRONENBERG: Claims Registration Period Ends Nov. 20 USOX-ISOLIERUNGEN GMBH: Claims Registration Period Ends Dec. 21 G R E E C E FAGE DAIRY: Moody's May Cut B1 Ratings After Review I R E L A N D TREES S.A.: Fitch Rates EUR150 million Loan at BB+ K A Z A K H S T A N BSB STROY-MONTAGE: Proof of Claim Deadline Slated for Dec. 14 CRIS SERVICE: Creditors Must File Claims Dec. 12 EXPRESS SNAB+: Claims Filing Period Ends Dec. 18 HRANNOYE AGENSTVO: Creditors' Claims Due on Dec. 12 INVESTA NORD: Claims Registration Ends Dec. 12 JEMIS FRUIT: Proof of Claim Deadline Slated for Dec. 18 KOS-NIK LLP: Creditors Must File Claims Dec. 12 MBS LTD: Claims Filing Period Ends Dec. 12 OZEN CAPITAL: Creditors' Claims Due on Dec. 12 STEPNOGORSKSPETSMONTAGE LLP: Claims Registration Ends Dec. 12 * Fitch Affirms Almaty City's Ratings at BB+ with Stable Outlook K Y R G Y Z S T A N AFINA TRAVEL: Creditors Must File Claims by December 14 L I T H U A N I A BANKAS SNORAS: Fitch Affirms IDR at BB- with Stable Outlook N E T H E R L A N D S DEMIR-HALK BANK: Moody's Assigns Ba1/NP Deposit Ratings HARBOURMASTER CLO 10: Fitch Rates EUR9 million Class B2 at BB N O R W A Y GEOKINETICS INC: Posts US$1.5 Million Net Loss in Third Quarter R U S S I A AZNAKAEVSKIJ OJSC: Claims Registration Period Ends Jan. 10, 2008 BRISTOW GROUP: Completes US$2.5 Mln Buyout of Vortex Helicopters DRAGON&LION CJSC: Creditors Must File Claims by Jan. 10, 2008 KRASNAYA KUZNITSA: Asset Sale Slated for Dec. 17 KUVSHINSKAYA LLC: Creditors Must File Claims by Dec. 10 LIPETSKCOMBANK: S&P Lowers Ratings to B- on Low Capitalization MASTER BANK: Concentrated Loans Cue Fitch's B IDR POCHINKOVSKIJ OJSC: Creditors Must File Claims by Dec. 10 SAINT PETERSBURG: Equity Increase Cues Fitch's Positive Outlook TENLIN OJSC: Share in the Capital Sale Slated for Dec. 12 TMK OAO: Shareholders' Meeting Slated for December 25 TMK OAO: Constructing New Premium Quality Finishing Mill TMK OAO: Hikes Premium Oil and Gas Pipe Production S P A I N AYT CAIXA: Moody's Puts Junk Ratings on Series E1 & E2 Notes FONCAIXA FTGENCAT 5: S&P Junks EUR26.5 Million Class D Notes U K R A I N E CENTER-TURBO LLC: Creditors Must File Claims by November 22 DELTA-VAN LLC: Creditors Must File Claims by November 22 MACROPROM-UKRAINE LLC: Creditors Must File Claims by November 22 PROSTHETIC APPLIANCE: Creditors Must File Claims by November 22 RUMO-UKRAINE LLC: Claims Filing Bar Date Set November 22 SOSNITSAAL AGRICULTURAL: Creditors Must File Claims by Nov. 22 VICTORY LLC: Creditors Must File Claims by November 22 U N I T E D K I N G D O M BIRCHWOOD LEISURE: C. B. Barrett Leads Liquidation Procedure BRAKE BROS: S&P Withdraws B Ratings at Company's Request BRITISH ENERGY: S&P Cuts Ratings to BB on Repeated Outages CABLE & WIRELESS: Unveils Management Changes at Int'l. Business CABLE & WIRELESS: Earns GBP134 Mln in Six Months Ended Sept. 30 CGL DEVELOPMENTS: Names Neil Francis Hickling Liquidator CHICCO D'ORO: Appoints David Elliott as Liquidator FORD MOTOR: UAW Employees Ratify Healthcare MOU and National CBA FORD MOTOR: Johnson Controls Inks MOU to Buy Saline ACH Plant INTERNATIONAL POWER: S&P Affirms BB- Ratings; Outlook Revised ISLE OF CAPRI: Buying IoC-Black Hawk's 43% Stake for US$64.6 Mln LADBROKES PLC: Profit Up 84% in Four Months Ended Oct. 31, 2007 MORTGAGE FINANCE 7: Fitch Rates Class C Notes at BB REMY WORLDWIDE: Court Okays Shearman & Sterling as Lead Counsel REMY WORLDWIDE: Bankruptcy Court Okays YCS&T as Delaware Counsel REMY WORLDWIDE: Court Okays Greenberg Traurig as Special Counsel UK CONTRACTING: Brings In Liquidators from Baker Tilly VIRGIN MEDIA: S&P Affirms B+ Ratings on Third-Quarter Results VONAGE HOLDINGS: To Pay Verizon US$117.5 Mln Over Patent Dispute VONAGE HOLDINGS: Sept. 30 Bal. Sheet Upside-Down by US$62.9 Mln * BOND PRICING: For the Week Nov. 12 to Nov. 16, 2007 ********* ============= A U S T R I A ============= CANLI LLC: Claims Registration Period Ends Dec. 5 ------------------------------------------------- Creditors owed money by LLC CANLI (FN 285863m) have until Dec. 5 to file written proofs of claim to court-appointed estate administrator Eva Wexberg at: Dr. Eva Wexberg c/o Dr. Walter Kainz Gusshausstrasse 23 1040 Vienna Austria Tel: 505 88 31 Fax: 505 94 64 E-mail: kanzlei@kainz-wexberg.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Dec. 19 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1707 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 16 (Bankr. Case No. 2 S 141/07h). Walter Kainz represents Dr. Wexberg in the bankruptcy proceedings. FRIEDRICH WAGNER: Vienna Court Orders Business Closure ------------------------------------------------------ The Trade Court of Vienna entered Oct. 17 an order closing the business of LLC Friedrich Wagner & Sohn & Co KG (FN 9410p). Court-appointed estate administrator Eberhard Wallentin recommended the business closure after determining that the continuing operations would reduce the value of the estate. The estate administrator can be reached at: Dr. Eberhard Wallentin Porzellangasse 4-6 1090 Vienna Austria Tel: 313 74-0 Fax: 313 74-80 E-mail: office@ksw.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 12 (Bankr. Case No 5 S 115/07g). G. WALLENBECK: Claims Registration Period Ends Dec. 6 ----------------------------------------------------- Creditors owed money by KEG G. Wallenbeck (FN 247573d) have until Dec. 6 to file written proofs of claim to court-appointed estate administrator Andrea Prochaska at: Mag. Andrea Prochaska Wassergasse 33/12 1030 Vienna Austria Tel: 718 77 50 Fax: 718 77 50 15 E-mail: anwalt@andrea-prochaska.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 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. 18 (Bankr. Case No. 5 S 124/07f). HANS HASLINGER: Claims Registration Period Ends Dec. 4 ------------------------------------------------------ Creditors owed money by LLC Hans Haslinger - Internationale Transporte (FN 121781s) have until Dec. 4 to file written proofs of claim to court-appointed estate administrator Guenther Grassner at: Dr. Guenther Grassner Suedtirolerstr. 4-6 4020 Linz Austria Tel: 070770815 Fax: 070770816 E-mail: lawfirm@gltp.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Dec. 18 for the examination of claims. The meeting of creditors will be held at: The Land Court of Linz Hall 522 Fifth Floor Linz Austria Headquartered in Traun, Austria, the Debtor declared bankruptcy on Oct. 18 (Bankr. Case No. 38 S 53/07h). NOWAK DACHSANIERUNG: Claims Registration Period Ends Dec. 3 ----------------------------------------------------------- Creditors owed money by KEG NOWAK Dachsanierung (FN 222185v) have until Dec. 3 to file written proofs of claim to court- appointed estate administrator Georg Freimueller at: Dr. Georg Freimueller Alser Strasse 21 1080 Vienna Austria Tel: 406 05 51 Fax: 406 96 01 E-mail: kanzlei@jus.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Dec. 17 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1609 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 16 (Bankr. Case No. 38 S 55/07a). SOPLEX BAU: Vienna Court Orders Business Shutdown ------------------------------------------------- The Trade Court of Vienna entered Oct. 17 an order shutting down the business of LLC Soplex Bau & Projektmanagement (FN 282872p). Court-appointed estate administrator Christof Stapf 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. Christof Stapf c/o Mag. Michael Neuhauser Esslinggasse 7 1010 Vienna Austria Tel: 90 333 Fax: 90 333 44 E-mail: wien@snwlaw.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 5 (Bankr. Case No 6 S 129/07y). Michael Neuhauser represents Dr. Stapf in the bankruptcy proceedings. TANKSTELLEN-U.KFZ-SERVICEBETRIEB: Claims Filing Ends Dec. 3 ----------------------------------------------------------- Creditors owed money by LLC Tankstellen-u.KFZ-Servicebetrieb J.Schneider (FN 96157h) have until Dec. 3 to file written proofs of claim to court-appointed estate administrator Ilse Korenjak at: Dr. Ilse Korenjak Gusshausstrasse 6 1040 Vienna Austria Tel: 512 21 02 Fax: 512 21 02-20 E-mail: office@buresch-korenjak.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:50 a.m. on Dec. 17 for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1609 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 16 (Bankr. Case No. 38 S 56/07y). WWI BETEILIGUNG: Claims Registration Period Ends Dec. 6 ------------------------------------------------------- Creditors owed money by LLC WWI Beteiligung (FN 192284x) have until Dec. 6 to file written proofs of claim to court-appointed estate administrator Susanne Fruhstorfer at: Dr. Susanne Fruhstorfer c/o Dr. Andrea Fruhstorfer Seilerstatte 17 1010 Vienna Austria Tel: 512 57 76 Fax: 512 57 76 50 E-mail: office@fg-lawyers.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 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. 16 (Bankr. Case No. 5 S 122/07m). Andrea Fruhstorfer represents Dr. Susanne Fruhstorfer in the bankruptcy proceedings. ============= D E N M A R K ============= POLYONE CORP: Buys GLS Corp. as Part of Specialization Strategy --------------------------------------------------------------- PolyOne Corporation has signed a definitive agreement to acquire GLS Corporation. Terms of the pending transaction were not disclosed. However, PolyOne expects that the acquisition will be slightly accretive to earnings in the first year. Consummation of the transaction is subject to the satisfaction or waiver of customary closing conditions. The acquisition of GLS demonstrates PolyOne's specialization strategy focused on technical innovation, new-product launches, speed to market, and long-term customer alliances rooted in problem solving and value creation. GLS is known for difficult-to-develop specialty compounds and rapid turnaround on customer requests, with a research and development department that operates around the clock. The acquisition of GLS also will provide PolyOne access to new customers in specialized, high-growth markets such as health care and electronics. PolyOne has targeted these markets for expansion and believes there are additional cross-selling opportunities. Moreover, the two companies' global footprints are highly complementary. "GLS is a very important strategic acquisition and the kind of company that we have been carefully seeking to become a significant part of PolyOne's business portfolio," Stephen D. Newlin, chairman, president and chief executive officer, said. "We are delighted to welcome the GLS employees and customers to the PolyOne family," Mr. Newlin stated. "The GLS management team has built a terrific brand and is a customer centric growth company. Its people and technology will be valuable additions to the PolyOne team." "Combining GLS's technological capabilities with PolyOne's global infrastructure and commercial presence uniquely positions us to capitalize on the expanding TPE market," Mr. Newlin added. "GLS is a great addition to the global Engineered Materials business portfolio," Craig Nikrant, PolyOne's vice president and general manager of PolyOne's North American Engineered Materials said. "This acquisition will accelerate the specialization strategy for our global Engineered Materials business and will decisively shift our portfolio as we continue our aggressive evolution into a specialty solutions provider of engineering thermoplastics," Mr. Nikrant related. "The acquisition of GLS, coupled with last year's dedication of our US$10 million specialties compounding plant, clearly demonstrates our commitment to our specialization strategy." "We are delighted to join forces with PolyOne and become a key component in its strategic evolution," Dan Dague, GLS president, said. "We were impressed with PolyOne's management, its strategic vision and its corporate philosophies, and believe the combination will result in a new organization that is even stronger and better poised for future success." Bear, Stearns & Co. Inc. was PolyOne's financial advisor on the GLS acquisition and Jones Day was outside counsel. About GLS Corporation Headquartered in McHenry, Illinois, GLS Corporation �- http://www.glscorp.com/-- is a privately-held company owned by the Dehmlow family that provides specialty thermoplastic elastomer compounds for consumer and medical applications. The company serves more than 1,200 customers worldwide. With approximately 200 employees, GLS supports its customers with manufacturing facilities in Illinois and Suzhou, China. About PolyOne Corp. Headquartered in northeast Ohio, PolyOne Corporation (NYSE: POL) -- http://www.polyone.com/ -- is a provider of specialized polymer materials, services and solutions. The company maintains operations in China, Colombia, Thailand, Singapore, Belgium, Denmark, France, the United Kingdom, among others. * * * Moody's Investor Services placed PolyOne Corporation's senior unsecured debt, long term corporate family and probability of default ratings at 'B1' in July 2007. The ratings still hold to date with a stable outlook. ============= F I N L A N D ============= QUEBECOR WORLD: Considers Refinancing to Retire Some Loans ---------------------------------------------------------- Quebecor World Inc. disclosed a refinancing plan pursuant to which it intends to concurrently: (i) offer approximately CDNUS$250 million of its equity shares, consisting of a public offering of Subordinate Voting Shares in Canada and the United States for contemplated gross proceeds to the company of approximately CDNUS$185 million (US$191 million) or approximately CDNUS$213 million (US$220 million) if an over-allotment option granted to the underwriters involved is exercised in full; well as an issuance on a private placement basis in Canada to Quebecor Inc., the company's controlling shareholder, of a combination of Multiple Voting Shares and Subordinate Voting Shares for an aggregate amount of approximately CDNUS$65 million or US$67 million) on the same terms as the Public Equity Offering, in order to allow Quebecor Inc. to maintain the level of its current economic interest in Quebecor World; (ii) offer on a private placement basis an aggregate of US$500 million of new debt securities, consisting of: (1) new senior unsecured notes of the company in an aggregate amount of approximately US$400 million, and (2) new senior unsecured convertible debentures in an aggregate amount of approximately US$100 million; and (iii) amend the company's credit facilities, pursuant to which: (a) the commitment of the company's syndicate of lenders would be reduced to US$375 million; (b) the maturities of such facilities would be extended by one year to January 2010; and (c) the company would be provided with greater financial flexibility under its covenants. The Equity Offering, the Senior Note Offering and the Convertible Debenture Offering are conditional upon one another and the Credit Facilities Amendment is conditional on the completion of the Equity Offering, the Senior Note Offering and the Convertible Debenture Offering. The net proceeds of the Senior Note Offering and the Convertible Debenture Offering and a portion of the net proceeds of the Equity Offering will be used to repay indebtedness under the company's credit facilities and the company intends to use the remaining net proceeds of the Equity Offering to redeem its Series 5 Cumulative Redeemable First Preferred Shares for an aggregate redemption price of CDNUS$175 million or approximately US$185 million, plus accrued and unpaid dividends. The redemption of these preferred shares is conditional upon the completion of each of the elements of the refinancing plan and subject to re-confirmation by the company's board of directors. Any remaining net proceeds of the Equity Offering will be used for general corporate purposes, including for the repayment of additional indebtedness. The terms of both the new Senior Notes and the Convertible Debentures will be settled between the company and the respective initial purchasers of the notes. Both the Senior Notes and the Convertible Debentures will be issued by the company and will be unconditionally guaranteed on a senior unsecured basis by Quebecor World (USA) Inc., Quebecor World Capital ULC and Quebecor World Capital LLC, all wholly-owned subsidiaries of the company. In addition, the company stated that it has re-filed its interim financial statements for the period ended Sept. 30, 2007, well as the corresponding management's discussion and analysis, in order to make certain changes to Note 18 - Subsequent Events to such financial statements relating to the company's disclosed sale/merger of its European operation, including to correct the amount reported for the estimated accounting (non-cash) loss on disposal before cumulative translation adjustment impact resulting from such sale/merger, from US$70 million to US$170 million. A copy of the prospectus may be obtained from: Quebecor World Inc. Investor Relations Department 612 St-Jacques Street, Montreal Quebec Canada H3C 4M8 Tel. (800) 567-7070 About Quebecor World Inc. Headquartered in Montreal, Quebec, Quebecor World Inc. (TSX: IQW)(NYSE:IQW), -- http://www.quebecorworldinc.com/-- provides market solutions, including marketing and advertising activities, well as print solutions to retailers, branded goods companies, catalogers and to publishers of magazines, books and other printed media. It has 127 printing and related facilities located in North America, Europe, Latin America and Asia. In the United States, it has 82 facilities in 30 states, and is engaged in the printing of books, magazines, directories, retail inserts, catalogs and direct mail. In Canada it has 17 facilities in five provinces, through which it offers a mix of printed products and related value-added services to the Canadian market and internationally. The company is an independent commercial printer in Europe with 19 facilities, operating in Austria, Belgium, Finland, France, Spain, Sweden, Switzerland and the United Kingdom. In March 2007, it sold its facility in Lille, France. Quebecor World (USA) Inc. is its wholly owned subsidiary. * * * As reported in the Troubled Company Reporter on Nov. 15, 2007, Moody's Investors Service rated Quebecor World Inc.'s new US$400 million senior unsecured note issue Caa1. At the same time, ratings for about US$1.6 billion of existing senior unsecured notes for QWI and its wholly-owned subsidiary companies, Quebecor World Capital Corporation and Quebecor World Capital ULC, were downgraded to Caa1 from B3. Standard & Poor's assigned its 'B' debt rating to Quebecor World's proposed US$400 million senior unsecured notes due 2014. The 'B' debt rating will be placed on CreditWatch with negative implications. =========== F R A N C E =========== MYLAN INC: Moody's Rates New Secured Credit Facilities at B1 ------------------------------------------------------------ Moody's Investors Service assigned B1 ratings to the new senior secured credit facilities of Mylan Inc. In addition, Moody's lowered Mylan's Corporate Family Rating to B1 from Ba1, concluding a rating review for possible downgrade initiated on May 14, 2007 and lowered the speculative grade liquidity rating to SGL-2 from SGL-1. Moody's is withdrawing the ratings on Mylan's former senior unsecured credit facilities and senior unsecured notes, which have been repaid. The rating outlook is stable. These rating actions are being taken in conjunction with Mylan's recent acquisition of Merck KGaA's generics pharmaceuticals business for approximately $6.9 billion. "The B1 ratings reflect the important benefits of Mylan's geographic expansion and vertical integration, offset by significantly higher financial leverage," stated Michael Levesque, Moody's Senior Vice President. The B1 rating reflects primarily these factors: (1) the strategic benefits of Mylan's global diversification, scale and vertical integration initiatives; (2) positive free cash flow benefiting from cost synergies and vertical integration; and (3) the belief that Debt/EBITDA will be reduced below 4 times by year-end 2009. Mylan began its international expansion in late 2006 via the acquisition of an India-based active pharmaceutical ingredients company, Matrix Laboratories. Matrix is the 2nd largest API supplier globally, and the Matrix acquisition is helping Mylan build much greater vertical integration than most generics peers. The acquisition of the Merck generics business provides additional opportunities for vertical integration. Offsetting risk factors include: (1) high Debt/EBITDA and limited FCF/Debt over the next two years; (2) risks related to the integration of the Merck generics business; (3) generics pricing pressure; and (4) the sector-wide risk of potential additional acquisitions. Key integration risk factors include employee retention, systems integration, cultural issues, and requirements to certify internal controls over financial reporting. Ratings assigned: -- B1 (LGD3, 43%) sr. secured Term Loan A of US$500 million due 2013 -- B1 (LGD3, 43%) sr. secured revolving credit facility of US$750 million due 2013 -- B1 (LGD3, 43%) sr. secured Term Loan B of US$2 billion due 2014 -- B1 (LGD3, 43%) sr. secured Term Loan B of EUR1.131 billion due 2014 Ratings lowered: -- Corporate Family Rating to B1 from Ba1 -- Probability of Default Rating to B1 from Ba1 -- Speculative Grade Liquidity Rating to SGL-2 from SGL-1 Ratings withdrawn: -- Ba1 (LGD4, 51%) sr. unsecured revolving credit facility of US$700 million due 2011; -- Ba1 (LGD4, 51%) sr. unsecured revolving credit facility of US$300 million due 2011; -- Ba1 (LGD4, 51%) sr. unsecured term loan of US$450 million due 2012; -- Ba1 (LGD4, 51%) sr. unsecured notes of US$150 million due 2010; -- Ba1 (LGD4, 51%) sr. unsecured notes of US$350 million due 2015. Moody's does not rate Mylan's convertible notes of US$600 million due 2012, or the new mandatory convertible preferred stock due 2010. Headquartered in Canonsburg, Pennsylvania, Mylan Inc. (fka Mylan Laboratories Inc.) is a specialty pharmaceutical company. For the six-month period ended September 30, 2007 Mylan reported total revenue of approximately US$1.0 billion. Mylan also owns a controlling interest in Matrix Laboratories, one of the world's premier suppliers of active pharmaceutical ingredients. Mylan also has a European platform through Docpharma, a Matrix subsidiary, which is a marketer of branded generics in Europe. ============= G E R M A N Y ============= ALERIS INT'L: Earns US$3.5 Million in Third Quarter 2007 -------------------------------------------------------- Aleris International, Inc., has reported results for the third quarter ended Sept. 30, 2007. Summary -- Revenues for third quarter 2007 were US$1.7 billion, compared with US$1.4 billion in third quarter 2006, a 19% increase, driven primarily by the 2006 acquisition of the downstream aluminum business of Corus Group plc (Corus Aluminum) and the 2007 acquisitions of Wabash Alloys L.L.C. and EKCO Products. -- EBITDA, excluding special items, for third quarter 2007 was US$127.5 million compared with US$123.0 million for the comparable period last year. -- The company generated free cash flow of US$102.4 million in the third quarter 2007 compared with US$87.1 million in the comparable period of 2006 and US$277.5 million in the first nine months of 2007 compared with US$163.6 million in the prior year-to-date period. -- Progress continued on the company's strategic growth initiatives as the acquisitions of Wabash Alloys and Alumox Holding AS were completed in September 2007. -- Productivity and synergy savings of US$32.0 million were achieved in the third quarter 2007 and total US$88 million year-to-date. -- Year-to-date, revenues were US$4.9 billion compared with US$3.3 billion last year, while EBITDA, excluding special items, increased 15% to US$349.8 million from US$304.1 million. -- Pro forma EBITDA, excluding special items, and including the acquisitions of Wabash Alloys and EKCO Products as if they had occurred on Oct. 1, 2006 and synergies as permitted by the company's Term Loan Agreement, for the last 12 months (Pro Forma Adjusted EBITDA) was US$527.8 million. Net debt was US$2.8 billion at quarter end. Net debt to Pro Forma Adjusted EBITDA, was 5.2. Pro Forma Adjusted EBITDA does not include approximately US$19.0 million of expected synergies as the Term Loan Agreement limits expected synergies to US$40.0 million. -- European industrial activity remains strong while demand from the North American building & construction and transportation end-uses is expected to remain soft for the rest of 2007. Third Quarter 2007 Operating Results Aleris reported third quarter 2007 revenues of US$1.7 billion, segment income of US$54.3 million, and net income of US$3.5 million. These results include losses from special items consisting of US$21.6 million of unrealized losses on derivative financial instruments, US$14.2 million for the impact of recording previously acquired assets at fair value, US$2.3 million of restructuring and other charges, US$2.3 million of sponsor management fees, and US$1.1 million of stock-based compensation expense. During the third quarter of 2007, Aleris also recorded the preliminary results of an independent appraisal of the tangible and intangible long-lived assets required as a result of TPG's acquisition of Aleris in December 2006. Based on those preliminary results, the company recorded amortization expense of approximately US$28.2 million in the third quarter of 2007 within selling, general and administrative expense. Additionally, third quarter 2007 income taxes included a US$31.6 million one-time benefit resulting from a decrease in the German statutory rate for corporate income and trade taxes. For the third quarter of 2006, Aleris reported revenues of US$1.4 billion, segment income of US$76.8 million, and a net loss of US$24.2 million. These results included a US$53.7 million loss on the early extinguishment of debt, US$30.9 million for the impact of recording previously acquired assets at fair value, US$24.3 million of unrealized losses on derivative financial instruments, US$2.6 million of restructuring and other charges, and US$2.6 million of stock- based compensation expense partially offset by US$9.8 million of gains on derivative financial instruments used to hedge a portion of the purchase price paid for Corus Aluminum. EBITDA, excluding special items, totaled US$127.5 million in the third quarter of 2007 compared with US$123.0 million in the same period last year. Results were driven primarily by the acquired operations of Corus Aluminum, which were included in the consolidated results for only two months of the 2006 third quarter, and ongoing company-wide productivity initiatives, partially offset by lower sales volumes in the company's North American rolled products and zinc businesses. Free cash flow for the third quarter of 2007 was US$102.4 million compared to US$87.1 million in the third quarter of 2006 as a result of the company's continuous focus on working capital management. Commenting on Aleris's third quarter results, Steven J. Demetriou, Chairman and Chief Executive Officer, said, "We are pleased with the performance of the controllable elements of our business, driven by the step- change productivity improvements across all areas of the Company. This was essential in partially offsetting the significant volume reductions in our North American rolled products and zinc businesses, primarily associated with the construction and transportation end-uses. "Our various integration activities are yielding strong results. We are on track to achieve the US$65 million of acquisition synergies associated with the Corus Aluminum acquisition, which is more than double the original estimate. Also, since completing the Wabash acquisition two months ago, we have begun executing several initiatives, including plant closures and back office integration. Estimated annual synergies from the Wabash acquisition are expected to be US$30 million over 12 to 18 months. In addition, we are achieving significant company-wide productivity benefits associated with Six Sigma, Rapid Transformation, metal recovery, and energy efficiency programs." Year-to-date 2007 Operating Results Aleris reported revenues of US$4.9 billion, segment income of US$140.0 million, and a net loss of US$14.7 million in the first nine months of 2007. The results were significantly impacted by unfavorable special items including US$100.4 million for the impact of recording previously acquired assets at fair value, US$11.2 million of restructuring and other charges, US$6.9 million of sponsor management fees, and US$2.9 million of stock-based compensation expense, partially offset by unrealized gains of US$26.0 million on derivative financial instruments. In addition, the 2007 results include amortization expense of US$34.8 million, an increase of US$32.9 million over the comparable period of 2006. In the first nine months of 2006, Aleris reported revenues of US$3.3 billion, segment income of US$254.2 million, and net income of US$59.4 million. The 2006 results included a US$53.7 million loss on the early extinguishment of debt, US$32.5 million for the impact of recording previously acquired assets at fair value, US$7.1 million for unrealized losses on derivative financial instruments, US$7.1 million of stock-based compensation expense, and US$2.3 million of restructuring and other charges, partially offset by US$9.8 million of gains on derivative financial instruments used to hedge a portion of the purchase price paid to acquire Corus Aluminum. EBITDA, excluding special items, of US$349.8 million for the first nine months of 2007 represents a 15% increase compared with US$304.1 million for the first nine months of 2006. The increase was primarily driven by the Corus Aluminum acquisition and company-wide productivity and synergy initiatives, partially offset by lower sales volumes at the North American rolled products and zinc businesses. Free cash flow for the first nine months of 2007 was US$277.5 million compared with US$163.6 million for the first nine months of 2006 and benefited from the company's focus on reducing working capital. Global Rolled and Extruded Products Global Rolled and Extruded Products shipments totaled 596 million pounds in the third quarter of 2007. This compares with shipments of 505 million pounds for the third quarter of 2006, with the increase driven by the Corus Aluminum and EKCO Products acquisitions. Excluding these acquisitions, shipments were down approximately 9% compared with the 2006 third quarter, due to continued weakness in North America. Shipments for the former Corus Aluminum were 319 million pounds for the third quarter of 2007 compared with shipments of 216 million pounds in August and September of 2006 and continued to benefit from strong economic growth in aerospace and automotive applications. The former EKCO Products business, acquired during the second quarter, contributed a net 15 million pounds to the total shipments in the third quarter. Global Rolled and Extruded Products segment income was US$41.7 million in the third quarter of 2007, compared with segment income of US$40.4 million in the prior-year period. Excluding the impact of US$13.3 million of purchase accounting adjustments which are recorded at the segment level, segment income in the third quarter of 2007 was US$55.0 million, compared with US$71.3 million in the prior-year third quarter, after adjusting for US$30.9 million of purchase accounting adjustments in 2006. The Corus Aluminum acquisition and productivity initiatives improved segment income, but were more than offset by reduced volumes in the U.S. and approximately US$16.4 million of incremental amortization expense associated with the preliminary adjustments to record acquired intangible assets. Material margins, on a pro forma basis including the Corus Aluminum and EKCO Products acquisitions, of US$0.64 per pound in the third quarter of 2007 increased from US$0.61 per pound in the third quarter of 2006 due to more favourable metal price lag. Cash conversion costs of US$0.40 per pound increased from US$0.39 per pound in the third quarter of 2006 as underlying productivity improvements were more than offset by the unfavorable impact of the stronger euro and lower volumes. Global Rolled and Extruded Products shipments totaled 1.7 billion pounds in the first nine months of 2007 compared with 1.1 billion pounds in the first nine months of 2006. The increase was primarily driven by the Corus Aluminum acquisition, which contributed 967 million pounds in 2007 and 216 million pounds in 2006. Excluding the Corus Aluminum and EKCO Products acquisitions, shipments decreased 15% in the first nine months of 2007 compared with the first nine months of 2006. The segment's income was US$80.0 million and US$135.2 million in the first nine months of 2007 and 2006, respectively. However, year-to-date 2007 and 2006 segment income includes US$85.4 million and US$32.5 million of unfavorable purchase accounting adjustments, respectively. After adjusting for purchase accounting, year-to-date segment income for 2007 would be US$165.4 million compared with segment income of US$167.7 million in the first nine months of 2006. The decrease reflects the lower volumes in North America as well as US$21.7 million of incremental amortization expense associated with the preliminary adjustments to record acquired intangible assets, partially offset by the incremental segment income generated by the acquired operations of Corus Aluminum and benefits from productivity improvements. Year-to-date pro forma material margins improved to US$0.64 per pound in 2007 from US$0.62 per pound in 2006, while cash conversion costs increased by US$0.02 per pound in 2007 to US$0.39 per pound as the stronger euro and reduced volumes more than offset productivity improvements. Global Recycling Global Recycling shipments of 821 million pounds in the third quarter of 2007 were up 6% compared with the 776 million pounds shipped in the year- earlier quarter. The increase was driven by the acquired operations of Wabash Alloys, which contributed 42 million pounds since their acquisition. Excluding the acquired operations of Wabash Alloys, shipments in the third quarter of 2007 were consistent with those of the prior year quarter as increased European demand was offset by reduced demand in the North American specification alloy business. Segment income was US$9.0 million in the third quarter of 2007 compared with US$22.2 million in the third quarter of 2006. The decrease in segment income was driven by lower scrap spreads in North America and US$6.9 million of incremental amortization expense associated with the preliminary adjustments to record acquired intangible assets, partially offset by volume increases, primarily in Europe, and productivity improvements overall. The acquired operations of Wabash Alloys incurred a segment loss of US$0.6 million, including US$1.4 million of purchase accounting adjustments related to acquired inventories. For the first nine months of 2007, shipments increased to 2.4 billion pounds from 2.3 billion pounds in 2006, primarily driven by a 65 million pound increase in Europe and the acquisition of Wabash Alloys. Segment income for the first nine months of 2007 was US$49.9 million compared with US$69.8 million for the year- earlier period. Excluding purchase accounting adjustments of US$3.8 million, segment income of US$53.7 million was US$16.1 million less than the prior year's first nine months, driven by less favourable scrap spreads in the specification alloy business and US$6.9 million of incremental amortization expense. Global Zinc Global Zinc reported third quarter 2007 volume of 87 million pounds, a decrease of 12% from 99 million pounds in the third quarter of 2006. Segment income of US$3.6 million for the third quarter of 2007 compared with US$14.2 million of segment income for the third quarter of 2006. The decrease in segment income from the prior-year period was due to lower volume caused by lower demand by tire and rubber customers, lower margins from trading activities, higher material costs and approximately US$4.0 million of incremental amortization expense. Year-to-date shipments for the segment totalled 264 million pounds in 2007 compared with 315 million pounds in 2006. Year- to-date segment income of US$10.1 million in 2007 compared with US$49.2 million in the prior-year period. The decrease in segment income was driven primarily by a purchase accounting adjustment of US$11.2 million, lower volume, less favourable scrap spreads, an unfavourable metal price lag resulting from the first quarter 2007 liquidation of inventory acquired at historically high fourth quarter 2006 prices, and US$4.0 million of incremental amortization expense. Corporate Expense Corporate expense primarily includes corporate general and administrative expense (G&A), other income/expense, certain realized gains and losses on derivative financial instruments resulting from the centralization of the risk management functions, and interest expense. In addition, in order to simplify the understanding of ongoing segment operations, corporate expense includes all restructuring and other charges as well as non-cash adjustments associated with mark-to-market accounting for derivative financial instruments. In the third quarter of 2007, Aleris' results included US$21.6 million of unrealized losses on derivative financial instruments, US$2.3 million of sponsor management fees, US$2.3 million of restructuring and other charges, and US$1.1 million of charges for non-cash stock-based compensation. Corporate G&A increased to US$20.5 million in the third quarter of 2007 from US$18.9 million in the same period of 2006 as the addition of sponsor management fees and increased operating costs at the company's European headquarters were only partially offset by lower incentive and stock-based compensation expense. Year-to-date Corporate G&A increased by US$5.5 million for the same reasons. Interest expense for the third quarter of 2007 increased to US$58.3 million from US$26.6 million in the third quarter of 2006 due to higher borrowings associated with the refinancing to fund the acquisition of Corus Aluminum in August 2006, the refinancing to fund TPG's acquisition of Aleris in December 2006, and the additional indebtedness incurred to fund the acquisition of Wabash Alloys in September 2007. For the first nine months of 2007, interest expense increased to US$168.8 million from US$54.3 million in the same period of 2006. For the nine months ended Sept. 30, 2007, the company's effective tax (benefit) rate was (78.4)% compared with 36.8% in the comparable period of 2006. The 2007 effective rate benefited from the new tax rules in Germany and the financing structure in Europe. Cash taxes are expected to total approximately US$25.0 million for 2007. Capital expenditures were US$43.3 million for the third quarter of 2007, compared with US$27.7 million for the previous year's third quarter. Year-to- date capital expenditures were US$135.5 million compared with US$53.5 million in the first nine months of 2006. The increase is primarily attributable to the Corus Aluminum acquisition which accounted for US$98.3 million of capital expenditures in the first nine months of 2007. About Aleris Headquartered in Beachwood, Ohio, Aleris International Inc. (NYSE: ARS) -- http://www.aleris.com/-- manufactures rolled aluminum products and offers aluminum recycling and the production of specification alloys. The company also manufactures value-added zinc products that include zinc oxide, zinc dust and zinc metal. The company operates 42 production facilities in the United States, Brazil, Germany, Mexico, China and Wales, and employs approximately 4,200 employees. * * * As reported in the Troubled Company Reporter on Sept. 21, 2007, Standard & Poor's Ratings Services revised its outlook on Aleris International Inc. to negative from stable. At the same time S&P affirmed its 'B+' corporate credit rating and the other ratings on the company. Concurrently, S&P assigned a 'B-' rating to the company's recent US$105 million 9% senior notes due 2014, which are an add-on to the company's existing US$600 million 9% senior notes due 2014. CHRYSLER LLC: To Donate US$150,000 to NextEnergy's Fuel Testings ---------------------------------------------------------------- The Chrysler Foundation has announced plans to donate US$150,000 to NextEnergy, Inc., in support of the organization's alternative fuel testing program. NextEnergy, based in Detroit, was founded to encourage alternative energy technologies that positively contribute to economic competitiveness, energy security, and the environment. "This grant is an extension of Chrysler's commitment to being a good neighbour in all the places where we build and sell our vehicles," said Chrysler LLC's Senior Vice President -- External Affairs and Public Policy, Frank Fountain. "It's a priority for Chrysler to increase the use of alternative fuels by investing in research into biodiesel technology and helping to develop industry standards for biodiesel fuel." The alternative fuel-testing platform allows fuels to be tested for their stability and efficiency before trying them out in vehicles or other power generators. The fuel-testing platform can also be used to advance the development of hydrogen and natural gas as alternative fuels. "Chrysler's commitment to creating new fuelling options has helped move automotive applications for alternative energies to a new level," said NextEnergy's Chief Executive Officer, Jim Croce. "With The Chrysler Foundation's grant, we have been able to complete a testing platform that helps check out the viability of new bio and synthetic fuels as they progress from concept to use in vehicles and power generators." Chrysler LLC is also a partner in two additional projects now underway at NextEnergy, the National Biodiesel Energy Lab and a biofuels infrastructure program through the U.S. Department of Labor & Economic Growth. The National Biodiesel Energy Lab is developing standards for biodiesel use in vehicles. A national standard is necessary to allow OEM's to warranty their vehicles for use with B5 to B20 fuels. The lab is also working to develop the next generation of biodiesel fuels and involves research along the fuel's whole life, from agricultural seed research all the way to vehicle testing in the field. The Department of Labor & Economic Growth project is an initiative to expand biofuel infrastructure throughout the country. As a partner with NextEnergy, Chrysler is providing cost-sharing support to assist in expanding the number of biofuel pumps throughout Michigan. NextEnergy NextEnergy -- visit http://www.nextenergy.org-- is a non-profit corporation, located in Detroit's TechTown, and was founded to enable the commercialization of energy technologies that positively contribute to economic competitiveness, energy security, and the environment. The Chrysler Foundation Now in its 54th year, The Chrysler Foundation is the primary source of charitable grants made by Chrysler. The Foundation annually supports hundreds of charitable organizations with an emphasis on community growth and enrichment, education, arts and culture, public policy, youth development and disaster relief programs throughout the United States and, increasingly, the world. The Foundation's Good Neighbour, Good Citizen(R) programs make a positive, lasting investment in local communities where our employees, customers and neighbours live. About Chrysler LLC Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- produces Chrysler, Jeep(R), Dodge and Mopar(R) brand vehicles and products. The company has dealers worldwide, including Canada, Mexico, U.S., Germany, France, U.K., Argentina, Brazil, Venezuela, China, Japan and Australia. Chrysler is a unit of Cerberus Capital Management. * * * As reported in the Troubled Company Reporter on Nov. 12, 2007, Standard & Poor's Ratings Services affirmed its 'B' corporate credit rating on Chrysler LLC and DaimlerChrysler Financial Services Americas LLC and removed it from CreditWatch with positive implications, where it was placed Sept. 26, 2007. S&P said the outlook is negative. COCO COLOR: Claims Registration Ends December 21 ------------------------------------------------ Creditors of CoCo Color Company Musterfarberei GmbH have until Dec. 21 to register their claims with court-appointed insolvency manager Christian Adolf. Creditors and other interested parties are encouraged to attend the meeting at 1:05 p.m. on Jan. 23, 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 Hof Meeting Hall 012 Ground Floor Berliner Platz 1 95030 Hof Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Christian Adolf Ludwigstr. 50 95028 Hof Germany Tel: 09281/8331080 Fax: 09281/8331089 The District Court of Hof opened bankruptcy proceedings against CoCo Color Company Musterfarberei GmbH on Oct. 30. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CoCo Color Company Musterfarberei GmbH Muenchberger Str. 57 95234 Sparneck Germany Attn: Hans-Peter Lorenz, Manager Baseler Str. 133 12205 Berlin Germany CUBITE MOBILE: Claims Registration Ends December 21 --------------------------------------------------- Creditors of Cubite mobile GmbH have until Dec. 21 to register their claims with court-appointed insolvency manager Dr. Joern- H. Meyn. Creditors and other interested parties are encouraged to attend the meeting at 9:40 a.m. on Jan. 23, 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 Hamburg Meeting Hall B405 Fourth Floor Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Joern-H. Meyn Herrengraben 31 20459 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Cubite mobile GmbH on Oct. 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Cubite mobile GmbH Attn: Christian Loose, Manager Katharinenstrasse 4 20457 Hamburg Germany GASTRO ITALIA: Claims Registration Ends December 18 --------------------------------------------------- Creditors of Gastro Italia GmbH & Co.KG have until Dec. 18 to register their claims with court-appointed insolvency manager Dr. Friedrich Neumann. Creditors and other interested parties are encouraged to attend the meeting at 10:30 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 Regensburg Hall 105 Augustenstr. 5 Regensburg 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. Friedrich Neumann Ludwig-Eckert-Str. 5-7 93049 Regensburg Germany Tel: 0941/25085/86 Fax: 0941/28123 The District Court of Regensburg opened bankruptcy proceedings against Gastro Italia GmbH & Co.KG on Oct. 23. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Gastro Italia GmbH & Co.KG Komotauer Str. 1 93073 Neutraubling Germany GERHARD MISCHE: Claims Registration Period Ends Nov. 20 ------------------------------------------------------- Creditors of Gerhard Mische Verwaltungs GmbH have until Nov. 20 to register their claims with court-appointed insolvency manager Matthias Landwehr. Creditors and other interested parties are encouraged to attend the meeting at 9:45 a.m. on Dec. 18, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Detmold Meeting Room 12 Ground Floor Gerichtsstr. 6 32756 Detmold 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: Matthias Landwehr Gerichtsstr. 12 32791 Lage Germany The District Court of Detmold opened bankruptcy proceedings against Gerhard Mische Verwaltungs GmbH on Oct. 18. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Gerhard Mische Verwaltungs GmbH Trifte 61 32657 Lemgo Germany Attn: Christina Welke, Manager Suedfeldstr. 6 a 32602 Vlotho Germany GT HOLZ: Claims Registration Period Ends Nov. 26 ------------------------------------------------- Creditors of GT Holz- und Bautenschutz GmbH have until Nov. 26 to register their claims with court-appointed insolvency manager Dr. Sebastian Henneke. Creditors and other interested parties are encouraged to attend the meeting at 11:05 a.m. on Dec. 17, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dortmund Hall 3.201 Second Floor Gerichtsplatz 1 44135 Dortmund 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 Hansastrasse 61 44137 Dortmund Germany The District Court of Dortmund opened bankruptcy proceedings against GT Holz- und Bautenschutz GmbH on Oct. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: GT Holz- und Bautenschutz GmbH Industriestrasse 11 44577 Castrop-Rauxel Germany Attn: Hans-Juergen Sender Recklinghauser Strasse 307 a 44579 Castrop-Rauxel Germany KABELTRASSENBAU-MONTAGE: Claims Registration Period Ends Dec. 21 ---------------------------------------------------------------- Creditors of KTM Kabeltrassenbau-Montage GmbH i. G. have until Dec. 21 to register their claims with court-appointed insolvency manager Thomas Wulsten. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Jan. 23, 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 Potsdam Hall 301 Third Floor Nebenstelle Lindenstrasse 6 14467 Potsdam Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Thomas Wulsten Rudolf-Breitscheid-Strasse 33 14482 Potsdam Germany The District Court of Potsdam opened bankruptcy proceedings against KTM Kabeltrassenbau-Montage GmbH i. G. on Oct. 29. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: KTM Kabeltrassenbau-Montage GmbH i. G. Rudower Strasse 68 A 12529 Schoenefeld OT Wassmannsdorf Germany MHS FLIESEN: Claims Registration Ends December 20 ------------------------------------------------- Creditors of MHS Fliesen GmbH have until Dec. 20 to register their claims with court-appointed insolvency manager Raff. 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 Esslingen Hall 1 First Floor Rit-terstr.5 73249 Wernau 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: Rechtsanwalt Raff Heilbronner Str. 86 70191 Stuttgart Germany Tel: 07112597290 Fax: 259729999 The District Court of Esslingen opened bankruptcy proceedings against MHS Fliesen GmbH on Oct. 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MHS Fliesen GmbH Attn: Joachim Schlesinger, Manager Siemensstr.2 72636 Frickenhausen Germany PLASS BAUSTOFFHANDELS: Claims Registration Period Ends Nov. 19 -------------------------------------------------------------- Creditors of Plass Baustoffhandels- und Transportgesellschaft mbH have until Nov. 19 to register their claims with court- appointed insolvency manager Klaus Knetter. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Nov. 19, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Detmold Meeting Room 12 Ground Floor Gerichtsstr. 6 32756 Detmold Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Klaus Knetter Otto-Brenner-Str. 186 33604 Bielefeld Germany The District Court of Detmold opened bankruptcy proceedings against Plass Baustoffhandels- und Transportgesellschaft mbH on Oct. 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Plass Baustoffhandels- und Transportgesellschaft mbH Goldstr. 84 33813 Oerlinghausen Germany Attn: Andreas Plass, Manager Goldstr. 82 33813 Oerlinghausen Germany PORTFOLIO GREEN: Moody's Junks EUR4 Mln Class G Secured Notes ------------------------------------------------------------- Moody's Investors Service assigned these definitive ratings to the CMBS Notes issued by Portfolio GREEN German CMBS GmbH: -- Aaa to the EUR425,500,000 Class A Secured Floating Rate Notes due April 2050; -- Aaa to the EUR40,000,000 Class B Secured Floating Rate Notes due April 2050; -- Aa3 to the EUR40,000,000 Class C Secured Floating Rate Notes due April 2050; -- Baa1 to the EUR35,000,000 Class D Secured Floating Rate Notes due April 2050; -- Ba1 to the EUR20,000,000 Class E Secured Floating Rate Notes due April 2050; -- B2 to the EUR12,000,000 Class F Secured Floating Rate Notes due April 2050; -- Caa1 to the EUR4,000,000 Class G Secured Floating Rate Notes due April 2050. Moody's has not assigned a rating to the Class H Secured Fixed Rate Notes of the Issuer. The Class F and Class G Secured Floating Rate Notes are subject to an available funds cap in case of revenue shortfalls arising in relation to loan prepayments. In this transaction, Lehman Brothers Bankhaus AG sells its economic interest in claims for interest and principal under a portfolio of mortgage loans granted to individual and corporate borrowers in Germany to the Issuer. The mortgage loans are secured by commercial properties, including office, retail, residential, mixed-use, hotel and nursing homes located in Germany. Legal ownership of the mortgage loans and their related collateral remains with a portfolio collateral agent, Florian (No.3) GmbH. The Portfolio was initially transferred by way of hive down ("Ausgliederung zur Neugruendung") from the originators to certain hive down companies and subsequently sold to intermediate companies before Lehman Brothers Bankhaus AG purchased the economic interest of the mortgage loans. The Portfolio is serviced by the sub-servicer Hatfield Philips Deutschland GmbH, whereas LNR Partners Germany GmbH is the special servicer. The Portfolio has a total volume of EUR585 million and consists of 416 mortgage loans that were granted to 98 borrower groups. The mortgage loans are on aggregate secured by 205 properties. The top borrower group exposure accounts for 17 per cent and the top three borrower groups for 39 per cent of the Portfolio. Based on borrower groups, the herfindal index is 17. Based on underwriter's market value, the major property types are mixed- use buildings (30.4 per cent) followed by office properties (29.6 per cent) and residential (multi-family) properties (24.3 per cent). All properties are located in Germany. The property regional distribution within Germany is dominated by the federal states of Bavaria (46.5 per cent), North-Rhine Westfalia (15.6 per cent) and Saxony (9.1 per cent). Based on Seller's data, the portfolio has a weighted average loan-to-value of about 71 per cent and an average seasoning of about 10 years. Further favorable characteristics include the good diversification of the Portfolio in respect of location, property type and borrowers, the relatively small portion of third party prior and equal ranking claims and the relatively low loan-to-value as per the mortgage loans' interest reset dates of about 68 per cent. Less favorable aspects of the Portfolio include the limited information available on the granular portion of the Portfolio, the borrower and tenant concentration with respect to the largest exposures and the on aggregate about 8 per cent of borrower groups that have a loan- to-value ratio of above 100 per cent. Moody's visited approximately 51 per cent of all properties by underwriter value. On average, Moody's has assigned a property attractiveness grade of 2.7 to the properties. The ratings on the Notes are based upon: (i) Moody's assessment of the real estate quality and characteristics of the Portfolio, its loan-to-value and current debt service coverage attributes; (ii) the strong diversity characteristics of the Portfolio; (iii) the availability of a committed liquidity facility which is expected to ensure timely payment of interest payments on the rated Notes as well as senior Issuer expenses; (iv) the level of subordination provided by the subordinated Notes; (v) Issuer level hedging contracts; (vi) structural elements like AFCs; and (vii) the legal and structural characteristics of the issue. Moody's ratings of each of the Notes address the expected loss posed to investors by the legal final maturity. In Moody's opinion, the structure allows for timely payment of interest and ultimate payment of principal at par on or before the rated final legal maturity date. Moody's ratings address only the credit risks associated with the transaction. Other non-credit risks have not been addressed, but may have a significant effect on yield to investors. PROJEKT HAUS: Claims Registration Period Ends Dec. 21 ----------------------------------------------------- Creditors of Projekt "Haus" Immobilien GmbH i.L. have until Dec. 21 to register their claims with court-appointed insolvency manager Ruediger Werres. 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 Cologne Meeting Hall 142 First Floor Luxemburger Strasse 101 50939 Cologne 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. Ruediger Werres Friesenplatz 17 a 50672 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against Projekt "Haus" Immobilien GmbH i.L. on Oct. 25. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Projekt "Haus" Immobilien GmbH i.L. Kaiser-Wilhelm-Ring 27 � 29 50672 Cologne Germany SKROTZKI TRANSPORTE: Claims Registration Period Ends Dec. 24 ------------------------------------------------------------ Creditors of Skrotzki Transporte GmbH & Co. KG have until Dec. 24 to register their claims with court-appointed insolvency manager Heiner Buss. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Jan. 24, 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 Aurich Hall 115 Schlossplatz 2 26603 Aurich 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. Heiner Buss Hauptstrasse 169 D 26639 Wiesmoor Germany Tel: 0 49 44/10 33 Fax: 0 49 44/91 20 35 The District Court of Aurich opened bankruptcy proceedings against Skrotzki Transporte GmbH & Co. KG on Oct. 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Skrotzki Transporte GmbH & Co. KG Attn: Marco Skrotzki, Manager Gewerbestr. 2 26532 Grossheide Germany THEATER IN CRONENBERG: Claims Registration Period Ends Nov. 20 -------------------------------------------------------------- Creditors of Theater in Cronenberg gemeinn�tzige GmbH have until Nov. 20 to register their claims with court-appointed insolvency manager Stephan Ries. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Dec. 11, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Wuppertal Meeting Room A234 Second Floor Isle 2 42103 Wuppertal 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: Stephan Ries Wall 28 42103 Wuppertal Germany Tel: 0202/317558-0 Fax: 0202/317558-10 The District Court of Wuppertal opened bankruptcy proceedings against Theater in Cronenberg gemeinn�tzige GmbH on Oct. 31. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Theater in Cronenberg gemeinn�tzige GmbH Attn: Ronald F. Stuerzebecher, Manager Borner str. 1 42349 Wuppertal Germany USOX-ISOLIERUNGEN GMBH: Claims Registration Period Ends Dec. 21 --------------------------------------------------------------- Creditors of USOX-Isolierungen GmbH i.L. have until Dec. 21 to register their claims with court-appointed insolvency manager Dr. Kreuznacht. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Jan. 30, 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 Erfurt Hall 12 Judicial Center Rudolfstr. 46 99092 Erfurt 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. Kreuznacht Untermarkt 23 99974 Muehlhausen Germany Tel: 03601/88920 The District Court of Erfurt opened bankruptcy proceedings against USOX-Isolierungen GmbH i.L. on Oct. 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: USOX-Isolierungen GmbH i.L. Siedlung 4 c 99189 Gebesee Germany =========== G R E E C E =========== FAGE DAIRY: Moody's May Cut B1 Ratings After Review --------------------------------------------------- Moody's Investors Service placed the B1 ratings of Fage Dairy Industry S.A. on review for possible downgrade, following the announcement of its results for the third quarter of 2007. For the third quarter, the company reported a 6% drop in revenues and a EUR2.1 million loss from operations, in contrast to a EUR5.9 million profit in the same period of 2006. Over the three-month period, financial debt also increased by approximately EUR10 million, raising the company's Debt/EBITDA ratio to over 8.5x for the last 12 months to September 2007. Moody's notes that the company's short-term liquidity appears adequate, with only EUR7.2 million of debt falling due within 12 months and EUR39.2 million of cash on the balance sheet. However, the company still faces a committed additional investment of EUR19.6 million related to the production facility it is building in the US, while headroom under the incurrence test of the indenture of the company's senior notes is shrinking. Moody's review will therefore mainly focus on: (i) Fage's expected market share evolution, in light of increasing competition in its local market, (ii) the company's prospects for an improvement in profitability, in a market environment in which rising raw material prices, a higher level of competition in its home market and foreign currency exposure are likely to continue affecting the company's results, and (iii) the availability of funding to sustain its committed investments, working capital requirements and ongoing capital expenditures. Affected ratings are: -- B1 Corporate Family Rating at Fage Dairy Industry S.A.; -- B1 Probability of Default Rating at Fage Dairy Industry S.A.; -- B1 Senior Unsecured rating of the EUR130 million notes due 2015 issued by Fage Dairy Industry S.A. Headquartered in Athens, Fage is the leading dairy company in Greece, with activities in the yoghurt, refrigerated milk and packaged cheese segments. For the nine months ended 30 September 2007, Fage reported consolidated net sales of EUR253.2 million, operating profit of EUR6.2 million and total debt of around EUR181.8 million. ============= I R E L A N D ============= TREES S.A.: Fitch Rates EUR150 million Loan at BB+ -------------------------------------------------- Fitch Ratings has assigned a final 'BB+' rating to TREES S.A.'s EUR150 million loan facility. The rating addresses the probability of the loan being repaid on or prior to Sept. 20, 2014 in accordance with its documentation, if drawn, and the payment of interest according to the documentation. The rating is based on the credit quality of the EUR5 billion portfolio of mainly investment grade corporate bonds and loans, the availability of EUR150 million credit enhancement provided by UBS AG and a shortfall facility that covers cash shortfalls subject to certain conditions, both provided by UBS AG. In addition, the rating takes into account the credit quality of UBS AG and the sound legal and financial structure of the transaction. Portfolio assets can be substituted subject to the lender approval. The rating loss rate for the loan facility was determined using the Fitch Default VECTOR Model. VECTOR is based on a structural form methodology, which holds that an entity defaults when the value of its assets falls below the value of its liabilities (or its default threshold). The model simulates correlated asset values for each obligor and each period, which are compared to the default thresholds derived from each entity's rating and corresponding VECTOR default probability. VECTOR uses an annual multi-step process whereby, at every annual step, the reference portfolio is updated by removing defaulted assets and recording losses and recoveries upon default. The model simulates the asset values for each year of a transaction, allowing the modeling of time-varying inputs, such as correlation and default rates, and incorporating amortization characteristics for each individual portfolio. If the loan is drawn, the lender will be exposed to the risk that principal and interest on the loan advances is reduced once the aggregate portfolio losses exceed the available credit enhancement. On the repayment date of the loan, TREES S.A. will sell to UBS AG all performing assets at par plus accrued interest, and any defaulted assets will be sold in the market. The proceeds will then be applied in accordance with a waterfall where the lender is repaid on a pari passu basis with repo counterparties and senior to the shortfall facility lender. =================== K A Z A K H S T A N =================== BSB STROY-MONTAGE: Proof of Claim Deadline Slated for Dec. 14 ------------------------------------------------------------- LLP BSB Stroy-Montage Service has declared insolvency. Creditors have until Dec. 14 to submit written proofs of claims to: LLP BSB Stroy-Montage Service Zarechny-2/566 Aktobe Aktube Kazakhstan CRIS SERVICE: Creditors Must File Claims Dec. 12 ------------------------------------------------- LLP Cris Service Ltd has declared insolvency. Creditors have until Dec. 12 to submit written proofs of claims to: LLP Cris Service Ltd Esenberlin Str. 29 Jezkazgan 477000, Karaganda Kazakhstan Tel: 8 (7102) 71-01-01 EXPRESS SNAB+: Claims Filing Period Ends Dec. 18 ------------------------------------------------ LLP Express Snab+ has declared insolvency. Creditors have until Dec. 18 to submit written proofs of claims to: LLP Express Snab+ Vorovskogo Str. 59/1-71 Aktobe Aktube Kazakhstan HRANNOYE AGENSTVO: Creditors' Claims Due on Dec. 12 --------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Ohrannoye Agenstvo Progress insolvent on Sept. 21. Creditors have until Dec. 12 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (3162) 25-79-32 INVESTA NORD: Claims Registration Ends Dec. 12 ---------------------------------------------- LLP Investa Nord has declared insolvency. Creditors have until Dec. 12 to submit written proofs of claims to: LLP Investa Nord Musrepov Str. 40 Petropavlovsk North Kazakhstan Kazakhstan JEMIS FRUIT: Proof of Claim Deadline Slated for Dec. 18 ------------------------------------------------------- LLP Jemis Fruit has declared insolvency. Creditors have until Dec. 18 to submit written proofs of claims to: LLP Jemis Fruit Makatayev Str. 196-36 Almaty Kazakhstan Tel: 8 (7272) 79-86-66 KOS-NIK LLP: Creditors Must File Claims Dec. 12 ------------------------------------------------ The Specialized Inter-Regional Economic Court of Kostanai has declared LLP Kos-Nik insolvent. Creditors have until Dec. 12 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Tolstoy Str. 74 Kostanai Kazakhstan MBS LTD: Claims Filing Period Ends Dec. 12 ------------------------------------------ The Specialized Inter-Regional Economic Court of Kostanai has declared LLP MBS Ltd insolvent. Creditors have until Dec. 12 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Kostanai Tolstoy Str. 74 Kostanai Kazakhstan OZEN CAPITAL: Creditors' Claims Due on Dec. 12 ---------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau has declared LLP Ozen Capital insolvent. Creditors have until Dec. 12 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Mangistau Micro District 27 Aktau Mangistau Kazakhstan STEPNOGORSKSPETSMONTAGE LLP: Claims Registration Ends Dec. 12 ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Stepnogorskspetsmontage insolvent. Creditors have until Dec. 12 to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Akmola Room 228 Auelbekov Str. 139a Kokshetau Akmola Kazakhstan Tel: 8 (3162) 25-79-32 * Fitch Affirms Almaty City's Ratings at BB+ with Stable Outlook ---------------------------------------------------------------- Fitch Ratings has affirmed Kazakhstan's City of Almaty Long-term foreign and local currency 'BB+' ratings and a Short-term foreign currency 'B' rating. Fitch also assigned it a National Long-term 'A+(kaz)' rating. All the rating Outlooks are Stable. The ratings reflect the city's well-diversified and growing economy, stable growth in tax revenue, high level of capital spending and low debt burden. However, the ratings also factor in the city dependence upon the central government in terms of decisions on inter-regional equalization transfers, and limited financial flexibility of the city. The Stable Outlook reflects Fitch's expectation that economic growth will underpin stable revenue growth, allowing the City to compensate for increasing expenditures and maintain an operating balance at satisfactory level. Fitch expects the debt burden to remain low. Almaty has a strong, service-oriented economy with per capita gross city product almost three times higher than the national average. The city has recorded positive operating and current margins and high level of capital expenditure, up to 30.5% of total spending in 2006 from 7.2% in 2000. A large proportion of capital investment has been financed by the city's capital revenues and capital transfers from the central government. Capital revenue and capital transfers covered 93% of capital expenditure in 2006. The central government has financed several large-scale development projects in the city, related to power supply, infrastructure development and construction. The debt burden is low, reaching only 14% of current revenue in 2006, while debt servicing has declined to 2.3% in 2006 from 5.5% in 2002. The bulk of the city outstanding debt is interest free loans from the central government for residential construction. Kazakhstan's budgetary framework is characterized by strong bias towards centralized decision making and funds distribution. The city has had limited financial possibilities since legislation implemented in 2003 prohibited it from issuing bonds or borrowing from banks. Besides the city is free of indirect risk due to national regulation restriction for guarantees issue for subnational entities. However, recent changes in national regulation will permit borrowing at financial market for the city starting from 2008. The city of Almaty tax capacity is much higher than country average and the city is required to transfer to the republican budget a significant share of the city's revenue for further redistribution among sub-national entities. The withdrawals to the central budget averaged 38% of total city's budget expenditure in 2004-2006. The City of Almaty is the largest city in Kazakhstan and is located in the south-eastern part of the country. The city contributed 19.9% to national gross domestic product in 2006 and makes up about 8% of Kazakhstan's total population. =================== K Y R G Y Z S T A N =================== AFINA TRAVEL: Creditors Must File Claims by December 14 ------------------------------------------------------- LLC Afina Travel has declared insolvency. Creditors have until Dec. 14 to submit written proofs of claim to: LLC Afina Travel Manas Ave. 57/37 Bishkek Kyrgyzstan Tel: (+996 312) 61-22-38 ================= L I T H U A N I A ================= BANKAS SNORAS: Fitch Affirms IDR at BB- with Stable Outlook ----------------------------------------------------------- Fitch Ratings has changed Lithuania-based Bankas Snoras's Outlook for its Long-term Issuer Default Rating to Stable from Negative. At the same time, the agency has affirmed the bank's ratings at Long-term IDR 'BB-', Short-term IDR 'B', Individual 'D' and Support '4'. Support Rating Floor is affirmed at 'B+'. Snoras's outstanding EUR175 million eurobond is rated Long-term 'BB-'. The change in Outlook reflects Snoras's improved capitalization level following recent registration of the LTL 140m of equity increase. Fitch notes that, although improved, capitalization is only moderate in the medium-term and further capital injections are likely needed to support growth. Snoras's ratings reflect its relatively small size, growing pressures on current profitability and risks related to rapid growth and exposures outside its home market. However, it also includes the bank's good retail franchise, decent profitability and high liquidity, diversification of funding sources and income streams. Although Snoras's 75.9%-owned Latvian subsidiary, Latvijas Krajbanka (rated 'B+'), is run pretty autonomously, Fitch notes that some integration is already visible, with risk policies realigned with Snoras and the concept of mini-banks, which was tested in Snoras, being implemented in Krajbanka. The Support rating reflects limited probability of support by the Lithuanian authorities, if required, in view of Snoras's market share of resident deposits (about 10%). Snoras is the fifth-largest bank in Lithuania, with around 7% of sector's assets as at end of first half of 2007. The bank is 68.65%-owned by a Russian businessman Mr. Antonov and 25.1% by the chairman of Snoras' board Mr. Baranauskas. Snoras has a modern and wide-ranging distribution network. The bank has domestic subsidiaries offering mainly leasing, asset management services and real estate management. Krajbanka is a small bank, ranking as Latvia's ninth-largest by assets at end first half of 2007. It is a universal bank serving mainly small- to medium-sized enterprises and individuals. ===================== N E T H E R L A N D S ===================== DEMIR-HALK BANK: Moody's Assigns Ba1/NP Deposit Ratings ------------------------------------------------------- Moody's Investors Service assigned Demir-Halk Bank (Nederland) N.V. ratings of Ba1 for long term bank deposits, NP for short term bank deposits and D+ for bank financial strength. All ratings have stable outlooks. DHB is a Netherlands-based commercial bank specialized in international banking, commodity and structured trade finance lending and consumer finance. According to Moody's, DHB's ratings reflect its role as a niche player in the competitive international trade finance segment, its good asset quality with historically low credit losses, a good and stable retail driven funding profile and good capitalisation levels. As with other Netherlands-regulated banks, DHB has relatively tight internal controls and a number of corporate governance safeguards. Concurrently, Moody's indicates that DHB's ratings are constrained by a number of important credit challenges. Moody's notes that although markedly reduced, exposures to related parties remain high. An important part of related party exposures are to companies linked to HCBG Holding N.V., owned by the Chairman of DHB's supervisory board. HCBG is DHB's 70% owner and its linked companies include, among others, a number of banking interests outside DHB's scope of consolidation. Moody's also notes that further credit challenges for DHB arise from the composition of revenues and assets. DHB has a relatively new client franchise in commodities and structured trade finance and is relatively more dependent upon revenues and earnings from treasury activities. Finally, the bank's exposure is concentrated geographically towards Turkey, albeit in a decreasing trend, as well as other -- increasingly correlated - emerging markets, which are prone to volatility. The stable outlook for DHB's ratings reflects Moody's expectation that there will be no significant changes in the mix and quality of assets or in the stability of funding. DHB, based in Rotterdam, Netherlands, has 298 employees and reported total consolidated assets of EUR2,123 million, equity of EUR205 million and net profit of EUR15million in accordance with Dutch accounting standards as at Dec. 31, 2006. HARBOURMASTER CLO 10: Fitch Rates EUR9 million Class B2 at BB ------------------------------------------------------------- Fitch Ratings has assigned Harbourmaster CLO 10 B.V.'s issue of EUR495.8 million floating-rate notes due 2024 expected ratings. The transaction, a European arbitrage collateralized loan obligation, is a securitization of primarily senior secured loans. The ratings are: -- EUR5 million Class X floating-rate notes: 'AAA' -- EUR290 million Class A1 floating-rate notes: 'AAA' -- EUR72 million Class A2 floating-rate notes: 'AAA' -- EUR24 million Class A3 floating-rate notes: 'AA' -- EUR41 million Class A4 floating-rate notes: 'A' -- EUR22 million Class B1 floating-rate notes: 'BBB' -- EUR9 million Class B2 floating-rate notes: 'BB' -- EUR32.8 million Class C subordinated notes: not rated The final ratings are contingent upon receipt of final documentation conforming materially to information already received. The expected ratings of the Class X, A1 and A2 notes address ultimate repayment of principal at maturity and timely payment of interest according to the terms of the notes. For all other rated Classes of notes, the ratings address ultimate payment of principal and interest, including any deferred interest, at maturity according to the terms of the notes. The expected ratings are also based on the credit enhancement provided to the various classes of notes, structural protection covenants and excess spread. Credit enhancement in the form of subordination for the Class A1 notes totals 42%, and is provided by the Class A2 (14.4%), Class A3 notes (4.8%), Class A4 notes (8.2%), Class B1 notes (4.4%), Class B2 notes (1.8%) and Class C notes (8.4%). Some of the EUR32.8 million proceeds from the subordinated notes will be used to pay certain initial expenses of the issuer and will therefore not be available as subordination. This transaction is the 14th European CLO to be managed by Harbourmaster Capital Limited. The expected ratings also take into account the quality and diversity of the portfolio of assets, which are selected by Harbourmaster Capital Limited, subject to the guidelines outlined in the collateral management agreement. The guidelines limit the collateral manager's portfolio allocations with respect to obligor, industry and asset type. On Oct. 17, 2007, Fitch upgraded Harbourmaster Capital Limited to a CDO Asset Manager Rating of 'CAM1-' for leveraged loans, based on the manager's solid track record and superior performance of its CLOs, superior access to collateral and experience in distressed debt workout. The issuer is a company with limited liability, incorporated under the laws of the Netherlands. The net proceeds from the note issuance are used to purchase a portfolio of primarily European senior secured loans. =========== N O R W A Y =========== GEOKINETICS INC: Posts US$1.5 Million Net Loss in Third Quarter --------------------------------------------------------------- Geokinetics Inc. has announced its financial results of operations for the third quarter and first nine months of 2007. Highlights include: -- Increased revenue by 78% and 104% for the three and nine months ending Sept. 30, 2007, respectively. -- EBITDA before one-time, non-recurring charges of US$3.2 million was US$12.4 million for the quarter ended Sept. 30, 2007, up from EBITDA before one-time, non- recurring charges of US$1.4 million (acquisition costs) of US$4.0 million for the quarter ended Sept. 30, 2006. -- Net income before one-time, non-recurring charges for the third quarter was US$1.7 million, compared to a net loss before one-time, non-recurring charges of US$0.5 million in the same quarter last year. -- Prepared and outfitted new crew to support a new ocean bottom cable (OBC) offshore project in Australia, which commenced in October, increasing crew capacity to 23. -- Invested US$43 million in the third quarter of 2007 to increase channel count for improved efficiency in the United States and provide the new Sercel SeaRay OBC system for the new crew in Australia, all part of the company's US$101 million capital expenditure plan for 2007. -- Increased backlog to US$381 million at Sept. 30, 2007, from US$321 million at the end of the second quarter and US$232 million at Sept. 30, 2006 Three Months Results In the third quarter ended Sept. 30, 2007, revenue increased 78% to US$89.6 million compared to US$50.4 million for the third quarter of 2006. Revenue growth was primarily the result of the Grant Geophysical, Inc. acquisition and greater demand driving improvements in pricing and contract terms. The company had a net loss to common stockholders of US$1.5 million, or US$(0.15) per diluted common share, in the third quarter of 2007, compared to a net loss of US$1.9 million, or US$(0.36) per diluted common share, for the same quarter in 2006. The third quarter loss in 2007 was primarily due to US$3.2 million in one-time, non- recurring charges with respect to severance related to the departure of senior executives, including the company's President and Chief Executive Officer and the restructuring of the company's data processing business segment. The third quarter loss in 2006 was primarily due to US$1.4 million of costs incurred to acquire Grant. Before these one-time, non- recurring charges, EBITDA increased to US$12.4 million for the third quarter of 2007, compared to US$4.0 million in the third quarter of 2006. Share and per share amounts are reflective of the company's one for ten reverse stock split which occurred in November 2006. Nine-Month Results Revenue for the nine months ended Sept. 30, 2007 increased 104% to US$272.1 million compared to US$133.3 million for the nine months ended Sept. 30, 2006. For the nine months ended Sept. 30, 2007, the company had a net loss to common stockholders of US$11.8 million, or US$1.50 per fully diluted common share, compared to net income to common stockholders of US$2.0 million, or US$0.34 per diluted common share, during the nine months ended Sept. 30, 2006. The net loss in 2007 was primarily due to one-time, non-recurring charges of US$6.9 million in the second quarter related to the redemption of the company's Floating Rate Notes, the previously noted US$3.2 million of non-recurring charges in the third quarter, the impact of severe weather conditions, and an international job which was terminated after being declared force majeure by the customer. Before one-time, non-recurring charges, EBITDA was US$32.0 million in the nine months ended Sept. 30, 2007, compared to US$14.6 million for the same period in 2006, an increase of 119%. Share and per share amounts are reflective of the company's one for ten reverse stock split which occurred in November 2006. Backlog Increases The company's backlog at the end of the third quarter reached a new quarterly high of US$381 million, up from US$321 million at June 30, 2007, and US$232 million at the end of the third quarter of 2006. Although clients may cancel service contracts on short notice, the company's order book represents revenue visibility from customer commitments through 2007 and well into 2008. Approximately US$209 million of the backlog is related to international business (excluding Canada), with the remaining US$172 million in North America. Of the North American backlog, approximately US$159 million represents work for the company's crews in the United States. Operations Overview During the third quart