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 Wednesday, November 21, 2007, Vol. 8, No. 231 Headlines A U S T R I A F & B TEXTILHANDEL: Vienna Court Orders Business Shutdown HANUSEK BAU: Vienna Court Orders Business Shutdown INWESTED ASSET: Claims Registration Period Ends Nov. 28 KABELTRASSENBAU-MONTAGE: Claims Registration Period Ends Dec. 21 SANTORINI GASTGEWERBE: Claims Registration Period Ends Nov. 28 STERING GMBH: Graz Court Orders Business Shutdown TE-DU BAUG: Vienna Court Orders Business Shutdown VISEMA INFORMATIK: Claims Registration Period Ends Nov. 30 B E L G I U M ADVANCED MICRO: Secures US$622 Mln Investment from Mubadala Unit NUANCE COMMS: Posts $3.4 Mil. Net Loss in Quarter Ended Sept. 30 D E N M A R K TDC A/S: Names Jesper Ovesen New Chief Financial Officer F R A N C E BOMBARDIER RECREATIONAL: Moody's Withdraws Ratings on Term Loans DELPHI CORP: Reaches Agreement with Investors on Plan Amendments MTI TECHNOLOGY: Gets Final OK to Use DIP Funds & Cash Collateral SMOBY-MAJORETTE: MGA Confirms Interest Amidst Financial Woes SR TELECOM: Files for Creditor Protection under CCAA UTSTARCOM INC: Incurs US$55 Million Net Loss in Third Quarter F I N L A N D COMVERSE TECH: Consolidates Management Structure with Affiliate G E R M A N Y AUTOVERLEIH LEUTE: Claims Registration Ends January 12, 2008 CB MEZZCAP: S&P Puts BB- Ratings on Watch on Deferred Payments CHARLOTTENSTRASSE VERWALTUNGS: Creditors' Meeting Set for Dec. 4 CHRYSLER LLC: Officially Seals New Labor Agreement with UAW CHRYSLER LLC: Jeep Leads Growth Outside North America in 2007 DURA AUTOMOTIVE: U.S. Trustee Objects to Chapter 11 Plan DURA AUTOMOTIVE: Noteholders Support U.S. Trustee's Objections DURA AUTOMOTIVE: Second Lien Group Objects to Chapter 11 Plan ERS GMBH: Claims Registration Ends January 7, 2008 HOHNRATH PRINT: Claims Registration Period Ends Jan. 16, 2008 KROONFLOR GMBH: Claims Registration Period Ends December 13 MAKE COMMUNICATION: Claims Registration Period Ends December 7 MERTON REAL: Creditors' Meeting Slated for Dec. 10 MUELLER TRANSPORTE: Claims Registration Ends January 7, 2008 PORTFOLIO GREEN: S&P Rates Classes F and G Notes at B REISEMOBIL CENTRUM: Claims Registration Period Ends November 26 SYBAU BAUTRAEGER: Claims Registration Period Ends November 29 UKRA BAU: Claims Registration Ends January 2, 2008 WLG LOGISTIK: Creditors' Meeting Slated for Dec. 18 H U N G A R Y BAKONY MUVEK: Failed Talks & Asset Sale Trigger Liquidation I R E L A N D AFFILIATED COMPUTER: Extends E-ZPass New Hampshire Toll Contract I T A L Y DANA CORP: Gets Court Approval to Settle 7,500 Asbestos Claims PARMALAT SPA: Could Get EUR3.1 Billion from Claims Settlement PARMALAT SPA: Italian Prosecutors Pursue BofA Link Evidence TISCALI SPA: Hikes Capital by EUR150 Mln to Repay Pipex Loan XEROX CORP: Solid Position Prompts Moody's to Lift Ratings K A Z A K H S T A N ALTER EGO: Proof of Claim Deadline Slated for December 18 BOLASHAK LLP: Creditors Must File Claims December 12 COMPANY S-SERVICE: Claims Filing Period Ends December 18 COPY CITY: Creditors' Claims Due on December 18 DASK SECURITY: Claims Registration Ends December 18 DESIGN STROY: Proof of Claim Deadline Slated for December 12 LABO OJSC: Creditors Must File Claims December 18 TECH TRUST: Claims Filing Period Ends December 18 UYUK TRADE: Creditors' Claims Due on December 18 YASSY JER: Claims Registration Ends December 12 K Y R G Y Z S T A N BISHKEKENERGOCOMPLEX LLC: Creditors Must File Claims by Dec. 26 L U X E M B O U R G AGILENT TECHNOLOGIES: Board Approves Share-Repurchase Program AGILENT TECH: Moody's Says Stock Repurchase Won't Affect Ratings AGILENT TECH: Earns US$180 Mln in Fourth Quarter Ended Oct. 31 EVRAZ GROUP: Acquires Gazprom's Stake in Large Diameter Pipe N E T H E R L A N D S DISTINCT EUROPE: Fitch Affirms and Withdraws Low-B Ratings JUBILEE CDO VIII: Fitch Holds BB Ratings on Class E Notes KONINKLIJKE AHOLD: Reacquires Shares for EUR51.94 Million R U S S I A CONSUMER FINANCE: Fitch Ratings Holds B- IDR with Stable Outlook EVRAZ GROUP: Acquires Gazprom's Stake in Large Diameter Pipe HYNIX SEMICON: Creditors Plans to Sell Convertible Bonds HYNIX SEMICON: 3Q Consolidated Revenue Up 24% to KRW2.44 Tril. KAUCHUK CJSC: Asset Sale Set Dec. 10, 2007 KRASNOSLOBODSKAYA PMK-398: Creditors' Claims Due Jan. 10, 2008 OGK-5 OAO: Enel SpA Launches Buyout Offer LOCKO BANK: Fitch Lifts IDR to B on Stable Franchise Growth OTRADNENSKIJ OJSC: Court Hearing Set Feb. 5, 2008 ROSNEFT OIL: Forms Joint Venture with Sinopec Corp ROSNEFT OIL: To Refine 1 Million Barrels of Oil Daily in 2008 SEVERYANKA CJSC: Creditor Must File Claims by Dec. 10, 2007 TOROPETSKIJ BREAD-BAKING: Court Hearing Set Feb. 19, 2008 S P A I N DREAM FRUITS: In Talks with Financial Firms to Avert Bankruptcy S W I T Z E R L A N D 2P MANAGEMENT: Zug Court Starts Bankruptcy Proceedings ASIAN HEALTH: Creditors' Liquidation Claims Due by December 14 DREHSCHREIBE LIESTAL: Creditors Must File Claims by December 1 GASSER HOCH- UND TIEFBAU: Creditors Must File Claims by Nov. 30 IF JSC: Solothurn Court Closes Bankruptcy Proceedings MICHEL KAUFMANN: Creditors Must File Claims by December 24 RESCOSOL JSC: Solothurn Court Closes Bankruptcy Proceedings SILBERFLOTEN LLC: Creditors Must File Claims by November 28 SPIRI TRANSPORT: Creditors' Liquidation Claims Due by December 3 WOLLFAMILY LLC: Zug Court Starts Bankruptcy Proceedings T U R K E Y TURK EKONOMI: Fitch Affirms Low-B IDR on Parent Support U K R A I N E CORN-IMPULSE LLC: Creditors Must File Claims by November 23 HYDRO-CRIMEA LLC: Claims Filing Bar Date Set November 23 KRASILOVKA AGRICULTURAL: Creditors Must File Claims by Nov. 24 LESOVAYA DACHA: Creditors Must File Claims by November 23 NEW ERA: Creditors Must File Claims by November 23 PESKOVKA PLANT: Claims Filing Bar Date Set November 24 TRANS CAPITAL: Creditors Must File Claims by November 23 VELIKOPOLOVCHANSKOYE LLC: Creditors Must File Claims by Nov. 23 U N I T E D K I N G D O M 4 ALL: Duncan R. Beat Leads Liquidation Procedure ACCRETIVE LTD: Claims Filing Period Ends December 13 ALDER BUILDINGS: Claims Filing Period Ends December 7 ALUMINIUM CONSTRUCTION: Claims Filing Period Ends December 17 AXON FINANCIAL: Fitch Puts Junks Ratings on Various Notes AXON FIN'L: Poor Portfolio Market Value Cues S&P's Junk Ratings BANK BRASSERIE: Claims Filing Period Ends Jan. 6, 2008 BEAR STEARNS: Foreign Reps. File Opening Appellant Brief BEAR STEARNS: Massachusetts Files Admin. Complaint Against BSAM BRITISH AIRWAYS: Iberia Receives Takeover Bid from Gala Capital COTT CORP: Failing Financial Metrics Cues Moody's to Cut Ratings POPE & TALBOT: Files Chapter 11 Petition in Delaware POPE & TALBOT: Case Summary & 29 Largest Unsecured Creditors REMY WORLDWIDE: Bankruptcy Court Approves CVC Settlement Pact REMY WORLDWIDE: Can Assume Caterpillar Inventory Agreement SANYO ELECTRIC: To Invest JPY210 Bil. in Two Profitable Units SANYO ELECTRIC: Lead in Microwave Cues BAIC to Order Recall WALDON RADIO: Brings In Liquidators from Menzies Corporate * Begbies Traynor Buys Insolvency Division of Bartfields Ltd ********* ============= A U S T R I A ============= F & B TEXTILHANDEL: Vienna Court Orders Business Shutdown --------------------------------------------------------- The Trade Court of Vienna entered Oct. 23 an order shutting down the business of LLC F & B Textilhandel (FN 170158h). Court-appointed estate administrator Christiane Pirker 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. Christiane Pirker Hasenhutgasse 9 Haus 3 1120 Vienna Austria Tel: 817 57 57 Fax: 817 57 55 17 E-mail: Dr.Christiane.Pirker@chello.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 9 (Bankr. Case No 4 S 116/07x). HANUSEK BAU: Vienna Court Orders Business Shutdown -------------------------------------------------- The Trade Court of Vienna entered Oct. 19 an order shutting down the business of LLC HANUSEK Bau- und Gastronomie (FN 262738f). Court-appointed estate administrator Georg Unger 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. Georg Unger c/o Dr. Arno Maschke Mariahilfer Strasse 50 1070 Vienna Austria Tel: 523 62 00 Fax: 526 72 74 E-mail: office@sup.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Sept. 18 (Bankr. Case No 4 S 109/07t). Arno Maschke represents Dr. Unger in the bankruptcy proceedings. INWESTED ASSET: Claims Registration Period Ends Nov. 28 ------------------------------------------------------- Creditors owed money by JSC inWESTed Asset Management & Beteiligung (FN 254491b) have until Nov. 28 to file written proofs of claim to court-appointed estate administrator Stephan Riel at: Dr. Stephan Riel c/o Dr. Alexander Schoeller Landstrasser Hauptstrasse 1/2 1030 Vienna Austria Tel: 01/713 44 33 Fax: 01/713 10 33 E-mail: kanzlei@jsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:30 a.m. on Dec. 12 for the examination of claims. The meeting of creditors will be held at: The Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria Headquartered in Gerasdorf bei Vienna, Austria, the Debtor declared bankruptcy on Oct. 22 (Bankr. Case No. 36 S 126/07g). Alexander Schoeller represents Dr. Schoeller in the bankruptcy proceedings. KABELTRASSENBAU-MONTAGE: Claims Registration Period Ends Dec. 21 --------------------------------------------------------------- Creditors owed money by LLC Elephant (FN 143801y) have until Nov. 30 to file written proofs of claim to court-appointed estate administrator Peter Frisch at: Dr. Peter Frisch Braunauerstrasse 22 4950 Altheim Austria Tel: 07723/41213 Fax: 07723/41213-4 E-mail: office@ra-frisch.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Dec. 12 for the examination of claims. The meeting of creditors will be held at: The Land Court of Ried im Innkreis Hall 101 First Floor Ried im Innkreis Austria Headquartered in Maria Schmolln, Austria, the Debtor declared bankruptcy on Oct. 19 (Bankr. Case No. 17 S 39/07b). SANTORINI GASTGEWERBE: Claims Registration Period Ends Nov. 28 -------------------------------------------------------------- Creditors owed money by LLC Santorini Gastgewerbe (FN 119751f) have until Nov. 28 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: 01/505 88 31 Fax: 01/505 94 64 E-mail: kanzlei@kainz-wexberg.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Dec. 12 for the examination of claims. The meeting of creditors will be held at: The Land Court of Korneuburg Room 204 Second Floor Korneuburg Austria Headquartered in Klosterneuburg, Austria, the Debtor declared bankruptcy on Oct. 23 (Bankr. Case No. 36 S 127/07d). Walter Kainz represents Dr. Wexberg in the bankruptcy proceedings. STERING GMBH: Graz Court Orders Business Shutdown ------------------------------------------------- The Land Court of Graz entered Oct. 19 an order shutting down the business of LLC Stering GmbH & Co KEG (FN 136174g). Court-appointed estate administrator Marisa Schamesberger 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. Marisa Schamesberger Hofgasse 6 Second Floor 8010 Graz Austria Tel: 0316/842184 Fax: 0316/8421848 E-mail: kanzlei@ra-hofgasse6.com Headquartered in Stiwoll, Austria, the Debtor declared bankruptcy on Oct. 15 (Bankr. Case No 25 S 111/07x). TE-DU BAUG: Vienna Court Orders Business Shutdown ------------------------------------------------- The Trade Court of Vienna entered Oct. 19 an order shutting down the business of LLC Te-Du Baug (FN 283322a). Court-appointed estate administrator Katharina Widhalm-Budak 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. Katharina Widhalm-Budak Schulerstrasse 18 1010 Vienna Austria Tel: 513 10 37 Fax: 513 10 37 22 E-mail: widhalm-budak@anwaltsteam.at Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 4 (Bankr. Case No 28 S 112/07k). VISEMA INFORMATIK: Claims Registration Period Ends Nov. 30 ---------------------------------------------------------- Creditors owed money by LLC Visema Informatik (FN 210443a) have until Nov. 30 to file written proofs of claim to court-appointed estate administrator Walter Kainz at: 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 10:15 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. 22 (Bankr. Case No. 28 S 119/07i). ============= B E L G I U M ============= ADVANCED MICRO: Secures US$622 Mln Investment from Mubadala Unit ---------------------------------------------------------------- AMD has received an investment from a subsidiary of Mubadala Development Company. Mubadala invested approximately $622 million, receiving 49 million newly-issued shares at a price per share of $12.70, the closing price of AMD common stock on Nov. 15, 2007. AMD received approximately $608 million, after reimbursing Mubadala for approximately $14.6 million in expenses. AMD will use the net proceeds from the sale of the shares of common stock for general corporate purposes including accelerating its long- term, customer-focused growth strategy by investing in R&D, product innovations and manufacturing excellence. "We proudly welcome Mubadala, a world-class investor, to the AMD shareholder family. This investment strengthens AMD's ability to deliver customer-centric innovation and choice to the marketplace, creating greater value for all of our shareholders," said AMD chairman and CEO Hector Ruiz. "AMD is a great fit for Mubadala's investment approach - a spirited competitor and innovator led by a strong and visionary management team," Khaldoon Khalifa Al Mubarak Mubadala CEO and managing director said. "We see significant opportunities for long-term growth and value creation." This is a non-controlling, minority investment. Mubadala will not receive any board representation as part of the deal. This transaction does not present a controlling investment or acquisition subject to review by the Committee on Foreign Investment in the U.S. Merrill Lynch acted as financial advisor to AMD. Lehman Brothers acted as lead financial advisor to Mubadala; Morgan Stanley acted as co-financial advisor. About Mubadala Development Company Headquartered in Abu Dhabi, United Arab Emirates, Mubadala Development Company �- http://www.mubadala.ae/-- is a strategic investment and development company that is wholly-owned by the Abu Dhabi Government. The company has an international portfolio, with interests in sectors such as energy, heavy industry, telecommunications, infrastructure, and aerospace. About Advanced Micro Devices Inc. Headquartered in Sunnyvale, California, Advanced Micro Devices Inc. -- http://www.amd.com/-- (NYSE: AMD) designs and manufactures microprocessors and other semiconductor products. The company has a facility in Singapore. It has sales offices in Belgium, France, Germany, the United Kingdom, Mexico and Brazil. * * * As reported in the Troubled Company Reporter on Aug. 14, 2007, Standard & Poor's Ratings Services affirmed its B/Negative/-- corporate credit rating on Sunnyvale, California-based Advanced Micro Devices Inc. At the same time, S&P assigned its 'B' rating to the company's $1.5 billion 5.75% senior convertible notes due 2012, and raised the rating on the company's existing senior unsecured debt to 'B' from 'B-', because the company no longer has secured debt in its capital structure. As reported in the Troubled Company Reporter on Aug. 13, 2007, Fitch Ratings has assigned a 'CCC+/RR6' rating to Advanced Micro Devices Inc.'s private placement of $1.5 billion 5.75% convertible senior notes due 2012. Fitch also affirmed the company's Issuer Default Rating at 'B'; and Senior unsecured debt at 'CCC+/RR6'. As reported in the Troubled Company Reporter on July 26, 2007, Standard & Poor's Ratings Services affirmed its 'B/Negative/--' corporate credit rating on Sunnyvale, California-based Advanced Micro Devices Inc. At the same time, Standard & Poor's lowered the rating on the company's 7.75% senior notes due 2012 to 'B-' from 'BB-', which is now rated the same as the company's other senior unsecured notes, reflecting release of the collateral securing the issue. NUANCE COMMS: Posts $3.4 Mil. Net Loss in Quarter Ended Sept. 30 ---------------------------------------------------------------- Nuance Communications Inc. disclosed financial results for the fourth fiscal quarter ended Sept. 30, 2007. On a GAAP basis, Nuance recognized a net loss of $3.4 million in the quarter ended Sept. 30, 2007, compared with a net loss of $7.2 million in the quarter ended Sept. 30, 2006. Nuance reported revenues of $179.9 million in the quarter ended Sept. 30, 2007, a 40% increase over revenues of $128.1 million in the quarter ended Sept. 30, 2006. Using a non-GAAP measure, the company reported non-GAAP revenue of approximately $187.2 million, up 41% from the same period last year. Using a non-GAAP measure, Nuance reported non-GAAP net income of $37.0 million for the period ending Sept. 30, 2007, compared to non-GAAP net income of $26.3 million in the quarter ended September 30, 2006. These GAAP figures exclude revenues lost to purchase accounting in conjunction with the company's acquisition of BeVocal Inc., VoiceSignal Technologies Inc. and Tegic Communications. The non-GAAP net income amount excludes non-cash taxes and interest, amortization of intangible assets, non-cash amortization of stock-based compensation, and acquisition-related transition and integration costs and charges. "Nuance ended 2007 on a particularly high note, delivering robust performance in several major product areas and producing strong organic revenue growth," said Paul Ricci, chairman and chief executive officer of Nuance. "Our results in the fourth quarter reflect favorable trends and momentum the company experienced throughout 2007. In particular, we have witnessed strong demand from customers and partners across our diverse speech markets, improved operational performance through expense discipline and operating leverage, and enjoyed strategic and operational synergies from recent acquisitions. Combined, these factors delivered results for the quarter and the year above expectations and positioned Nuance for continued achievement in 2008." At Sept. 30, 2007, the company's consolidated balance sheet showed $2.20 billion in total assets, $1.31 billion in total liabilities, and $895.8 million in total shareholders' equity. About Nuance Communications Based in Burlington, Massachusetts, Nuance Communications Inc. (NASDAQ: NUAN) -- http://www.nuance.com/-- provides speech and imaging solutions for businesses and consumers around the world. * * * Nuance Communications still carries Standard & Poor's Ratings Services 'B+' long term foreign issuer credit and 'B+' long term local issuer credit ratings, which were placed on March 22, 2007. S&P said the outlook is positive. ============= D E N M A R K ============= TDC A/S: Names Jesper Ovesen New Chief Financial Officer -------------------------------------------------------- The Board of Directors of TDC A/S has decided to appoint Jesper Ovesen, 50, as chief financial officer and member of the executive committee as from Jan. 1, 2008. Mr. Ovesen, who is a certified public accountant, has since Jan. 1, 2007 been chief executive officer in KIRKBI A/S. In the period 2004-2006 he was chief financial officer in LEGO Holding A/S. He has earlier been chief financial officer in Danske Bank and Novo Nordisk. Mr. Ovesen is a member of the Board of Directors of among others Skandinaviska Enskilda Banken AB, FLSmidth & Co A/S, Merlin Entertainments S. a. r. l. and MODULEX A/S. He succeeds the present chief financial officer Hans Munk Nielsen, who wants to leave TDC A/S by the end of 2007. About TDC A/S Headquartered in Copenhagen, Denmark, TDC A/S -- http://www.tdc.dk/-- through its subsidiaries and affiliates, provides communication solutions in Europe. It provides communication services in Denmark and Switzerland, and has a significant presence in selected Northern and Central European telecommunication markets. It operates through five business lines. * * * As reported in the TCR-Europe on June 27, 2007, Fitch Ratings affirmed TDC A/S's Long-term Issuer Default rating at 'BB-' including TDC's and NTC Holdings' debt. The Short-term IDR is affirmed at 'B'. All the ratings are removed from Rating Watch Negative. A Stable Outlook is assigned to the Long-term IDR. In April 2007, in connection with the 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, Moody's Investors Service confirmed its Ba3 Corporate Family Rating for TDC A/S. Moody's also assigned a Ba3 Probability-Of-Default-rating to the company. * Issuer: TDC A/S Projected Old New LGD Loss-Given Debt Issue Rating Rating Rating Default ---------- ------- ------- ------ ---------- US$6-billion Sr. Unsecured Medium-Term Note Program Ba3 B1 LGD5 81% DEM500-billion 5% Sr. Unsecured Ba3 B1 LGD5 81% Regular Bond/ Debenture Due 2008 JPY3-billion 1.28% Sr. Unsecured Regular Bond/ Debenture Due 2008 Ba3 B1 LGD5 81% EUR350-million 5.625% Senior Unsecured Regular Bond/ Debenture Due 2009 Ba3 B1 LGD5 81% EUR750-million 6.5% Senior Unsecured Regular Bond/ Debenture Due 2012 Ba3 B1 LGD5 81% Senior Secured Bank Credit Facility Ba2 Ba2 LGD3 34% At the same time, Standard & Poor's Ratings Services affirmed all its ratings on Danish telecoms operator TDC A/S and its parent company Nordic Telephone Co. Holding ApS, including the 'BB-/B' corporate credit ratings on TDC. S&P said the outlook is stable. =========== F R A N C E =========== BOMBARDIER RECREATIONAL: Moody's Withdraws Ratings on Term Loans ---------------------------------------------------------------- Moody's Investors Service withdrew its proposed ratings on Bombardier Recreational Products Ba2 senior secured revolver and B1 senior secured term loan assigned on June 2007, following the company's decision to postpone the offering due to current market conditions. At the same time, Moody's affirmed BRP's B1 corporate family rating, B1 probability of default rating, the existing Ba2 rating of the senior secured revolver due 2011, and the B1 rating of the senior secured term loan due 2013. The rating outlook continues to be negative. "The negative outlook principally reflects Moody's concern that consumer spending both in North America and in Europe, but primarily in the United States, will soften in the near term putting pressure on the company's operating performance," said Kevin Cassidy, Vice President/Senior Credit Officer at Moody's Investors Service. "Although Moody's recognizes the operational improvements the company has made over the last couple of years, it has returned most of its profitability to shareholders in the past," noted Cassidy. He further stated that "Moody's expects that the company will again lever up to improve shareholder return once the capital markets improve" BRP's rating could be downgraded if adjusted leverage approaches 5.5x either because of moderating operating performance or a material increase in leverage or a combination of both. On the other hand, "the rating outlook could be stabilized if BRP continues to improve its operating performance despite an expected decline in consumer spending and maintains adjusted leverage around 5x, even if it levers up for a dividend/share repurchase," noted Cassidy. Ratings withdrawn: -- CDN$250 million senior secured revolver, due 2012, at Ba2; -- CDN$1,125 million senior secured term loan, due 2013, at B1; Ratings affirmed/assessments revised: -- Corporate family rating at B1; -- Probability of default rating at B1; -- CDN$250 million senior secured revolver, due 2011, at Ba2 (to LGD 2, 28% from LGD 2, 25%); -- $720 million senior secured term loan, due 2013, at B1(to LGD 4, 54% from LGD 4, 51%) With corporate headquarters in Valcourt, Quebec, Bombardier Recreational Products Inc. is a leading designer, manufacturer, and distributor of motorized recreational products worldwide including operations in Australia, Brazil, France, Japan, the Netherlands, Norway, the United Kingdom, and the United States, among others. Net sales for the twelve-month period ended July 2007 were approximately CDN$2.8 billion. DELPHI CORP: Reaches Agreement with Investors on Plan Amendments ---------------------------------------------------------------- Delphi Corp. has reached agreement with General Motors Corp. and its Plan Investors on amendments to its Joint Plan of Reorganization, Global Settlement Agreement, and Master Restructuring Agreement between Delphi and GM, and the New Equity Purchase and Commitment Agreement with Delphi's Plan Investors led by an affiliate of Appaloosa Management L.P. Delphi filed these proposed amendments in the U.S. Bankruptcy Court for the Southern District of New York as revisions to the appendices to the company's Disclosure Statement. Conforming potential amendments to Delphi's Disclosure Statement will be filed no later than Nov. 16, 2007. These filings are being made in accordance with a scheduling order entered by the Bankruptcy Court last week, which provides for the resumption on Nov. 29, 2007, of the Disclosure Statement hearing commenced in Oct. 2007. Pursuant to the Bankruptcy Court's order, the filings may be further amended by the company on Nov. 28 and remain subject to approval of the Bankruptcy Court. Appaloosa and all of the other Plan Investors have delivered a fully executed bid letter to the company in connection with the revised Investment Agreement amendment. The effectiveness of the amendment is subject to various conditions including Appaloosa being reasonably satisfied with any changes to the Disclosure Statement when the proposed amendments are filed later this week. "T[he] filings, which have been agreed upon by GM and all of our Plan Investors, are the cornerstones of a plan of reorganization that we believe can be achieved during this challenging capital markets environment," said John Sheehan, Delphi vice president and chief restructuring officer. "We have agreed to very focused potential amendments to our reorganization plan which continues to provide for full recoveries for unsecured creditors at plan value as well as fair consideration for Delphi's equity holders." As with Delphi's Oct. 29 filing, these potential amendments reflect current market conditions, commensurate changes to the Company's emergence capital structure and form of plan currency contemplated for stakeholder distributions, an effective reduction of less than 5% in plan value to reflect macroeconomic and industry conditions and uncertainties and reductions in stakeholder distributions to some junior creditors and interest holders. Further, the potential amendments reflect changes required by Delphi's Plan Investors to obtain their endorsement of the Plan, the company's settlements with GM and its U.S. labor unions, the company's emergence business plan and related agreements. The potential amendments include the following changes to the Plan Investors' direct investment and certain stakeholder recoveries: REVISED POTENTIAL PARTY ORIGINAL PLAN AMENDMENT (11/14/07) ----- ------------- -------------------- Net Funded $7.1 Billion $5.2 Billion Debt Plan Equity Total enterprise Total enterprise Value value of $13.9B, value of $13.4B, which after deducting which after deducting net debt and warrant net debt and warrant value results in value results in distributable value distributable value of $6.6 billion (or of $8.1 billion (or approximately $45.00 approximately $61.72 per share based on per share based on approx. 147.6 million approx. 131.3 million shares) shares) Plan Direct Investment Direct Investment Investors * Purchase $400MM * Purchase $400MM of preferred stock of preferred stock convertible at an convertible at an assumed enterprise assumed enterprise value of $11.75B value of $10.25B (or 30.1% discount (or 37.8% discount from Plan Equity from Plan Equity Value) Value * Purchase $400MM * Purchase $400MM of preferred stock of preferred stock convertible at an convertible at an assumed enterprise assumed enterprise value of $12.80B value of $10.75B (or 14.3% discount (or 31.6% discount from Plan Equity from Plan Equity Value) Value) * Purchase $175MM * Purchase $175MM of New Common Stock of New Common Stock at an assumed plan at an assumed plan value of $12.8B value of $10.25B (or 14.3% discount (or 37.8% discount from Plan Equity from Plan Equity Value) Value) GM Recovery of $2.7B Recovery of $2.7B * $2.7B in Cash * $750MM in Cash * $750MM in second lien note * $1.1B in junior convertible preferred stock ($1.2B in liquidation value) Unsecured Par + accrued recovery Par + accrued recovery Creditors at Plan value of $13.9B at Plan value of $13.4B * 80% in New Common * 75.5% in New Common Stock valued stock valued at at Plan Equity Value Plan Equity Value * 20% in Cash * 24.5% through pro rata participation in the Discount Rights an assume enterprise value of $10.25B (or 37.8% discount from Plan Equity Value) TOPrS Par + accrued recovery Par only recovery at at Plan value of $13.9B Plan value of $13.4B * 100% in New Common * 75.5% in New Common Stock valued at Stock valued at $45 per share Plan Equity Value * 24.5% through pro rata participation in the Discount Rights an assume enterprise value of $10.25B (or 37.8% discount from Plan Equity Value) Existing Par Value Rights Par Value Rights Common Stockholders * Right to acquire * Right to acquire approx. 12,711,111 approx. 20,770,345 shares of New Common shares of New Common Stock at a purchase Stock at a purchase price of $45.00 price struck at per share Planned Equity Value Warrants Warrants * Warrants to acquire * Warrants to acquire an additional 5% 6,908,758 shares of of New Common Stock New Common Stock at $45.00 per share (which comprises 5% of exercisable for five the fully diluted New years after emergence Common Stock) exercisable for 5 years after emergence struck at 32.4% premium of Plan Equity Value * Warrants to acquire $1.0 billion of New Common Stock exercisable for six months after emergence struck at 8.2% premium to Plan Equity Value Direct Distribution No provision for Direct Distribution * 1,476,000 shares of New Common Stock Participation in No Provision for Discount Participation in Rights Offering Discount Rights Offering * Right to purchase 40,845,016 shares of New Common Stock at a purchase price of $38.56 per share A full-text copy of blacklined portions of Delphi's Disclosure Statement, reflecting the Nov. 14 Proposed Amendments, is available for free at: http://bankrupt.com/misc/Delphi_DSAmendments_11-14-07.pdf Although the potential amendments are supported by GM and the Plan Investors, Delphi has been advised by both of its Statutory Committees that they will no longer support the Company's Plan if amended as proposed. The Creditors' Committee opposes changes to the Plan made since the potential amendments filed on Oct. 29, particularly the proposed increase in consideration to the Plan Investors (as a result of the larger discounts to Equity Plan Value agreed to by the company in exchange for the Plan Investors' proposed investment), the form of distributions to GM and proposed addition of out-of-the-money warrants to common stockholders. The Equity Committee opposes changes from the original Plan filed on Sept. 6, which would reduce recoveries to common stockholders as contemplated in the potential amendments. Absent a consensual resolution of these concerns, both of the Delphi's Statutory Committees are expected to supplement the objections filed by each committee on Nov. 2 and seek other relief from the Bankruptcy Court. Delphi will continue to work toward a consensus among its principal stakeholders, including the Creditors' Committee and the Equity Committee, recognizing that such an outcome is not assured. In the event these amendments do not become effective, the original underlying agreements as approved by the Bankruptcy Court on Aug. 2 remain in effect. The company continues to pursue emergence from Chapter 11 during the first quarter of 2008. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of Mar. 31, 2007, the Debtors' balance sheet showed $11,446,000,000 in total assets and $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. The hearing to consider the adequacy of the Disclosure Statement started on Oct. 3, 2007 and has been continued to November 29. As reported in yesterday's Troubled Company Reporter, the Debtors are expected to file a revised Reorganization Plan and related documents on or before the Disclosure Statement hearing on November 29. (Delphi Bankruptcy News, Issue No. 96; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) MTI TECHNOLOGY: Gets Final OK to Use DIP Funds & Cash Collateral ---------------------------------------------------------------- The Hon. Erithe A. Smith of the U.S. Bankruptcy Court for the Central District of California gave M.T.I Technology Corporation authority, on a final basis, to borrow up to $5,000,000 in pospetition financing from Zinc Holdings LLC. The financing was part of an asset purchase agreement the Debtor signed with Zinc on Oct. 15, 2007, which provides for the sale of the Debtor's European companies. Under that purchase agreement, Zinc offered $5.5 million in cash plus assumption of certain limited obligations for all of the Debtor's interest in the European companies. The facility will mature on the earliest of: a) Dec. 21, 2007; b) the effective date of any plan of reorganization the Debtor may file; and c) the date of consummation of any sale. The Debtor will use the funds to finance working capital needs and capital expenditures and for other general corporate purposes. As adequate protection, the Debtor granted Zinc perfected security interests and liens in and on all of the Debtor's assets, including, without limitation all property constituting cash collateral, senior in priority to the prepetition liens and also senior in priority to all other security interests and liens, other than the liens and collateral of Well Fargo Bank, National Association. Cash Collateral Access The Debtor is also authorized, on a final basis, to access the cash collateral subject to prepetition security interests in favor of The Canopy Group Inc. and Wells Fargo through the termination date of the DIP financing. Canopy holds a $5,190,546 secured claim against the Debtor as of Oct. 9, 2007, while Wells Fargo holds a $1,711,670 secured claim against the Debtor as of Oct. 10, 2007. The prepetition lenders are granted perfected postpetition security interests in and liens on their collateral. Wells Fargo agrees to act as agent and bailee for the purposes of perfecting the liens of Zinc and Canopy. About MTI Technology Headquartered in Tustin, California, M.T.I. Technology Corp. -- http://www.mti.com/-- provides professional services and data storage for mid- to large-sized organizations. In addition, the company owns all of the issued and outstanding share capital of three European subsidiaries: MTI Technology GmbH in Germany, MTI Technology Limited in Scotland and MTI France S.A.S. in France. The company filed for Chapter 11 protection on Oct. 15, 2007 (Bankr. C.D. Calif. Case No. 07-13347). Scott C. Clarkson, Esq., at Clarkson, Gore & Marsella, A.P.L., represents the Debtor. Omni Management Group LLC serve as the Debtor's claim, noticing and balloting agent. No Official Committee of Unsecured Creditors has been appointed in this case to date. As of July 7, 2007, the Debtor had total assets of $64,002,000 and total debts of $58,840,000. SMOBY-MAJORETTE: MGA Confirms Interest Amidst Financial Woes ------------------------------------------------------------ MGA Entertainment confirmed its interest in Smoby-Majorette after it discovered that Smoby's financial situation was weaker than expected, The Financial Times reports citing Le Monde as its source. According to the report, a meeting was set Nov. 14, 2007, to enable MGA management to discuss the future of Smoby with the Commercial Court of Lons-le-Saunier. The court indicated that liquidation has not been ruled out, Financial Times relates. As previously reported in the TCR-Europe , the court placed Smoby-Majorette under receivership on Oct. 9, 2007, which ended the company's bankruptcy protection. The court blamed Smoby's buyer, MGA Entertainment, for failing to revive the company. The company said it plans to appeal the court's decision. Jean-Christophe Breuil, the former chairman and CEO of Smoby- Majorette, is undergoing investigation for allegedly misappropriating funds via foreign dummy companies. In a report by Florentin Collomp for Le Figaro early this month, MGA Entertainment said it is set to prepare a new recovery plan, which could involve: -- conversion of a EUR29 million loan into share capital; and -- an agreement between MGA and Smoby creditors over the repayment of its EUR270 million debt. The court-appointed administrators may decide whether to accept MGA's new recovery plan or to look for potential buyers. Deutsche Bank, Smoby's main creditor, is also contemplating on launching a buyout offer for Smoby, Le Figaro relates. As reported in the TCR-Europe on Oct. 10, 2007, MGA's debt restructuring negotiation with Smoby's creditor banks fell through and it failed to pay the EUR11 million it pledged to invest in Smoby. About Smoby Headquartered in Lavans les Saint-Claude, France, Smoby -- http://www.smoby.fr/-- specializes in the creation, development, production and distribution of toys for children from birth to age 10. Smoby has a presence in over 90 countries globally, with commercial and/or industrial operations in South America, Asia and throughout Europe. The Company's products are sold worldwide through a network of 18 subsidiaries, with 65% of sales generated outside of France. In France, the Company employs 1, 300 workers. The Commercial Court of Lons-le-Saunier opened bankruptcy proceedings against Smoby on March 19, 2007, upon the Debtor's request. Smoby was hoping to snag an investor who will inject fresh capital yet remain a minority, as the company grapples with a EUR330-million debt. The company reported a net loss of EUR15.87 million for the year ended March 31, 2006, compared with a net profit of EUR1.56 million in 2005. SR TELECOM: Files for Creditor Protection under CCAA ---------------------------------------------------- SR Telecom Inc. has filed for creditor protection under the Companies' Creditors Arrangement Act, with the Quebec Superior Court. On Nov. 8, the company disclosed that, further to the strategic review initiated on May 10, 2007, its Board of Directors had evaluated the company's strategic options and concluded that it is in the company's best interests to actively pursue the sale of the company and/or its assets. The company believes that CCAA protection will enable SR Telecom to better position itself for an acquisition. "Despite the CCAA filing, we remain focused on the design, delivery and deployment of our WiMAX solutions and are fully committed to ensuring the satisfaction of our customers around the world," Serge Fortin, President and CEO of SR Telecom, said. "The filing provides a framework in which to optimize and leverage our company's assets for all its stakeholders." In conjunction with the CCAA filing, the company reported that some 35 positions will be eliminated at its Montreal location and its other offices around the world. "We have taken the CCAA route to ensure the future of SR Telecom; the unfortunate side effect is that we must reduce our workforce," Mr. Fortin said. "We are maintaining appropriate staff levels to continue the development of our WiMAX solutions and sustain a strong level of customer support. This unfortunate, yet necessary, step will decrease our expenditures during the CCAA period and will reduce our operating cost base in order to facilitate an acquisition." SR Telecom believes that filing for protection is a preventive measure. Protection under CCAA will provide SR Telecom with the ability to operate without interruption and continue to serve its customers around the world. Management believes that the sale andrestructuring process will likely be completed during the first quarter of 2008. Going Concern Doubt There is substantial doubt about the appropriateness of the use of the going concern assumption because of the company's losses for the current and prior years, negative cash flows, reduced availability of supplier credit and lack of operating credit facilities. As such, the realization of assets and the discharge of liabilities and commitments in the ordinary course of business are subject to significant uncertainty. For the three and six months ended June 30, 2007, the company realized a net loss of CDN$14.9 million and CDN$27.1 million, respectively (CDN$115.6 million for the year ended Dec. 31, 2006), and used cash of CDN$9.2 million and CDN$21.6 million, respectively (CDN$45.2 million for the year ended Dec. 31, 2006) in its continuing operating activities. Going forward, the company will continue to require substantial funds as it continues the development of its WiMAX product offering. About SR Telecom Headquartered in Quebec, Canada, SR Telecom (TSX: SRX) -- http://www.srtelecom.com/-- delivers broadband wireless access (BWA) solutions that enable service providers to deploy voice, Internet and next-generation services in urban, suburban and remote areas. SR Telecom's products are currently deployed in more than 110 countries worldwide, including France. UTSTARCOM INC: Incurs US$55 Million Net Loss in Third Quarter ------------------------------------------------------------- UTStarcom, Inc. has reported financial results for the third quarter of 2007. Net sales for the third quarter 2007 were US$646 million. This US$108 million increase over the second quarter of 2007 was driven by strong sales in PCD as well as growth in our Broadband and Wireless business units. Gross margins for the third quarter of 2007 were 10%. The gross margins percentage was impacted by a much larger percentage of PCD sales, as well as approximately US$10 million of inventory reserves. The net loss for the third quarter was US$55 million, or a loss of US$0.46 per share. This compares to a loss of US$62 million in the second quarter of 2007 and US$43 million in the third quarter of 2006. Our third quarter cash and short term investments totalled US$644 million, an increase of US$116 million from the second quarter of 2007. For this quarter, cash and short-term investments include approximately US$115 million of investments that were previously accounted for as long term equity investments. "Our third quarter results do not yet reflect the benefits of changes we are in the process of implementing in UTStarcom," stated UTStarcom Chief Operations Officer, Peter Blackmore. Mr. Blackmore added, "We have strong technology in IP communications and are building momentum in IPTV, NGN and optical infrastructure and access devices. Management has a high sense of urgency about improving the operational capabilities of the company to ensure profitable growth. Our conference call will give details about our progress on this." Guidance for the fourth quarter of 2007 -- Revenue flat to slightly up compared to third quarter 2007 -- Gross margins up 2 to 4 points from third quarter 2007 -- Operating expenses (excluding any special charges) down sequentially About UTStarcom, Inc. Headquartered in Alameda, California, UTStarcom Inc. (Nasdaq: UTSI) -- http://www.utstar.com/-- provides IP-based, end-to-end networking solutions and international service and support. The company sells its broadband, wireless, and handset solutions to operators in both emerging and established telecommunications markets around the world. The company maintains operations in France, Italy, Spain, China, India, Japan, Argentina and Brazil. * * * As reported on Jan. 18, 2007, noteholders of UTStarcom Inc.'s 7/8% convertible subordinated notes due 2008 agreed to the proposed amendments of certain provisions of the indenture pursuant to which the notes were issued and a waiver of rights to pursue remedies available under the indenture with respect to certain default. Under the terms of the indenture, during the period beginning Jan. 9, 2007, and ending 5:30 p.m., May 31, 2007, any failure by the company to comply with certain provisions will not result in a default or an event of default, and the Notes will accrue an additional 6.75% per annum in special interest from and after Jan. 9, 2007, to the maturity date of the Notes, unless the Notes are earlier repurchased or converted. ============= F I N L A N D ============= COMVERSE TECH: Consolidates Management Structure with Affiliate --------------------------------------------------------------- Comverse Technology Inc. continued its organizational realignment, through which certain positions at Comverse Technology and its 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 CEO. "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," Mr. Dahan said. The consolidation represents another step in creating a more functional and agile organization, 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 after 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 Inc. Based in Woodbury, New York, 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. 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. * * * In March 2006, Standard & Poor's placed the company's long-term foreign and local issuer credit ratings at BB-. The ratings still hold to date. ============= G E R M A N Y ============= AUTOVERLEIH LEUTE: Claims Registration Ends January 12, 2008 ------------------------------------------------------------ Creditors of Autoverleih Leute GmbH have until Jan. 12, 2008, to register their claims with court-appointed insolvency manager Thomas Steger. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Jan. 25, 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 Bad Neuenahr-Ahrweiler Hall 4 Wilhelmstrasse 55-57 53474 Bad Neuenahr-Ahrweiler 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 Steger Koelnstr. 135 53757 St. Augustin Germany Tel.: 02241-90600 Fax : 02241-90 60 90 E-Mail: kanzlei@kalker-fahnster.de The District Court of Bad Neuenahr-Ahrweiler opened bankruptcy proceedings against Autoverleih Leute GmbH on Oct. 17. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Autoverleih Leute GmbH Attn: Axel Mueller, Manager Rheinallee 8 53489 Sinzig Germany Attn: Sabine Leute, Manager Linzer Str. 11 53489 Sinzig Germany CB MEZZCAP: S&P Puts BB- Ratings on Watch on Deferred Payments -------------------------------------------------------------- Standard & Poor's Ratings Services placed on CreditWatch with negative implications its ratings on the class B, C, D, and E notes issued by CB MezzCAP Limited Partnership, a German SME CLO transaction. The class A notes are unaffected at this time. The CreditWatch placement follows the latest transaction reporting, according to which the third principal deficiency event in the transaction's history occurred as the German CD and DVD producer ODS Optical Disk Services GmbH filed for the opening of insolvency proceedings on Oct. 5, 2007. The reporting introduces the second active deferral to the transaction and indicates a deterioration in the portfolio credit quality. "We consider that the likelihood of default for ODS Optical Disk Services is significant, which could have a considerable impact on the level of losses incurred by the issuer under its participation right," said credit analyst Mr. Viktor Milev. Mr. Milev added, "ODS Optical Disk Services had issued a EUR6 million profit participation right to CB MezzCAP and was already in delinquency during the previous reporting period. The current portfolio share is 3.44%." Mr. Milev added: "Excess spread in the transaction has constantly decreased over the past three reporting periods. In contrast, the balance of the principal deficiency ledger has since risen notably and now stands at EUR17.4 million. To what extent this balance can be cleared depends on the further performance of the portfolio as well as the status of the two companies in deferral. If they are able to resume payments as envisaged, the structure will benefit from a higher excess spread. If not, further principal deficiency events and a resulting increase in the PDL balance are inevitable. S&P will keep in close contact with the financial adviser and transaction monitor to assess the status of the deferred assets to the highest degree possible. This analysis and S&P's expectation of future losses to be incurred will govern whether the ratings on the notes placed on CreditWatch will be lowered." CB MezzCAP has previously suffered two defaults on the entities Nici AG and Erich Rohde KG. The resulting PDL entries were partially cured through excess spread and through the recovery benefit gained from the sale of the Nici AG asset. Ratings List CB MezzCAP Limited Partnership EUR199.5 Million Floating-Rate Notes Class Rating To From B AA/Watch Neg AA C A/Watch Neg A D BBB-/Watch Neg BBB- E BB-/Watch Neg BB- CHARLOTTENSTRASSE VERWALTUNGS: Creditors' Meeting Set for Dec. 4 ---------------------------------------------------------------- The court-appointed insolvency manager for Charlottenstrasse Verwaltungs GmbH, Christoph Schulte-Kaubruegger will present his first report on the Company's insolvency proceedings at a creditors' meeting at 11:25 a.m. on Dec. 4. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 14057 Berlin Germany The Court will also verify the claims set out in the insolvency manager's report at 11:05 a.m. on March 11, 2008 at the same venue. Creditors have until Jan. 10, 2008 to register their claims with the court-appointed insolvency manager. The insolvency manager can be reached at: Dr. Christoph Schulte-Kaubruegger Genthiner Str. 48 10785 Berlin Germany The District Court of Charlottenburg opened bankruptcy proceedings against Charlottenstrasse Verwaltungs GmbH on Oct. 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Charlottenstrasse Verwaltungs GmbH Breite Str. 12 14199 Berlin Germany CHRYSLER LLC: Officially Seals New Labor Agreement with UAW ----------------------------------------------------------- Leaders of Chrysler LLC and the United Auto Workers union officially sealed a new four-year national labor agreement at a signing ceremony Monday, Nov. 19, 2007 in Detroit, Michigan. After the contract was signed, top members of the bargaining teams -- UAW President Ron Gettelfinger, Chrysler Vice Chairman and President Tom LaSorda, UAW Vice President General Holiefield, and Chryler Senior Vice President Employee Relations John Franciosi -- shook hands, officially ending the process that began last spring. As reported in the Troubled Company Reporter on Oct. 31, 2007, Chrysler confirmed that on Oct. 27, 2007, a new Chrysler-UAW 2007 national labor agreement, in response to UAW's ratification results. UAW members voted to ratify the new collective bargaining agreement with Chrysler, with 56% votes in favor of the four- year pact among production workers, and 51% in favor among skilled trades workers. About 94% of office and clerical workers voted in favor of the agreement, and 79% of UAW- represented Chrysler engineering workers approved the contract. Headquartered in Auburn Hills, Michigan, Chrysler LLC -- http://www.chrysler.com/-- a unit of Cerberus Capital Management LP, 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. * * * 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. The outlook is negative. CHRYSLER LLC: Jeep Leads Growth Outside North America in 2007 ------------------------------------------------------------- Chrysler LLC's Jeep(R) brand sales outside North America have grown 15 percent in 2007, and the brand led Chrysler LLC sales outside North America with 79,520 units sold through October. The Company's International sales increased 14 percent (19,797 units) for the month and were up 18 percent for the year (196,626 units). That added a 29th month to the Company's record of consecutive months of year-over-year sales increases. Markets with a growing auto industry have been promising for Chrysler. Through October 2007, sales in regions such as Asia Pacific, Latin America and the Middle East have seen growth of 17 percent, 25 percent and 65 percent respectively. The increased sales in emerging markets, especially China, Brazil and Russia, have contributed significantly to the Company's overall growth outside North America. "It is important to recognize opportunities outside North America to balance the impact any one region can have on the business," said Michael Manley, Executive Vice President � International Sales, Marketing and Business Development. Mr. Manley added "Our focus on growth is not only to increase sales internationally, but also to ensure that the growth is balanced among the Company's three brands. Our continued focus must be on developing great products that are appropriate for our markets, world-class quality and the development of the most competitive distribution channels." Year-to-date, Jeep has claimed the place as top-Chrysler LLC selling brand with 79,520 units sold, an increase of 15 percent over the same time period last year. Many of the recently- introduced products for the brand have been posting solid sales. The all new Jeep Wrangler has doubled the sales of it predecessor model, and Grand Cherokee continues to gather strong sales numbers ranking it as the number-two selling vehicle for Chrysler LLC outside North America. "The expanded portfolio for the Jeep brand has resulted in a sales increase of more than 10,000 units so far this year, and established it as the Company's highest volume brand outside North America," said Thomas Hausch, Vice President � International Sales. "Replacements for existing models, such as Grand Cherokee and Wrangler have been very well received; and this month in Morocco, we are launching the all-new Jeep Cherokee to International markets, which we believe will help the brand grow its global presence even further. Overall, with 197,000 units sold year to date, we have already surpassed the total calendar year sales for 2005, and Jeep has contributed significantly to this accomplishment." 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. DURA AUTOMOTIVE: U.S. Trustee Objects to Chapter 11 Plan -------------------------------------------------------- Kelly Beaudin Stapleton, the United Stated Trustee for Region 3, asks the U.S. Bankruptcy Court for the District of Delaware to deny confirmation of the Joint Plan of Reorganization filed by DURA Automotive Systems Inc. and its debtor-affiliates. As previously reported in the Troubled Company Reporter, the Court had approved the adequacy of the Disclosure Statement explain the Debtors' plan on Oct. 3, 2007. The Court had initially scheduled the confirmation hearing on November 26 but was rescheduled to Dec. 6, 2007. "The Plan should not be approved on the grounds that, as proposed, it is unconfirmable as a matter of law," asserts the U.S. Trustee. The U.S. Trustee believes that Debtors are inappropriately seeking deemed substantive consolidation for plan purposes. She notes that, under applicable Third Circuit Law, substantive consolidation is prohibited, unless the proponents of it can establish a prima facie case for true substantive consolidation. The Debtors are perfectly capable of presenting non-consolidated claims and financial information, the U.S. Trustee asserts. She explains that, while the Debtors filed consolidated financial statements, the Debtors maintained all corporate formalities, maintained separate books and records for their respective estates, as well as non-consolidated claims and financial information. The U.S Trustee also disputes the Joint Plan of Reorganization on the account that it unfairly discriminates against certain general unsecured creditors, specifically, the Class 3B Senior Notes Claimants -- holders of senior notes with principal amount less than $75,000. She elaborates that if the ability to participate in the $140,000,000 to $160,000,000 equity rights Offering has any value, the treatment of the Class 3B Senior Note Claimants under the Plan constitutes unfair discrimination, because the ability to participate in the Rights Offering is limited to Class 3A Notes claimants, or holders of senior notes with a principal amount greater than $75,000. As previously reported, Pacificor, LLC, which has committed to back stop the rights offering pursuant to the Court-approved Backstop Rights Purchase Agreement, has required that Dura emerge from bankruptcy as a privately held company. As a result, parties entitled to buy shares of Reorganized Dura were limited to large holders of Senior Notes Claims. About DURA Automotive Based in Rochester Hills, Michigan, DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had $1,993,178,000 in total assets and $1,730,758,000 in total liabilities. The Debtors' exclusive plan-filing period expired on Sept. 30, 2007. On Aug. 22, 2007, the Debtors' filed their Plan of Reorganization and the Disclosure Statement explaining that Plan was approved on Oct. 3, 2007. (Dura Automotive Bankruptcy News, Issue No. 37; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Noteholders Support U.S. Trustee's Objections -------------------------------------------------------------- Certain beneficial holders of approximately $88,000,000 in face amount of 9% senior subordinated notes due May 2009, issued by Dura Operating Corp., support the arguments stated by the U.S. Trustee for Region 3 that that: (i) the Plan unfairly discriminates certain general unsecured creditors; and (ii) the Debtors cannot prove that substantive consolidation is proper. Tobey M. Daluz, Esq., at Ballard, Spahr, Andrews & Ingersoll, LLP, in Wilmington, Delaware, also argues that the Plan is not fair and equitable under Section 1129(b)(1) of the Bankruptcy Code because Pacificor will receive 42.4% of the new common stock of Reorganized Dura, and the Debtors' management will receive 10% of the Distribution Shares under the Management Equity Program. Under the Backstop Agreement and the Plan, Pacificor, as the Backstop Party and as a holder of a large percentage of the Senior Notes, will receive 42.4% of the New Common Stock in exchange for payment of $160,000,000. The valuation of the Debtors implicit in this transaction results in the Plan providing for no distribution to the 9% Noteholders, he notes. Nevertheless, he points out, the Debtors have not tested the value assigned to the Debtors under the Backstop Deal and the Plan in the marketplace, and have offered little in the way of other evidence to support this value. Proposing a Plan under the circumstances that makes no distributions of claims in excess of $500,000,000 -- holders of subordinated notes in the aggregate principal amount of $560,700,000 will receive no distributions under the Plan -- is neither fair nor equitable, Mr. Daluz further argues. He cites rulings in In re Exide Technologies, 303 B.R.47, 62 (Bankr.D.Del.2003); In re Zenith Electronics Corp., 241 B.R.92, 103 (Bankr.D.Del.1999), and H.R.Rep. 595, 95thCong., 1stSess.414 (1977). While the 9% Noteholders receive no distribution, the Debtors' management will receive shares of stock of Reorganized Dura under the Management Equity Program, Mr. Daluz notes. Thus, he says, there is a strong possibility that the Debtors' management will receive shares on account of nothing, or, alternatively, on account of their interests in, or claims against, the Debtors. Mr. Daluz also states that the Debtors must prove that the Plan is feasible and not likely to be followed by liquidation or the need for further reorganization. It appears that the Debtors still have not received a commitment from any lender to provide $425,000,000 in exit financing, he says. "The recent troubles in the credit markets, the Debtors' statements that the DIP Lenders are nervous about extending the maturity date beyond December 31, 2007, and the Debtors' need to enter into the Fee Engagement Letter before the DIP Lenders would agree to pursue syndication of the exit financing make it [appear] that the Debtors cannot prove feasibility without a commitment by a lender to provide the $425,000,000 in exit financing that the Debtors require under the Plan," Mr. Daluz states. About DURA Automotive Based in Rochester Hills, Michigan, DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had $1,993,178,000 in total assets and $1,730,758,000 in total liabilities. The Debtors' exclusive plan-filing period expired on Sept. 30, 2007. On Aug. 22, 2007, the Debtors' filed their Plan of Reorganization and the Disclosure Statement explaining that Plan was approved on Oct. 3, 2007. (Dura Automotive Bankruptcy News, Issue No. 37; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). DURA AUTOMOTIVE: Second Lien Group Objects to Chapter 11 Plan ------------------------------------------------------------- Second Lien Group also expressed to the U.S. Bankruptcy Court for the District of Delaware their objection to the Joint Plan of Reorganization filed by DURA Automotive Systems Inc. and its debtor-affiliates. Pursuant to a Credit Agreement dated May 3, 2005, certain of the Debtors borrowed $225,000,000 on a second lien basis. Loans under the agreement accrue interest at a margin over either a Eurodollar-based rate or a prime rate-based rate. As of immediately prior to the Petition Date, all loans under the Second Lien Credit Agreement accrued at the Eurodollar Rate, which was the lower of the two rates. Laurie Selber Silverstein, Esq., at Potter, Anderson & Corroon, LLP, in Wilmington, Delaware, relates that, pursuant to the Second Lien Agreement, if an event of default occurs, any outstanding Eurodollar loan must be automatically converted to a Base Rate loan. In light of the Debtors' Chapter 11 filing, which qualifies as an event of default, the Second Lien Group has insisted that no further Eurodollar loans were permissible, the loans are automatically converted from Eurodollar to Base Rate loans. The Debtors, however, contended that that the Eurodollar Rate is the applicable interest rate. In resolution to the Second Lien Group's objection to the Debtors' use of the Second Lien Lenders' cash collateral and the entry into a postpetition financing, the Debtors agreed to grant the Second Lien Lenders adequate protection payments measured by a compromise "Stated Rate", half-way between the Eurodollar Rate and the Base Rate. The Plan proposes to satisfy the Second Lien Facility Claims through cash payment in the amount of the principal amount of $225,000,000 "plus outstanding interest, fees and expenses payable pursuant to the Final DIP Order or as the Bankruptcy Court otherwise orders, but not otherwise paid, as of the Effective Date." The Plan, however, provides that the postpetition interest will be calculated at the "Stated Rate" and not on the Base Rate, which amounts to a $2,000,000 disparity to the recoveries of the Second Lien Lenders. The Second Lien Group reiterates its contentions that postpetition interest should be computed, and paid, at the Base Rate. It asks the Court grant the Second Lien Lenders the accrued differential of approximately $2,000,000 between the Debtors' stated Eurodollar Rate and the Base Rate. As previously reported, in light of the Second Lien Group's contentions that holders of Class 2 Second Facility Claims are impaired under the Plan as a result of the disputes with respect to the postpetition interest, the Debtors agreed to solicit votes from Second Lien Lenders on a provisional basis, pending resolution of their disputes. Holder of Shares of Dura Stock Timothy Paul Harrison, holder of 898 shares of Dura Automotive Systems, Inc., common stock, says that Dura management has not disclosed any information as to "[its] plan to start a new company with the stockholders' assets..." Mr. Harrison has received copies of Dura's Joint Plan of Reorganization and related documents but said the information provided is confusing. "It is obvious that the company and the consulting firms do not want the real owners of this company to know about this plan," he said. Mr. Harrison insists that Dura should present a summary of the Plan to start a new company and at let the stock holders vote and express their objections. The Plan currently provides for the cancellation of the existing stock of the company, and the sale and distribution of the common stock of Dura to noteholders and general unsecured claimants upon emergence from bankruptcy. Equity holders are deemed to reject the Plan, and therefore, will not be given ballots. Other Objections As reported in the Troubled Company Reporter on Nov. 13, 2007, Atwood Acquisition Co. LLC, The United States Government, on behalf of the Internal Revenue Service, and Douglas Stevens and Raphael Durst, owners of Dura Operating Corp. Series C/D 9% Senior Subordinated Notes Cusip Number 26632QAh6, also raised objections to the Debtors' Pla. About DURA Automotive Based in Rochester Hills, Michigan, DURA Automotive Systems Inc. (Nasdaq: DRRA) -- http://www.DURAauto.com/-- is an independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry. The company is also a supplier of similar products to the recreation vehicle and specialty vehicle industries. DURA sells its automotive products to North American, Japanese and European original equipment manufacturers and other automotive suppliers. The company has three locations in Asia -- China, Japan and Korea. It has locations in Europe and Latin America, particularly in Mexico, Germany and the United Kingdom. The Debtors filed for chapter 11 petition on Oct. 30, 2006 (Bankr. D. Del. Case No. 06-11202). Richard M. Cieri, Esq., Marc Kieselstein, Esq., Roger James Higgins, Esq., and Ryan Blaine Bennett, Esq., of Kirkland & Ellis LLP are lead counsel for the Debtors' bankruptcy proceedings. Mark D. Collins, Esq., Daniel J. DeFranseschi, Esq., and Jason M. Madron, Esq., of Richards Layton & Finger, P.A. Attorneys are the Debtors' co- counsel. Baker & McKenzie acts as the Debtors' special counsel. Togut, Segal & Segal LLP is the Debtors' conflicts counsel. Miller Buckfire & Co., LLC is the Debtors' investment banker. Glass & Associates Inc., gives financial advice to the Debtor. Kurtzman Carson Consultants LLC handles the notice, claims and balloting for the Debtors and Brunswick Group LLC acts as their Corporate Communications Consultants for the Debtors. As of July 2, 2006, the Debtor had $1,993,178,000 in total assets and $1,730,758,000 in total liabilities. The Debtors' exclusive plan-filing period expired on Sept. 30, 2007. On Aug. 22, 2007, the Debtors' filed their Plan of Reorganization and the Disclosure Statement explaining that Plan was approved on Oct. 3, 2007. (Dura Automotive Bankruptcy News, Issue No. 37; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). ERS GMBH: Claims Registration Ends January 7, 2008 -------------------------------------------------- Creditors of ERS GmbH have until Jan. 7, 2008 to register their claims with court-appointed insolvency manager Dr. Thomas Dithmar. Creditors and other interested parties are encouraged to attend the meeting at 11:30 a.m. on Jan. 21, 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 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. Thomas Dithmar Barbarossahof 3 99092 Erfurt Germany The District Court of Erfurt opened bankruptcy proceedings against ERS GmbH on Oct. 24. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Attn: Klaus-Dieter Neumann, Manager An der Lache 29 99086 Erfurt Germany HOHNRATH PRINT: Claims Registration Period Ends Jan. 16, 2008 ------------------------------------------------------------- Creditors of Hohnrath Print und Medien GmbH & Co. KG i.L. have until Jan. 16, 2008 to register their claims with court- appointed insolvency manager Wolf-R. von der Fecht. Creditors and other interested parties are encouraged to attend the meeting at 9:10 a.m. on Jan. 18, 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 Krefeld Meeting Hall H 131 First Floor Nordwall 131 47798 Krefeld 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. Wolf-R. von der Fecht Rheinort 1 40213 Duesseldorf Germany Tel: 0211 13940 Fax: +4902111394251 The District Court of Krefeld opened bankruptcy proceedings against Hohnrath Print und Medien GmbH & Co. KG i.L. on Oct. 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Hohnrath Print und Medien GmbH & Co. KG i.L. 47877 Willich Germany KROONFLOR GMBH: Claims Registration Period Ends December 13 ----------------------------------------------------------- Creditors of Kroonflor GmbH have until Dec. 13 to register their claims with court-appointed insolvency manager Dr. Juergen Toemp. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Jan. 3, 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 Kleve Meeting Hall C 58 Ground Floor Schlossberg 1 47533 Kleve 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. Juergen Toemp Wilhelmshofallee 75 47800 Krefeld Tel: 02151-58130 Fax: 02151-5813134 The District Court of COURT opened bankruptcy proceedings against Kroonflor GmbH on Kleve. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Kroonflor GmbH In de Schanz 13 47638 Straelen Germany Attn: Willem Kroon, Manager Laakweg 4 NLD-5944 Ex Arcen Germany MAKE COMMUNICATION: Claims Registration Period Ends December 7 -------------------------------------------------------------- Creditors of Make Communication GmbH have until Dec. 7 to register their claims with court-appointed insolvency manager Gerhard Tonhaeuser. Creditors and other interested parties are encouraged to attend the meeting at 10:30 a.m. on Jan. 8, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Stuttgart Room 178 Hauffstr. 5 70190 Stuttgart 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: Gerhard Tonhaeuser Moltkestrasse 40 74072 Heilbronn Germany Tel: 07131/60990 Fax: 07131/609961 The District Court of Stuttgart opened bankruptcy proceedings against Make Communication GmbH on Nov. 1. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Make Communication GmbH Attn: Jochen Marquardt, Manager Kreuzenstrasse 108 74076 Heilbronn Germany MERTON REAL: Creditors' Meeting Slated for Dec. 10 -------------------------------------------------- The court-appointed insolvency manager for Merton Real Estate Entwicklungsgesellschaft mbH, Bjoern Gehde will present his first report on the Company's insolvency proceedings at a creditors' meeting at 10:40 a.m. on Dec. 10. The meeting of creditors and other interested parties will be held at: The District Court of Charlottenburg Hall 218 Second Floor Amtsgerichtsplatz 1 &nbs