T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, December 4, 2007, Vol. 8, No. 240 Headlines A U S T R I A DENIC ANLAGENBAU: Creditors' Meeting Slated for Dec. 13 DRUCKEREI SCHUSTER: Creditors' Meeting Slated for Dec. 10 FEWIG - HANDEL: Creditors' Meeting Slated for Dec. 18 GEA NOVA: Creditors' Meeting Slated for Dec. 18 LIFE OPTICS: Creditors' Meeting Slated for Dec. 17 SCALET BAU: Creditors' Meeting Slated for Dec. 13 XACTDATA SOFTWARE: Creditors' Meeting Slated for Dec. 13 B E L G I U M MAZDA MOTOR: Posts 7.6% Boost in Global Output for October 2007 SOLUTIA INC: Ruling on Sinorgchem's Exclusion Bid Still Pending D E N M A R K TDC A/S: S&P Affirms BB- Credit Ratings After Financial Review F R A N C E WARNER MUSIC: Sept. 30 Balance Sheet Upside-Down by US$36 Mln G E R M A N Y ATLAS FINANZ: Claims Registration Period Ends Dec. 12 AYDIN HOCHBAU: Claims Registration Period Ends Dec. 12 BAYERWALD TRANS: Claims Registration Ends Jan. 10, 2008 DEGENHARD BETEILIGUNGSGESELLSCHAFT: Claims Filing Ends Jan. 9 FHS HARTMANN: Claims Registration Period Ends Jan. 10, 2008 FRANKONIA IMMOBILIENKONTOR: Claims Filing Ends January 7, 2008 GASTRO-CONZEPT GMBH: Claims Registration Ends Jan. 3, 2008 GROSS & WERHEIT: Claims Registration Ends January 7, 2008 H UND K VERANSTALTUNGS: Claims Registration Period Ends Dec. 13 IKB DEUTSCHE: German Banks Step In for Second Risk Coverage LA FORESTAL: Claims Registration Period Ends Jan. 3, 2008 LIPA BAUENTWICKLUNGS: Claims Registration Ends Jan. 4, 2008 M & M AUTOMOBILE: Claims Registration Period Ends Jan. 9, 2008 PARTNERGLUECK - PARTNERSCHAFTSDIENSTE: Claims Filing Ends Jan. 8 PIANO SPRENGER: Claims Registration Ends January 8, 2008 RADOJEVIC GASTSTATTEN: Claims Registration Ends Jan. 4, 2008 RUBIKON-BERGER GMBH: Claims Registration Period Ends Dec. 20 SPEDITION SCHULZ: Claims Registration Period Ends Jan. 3, 2008 SKAN-FORM 2003: Claims Registration Period Ends Dec. 11 SYSTEM TO WIN: Claims Registration Period Ends Jan. 10, 2008 I R E L A N D SANYO ELECTRIC: Unveils 2008-2010 Midterm Business Plan SANYO ELECTRIC: Ties Up with Aeon to Develop Home Electronics SANYO ELECTRIC: To Make New Fuel Cell Company with Nippon Oil I T A L Y ALITALIA SPA: Ryanair Suing European Commission over Volare Aid ITALFINANCE 2006-1: S&P Removes Class A's BB+ Ratings from Watch K A Z A K H S T A N ACORD-CONSULTING LLP: Proofs of Claim Deadline Set Jan. 1, 2008 ARDAGER LLP: Proofs of Claim Deadline Set Jan. 1, 2008 DANKO REAL: Claims Filing Period Ends Dec. 28 JANA TABYS: Creditors' Claims Due on Jan. 1, 2008 KEN KAZNA: Claims Registration Ends Jan. 2, 2008 MEGAPOLIS-2000 LLP: Proofs of Claim Deadline Set Jan. 1, 2008 NIKA-INVEST LLP: Creditors Must File Claims Dec. 28 SEMEY-GORTOP LLP: Claims Filing Period Ends Jan. 2, 2008 SPETSMETALLURGMONTAGE LLP: Creditors' Claims Due on Jan. 1, 2008 STROYINVEST-T LLP: Claims Registration Ends Jan. 1, 2008 K Y R G Y Z S T A N ELECTRO-NIKS LLC: Creditors Must File Claims by December 31 R U S S I A ALTAIELECTROSET'REPAIR: Court Starts Bankruptcy Supervision EDEL CAPITAL: Moody's Affirms US$250 Million LPNs at Ba1 HYNIX SEMICOMDUCTOR: Deal w/ TSMC Stalled Due to Disagreements HYNIX SEMICOMDUCTOR: Welcomes WTO Ruling Against Japanese Duties KHABAROVSKAYA SUE: Court Starts Competitive Proceedings METAP-SERVICE LLC: Creditors Must File Claims by Dec. 17 OSETROVSKIJ RIVER: Court Start External Bankruptcy Procedure SAL'SKIJ WINERY: Creditors Must File Claims by Dec. 17 SALAIRSKIJ MINING&DEVELOPMENT: Claims Filing Ends Jan. 18, 2008 SVYAZINVESTNEFTEKHIM OAO: Moody's Puts Ba1 Corp. Family Rating SMYCHKA LLC: Creditors Must File Claims by Dec. 17 SNEZHINSKIJ REINFORCED: Claims Filing Period Ends Jan. 17, 2008 SOVIET CREAMERY: Creditors Must File Claims by Dec. 17 SURAVI OJSC: Creditors Must File Claims by Dec. 17 TRANSSERVICE OJSC: Creditors Must File Claims by Jan. 17, 2008 URALMEDSERVICE CJSC: Creditors Must File Claims by Dec. 17 URALOILCHEM LLC: Creditors Must File Claims by Dec. 17 VNESHTORGBANK JSC: Shareholders Ask State to Buy Back Shares YUKOS OIL: U.S. Court Says It Lacks Power to Award Compensation S P A I N FONCAIXA FTGENCAT 4: Fitch Junks EUR6 Million Class E Notes GAT FTGENCAT: Moody's Junks EUR18.8 Million Series E Notes INMEVA: Enters Temporary Receivership; Faces Imminent Insolvency RURAL HIPOTECARIO GLOBAL I: Fitch Junks Class E Notes RURAL HIPOTECARIO VIII: Fitch Junks Class E with Stable Outlook TDA CAM 10: Moody's Junks EUR23.5 Million Series D Notes S W I T Z E R L A N D BANTIGER SPORT: Bern Court Closes Bankruptcy Proceedings BUCHENWEG BAU: Creditors' Liquidation Claims Due by December 9 CREATIVE IMAGES: Creditors' Liquidation Claims Due by December 7 FLOOR SERVICE: Claims Registration Period Ends December 9 GEOTRONIC ENTERTAINMENT: Claims Registration Period Ends Dec. 9 HYTEC HYGIENETECHNIK: Aargau Starts Bankruptcy Proceedings LEADER COACH: Creditors' Liquidation Claims Due by December 7 PORCHESTER TRADING: Creditors' Liquidation Claims Due by Dec. 7 SCHIBLI-DOPPLER JSC: Schwyz Court Closes Bankruptcy Proceedings ST SCHREINEREI: Creditors' Liquidation Claims Due by December 9 SYNOLOGYC JSC: Creditors' Liquidation Claims Due by December 7 TEATRO CASINO: Creditors' Liquidation Claims Due by December 7 U K R A I N E ADVERTISING AGENCY: Creditors Must File Claims by December 5 BPN LLC: Creditors Must File Claims by December 5 BREWERY KUBOK: Proofs of Claim Filing Deadline Set December 5 DZVINKOVE TRIBAL: Creditors Must File Claims by December 5 ELADABUSINESS LLC: Creditors Must File Claims by December 5 GRAIN INTERTRADING: Creditors Must File Claims by December 5 INDUSTRIAL ENGINEERING: Proofs of Claim Deadline Set December 5 INDUSTRIAL TRADE-GROUP: Creditors Must File Claims by December 5 KOLOS LLC: Creditors Must File Claims by December 5 MEZHRECHYE-SOUTH JSC: Creditors Must File Claims by December 5 PRESTIGE AND CO: Proofs of Claim Filing Deadline Set December 5 S. V-M.: Creditors Must File Claims by December 5 SHYROKOVSKY AGRICULTURAL: Proofs of Claim Deadline Set Dec. 5 TEMIKS CJSC: Creditors Must File Claims by December 5 UKRAINIAN WHOLESALE: Creditors Must File Claims by December 5 U N I T E D K I N G D O M BLUE EDEN: Names Jeremiah Anthony O' Sullivan Liquidator BOMBARDIER INC: Planned Debt Repurchase Cues Fitch's Pos. Watch BURGER KING: Moody's Affirms Ba2 Rating with Stable Outlook CB MEZZCAP: Moody's May Cut Ba1 Rating After Review CHRYSLER LLC: Likely to Lose US$1 Bln in 2007, Sales Exec Says CONSTELLATION BRANDS: Fitch Rates US$500 Mln Senior Note at BB- CRAIG BURLEY: Claims Filing Period Ends December 20 ECOMOLD LTD: Directors Call In KPMG to Administer Assets G SQUARE FINANCE: S&P Rates Class E Notes at BB+ G SQUARED: Calls In Liquidators from Wilkins Kennedy GENERAL MOTORS: Still Open to Future Tie-Up with Proton Holdings POPE & TALBOT: Wants to File Schedules & Statements by Jan. 18 POPE & TALBOT: Wants to Employ Rothschild as Financial Advisor POPE & TALBOT: B.C. Court Accepts Transfer of CCAA Proceedings POPE & TALBOT: British Columbia Court Extends Stay to Jan. 16 QUIBEC PROPERTIES: Joint Liquidators Take Over Operations SEA CONTAINERS: Wants Exclusive Period Extended to February 20 WORLDWIDE APPLIANCES: Taps Liquidators from Tenon Recovery * Large Companies with Insolvent Balance Sheet ********* ============= A U S T R I A ============= DENIC ANLAGENBAU: Creditors' Meeting Slated for Dec. 13 ------------------------------------------------------- Creditors owed money by LLC Denic Anlagenbau (FN 234862k) are encouraged to attend the creditors' meeting at 11:40 a.m. on Dec. 13. The creditors' meeting will be held at: The Land Court of Wels Hall 101 First Floor Maria Theresia Strasse 12 Wels Austria Headquartered in Marchtrenk, Austria, the Debtor declared bankruptcy on Oct. 29 (20 S 130/07d). Hubert Koellensperger serves as the court-appointed estate administrator of the bankrupt's estate. The estate administrator can be reached at: Dr. Hubert Koellensperger Schubertstrasse 20 4600 Wels Austria Tel: 07242/44546-0 Fax: 07242/42849 E-mail: office@wels-law.at DRUCKEREI SCHUSTER: Creditors' Meeting Slated for Dec. 10 --------------------------------------------------------- Creditors owed money by KEG Druckerei Schuster (FN 240059d) are encouraged to attend the creditors' meeting at 9:00 a.m. on Dec. 10. The creditors' meeting will be held at: The Land Court of Klagenfurt Conference Hall 225 Second Floor Klagenfurt Austria Headquartered in Wolfsberg, Austria, the Debtor declared bankruptcy on Oct. 29 (41 S 106/07x). Siegfried Schuessler serves as the court-appointed estate administrator of the bankrupt's estate. The estate administrator can be reached at: Dr. Siegfried Schuessler Kanalplatz 5 9400 Wolfsberg Austria Tel: 04352/51 6 44 Fax: 04352/52 2 20 E-mail: ra.dr.schuessler@aon.at FEWIG - HANDEL: Creditors' Meeting Slated for Dec. 18 ----------------------------------------------------- Creditors owed money by LLC FEWIG - Handel und Produktion (FN 96013x) are encouraged to attend the creditors' meeting at 10:50 a.m. on Dec. 18. The creditors' meeting will be held at: The Land Court of St. Poelten Room 216 Second Floor Old Building St. Poelten Austria Headquartered in Neumarkt an der Ybbs, Austria, the Debtor declared bankruptcy on Oct. 29 (14 S 180/07x). Franz Hofbauer serves as the court-appointed estate administrator of the bankrupt's estate. The estate administrator can be reached at: Dr. Franz Hofbauer Hauptplatz 6 3370 Ybbs/Donau Austria Tel: 07412/52731 Fax: 07412/52731-22 E-mail: dr.hofbauer@wibs.a GEA NOVA: Creditors' Meeting Slated for Dec. 18 ----------------------------------------------- Creditors owed money by LLC Gea Nova Handel (FN 251412z) are encouraged to attend the creditors' meeting at 11:00 a.m. on Dec. 18. The creditors' meeting will be held at: The Land Court of Linz Hall 522 Fifth Floor Linz Austria Headquartered in Hoersching, Austria, the Debtor declared bankruptcy on Oct. 30 (38 S 57/07x). Norbert Mooseder serves as the court-appointed estate administrator of the bankrupt's estate. The estate administrator can be reached at: Dr. Norbert Mooseder Stelzhamerstr. 1 4400 Steyr Austria Tel: 07252/42424 Fax: 07252/42424-24 E-mail: lawfirm@gltp.at LIFE OPTICS: Creditors' Meeting Slated for Dec. 17 -------------------------------------------------- Creditors owed money by LLC Life Optics (FN 186094v) are encouraged to attend the creditors' meeting at 10:15 a.m. on Dec. 17. The creditors' meeting will be held at: The Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 24 (3 S 136/07f). Georg Freimueller serves as the court-appointed estate administrator of the bankrupt's estate. Erwin Senoner represents Dr. Freimueller in the bankruptcy proceedings. The estate administrator can be reached at: Dr. Georg Freimueller c/o Dr. Erwin Senoner Alser Strasse 21 1080 Vienna Austria Tel: 406 05 51 Fax: 406 96 01 E-mail: kanzlei@jus.at SCALET BAU: Creditors' Meeting Slated for Dec. 13 ------------------------------------------------- Creditors owed money by LLC Scalet Bau (FN 70217k) are encouraged to attend the creditors' meeting at 9:20 a.m. on Dec. 13. The creditors' meeting will be held at: The Land Court of Feldkirch Conference Hall 45 First Floor Feldkirch Austria Headquartered in Feldkirch-Gisingen, Austria, the Debtor declared bankruptcy on Oct. 30 (14 S 43/07x). Ronald Sutter serves as the court-appointed estate administrator of the bankrupt's estate. The estate administrator can be reached at: Dr. Ronald Sutter Marktgasse 24 6800 Feldkirch Austria Tel: 05522/72755 Fax: 05522/75125 E-mail: kanzlei@ronaldsutter.at XACTDATA SOFTWARE: Creditors' Meeting Slated for Dec. 13 -------------------------------------------------------- Creditors owed money by LLC Xactdata Software (FN 205437p) are encouraged to attend the creditors' meeting at 9:00 a.m. on Dec. 13. The creditors' meeting will be held at: The Land Court of Feldkirch Conference Hall 45 First Floor Feldkirch Austria Headquartered in Feldkirch, Austria, the Debtor declared bankruptcy on Oct. 24 (14 S 41/07b). Bernhard Ess serves as the court-appointed estate administrator of the bankrupt's estate. Daniela Weiss represents Dr. Ess in the bankruptcy proceedings. The estate administrator can be reached at: Dr. Bernhard Ess c/o Mag. Daniela Weiss Hirschgraben 14 6800 Feldkirch Austria Tel: 05522/79090 Fax: 05522/79090-7 E-mail: rechtsanwalt-feldkirch@aon.at ============= B E L G I U M ============= MAZDA MOTOR: Posts 7.6% Boost in Global Output for October 2007 --------------------------------------------------------------- Mazda Motor Corporation has released its production and sales results for October 2007. Global production climbed 7.6% year-on-year to 118,769 units. Domestic production increased 10.9% for a total of 93,302 units mainly due to the additional production of the all-new Demio bound for Europe and the CX-9 among other models. Overseas production went down to 25,467 units, or an equivalent of 3.1% due to the end of the production of Familia and Premacy models in China. Due to the new model effect of the Mazda2 or known overseas as the Demio, and Mazda5 or Premacy, domestic sales went up 5.5% as compared to October 2006. Mazda's registered vehicle market share climbed 5.3%, up 0.1 points over October 2006, with a 2.7% share of the micro-mini segment (up 0.4 points) and a 4.5% total market share, which is up 0.3 points over last year's results. About Mazda Motor Headquartered in Hiroshima Prefecture, in Japan, Mazda Motor Corporation -- http://www.mazda.co.jp/-- together with its subsidiaries and associates, is primarily involved in the manufacture and distribution of automobiles. The company manufactures passenger cars and commercial vehicles. Mazda Motor distributes its products in both domestic and overseas markets. The company has 58 subsidiaries. It has overseas operations in the United States, Canada, Mexico, Germany, Belgium, France, the United Kingdom, Switzerland, Portugal, Italy, Spain, Austria, Russia, Columbia, New Zealand, Thailand, Indonesia and China. The Company has a global network. * * * As reported in the TCR-AP on April 27, 2007, Standard & Poor's Ratings Services raised Mazda Motor Corp.'s long-term corporate credit rating and the company's long-term senior unsecured debt to: * Corporate Credit Rating: BB /Stable/ * Company's Long-term Senior Unsecured Debt: BB+ S&P's rating actions reflect Mazda's improved operational and financial performance, and financial risk profile. Mazda's operating and financial performance has been improving over the past several years due to the success of new products following a shift in strategy. The company continued to improve operating and financial performance in the nine months ended Dec. 31, 2006, owing to an improved sales mix and favorable foreign exchange rates. Although the EBITDA margin of about 6% remains lower than most of its Japanese peers, profitability is steadily improving. Mazda is now focusing on certain segments instead of attempting to compete as a full-line producer. The company also has excellent product engineering capabilities. SOLUTIA INC: Ruling on Sinorgchem's Exclusion Bid Still Pending --------------------------------------------------------------- The U.S. Court of Appeals for the Federal Circuit has yet to rule on Sinorgenchem Co. Shangdong's appeal over the U.S. International Trade Commission's limited exclusion order on 4-aminodiphenylamine and its derivatives. Oral arguments were heard in September 2007. In February 2005, Flexsys America LP requested the ITC to investigate Sinorgchem, Korea Kumho Petrochemical Co., and the third party distributors of Sinorgchem. Flexsys claims that the process Sinorchem used to make 4-ADPA and 6PPD, its importation to the U.S. and sale infringe Flexsys' patents. Flexsys requested a limited exclusion order. Flexsys is a 50/50 joint venture between Solutia Inc. and Akzo Nobel BV. The joint venture supplies chemicals to the rubber industry. In February 2006, an Administrative Law Judge of the ITC determined that Flexsys' patent were valid, that the process used by Sinorgchem was covered by these patents, and that Sinorgchem and its distributor (not Korea Kumho) violated Section 1337 of the U.S. Tariff Act. In July 2006, the ITC upheld the Administrative Law Judge's decision and issued a limited exclusion order against Sinorgchem and its distributor. Headquartered in St. Louis, Missouri, Solutia Inc. (OTCBB:SOLUQ) -- http://www.solutia.com/-- and its subsidiaries, engage in the manufacture and sale of chemical-based materials, which are used in consumer and industrial applications worldwide. Solutia has operations in Malaysia, China, Singapore, Belgium, and Colombia. The company and 15 debtor-affiliates filed for chapter 11 protection on Dec. 17, 2003 (Bankr. S.D.N.Y. Case No. 03-17949). When the Debtors filed for protection from their creditors, they listed US$2,854,000,000 in assets and US$3,223,000,000 in debts. Solutia is represented by Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and Michael A. Cohen, Esq., at Kirkland & Ellis LLP, in New York, as lead bankruptcy counsel, and David A. Warfield, Esq., and Laura Toledo, Esq., at Blackwell Sanders LLP, in St. Louis Missouri, as special counsel. Trumbull Group LLC is the Debtor's claims and noticing agent. Daniel H. Golden, Esq., Ira S. Dizengoff, Esq., and Russel J. Reid, Esq., at Akin Gump Strauss Hauer & Feld LLP represent the Official Committee of Unsecured Creditors, and Derron S. Slonecker at Houlihan Lokey Howard & Zukin Capital provides the Creditors' Committee with financial advice. The Official Committee of Retirees of Solutia, Inc., et al., is represented by Daniel D. Doyle, Esq., Nicholas A. Franke, Esq., and David M. Brown, Esq., at Spencer Fane Britt & Browne, LLP, in St. Louis, Missouri, and Frank M. Young, Esq., Thomas E. Reynolds, Esq., R. Scott Williams, Esq., at Haskell Slaughter Young & Rediker, LLC, in Birmingham, Alabama. On Feb. 14, 2006, the Debtors filed their Reorganization Plan & Disclosure Statement. On May 15, 2007, they filed an Amended Reorganization Plan and on July 9, 2007, filed a 2nd Amended Reorganization Plan. The Bankruptcy Court approved the Debtors' amended Disclosure Statement on Oct. 19, 2007. A hearing to consider confirmation of the Debtors' Reorganization Plan is scheduled for Nov. 29, 2007. ============= D E N M A R K ============= TDC A/S: S&P Affirms BB- Credit Ratings After Financial Review -------------------------------------------------------------- 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. The outlook is stable. "The rating affirmation follows the group's material debt repayments in 2007, financed by non-core asset disposal proceeds, which resulted in an improved debt maturity profile until 2010," said Standard & Poor's credit analyst Matthias Raab. "This, however, is offset by modest trading prospects and margins for its operations as a result of high competitive pressure and by an expected significant decline in free operating cash flow generation over the next two years, primarily from adverse changes in Danish tax law." Mr. Raab added. At Sept. 30, 2007, TDC's net debt decreased by about DKK12 billion year-on-year primarily through several non-core asset disposals such as Baltic mobile operator Bite, German mobile reseller Talkline, or the sale and lease back of some of its real-estate properties. Following these transactions, the company has sufficient flexibility and instruments at hand to manage its moderate debt-amortization schedule until 2010, including moderate FOCF generation, available cash on hand, significant undrawn credit lines, and further proceeds from the disposal of remaining non-core assets. Notwithstanding, the group's leverage is still high. Pro forma the conducted buyback of senior facilities amounting to DKK3.7 billion (EUR500 million) in the fourth quarter, total adjusted debt at Sept. 30, 2007, amounted to DKK80.9 billion, which also includes preferred equity certificates DKK15.4 billion, which Standard & Poor's views as a long-duration, deeply subordinated debt instrument, and DKK14.5 billion bonds at TDC's parent company NTCH. Based on last-12-months adjusted EBITDA, this translates into a still high adjusted total debt-to-EBITDA ratio of 6.2x (5.0x excluding PECs). The planned disposal of its 19.6% stake in mobile operator Polkomtel for up to EUR860 million (DKK6.4 billion) could facilitate further debt repayments in the near term. However, this transaction is still being challenged by Vodafone Group PLC (A-/Stable/A-2). "The stable outlook on TDC and NTCH reflects our expectation that TDC will be able to defend its satisfactory core Danish fixed-line and mobile market positions against tough competitive, regulatory, and technological pressures," said Mr. Raab. It is critical that the group maintains healthy liquidity levels given the expected decline in free cash flow generation in order to be able to comfortably service debt amortizations. S&P also expects TDC to run a conservative financial policy and to continue reducing gross debt. =========== F R A N C E =========== WARNER MUSIC: Sept. 30 Balance Sheet Upside-Down by US$36 Mln ------------------------------------------------------------- Warner Music Group Corp.'s consolidated balance sheet at Sept. 30, 2007, showed US$4.57 billion in total assets and US$4.61 billion in total liabilities, resulting in a US$36 million total shareholders' deficit. The company's consolidated balance sheet at Sept. 30, 2007, also showed strained liquidity with US$1.20 billion in total current assets available to pay US$1.88 billion in total current liabilities. The company disclosed Thursday last week its full-year and fourth-quarter financial results for the period ended Sept. 30, 2007. Fourth Quarter Results Net income was US$5 million for the fourth quarter ended Sept. 30, 2007. Net income in the fourth quarter of 2006 was US$12 million. As of Sept. 30, 2007, the company reported a cash balance of US$333 million, total long-term debt of US$2.27 billion and net debt of US$1.94 billion. Fourth-quarter results for fiscal year 2007 include US$9 million in restructuring and implementation expenses related to the company's realignment initiatives; and a US$12 million benefit in Recorded Music from the final allocation of royalty payable balances to artist accounts in connection with the settlement with Bertelsmann AG regarding Napster. In fiscal year 2006, the results for the fourth quarter included a US$13 million benefit in Recorded Music related to the settlement regarding Kazaa. For the fourth quarter 2007, revenue grew 1.8% to US$869 million from US$854 million in the prior-year quarter, and fell 1.5% on a constant-currency basis. This constant-currency decline was driven by a challenging Recorded Music industry environment as the shift in consumption patterns from physical sales to new forms of digital music continues. On a constant-currency basis, revenue gains in the U.S. and flat European results were more than offset by declines in the Latin America and Asia Pacific regions. Domestic revenue increased 5.9% while international revenue was down 2.5%, or 8.0% on a constant-currency basis. Operating income for the quarter rose 7.6% to US$71 million from US$66 million in the prior-year quarter and operating margin improved 0.5 percentage points to 8.2%. Operating income before depreciation and amortization for the quarter increased 6.3% to US$134 million from US$126 million in the prior-year quarter and OIBDA margin expanded by 0.6 percentage points to 15.4%. The increase in OIBDA and OIBDA margins primarily reflects an increase in higher-margin digital sales and a decrease in annual bonus compensation. These benefits were partially offset by the decline in physical sales, resulting in fixed costs spread over a smaller revenue base, increased product costs and the costs associated with our realignment plan. "As expected, this has been a challenging quarter, reflecting the difficulties in any industry transformation of this scale. But we remain confident for two primary reasons: continued growth in the broader music market that our long-term strategy targets, and the disciplined creative leadership shown by WMG to expand our music business model," said Edgar Bronfman, Jr., Warner Music Group's chairman and chief executive officer. "Despite the difficult global recorded music environment, we outperformed the market again this quarter while continuing to lay the foundation for future growth." Michael Fleisher, Warner Music Group's executive vice president and chief financial officer, added: "Even as we redefine our role in the overall music industry, we maintain our focus on financial discipline. Our realignment initiatives announced in May were completed on schedule and resulted in total restructuring and implementation charges of US$63 million in this fiscal year, better than the previously announced range of US$65 million to US$80 million." Fiscal 2007 Results For the full year 2007, revenue fell 3.7% to US$3.38 billion from US$3.52 billion last year, or fell 6.8% on a constant- currency basis. Total revenue in 2007 was split 49% domestic and 51% international. Domestic revenue declined 1.8% over the prior year while international revenue dropped 5.8%, or 11.3% on a constant-currency basis. Total digital revenue rose 30% year- on-year to US$460 million, was split 68% domestic and 32% international and represented 13.6% of total revenue for the fiscal year. Recorded Music sales were challenged by fewer high-volume sellers and a weaker physical sales backdrop, with digital gains failing to compensate for physical declines as the Recorded Music industry continues to be in transition. The company's operating income of US$215 million decreased from US$283 million in the last fiscal year and operating margin contracted 1.6 percentage points to 6.4%. OIBDA for the fiscal year amounted to US$461 million compared to US$518 million last year and OIBDA margin contracted by 1.1 percentage points to 13.6%. The decline in OIBDA margin primarily reflects negative operating leverage from lower sales on a similar fixed cost base that was particularly evident early in the fiscal year, higher product costs and costs associated with the company's realignment plan. This was partially offset by an increase in higher-margin digital sales, the benefit from a legal settlement and a decrease in annual bonus compensation. Net loss this fiscal year was US$21 million, compared to net income of US$60 million for the 2006 fiscal year. Results for the fiscal year 2007 includes US$63 million in restructuring and implementation expenses related to the company's realignment initiatives; a US$64 million benefit from the settlement with Bertelsmann AG regarding Napster; and US$9 million in expenses incurred in connection with the previously disclosed proposed acquisition of EMI Group plc. In fiscal year 2006, results included a US$13 million benefit for Recorded Music related to the settlement regarding Kazaa. Liquidity For the fiscal year 2007, net cash provided by operating activities was US$302 million. Free cash flow amounted to US$22 million compared to free cash flow of US$172 million in fiscal year 2006. Unlevered after-tax cash flow was US$158 million, compared to US$313 million in fiscal year 2006. Free cash flow and unlevered after-tax cash flow for fiscal 2007 include the previously disclosed investments of US$110 million in Front Line Management and US$65 million in Roadrunner as well as US$63 million in restructuring-related charges and US$110 million in cash received from the settlement with Bertelsmann AG regarding Napster. Free Cash flow and unlevered after-tax cash flow for fiscal 2006 included a previously disclosed investment of US$63 million in Rykodisc. Full-text copies of the company's consolidated financial statements for the fiscal year ended Sept. 30, 2007, are available for free at http://researcharchives.com/t/s?25e2 About Warner Music Group Headquartered in New York, Warner Music Group Corp. (NYSE: WMG) -- http://www.wmg.com/-- is a stand-alone music company which is home to a collection of the best-known record labels in the music industry including Asylum, Atlantic, Bad Boy, Cordless, East West, Elektra, Lava, Nonesuch, Reprise, Rhino, Roadrunner, Rykodisc, Sire, Warner Bros. and Word. Warner Music International, a leading company in national and international repertoire, operates through numerous international affiliates and licensees in more than 50 countries. Warner Music maintains international operations in Argentina, Australia, Brazil, Canada, Croatia, Denmark, France, Germany, Greece, Hong Kong, Hungary, India, Ireland, Malaysia, Mexico, Philippines, Thailand, and the United Kingdom, among others. Warner Music Group also includes Warner/Chappell Music, one of the world's leading music publishers, with a catalog of more than one million copyrights worldwide. * * * As reported in the Troubled Company Reporter on Aug. 30, 2007, Fitch Ratings affirmed Warner Music Group Corp.'s 'BB-' Issuer Default Rating. The Rating Outlook is Stable. ============= G E R M A N Y ============= ATLAS FINANZ: Claims Registration Period Ends Dec. 12 ----------------------------------------------------- Creditors of ATLAS Finanz-, Verwaltungs- und Beteiligungsgesellschaft mbH have until Dec. 12 to register their claims with court-appointed insolvency manager Dieter Rasehorn. Creditors and other interested parties are encouraged to attend the meeting at 9:05 a.m. on Jan. 14, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Dessau Hall 123 Willy-Lohmann-Str. 33 Dessau Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dieter Rasehorn Muehlweg 16 06108 Halle Germany Tel: 0345/5220024 Fax: 0345/5220026 The District Court of COURT opened bankruptcy proceedings against ATLAS Finanz-, Verwaltungs- und Beteiligungsgesellschaft mbH on Nov. 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ATLAS Finanz-, Verwaltungs- und Beteiligungsgesellschaft mbH Poststrasse 7 06366 Koethen Attn: Hans-Joachim Kroeber, Manager Triftstr. 2 H 39387 Oschersleben Germany AYDIN HOCHBAU: Claims Registration Period Ends Dec. 12 ------------------------------------------------------ Creditors of Aydin Hochbau Fugen GmbH have until Dec. 12 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 9:30 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 Hamburg Hall B 405 Fourth Floor Annex Civil Justice Bldg. Sievkingplatz 1 20355 Hamburg Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Joern-H. Meyn Herrengraben 31 20459 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against Aydin Hochbau Fugen GmbH on Nov. 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: AYDIN HOCHBAU Fugen GmbH Hammer Steindamm 78 20535 Hamburg Germany BAYERWALD TRANS: Claims Registration Ends Jan. 10, 2008 ------------------------------------------------------- Creditors of Bayerwald Trans GmbH have until Jan. 10, 2008, to register their claims with court-appointed insolvency manager Dr. Helmut Holzapfel. Creditors and other interested parties are encouraged to attend the meeting at 10:00 a.m. on Feb. 12, 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. Helmut Holzapfel Ringstr. 2-4 94234 Viechtach Germany Tel: 09942/428 Fax: 09942/948050 + 6053 The District Court of Regensburg opened bankruptcy proceedings against Bayerwald Trans GmbH on Nov. 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Bayerwald Trans GmbH Brennberger Holz 3 93199 Zell Germany DEGENHARD BETEILIGUNGSGESELLSCHAFT: Claims Filing Ends Jan. 9 ------------------------------------------------------------- Creditors of Degenhard Beteiligungsgesellschaft mbH have until Jan. 9, 2008, to register their claims with court-appointed insolvency manager Volker Roemermann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Feb. 6, 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 Gifhorn Hall 118 Schlossgarten 4 38518 Gifhorn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Volker Roemermann Schiffgraben 59 30175 Hannover Germany Tel: 0511/342129 Fax: 0511/348064 The District Court of Gifhorn opened bankruptcy proceedings against Degenhard Beteiligungsgesellschaft mbH on Nov. 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Degenhard Beteiligungsgesellschaft mbH Attn: Walter Degenhard, Manager Riethornweg 6 31303 Burgdorf Germany FHS HARTMANN: Claims Registration Period Ends Jan. 10, 2008 ----------------------------------------------------------- Creditors of FHS Hartmann GmbH have until Jan. 10, 2008, to register their claims with court-appointed insolvency manager Jutta Ruedlin. Creditors and other interested parties are encouraged to attend the meeting at 10:15 a.m. on Jan. 23, 2008, at which time the insolvency manager will present her first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Kassel Hall 234 Friedrichsstrasse 32-34 34117 Kassel Germany The Court will also verify the claims set out in the insolvency manager's report at 10:00 a.m., on March 5, 2008, at the same venue. The insolvency manager can be reached at: Jutta Ruedlin Markt 4 34212 Melsungen Germany Tel: 05661 926280 Fax: 05661 9262820 E-mail: melsungen@Henningsmeier.de The District Court of Kassel opened bankruptcy proceedings against FHS Hartmann GmbH on Nov. 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: FHS Hartmann GmbH Bettenhauser Strasse 13 34266 Niestetal Germany FRANKONIA IMMOBILIENKONTOR: Claims Filing Ends January 7, 2008 -------------------------------------------------------------- Creditors of FRANKONIA Immobilienkontor GmbH & Co. KG have until Jan. 7, 2008, to register their claims with court-appointed insolvency manager Dr. Ruediger Werres. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Feb. 7, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 1240 12th Floor Luxemburger Str. 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 Tel: 0221/951446-20 Fax: +4922195144690 The District Court of Cologne opened bankruptcy proceedings against FRANKONIA Immobilienkontor GmbH & Co. KG on Nov. 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: FRANKONIA Immobilienkontor GmbH & Co. KG Attn: Frank Schmitz, Manager Klosterhof 4-6 50226 Frechen Germany GASTRO-CONZEPT GMBH: Claims Registration Ends Jan. 3, 2008 ---------------------------------------------------------- Creditors of Gastro-Conzept GmbH have until Jan. 3, 2008, to register their claims with court-appointed insolvency manager Thomas Bagh. Creditors and other interested parties are encouraged to attend the meeting at 10:00 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 Bielefeld Hall 4065 Fourth Floor Gerichtstrasse 66 33602 Bielefeld 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 Bagh Bunsenstr. 3 32052 Herford Germany The District Court of Bielefeld opened bankruptcy proceedings against Gastro-Conzept GmbH on Nov. 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Gastro-Conzept GmbH Kurfuerstenstr. 4 32052 Herford Germany GROSS & WERHEIT: Claims Registration Ends January 7, 2008 --------------------------------------------------------- Creditors of Gross & Werheit Verwaltungs- und Dienstleistungs GmbH have until Jan. 7, 2008, to register their claims with court-appointed insolvency manager Dr. Christoph Niering. Creditors and other interested parties are encouraged to attend the meeting at 9:05 a.m. on Feb. 7, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Cologne Meeting Hall 1240 12th Floor Luxemburger Str. 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. Christoph Niering Brabanter Str. 2 50674 Cologne Germany Tel: 992230-0 Fax: +4922199223035 The District Court of Cologne opened bankruptcy proceedings against Gross & Werheit Verwaltungs- und Dienstleistungs GmbH on Nov. 9. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Gross & Werheit Verwaltungs- und Dienstleistungs GmbH Attn: Wolfgang Werheit, Manager Stefanstr. 2-6 51145 Cologne Germany H UND K VERANSTALTUNGS: Claims Registration Period Ends Dec. 13 --------------------------------------------------------------- Creditors of H und K Veranstaltungs- und Verwaltungsgesellschaft mbH have until Dec. 13 to register their claims with court- appointed insolvency manager Falk Eppert. Creditors and other interested parties are encouraged to attend the meeting at 10:40 a.m. on Jan. 10, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Magdeburg Hall 14 Breiter Weg 203 - 206 39104 Magdeburg 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: Falk Eppert Goethestrasse 48 39108 Magdeburg Germany Tel: 0391/7331548 Fax: 0391/7392505 The District Court of Magdeburg opened bankruptcy proceedings against H und K Veranstaltungs- und Verwaltungsgesellschaft mbH on Nov. 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: H und K Veranstaltungs- und Verwaltungsgesellschaft mbH Attn: Steffen Schueler, Manager Bruno-Taut-Ring 167 39130 Magdeburg Germany IKB DEUTSCHE: German Banks Step In for Second Risk Coverage ---------------------------------------------------- A banking pool organized by Germany's state-owned KfW Bankengruppe will bail out IKB Deutsche Industriebank AG for the second time in under four months, agreeing to cover US$520 million in risks for the troubled lender, published reports say. The banks, along with KfW, the financial supervisor BaFin and Germany's financial watchdog, Bundesbank, reached an agreement Wednesday, without disclosing the details of the additional risks covered by the parties, the International Herald Tribune relates. The agreement, Bloomberg News reports, brings a total of up to EUR6.1 billion in potential losses at IKB and its affiliate Rhineland Funding Capital Corp., which KfW and German banking associations will cover. KfW, which holds a 38 percent stake in IKB, said Nov. 27 that it is increasing its risk shield for IKB by EUR2.3 billion to EUR4.8 billion based on new risk valuation information. The development bank has agreed in July to take over all of IKB's obligations related to Rhineland Funding when the vehicle's commercial paper couldn't be sold to investors following the U.S. subprime crisis, Bloomberg relates. IKB has earlier notified Bundesbank and BaFin that it could face more liquidity problems if it fails to secure necessary financing to continue operations. About KfW Bankengruppe Headquartered in Frankfurt, Germany, KfW Bankengruppe -- http://www.kfw.de/EN_Home/-- deals with the promotion of the development and transformation countries, export and project financing, promotion of middle class, existence founders and start ups, promotion living economy, environmental and climatic protection, education and infrastructure. With 3,900 employees, KFW Bankengruppe has its locations in Berlin, Bonn and Frankfurt am Main. Owned by the federal government and the Laender, it is one of the leading banks in Germany. About IKB Deutsche Headquartered in Dusseldorf, Germany, IKB Deutsche Industriebank AG -- http://www.ikb.de/-- pioneered the long-term industrial loan and provides medium-sized companies with long-term financing. The bank operates in several German locations, as well as branches in the United Kingdom, Luxembourg, Spain and France. IKB had previously invested in securitized loans on the US market for subprime mortgages, which are now almost worthless. This resulted in a deep-seated crisis within the bank, pushing it on the brink of bankruptcy. * * * As reported in the TCR-Europe on Oct. 4, 2007, Fitch Ratings has downgraded IKB Deutsche Industriebank AG's hybrid debt securities to Long-term 'BB-' from 'A'. They remain on Rating Watch Negative. IKB is rated Long-term Issuer Default 'A+' with Stable Outlook, Short-term IDR 'F1', Support '1' and Individual 'F'. Its subordinated debt issues are rated 'A'. IKB's hybrid capital instruments rated Long-term 'BB-' and on RWN are: -- EUR75 million IKB Funding Trust I's perpetual notes -- EUR400 million Funding Trust II's perpetual notes -- EUR100 million IKB International SA's capital contribution certificates maturing in 2009 -- EUR200 million Hybrid Raising GmbH's perpetual capital notes linked to a silent participation in IKB -- EUR200 million Capital Raising GmbH's perpetual notes linked to a silent participation in IKB -- EUR70 million IKB International SA's capital contribution certificates maturing in 2010 -- EUR150 million Propart Funding Ltd's profit participation certificates maturing in 2015. LA FORESTAL: Claims Registration Period Ends Jan. 3, 2008 --------------------------------------------------------- Creditors of La Foresta Moebelagentur Verwaltungs-GmbH have until Jan. 3, 2008, to register their claims with court- appointed insolvency manager Sylvia Fiebig. Creditors and other interested parties are encouraged to attend the meeting 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 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: Sylvia Fiebig Jungfernstieg 51 20354 Hamburg Germany The District Court of Detmold opened bankruptcy proceedings against La Foresta Moebelagentur Verwaltungs-GmbH on Nov. 10. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: La Foresta Moebelagentur Verwaltungs-GmbH Hainbergstr. 1 32816 Schieder-Schwalenberg Germany LIPA BAUENTWICKLUNGS: Claims Registration Ends Jan. 4, 2008 ----------------------------------------------------------- Creditors of LIPA Bauentwicklungsgesellschaft mbH have until Jan. 4, 2008, to register their claims with court-appointed insolvency manager Achim Thomas Thiele. Creditors and other interested parties are encouraged to attend the meeting at 10:30 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 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: Achim Thomas Thiele Bronnerstrasse 7 44141 Dortmund Germany The District Court of Dortmund opened bankruptcy proceedings against LIPA Bauentwicklungsgesellschaft mbH on Nov. 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: LIPA Bauentwicklungsgesellschaft mbH Alfred-Fischer-Weg 4 59073 Hamm Germany M & M AUTOMOBILE: Claims Registration Period Ends Jan. 9, 2008 -------------------------------------------------------------- Creditors of M & M Automobile GmbH have until Jan. 9, 2008, to register their claims with court-appointed insolvency manager Michael Krause. Creditors and other interested parties are encouraged to attend the meeting at 11:00 a.m. on Feb. 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 Neuruppin Hall 325 Karl-Marx-Strasse 18a 16816 Neuruppin Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Michael Krause Putlitzer Strasse 30 16928 Pritzwalk Germany The District Court of Neuruppin opened bankruptcy proceedings against M & M Automobile GmbH on Nov. 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: M & M Automobile GmbH Lindenberger Strasse 5 19322 Wittenberge Germany PARTNERGLUECK - PARTNERSCHAFTSDIENSTE: Claims Filing Ends Jan. 8 ---------------------------------------------------------------- Creditors of Partnerglueck - Partnerschaftsdienste fuer serioese und niveauvolle Kontakte GmbH have until Jan. 8, 2008, to register their claims with court-appointed insolvency manager Sebastian Henneke. Creditors and other interested parties are encouraged to attend the meeting at 8:30 a.m. on Feb. 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 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 Partnerglueck - Partnerschaftsdienste fuer serioese und niveauvolle Kontakte GmbH on Nov. 12. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Partnerglueck - Partnerschaftsdienste fuer serioese und niveauvolle Kontakte GmbH Stefanstr. 2 44137 Dortmund Germany PIANO SPRENGER: Claims Registration Ends January 8, 2008 -------------------------------------------------------- Creditors of Piano Sprenger Musikhaus GmbH have until Jan. 8, 2008, to register their claims with court-appointed insolvency manager Bernhard Schuering. Creditors and other interested parties are encouraged to attend the meeting at 2:00 p.m. on Jan. 29, 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 Oldenburg Meeting Hall Second Floor Elisabethstrasse 6 26135 Oldenburg 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: Bernhard Schuering Eichenstrasse 77 a 26131 Oldenburg Germany Tel: 0441 3618450 Fax: 0441 36184520 The District Court of Oldenburg opened bankruptcy proceedings against Piano Sprenger Musikhaus GmbH on Nov. 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Piano Sprenger Musikhaus GmbH Achternstrasse 9-10 26122 Oldenburg Germany Attn: Ralf Cording, Manager Koenigsberger Strasse 11 26655 Westerstede Germany RADOJEVIC GASTSTATTEN: Claims Registration Ends Jan. 4, 2008 ------------------------------------------------------------ Creditors of Radojevic Gaststattengesellschaft mbH have until Jan. 4, 2008, to register their claims with court-appointed insolvency manager Cornelia Moenert. Creditors and other interested parties are encouraged to attend the meeting at 9:00 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 Bielefeld Hall 4065 Fourth Floor Gerichtstrasse 66 33602 Bielefeld 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: Cornelia Moenert Lise-Meitner-Str. 13 33605 Bielefeld Germany The District Court of Bielefeld opened bankruptcy proceedings against Radojevic Gaststattengesellschaft mbH on Nov. 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Radojevic Gaststattengesellschaft mbH Heinrich-Forke-Str. 5 33609 Bielefeld Germany RUBIKON-BERGER GMBH: Claims Registration Period Ends Dec. 20 ------------------------------------------------------------ Creditors of Rubikon-Berger GmbH have until Dec. 20 to register their claims with court-appointed insolvency manager Thomas Besenbruch. Creditors and other interested parties are encouraged to attend the meeting at 2:30 p.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 Zweibruecken Room 100 66482 Zweibruecken 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 Besenbruch Schillerstr. 40 66482 Zweibr�cken Tel: 06332/928624 Fax: 06332/928619 The District Court of Zweibruecken opened bankruptcy proceedings against Rubikon-Berger GmbH on Nov. 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Rubikon-Berger GmbH Roentgenstr. 78 66482 Zweibruecken Attn: Jutta Berger, Manager Wiener Str. 11 66482 Zweibruecken Germany SPEDITION SCHULZ: Claims Registration Period Ends Jan. 3, 2008 -------------------------------------------------------------- Creditors of Spedition Schulz GmbH have until Jan. 3, 2008, to register their claims with court-appointed insolvency manager Dr. Rainer Dahlmeier. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Feb. 11, 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 Schwerin Hall 7 Demmlerplatz 14 19053 Schwerin 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. Rainer Dahlmeier Demmlerplatz 3 19053 Schwerin Germany The District Court of Schwerin opened bankruptcy proceedings against Spedition Schulz GmbH on Nov. 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Spedition Schulz GmbH Attn: Heike Schulz Lindenstr. 7a 19230 Viez Germany SKAN-FORM 2003: Claims Registration Period Ends Dec. 11 ------------------------------------------------------- Creditors of SKAN-FORM 2003 GmbH have until Dec. 11 to register their claims with court-appointed insolvency manager Tobias Hoefer. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Jan. 15, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Darmstadt Hall 4.311 Fourth Floor Building D Mathildenplatz 15 64283 Darmstadt Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Tobias Hoefer Soldnerstr. 2 68219 Mannheim Germany Tel: 0621-87708-0 Fax: 0621-8770820 The District Court of Darmstadt opened bankruptcy proceedings against SKAN-FORM 2003 GmbH on Jan. 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SKAN-FORM 2003 GmbH Otto-Roehm-Strasse 51 64293 Darmstadt Attn: Preben Hartmann Johansen, Eberstaedter Strasse 26 64367 Muehltal Germany SYSTEM TO WIN: Claims Registration Period Ends Jan. 10, 2008 ------------------------------------------------------------ Creditors of SYSTEM TO WIN Gesellschaft zur Beratung kundenorientierter Unternehmen mbH have until Jan. 10, 2008, to register their claims with court-appointed insolvency manager Peter M. Hoffmann. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Jan. 31, 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 Kempten Meeting Hall 157/I. Residenzplatz 4-6 87435 Kempten Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Peter M. Hoffmann Donaustr. 64 87700 Memmingen Germany Tel: (083 31) 92 45 97-0 Fax: (083 31) 92 45 97-99 The District Court of Kempten opened bankruptcy proceedings against SYSTEM TO WIN Gesellschaft zur Beratung kundenorientierter Unternehmen mbH on Nov. 8. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: SYSTEM TO WIN Gesellschaft zur Beratung kundenorientierter Unternehmen mbH Taubenberg 3 88131 Bodolz Germany ============= I R E L A N D ============= SANYO ELECTRIC: Unveils 2008-2010 Midterm Business Plan ------------------------------------------------------- Sanyo Electric Co., Ltd., announces a new "Mid-term Business Strategy," in preparation for a new three-year 'Mid-term Management Plan' which will be outlined in more detail at a future date for Fiscal Year 2008 to Fiscal Year 2010. Sanyo, as outlined in its current 'Mid-term Management Plan' implemented from FY2005 to FY2007, has been focusing on structural transformation aimed at revitalizing and reforming the company and, as a result, the fruits of these activities are certainly beginning to show in earning power, financial strength, etc. Looking forward to the next three-year period, Sanyo will be fully revitalized as it makes advances to furthering its aim to become a truly global company, based on the 'Master Plan'. The 'Master Plan' is a summary of the future direction of the Sanyo Group and includes: 1) management goals set in the new 'Mid-term Management Plan'; 2) emphasized and concentrated investments based on Group-wide business strategy; 3) improve earning power of the finished goods business and creating the necessary structure to strengthen business expansion overseas; 4) maintain a sound financial structure through thorough cash flow management. Based on the objectives outlined in the 'Master Plan', Sanyo will create a new three-year 'Mid-term Management Plan'. In the new plan, each business will be converted into a profitable business entity, enabling Sanyo to grow and progress as it becomes a truly global company. Outline of the 'Master Plan' for FY2008-FY2010 Mid-term Management Policies Establish the foundation for a highly profitable company capable of regaining public trust and reputation while becoming 'a leading provider of Environment- and Energy-related products'. Goals of Mid-term Management 1. Set a goal/challenge to achieve JPY100 billion or more in consolidated operating profit by the end of fiscal year 2010. Consolidated sales of JPY2,250 billion, consolidated operating profit of JPY90 billion (operating profit ratio of 4%); 2. In 1,000 days (three years), convert each business into a profitable business entity. Essential Business Strategies 1. Business Grouping Sanyo will classify its group business fields into the following three categories according to the business direction and associated technology: 'Energy', 'Electronics', and 'Ecology'. These three business areas will become the engine for fulfilling the revitalization of Sanyo, and pave the way for the challenge of fiscal year 2010 to be the most profitable year in Sanyo's history. 2. An image of Sanyo's overall business strategy is available at the company's Web site: http://ResearchArchives.com/t/s?25e5 3. Individual Business Strategy Considering the company's customers, the marketplace, and various business models, etc. from an overall Group Management Strategy point of view, the company will divide its business fields into two groups: the 'Component Business Group' and the 'Finished Goods Business Group'. Business strategies applicable to either group will be implemented. Component Business Group ------------------------ Over three years, a facilities investment of JPY350 billion will be conducted; however, approximately 70% of these investments will be concentrated on rechargeable batteries, solar, and electronic devices. Rechargeable battery business Implement an investment of an approximately JPY100 billion over the next three years to expand lithium-ion battery production capacity and challenge the HEV market in earnest in the near future, aiming for further growth. Solar business Implement an investment total of approximately JPY80 billion over the next three years, and increase production capacity by 2010 to 650 MW. Electronic device business Emphasize investments in top share products such as condensers, optical pickups, vibration motors (for mobile handsets), etc. Semiconductor business Through the fruits of structural transformation, it has been converted into a unit able to produce a positive operating profit; however, in order to hereafter create a stable revenue base, Sanyo will make use of its proprietary know-how in analog technology and the like to further streamline and improve operations. Finished Goods Business Group ----------------------------- Sanyo will pursue the optimization of domestic businesses and strengthening overseas expansion to stabilize and secure profit. As for strengthening overseas expansion and development, along with setting sales goals of Sanyo-branded finished goods, an executive-class staff member will be placed in each region overseas, enabling the global sales structure to be made more robust. Digital business Strengthen business-to-business operations (OEM, etc.) and other special client arrangements. Commercial business Along with increasing profitability by pursuing thorough optimization in the domestic market, resources will be shifted to focus on opportunities overseas to expand and grow the business. White goods/Home electronics business Along with strengthening product appeal based on Sanyo's unique technology such as those related to the environment, sales and distribution costs will be reevaluated, and through optimizing sales companies and sales networks overseas, the sales division will be able to act more effectively, raising profitability. 4. Financial Strategy With the efforts made over the past three years to achieve financial stability, interest-bearing debt is expected to be reduced to JPY530 billion by March 2008, JPY720 billion down from the first half of FY2005. Sanyo will enhance its efforts toward cash flow-focused management over the next three years. About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. SANYO ELECTRIC: Ties Up with Aeon to Develop Home Electronics ------------------------------------------------------------- Sanyo Electric Co., Ltd., said it will jointly develop home electronics to sell under Aeon Co.'s private brand to revive its struggling business, Yuko Inoue writes for Reuters. The report states that Aeon, under its "Top Value" brand, will start selling Sanyo's refrigerators, rice cookers and other home electronics at its 500 stores throughout the nation in May. Sanyo, which is in the midst of a turnaround process with the help of shareholder Goldman Sachs, earlier said that it will be focusing on its cash cow operations like rechargeable batteries and lithium-ion batteries but will not withdraw from from its home appliances business, relates Reuters. Reuters quotes Sanyo Electric's president Seiichiro Sano as saying, "We will strengthen ecology-friendly consumer electronics by hearing the voice of Aeon's customers. The partnership with Aeon is a good opportunity for us." In line with this, Aeon, according to the report, will install Sanyo's eco-friendly products like display cases and air conditioners. The Troubled Company Reporter Asia-Pacific reported on Nov. 29, 2007, that Sanyo reported a JPY16.0-billion net profit for the 6-month period ended September 30, 2007, of the current fiscal year due to cost reductions and stronger sales in the digital camera and components business. In its three-year midterm business plan, Sanyo aims to achieve a JPY100 billion operating profit by the year ending March 2010. About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. SANYO ELECTRIC: To Make New Fuel Cell Company with Nippon Oil ------------------------------------------------------------- Sanyo Electric Co., Ltd. and Nippon Oil Corporation have agreed to create a new company for stationary fuel cell systems planned for establishment in April 2008. Sanyo and Nippon Oil, who have been partners in fuel cell development for years, aim to enhance efforts to shorten the development period, improve performance and reliability of the systems, and reduce costs through optimal production efficiency. Kyodo News, in its report, states that the envisioned fuel cells will involve producing electricity by making the oxygen they take in from the atmosphere react chemically with hydrogen extracted from kerosene or liquefied petroleum gas. Fuel cells, Kyodo adds, have drawn close attention in industry circles because the sole byproduct from oxygen-hydrogen reactions is water and they do not emit carbon dioxide, believed to be one of the leading causes of climate change. Sanyo, will first establish and spin off a new company dedicated to stationary fuel cell business and then Nippon Oil will acquire 81% of the shares issued. Kyodo News reports that Sanyo will start the fuel-cell operations as an independent company on April 1. The joint venture will develop, plan, system design and product manage the fuel cell systems. However, the production and assembly will be consigned to Sanyo Tokyo Manufacturing Co., Ltd., then Nippon Oil will purchase the systems from the new company and sell them to customers. The name of the company has yet to be determined. Senior Vice President of Sanyo, Company President of Clean Energy Company, Tadao Shimada is quoted as saying, "Hereafter, by combining the strengths of both companies, and increasing the pace of a low-cost, highly reliable stationary fuel cell system, home-use fuel cell systems will become commercialized more quickly." About Sanyo Electric Headquartered in Osaka, Japan, Sanyo Electric Co., Ltd. -- http://www.sanyo.com/-- is one of the world's leading manufacturers of consumer electronics products. The company has global operations in Brazil, Germany, India, Ireland, Spain, the United States and the United Kingdom, among others. * * * In March 2, 2007, Fitch Ratings placed SANYO Electric Co. Ltd.'s BB+ long-term foreign and local currency issuer default and senior unsecured ratings on rating watch negative. ========= I T A L Y ========= ALITALIA SPA: Ryanair Suing European Commission over Volare Aid --------------------------------------------------------------- Ryanair is suing the European Commission for failing to act on its complaint against state aid given to Volare S.p.A., a unit of Alitalia S.p.A., Jonathan Saul of Reuters reports. "The Italian government's recurring attempts to protect Italian aviation include the bailout of Volare and its subsequent transfer to Alitalia," Ryanair CEO Michael O'Leary was quoted by Reuters. "The write-off of some EUR20 million of airport debts is a blatant abuse of EU state aid rules, yet the Commission has refused to do anything about this since 2005," Mr. O'Leary added. Ryanair added it has no choice but to challenge the Commission's inaction by lodging a case with the European Court of First Instance. As reported in the TCR-Europe on Nov. 27, 2007, Ryanair has filed a case against the European Commission in the European Court for the latter's inaction on complaints against approximately EUR500 million in illegal state aid continually given to Olympic Airlines S.A. Ryanair has also hit the Commission's inaction on state aids given to Deutsche Lufthansa AG and Air France-KLM. About Alitalia Headquartered in Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it/-- provides air travel services for passengers and air transport of cargo on national, international and inter-continental routes. The Italian government owns 49.9% of Alitalia. The company has operations in Argentina. Despite a EUR1.4 billion state-backed restructuring in 1997, Alitalia posted net losses of EUR256 million and EUR907 million in 2000 and 2001 respectively. Alitalia posted EUR93 million in net profits in 2002 after a EUR1.4 billion capital injection. The carrier booked annual net losses of EUR520 million in 2003, EUR813 million in 2004, EUR168 million in 2005, and EUR625.6 million in 2006. Italian Transport Minister Alessandro Bianchi has warned that Alitalia may file for bankruptcy if the current attempt to sell the government's 49.9% stake fails. ITALFINANCE 2006-1: S&P Removes Class A's BB+ Ratings from Watch --------------------------------------------------------------- Standard & Poor's Ratings Services has removed from CreditWatch with negative implications and affirmed its credit rating on the class A notes issued by Italfinance Securitisation Vehicle S.r.l. series 2006-1. At the same time, the class B notes were affirmed. Standard & Poor's placed the class A notes on CreditWatch negative on Aug. 21, 2007. The removal of the notes from CreditWatch follows a reassessment of the originator's credit quality. The ratings on the Italfinance 2006-1 class A and B notes are supported by Banca Italease SpA's credit quality. This credit linking affects the cash flow analysis, as Standard & Poor's assumes that Banca Italease is active in sustaining the transaction. Italfinance 2006-1 was backed at closing by a portion of the remuneration of the junior unrated asset-backed notes issued by Italease Finance SpA series 2002-1, 2003-1, 2004-1, and 2005-1. Following the redemption in July 2007 of Italease 2002-1, the transaction is now backed only by the portion of the junior remuneration related to series 2003-1, 2004-1, and 2005-1. Standard & Poor's ratings on the notes relied on Banca Italease providing support in several ways: -- Our rating assumptions included recoveries from the sale or re-leasing of the assets, giving higher recoveries from the portfolio. Title to the leased assets remains with the originator and is not transferred to the issuer. Therefore, to give credit to historical recoveries from the sale or release of the assets in the market, Standard & Poor's relies on the creditworthiness of Banca Italease in this transaction. -- Servicing fees were modeled as detailed in the servicing agreement, as opposed to stressed servicing fees. -- Collections from the borrowers are deposited in accounts opened in Banca Italease's name, and transferred within one business day to the original issuer account. Commingling risk may arise if Banca Italease and/or any of its account banks default. Banca Italease indemnifies the original issuer for any amount lost or frozen due to the default of any of its account banks where collections are credited. -- For Italease Finance series 2003-1 only, for the amount recovered through sale or re-lease of the assets for the defaulted receivables, Banca Italease indemnifies the original issuer for any amount lost or frozen due to the default of the Banca Italease network. The cash flow assumptions for the class A and B notes continue to factor in the originator's active role throughout the transaction term. The ratings on the class A and B notes will continue to reflect the structure's reliance on the comprehensive support provided by Banca Italease. Any changes in Banca Italease's credit quality are likely to affect the outstanding ratings on Italfinance 2006-1. The ratings assigned to Italfinance 2006-1 might exhibit further negative movements going forward given the originator's credit quality. Ratings List Italfinance Securitisation Vehicle S.r.l. EUR191.765 Million Asset-Backed Floating-Rate Notes Series 2006-1 Class Rating To From Rating Removed From CreditWatch With Negative Implications And Affirmed A BB+ BB+/ Watch Neg Rating Affirmed B BB =================== K A Z A K H S T A N =================== ACORD-CONSULTING LLP: Proofs of Claim Deadline Set Jan. 1, 2008 --------------------------------------------------------------- LLP Acord-Consulting has declared insolvency. Creditors have until Jan. 1, 2008, to submit written proofs of claims to: LLP Acord-Consulting Abai Str. 190-9 Taraz Jambyl Kazakhstan ARDAGER LLP: Proofs of Claim Deadline Set Jan. 1, 2008 ------------------------------------------------------ The Specialized Inter-Regional Economic Court of Akmola has declared LLP Ardager insolvent. Creditors have until Jan. 1, 2008, 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 (31622) 25-79-32 DANKO REAL: Claims Filing Period Ends Dec. 28 --------------------------------------------- LLP Danko Real Estate has declared insolvency. Creditors have until Dec. 28 to submit written proofs of claims to: LLP Danko Real Estate Furmanov Str. 42/44 Almaty Kazakhstan JANA TABYS: Creditors' Claims Due on Jan. 1, 2008 ------------------------------------------------- LLP Jana Tabys Aktobe Company has declared insolvency. Creditors have until Jan. 1, 2008, to submit written proofs of claims to: LLP Jana Tabys Aktobe Company Turgenev Str. 94, 1-59 Aktobe Aktube Kazakhstan KEN KAZNA: Claims Registration Ends Jan. 2, 2008 ------------------------------------------------ The Specialized Inter-Regional Economic Court of North Kazakhstan has declared LLP Ken Kazna Agro insolvent on Oct. 8. Creditors have until Jan. 2, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of North Kazakhstan Department of Agriculture Konstitutsiya Kazakhstana Str. 38 Petropavlovsk North Kazakhstan Kazakhstan MEGAPOLIS-2000 LLP: Proofs of Claim Deadline Set Jan. 1, 2008 ------------------------------------------------------------- The Specialized Inter-Regional Economic Court of Akmola has declared LLP Megapolis-2000 insolvent. Creditors have until Jan. 1, 2008, 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 (31622) 25-79-32 NIKA-INVEST LLP: Creditors Must File Claims Dec. 28 --------------------------------------------------- LLP Nika-Invest has declared insolvency. Creditors have until Dec. 28 to submit written proofs of claims to: LLP Nika-Invest Lenin Str. 18 Kaskelen Karasaisky District Almaty Kazakhstan SEMEY-GORTOP LLP: Claims Filing Period Ends Jan. 2, 2008 -------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP Semey-Gortop insolvent. Creditors have until Jan. 2, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Ushanov Str. 78-27 Ust-Kamenogorsk East Kazakhstan Kazakhstan Tel: 8 (3232) 26-24-41 SPETSMETALLURGMONTAGE LLP: Creditors' Claims Due on Jan. 1, 2008 ---------------------------------------------------------------- LLP Firm Spetsmetallurgmontage has declared insolvency. Creditors have until Jan. 1, 2008, to submit written proofs of claims to: LLP Firm Spetsmetallurgmontage Manufacturing base Imstalcon-1 Temirtau Karaganda Kazakhstan STROYINVEST-T LLP: Claims Registration Ends Jan. 1, 2008 -------------------------------------------------------- LLP Construction Company Stroyinvest-T has declared insolvency. Creditors have until Jan. 1 to submit written proofs of claims to: LLP Construction Company Stroyinvest-T Jambyl Ave. 8a Taraz Jambyl Kazakhstan =================== K Y R G Y Z S T A N =================== ELECTRO-NIKS LLC: Creditors Must File Claims by December 31 ----------------------------------------------------------- LLC Electro-Niks (INN 00603200710077) has declared insolvency. Creditors have until Dec. 31 to submit written proofs of claim to: LLC Electro-Niks Kurmanjan Datka Str. 287 Osh Kyrgyzstan =========== R U S S I A =========== ALTAIELECTROSET'REPAIR: Court Starts Bankruptcy Supervision ----------------------------------------------------------- The Arbitration Court of Altai krai commenced bankruptcy supervision procedure on OJSC Altaielectroset'repair on Oct. 18. The case is docketed under Case No. A03-9145/07-B. The Interim Manager is: E. V. Suatina 10 District 13-16 Prokopyevsk 653052 Kemerov Russia The Debtor can be reached at: OJSC Altaielectroset'Repair Brilliantovaya Str. 2 656037 Barnau Russia EDEL CAPITAL: Moody's Affirms US$250 Million LPNs at Ba1 -------------------------------------------------------- Moody's Investors Service assigned a Ba1 corporate family rating to OAO Svyazinvestneftekhim, a holding company for the Republic of Tatarstan's key assets. At the same time, Moody's affirmed the existing Ba1 rating of the US$250 million LPNs issued by Edel Capital S.A. for the sole purpose of financing its loan to Sinek Capital S.A., a subsidiary of SINEK. The outlook on the ratings is stable. Being 100% owned by the Republic of Tatarstan, SINEK is a government-related issuer. Its Ba1 corporate family rating reflects the application of Moody's methodology for GRIs, with the combination of the following inputs: -- Baseline credit assessment in the range of 14 to 16 (on a 1-21 scale, where 1 represents lowest credit risk), which corresponds to the B category; -- Ba1 local currency rating of the Republic of Tatarstan; -- High dependence; -- High support. SINEK's BCA is underpinned by: (i) its position as an investment vehicle for the Republic of Tatarstan to own and manage the relationship with key companies operating on the territory of the Republic, including SINEK's important role in attracting external funds for and facilitating investments in the Republic's social and economic programs; (ii) representation of strong businesses with sustainable revenue stream in SINEK's portfolio, including Tatneft (Russia's sixth largest oil company, not rated) and Nizhnekamskneftekhim (or NKNK, a large Russian petrochemical company rated B1/Stable); this is accompanied by SINEK's strong influence over the dividend payments of the companies in its portfolio, benefiting from a strong board representation as well as a golden share in addition to blocking stakes in its major holdings; (iii) currently overall favorable market environment for SINEK's major portfolio companies in the oil and energy sectors; (iv) interest income from SINEK's long-term bank deposits more than offsetting the debt interest expense. However, the company's BCA is constrained by these factors: (i) risks of significant regional, industry and single company concentrations, with SINEK's direct and indirect shareholding in Tatneft representing approximately 60% of its total portfolio and dividends from Tatneft accounting for 82% of SINEK's total dividends in 2006, thus making SINEK's revenues sensitive to oil prices; (ii) limited visibility whether SINEK's portfolio companies as well as the Republic will comply with the Republic's latest guideline for a 30% dividend payout for its companies in the face of large investment needs of the companies; (iii) SINEK's debt, though relatively moderate compared to its portfolio value, remains significant vs. its cash revenue stream of dividends and interest received; (iv) risks associated with SINEK's plans to establish new shareholding in the real state sector, though under the Republic's guidance, including potential increase in leverage; (v) limited amount of marketable and liquid shareholdings in the company's portfolio and potentially a high volatility of the portfolio; (vi) still developing corporate standards, complex corporate structures, limited transparency of financial policy at the portfolio companies and in the holding; (vii) yet limited track record of operations. The high dependence reflects the role of SINEK as a quasi government agency and the influence government has on the management of the holding and its participations, the significance of the portfolio companies to the economy of Tatarstan and the fact that both entities are highly correlated with oil prices with Tatneft being the largest single taxpayer for the Republic's budget. It also reflects the existence of a cross default clause between SINEK, SINEK Capital and the Republic of Tatarstan. High support reflects the company's importance for the Republic of Tatarstan as a financing vehicle, its legal status and its ownership structure with a 100% state-ownership, and the high representation of the Republic's top officials at the Board of Directors (three out of eight members, including the Prime Minister of the Republic chairing the Board). The highest extent of support is confirmed by a guarantee provided by the Republic on SINEK's foreign debt represented by Edel Capital's LPNs as well as the company's access to low-interest loans from the Ministry of Finance of the Republic. SINEK's liquidity is at acceptable level due to a low amount of its short-term debt. As of June 30, 2007, the company's cash of RUB53.6 million covered 84% of its short-term debt. However, 60% of this short-term debt was represented by a loan from the Ministry of Finance of the Republic of Tatarstan. Increasing leverage might put pressure on liquidity, however Moody's understands that SINEK will seek for long-term debt at interest levels which could be offset by interest income earned. Edel Capital's LPNs are fully guaranteed by the Republic of Tatarstan. The latter's unconditional guarantee of RUR13 billion is at the moment equivalent to almost 2.0 of the amount of the notes. The stable outlook on the ratings reflects Moody's expectation that the company will maintain its role of the Republic of Tatarstan's asset manager and to attract funds to implement the Republic's strategy. No changes in the ownership are expected. The rating and the outlook are dependent on those of the Republic of Tatarstan and very sensitive to changes in support from the Republic. A decrease of support from the Republic will have a negative impact on SINEK's ratings. Any change in the Republic's rating or outlook will result in the same change of the ratin