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 11, 2007, Vol. 8, No. 245 Headlines A U S T R I A BEVENT GASTRONOMIE: Claims Registration Period Ends Dec. 21 BM BAUMANAGEMENT: Claims Registration Period Ends Dec. 21 GEA NOVA: Linz Court Orders Business Shutdown KTW SOFTWARE: Creditors' Meeting Slated for Dec. 21 LIDIJA VASIC: Claims Registration Period Ends Dec. 27 LOFTWERKSTATT BAUPROJEKTMANAGEMENT: Claims Filing Ends Dec. 23 OTHIL IMMOBILIEN: Claims Registration Period Ends Dec. 25 RAMANCU LLC: Claims Registration Period Ends Dec. 25 SCALET BAU: Feldkirch Court Orders Business Shutdown XACTDATA SOFTWARE: Feldkirch Court Orders Business Shutdown B E L G I U M POPE & TALBOT: Court Approves Stalking Horse Purchase Agreement POPE & TALBOT: Panel Asks Court to Deny Proposed DIP Financing POPE & TALBOT: U.S. Trustee Objects to Pulp Business Sale SOLUTIA INC: S&P Rates Proposed US$1.2 Bln Sr. Sec. Loan at B+ F R A N C E CHRYSLER LLC: S&P Keeps B Rating on US$2 Billion Term Loan HEXCEL CORP: Expects Double Digit Sales Growth in 2008 G E R M A N Y CORATEC GMBH: Claims Registration Period Ends Jan. 10, 2008 METALLBAU TUSSING: Claims Registration Period Ends Jan. 18, 2008 NORBERT E. JOECKEL: Claims Registration Ends Jan. 11, 2008 ORIENT TASTAN: Claims Registration Period Ends Jan. 18, 2008 TREOFAN GERMANY: Weak Liquidity Prompts S&P's Junks Ratings WINTERHOLER GMBH: Claims Registration Period Ends Jan. 11, 2008 I R E L A N D GAP INC: November 2007 Net Sales Up 11 Percent at US$1.54 Bln I T A L Y DANA CORP: Urges Bankruptcy Court to Disallow 1,064 Claims K Y R G Y Z S T A N LION-UG LLC: Creditors Must File Claims by January 16, 2007 P O L A N D ELEKTRIM SA: Creditors File PLN10.4 Million in Claims NETIA SA: Buys Stake in Systemy Informatyczne for PLN4 Million ZLOMREX INTERNATIONAL: Moody's Cuts Sr. Secured Rating to Caa2 ZLOMREX SA: Earns PLN79.52 Million for Third Quarter 2007 ZLOMREX SA: Moody's Cuts Corporate Family Rating to B3 P O R T U G A L BEARINGPOINT INC: Sept. 30 Bal. Sheet Upside-Down by US$362 Mln INTERTAPE POLYMER: Moody's Lifts Long-Term Debt Rating to B2 R U S S I A ADYGEISKIJ OJSC: Court Starts Bankruptcy Supervision Procedure BIJSKIJ SUGAR: Creditors Must File Claims by Jan. 1, 2008 COMSTAR-UNITED: Acquires 87.5% of RTC for US$21 Million FORD MOTOR: To Meet Striking Workers Today Over Wage Issue HAMKORBANK: Fitch Assigns B- Long-term Issuer Default Rating KIROV KOLKHOZ: Creditors Must File Claims by Feb. 1, 2008 KRASNOURAL'SKMEZHRAIGAS: Claims Filing Period Ends Jan. 1, 2008 LUCH OJSC: Creditors Must File Claims by Feb. 1, 2008 NATIONAL FACTORING: Moody's Places B2/NP/E+ Global Scale Ratings SEVERSTAL OAO: Earns US$1.33 Billion for First Nine Months 2007 SEVERSTAL OAO: To Consolidate Stake in SeverCorr SHUMIHINSKIJ ELEVATOR: Court Names V. A. Suvorova as Liquidator SVERDLOVSK OBLAST: S&P Affirms Long-Term Rating at 'BB' TUKZ LLC: Creditors Must File Claims by Jan. 1, 2008 VERKH-URYUMSKOYE: Creditors Must File Claims by Jan. 1, 2008 VKM LEASING: Fitch Lowers Long-term Issuer Default Rating to CC S L O V A K R E P U B L I C US STEEL: S&P Rates US$400 Million Senior Unsecured Notes at BB+ S P A I N IM CAJAMAR 5: Fitch Junks EUR15 Million Class E Notes S W I T Z E R L A N D APS DELTA: Creditors' Liquidation Claims Due by January 10, 2008 ASEFIN JSC: Basel-Stadt Court Closes Bankruptcy Proceedings BRANDER: Creditors' Liquidation Claims Due by January 28, 2008 BOUTIQUE MINOU: Creditors Must File Claims by January 31, 2008 BUCHER-KUCHEN JSC: Creditors Must File Claims Due by December 31 COMMEDIT LLC: Bern Court Starts Bankruptcy Proceedings INFINITESPEED JSC: Creditors Must File Claims by January 7, 2008 LA MERVEILLE: Basel-Country Court Closes Bankruptcy Proceedings LEXARE LLC: Creditors' Liquidations Claims Due by Jan. 3, 2008 SEDUZIONE BETRIEB: Aargau Court Starts Bankruptcy Proceedings T U R K E Y CALIK HOLDING: Fitch Puts LT Foreign & Local Currency IDRs at B+ PROFILO TELRA: Fitch Puts Junk Ratings on Non-Payment of Bonds U K R A I N E BONUS CJSC: Creditors Must File Claims by December 15 GARNISHOVKA LLC: Proofs of Claim Filing Deadline Set December 15 IMPEX TRADE: Creditors Must File Claims by December 15 MANUL LLC: Creditors Must File Claims by December 15 NADIYA LLC: Creditors Must File Claims by December 15 NRB UKRAINE: Moody's Lifts Deposit & Senior Debt Ratings to Ba2 RUDKA LLC: Creditors Must File Claims by December 15 TECHNOCOM-97 LLC: Creditors Must File Claims by December 15 VICTORIYA LLC: Creditors Must File Claims by December 15 U N I T E D K I N G D O M ACTIVATED PROMOTIONS: High Court Orders Wind-Up Process AUBERGINE ROOM: Calls In Liquidators from Wilkins Kennedy BBT LTD: Brings In Liquidators from Tenon Recovery BI-RIGHT LTD: Joint Liquidators Take Over Operations CONSTELLATION BRANDS: Commences Exchange Offer for US$700M Notes COUNTRYWIDE SECURITY: Taps Liquidators from Tenon Recovery COVENTRY CITY: Nears Takeover Deal With Alki David KEY EDGE: High Court Orders Wind Up Proceedings SEA CONTAINERS: Wins Arbitration Case Against GE Capital SHAW GROUP: Earns US$645,000 in 2007 Fourth Qtr. Ended Aug. 31 ********* ============= A U S T R I A ============= BEVENT GASTRONOMIE: Claims Registration Period Ends Dec. 21 ----------------------------------------------------------- Creditors owed money by LLC Bevent Gastronomie (FN 276132b) have until Dec. 21 to file written proofs of claim to court-appointed estate administrator Mario Kapp at: Mag. Mario Kapp Karntnerstr. 525-527 8054 Graz - Strassgang Austria Tel: 0316/225955 Fax: 0316/282013 E-mail: kapp@kapp.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 a.m. on Jan. 8, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Graz Hall K Room 205 Second Floor Graz Austria Headquartered in Vasoldsberg, Austria, the Debtor declared bankruptcy on Oct. 25 (Bankr. Case No. 40 S 24/07p). BM BAUMANAGEMENT: Claims Registration Period Ends Dec. 21 --------------------------------------------------------- Creditors owed money by LLC BM Baumanagement (FN 234789d) have until Dec. 21 to file written proofs of claim to court-appointed estate administrator Clemens Jaufer at: Dr. Clemens Jaufer LLC Scherbaum/Seebacher Rechtsanwalte Einspinnerg. 3/II 8010 Graz Austria Tel: 0316/83 24 60-0 Fax: 0316/832460-20 E-mail: office@scherbaum-seebacher.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Jan. 8, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Graz Room 205 Hall K Second Floor Graz Austria Headquartered in Gratkorn, Austria, the Debtor declared bankruptcy on Oct. 24 (Bankr. Case No. 40 S 28/07a). GEA NOVA: Linz Court Orders Business Shutdown --------------------------------------------- The Land Court of Linz entered Oct. 31 an order shutting down the business of LLC Gea Nova Handel (FN 251412z). Court-appointed estate administrator Norbert Mooseder 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. Norbert Mooseder Stelzhamerstr. 1 4400 Steyr Austria Tel: 07252/42424 Fax: 07252/42424-24 E-mail: lawfirm@gltp.at Headquartered in Hoersching, Austria, the Debtor declared bankruptcy on Oct. 30 (Bankr. Case No 38 S 57/07x). KTW SOFTWARE: Creditors' Meeting Slated for Dec. 21 --------------------------------------------------- Creditors owed money by LLC KTW Software & Consulting (FN 49239k) are encouraged to attend the creditors' meeting at 10:00 a.m. on Dec. 21. The creditors' meeting will be held at: The Land Court of Innsbruck Conference hall 214 Second Floor New Building Maximilianstrasse 4 6020 Innsbruck Austria Headquartered in Kirchbich, Austria, the Debtor declared bankruptcy on Oct. 31 (9 S 21/07y). Walter Waizer serves as the court-appointed estate administrator of the bankrupt's estate. The estate administrator can be reached at: Dr. Walter Waizer Schmerlingstrasse 4 6020 Innsbruck Austria Tel: 0512/588800 Fax: 0512/580989 E-mail: raewaizer@aon.at LIDIJA VASIC: Claims Registration Period Ends Dec. 27 ----------------------------------------------------- Creditors owed money by KEG Lidija VASIC Gebaudereinigung (FN 279511x) have until Dec. 27 to file written proofs of claim to court-appointed estate administrator Susanne Poeltenstein- Roseneggerat: Mag. Susanne Poeltenstein-Rosenegger Schulerstrasse 18 1010 Vienna Tel: 512 40 13 Fax: 512 40 13 22 E-mail: poeltenstein@anwaltsteam.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:15 a.m. on Jan. 8, 2008, 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. 30 (Bankr. Case No. 28 S 124/07z). LOFTWERKSTATT BAUPROJEKTMANAGEMENT: Claims Filing Ends Dec. 23 -------------------------------------------------------------- Creditors owed money by LLC Loftwerkstatt Bauprojektmanagement (FN 222227f) have until Dec. 23 to file written proofs of claim to court-appointed estate administrator Wilhelm Hausler at: Dr. Wilhelm Hausler Neunkirchner Strasse 17 2700 Wiener Neustadt Austria Tel: 02622/23221, 237 96-0 Fax: 02622/23221-22 E-mail: wilhelm.haeusler@rechtsexperte.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 10:00 a.m. on Jan. 8, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Wiener Neustadt Room 15 Wiener Neustadt Austria Headquartered in Welt, Austria, the Debtor declared bankruptcy on Oct. 25 (Bankr. Case No. 11 S 111/07w). OTHIL IMMOBILIEN: Claims Registration Period Ends Dec. 25 --------------------------------------------------------- Creditors owed money by LLC Othil Immobilien Verwertung (FN 129267z) have until Dec. 25 to file written proofs of claim to court-appointed estate administrator Johannes Jaksch at: Dr. Johannes Jaksch c/o Dr. Alexander Schoeller Landstrasser Hauptstrasse � 1030 Vienna Austria Tel: 713 44 33, 713 34 05 Fax: 713 10 33 E-mail: kanzlei@jsr.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:30 p.m. on Jan. 8, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 24 (Bankr. Case No. 6 S 135/07f). Alexander Schoeller represents Dr. Jaksch in the bankruptcy proceedings. RAMANCU LLC: Claims Registration Period Ends Dec. 25 ---------------------------------------------------- Creditors owed money by LLC Ramancu (FN 170101z) have until Dec. 25 to file written proofs of claim to court-appointed estate administrator Peter Zens at: Dr. Peter Zens c/o Dr. Norbert Schopf Esteplatz 5/5 1030 Vienna Austria Tel: 534 90- 0 Fax: 534 90 50 E-mail: office@schopf-zens.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 12:45 p.m. on Jan. 8, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1701 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 25 (Bankr. Case No. 6 S 137/07z). Norbert Schopf represents Dr. Zens in the bankruptcy proceedings. SCALET BAU: Feldkirch Court Orders Business Shutdown ---------------------------------------------------- The Land Court of Feldkirch entered Oct. 31 an order shutting down the business of LLC Scalet Bau (FN 70217k). Court-appointed estate administrator Ronald Sutter 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. Ronald Sutter Marktgasse 24 6800 Feldkirch Tel: 05522/72755 Fax: 05522/75125 E-mail: kanzlei@ronaldsutter.at Headquartered in Feldkirch-Gisingen, Austria, the Debtor declared bankruptcy on Oct. 30 (Bankr. Case No. 14 S 43/07x). XACTDATA SOFTWARE: Feldkirch Court Orders Business Shutdown ----------------------------------------------------------- The Land Court of Feldkirch entered Oct. 31 an order shutting down the business of LLC Xactdata Software (FN 205437p). Court-appointed estate administrator Bernhard Ess 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. 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 Headquartered in Feldkirch, Austria, the Debtor declared bankruptcy on Oct. 24 (Bankr. Case No 14 S 41/07b). Daniela Weiss represents Dr. Ess in the bankruptcy proceedings. ============= B E L G I U M ============= POPE & TALBOT: Court Approves Stalking Horse Purchase Agreement --------------------------------------------------------------- The Hon. Christoher S. Sontchi of the United States Bankruptcy Court for the District of Delaware approved in all respects the stalking horse purchase agreement Pope & Talbot Inc. and its debtor-affiliates entered into with International Forest Products Limited, for the sale of certain of their Wood Products Business Assets and the assumption of certain related liabilities. As reported in the Troubled Company Reporter on Nov. 30, 2007, Pope & Talbot Inc. and its debtor-affiliates conducted an extensive search for a qualified buyer of their assets, and determined that the binding proposal submitted by Interfor was the highest and best offer received for their assets employed in the Wood Products Business. In the event the U.S. Bankruptcy Court and the British Columbia Supreme Court overseeing the Debtors' CCAA proceedings approve a bid other than that of Interfor or the Debtors withdraw the Sale Procedures Motion and subsequently liquidate or dispose of their Wood Products Business Assets, Judge Sontchi authorizes the Debtors to pay Interfor: * a US$3,000,000 break-up fee, if the Purchaser is not in material breach of the Stalking Horse APA; and * its reasonable out-of-pocket expenses, in an amount not to exceed US$700,000, incurred in connection with the contemplated transactions under the Stalking Horse APA, provided that certain creditor representatives will have the opportunity to review and dispute the reasonableness of the expense. The U.S. Bankruptcy Court also approved in its entirety the Debtors' proposed bidding procedures for the sale of its Wood Products Business Assets, including: (1) the submission, consideration, qualification and acceptance of Qualified Overbids submitted to the Debtors; (2) the Auction; and (3) the identification and determination of the Successful Bid and the Back-Up Bid. The Auction will be held on Dec. 19, 2007, at 10:00 a.m. New York time, at the Lexington Avenue, New York office of the Debtors' counsel. The U.S. Bankruptcy Court will convene a hearing to approve the proposed Sale of the Debtors' Wood Products Business Assets on Jan. 7, 2008, at 2:00 p.m. prevailing Eastern time. Any objections to the Proposed Approval Order must be filed on or before Dec. 28, 2007, at 4:00 p.m. prevailing Eastern time. Judge Sontchi directs the Debtors to serve the Cure Cost Notice in connection with the assumption and assignment of certain contracts. Objections to the Cure Cost Notice must be filed on or before Dec. 18, 2007, at 4:00 p.m. prevailing Eastern time. No provision in the Bidding Procedures Order, Judge Sontchi held, will be deemed to constitute the consent of the Secured Lenders or the Official Committee of Unsecured Creditors to any bid and will not impair the ability of the Secured Lenders to act as Qualifying Bidders. The Debtors are not subject to any stay in the implementation, enforcement or realization of the Bidding Procedures Order, the U.S. Bankruptcy Court clarified. Monitor's Comments on Business Sale In its third report to the British Columbia Supreme Court, PricewaterhouseCoopers Inc., as monitor of the proceedings commenced by Pope & Talbot Ltd. and its subsidiaries under the Companies' Creditors Arrangement Act, believes that the Debtors' proposed bidding procedures support a sales process that should maximize realizations. The Monitor considers the restricted bidding timeline acceptable. The Monitor believes that the market in both Canada and the U.S. for the Wood Products Business has been adequately canvassed, with any interested parties having had sufficient opportunity to participate and to conduct due diligence, in a way that it can reasonably be expected to comply with the timeframes established by the Debtors. The Monitor is satisfied that, on balance and under the present circumstances, the Interfor APA was the best offer available to the Debtors and is appropriate as a stalking horse bid. About Pope & Talbot Headquartered in Portland, Oregon, Pope & Talbot Inc. (Other OTC:PTBT.PK) -- http://www.poptal.com/-- is a pulp and wood products business. Pope & Talbot was founded in 1849 and produces market pulp and softwood lumber at mills in the U.S. and Canada. Markets for the company's products include the U.S., Europe, Canada, South America and the Pacific Rim. The company and its U.S. and Canadian subsidiaries applied for protection under the Companies' Creditors Arrangement Act of Canada on Oct. 28, 2007. The Debtors' CCAA Stay expires on Jan. 16, 2008. The company and fourteen of its debtor-affiliates filed for Chapter 11 protection on Nov. 19, 2007 (Bankr. D. Del. Lead Case No. 07-11738). Laura Davis Jones, Esq. at Pachulski, Stang, Ziehl & Jones L.L.P. is Debtors' proposed bankruptcy counsel. When the Debtors filed for bankruptcy, they listed total assets of US$681,960,000 and total debts of US$601,090,000. The Debtors' exclusive period to file a plan expires on March 18, 2008. Pope & Talbot Pulp Sales Europe, LLC, a subsidiary, on Nov. 21, 2007, filed an application for relief under Belgian bankruptcy laws in the commercial court in Brussels. If the Belgian court grants Pope & Talbot Europe's application, it is expected it will be liquidated through the bankruptcy proceeding. (Pope & Talbot Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). POPE & TALBOT: Panel Asks Court to Deny Proposed DIP Financing -------------------------------------------------------------- The Official Committee of Unsecured Creditors in Pope & Talbot Inc. and its debtor-affiliates bankruptcy cases asks the United States Bankruptcy Court for the District of Delaware to deny the Debtors' proposed DIP Financing, or in the alternative, to make modifications to accommodate its objections. The Creditors Committee is concerned that the Debtors' proposed DIP financing prejudices the rights and interests of unsecured creditors. Both prior to and since the commencement of the Debtors' Chapter 11 cases, the actions of the Debtors' secured lenders have been motivated by one central, unwavering and inappropriate goal of forcing a liquidation of the Debtors' assets at the expense of the Debtors' other creditor constituents, Jason W. Staib, Esq., at Blank Rome LLP, in Wilmington, Delaware, the Creditors Committee's proposed counsel, contends. The Lenders, Mr. Staib argues, used the breach of a financial covenant under a certain prepetition credit agreement "to attempt to force a fire sale process" for the Debtors' businesses and to obtain more than US$3,300,000 in fees through a series of short term forbearance agreements. "The Debtors' DIP Financing Motion seek to effectuate a sale process that will provide unsecured creditors with less than two months to formulate and finalize a viable restructuring plan, and this limited time will effectively foreclose certain restructuring alternatives and may dictate the terms of a plan of reorganization," Mr. Staib says. It is likely that a reorganization of the Debtors' pulp business will yield significantly more value to unsecured creditors than will "an immediate forced liquidation, according to Mr. Staib. Thus, he avers, there is no justification for the Lenders' attempt to co-opt the process and conduct a "fire sale" of the Debtors' assets on an unreasonable timetable. Moreover, he adds, the Lender's "offensive" efforts in limiting the Creditors' Committee's ability to fulfill its fiduciary duties is evidenced by these provisions in the DIP Agreement: (i) It will be an event of default if the Creditors Committee's professionals, in conjunction with the Debtors' professionals, expend more than a projected amount set forth in the DIP budget; and (ii) Expenses incurred by the Creditors Committee in excess of the projected amount may not get paid. In light of those provisions, the Creditors Committee will be forced to decide between either (x) protecting the interests of unsecured creditors, or (y) creating an event of default, which would allow the DIP Lenders to foreclose on the Debtors' assets, Mr. Staib tells the Court. Given the Debtors' demonstrated inability to push back on the Lenders, the parties-in-interest look to the Court to help ensure that the Lenders are not permitted to trample the rights and interests of unsecured creditors and other constituencies in the Debtors' cases, Mr. Staib tells the Hon. Christopher S. Sontchi. The Creditors Committee maintains that the apparent lack of a financing alternative does not entitle a secured lender to obtain provisions in a DIP agreement that severely prejudices the rights and interests of unsecured creditors. As reported in the Troubled Company Reporter on Nov. 27, 2007, the Debtors entered into a DIP Loan Agreement dated Nov. 19, 2007, with Wells Fargo Financial Corporation Canada, as administrative agent, Ableco Finance LLC, as collateral agent; and certain other lenders, for a DIP facility aggregating US$89,062,301. The Court granted Debtors, on an interim basis, to borrow up to US$68,000,000. About Pope & Talbot Headquartered in Portland, Oregon, Pope & Talbot Inc. (Other OTC:PTBT.PK) -- http://www.poptal.com/-- is a pulp and wood products business. Pope & Talbot was founded in 1849 and produces market pulp and softwood lumber at mills in the U.S. and Canada. Markets for the company's products include the U.S., Europe, Canada, South America and the Pacific Rim. The company and its U.S. and Canadian subsidiaries applied for protection under the Companies' Creditors Arrangement Act of Canada on Oct. 28, 2007. The Debtors' CCAA Stay expires on Jan. 16, 2008. The company and fourteen of its debtor-affiliates filed for Chapter 11 protection on Nov. 19, 2007 (Bankr. D. Del. Lead Case No. 07-11738). Laura Davis Jones, Esq. at Pachulski, Stang, Ziehl & Jones L.L.P. is Debtors' proposed bankruptcy counsel. When the Debtors filed for bankruptcy, they listed total assets of US$681,960,000 and total debts of US$601,090,000. The Debtors' exclusive period to file a plan expires on March 18, 2008. Pope & Talbot Pulp Sales Europe, LLC, a subsidiary, on Nov. 21, 2007, filed an application for relief under Belgian bankruptcy laws in the commercial court in Brussels. If the Belgian court grants Pope & Talbot Europe's application, it is expected it will be liquidated through the bankruptcy proceeding. (Pope & Talbot Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). POPE & TALBOT: U.S. Trustee Objects to Pulp Business Sale --------------------------------------------------------- Kelly Beaudin Stapleton, the United States Trustee for Region 3, asks the United States Bankrupty Court to deny Pope & Talbot Inc. and its debtor-affiliates' proposed sale procedures for the sale of their pulp business assets to the extent that they seek conditional approval of the proposed bid protections for a subsequently-selected stalking horse bidder. Two of the Debtors' pulp business assets are in British Columbia and one is in Oregon. The Debtors received four or five binding proposals, during the week of Oct. 8, 2007, for the sale of substantially all of their assets including the Pulp Business Assets, and they have determined that a sale through their proposed bidding procedures will enable them to obtain the highest or best offer for the Pulp Business Assets. Having the proposed bid protections outlined in the Pulp Business Bidding Procedures is inappropriate and misleads prospective stalking horse bidders into believing that the amounts have been pre-approved by the Court, William K. Harrington, Esq., trial attorney for the U.S. Trustee, contends. Moreover, Mr. Harrington elaborates, the expedited time periods proposed by the Debtors for approval of the Pulp Business Bidding Procedures and Sale do not provide creditors with sufficient time: * to evaluate the proposed Sale, or the propriety of liquidating the assets at this juncture; or * for potential purchasers to perform due diligence with respect to the Sale. The U.S. Trustee asks the Debtors to confirm that it is their burden to address any and all issues related to consumer privacy under Section 363(b)(1) of the Bankruptcy Code, and consumer fraud under Section 363(o) of the Bankruptcy Code, through any order seeking approval of a Sale. Creditors Committee Similar to the U.S. Trustee's Objection, Jason W. Staib, Esq., at Blank Rome LLP, in Wilmington, Delaware, the Official Committee of Unsecured Creditors' proposed counsel, asserts that the proposed Pulp Business Bidding Procedures "unnecessarily invite excessive" stalking horse protections, as they suggest that the bidders "will be entitled to a break-up fee of up to 3.5% and reimbursement of out-of-pocket expenses up to US$700,000." Against this backdrop, the Creditors Committee asks the Court to revise the Pulp Business Bidding Procedures by: * extending the dates and deadlines in the Bidding Procedures by 60 days; * deleting any reference to the amounts and types of stalking horse protections the Debtors are willing to grant; and * allow its participation in any sale process. The Official Committee of Unsecured Creditors believes that in contrast to the Debtors' wood products business, the Debtors' pulp business has positive EBITDA, Mr. Staib tells the Hon. Christopher S. Sontchi. Moreover, the pulp market has shown steady improvements due to the closure of several Canadian and U.S. pulp mills and solid pulp demand, including an emerging demand for pulp in Asia, Mr. Staib notes. "Based on long-term supply and demand trends, the Debtors estimate that the price for pulp will continue to be strong," Mr. Staib points out. They, however, have been unable to find a stalking horse bidder for the pulp business, he notes. The proposed sale process for the Debtors' Pulp Business, Mr. Staib contends, is intended solely to allow their secured lenders to either (i) obtain immediate and enhanced recoveries; or (ii) grab the Debtors' assets "on the cheap". According to Mr. Staib, based on preliminary information the Creditors Committee have received to date, it is likely that: (a) a reorganization of the Debtors' pulp business will yield significantly more value to unsecured creditors than will "an immediate forced liquidation"; and (b) the Debtors' Pulp Business is able to sustain its operations with minimal financing needs. "The already inappropriate milestone requirements" set forth in the Debtors' proposed Pulp Business Bidding Procedures are "even more egregious" when considered in light of the Debtors' acknowledgment that they remain weeks away from completing a preliminary business plan for a stand-alone pulp business, Mr. Staib tells the Court. The Debtors and Lenders, Mr. Staib states, seek to effectuate a process that will provide unsecured creditors with less than two months to formulate and finalize a viable restructuring plan. "This limited time will effectively foreclose certain restructuring alternatives and may dictate the terms of a plan of reorganization," he says. Canadian Debtors' Proposed Bidding Procedures For Pulp Business The Canadian Debtors filed with the British Columbia Supreme Court on December 4, 2007, a set of proposed bidding procedures for the sale of their Pulp Business, identical in form and content as the Chapter 11-proposed Pulp Business Bidding Procedures. Attached to the Bidding Procedures filed with the British Columbia Supreme Court was an affidavit by Harold N. Stanton, president and chief executive officer of Pope & Talbot Inc. According to Mr. Stanton, the Canadian Debtors, through their financial advisor and investment banker, Rothschild Inc., received a binding proposal for the sale of their assets, including the Pulp Business, in October 2007. The Canadian Debtors, however, decided not to enter into an asset purchase agreement contemplated by the Binding Proposal, because they have determined that only their Bidding Procedures will enable them to obtain the highest or best offer for the Pulp Business Assets. About Pope & Talbot Headquartered in Portland, Oregon, Pope & Talbot Inc. (Other OTC:PTBT.PK) -- http://www.poptal.com/-- is a pulp and wood products business. Pope & Talbot was founded in 1849 and produces market pulp and softwood lumber at mills in the U.S. and Canada. Markets for the company's products include the U.S., Europe, Canada, South America and the Pacific Rim. The company and its U.S. and Canadian subsidiaries applied for protection under the Companies' Creditors Arrangement Act of Canada on Oct. 28, 2007. The Debtors' CCAA Stay expires on Jan. 16, 2008. The company and fourteen of its debtor-affiliates filed for Chapter 11 protection on Nov. 19, 2007 (Bankr. D. Del. Lead Case No. 07-11738). Laura Davis Jones, Esq. at Pachulski, Stang, Ziehl & Jones L.L.P. is Debtors' proposed bankruptcy counsel. When the Debtors filed for bankruptcy, they listed total assets of US$681,960,000 and total debts of US$601,090,000. The Debtors' exclusive period to file a plan expires on March 18, 2008. Pope & Talbot Pulp Sales Europe, LLC, a subsidiary, on Nov. 21, 2007, filed an application for relief under Belgian bankruptcy laws in the commercial court in Brussels. If the Belgian court grants Pope & Talbot Europe's application, it is expected it will be liquidated through the bankruptcy proceeding. (Pope & Talbot Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000). SOLUTIA INC: S&P Rates Proposed US$1.2 Bln Sr. Sec. Loan at B+ -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' loan rating to Solutia Inc.'s (D/--/--) proposed US$1.2 billion senior secured term loan and a '3' recovery rating, indicating the likelihood of a meaningful (50%-70%) recovery of principal in the event of a payment default. The ratings are based on preliminary terms and conditions. S&P also assigned its 'B-' rating to the company's proposed US$400 million unsecured notes. Solutia will use proceeds from the proposed term loan, unsecured notes, an unrated US$400 million asset-backed revolving credit facility, and a US$250 million rights equity issue to pay certain creditors upon emergence from bankruptcy, including creditors at a Belgium-based subsidiary, Solutia Europe S.A./N.V. (B/Developing/B). S&P expect to withdraw its ratings on Solutia Europe when creditors of that company are paid down as planned. Proceeds will also be used to meet funding shortfalls in employee benefit liabilities. Total adjusted debt, pro forma for the transaction, including the present value of capitalized operating leases, tax-adjusted unfunded employee benefits, and tax-adjusted environmental reserves, is estimated at US$2.1 billion for the fiscal year ended Dec. 31, 2007. Standard & Poor's expects to assign its 'B+' corporate credit rating to Solutia if the company and its subsidiaries emerge from Chapter 11 bankruptcy proceedings in early 2008 as planned. S&P expect the outlook to be stable. "The ratings reflect Solutia's highly leveraged financial profile and its low margins," said Standard & Poor's credit analyst Paul Kurias. Solutia's business mix includes a large commodity-oriented nylon segment that is somewhat vulnerable to economic and cyclical downturns and volatility in raw material, transportation, and energy costs. These risks are tempered by meaningful contributions of relatively stable specialty businesses in the company's portfolio, good market shares in most businesses, geographic diversity, and an ongoing portfolio restructuring effort aimed at improving the company's cost competitiveness and profitability. =========== F R A N C E =========== CHRYSLER LLC: S&P Keeps B Rating on US$2 Billion Term Loan ---------------------------------------------------------- Standard & Poor's Ratings Services revised its recovery rating on Chrysler's US$2 billion senior secured second-lien term loan due 2014. The issue-level rating on this debt remains unchanged at 'B', and the recovery rating was revised to '3', indicating an expectation for meaningful (50% to 70%) recovery in the event of a payment default, from '4'. Both the issue-level and recovery ratings on Chrysler's US$7 billion first-lien term loan due 2013 remain unchanged. The issue-level rating on this debt is 'BB-' with a recovery rating of '1', indicating an expectation for very high (90% to 100%) recovery in the event of a payment default. "The revised recovery rating on the second-lien debt reflects Chrysler's reduction of outstanding borrowings under the first- lien term loan to US$7.0 billion from US$7.5 billion, using US$500 million of cash that was previously restricted at DaimlerChrysler Financial Services Americas LLC," said Standard & Poor's recovery analyst Olen Honeyman. The 'B' corporate credit rating on Chrysler reflects the wide- ranging challenges the company faces in North America, where the vast majority of its automotive operations are located. Ratings List Ratings Affirmed Chrysler LLC Corporate Credit Rating B/Negative/-- First-Lien Loan BB- Recovery Rating 1 Recovery Rating Revised To From -- ---- Second-Lien Loan B B Recovery Rating 3 4 HEXCEL CORP: Expects Double Digit Sales Growth in 2008 ------------------------------------------------------ Hexcel Corporation has discussed its guidance for 2008 and outlook for the future. Mr. David Berges, summarizing Hexcel's prospects, commented, "For 2008 we see the continuation of growth in all of our core markets and an increasing significance of Airbus A380 and Boeing 787 sales. We expect our fifth year in a row of double digit sales growth led by commercial aerospace and wind energy markets. Global demand is lifting build rates for aircraft and wind turbines and we believe that this trend will continue for the foreseeable future. In addition, the ramp-ups for the Airbus A380 and Boeing 787 programs accelerate the secular penetration story for composites in commercial aerospace." "We expect that we will achieve our margin targets for 2007 and the sales growth will lead to an increased rate of operating margin and earnings expansion in 2008. Our expectations are for improvement of about 100 basis points in operating margin in 2008 despite continued cost pressures from high oil costs and unfavorable foreign exchange rates." "Our 2007 sale of non-core reinforcements businesses both improved our prospects for consistent growth and helped put our balance sheet in the best shape it has been in for years. Entering 2008, we expect debt to be less than two times EBITDA and we expect our capital investment program to be funded from operations." Revenue Commercial Aerospace With continued increases in aircraft production and the contribution of A380 and B787 ramp up, total 2008 commercial aerospace revenues are projected to grow in the range of 12% - 15% as compared to 2007. At currently projected build rates, the A380 and B787 programs could contribute over US$200 million more in revenues to Hexcel in 2010 than 2007. Combined with industry projections of other aircraft build increases, the three year revenue trend for Airbus and Boeing programs could result in average revenue growth in the high-teens for the three year period. Space & Defense The company expects its Space & Defense revenues to maintain their long-term growth trend of 8%-10% per year. A key driver near term will be continued strong growth in rotorcraft, particularly the ramp-up of the V-22 Osprey. It is hoped that sales to the new A400M transport will offset the possible decline of the C-17 program. Longer term, the F-35 Joint Strike Fighter program will be a key growth contributor. Industrial Led by the strong growth in wind energy revenues, industrial sales growth should return to the mid-teens. After a year of portfolio pruning in "other industrial" and a weak year of recreational sales, non-wind related sales will show some modest improvement. Longer term, the company expects continued growth of wind energy as well as the addition of over US$40 million per year in new material sales for the American Centrifuge Program and other new industrial opportunities by 2010. Consolidated Revenues In total, the company anticipates 2008 consolidated revenues to grow in a range of 10%-15% year-on-year, assuming the average Euro and British pound exchange rates in 2008 are comparable to 2007. Based on its current mix of sales, while a weaker US dollar would inflate revenues, operating income would not increase, and as a result, margin percentages would compress. Operating Margin The company should see continued improvement in operating margin percentage through leverage on incremental sales, productivity gains, cost reductions, increased pricing and carbon fiber expansion. These improvements will be partially offset by the continuing cost pressures from the collateral impact of oil costs and the weak dollar. In 2008, its target-operating margin is 12-12.5% of sales, which will be an improvement of about 100 basis points from 2007 levels (excluding business consolidation and restructuring expenses). However, the company expects first quarter operating margin to be slightly lower than the 2008 average due to the start-up activities at its new manufacturing facilities and the usual timing associated with its stock compensation expense. Included within its 2008 operating margin assumptions is an US$8-US$10 million increase in depreciation expense from 2007 levels. Diluted EPS The company expects 2008 earnings per share to be in the range of US$0.90 to US$0.95, excluding any possible impact from non- recurring items. For example, the previously disclosed settlement expense for the termination of the US defined pension plan (about US$0.08 per share), will primarily be recorded in the fourth quarter of 2007, but the company expects about US$0.02 of this charge to occur in early 2008. This EPS estimate is based upon an implied tax rate of 38% for the year and an estimated diluted share count of 97.5-98.5 million. Hexcel's effective tax rate is sensitive to the mix of taxable income from its U.S. and European operations and the volatility inherent in FIN 48. Cash Flows Capital expenditures are expected to be approximately US$150 million as the company moves ahead with its previously announced expansion of carbon fiber production capacity. Cash flows from operations are expected to be sufficient to cover the capital spending plans. New program wins will determine future capital spending levels, but the company currently expects US$120-US$150 million per year to be a pace that would support most growth scenarios for a number of years. About Hexcel Corp. Headquartered in Stamford, Connecticut, Hexcel Corporation (NYSE: HXL) -- http://www.hexcel.com/-- is an advanced structural materials company. It develops, manufactures and markets lightweight, high-performance structural materials, including carbon fibers, reinforcements, prepregs, honeycomb, matrix systems, adhesives and composite structures, used in commercial aerospace, space and defense and industrial applications. The company has operations in Australia, Brazil, China, France and Japan, among others. * * * As reported in the Troubled Company Reporter on April 5, 2007, Moody's Investors Service has raised the ratings of Hexcel Corporation, Corporate Family Rating to Ba3 from B1. The ratings on Hexcel's senior secured credit facility have been upgraded to Ba1 from Ba2, while the subordinated notes ratings were upgraded to B1 from B3. Moody's said the ratings outlook is stable. ============= G E R M A N Y ============= CORATEC GMBH: Claims Registration Period Ends Jan. 10, 2008 ----------------------------------------------------------- Creditors of CORATEC GmbH have until Jan. 10, 2008, to register their claims with court-appointed insolvency manager Stephan Schlegel. Creditors and other interested parties are encouraged to attend the meeting at 9:45 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 Frankfurt (Main) Hall 1 Building F Klingerstrasse 20 60313 Frankfurt (Main) 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. Stephan Schlegel Hauptstrasse 336 65760 Eschborn Germany Tel: 06173/93940 Fax: 06173/939420 The District Court of Frankfurt (Main) opened bankruptcy proceedings against CORATEC GmbH on Nov. 13. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: CORATEC GmbH Attn: Markus Cornelius Miltsch, Manager Neumarkt 5 65934 Frankfurt (Main) Germany METALLBAU TUSSING: Claims Registration Period Ends Jan. 18, 2008 ---------------------------------------------------------------- Creditors of MTW Metallbau Tussing und Weidig GmbH have until Jan. 18, 2008, to register their claims with court-appointed insolvency manager Sandra Heuer. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Feb. 8, 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 Saarbruecken Meeting Room 24 Second Floor Vopeliusstrasse 2 66280 Sulzbach 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: Sandra Heuer Brueckenstrasse 60 66763 Dillingen Germany Tel: (06831) 769980 Fax: (06831) 7699870 The District Court of Saarbruecken opened bankruptcy proceedings against MTW Metallbau Tussing und Weidig GmbH on Nov. 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: MTW Metallbau Tussing und Weidig GmbH Huettenweg 10 66399 Mandelbachtal Germany NORBERT E. JOECKEL: Claims Registration Ends Jan. 11, 2008 ---------------------------------------------------------- Creditors of Norbert E. Joeckel GmbH have until Jan. 11, 2008, to register their claims with court-appointed insolvency manager Jana Dettmer. Creditors and other interested parties are encouraged to attend the meeting at 9:30 a.m. on Feb. 11, 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 Cologne Meeting Hall 1240 12th Floor First Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Jana Dettmer Weyerstrasse. 54 50676 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against Norbert E. Joeckel GmbH on Nov. 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Norbert E. Joeckel GmbH Von-H�nefeld-Str. 61 50829 Cologne Germany ORIENT TASTAN: Claims Registration Period Ends Jan. 18, 2008 ------------------------------------------------------------ Creditors of ORIENT Tastan GmbH have until Jan. 18, 2008, to register their claims with court-appointed insolvency manager Ulrich Rosenkranz. Creditors and other interested parties are encouraged to attend the meeting at 9:05 a.m. on Feb. 13, 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: Ulrich Rosenkranz Osdorfer Landstrasse 230 22549 Hamburg Germany The District Court of Hamburg opened bankruptcy proceedings against ORIENT Tastan GmbH on Nov. 19. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: ORIENT Tastan GmbH Steindamm 52 20099 Hamburg Germany TREOFAN GERMANY: Weak Liquidity Prompts S&P's Junks Ratings ----------------------------------------------------------- Standard & Poor's Ratings lowered all its long-term credit ratings on Germany-based flexible packaging producer Treofan Holdings GmbH and operating subsidiary Treofan Germany GmbH & Co. KG to 'CCC+' from 'B-'. At the same time, all ratings were placed on CreditWatch with negative implications. The recovery rating on Treofan Germany's EUR170 million subordinated second-lien notes remains unchanged at '3', indicating meaningful (50%-70%) recovery prospects for noteholders. "The negative rating actions reflect our concerns about the company's increasingly weak liquidity and the uncertainty over whether the company will be able to maintain sufficient liquidity to cover its near-term needs," said Standard & Poor's credit analyst Izabela Listowska. The company had total reported debt of EUR206 million at Sept. 30, 2007. The increasingly weak liquidity position has led Treofan's management to seek access to a EUR20 million incremental commitment to the existing EUR60 million availability under the revolving credit facility. This is subject to certain conditions, including presentation of the revised near- to medium-term business plan to shareholders and obtaining a solvency opinion from an independent financial advisor. Failure to access this incremental commitment could very likely trigger a liquidity shortfall and accelerate a default in the near term. Even if Treofan obtains the incremental commitment, its liquidity is likely to remain very tight given operational challenges, high cash interest costs, only modest flexibility in curtailing maintenance capital expenditures spending, and restructuring cash outflows related to the new restructuring program. Standard & Poor's will monitor the situation closely, with the aim of resolving the CreditWatch status once the results of the negotiations with lenders have been disclosed. Treofan's operating performance and cash flow generation have deteriorated over the past few quarters. High resin prices, the challenging pricing environment, increased fixed costs, and unfavorable foreign exchange rate developments have more than offset volume growth. In the nine months to Sept. 30, 2007, adjusted EBITDA declined to EUR22.6 million from EUR28.4 million in the same period of the previous year, resulting in weaker credit measures. In the 12 months to Sept. 30, 2007, pension- and operating lease-adjusted cash debt to adjusted EBITDA was 7.9x. WINTERHOLER GMBH: Claims Registration Period Ends Jan. 11, 2008 --------------------------------------------------------------- Creditors of Winterholer GmbH have until Jan. 11, 2008, to register their claims with court-appointed insolvency manager Klaus-Peter Krueger. Creditors and other interested parties are encouraged to attend the meeting at 8:30 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 Tuebingen Gerichtssaal/Erdgeschoss Aussenstelle Schulberg 14 72074 Tuebingen Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Klaus-Peter Krueger Kaiserstr. 56 72764 Reutlingen Germany Tel: 07121/9725512 Fax: 07121/9725522 The District Court of Tuebingen opened bankruptcy proceedings against Winterholer GmbH on Nov. 15. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Winterholer GmbH Hoffmannstr. 12 72770 Reutlingen Germany ============= I R E L A N D ============= GAP INC: November 2007 Net Sales Up 11 Percent at US$1.54 Bln ------------------------------------------------------------- Gap Inc. reported net sales of US$1.54 billion for the four-week period ended Dec. 1, 2007, which represents an 11% increase compared with net sales of US$1.39 billion for the four-week period ended Nov. 25, 2006. Due to the 53rd week in fiscal year 2006, November 2007 comparable store sales are compared with the four-week period ended Dec. 2, 2006. On this basis, the company's comparable store sales for November 2007 were flat compared with an 8% decrease in November 2006. Comparable store sales by division for November 2007 were: * Gap North America: positive 1% versus negative 7% last year; * Banana Republic North America: positive 4% versus negative 1% last year; * Old Navy North America: negative 3% versus negative 10% last year; and * International: positive 1% versus negative 8% last year. "While we were pleased with our sales performance in November, the most important month of the quarter, December, remains ahead of us," Sabrina Simmons, executive vice president, finance and acting chief financial officer, Gap Inc. said. "As a result, we are maintaining our earnings outlook for the full year." Year-to-date net sales of US$12.63 billion for the 43 weeks ended Dec. 1, 2007, increased 2% compared with net sales of US$12.40 billion for the 43 weeks ended Nov. 25, 2006. Due to the 53rd week in fiscal year 2006, fiscal year 2007 year-to-date comparable store sales are compared with the 43 week period ended Dec. 2, 2006. On this basis, the company's year-to-date comparable store sales decreased 4%, compared with a 7% decrease in the prior year. The company will report December sales on Jan. 10, 2008. Headquartered in San Francisco, California, Gap Inc. (NYSE: GPS) -- http://www.gapinc.com/-- is an international specialty retailer offering clothing, accessories and personal care products for men, women, children and babies under the Gap, Banana Republic, Old Navy, Forth & Towne and Piperlime brand names. Gap Inc. operates more than 3,100 stores in the United States, the United Kingdom, Canada, France, Ireland and Japan. In addition, Gap Inc. is expanding its international presence with franchise agreements for Gap and Banana Republic in Southeast Asia and the Middle East. * * * The company continues to carry Fitch's BB+ Issuer Default Rating. The company also carries Standard & Poor's Ratings Services' BB+ corporate credit rating. ========= I T A L Y ========= DANA CORP: Urges Bankruptcy Court to Disallow 1,064 Claims ---------------------------------------------------------- Dana Corp. asks the U.S. Bankruptcy Court for the Southern District of New York to disallow 1,064 claims, totaling US$52,663,000, because these claims are Asbestos Personal Injury Claims and will be reinstated under the Plan. The Asbestos Personal Injury Claims include: -- Roy Adair (Claim No. 12079 - US$200,000) -- Gregorio Aguirre (Claim No. 11968 - US$200,000) -- David Alber (Claim No. 12043 - US$200,000) -- John Alexander (Claim No. 11989 - US$200,000) -- Clarence Allen (Claim No. 12371 - US$200,000) -- Naomi Ammerman (Claim No. 12076 - US$200,000) -- Johnnie Apodaca (Claim No. 11992 - US$200,000) -- Linda Atchley (Claim No. 12372 - US$200,000) -- Joseph Baca (Claim No. 11938 - US$200,000) -- Haroldine Bartlett (Claim No. 11977 - US$200,000) -- Walter Becker (Claim No. 12311 - US$200,000) -- Joseph Boutot (Claim No. 11991 - US$200,000) -- Leonard Chavez (Claim No. 11964 - US$200,000) -- Lyle Covington (Claim No. 1227 - US$200,000) -- Claude Dawson (Claim No. 11985 - US$200,000) Headquartered in Toledo, Ohio, Dana Corporation -- http://www.dana.com/-- designs and manufactures products for every major vehicle producer in the world, and supplies drivetrain, chassis, structural, and engine technologies to those companies. Dana employs 46,000 people in 28 countries. Dana is focused on being an essential partner to automotive, commercial, and off-highway vehicle customers, which collectively produce more than 60 million vehicles annually. Dana has facilities in China in the Asia-Pacific, Argentina in the Latin-American regions and Italy in Europe. The company and its affiliates filed for chapter 11 protection on March 3, 2006 (Bankr. S.D.N.Y. Case No. 06-10354). As of Aug. 31, 2007 the Debtors listed US$6,878,000,000 in total assets and US$7,551,000,000 in total debts resulting in a total shareholders' deficit of US$673,000,000. Corinne Ball, Esq., and Richard H. Engman, Esq., at Jones Day, in Manhattan and Heather Lennox, Esq., Jeffrey B. Ellman, Esq., Carl E. Black, Esq., and Ryan T. Routh, Esq., at Jones Day in Cleveland, Ohio, represent the Debtors. Henry S. Miller at Miller Buckfire & Co., LLC, serves as the Debtors' financial advisor and investment banker. Ted Stenger from AlixPartners serves as Dana's Chief Restructuring Officer. Thomas Moers Mayer, Esq., at Kramer Levin Naftalis & Frankel LLP, represents the Official Committee of Unsecured Creditors. Fried, Frank, Harris, Shriver & Jacobson, LLP serves as counsel to the Official Committee of Equity Security Holders. Stahl Cowen Crowley, LLC serves as counsel to the Official Committee of Non-Union Retirees. The Debtors filed their Joint Plan of Reorganization on Aug. 31, 2007. On Oct. 23, 2007, the Court approved the adequacy of the Disclosure Statement explaining their Plan. The Court has set Dec. 10, 2007, to consider confirmation of the Plan. (Dana Corporation Bankruptcy News, Issue No. 64; Bankruptcy Creditors' Service, Inc. 215-945-7000 FAX 215-945-7001) =================== K Y R G Y Z S T A N =================== LION-UG LLC: Creditors Must File Claims by January 16, 2007 ----------------------------------------------------------- LLC Lion-Ug has declared insolvency. Creditors have until Jan. 16, 2008, to submit written proofs of claim to: LLC Lion-Ug Saliyeva Str. 41/34 Osh Kyrgyzstan =========== P O L A N D =========== ELEKTRIM SA: Creditors File PLN10.4 Million in Claims ----------------------------------------------------- Creditors of Elektrim S.A. have filed more than PLN10.4 billion in claims against the company, the Financial Times reports, citing Polish News Bulletin. FT says Elektrim's bondholders are demanding repayment of its PLN3.17 billion debt, most of which the company already paid. According to the bondholders' trustee, Elektrim still owes them about EUR843.7 million, which is equal to 25% of the company's assets estimated at PLN12.7 billion or PLN152 per share. The bondholders' claim also include a EUR35.7 million debt interest, FT relates. Meanwhile, Vivendi also filed a claim of more than EUR2 billion. "The Warsaw court will decide whether these claims are justified," Ewa Bojar, a spokeswoman at Warsaw-based Elektrim, told Bloomberg News. About Elektrim S.A. Headquartered in Warsaw, Poland, Elektrim S.A. -- http://www.elektrim.pl/-- engages in the power and telecommunication businesses. In addition to its core business activities, Elektrim also manufactures sells cables, and provides data transmission services. As reported in the TCR-Europe on Aug. 24, 2007, Elektrim S.A. filed for bankruptcy protection in a court in Warsaw on Aug. 10, 2007, after its second debt restructuring talks with bondholders failed. Subsequently, the court has granted bankruptcy protection to Elektrim with the possibility of settlement and appointed a trustee to oversee the company's assets. NETIA SA: Buys Stake in Systemy Informatyczne for PLN4 Million -------------------------------------------------------------- Netia SA, through its subsidiary Internetia Sp.z o.o., purchased from Mariusz Radomski 100 shares in the share capital of a company operating under the business name Systemy Informatyczne Netis Sp. z o.o. with its seat in Jastrzebie Zdroj with the total nominal value of PLN50,000 for all these shares, which represent 100% of the share capital and confer the right to 100% of the votes at the general meeting of shareholders of Netis. The total price of all the shares has been set at PLN4 million. Netis is a service provider offering broadband Internet access to residential clients in the town of Jastrzebie Zdroj in the Silesian region of Southern Poland. The company is using FastEthernet technology, which allows for transmission speed of up to 100 Mb/s. As of Nov. 27, 2007, Netis' network provided broadband access to 4,447 clients, with approximately 16,100 households passed. The acquisition of shares was effected on Dec. 6, 2007, following the fulfillment of the certain conditions precedent specified in the shares purchase agreement concluded by Internetia and Netis on Nov. 28, 2007. The acquired shares constitute assets of substantial value, as they represent 100% of the share capital of Netis. The assets were acquired from Internetia's own resources and constitute an investment of a long-term nature. Apart from the contractual relations described in this report, there exist no other ties between Netia and the persons managing or supervising Netia and the Seller of the aforementioned assets. The acquisition represents yet another step in execution of Netia's strategy aimed at acquiring 1 million broadband customers over the next three years, including consolidation of local Ethernet networks. For the current year, Netia plans to acquire over 210,000 broadband Internet access clients, thus becoming the largest alternative telecommunications provider of broadband services in Poland. About Netia Headquartered in Warsaw, Poland, Netia S.A. -- http://netia.pl/ -- is an alternative fixed-line telecommunications operator in Poland. Netia provides a broad range of telecommunications services, including voice, data and network wholesale services. * * * As of Aug. 15, 2007, Standard & Poor's Ratings Services had assigned a B rating to Netia's Long-Term Foreign and Local Issuer Credit. ZLOMREX INTERNATIONAL: Moody's Cuts Sr. Secured Rating to Caa2 -------------------------------------------------------------- Moody's Investors Service downgraded the corporate family rating of Zlomrex to B3 from B2 and the senior secured rating of Zlomrex International Finance to Caa2 from Caa1. It has put both ratings on review for possible further downgrade. The rating action was prompted by: (i) the weak short term liquidity position of the company; (ii) the recent announcement of weaker than expected results in the 3rd quarter 2007; (iii) the uncertainty about Zlomrex' acquisition of Zeljezara Split and the related refinancing of existing liabilities; and (iv) the weaker than initially projected performance for the current financial year based on a last 12-month calculation. Zlomrex on a proforma basis currently has indebtedness of around PLN1.1 billion as at Nov. 30, 2007, out of which around PLN462 million are due within the next 12 months. In addition Moody's assumes around PLN80 million for capital expenditure in the next 12 months. Cash sources are the proforma cash balance of PLN95 million and the projected cash inflows for the next 12 months. According to Moody's calculation this makes Zlomrex heavily reliant on the willingness of its banks to extend maturing short-term credit lines, which, in the current environment of the markets, may be challenging to achieve. The imminent possible extension of the two major credit lines, on which the working capital financing of Zlomrex is reliant, by more than 1 year, if successful, could help reducing pressure on the liquidity management. However, even including these extensions, the liquidity management will continue to be difficult given significant amounts of short term debt. Third quarter results for the company have been weaker than expected, reflecting the volatile environment in which Zlomrex is operating with significant exposure to steel, which is used in the construction industry and which is sold on an adhoc basis on spot market prices rather than on long term contracts with pre-agreed prices. The rating downgrade to B3 is reflecting the risk of higher than initially expected volatility in Zlomrex' core business in Poland, despite the full consolidation of the more stable business of Voest Alpine Stahlhandel, and the visible shortfall in their performance to initially assumed and presented scenarios. With the announcement of the acquisition of Zeljezara Split, a minimill in Croatia and the ongoing restructuring of its steel distribution business around Centrostal Gdansk and Zlomrex Steel Services, Zlomrex has shown a more aggressive stance for external growth than at the time the rating was assigned. Risks resulting from this change in management strategy are now being taken into account by the change of the corporate family rating to B3. In addition, the review will focus on: (i) receiving more clarity and visibility on the 2008 business prospects; (ii) the future liquidity situation given that Zlomrex is already negotiating the extension of some of its short term working capital bank lines; and (iii) the further approach of Zlomrex to external growth. A further downgrade could be justified if the company's major refinancing needs continue to significantly depend on short term bilateral bank credit lines with maturities shorter than 12 months, the performance for the full year 2007 and the prospects for 2008 show weaker than expected debt leverage ratios of above 4.0x and EBIT margins lower than 6% and the company continues its aggressive growth path with additional major acquisitions. Ratings changes and placed on review for possible downgrade: * Issuer: Zlomrex S.A. -- Corporate Family Rating to B3 from B2. * Issuer: Zlomrex International Finance S.A. -- senior secured rating from Caa1 to Caa2. Outlook actions: * Issuer: Zlomrex S.A. -- changed to rating under review from stable. * Issuer: Zlomrex International Finance S.A. -- changed to rating under review from stable. Headquartered in Poraj, Poland, Zlomrex S.A. is the largest trader of steel scrap and among the leading producers and distributors of high grade long steel products in its domestic market. Founded in 1990 as a pure scrap trader, the company has transformed itself into a fully integrated producer of steel products through a range of acquisitions mainly in the long steel production and distribution business. Zlomrex S.A. is privately owned; 100% of the company's shares are held by its founder Przemyslaw Sztuczkowski. ZLOMREX SA: Earns PLN79.52 Million for Third Quarter 2007 --------------------------------------------------------- Zlomrex S.A. released it unaudited consolidated financial results for the third quarter ended Sept. 30, 2007. Zlomrex posted PLN79.52 million in net profit on PL2.52 billion in net revenues for the third quarter of 2007, compared with PLN76.87 million in net profit on PLN1.42 billion in net revenues for the same period in 2006. As of Sept. 30, 2007, Zlomrex had PLN2.13 billion in net assets, PLN1.57 billion in total liabilities and PLN562.73 million in total shareholders' equity. About Zlomrex Headquartered in Poraj, Poland, Zlomrex S.A. -- http://www.zlomrex.pl/-- manufactures and distributes high- grade long steel products in its domestic market. * * * As reported in the TCR-Europe on Oct. 12, 2007, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Zlomrex S.A. to 'B' from 'B+' following a review of the company's liquidity, growth strategy, and financial policy. The senior secured debt rating on the EUR170 million 8.5% callable bonds due 2014 issued by subsidiary Zlomrex International Finance S.A. was lowered to 'B-' from 'B'. The ratings were removed from CreditWatch with negative implications, where they had been placed on Aug. 15, 2007. The outlook is negative. At the same time, Standard & Poor's affirmed its 'B' short-term credit rating on Zlomrex. ZLOMREX SA: Moody's Cuts Corporate Family Rating to B3 ------------------------------------------------------ Moody's Investors Service downgraded the corporate family rating of Zlomrex to B3 from B2 and the senior secured rating of Zlomrex International Finance to Caa2 from Caa1. It has put both ratings on review for possible further downgrade. The rating action was prompted by: (i) the weak short term liquidity position of the company; (ii) the recent announcement of weaker than expected results in the 3rd quarter 2007, (iii) the uncertainty about Zlomrex' acquisition of Zeljezara Split and the related refinancing of existing liabilities and the (iv) weaker than initially projected performance for the current financial year based on a last 12-month calculation. Zlomrex on a proforma basis currently has indebtedness of around PLN1.1 billion as at Nov. 30, 2007, out of which around PLN462 million are due within the next 12 months. In addition Moody's assumes around PLN80 million for capital expenditure in the next 12 months. Cash sources are the proforma cash balance of PLN95 million and the projected cash inflows for the next 12 months. According to Moody's calculation this makes Zlomrex heavily reliant on the willingness of its banks to extend maturing short term credit lines, which, in the current environment of the markets, may be challenging to achieve. The imminent possible extension of the two major credit lines, on which the working capital financing of Zlomrex is reliant, by more than 1 year, if successful, could help reducing pressure on the liquidity management. However, even including these extensions, the liquidity management will continue to be difficult given significant amounts of short term debt. Third quarter results for the company have been weaker than expected, reflecting the volatile environment in which Zlomrex is operating with significant exposure to steel, which is used in the construction industry and which is sold on an adhoc basis on spot market prices rather than on long term contracts with pre-agreed prices. The rating downgrade to B3 is reflecting the risk of higher than initially expected volatility in Zlomrex' core business in Poland, despite the full consolidation of the more stable business of Voest Alpine Stahlhandel, and the visible shortfall in their performance to initially assumed and presented scenarios. With the announcement of the acquisition of Zeljezara Split, a minimill in Croatia and the ongoing restructuring of its steel distribution business around Centrostal Gdansk and Zlomrex Steel Services, Zlomrex has shown a more aggressive stance for external growth than at the time the rating was assigned. Risks resulting from this change in management strategy are now being taken into account by the change of the corporate family rating to B3. In addition, the review will focus on: (i) receiving more clarity and visibility on the 2008 business prospects; (ii) the future liquidity situation given that Zlomrex is already negotiating the extension of some of its short term working capital bank lines; and (iii) the further approach of Zlomrex to external growth. A further downgrade could be justified if the company's major refinancing needs continue to significantly depend on short term bilateral bank credit lines with maturities shorter than 12 months, the performance for the full year 2007 and the prospects for 2008 show weaker than expected debt leverage ratios of above 4.0x and EBIT margins lower than 6% and the company continues its aggressive growth path with additional major acquisitions. Ratings changes and placed on review for possible downgrade: * Issuer: Zlomrex S.A. -- Corporate Family Rating to B3 from B2. * Issuer: Zlomrex International Finance S.A. -- senior secured rating from Caa1 to Caa2. Outlook actions: * Issuer: Zlomrex S.A. -- changed to rating under review from stable. * Issuer: Zlomrex International Finance S.A. -- changed to rating under review from stable. Headquartered in Poraj, Poland, Zlomrex S.A. is the largest trader of steel scrap and among the leading producers and distributors of high grade long steel products in its domestic market. Founded in 1990 as a pure scrap trader, the company has transformed itself into a fully integrated producer of steel products through a range of acquisitions mainly in the long steel production and distribution business. Zlomrex S.A. is privately owned; 100% of the company's shares are held by its founder Mr. Przemyslaw Sztuczkowski. =============== P O R T U G A L =============== BEARINGPOINT INC: Sept. 30 Bal. Sheet Upside-Down by US$362 Mln --------------------------------------------------------------- Bearingpoint Inc. reported financial results for the quarter ended Sept. 30, 2007. At Sept. 30, 2007, the company's balance sheet total assets of US$116.0 million and total liabilities of US$2.4 billion, resulting in a stockholders' deficit of US$362.5 million. The company reported a net loss of US$68.0 million on US$861.8 million revenues for the quarter ended Sept. 30, 2007, compared with a net loss of US$29.6 million on US$843.2 million revenues for the quarter ended Sept. 30, 2006. The change in net loss was primarily attributable to: * a decrease in gross profit of US$26.3 million; * an increase in interest expense of US$8.9 million in the third quarter of 2007, due to interest attributable to our 2007 Credit Facility; and * an increase in income tax expense of US$11.6 million in the third quarter of 2007. The increase in net loss was partially offset by a decrease in SG&A expenses of US$13.0 million in the third quarter of 2007. Nine Months Financial Results During the nine months ended Sept. 30, 2007, the company realized a net loss of US$193.7 million, representing an increase of US$88.5 million over a net loss of US$105.2 million during the nine months ended Sept. 30, 2006. This change in net loss was primarily attributable to: * a decrease in gross profit of US$41.8 million; * the recognition of US$38.0 million in other income in the first quarter of 2006 in connection with insurance settlement payments made on behalf of the company in connection with the settlement of our contract with Hawaiian Telcom Communications, Inc.; * an increase in interest expense of US$17.6 million in the nine months ended Sept. 30, 2007, due to interest attributable to our 2007 Credit Facility and the acceleration of debt issuance costs resulting from the termination of the 2005 Credit Facility; and * an increase in income tax expense of US$11.8 million in the nine months ended Sept. 30, 2007. The increase in net loss was partially offset by a decrease in SG&A expenses of US$26.3 million in the nine months ended Sept. 30, 2007. About BearingPoint Inc. Headquartered in McLean, Virginia, BearingPoint Inc. (NYSE:BE) - - http://www.BearingPoint.com/-- is a provider of management and technology consulting services to Global 2000 companies and government organizations in 60 countries. The firm has more than 17,000 employees focusing on the Public Services, Financial Services and Commercial Services industries. BearingPoint professionals have built a reputation for knowing what it takes to help clients achieve their goals, and working closely with them to get the job done. The company's service offerings are designed to help its clients generate revenue, increase cost- effectiveness, manage regulatory compliance, integrate information and transition to "next-generation" technology. * * * Moody's Investor Service placed BearingPoint Inc.'s long term corporate family rating at 'B2' in December 2006 and its probability of default rating at 'B1' in September 2006. Both ratings still hold to date. INTERTAPE POLYMER: Moody's Lifts Long-Term Debt Rating to B2 ------------------------------------------------------------ Moody's Investors Service has upgraded the long-term debt and corporate family rating of IPG (US) Inc. as well as the senior subordinated notes of Intertape Polymer US Inc. The outlook was revised to stable from review, direction uncertain. In a related action, Moody's upgraded the company's speculative grade liquidity rating to SGL-3 from SGL-4. The upgrade was prompted by the company's improved liquidity position and the fact that senior management has been successful in stabilizing the company's operating performance since the second half of 2006. On Oct. 4, 2007, the company successfully completed a shareholder rights offering netting approximately US$60.9 million in additional equity funding. The entire proceeds were used to reduce long-term debt. The B2 corporate family rating reflects the company's improved operating performance (adjusted operating margins of approximately 6.3% from 3.0% in late 2006), positive free cash flow, and lower leverage (adjusted debt to EBITDA of approximately 3.8 from 5.2). Additional factors that support the ratings include product breadth, the company's estimated market share for several of its product lines within the tapes sector, a reasonable track record of passing through higher raw material costs to customers, and its recent cost saving initiatives. At the same time, the B2 rating considers that the company has demonstrated limited top-line growth, a high percentage of commodity products versus innovative products, the potential for additional near-term declines in certain product demand, and exposure to fluctuating raw material costs. Based on the company's recent operating trends, management will need to continue executing cost savings initiatives to improve profitability over the near-term. Even with the progress that has been made, Moody's believes that a combination of a slowdown in the economy, raw material cost pressures, and competitive pressures could continue to adversely impact the company's operating performance. The speculative grade liquidity rating was upgraded to SGL-3 from SGL-4 because Moody's believes the company's liquidity position will continue to improve over the near-term. Moody's expects that the company will be able to internally fund most of its cash requirements, including capital expenditures and working capital needs. In addition, Moody's anticipates that covenant and revolver availability will remain acceptable and that possible restrictions or the need to renegotiate covenants is not likely in the near-term. Moody's notes, however, that IPG (US) amended its credit facilities in August 2007 but did not request changes to its financial covenant ratios. The amendment accommodated the costs of the strategic alternative process in the covenant calculations; however, the company's interest coverage ratio will tighten several times during 2008. Moody's will continue to monitor the company's financial covenant compliance on an ongoing basis. The stable outlook reflects restored operating margins and positive free cash flow metrics (adjusted RCF-Capex/Debt of 5- 8%). In addition, the outlook represents an improved liquidity position because of the additional cushion under its financial covenants. Although the Board is reviewing the company's senior management structure, the management team has addressed its strategic and financial strategies going forward. Moody's believes a sustained deterioration in operating performance (operating margins of less than 3%) or credit metrics (negative free cash flow) due to declines in product demand, or other operational issues, or the inability to remain in compliance with its financial covenant could result in a downgrade of the ratings. Conversely, the ratings could be raised if the company continues to generate savings from additional cost reduction efforts, restores operating margins and credit metrics back to levels generated prior to the second half of 2006, and successfully resolves its chief executive officer succession plan. The most recent prior rating action occurred on Aug. 2, 2007. Moody's placed IPG (US)'s ratings under review, direction uncertain, pending the refinancing of its bank agreement and compliance with its financial covenants. Upgrades: Issuer: IPG (US) Inc. -- Corporate Family Rating, Upgraded to B2 from B3 -- Senior Secured Bank Credit Facility, Upgraded to Ba3 (LGD2, 25%) from B1 -- Speculative Grade Liquidity Rating, Upgraded to SGL-3 from SGL-4 Issuer: Intertape Polymer US Inc. -- Senior Subordinated Regular Bond/Debenture, Upgraded to Caa1 (LGD5, 77%) from Caa2 The outlook is stable. Based in Montreal, Quebec and Sarasota/Bradenton, Florida, Intertape Polymer Group Inc. (NYSE,ITP; TSX: ITP.TO) -- http://www.intertapepolymer.com/-- develops and manufactures specialized polyolefin plastic and paper-based packaging products and complementary packaging systems for industrial and retail use. The company employs approximately 2,100 employees with operations in 17 locations, including 13 manufacturing facilities in North America and one in Portugal and in Mexico. =========== R U S S I A =========== ADYGEISKIJ OJSC: Court Starts Bankruptcy Supervision Procedure -------------------------------------------------------------- The Arbitration Court of Adygeya commenced bankruptcy supervision procedure on OJSC Stud Farm Adygeiskij. The case is docketed under Case No. AO1-B-2992/07-1. The Interim Manager is: V. G. Koz'min Letter K Tovarnaya Str. 7 350033 Krasnodar Russia BIJSKIJ SUGAR: Creditors Must File Claims by Jan. 1, 2008 --------------------------------------------------------- Creditors of CJSC Bijskij Sugar Plant have until Jan. 1, 2008, to submit proofs of claim to: V. E. Pitsun Interim Manager P.O. Box 25 Slavgorod 658820 Altai krai Russia The Arbitration Court of Altai Krai will convene on April 21, 2008, to hear the company's bankruptcy supervision procedure on the company on Nov. 15. The case is docketed under Case No. A03-11534/07-B. The Debtor can be reached at: CJSC Bijskij Sugar Plant Dokuchaeva Str. 2 Kansk 659302 Altai Krai Russia COMSTAR-UNITED: Acquires 87.5% of RTC for US$21 Million ------------------------------------------------------- Comstar-United TeleSystems completed the acquisition of 87.5% of the share capital of Regional Technical Centre, an alternative regional fixed-line telecommunications operator in the Khanty- Mansi Autonomous Area, for a total cash consideration of US$21 million. The company was purchased from affiliates of TNK-BP Holding. The acquisition of RTC will strengthen Comstar's presence in the telecommunications market of the Khanty-Mansi Autonomous Area, where it already operates through its subsidiary, Tyumenneftegassvyaz (TNGS), the second largest alternative fixed-line telecommunications operator in the region with over 43,000 subscribers. Following the new acquisition, Comstar's share in the Khanty-Mansi Autonomous Area will increase from approximately 24% as at the end of 2006 to 33%. Comstar UTS plans to integrate RTC and Tyumenneftegassvyaz into its Tyumen branch. The companies have similar business models, subscriber bases and revenue structures. They provide a comparable range of services and use similar sales techniques. The integration will reduce combined operating expenses by eliminating duplicate functions and optimizing the product line. The integration will therefore increase Comstar UTS' operating profitability in the Siberian region. "The acquisition of RTC is the next step in the progression of our regional growth strategy of consolidating local market leaders. We see the Khanty-Mansi Autonomous Area as one of the key strategic regions with high growth potential. The market size in 2007 is estimated at US$255 million, growing 8.4% year- on-year. The integration of the newly acquired operator into our Tyumen branch and the launch of a zonal telephone network will help us to expand our presence not only in this area but also in the neighboring regions of the Russian Federation," Sergey Pridantsev, president and CEC of Comstar UTS, commented. RTC provides fixed-line telecommunications services, radio access, mobile services in NMT-450 and CDMA standards, dial-up internet access, and leases channels to residential and corporate clients in Niznevartovsk, Surgut, Nyagan, Orenburg and Orenburg region. The company also has branches in Saratov, Ryazan and Moscow. The company reported revenues from telecom services of US$18.2 million, up by 11% year-on-year, with OIBDA margin of 28% and net income of US$2.3 million as at Dec. 31, 2006. Headquartered in Moscow, Russia, Comstar - United Telesystems (JSC Comstar-UTS, LSE: CMST) -- http://www.comstar-uts.com/en/- - is the largest provider of fixed line telecommunication services in the Moscow metropolitan area with a population of over 10 million, 5 regions of Russia, Ukraine and Armenia. As at Dec. 31, 2006, Comstar had US$1.12 billion in revenues and US$428.6 million in EBITDA (excluding US$62 million stock bonus awards). * * * As of Dec. 10, 2008, Comstar-United TeleSystems carries Ba3 Moody's long-term corporate family rating, with positive outlook. The company also carries BB- long-term foreign and local issuer credit ratings from Standard & Poor's, which said the outlook is positive. FORD MOTOR: To Meet Striking Workers Today Over Wage Issue ---------------------------------------------------------- Ford Motor Co.'s management and employees at its Vsevolozhsok, Russia site will resume talks today over the latter's demand for higher wages, RIA Novosti reports citing a trade union official. As reported in the TCR-Europe on Nov. 22, 2007, workers launched an indefinite strike on Nov. 20, 2007, demanding higher wages and reduction of night shifts from March 2008. The strike halted the Ford Focus production line. The parties initially met on Nov. 26, 2007, when the management agreed in principle to raise wages. Ford resumed production on Nov. 28, 2007, with non-striking employees working on single shift. According to RIA Novosti, the number of striking employees have reached 650. The Vsevolozhsk plant produced about 60,000 cars in 2006, mainly the Focus model, and plant officials have said they were hoping to increase production to 75,000 for 2007. About Ford Motor Co. Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) -- http://www.ford.com/-- manufactures or distributes automobiles in 200 markets across six continents. With about 260,000 employees and about 100 plants worldwide, the company's core and affiliated automotive brands include Ford, Jaguar, Land Rover, Lincoln, Mercury, Volvo, Aston Martin, and Mazda. The company provides financial services through Ford Motor Credit Company. The company has operations in Japan in the Asia Pacific region. In Europe, the Company maintains a presence in Sweden, and the United Kingdom. The Company also distributes its brands in various Latin American regions, including Argentina and Brazil. * * * Standard & Poor's Ratings Services affirmed its 'B' long-term corporate credit and other ratings on Ford Motor Co. and Ford Motor Credit Co. and removed them from CreditWatch with positive implications, where they were placed Sept. 26, 2007. S&P said the outlook is stable. As reported in the Troubled Company Reporter on Nov. 19, 2007, Moody's Investors Service affirmed the long-term ratings of Ford Motor Company (B3 Corporate Family Rating, Ba3 senior secured, Caa1 senior unsecured, and B3 probability of default), but changed the rating outlook to Stable from Negative and raised the company's Speculative Grade Liquidity rating to SGL-1 from SGL-3. Moody's also affirmed Ford Motor Credit Company's B1 senior unsecured rating, and changed the outlook to Stable from Negative. These rating actions follow Ford's announcement of the details of the newly ratified four-year labor agreement with the UAW. HAMKORBANK: Fitch Assigns B- Long-term Issuer Default Rating ------------------------------------------------------------ Fitch Ratings assigned Uzbekistan's Hamkorbank ratings of Long- term Issuer Default (IDR) 'B-' with Stable Outlook, Short-term IDR 'B', Individual 'D/E', Support '5' and Support Rating Floor 'No Floor'. The ratings of Hamkorbank reflect its relatively small size, its limited franchise, the fast growth of the loan portfolio and some weaknesses in the operating environment. They also take into consideration its good profitability, adequate capitalization, low loan losses to date and positive experience of cooperation with international financial institutions. Upside potential for the ratings is currently limited, and would probably require improvements in the operating environment. However, further expansion and diversification of franchise and deeper co-operation with IFIs, for example by one of them becoming a shareholder of the bank, would be positives for the credit profile. Significant credit losses are the major potential source of downside risk for the ratings. Hamkorbank was founded in 1991 by state-owned industrial entities located in Andijan, Uzbekistan's fourth-largest city. The city is situated in the Fergana Valley, a densely populated and fertile region, specializing mainly in agriculture, particularly in cotton growing and related processing industries. Hamkorbank was ranked 14th by assets out of 28 Uzbek banks at end-2006, with a market share of approximately 1.1%. The bank has a significant presence in the Fergana Valley and also has a network of branches and outlets covering 13 out of Uzbekistan's 14 administrative districts. The bank's business is focused on lending to small and medium-sized enterprises and individual entrepreneurs. Hamkorbank actively cooperates with international financial institutions, such as the European Bank for Reconstruction and Development, International Finance Corporation and International Bank for Reconstruction and Development, which provide finance as well as technical assistance to the bank. KIROV KOLKHOZ: Creditors Must File Claims by Feb. 1, 2008 --------------------------------------------------------- Creditors of Kirov Kolkhoz (state-owned farm) have until Feb. 1, 2008, to submit proofs of claim to: P. V. Krygin Competitive Proceedings Manager P.O. Box 1836 610020 Kirov Russia The Arbitration Court of Kirov commenced competitive proceedings against the company after finding it insolvent on Nov. 6. The case is docketed under Case No. A28-156/07-99/10. The Court is located at: The Arbitration Court of Kirov K-Libknekhta Str. 102 610017 Kirov Russia The Debtor can be reached at: Kirov Kolkhoz (state-owned farm) Kuren' Village Darovskoy Raion Kirov Russia KRASNOURAL'SKMEZHRAIGAS: Claims Filing Period Ends Jan. 1, 2008 --------------------------------------------------------------- Creditors of OJSC Kranoural'skMezhRaiGas have until Jan. 1, 2008, to submit proofs of claim to: V. G. Kevarkov Interim Manager Gor'kogo Str. 31 620075 Ekaterinburg Russia The Arbitration Court of Sverdlovsk commenced bankruptcy supervision procedure on the company on Nov. 15. The case is docketed under Case No. A60-28323/07-C11. The Court is located at: The Arbitration Court of Sverdlovsk Lenina Pr. 34 620151 Ekaterinburg Russia LUCH OJSC: Creditors Must File Claims by Feb. 1, 2008 ----------------------------------------------------- Creditors of OJSC Luch have until Feb. 1, 2008, to submit proofs of claim to: E. V. Dul'nev Competitive Proceedings Manager Office 209 Demokraticheskaya Str. 8 443031 Samara Russia The Arbitration Court of Samara commenced competitive proceedings against the company on Nov. 19. The case is docketed under Case No. A55-4249/2007-36. The Court is located at: The Arbitration Court of Samara Avrory Str. 148 443045 Samara Russia The Debtor can be reached at: OJSC Luch Syzran' Samara Russia NATIONAL FACTORING: Moody's Places B2/NP/E+ Global Scale Ratings ---------------------------------------------------------------- Moody's Investors Service assigned these global scale ratings to CJSC Bank National Factoring Company: -- B2 long-term and Not-Prime short-term foreign currency and local currency issuer ratings; and -- E+ Bank Financial Strength Rating. The outlook for the long-term ratings is stable. At the same time, Moody's Interfax Rating Agency, which is majority-owned by Moody's, has assigned an A3.ru long-term National Scale Rating to NFK. According to Moody's and Moody's Interfax, the B2/NP global scale ratings reflect NFK's global default and loss expectation, while the A3.ru NSR reflects the standing of the company's credit quality relative to its domestic peers. The assigned E+ BFSR reflects the bank's reasonable market positions in its target segments secured by advanced methodologies and good management quality, adequate risk management practices and a relatively low risk appetite in relation to credit and market risks, as well as adequate financial fundamentals. However, the rating is constrained by: (i) the bank's limited history of operations in the emerging segment of financial markets; (ii) some concentrations on both sides of the balance sheet (especially funding base); and (iii) a significant cost base which puts pressure on profitability. In addition, the bank's high reliance on wholesale market funding is also a negative factor. Although it is possible that NFK would potentially receive support from either its shareholder or Uralsibbank, its sister bank, in the event of financial stress, the certainty and extent of such support is unclear. Consequently, the B2 long-term local currency deposit rating assigned to the bank does not incorporate the possibility of any external support and is therefore at the same level as its Baseline Credit Assessment of B2 (which maps directly from the E+ BFSR). No systemic support is factored into the rating due to the bank's limited importance to the national economy. The bank's BFSR can benefit from the bank's proven history of developing its franchise, technologies and market shares, diversification of funding, without incurring a significant deterioration in financial fundamentals and or a rise in risk appetite. Moody's says that ratings could come under downward pressure in the event of an increase in the risk appetite combined with a deterioration in financial fundamentals. Significant liquidity issues could cause an immediate ratings downgrade. Based in Moscow, Russia, NFK is one of the leading factoring companies and also has a wide distribution network in the Russian regions. It is controlled by the ultimate shareholder of Uralsib group, which includes Uralsibbank (one of the largest privately owned banks in the country with total assets and equity of US$12.7 billion and US$1.7 billion, respectively, at the end of first half 2007). NFK reported total consolidated assets of US$324.1 million and total equity of US$86.9 million under IFRS at the end of first half 2007. SEVERSTAL OAO: Earns US$1.33 Billion for First Nine Months 2007 --------------------------------------------------------------- OAO Severstal released its financial results for the first nine months and third quarter ended Sept. 30, 2007. The company reported US$1.33 billion in net profit on US$11.28 billion in net revenues for the first nine months 2007, compared with US$825 million in net profit on US$9.12 billion in net revenues for the same period in 2006. Severstal posted US$326 million in net profit on US$3.56 billion in net revenues for the third quarter 2007, compared with US$604 million in net profit on US$4.04 billion in net revenues for the second quarter 2007. "I am pleased to announce strong growth for Severstal for the first nine months of the year with net profit and EPS up 60.7% and 48.3% year-on-year respectively," Alexei Mordashov, Severstal CEO, said. "Third quarter production was impacted by one-off events, resulting in lower revenues and profit than in the second quarter. "As a result of operational improvements, a robust and growing Russian economy, and relatively strong prices in other world markets, the Board remains confident of meeting market expectations for the full year." Dividend Severstal's Board of Directors has recommended a dividend of RUR2.5 per share and per global depositary receipt for third quarter 2007 with the record date of Nov. 14, 2007. Each GDR represents one share in the Company. This recommendation is based on strong financial results in the first nine months of 2007. Approval of the dividend will be at the EGM on Dec. 20, 2007. Outlook As a result of the operational improvements, described above, a robust and growing Russian economy, and relatively strong prices in other world markets, the Board remains confident of meeting market expectations for the full year. About Severstal Headquartered in Cherepovets, Russia, OAO Severstal -- http://www.severstal.com/-- is the country's largest steel producer, with steel production of 17.1 million tons in 2005. The Company owns Severstal North America, the fifth largest integrated steel maker in the U.S. with 2005 production of 2.7 million tons, and Lucchini, Italy's second largest steel group with 2005 production of 3.5 million tons. Severstal is one of the world's lowest cost and most profitable steel producers, with 2005 EBITDA per ton of around EUR150 per ton. * * * As of Dec. 10, 2007, OAO Severstal carries Ba2 Corporate Family, Sneior Unsecured Debt and Probability-of-Default ratings from Moody's Investor Service, which said the the outlook on all ratings is stable. The company also carries BB long-term Foreign and Local Issuer Credit ratings from Standard & Poor's, which said the outlook is stable. Severstal carries BB- Issuer Default and Senior Unsecured ratings from Fitch, which said the outlook is positive. SEVERSTAL OAO: To Consolidate Stake in SeverCorr ------------------------------------------------ OAO Severstal is consolidating its holding in U.S. steel plant, SeverCorr. Severstal will acquire 100% of Baracom from Severstal's CEO, Alexey Mordashov, which owns 18.5% and controls 79.9% of Severcorr, for US$84.4 million. Severstal is investing in Severcorr's assets at investment cost,<