T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, December 12, 2007, Vol. 8, No. 246 Headlines A U S T R I A BERGER & VOLLMANN: Claims Registration Period Ends Dec. 27 DIAMED DIAGNOSTICA: Claims Registration Period Ends Dec. 27 ING. ASTOCKINGER: Claims Registration Period Ends Dec. 30 ING. MALEKZADEH: Claims Registration Period Ends Dec. 21 Z-BAU LLC: Claims Registration Period Ends Oct. 30 B E L G I U M CHIQUITA BRANDS: Reaches Settlement with Panamanian Farmers TIMKEN CO: Enters Into Joint Venture with Xiangtan Electric C Z E C H R E P U B L I C PETROF SPOL: Court Junks CZK2 Million Claim; Escapes Bankruptcy F R A N C E COMPLETEL SAS: S&P Withdraws B- Corporate Credit Rating DELPHI CORP: Noteholders Balk at Revised Disclosure Statement DELPHI CORP: Disclosure Statement is Inadequate, Wilmington Says DELPHI CORP: Revised Plan Disregards ERISA Plaintiffs' Concerns GOODYEAR TIRE: Forms New Strategic Business Unit G E R M A N Y FPS SCHMALFELD: Claims Registration Period Ends Jan. 14, 2008 GILDEMEISTER AG: Moody's Lifts Corporate Family Rating to Ba2 INTER-TEX TEXTIL: Claims Registration Period Ends Jan. 14, 2008 NATUR&GUT MARKETING: Claims Registration Ends Jan. 11, 2008 PROMISE I MOBILITY 2005-1: Fitch Holds BB+ Rating on Notes PROMISE I MOBILITY 2005-2: Fitch Holds Ratings on Series E Notes PROMISE I MOBILITY 2006: Fitch Holds BB+ Rating on Class E Notes H U N G A R Y AES CORP: Unit Selling Up To BRL200 Mln Non-Convertible Notes I R E L A N D COMMSCOPE INC: Reaches Agreement with DOJ to Complete Andrew Buy PREPS 2005-2: Fitch Downgrades EUR41.5 Mln Class B1 Notes to B PROMISE I MOBILITY 2005-2: Fitch Holds Ratings on Series E Notes I T A L Y DANA CORP: Personal Injury Committee Objects to Plan GOODYEAR TIRE: Noteholders Tender US$346 Mln Convertible Notes IMAX CORP: Inks Deal with AMC to Install 100 IMAX(R) Systems K A Z A K H S T A N AKTOBE AGRO: Proof of Claim Deadline Slated for Jan. 4, 2008 ARSH-LINE LLP: Creditors Must File Claims Jan. 4, 2008 DERBES LLP: Claims Filing Period Ends Jan. 4, 2008 GREEN MARKET: Creditors' Claims Due on Jan. 4, 2008 KERNAL SERVICES: Claims Registration Ends Jan. 4, 2008 KROKUS STROY: Proof of Claim Deadline Slated for Jan. 4, 2008 ODAK-SOUZ LLP: Creditors Must File Claims Jan. 4, 2008 PCD LEASING: Claims Filing Period Ends Jan. 4, 2008 UK PROMSPETSCOMPLECT: Claims Registration Ends Jan. 4, 2008 UYUT LLP: Creditors' Claims Due on Jan. 4, 2008 K Y R G Y Z S T A N AUTO-STOP LLC: Creditors Must File Claims by January 11, 2007 N E T H E R L A N D S NEPTUNO CLO: Moody's Rates EUR27.3 Mln Class E Sr. Notes at Ba3 R U S S I A BALTINVESTBANK: Moody's Assigns B3/NP/E+/Baa2.ru Global Ratings BURYATGOSPLEM OJSC: Asset Sale Slated for Dec. 31 COMSTAR UNITED: Acquires Digital Telephone for RUR4.1 Billion HEATING NETWORK: Bankruptcy Hearing Slated for March 20, 2008 IZHEVSKIJ CAR-REPAIR: Creditors Must File Claims by Jan. 1, 2008 KOTEL'NICHSKAYA KNITTING: Asset Sale Slated for Jan. 1, 2008 SHAKHTA KAPITAL'NAYA: Creditors Must File Claims by Jan. 1, 2008 SEROVBREAD OJSC: Under External Management Bankruptcy Procedure SEROVBREAD OJSC: Under External Management Bankruptcy Procedure TALITSKIJ MILK: Court Starts Bankruptcy Supervision Procedure TNK-BP HOLDING: To Invest US$1.5 Billion in Oil Refining VOLGAMEBEL'PROM CJSC: Creditors Must File Claims by Feb. 1, 2008 VOLGOGASMONTAZH CJSC: Court Hearing Slated for March 11, 2008 ZDVINSKAGROSNAB OJSC: Creditors Must File Claims by Jan. 1, 2008 S P A I N FTA SANTANDER: Fitch Junks EUR21.8 Million Class F Notes TDA CAM: Moody's Junks EUR23.5 Million Series D Notes S W I T Z E R L A N D FL CONSULTING: Creditors' Liquidation Claims Due by December 14 FOLGHERA JSC: Creditors' Liquidation Claims Due by December 17 GARAGE DIGGELMANN: Creditors Must File Claims by December 17 GISSLER DRUCK: Creditors' Liquidation Claims Due by December 14 ISO H+E: St. Gallen Court Starts Bankruptcy Proceedings MARBASE JSC: Creditors' Liquidation Claims Due by December 14 NETRONIX LLC: Aargau Court Starts Bankruptcy Proceedings SCHUREX LLC: Zurich Court Closes Bankruptcy Proceedings SOLDATI BAUUNTERNEHMUNG: Bern Court Closes Bankruptcy Process WSS WEST: Creditors' Liquidation Claims Due by December 14 U K R A I N E AZOV SERVICE: Creditors Must File Claims by December 15 CHEMISTRY INDUSTRIAL Creditors Must File Claims by December 15 COMPANY-INTER-ALIANCE: Creditors Must File Claims by December 16 DNK UKRAINE: Creditors Must File Claims by December 16 GALEON LLC: Creditors Must File Claims by December 16 ILONA LLC: Creditors Must File Claims by December 16 PLUS TELECOM: Creditors Must File Claims by December 15 UKRAINA BANK: Liquidator Receives UAH142,000 in October VIOTAN LLC: Creditors Must File Claims by December 16 U N I T E D K I N G D O M CHRYSLER LLC: Top Spokesman Quits Spurring Corporate Realignment CHRYSLER LLC: November Certified Pre-Owned Vehicle Sales Down 2% CYCLESMART LTD: Appoints Simon Paterson as Liquidator GENERAL MOTORS: November 2007 Sales in Canada Down 10.2% KRISPY KREME: Posts US$798,000 Net Loss in Quarter Ended Oct. 28 RANK GROUP: Richardsons Capital Acquires 9.3% Stake REFCO INC: Ingram Micro Faces Trustee's Suit in Illinois Court REGENT HOUSE: High Court Winds Up Business SANYO ELECTRIC: To Open Lab Aimed at Reducing Solar Power Cost SMART FINANCES: M. C. Bowker Leads Liquidation Procedure TATA MOTORS: Submits Revised Offer for Jaguar and Land Rover TAYLOR'S GROUP: Calls In Liquidators from Chantrey Vellacott DFK US STEEL: Prices US$500 Million Offering of 7% Senior Notes WORCESTER PROPERTIES: Names Neil Francis Hickling Liquidator ********* ============= A U S T R I A ============= BERGER & VOLLMANN: Claims Registration Period Ends Dec. 27 ---------------------------------------------------------- Creditors owed money by LLC Berger & Vollmann (FN 225621x) have until Dec. 27 to file written proofs of claim to court-appointed estate administrator Martin Koroschetz at: Dr. Martin Koroschetz Maria Theresien Strasse 9 1090 Vienna Austria Tel: 319 32 60 Fax: 319 32 60 9 E-mail: dr.koroschetz@aon.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 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. 29 (Bankr. Case No. 28 S 122/07f). DIAMED DIAGNOSTICA: Claims Registration Period Ends Dec. 27 ----------------------------------------------------------- Creditors owed money by LLC DiaMed Diagnostica Med.Produkte (FN 87788a) have until Dec. 27 to file written proofs of claim to court-appointed estate administrator Christian Ebmer at: Mag. Christian Ebmer Schillerstr. 12 4020 Linz Austria Tel: 0732/656969 Fax: 0732/656969-60 E-mail: office@hep.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:00 a.m. on Jan. 15, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Linz Hall 522 Fifth Floor Linz Austria Headquartered in Gallneukirchen, Austria, the Debtor declared bankruptcy on Oct. 30 (Bankr. Case No. 38 S 58/07v). ING. ASTOCKINGER: Claims Registration Period Ends Dec. 30 --------------------------------------------------------- Creditors owed money by LLC ING. ASTOCKINGER (FN 122165f) have until Dec. 30 to file written proofs of claim to court-appointed estate administrator Heinz Kassmannhuber at: Dr. Heinz Kassmannhuber c/o Dr. Gerwald Schmidberger Stelzhamerstrasse 11 4400 Steyr Austria Tel: 07252/50 300 E-mail: office@sks-law.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 1:30 p.m. on Jan. 15, 2008, for the examination of claims. The meeting of creditors will be held at: The Land Court of Steyr Hall 7 Second Floor Steyr Austria Headquartered in Micheldorf, Austria, the Debtor declared bankruptcy on Oct. 29 (Bankr. Case No. 14 S 38/07x). Gerwald Schmidberger represents Dr. Kassmannhuber in the bankruptcy proceedings. ING. MALEKZADEH: Claims Registration Period Ends Dec. 21 -------------------------------------------------------- Creditors owed money by LLC Ing. Malekzadeh Bau und Planung (FN 233282m) have until Dec. 21 to file written proofs of claim to court-appointed estate administrator Michael Neuhauser at: Mag. Michael Neuhauser c/o Dr. Christof Stapf Esslinggasse 7 1010 Vienna Austria Tel: 90 333 Fax: 90 333-55 E-mail: wien@snwlaw.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:45 a.m. on Jan. 9, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1705 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 29 (Bankr. Case No. 3 S 140/07v). Christof Stapf represents Mag. Neuhauser in the bankruptcy proceedings. Z-BAU LLC: Claims Registration Period Ends Oct. 30 -------------------------------------------------- Creditors owed money by LLC Z-Bau (FN 233689k) have until Oct. 30 to file written proofs of claim to court-appointed estate administrator Bernhard Eder at: Dr. Bernhard Eder c/o Dr. Herbert Hochegger Brucknerstrasse 4 1040 Vienna Austria Tel: 505 78 61 Fax: 505 78 619 E-mail: eder@rechtsanwaelte.co.at Creditors and other interested parties are encouraged to attend the creditors' meeting at 9:15 a.m. on Jan. 10, 2008, for the examination of claims. The meeting of creditors will be held at: The Trade Court of Vienna Room 1703 Vienna Austria Headquartered in Vienna, Austria, the Debtor declared bankruptcy on Oct. 30 (Bankr. Case No. 5 S 127/07x). Herbert Hochegger represents Dr. Eder in the bankruptcy proceedings. ============= B E L G I U M ============= CHIQUITA BRANDS: Reaches Settlement with Panamanian Farmers ----------------------------------------------------------- Chiquita Brands International Inc. has finally reached a conclusion to a long-running dispute with Panamanian farmers, Business COurier reports. Coosemupar has agreed to sell to Chiquita for US$6.50 per 19.2 kilogram box, an increase of one dollar from the current selling price, Reuters says. The dispute began in 2003 when Coosemupar bought from Chiquita its Puerto Armuelles Fruit Co. The cooperative asserts that Chiquita's price is too low. As an act of protest, Coosemupar gave away for free 20,000 bananas in November. Freshinfo says Panama's banana production in 2006 reached 440,000 tons. Panama's supply accounts for five percent of what the company puchases in Latin America. Cincinnati, Ohio-based Chiquita Brands International, Inc. (NYSE: CQB) -- http://www.chiquita.com/-- markets and distributes fresh food products including bananas and nutritious blends of green salads. The company markets its products under the Chiquita(R) and Fresh Express(R) premium brands and other related trademarks. Chiquita employs approximately 25,000 people operating in more than 70 countries worldwide, including Belgium, Columbia, Germany, Panama, Philippines, among others. * * * As reported in the Troubled Company Reporter on May 16, 2007, Moody's Investors Service Ratings affirmed these ratings on Chiquita Brands International Inc.: (i) corporate family rating at B3; (ii) probability of default rating at B3; (iii) US$250 million 7.5% senior unsecured notes due 2014 at Caa2(LGD5, 89%); and (iv) US$225 million 8.875% senior unsecured notes due 2015 at Caa2 (LGD5, 89%). Moody's changed the rating outlook for Chiquita Brands to negative from stable. Troubled Company Reporter reported on May 4, 2007, that Standard & Poor's Ratings Services placed its 'B' corporate credit and other ratings on Cincinnati, Ohio-based Chiquita Brands International Inc. on CreditWatch with negative implications, meaning that the ratings could be lowered or affirmed following the completion of their review. Total debt outstanding at the company was about US$1.3 billion as of March 31, 2007. TIMKEN CO: Enters Into Joint Venture with Xiangtan Electric ----------------------------------------------------------- The Timken Company has entered an agreement with Chinese heavy equipment manufacturer Xiangtan Electric Manufacturing Co. Ltd. to establish a joint venture in China to manufacture ultra- large-bore bearings for main rotor shafts of multi-megawatt wind turbines for the Chinese wind energy market. The joint venture is expected to contribute to China's goal of generating 30 million kilowatts of power from wind energy systems by 2020, providing a renewable energy source for China's rapidly expanding economy. The joint venture will build a new US$38 million facility in Xiangtan, located in China's Hunan province, to collaborate on the manufacture of main-shaft bearings for wind turbines. Timken and XEMC expect to employ more than 110 people in the joint venture. Construction of the new facility is scheduled to begin in 2008. The agreement was unveiled in Beijing at a ceremony attended by China's Ministry of Commerce Vice-Minister, Jiang Zeng Wei, and U.S. Secretary of Commerce Carlos M. Gutierrez, who is visiting China to encourage bilateral trade and investment that will strengthen the U.S. and Chinese economies. "Timken's partnership in China will provide $100 million in exports, while also helping China expand alternative energy, wind power, which helps the planet," said U.S. Secretary of Commerce Carlos M. Gutierrez. Timken power transmission and friction management solutions are particularly well suited to improving the performance, durability and reliability of wind turbine systems. By combining Timken's alloy steel expertise, power-transmission design and precision manufacturing capabilities with XEMC's leadership in heavy-equipment manufacturing in the Chinese market, the joint venture will be well-positioned to meet the needs of China's rapidly growing wind energy industry. Timken will have an ownership stake of 80 percent in the joint venture. "Timken has continued to invest heavily in China since entering this country in 1992, and the joint venture with XEMC is the latest example of our commitment to meet the needs of Chinese customers as they participate in one of the most important economic expansions the world has ever witnessed," said Roger Lindsay, Timken's senior vice president for Asia. "We believe our collaboration with XEMC will contribute to Chinese economic growth while also advancing the use of sustainable energy to the benefit of us all." In addition to Timken's participation in the wind energy industry, the company has developed a wide range of products that contribute to sustainability by improving the operating efficiency and power density of diverse types of machinery. About Timken Co. Headquartered in Canton, Ohio, The Timken Company (NYSE: TKR) -- http://www.timken.com/-- is a manufacturer of highly engineered bearings and alloy steels. It also provides related components and services such as bearing refurbishment for the aerospace, medical, industrial and railroad industries. The company has operations in Argentina, Australia, Belgium, Brazil, Canada, China, Czech Republic, England, France, Germany, Hungary, India, Italy, Japan, Korea, Mexico, Netherlands, Poland, Romania, Russia, Singapore, South America, Spain, Taiwan, Turkey, United States, and Venezuela and employs 27,000 employees. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 15, 2007, Moody's Investors Service affirmed Timken's Ba1 corporate family rating and the Ba1 rating on Timken's US$300 million Medium Term Notes, Series A. =========================== C Z E C H R E P U B L I C =========================== PETROF SPOL: Court Junks CZK2 Million Claim; Escapes Bankruptcy --------------------------------------------------------------- The High Court of Justice in Prague has dismissed US-based Geneva International Corporation's CZK2 million claims against Petrof, spol. s r.o., which resulted to the piano maker's escape from bankruptcy, reports Access Czech Republic Business Bulletin. As reported in the Troubled Company Reporter-Europe on June 26, 2007, a judge at the Regional Court in Hradec Kralove dismissed the bankruptcy petition filed by Geneva in relation to the CZK2 million claim, which Petrof executive and co-owner Zuzana Ceralova-Petrofova said have been filed in an unconventional method. Ms. Petrofova related that the claim Geneva tried to exact is based on complaints that are ungrounded. The paper notes that Geneva's contract on the exclusive sales of Petrof pianos and upright pianos in the United States ended in November 2007, after 22 years of business. Petrof currently controls piano sales in the U.S. through a subsidiary. The company also maintains important customers in Asia, Europe and countries of the former USSR. Meanwhile, Petrof believes that the worst is over for the company, the Financial Times says citing the Czech bulletin as its source. The piano company expects its profit to considerably increase in 2007 compared to CZK4.4 million in 2006, while its proceeds are estimated to decrease in 2007 compared to CZK517 million in 2006, FT relates. Petrof averted bankruptcy proceedings in 2004 due to bank debts, FT recalls. Headquartered in Hradec Kralove, Czech Republic, Petrof, spol. s r.o. -- http://www.petrof.cz/en/-- manufactures upright and grand pianos. Petrof has about 450 employees. It earned CZK4.4 million in 2006. =========== F R A N C E =========== COMPLETEL SAS: S&P Withdraws B- Corporate Credit Rating ------------------------------------------------------- Standard & Poor's Ratings Services withdrawn its 'B-' long-term corporate credit rating on French alternative telecommunications provider Completel SAS, at the company's request. At the same time, the 'B-' debt rating and recovery rating of '4' on the group's EUR80 million senior secured notes due 2012 were also withdrawn following the repayment of the notes. At the time of withdrawal, the group's long-term ratings were still on CreditWatch with developing implications, where they were placed on Sept. 3, 2007, following the sale of 21% of the capital of Completel Europe N.V., Completel's parent company, by its shareholders to Altice B2B France, and the latter's clear intention of taking full control of Completel in the short term. Altice B2B France launched a simplified public offer on Completel N.V.'s share capital on Oct. 23, 2007, which closed on Nov. 19, 2007. At that date, Altice B2B France owned about 99.9% of Completel's issued share capital and voting rights. Completel has no rated debt outstanding, following its buyback of all its outstanding EUR80 million senior notes due 2012, for a total amount of EUR91.1 million on Oct. 1, 2007. The senior notes' repayment was funded through a new EUR61 million senior bank facility at Completel's level, with the support of Altice B2B France, and about EUR30 million of Completel's cash. DELPHI CORP: Noteholders Balk at Revised Disclosure Statement ------------------------------------------------------------- Eight holders of Senior Notes in Delphi Corp. asks the United States Bankruptcy Court for the Southern District of New York to Reject the revised Disclosure Statement explaining the Debtors' Joint Chapter 11 Plan of Reorganization filed on Dec. 3, 2007. As reported in the Troubled Company Reporter on Dec. 6, 2007, the Debtors said it has reached agreements in principle with its Official Committee of Unsecured Creditors, its Official Committee of Equity Security Holders, General Motors Corp. and its Plan Investors on amendments to its Joint Plan of Reorganization, Global Settlement Agreement and Master Restructuring Agreement between Delphi and GM, and the Investment Agreement with Delphi's Plan Investors led by an affiliate of Appaloosa Management L.P. Delphi filed potential amendments to all four documents on Monday evening in the United States Bankruptcy Court for the Southern District of New York as revisions to the company's Disclosure Statement and appendices to the company's Disclosure Statement. Holders of Delphi Corp. Senior Notes: -- Caspian Capital Advisors, LLC; -- Castlerigg Master Investments Ltd.; -- CR Intrinsic Investors, LLC; -- Davidson Kempner Capital Management LLC; -- Elliott Associates, L.P.; -- Everest Capital Limited; -- Nomura Corporate Research & Asset Management, Inc.; -- Northeast Investors Trust; -- Sailfish Capital Partners, LLC; and -- Whitebox Advisors, LLC, maintain that the Disclosure Statement should not be approved because the Joint Plan of Reorganization: * classifies dissimilar claims in the same class in violation of Section 1122(a) of the Bankruptcy Code; * provides different treatment to claims classified together within a single class in violation of Section 1123(a)(4); * does not enforce the subordination agreement between the Senior Notes and TOPrS Claims by lumping the claims in one class in violation of Section 510(a); and * is premised on a substantive consolidation of the Debtors, solely for voting and distribution purposes, that the Debtors are unable to justify. "None of these issues have been addressed by the most recent amendment to the Disclosure Statement filed by the Debtors on Dec. 3, 2007," Allan S. Brilliant, Esq., at Goodwin Procter LLP, in New York, contends. Mr. Brilliant argues that although the Debtors have attempted to provide a more fulsome disclosure regarding several aspects of the Plan, the information in the current proposed Disclosure Statement remains wholly inadequate to enable creditors to make an informed judgment about the Plan as required by Section 1125. The Senior Noteholders maintain that the Disclosure Statement lacks adequate disclosure and information: -- on the implications of the value of the New Common Stock and the range of recoveries afforded to General Unsecured Creditors under the Plan; -- contained in the valuation analysis; -- on the economic interests and involvement of the Plan Investors and General Motors Corp. in "negotiating" the Plan; -- on the Plan's proposed treatment of intercreditor rights; -- on the potential impact to creditors of the Debtors' present lack of committed exit financing; -- regarding substantive consolidation; -- on the GM Claim; -- on releases under the Plan; and -- on the Multi-District Litigation Settlements between the Debtors and plaintiffs in the consolidated Securities Litigation. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and USUS$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. (Delphi Bankruptcy News, Issue No. 101; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Disclosure Statement is Inadequate, Wilmington Says ---------------------------------------------------------------- Wilmington Trust Company, the indenture trustee for US$2 billion in senior notes and debentures issued by Delphi Corp., asks the U.S. Bankruptcy Court for the Southern District of New York to reject the revised Disclosure Statement explaining the Debtors' Joint Chapter 11 Plan of Reorganization filed on Dec. 3, 2007.unless it is supplemented with adequate information. Wilmington Trust further asks the Court to direct the Debtors to reclassify the Senior Debt and the TOPrS Claims in, and to vote in, different classes. Wilmington Trust contends that the Disclosure Statement, as amended on Dec. 3, 2007, continues to lack "adequate information" within the meaning of Section 1125(a) of the Bankruptcy Code regarding issues that are critical to creditors' ability to make an intelligent and informed evaluation of the Joint Plan of Reorganization. The Debtors' statement that "the Plan continues to provide for full recoveries for unsecured creditors at Plan value" is misleading, Edward M. Fox, Esq., at Kirkpatrick & Lockhart Preston Gates Ellis LLP, in New York, asserts. The concept of "Plan value" is never clearly explained and could lead creditors to believe that they are being paid in full when, based on Rothschild's midpoint valuation, they will receive only an 89.2% recovery, he argues. In order to avoid any confusion on that issue and other issues, Wilmington Trust proposes, inter alia, that the Debtors add after the phrase "for unsecured creditors at Plan Value" this language: ", a negotiated enterprise value of US$13.3 billion ("Plan Value") for the Debtors, which is US$600 million higher than the US$12.7 billion midpoint valuation (the Midpoint Valuation") of the Debtors' enterprise value as determined by the Debtors' financial advisors, and which may not be equivalent to the Debtors' actual enterprise value. At the Midpoint Valuation, unsecured creditors will receive a recovery equal to 89.2% of their allowed claims. The Plan also provides . . . ." About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and USUS$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. (Delphi Bankruptcy News, Issue No. 101; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) DELPHI CORP: Revised Plan Disregards ERISA Plaintiffs' Concerns --------------------------------------------------------------- The lead plaintiffs in the consolidated securities class action entitled In re Delphi Corp. Securities Litigation, Master Case No. 05-md-1725 (GER) (E.D.Mich.) pending before the U.S. District Court for the Eastern District of Michigan, inform the Bankruptcy Court that the Dec. 3, 2007 versions of the Debtors' Disclosure Statement and Joint Plan of Reorganization still do not address all of their concerns. The lead plaintiffs, as well as the Employee Retirement Income Security Act plaintiffs in the Securities Litigation, had agreed to reduce the allowed amount of the Section 510(b) Note Claims and the Section 510(b) Equity Claims under the Plan from US$204 million to US$179 million in exchange for the Debtors' cooperation in the monetization of the Allowed Amount. The lead plaintiffs are the holders of Section 510(b) Note Claims while the ERISA plaintiffs are the holders of the Section 510(b) Equity Claims. The Lead Plaintiffs agreed that the claim reduction will be deemed a non-material modification to their Multi-District Litigation Settlement with the Debtors. The Debtors disclosed the Claim Reduction in their Dec. 3 Disclosure Statement. On Dec. 4, 2007, the District Court tentatively approved the modification of the parties' MDL Settlement subject to certain notice requirements intended to allow class members the opportunity to review and take a position on the proposed modification, Michael S. Etkin, Esq., at Lowenstein Sandler PC, in New York, informs the Bankruptcy Court. Nonetheless, the lead plaintiffs and the Debtors have yet to reach agreement on certain of the Lead Plaintiffs' proposed revisions to the Disclosure Statement and Plan involving third- party releases and conditions to the Plan's effectiveness, Mr. Etkin relates. The lead plaintiffs, he says, have provided the Debtors with suggested language that will resolve their dispute and discussions between the parties are continuing. The lead plaintiffs consist of Teachers' Retirement System of Oklahoma, Public Employees' Retirement System Of Mississippi, Raiffeisen Kapitalanlage-Gesellschaft m.b.H., and Stichting Pensioenfonds ABP. About Delphi Corp. Headquartered in Troy, Michigan, Delphi Corporation (OTC: DPHIQ) -- http://www.delphi.com/-- is the single supplier of vehicle electronics, transportation components, integrated systems and modules, and other electronic technology. The company's technology and products are present in more than 75 million vehicles on the road worldwide. Delphi has regional headquarters in Japan, Brazil and France. The company filed for chapter 11 protection on Oct. 8, 2005 (Bankr. S.D.N.Y. Lead Case No. 05-44481). John Wm. Butler Jr., Esq., John K. Lyons, Esq., and Ron E. Meisler, Esq., at Skadden, Arps, Slate, Meagher & Flom LLP, represent the Debtors in their restructuring efforts. Robert J. Rosenberg, Esq., Mitchell A. Seider, Esq., and Mark A. Broude, Esq., at Latham & Watkins LLP, represents the Official Committee of Unsecured Creditors. As of March 31, 2007, the Debtors' balance sheet showed US$11,446,000,000 in total assets and USUS$23,851,000,000 in total debts. The Debtors' exclusive plan-filing period expires on Dec. 31, 2007. On Sept. 6, 2007, the Debtors filed their Chapter 11 Plan of Reorganization and a Disclosure Statement explaining that Plan. (Delphi Bankruptcy News, Issue No. 101; Bankruptcy Creditors' Service Inc., http://bankrupt.com/newsstand/or 215/945-7000) GOODYEAR TIRE: Forms New Strategic Business Unit ------------------------------------------------ The Goodyear Tire & Rubber Company has disclosed the formation of a new strategic business unit, combining the former regions of European Union and Eastern Europe, Middle East and Africa. The new region of Europe, Middle East and Africa will be Goodyear's largest in terms of geography and second largest, after North America, in terms of annual sales revenue. Annual combined sales revenue for the two regions in 2006 was US$6.5 billion. The change becomes effective Feb. 1, 2008. "While the two former regions are different in terms of approach to the market there are also many similarities which are increasing, especially with the introduction of the new EU member states," Goodyear Chairman and Chief Executive Officer Robert J. Keegan, said. "This new organization is structured to accelerate growth and maximize earnings through simplicity, speed and an intense focus on our customers and markets." Mr. Keegan disclosed the appointment of Arthur de Bok, formerly president, EU, as the president of the new SBU. Mr. De Bok will report to Mr. Keegan. In addition he reported the appointment of Michel Rzonzef, formerly vice president sales and marketing, EEMEA, as president of the EEMEA countries. Mr. Rzonzef will report to Mr. de Bok. Mr. Keegan also announced the retirement, for family reasons, of Jarro Kaplan, president, EEMEA, after a career spanning more than 38 years. He praised the contribution of Mr. Kaplan who had joined the region in 2001 and had steered the business unit to outstanding increases in turnover and profit. "Jarro has been one of the most successful business leaders in our company's history," Mr. Keegan said. "We will miss his contributions and wish him all the best in the next era of his life." Mr. De Bok was appointed to his position in September 2005, having joined the company after a 13 year career with Procter & Gamble. Mr. De Bok has Bachelor's and Master's degrees in law from Erasmus University in the Netherlands. "Since becoming president of the EU organization, Arthur has led a successful market driven approach to our businesses and has simplified the organization," Mr. Keegan said. "His proven leadership capabilities will be invaluable as he leads this newly integrated business into the future." Mr. Rzonzef was appointed to his current position in December 2002. He received a degree in electro-mechanical engineering from Liege University in Belgium in 1987 and joined Goodyear Luxembourg shortly afterwards. After positions in the Goodyear Technical Center he held various roles in sales and marketing before becoming general manager in central Europe in 2001. "Michel has been one of the driving forces behind the success of the EEMEA region and has been responsible for the tremendous growth of the business," Mr. De Bok said. "His knowledge, people skills and experience will be invaluable as we integrate our businesses focusing intensely on our customers and our markets." "I have seen both Arthur and Michel develop rapidly over these past few years into outstanding businessmen and leaders," Mr. Keegan said. "I am confident the new opportunities for both will continue their personal and professional development ." Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear's operations are located in Argentina, Austria, Chile, Colombia, France, Italy, Guatemala, Jamaica, Peru, Russia, among others. Goodyear employs more than 80,000 people worldwide. * * * In June 2007, Standard & Poor's Ratings Services raised its ratings on Goodyear Tire & Rubber Co., including its corporate credit rating to 'BB-' from 'B+'. These ratings still apply as of Dec. 4, 2007. ============= G E R M A N Y ============= FPS SCHMALFELD: Claims Registration Period Ends Jan. 14, 2008 ------------------------------------------------------------- Creditors of FPS Schmalfeld Beratungsgesellschaft mbH have until Jan. 14, 2008, to register their claims with court-appointed insolvency manager Frank Raff. Creditors and other interested parties are encouraged to attend the meeting at 9:00 a.m. on Feb. 19, 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 Goeppingen Hall 0.24 Ground Floor Pfarrstrasse 25 73033 Goeppingen 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: Frank Raff Heilbronner Str. 86 70191 Stuttgart Germany Tel: 0711/259729-0 Fax: 0711/259729-999 The District Court of Goeppingen opened bankruptcy proceedings against FPS Schmalfeld Beratungsgesellschaft mbH on Nov. 26. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: FPS Schmalfeld Beratungsgesellschaft mbH Attn: Frank Schmalfeld, Manager Ortsstr. 6 73104 Boertlingen Germany GILDEMEISTER AG: Moody's Lifts Corporate Family Rating to Ba2 ------------------------------------------------------------- Moody's Investors Service upgraded the Corporate Family Rating of Gildemeister AG to Ba2 from Ba3. The rating for the senior subordinated notes was upgraded from B2 to B1 (LGD5, 87%). The outlook is stable. The last rating action was on March 1, 2007. "The upgrade reflects Gildemeister's improvements in operating performance and cash generation in line with the requirements for further positive rating pressure as outlined in Moody's latest Press Release published in March 2007; notably, RCF to Net Debt increased clearly above 20% and EBITA-Margin improved towards 8% in the last 12 months ended September 2007," says Christian Hendker, Lead Analyst at Moody's for Gildemeister. "In addition, the upgrade reflects the increasing likelihood that Gildemeister's business model will show more resilience through the cycle, as a consequence of a high innovation rate, cost benefits from supply chain management and an improved segmental diversification through the expansion of the company's profitable and more stable service segment." The stable outlook is based on Moody's expectation that Gildemeister will continue to show positive momentum in profitability and cash generation in 2008 and beyond, supported by its strong order book driven by a high product innovation rate and a favourable macroeconomic environment, despite intensifying competition from Asian competitors, and the current unfavourable US dollar exchange rate environment which may affect the order behaviour of Gildemeister's export oriented European customer base over the medium term. The ratings would likely experience downward pressure if evidence emerges that: (1) the EBIT-Margin (based on Moody's Standard Adjustments) improvements are reversing to a level towards 4.0%; with (2) an ensuing negative impact on operating cash flow (RCF to net debt below 20 %); and (3) negative free cash flows. The ratings would likely experience upward pressure over the medium term if the company is able to further increase the robustness of its business model against cyclical volatility, notably: (1) progress in improving geographical diversification on a profitable basis; (2) continuation of the innovation strategy which is essential to mitigate pricing pressure, (3) sustained improvements in operating profitability as a result of cost efficiency improvements and improved pricing power; (4) protection of its solid financial flexibility with positive free cash flows or substantial improvements in financial leverage. Gildemeister's Ba2 Corporate Family Rating reflects: (1) its market position as a leading manufacturer of metal- cutting machine tools, combined with its strong technological expertise, which has been underpinned by a constantly renewed product range; (2) the company's solid segmental diversification and product offering variety; (3) its broad customer diversification, (4) its solid order book, reflecting a high level of revenue visibility; and (5) satisfactory liquidity levels. However, Gildemeister's ratings remain constrained by: (1) the company's limited absolute scale and geographic concentration in Europe, which exposes its operating performance to the cyclicality of this region; (2) relatively weak profit performance in last industry downcycle; (3) high financial leverage; (4) the intense competitive environment, particularly in markets outside Europe where Gildemeister is still somewhat underrepresented, and (5) the pressure from rising raw material costs and unfavorable foreign exchange rate developments. The company has a solid liquidity cushion, amounting to around EUR45 million on balance-sheet cash and substantial availability under its EUR175 million revolving credit facility. The liquidity position results from active use of an EUR100 million ABS-program as well as rising payments on accounts. Upgrades: * Issuer: Gildemeister AG -- Probability of Default Rating, Upgraded to Ba2 from Ba3; -- Corporate Family Rating, Upgraded to Ba2 from Ba3; -- Senior Subordinated Regular Bond/Debenture, Upgraded to a range of 87 - LGD5 to B1 from a range of 88 - LGD5 to B2 Headquartered in Bielefeld, Germany, Gildemeister is a leading global manufacturer of metal-cutting machine tools (both milling machines and lathes). For the nine months ended Sept. 30, 2007, Gildemeister generated revenues of EUR1.075 billion and an after-tax profit of EUR27.2 million. INTER-TEX TEXTIL: Claims Registration Period Ends Jan. 14, 2008 --------------------------------------------------------------- Creditors of INTER-TEX Textil-Vertriebs-GmbH have until Jan. 14, 2008, to register their claims with court-appointed insolvency manager Peter Staroselski. Creditors and other interested parties are encouraged to attend the meeting on Jan. 25, 2008, at which time the insolvency manager will present his first report on the insolvency proceedings. The meeting of creditors will be held at: The District Court of Bonn Hall S 1.23 William-Strasse 21 53111 Bonn Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Peter Staroselski Godesberger Allee 125-127 53175 Bonn Germany Tel: 8100045 Fax: 8100020 The District Court of Bonn opened bankruptcy proceedings against INTER-TEX Textil-Vertriebs-GmbH on Nov. 16. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: INTER-TEX Textil-Vertriebs-GmbH Attn: Katharina Wohak, Manager Aennchenplatz 13 53173 Bonn Germany NATUR&GUT MARKETING: Claims Registration Ends Jan. 11, 2008 ----------------------------------------------------------- Creditors of Natur&Gut Marketing GmbH have until Jan. 11, 2008, to register their claims with court-appointed insolvency manager Andreas Ringstmeier. Creditors and other interested parties are encouraged to attend the meeting at 9:20 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 Cologne Meeting Hall 1240 12th Floor Luxemburger Strasse 101 50939 Cologne Germany The Court will also verify the claims set out in the insolvency manager's report during this meeting, while creditors may constitute a creditors' committee or opt to appoint a new insolvency manager. The insolvency manager can be reached at: Dr. Andreas Ringstmeier Magnusstr. 13 50672 Cologne Germany The District Court of Cologne opened bankruptcy proceedings against Natur&Gut Marketing GmbH on Nov. 14. Consequently, all pending proceedings against the company have been automatically stayed. The Debtor can be reached at: Natur&Gut Marketing GmbH Alfred-Nobel-Str. 9 50259 Pulheim Germany PROMISE I MOBILITY 2005-1: Fitch Holds BB+ Rating on Notes ---------------------------------------------------------- Fitch Ratings affirmed PROMISE I Mobility 2005-1 Plc's notes due in May 2014 as: -- EUR250,000 Class A+ (ISIN: DE000A0D0HT6): affirmed at 'AAA'; -- EUR27.8 million Class A (ISIN: DE000A0D0HU4): affirmed at 'AAA'; -- EUR8.3 million Series B (ISIN: DE000A0D0HV2): affirmed at 'AA'; -- EUR7.5 million Series C (ISIN: DE000A0D0HW0): affirmed at 'A'; -- EUR5.3 million Series D (ISIN: DE000A0D0HX8): affirmed at 'BBB'; and -- EUR5.3 million Series E (ISIN: DE000A0D0HY6): affirmed at 'BB+'. This transaction is a synthetic securitization of debt obligations originated by IKB Deutsche Industriebank Aktiengesellschaft (IKB, rated 'A+'/'F1'/Outlook Stable) to certain small- and medium-sized enterprise clients domiciled in Germany, but not restricted to carrying out business there. The affirmations reflect the transaction's stable performance to date. Cumulative defaults total 1.45% of the maximum portfolio notional balance, compared with 0.61% at last review in November 2006. None of the defaulted loans have completed their work-out process, and no losses have been realized in the reference portfolio to date. The proportion of lower-rated assets, measured by the bank's internal rating, has increased to 3.02% from 2.14% in November 2006. The notional balance of the portfolio currently stands at its maximum value of EUR750 million. The first loss threshold has remained at EUR21 million since closing. The deal is in its replenishment period until 2009. The debt obligations are denominated in GBP, USD, CHF and EUR and consist of drawn and undrawn facilities, loans and guarantees. Promise I Mobility 2005-1 plc is a special purpose vehicle incorporated with limited liability under the laws of the Republic of Ireland. At closing, IKB bought protection under a bank swap in respect of a EUR750 million reference portfolio from the German public agency Kreditanstalt fur Wiederaufbau (KfW), which in turn hedged its exposure by issuing certificates of indebtedness credit-linked to the performance of the underlying portfolio of debt obligations (Schuldscheine). The latter was purchased by the issuer using the notes proceeds, and by entering into a senior credit default swap with a senior swap provider. PROMISE I MOBILITY 2005-2: Fitch Holds Ratings on Series E Notes ---------------------------------------------------------------- Fitch Ratings affirmed PROMISE I Mobility 2005 2 Plc's notes due in February 2015, as: -- EUR500,000 class A+ (ISIN: DE000A0GJ9A9): affirmed at 'AAA'; -- EUR54.9 million class A (ISIN: DE000A0GJ9B7): affirmed at 'AAA'; -- EUR21.6 million series B (ISIN: DE000A0GJ9C5): affirmed at 'AA'; -- EUR22.5 million series C (ISIN: DE000A0GJ9D3): affirmed at 'A'; -- EUR21.6 million series D (ISIN: DE000A0GJ9E1): affirmed at 'BBB'; and -- EUR14.4 million series E (ISIN: DE000A0GJ9F8): affirmed at 'BB+'. This transaction is a synthetic securitisation of debt obligations originated by IKB Deutsche Industriebank Aktiengesellschaft (IKB, rated 'A+'/'F1'/Outlook Stable) to certain small- and medium-sized enterprise clients domiciled in Germany but not restricted to carrying out business there. The reference portfolio may also contain up to 10% of non-German loans provided that the debtor is EU-domiciled or Swiss. The debt obligations may be denominated in GBP, USD, CHF and EUR and consist of drawn and undrawn facilities, loans and guarantees. The affirmations reflect the transaction's stable performance to date. Cumulative defaults total 0.48% of the maximum portfolio notional balance, compared with 0.23% at last review in November 2006. Included within these defaults is the 0.11% of the portfolio, which has been worked out. This amount attained 100% recovery and therefore no losses have been realized in the reference portfolio to date. The proportion of lower-rated assets, measured by the bank's internal rating, has increased to 1.22% from 0.45% in November 2006. The notional balance of the portfolio currently stands at EUR1.8 billion. The first loss threshold has remained at EUR45 million since closing. The deal is in its replenishment period until 2009. At closing, IKB bought protection under a bank swap in respect of a EUR1,800 million reference portfolio from the German public agency Kreditanstalt fur Wiederaufbau (KfW). KfW in turn hedged its exposure by issuing certificates of indebtedness credit- linked to the performance of the underlying portfolio of debt obligations (Schuldscheine), which were purchased by the issuer using the notes proceeds, and by entering into a senior credit default swap with a senior swap provider. The first loss protection was issued directly by IKB. Promise-I Mobility 2005-2 Plc is a special purpose vehicle incorporated with limited liability under the laws of the Republic of Ireland. PROMISE I MOBILITY 2006: Fitch Holds BB+ Rating on Class E Notes ---------------------------------------------------------------- Fitch Ratings affirmed PROMISE I Mobility 2006 1 Plc's notes due in March 2017 as: -- EUR0.50 million Class A+ (ISIN: DE000A0LDYH4): 'AAA'; -- EUR67.2 million Class A (ISIN: DE000A0LDYJ0): 'AAA'; -- EUR21.6 million Class B (ISIN: DE000A0LDYK8): 'AA'; -- EUR36 million Class C (ISIN: DE000A0LDYL6): 'A'; -- EUR46.8 million Class D (ISIN: DE000A0LDYM4): 'BBB'; and -- EUR10.8 million Class E (ISIN: DE000A0LDYN2): 'BB+'. This transaction is a synthetic securitization of debt obligations originated by IKB Deutsche Industriebank Aktiengesellschaft (IKB, rated 'A+'/'F1'/Outlook Stable) to certain small- and medium-sized enterprise clients domiciled in Germany, but not restricted to carrying out business there. The reference portfolio may also contain non-German loans and the debt obligations may be denominated in GBP, USD, CHF, JPY and EUR, and consist of drawn and undrawn facilities, loans and guarantees. Non-EUR reference claims currently represent 6.06% of the pool. The affirmations reflect the transaction's stable performance to date. Cumulative defaults total 0.04% of the maximum portfolio notional balance. However, none of the defaulted loans have completed their work-out process and no losses have been realized in the reference portfolio to date. The proportion of lower-rated assets, measured by the bank's internal rating, has increased to 0.22% from 0% at close in December 2006. The notional balance of the portfolio currently stands at EUR2.4 billion. The first loss threshold has remained at EUR57.6 million since closing. The deal is in its replenishment period until 2010. The issuer is a German company with limited liability established under the Act on Companies with limited liability of the Federal Republic of Germany. IKB receives protection under a bank swap in respect of the reference portfolio from Kreditanstalt fur Wiederaufbau (KfW). KfW receives protection on its exposure from a credit default swap with a senior swap provider and its issuance of Schuldscheine purchased by the issuer using proceeds from the issue of credit-linked notes. ============= H U N G A R Y ============= AES CORP: Unit Selling Up To BRL200 Mln Non-Convertible Notes ------------------------------------------------------------- AES Corp.'s Brazilian power distributor AES Eletropaulo said in a filing with securities regulator Comissao de Valores Mobiliarios that it has began selling non-convertible debentures of up to BRL200 million. According to AES Eletropaulo's filing, the firm will use the proceeds from the sale in distribution operations. AES Eletropaulo told Business News Americas that "the 11-year notes will yield Brazil's interbank lending rate, plus 1.75% a year." Investors will get the proceeds every six months beginning May next year, BNamericas states. About AES Eletropaulo AES Eletropaulo is a distributor serving in Sao Paulo, Brazil. It has 4.6 million clients and serves an estimated 14 million people in its 4,526sq km concession area. In terms of revenues, it is the largest electricity distributor in Latin America. About AES Corp. AES Corp. -- http://www.aes.com/-- is a global power company. The company operates in South America, Europe, Africa, Asia and the Caribbean countries. Specifically, it also has operations in India. Generating 44,000 megawatts of electricity through 124 power facilities, the company delivers electricity through 15 distribution companies. The company's Latin America business group is comprised of generation plants and electric utilities in Argentina, Brazil, Chile, Colombia, Dominican Republic, El Salvador, Panama and Venezuela. As reported in the Troubled Company Reporter-Latin America on Oct. 12, 2007, Moody's Investors Service affirmed The AES Corporation's Corporate Family Rating at B1 and the senior unsecured rating assigned to its new senior unsecured notes offering at B1 following its upsizing to US$2 billion from US$500 million. LGD assessments are subject to change pending the final capital structure. As reported on Oct. 12, 2007, Fitch Ratings assigned a 'BB/RR1' rating to AES Corporation's US$500 million issue of senior unsecured notes due 2017. AES' long-term Issuer Default Rating is rated 'B+' by Fitch. Fitch said the rating outlook is stable. ============= I R E L A N D ============= COMMSCOPE INC: Reaches Agreement with DOJ to Complete Andrew Buy ---------------------------------------------------------------- CommScope, Inc., has reached an agreement with the United States Department of Justice that will allow it to complete its proposed acquisition of Andrew Corporation. Under the terms of the agreement with the DOJ, which was filed December 6, in the U.S. District Court for the District of Columbia, the companies will be required to divest certain non- core assets, including Andrew's non-controlling minority interest in Andes Industries, Inc., a supplier of last-mile products for broadband communications networks, and other related assets. The carrying value of the assets to be divested was less than US$25 million as of Sept. 30, 2007. It is expected that the divestitures will be completed after CommScope completes the acquisition of Andrew Corp. This agreement is subject to the Court's approval. In addition to the DOJ, the proposed Andrew transaction was cleared by the European Commission as well as other required regulatory authorities. The Andrew stockholders will vote on the transaction on Dec. 10, 2007. The company expects to close the transaction by year-end, subject to the satisfaction of other customary conditions. About CommScope Based in Hickory, North Carolina, CommScope Inc. (NYSE: CTV) -- http://www.commscope.com/-- is a world leader in infrastructure solutions for communication networks. Through its SYSTIMAX(R) Solutions(TM) and Uniprise(R) Solutions brands, CommScope is the global leader in structured cabling systems for business enterprise applications. It is also the world's largest manufacturer of coaxial cable for Hybrid Fiber Coaxial applications. CommScope has facilities in Brazil, Australia, China and Ireland. * * * As reported in the Troubled Company Reporter on Oct. 19, 2007, Standard & Poor's Ratings Services affirmed its ratings on CommScope Inc. and Westchester, Illinois-based Andrew Corp. and removed them from CreditWatch, where they were placed on June 27, 2007, with negative implications. S&P also affirmed the 'BB-' corporate credit and 'B' subordinated debt ratings for both companies. The ratings on Andrew will be withdrawn following its acquisition and debt refinancing. S&P said the outlook is stable. PREPS 2005-2: Fitch Downgrades EUR41.5 Mln Class B1 Notes to B -------------------------------------------------------------- Fitch Ratings downgraded PREPS 2005-2 Plc notes due in December 2014, as: -- EUR210,968,333 Class A1 floating-rate notes (ISIN: XS0236849005): downgraded to 'AA' from 'AAA'; -- EUR51,526,828 Class A2 fixed-rate notes (ISIN: XS0236849427): downgraded to 'AA' from 'AAA'; -- EUR41,500,000 Class B1 floating-rate notes (ISIN: XS0236849930): downgraded to 'B' (Distressed Rating 'DR2') from 'A'; and -- EUR12,500,000 Class B2 fixed-rate notes (ISIN: XS0236850862): downgraded to 'B' (Distressed Rating 'DR2') from 'A'. Fitch has reviewed the transaction's performance following the initiation of insolvency proceedings of a portfolio company, representing 3.3% (EUR12 million) of the initial portfolio balance, on Oct. 10, 2007. This is the third insolvency occurrence in this transaction since it close in December 2005. The Principal Deficiency Ledger (PDL) debit balance has partially been paid down at the last payment date and, with an addition of the third insolvency, is expected to amortize to zero from excess spread within eight payment periods, provided no further defaults occur within this time frame. The downgrades reflect the defaults to date, as well as a substantial deterioration in the portfolio credit quality to an equivalent weighted average portfolio rating of 'BB-'/'B+' from 'BBB-'/'BB+' at close. There are three names rated 'C' and below, one of which has missed one payment and is in a critical condition. This name represents 3.6% (EUR13 million) of the initial portfolio balance. Fitch deems the available credit support, together with the strong PDL excess spread trapping mechanism, to be sufficient to support the above ratings for the Class A notes. However, the Class B notes do not have sufficient credit enhancement to support an investment-grade rating given the defaults to date and the current portfolio credit quality. The Distressed ratings assigned to the Class B notes, 'DR2', reflect Fitch's view of superior recovery prospects in the event of default (historically 70-90%). This transaction is a pan-European cash securitization of subordinated debt instruments to small- and medium-sized enterprises. The portfolio credit quality was assessed by an updated mapping approach of Bayerische Hypo- und Vereinsbank AG (HVB) internal credit scoring system based on HVB's historical default and rating migration data; and by using Fitch's Italian Probability of Default model. PREPS 2005-2 plc is a limited liability company incorporated as a special purpose vehicle in Ireland. The proceeds of the notes were used to purchase an initial portfolio of subordinated debt instruments to 62 small- and medium-sized companies in Germany, Austria, Switzerland, Italy and Belgium. The portfolio companies were selected by Capital Efficiency Group, the investment services provider. The portfolio remains static during the life of the transaction with a bullet maturity of all subordinated loans matching the scheduled maturity of the notes. The scheduled maturity of all Classes of notes is December 2012 and the legal maturity is December 2014 PROMISE I MOBILITY 2005-2: Fitch Holds Ratings on Series E Notes ---------------------------------------------------------------- Fitch Ratings affirmed PROMISE I Mobility 2005 2 Plc's notes due in February 2015, as: -- EUR500,000 class A+ (ISIN: DE000A0GJ9A9): affirmed at 'AAA'; -- EUR54.9 million class A (ISIN: DE000A0GJ9B7): affirmed at 'AAA'; -- EUR21.6 million series B (ISIN: DE000A0GJ9C5): affirmed at 'AA'; -- EUR22.5 million series C (ISIN: DE000A0GJ9D3): affirmed at 'A'; -- EUR21.6 million series D (ISIN: DE000A0GJ9E1): affirmed at 'BBB'; and -- EUR14.4 million series E (ISIN: DE000A0GJ9F8): affirmed at 'BB+'. This transaction is a synthetic securitisation of debt obligations originated by IKB Deutsche Industriebank Aktiengesellschaft (IKB, rated 'A+'/'F1'/Outlook Stable) to certain small- and medium-sized enterprise clients domiciled in Germany but not restricted to carrying out business there. The reference portfolio may also contain up to 10% of non-German loans provided that the debtor is EU-domiciled or Swiss. The debt obligations may be denominated in GBP, USD, CHF and EUR and consist of drawn and undrawn facilities, loans and guarantees. The affirmations reflect the transaction's stable performance to date. Cumulative defaults total 0.48% of the maximum portfolio notional balance, compared with 0.23% at last review in November 2006. Included within these defaults is the 0.11% of the portfolio, which has been worked out. This amount attained 100% recovery and therefore no losses have been realized in the reference portfolio to date. The proportion of lower-rated assets, measured by the bank's internal rating, has increased to 1.22% from 0.45% in November 2006. The notional balance of the portfolio currently stands at EUR1.8 billion. The first loss threshold has remained at EUR45 million since closing. The deal is in its replenishment period until 2009. At closing, IKB bought protection under a bank swap in respect of a EUR1,800 million reference portfolio from the German public agency Kreditanstalt fur Wiederaufbau (KfW). KfW in turn hedged its exposure by issuing certificates of indebtedness credit- linked to the performance of the underlying portfolio of debt obligations (Schuldscheine), which were purchased by the issuer using the notes proceeds, and by entering into a senior credit default swap with a senior swap provider. The first loss protection was issued directly by IKB. Promise-I Mobility 2005-2 Plc is a special purpose vehicle incorporated with limited liability under the laws of the Republic of Ireland. ========= I T A L Y ========= DANA CORP: Personal Injury Committee Objects to Plan ---------------------------------------------------- The Ad Hoc Committee of Asbestos Personal Injury Claimants disputes Dana Corp.'s contention that the asbestos personal injury claimants are not impaired by the Third Amended Joint Plan of Reorganization. According to Douglas T. Tabachnik, at Law Offices of Douglas T. Tabachnik, in Freehold, N.J., the Debtors have failed to demonstrate that the asbestos personal injury claimants are not impaired. He elaborates that under the Plan, the Debtors can engage in Court-sanctioned Restructuring Transactions that could readily leave holders of asbestos personal injury claims with little or no meaningful remedy for injuries. A Restructuring Transaction can extinguish a Reorganized Debtor's obligation to pay asbestos injury claims and the successor Acquiring Entity would have no obligation to assume those liabilities, Mr. Tabachnik points out. Accordingly, the Ah Hoc Committee of Asbestos Personal Injury Claimants asserts that the Plan should not be confirmed. 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. GOODYEAR TIRE: Noteholders Tender US$346 Mln Convertible Notes -------------------------------------------------------------- The Goodyear Tire & Rubber Company disclosed the results of a offer to exchange its outstanding 4% Convertible Senior Notes due June 15, 2034, for a cash payment and shares of its common stock. Noteholders tendered approximately US$346 million aggregate principal amount of convertible notes in exchange for approximately 28.7 million shares of common stock plus a total cash payment of approximately US$23 million. Approximately 99% of the principal amount of the outstanding convertible notes was tendered in the exchange offer. A total of approximately US$4 million principal amount of convertible notes remains outstanding. "This successful exchange offer eliminates approximately US$346 million in debt from our balance sheet and reduces our annual interest expense by approximately US$14 million," W. Mark Schmitz, executive vice president and chief financial officer, said. "This exchange is another step in our debt reduction process and helps us move closer to our next stage metrics." The exchange offer, which expired at 5 p.m. New York City time on Dec. 5, 2007, allowed note holders to receive the same number of shares of Goodyear's common stock as they would have received upon conversion of the convertible notes in accordance with their current terms, plus a cash payment, including accrued and unpaid interest. The exchange offer was made pursuant to a prospectus, dated Nov. 30, 2007, contained in a registration statement filed by Goodyear with the Securities and Exchange Commission, which was declared effective on Nov. 20, 2007. Copies of the prospectus contained in the registration statement may be obtained from the exchange agent: Wells Fargo Bank, N.A. Corporate Trust Operations Sixth and Marquette, MAC N0303-121 Minneapolis, Minn. 55479 Telephone (800) 344-5128 Headquartered in Akron, Ohio, The Goodyear Tire & Rubber Company (NYSE: GT) -- http://www.goodyear.com/-- is the world's largest tire company. The company manufactures tires, engineered rubber products and chemicals in more than 90 facilities in 28 countries. Goodyear's operations are located in Argentina, Austria, Chile, Colombia, France, Italy, Guatemala, Jamaica, Peru, Russia, among others. Goodyear employs more than 80,000 people worldwide. * * * In June 2007, Standard & Poor's Ratings Services raised its ratings on Goodyear Tire & Rubber Co., including its corporate credit rating to 'BB-' from 'B+'. These ratings still apply as of Dec. 4, 2007. IMAX CORP: Inks Deal with AMC to Install 100 IMAX(R) Systems ------------------------------------------------------------ IMAX Corporation and AMC Entertainment Inc. enter a joint- venture agreement to install 100 IMAX(R) digital projection systems at AMC locations in 33 major U.S. markets. The theatres will feature IMAX's digital projection system which is being developed for the IMAX MPX(R) theatre design. The agreement is projected to double IMAX's current commercial theatre footprint in North America and accelerates the momentum behind IMAX and AMC's transition to digital projection technology. "We are committed to delivering a premium entertainment experience by offering a menu of entertainment alternatives inside our facilities," Peter C. Brown, chairman and chief executive officer, AMC Entertainment Inc., said. "Our expanded relationship with IMAX and the deployment of its state-of-the- art, next-generation digital projection systems is a key part of our strategy of continuing to broaden and enhance the AMC experience. It also builds on the successful partnership we have had with IMAX since June of 2005 and complements our overall digital plan." The rollout of the first 50 IMAX digital projection systems will begin in July 2008 at premier AMC theatre locations in 24 of the 33 selected markets, with an additional 25 scheduled for rollout in 2009 and 25 more in 2010. The IMAX theatres are slated to be installed in many of AMC's top-performing locations in the United States, including: AMC South Barrington 30, Chicago; AMC Mesquite 30, Dallas; AMC Gulf Pointe 30, Houston; AMC Century City 15, Los Angeles; AMC Empire 25, New York; AMC Neshaminy 24, Philadelphia; AMC Eastridge 15, San Francisco; AMC Hoffman Center 22, Washington D.C. "The agreement cements a partnership between two great brands," IMAX co-chairmen and co-CEOs Richard L. Gelfond and Bradley J. Wechsler, said. "Partnering with AMC in a theatre deal of this size and scope is a transformational moment for our company from both a financial and strategic perspective. We couldn't be more pleased that The IMAX Experience(R) will be more accessible to consumers in nearly every major market in the United States. "AMC is unique in the number of successful, stadium-seat megaplexes in locations that could accommodate this large number of new IMAX(R) theatres," they continued. "Further, AMC's confidence in our digital projection system is a terrific endorsement. We look forward to rolling out our ground-breaking new technology and delivering the premium experience that moviegoers have come to expect from the IMAX(R) brand." In October of this year, IMAX disclosed that it had moved up the launch date of its digital projection system to mid-2008 from its anticipated timeframe of the end of 2008 to mid-2009. The anticipated IMAX digital projection system will further enhance The IMAX Experience and help to drive profitability for studios, exhibitors and IMAX theatres by virtually eliminating the need for film prints, increasing program flexibility and ultimately increasing the number of movies shown on IMAX screens. IMAX has already secured important parts of its film slate for 2008, 2009 and 2010 through agreements with major Hollywood studios including: The Spiderwick Chronicles (February 2008), Shine A Light (April 2008), Kung Fu Panda (June 2008), The Dark Knight (July 2008), Deep Sea-quel 3D (working title, February 2009), Monsters vs. Aliens 3D (March 2009), How to Train Your Dragon 3D (November 2009), Hubble 3D (working title, February 2010) and Shrek Goes Forth 3D (May 2010). "An agreement of this magnitude significantly jumpstarts our joint venture initiative, which we expect will generate increased recurring revenues for IMAX going forward," added Messrs. Gelfond and Wechsler. "AMC's decision to enter into this agreement will accelerate the growth of our theatre network in North America and should help power the digital transition underway at our company, which we believe will help drive our operating and financial performance for years to come." AMC's initial 50 IMAX digital locations will include: MARKET AMC THEATRE ------ ----------- Atlanta AMC Barrett Commons 24 AMC Southlake Pavilion 24 Baltimore AMC Columbia Mall 14 AMC Loews White Marsh 16 Boston AMC Loews Boston Common 19 Charlotte AMC Concord Mills 24 Chicago AMC South Barrington 30 AMC Loews Crestwood 18 Cincinnati AMC Newport on the Levee 20 Dallas AMC Mesquite 30 Denver AMC Highlands Ranch 24 AMC Orchards 12 AMC Westminister Promenade 24 Houston AMC First Colony 24 AMC Gulf Pointe 30 Jacksonville AMC Orange Park 24 AMC Regency Square 24 Kansas City AMC BarryWoods 24 AMC Independence Commons 20 Los Angeles AMC Burbank 16 AMC Century City 15 AMC Del Amo 18 AMC Promenade 16 AMC Puente Hills 20 AMC Santa Anita 16 Miami AMC Aventura 24 AMC Sunset Place 24 New Orleans AMC Elmwood Place 20 New York AMC Loews 34Th Street 14 AMC Empire 25 AMC Loews Kips Bay 15 AMC Rockaway 16 AMC Loews Stony Brook 17 AMC Loews Monmouth Mall 15 Norfolk AMC Lynnhaven 18 Orlando AMC Altamonte Mall 18 Philadelphia AMC Loews Cherry Hill 24 AMC Hamilton 24 AMC Neshaminy 24 Pittsburg AMC Loews Waterfront 22 San Diego AMC Palm Promenade 24 San Francisco AMC Bay Street 16 AMC Eastridge 15 AMC Mercado 20 Seattle AMC Loews Alderwood 16 AMC Southcenter 16 Tampa AMC Veterans Expressway 24 Washington D.C. AMC Hoffman Center 22 AMC Potomac Mills 18 AMC Tysons Corner 16 About AMC Entertainment Inc. Headquartered in Kansas City, Missouri, AMC Entertainment Inc. -- http://www.amctheatres.com/-- is an innovative theatrical exhibition company. Established in 1920, the company serves more than 230 million guests annually through interests in 358 theatres with 5,128 screens in six countries. About IMAX Corporation Based in New York City and Toronto, Canada, IMAX Corporation (NASDAQ:IMAX) -- http://www.imax.com/-- is an entertainment technology company, with emphasis on film and digital imaging technologies including 3D, post-production and digital projection. IMAX is a fully-integrated, out-of-home entertainment enterprise with activities ranging from the design, leasing, marketing, maintenance, and operation of IMAX(R) theatre systems to film development, production, post- production and distribution of large-format films. IMAX also designs and manufactures cameras, projectors and consistently commits significant funding to ongoing research and development. IMAX has locations in Guatemala, India, Italy, among others. * * * Moody's Investor Services placed IMAX Corporation's long term corporate family and probability of default ratings at 'Caa1' in July 2007. The ratings still hold to date with a positive outlook. =================== K A Z A K H S T A N =================== AKTOBE AGRO: Proof of Claim Deadline Slated for Jan. 4, 2008 ------------------------------------------------------------ LLP Aktobe Agro 2005 has declared insolvency. Creditors have until Jan. 4, 2008, to submit written proofs of claims to: LLP Aktobe Agro 2005 Moldagulov ave. 24b-6 Aktobe Aktube Kazakhstan ARSH-LINE LLP: Creditors Must File Claims Jan. 4, 2008 ------------------------------------------------------ LLP Arsh-Line has declared insolvency. Creditors have until Jan. 4, 2008, to submit written proofs of claims to: LLP Arsh-Line Jambyl Str. 25 Almaty Kazakhstan Tel: 8 (3272) 73-87-21 DERBES LLP: Claims Filing Period Ends Jan. 4, 2008 -------------------------------------------------- The Tax Committee of Almaty has ordered the compulsory liquidation of LLP Derbes (RNN 090500029294). Creditors have until Jan. 4, 2008, to submit written proofs of claims to: The Tax Committee of Almaty Room 208 Jangusurov Str. 113a Taldykorgan Almaty Kazakhstan Tel: 8 (3282) 24-19-77 GREEN MARKET: Creditors' Claims Due on Jan. 4, 2008 --------------------------------------------------- LLP Green Market has declared insolvency. Creditors have until Jan. 4, 2008, to submit written proofs of claims to: LLP Green Market Office 414 Makatayev Str. 47 Almaty Kazakhstan KERNAL SERVICES: Claims Registration Ends Jan. 4, 2008 ------------------------------------------------------ LLP Kernal Services has declared insolvency. Creditors have until Jan. 4, 2008, to submit written proofs of claims to: LLP Kernal Services Micro District 4, 35-6 Aksai West Kazakhstan Kazakhstan KROKUS STROY: Proof of Claim Deadline Slated for Jan. 4, 2008 ------------------------------------------------------------- Construction Company Krokus Stroy has declared insolvency. Creditors have until Jan. 4, 2008, to submit written proofs of claims to: Construction Company Krokus Stroy Gvardeiskaya Str. 9/1 Uralsk West Kazakhstan Kazakhstan Tel: 8 (3112) 50-79-52 ODAK-SOUZ LLP: Creditors Must File Claims Jan. 4, 2008 ------------------------------------------------------ The Tax Committee of Almaty region has ordered the compulsory liquidation of LLP Odak-Souz (RNN 531400000492). Creditors have until Jan. 4, 2008, to submit written proofs of claims to: The Tax Committee of Almaty Room 208 Jangusurov Str. 113a Taldykorgan Almaty Kazakhstan Tel: 8 (3282) 24-19-77 PCD LEASING: Claims Filing Period Ends Jan. 4, 2008 --------------------------------------------------- LLP PCD Leasing has declared insolvency. Creditors have until Jan. 4, 2008, to submit written proofs of claims to: LLP PCD Leasing Dostyk ave. 38 Almaty Kazakhstan UK PROMSPETSCOMPLECT: Claims Registration Ends Jan. 4, 2008 ----------------------------------------------------------- The Specialized Inter-Regional Economic Court of East Kazakhstan has declared LLP UK Promspetscomplect insolvent. Creditors have until Jan. 4, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of East Kazakhstan Shugayev Str. 157b-43 Semey East Kazakhstan Kazakhstan Tel: 8 777 213 83-80 UYUT LLP: Creditors' Claims Due on Jan. 4, 2008 ----------------------------------------------- The Specialized Inter-Regional Economic Court of Mangistau region LLP Uyut insolvent. Creditors have until Jan. 4, 2008, to submit written proofs of claims to: The Specialized Inter-Regional Economic Court of Mangistau Micro District 28, 25-12 Aktau Mangistau Kazakhstan Tel: 8 (7292) 40-03-12 =================== K Y R G Y Z S T A N =================== AUTO-STOP LLC: Creditors Must File Claims by January 11, 2007 ------------------------------------------------------------- LLC Centre Auto-Stop has declared insolvency. Creditors have until Jan. 11, 2008, to submit written proofs of claim to: LLC Centre Auto-Stop Jybek Jolu Str. 120-1 Bishkek Kyrgyzstan ===================== N E T H E R L A N D S ===================== NEPTUNO CLO: Moody's Rates EUR27.3 Mln Class E Sr. Notes at Ba3 --------------------------------------------------------------- Moody's Investors Service assigned these definitive ratings to the Notes issued by Neptuno CLO III B.V., a special purpose company established under the laws of the Netherlands. The ratings are: -- Aaa to the EUR243,950,000 Class A-1 Senior Secured Floating Rate Notes due 2024; -- Aaa to the EUR200,000,000 Class A-2 Senior Secured Delayed Draw Floating Rate Notes due 2024; -- Aa2 to the EUR61,750,000 Class B Senior Secured Floating Rate Notes due 2024; -- A2 to the EUR27,300,000 Class C Senior Secured Deferrable Floating Rate Notes due 2024; -- Baa3 to the EUR27,950,000 Class D Senior Secured Deferrable Floating Rate Notes due 2024; and -- Ba3 to the EUR27,300,000 Class E Senior Secured Deferrable Floating Rate Notes due 2024. The ratings address the expected loss posed to investors by the legal final maturity in 2024. This transaction is a high yield collateralized loan obligation related to portfolio comprised of Senior Secured Loans, Second Lien Loans, Mezzanine Obligations, High Yield Bonds and Collateralised Loan Obligations. The portfolio of debt obligations will be actively managed and the investment managers will be able to buy or sell debt obligations on behalf of the Issuer. Any addition or removal of debt obligations will be subject to a number of portfolio criteria. Caja de Ahorros de Piedad de Madrid will act as lead investment manager for the transaction. EuroDekania Management Limited, will act as the junior investment manager. =========== R U S S I A =========== BALTINVESTBANK: Moody's Assigns B3/NP/E+/Baa2.ru Global Ratings --------------------------------------------------------------- Moody's Investors Service assigned these global scale ratings to Baltinvestbank: -- bank financial strength rating of E+; and -- long-term and short-term local and foreign currency deposit ratings of B3/Not Prime. Concurrently, Moody's Interfax Rating Agency assigned a long- term national scale rating of Baa2.ru to Baltinvestbank. Moscow-based Moody's Interfax is majority-owned by Moody's, a leading global rating agency. The outlook on the global scale ratings is stable, while the national scale rating carries no specific outlook. According to Moody's and Moody's Interfax, the B3/Not Prime/E+ global scale ratings reflect Baltinvestbank's global default and loss expectation, while the Baa2.ru national scale rating reflects the standing of the bank's credit quality relative to that of its domestic peers. According to Moody's, Baltinvestbank's ratings reflect the bank's established position in the corporate banking segment in St. Petersburg, together with its growing branch network, developing SME and retail franchises and relatively low market risk appetite. However, the ratings are constrained by the bank's still limited market franchise with a geographical concentration in the St. Petersburg region as well as its high level of single-name credit risk and industry concentration in the construction sector, low economic capitalisation, its weak financial indicators and a relatively high concentration of its funding base. In Moody's view, Baltinvestbank would be unlikely to receive support from either its owners or the Russian government in case of distress. Hence, the B3 long-term foreign currency deposit rating assigned to the bank does not incorporate any probability of external support. Moody's notes that an upgrade of Baltinvestbank's deposit ratings might be possible in the event of a significant decrease in credit risk concentration, growth in profitability and evidence of successfully managed growth in the retail and SME segments according to the bank's strategy as well as an improvement in geographical diversification. A downgrade of Baltinvestbank's current ratings is a remote likelihood. However, in Moody's opinion, any mismanagement of the bank's growth strategy or a significant deterioration in its asset quality could potentially have negative rating implications. Domiciled in St. Petersburg, Baltinvestbank offers credit and deposit products in the corporate and retail banking segments, including mortgages, car loans and deposit products for individuals. The bank conducts its business through 15 offices in St. Petersburg and 15 offices in several other Russian regions, including one branch in Moscow. The majority of the bank's operations are concentrated in St. Petersburg, while providing banking services to corporate clients remains the core business activity of the bank at the current moment. As at year end 2006, Baltinvestbank reported IFRS-based net income of US$1.7 million compared to US$3 million in 2005. It also reported total assets of US$419 million and shareholders' equity of US$54 million. The loan portfolio rose by 62.8% to US$235 million from US$132 million as at year end 2005. BURYATGOSPLEM OJSC: Asset Sale Slated for Dec. 31 ------------------------------------------------- D. D. Badmazhapova, the competitive proceedings manager of OJSC Buryatgosplem, will open a public auction for the company's properties at 10:00 a.m. on Dec. 31. The company has set a RUR3.7 million starting price for the assets on auction. Interested participants have until Dec. 25 to deposit an amount equivalent to RUR185,000 and to submit their bidding documents. The Debtor can be reached at: OJSC Buryatgosplem Tverskaya Str. 30 Ulan-Ude Buryatia Russia Information related to the auction can be obtained from: D. D. Badmazhapova Office 14 Ranzhurova Str. 4 Ulan-Ude 670000 Buryatia Russia Tel: (3012) 21-79-71 COMSTAR UNITED: Acquires Digital Telephone for RUR4.1 Billion ------------------------------------------------------------- Comstar United TeleSystems completed the acquisition of 100% of the share capital of Digital Telephone Networks South (DTN) for a total cash consideration of RUR4.1 billion. The favorable geographical position of DTN in the Rostov-on-Don regional business centre and the wider Rostov region provides strong development potential for Comstar in the Southern Federal District. According to Comstar's estimate, the fixed-line services, internet connection and data transmission market in the Rostov region is expected to grow by over 23% in cash equivalent in 2007. The combined efforts and market experience of the existing Southern branch of Comstar and the acquired DTN will assist Compstar in creating synergies, which will provide subscribers with a full range of integrated telecommunications services, reduce combined operating expenses, optimize business processes and create economies of scale. "Digital Telephone Networks is the largest independent alternative operator in Russia with higher profitability than the industry average. The acquisition of DTN is in line with our regional growth strategy of consolidating local market leaders. It will have a positive impact on the financial results of Comstar-UTS Group and help us to strengthen our leading position in the highly attractive alternative telecommunication market in the Southern region of Russia," Sergey Pridantsev, president and CEO of Comstar UTS, commented. DTN owns a digital telephone network which operates under a zonal license in Rostov-on-Don and the Rostov region. The company also operates in Krasnodar through its telecom subsidiary Comtel, which was acquired in July 2007. DTN provides a full range of telecommunication services, including digital telephony, leased channels and Internet access, to residential and corporate subscribers. DTN reported revenues of US$41.8 million increasing by 56% year- on-year, OIBDA of US$22.3 million with an OIBDA margin of 53%, and net income of US$14.3 million for the nine months ended Sep. 30, 2007. Revenue growth was primarily driven by an over 80% year on year increase in revenues from both broadband Internet services and zonal traffic, as well as the acquisition of Comtel. Headquartered in Moscow, Russia, Comstar-UTS -- 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 Moody's long-term corporate family rating of Ba3 with positive outlook. Standard & Poor's gave the company BB- on long-term foreign issuer credit rating and BB- on long-term local issuer credit rating. The outlook is positive. HEATING NETWORK: Bankruptcy Hearing Slated for March 20, 2008 ------------------------------------------------------------- The Arbitration Court of Astrakhan' will convene at 2:00 p.m. on March 20, 2008, to hear the bankruptcy supervision procedure on Heating Network Municipal Unitary Enterprise. The case is docketed under Case No. A06-1463/2007-11. The Interim Manager is: V. I. Kornilyev P.O. Box 370 414000 Astrakhan' Russia The Debtor can be reached at: Heating Network Municipal Unitary Enterprise Soviet Militia Str. 38 Astrakhan' Russia IZHEVSKIJ CAR-REPAIR: Creditors Must File Claims by Jan. 1, 2008 ---------------------------------------------------------------- Creditors of Izhevskij Car-Repair Plant LLC have until Jan. 1, 2008, to submit proofs of claim to: A. R. Farrakhov Interim Manager P.O. Box 1184 426072 Izhevsk Russia The Arbitration Court of Udmurt commenced bankruptcy supervision procedure on the company on Nov. 9. The case is docketed under Case No. A71-7439/2007 G29. The Debtor can be reached at: Izhevskij Car-Repair Plant LLC Vladivostokskaya 1a Izhevsk Udmurt Russia KOTEL'NICHSKAYA KNITTING: Asset Sale Slated for Jan. 1, 2008 ------------------------------------------------------------ The competitive proceedings manager of OJSC Kotel'nichskaya Knitting Factory will open a public auction for the company's properties at noon on Jan. 1, 2008 at: The Competitive Proceedings Manager Schorsa Str. 26-A Kirov Russia The starting prices for the assets on auction are: -- Lot 1: RUR2,124,000; -- Lot 2: RUR505,800. The Debtor can be reached at: OJSC Kotel'nichskaya Knitting Factory Komsomol'skaya str., 7 Kotel'nich Kirov Russia Information related to the auction can be obtained at: The Competitive Proceedings Manager Schorsa Str. 26-A Kirov Russia Tel/fax: 56-02-45 SHAKHTA KAPITAL'NAYA: Creditors Must File Claims by Jan. 1, 2008 ---------------------------------------------------------------- Creditors of OJSC Shakhta Kapital'naya have until Jan. 1, 2008, to submit proofs of claim to: F. A. Poddubny Competitive Proceedings Manager P.O. Box 128 Osinniki 15 652815 Kemerovo Russia The Arbitration Court of Kemerovo commenced competitive proceedings against the company after finding it insolvent on Oct. 31. The case is docketed under Case No. A27-7718/2007-4. The Court is located at: The Arbitration Court of Kemerovo Krasnaya Str. 8 Kemerovo Russia The Debtor can be reached at: OJSC Shakhta Kapital'naya Shakhtovaya Str. 3 Osinniki 652810 Kemerovo Russia SEROVBREAD OJSC: Under External Management Bankruptcy Procedure --------------------------------------------------------------- The Arbitration Court of Sverdlovsk commenced external management bankruptcy procedure on OJSC SerovBread. The case is docketed under Case No. A60-6319/07-C11. The External Insolvency Manager is: T. A. Shulyakova P.O. Box 518 620000 Ekaterinburg Russia The Court is located at: The Arbitration Court of Sverdlovsk Lenina Pr. 34 620151 Ekaterinburg Russia The Debtor can be reached at: OJSC SerovBread Puteitsev 22A Serov &n